Marketing of Medicinal Plants

In Pakistan

By Mr Allah Dad Khan03329221298

allahdad52@gmail.com

Presentation Bifurcation

1. Situation of Marketing of MAP,s In World 2. Seven P,s of Marketing3. Problems of Marketing 4. Recommendation for Marketing MAP,s5. Global Marketing Opportunities 6. Question Answer Session

Situation of Marketing of Medicinal and Aromatic plants in

World

Situation of Marketing of Medicinal and Aromatic plants in World

100% use of Traditional Medicines in UAE100% use of Traditional Medicines in China70 % use of Traditional Medicines in India 70 %use of Traditional Medicines in Pakistan 70 % use of Traditional Medicines in Africa China and India are the largest market for Medicinal plants in

World

WORLD IN 21st CENTURY1. 100% increase in World’s population (12 billion by the year

2035).2. 50% reduction in forests cover.3. Life expectancy close to 100 years in most parts of the

world.4. World resources of fossil fuel will be totally consumed.

Marketing of Medicinal plant in World

• More than 80 per cent of the world’s population use traditional plant-based medicine for primary health care, according to the World Health Organization. And demand is growing world-wide for medicinal plants, as well as herbs and aromatic plants. Global trade in these plants is estimated at US$60 billion annually and is expected to grow by 10 to 15 per cent per year.

Products to be Marketed

1.Herbal Medicinal products • A. Convential • B. Traditional • 2. Food Supplement • 3.Food Stuffs• 3. Cosmetics

Price

Pricing

1. A product/service is only worth what customers are prepared to pay for it.

2. The price also needs to be competitive, but this does not necessarily mean the cheapest.

3. Price positions you in the marketplace; the more you charge the more value or quality your customers will expect for their money.

4. Just as importantly, your pricing must also cover your costs and provide a Profit.

5. It is the only element of the marketing mix that generates revenue — everything else represents a cost.

Product

ProductDon’t develop a product or service first and then hope to find a market for it afterwards.

Research the market before you launch your product or service so that it meets the needs of customers, put a system in place to regularly check that your product is what the market wants.

If you are already in business and have a product, then you should have a means to develop and extend your product to meet those ever changing needs

PromotionPromotion is the aspect of marketing that most people recognise. It is the way your company communicates what it does and what it can offer customers. It includes activities such as branding, advertising, direct mail, your website, PR, corporate identity, sales management, special offers and exhibitions.

Promotion must gain attention, be appealing, tell a consistent message, communicate the benefits and not just the features of the product/service and, above all else, give the customer a reason to choose your product rather than someone else’s.

One aspect of promotion that is often missed is that of communicating effectively with your own staff so that they can be knowledgeable and share expertise with their customers.

Place

Place

Where you sell your product or offer your service must be appropriate and convenient for the customer.

Your product needs to be available in sufficient quantity to satisfy customer demands. At the same time you should keep storage, inventory and distribution costs to an acceptable level.

A place also means a way of displaying your product/service to customers. This could be a shop window, but can also be mail order, a website or your office or workshop.

It will depend on the nature of the product or service, but should always be designed to make your offering appropriate and attractive to the customer.

People

PEOPLE

Every time your employees come into contact with a customer an impression is made. Make sure it’s a good impression by having properly trained, well-motivated staff with a good attitude; the reputation of your company rests in their hands.

Providing after sales support and advice is one way you can add value to what you offer, giving your business an important edge over competitors who don’t.

In many sectors customers do not separate the product service from the staff member who provides it, making this a key element of the marketing mix.

PROCESS The process of giving a service is crucial to customer satisfaction.

Issues such as waiting times, the information given to customers and the helpfulness of staff are all vital to keep customers happy.

Remember, customers are not interested in the details of how your business runs, but in getting a good service.

It will run most smoothly for the customer if there are processes in place that the staff understand

Physical Environment This means for a customer choosing to use a service there can be an element of risk. Any uncertainty can be reduced by helping potential customers to ‘see’ what they are buying. Case studies and testimonials can provide evidence that your company keeps its promises.

Facilities such as a clean, tidy and well-decorated reception area can also help to reassure.

The physical evidence should be appropriate to the expectations of the customer.

28

The Marketing Concept

Consumers

Marketing Research Marketing Segmentation

Product Price Place Promotion

Marketing of Medicinal Herbs1. Most medicinal plants are harvested from wild, As the trade has become

market oriented and inter national , the growing number of wild crafters is out stripping natural population.

2. Some of these are also grown particularly by small farmers to diversify their cropping system and to earn some additional income for their sustenance

3. The organic farming is a basic philosophy for production of medicinal herbs.

4. Organic farming methods are based on nature’s principles of production.

5. Organically produced medicinal herbs are believed to be living in harmony with the natural system by cooperating rather than competing

Threats to Medicinal Plants Marketing

1. Land erosion and Deforestation 2. Over and improper and poor harvesting and collection 3. Overgrazing and urbanization 4. Conversion of forest land into agriculture Land 5. Land fragmentation 6. Lack of access to markets and irregular supply.7. Limited Knowledge of plant properties.8. Intellectual property right and WTO ( Turmeric)9. Lack of awareness10. Incorrect botanical species 11. Low price for farmers/high prices for buyers.

Identification of Markets

The process of identifying different markets would help the farmers to focus on which types of herbs to be grown and how marketing should be made.

largest global markets in World

The largest global markets for medicinal plants exist in China, Germany, France, Japan, Italy, UK and USA. In the United States, the trade of medicinal plants is observed with 10% increase annually and more

people are attracting towards herbal medicines.

Marketing Channels of Medicinal Plants

• The main driver for the cultivation of medicinal plants could be located in two component , namely pull and push effects.

• In pull effect , are the factors that attract farmers to cultivate medicinal plants rather than traditional crops including

• 1.Attractive Price , fixed market channel , price assurance by agents .

• 2.Monopoly of the group of producers

1.Uncertainity of net income.2.Well established market channel There are two marketing routes that

operate in field 1.Gather /Cultivator -----= Pharmacy 2.Gather/Cultivator ----=Trader ----=

Pharmacy

Whereas Push effects are dominated

International Marketing

Export Promotion Bureau may guide about some of the plants that are currently demanded . The publication of data about medicinal herbs in this regard will be of great value to different stake holders

The opportunities on the supply side of the indigenous medicine market include

1. Availability of scarce medicinal plants in remote locations,· availability of medicinal plants on commercial farmlands,2. Availability of plant supply from changing land-use,3. Availability of medicinal plants on managed communal lands,4. Availability of a wide range of cultivation, processing, and Marketing expertise in other sectors,5. Access to international examples of medicine production for traditional markets,6. Large demand for new agricultural opportunities on Commercial farms, subsistence farms, and redistributed farms,

The opportunities on the supply side of the indigenous medicine market include contd

7. Availability of progressive farmers with access to resources,8.Robust nature of indigenous medicinal plants which require few agricultural inputs,9.wide range of sites for product distribution, ranging from the farm gate to urban processing factories,10.bility to supply specific species at times of the year when they are usually not available,11. A large number of plant gatherers with appropriate knowledge that could promote the cultivation of plants for the market,12. Documentation and establishment of accepted guidelines for use and dosages of medicinal plants, and13. Several organizations have experience in indigenous medicine markets and in the cultivation of medicinal plant species in farming and nursery systems.

Features of Marketing

1. Market Trends2. Price information3. Market news4. Botanical product specifications5. Meetings and trade shows6. Directory of global herb trade associations7. Special features (e.g. company profiles,

regulations)

Problems in Marketing of

MAP,s

Problems in Marketing of Medicinal Plants S.No Problem Solution 1. Poor agricultural practices GAP specific to area and climate

2. Poor harvesting (indiscriminate) and post-harvest treatment practices

Proper harvesting and practices to minimize Post Harvest losses in storage

3. Lack of research on development of high-yielding varieties, domestication

Enhancement of R &D projects

4 Inefficient processing techniques leading to low yields and poor quality products , Insufficient data on the peak and lean raw drug collection periods

Introduction of new processing techniques and preparation of data for products both in yield and use.

5 Lack of Poor propagation methods Promotion of new propagation methods

Problems in Marketing of Medicinal Plants contd

S.No Problem Solution 6 Poor quality control procedures Standardization of Products 7. High energy losses during

processing Low consuming energy machineries

8. Lack of current good manufacturing practices

Promotion of Good Manufacturing Practices ,

9 Lack of R & D on product and process development - Difficulties in marketing

Strengthening of rural development infrastructure .

10 Lack of local market for primary processed products

Provision of Local Market to farmers and linkage of collectors with market

11 Lack of trained personnel and equipment

Human Resource Development through Training to different stake holders in collection, cultivation, processing and marketing of medicines.

Problems in Marketing of Medicinal Plants contd S.No Problem Solution

12 Lack of facilities to fabricate equipment locally

Provision of facilities

13 Lack of access to latest Technological Provision of access to Latest Technology

14 The lack of traceability of the path of the

raw drug back to it source

Paving a Path as desired by Farming Community

15 Lack of information on the market. Establishment of MIS

16 Absence of comparative studies on 7 PS

Initiation of studies in this respect.

17 Ineffective regulatory body. legislation improving the status of herbal medicine industry

Problems in Marketing of Medicinal Plants contd S.No Problem Solution

18 Lack of awareness Creation awareness .

19 No Training to collector The plant collectors are needed to be trained in proper harvesting methods.

20 Lack of correct identification of medicinal plants

Proper identification is vital .

21 The price and quality of medicinal plants in the market is not uniform.

Necessary measures should be taken in this regard for the uniformity

22 No proper Selection of Plants Proper selection of plants

Problems in Marketing of Medicinal Plants contd S.No Problem Solution

23 Collectors, processors and traders face problems in finding favorable markets due to price factors, quality and quantity considerations.

Training

24 Financial and logistic constraints Financial help

25 Inadequate knowledge

Problems in Marketing of Medicinal Plants contd S.No Problem Solution

26 Difficult to No proper recognition access appropriate markets and market information.of environmentally and commercially sound MPs.

Allowed Access

27 Lack of standardization and consistency in quality for international marketing , regulatory requirement

Proper standardization and regulation

28 Astringent phyto-sanitary regulations such as requirement of microbiological test, pesticides and heavy metal test by international markets

Legislation

Recommendation for Marketing

MAP,s

Suggestion and recommendations for Marketing

1.Recommendation of Medicinal Plants in different Ecolological zones in Country with special reference to KPK .one village one product . 2. Creation of awareness about medicinal plants both wild and cultivated Through mass media .in production and marketing 3. Marketing of medicinal plants in local and national as well as in international markets through exposure by different stake holders .4. Local Community should be trained regarding methods of collection and drying, and sustainable harvesting Demonstration of the cultivation packages and R & D in marketing .5. Plant collectors should be encouraged and educated. 6. Seed bank for the arrangement of MP seed , plants . Through farmers bodies.

.

Suggestion and recommendations for Marketing contd

7. Organic products and value addition through capacity building , the role of women to be included in activities.  review of local knowledge and harvest practices

8. A holistic management action plan.9. Investments are needed for the development of appropriate conversation, cultivation harvesting strategies10. At the same time, there must be immediate efforts to ensure the conservation of Diverse biological resources11. Design and implementation of management scheme.12. Research to investigate the sustainability of production system.13. Eco-labelling and other social and economic incentives to strengthen market

credibility and competitiveness of biodiversity-friendly products need to be promoted14. On the issue of intellectual property rights it needs to be elaborated how the country,

the local user or other entity can be adequately compensated for use of the resource by outsiders.

Suggestion and recommendations in Marketing contd

15. The gaps between the producers/collectors and traders or buyers need to be minimized .16. A holistic management action plan .17.A ll-our efforts should be made to adopt a package of best practices encompassing conservation, cultivation, quality control and standardization 18. Research should identify genotypes with high potential for commercial purposes, and then conduct trials for the selection of high yielding varieties.

Global Marketing Opportunities:

AREAS FOR IMPROVEMENT

1. Promote farmer cooperation at village 2. Collectors should be organized into associations and clusters 3 . Reduce the number of intermediaries involved in the distribution and marketing4. Improvements are needed in the areas of post collection handling, value addition

and product presentation

AREAS FOR IMPROVEMENT contd

4.Research and development on the chemical composition and the effect of poor practices on the active ingredients of the selected species.

5. Country authorities to develop effective strategies to support improved cultivation, quality controls systems, provision of high quality planting materials, and the encouragement of investments in new technologies.

6. Undertake a more in-depth global overview of the demand and supply of medicinal plants.

7.Developing countries should aim to cultivate their resources in a sustainable manner and enter markets at the early stages of the value chain

8. Identify products which would be most amenable to sustainable commercial development .

AREAS FOR IMPROVEMENT contd

9. Value-addition through processing,

10. Enterprise development and promotion of the complete market chain.

11. The organic nature of the produce should be explored and capitalized on for export marketing.

Question Answer