Target product profile development based on market segment status

Agnes Gitonga, Jason Donovan, Dean Muungani, Peter Coaldrake

Seed product market segments (SPMSs) represent groups of farmers who share common seed product requirements. Currently, there are more than 600 SPMSs for all crops served by CGIAR breeding programs in the SPMS Database. The external-facing version of the database is hosted on the Global Market Intelligence Platform (GloMIP). We systematically identified the segments based on eight criteria that cover where the crop is grown, how it is grown, and what the crop is used for (see Market Intelligence Brief #1 for details). The market segments and their associated impact/opportunity descriptors are presented in the SPMS Database. Market segments and associated acreages are also found in the CGIAR Breeding Portal. Over time, the database is updated and refined in response to market intelligence research and engagement with product design teams and breeding programs.

Identifying a proposed market segment provides the basis for discussions between market intelligence researchers and crop breeding teams in CGIAR and national agricultural research and extension systems (NARES) on the seed product required. It is essential that these discussions cover the essential traits in a product and the required minimum acceptable score for all essential traits in a product for the proposed market segment. A proposed SPMS must require a unique product. This means, for example, when comparing the target product profile (TPP) of a proposed market segment with existing TPPs for market segments in the region, the proposed market segments is not valid if it shows a difference in the essential traits required and in the minimum score for each essential trait. A TPP is the blueprint for the design of the ideal seed product that will meet the farmer, processor, and consumer requirements of the segment. New products developed for a market segment must meet the required minimum score for all essential traits in the TPP. Proposed market segments are identified and advanced by product design teams (PDTs). PDTs also propose breeding efforts for relevant market segments that are not being served.

Market Intelligence Work Package 1 (WP1)and ReFOCUS review proposed market segments for completeness and if one is incomplete, it is sent back to PDTs to update any missing information and to answer any questions that were identified during the review process. Only proposed market segments with a complete set of information are considered for TPP development. However, not all proposed market segments require a TPP. Prioritization is based on the impact opportunity of the market segment, impact opportunity being crop-specific underdevelopment indicators related to agriculture and food.

A proposed market segment can be current or become current at some point in the future (future market segments). Current market segments are market segments that exist now and for which products are available. A future market segment is a segment where demand exists or is projected to occur, but no products are available.

For current and future SPMSs, a fully developed TPP is needed if there is a CG breeding effort, or a proposed CG breeding effort aligned with the market segment. A TPP is not required for a market segment that does not have an ongoing or proposed CG breeding effort. The diagram describing the need for TPP development gives guidance on market segments that require a TPP and those that do not require a TPP.

Need for TPP development diagram

In 2022, Market Intelligence, building off work by the Excellence in Breeding (EiB) platform, presented a protocol for the TPP development process. The process involves identification of traits, defining the scale per trait and the minimum score per trait. The traits fall into two categories: essential traits' or nice-to-have traits. Essential traits must be in all new products at the required threshold to meet/exceed grower, processor, and consumer requirements in the market segment. Essential traits are classified as either "improve traits," which are intentionally improved through the breeding process, or "maintain traits," which are held at their current level during the breeding process. Nice-to-have traits are not required to be in every new product to meet/exceed requirements for the market segment.

Considering the prioritization criteria in the diagram, we identify three groups of market segments, based on their TPP status, that require work either to refine or develop TPPs.

• Current market segments with an ongoing or proposed CG breeding effort with TPP that requires refinement
• Current market segments with an ongoing or proposed CG breeding effort without a TPP
• Future market segments with an ongoing or proposed CG breeding effort without a TPP