Purchase Intention and Price Perception Study, Maize 2017 · regions, farm size groups –based on agreement with Monsanto) Optional: Personal presentation of the results Responsibilities

Purchase Intention and Price Perception

Study, Maize 2017

Monsanto

January, 20th, 2017

Proposal prepared for:

Mikhail Yevtushenko

Jia Liu

Background and aim of the study

Study objectives

Study design

Deliverables and Responsibilities

Timing and Budget

Annex

Agenda

Monsanto / Purchase Intention and Price Perception Study, Maize 2017 / 2016 / CONFIDENTIAL 3

Background and Aim of the Study

General Information

Monsanto is planning to conduct 2 waves market research study to investigate maize growers intentions for 2017 in France,

Italy, Germany (optional), Hungary, Romania, Ukraine and Spain.

Based on planting intentions of maize growers in each targeted country, Monsanto would like to investigate maize area

change in 2017 compared to 2016 harvest season.

Furthermore, Monsanto would like to capture maize hybrids farm level price awareness in each targeted country and

understand price perception compared to competition.

Additionally, Monsanto would like to capture intentions of maize hybrids purchase in season 2017 in terms of planned

hybrids, planting area and purchase price.

Kleffmann Group (KG) is pleased to submit the following proposal to Monsanto!

Background and Aim of the Study


Country overviewBackground and Aim of the Study


FranceItaly

Romania

Germany

Hungary

Ukraine

Spain


Study Objectives

Study Objectives


Investigating maize growers

intentions for 2017 season in terms

of:

Planting area plans compared

to previous season

Hybrids price awareness and

perception

Planned hybrids usage area

for next season

2 times (in 2 waves) during sales

season

Study objectives

To estimate maize area change

compared to 2016 season

To capture farm level prices and

price perception of key players

on the market

To estimate potential planting

area on hybrid level for next

season

Research Goals

Preparation of the sales strategy for

next season

Business action to be taken

From study objectives to business actions


Study Design

OverviewStudy Design


CountriesFrance, Italy, Germany (optional),

Hungary, Romania, Ukraine and Spain

Time FrameI wave: November 2016 - January 2017

II wave: January – March 2017

MethodCATI (Computer Assisted Telephone

Interviews)

Target group

Farmers planning to grow maize in

2017, decision makers for hybrids

choice

Sample size N = 1550 I wave (500 II wave)

Interview

length20 min

ROFR

DEUA

HUITA

* defined in agreement with Monsanto

ES

Details about topics and analysesStudy Design


Topics which will be covered

Reasons and influences for maize

area change in 2017Maize area

dynamics

2016 vs 2017

Maize hybrids

price

awareness and

perception

Maize hybrids

purchase

intentions for

2017

Time of decision for planting area in

case decision is not yet made

Maize hybrids spontaneous

awareness

Maize area planted in 2016 vs planned

maize area for 2017

Farm structure (grown crops in

2016 harvest season)

Farm level price awareness of

maize hybrids

Considered maize hybrids for

2017 (relevant set of 5 most

important hybrids in terms of

planned area)

Optimal maize hybrids price (PSM

analyses) or value for money

breeders evaluation*

Reasons for maize hybrids

consideration in 2017

* defined in agreement with Monsanto

Maize area estimation for 2017

based on bootstrap analyses done

for investigated sample

Detailes about target group, sample and resultsStudy Design


Farmers, growers of maize in 2016 harvest season in all targeted countries Decision makers for maize hybrids used on their farms

Representative for each country in terms of targeted maize growers (large, medium, small maize

growers segments) – specifications depending on the country are presented on the next slide

Representative for each country in terms of regional distribution of targeted maize growers within

most important regions for maize – specifications depending on the country are presented on the

next slide

Total sample

Regional split (defined in agreement with Monsanto)

Maize area size groups (small, medium, large maize growers, defined in agreement with Monsanto)

Demographic criteria

Number of interviewed farmers in each country

Maize area 2017 of investigated farmers (for usage section)

Hybrids and breeders level

End user level price analysis, based on farmer answers

Target group

definition:

Sample

structure:

Results for each

country available

for:

Results for each

country available

based on:

Country Specifics

In general, for the purposes of this study, total market is recommended to be reflected by sample of this study, especially due to estimation of maize area for next season. Nevertheless, in some countries, maize growers structure in terms of number of maize growers and maize area they are representing is

not allowing the study to be time and cost efficient in the same time if we would cover 1% of total maize growers. Therefore, the following facts were taken into consideration when creating the best approach for this study, in terms of covering with the sample at least 1% of total country maize area:

In France, due to maize grain and silage differences, we are recommending separate samples, like in the previous PIPP study. In order to cover 1% of grain we would need to interview 500 maize grain growers and for 1% of silage maize area we would need to interview 720 maize silage growers. Less important regions will be excluded.

In Italy, 5 most important regions would be covered, which are representing 85% of market in terms of total maize area

In Germany, in order to cover 1% of maize farms we would need more than 1000 interviews. Due to differences between grain and silage maize size structure and regional distribution, samples for maize grain and silage will be separated.

In Hungary, due to high number of small (below 10ha) maize growers we are recommending to exclude them in order to reach 1% of total maize area.

In Romania, due to high number of small (below 10ha) maize growers, who are usually not using certified seeds, we are recommending to exclude them in order to reach 1% of total maize area.

In Ukraine, where 91% of corn area (by growers >=100ha of maize) is cultivated by 40% of farms, we are suggesting cut off to be 30ha of maize area in most important regions with approx. 80% of total maize area.

Study Design


Country France Italy Spain Germany Hungary Romania Ukraine

Optimal Sample Size300 (grain

maize)250 250 250 250 250 250

Target Group Definition*

(Optimal farm size cut off)> = 2 ha > = 1 ha > = 1 ha >= 2 ha >= 10 ha >= 10 ha >=30 ha

Maize area coverage (% of

total maize area covered

by suggested sample)

0.2-0.4% 1% 0.5% 0.5% 1-2% 1% 1-2%


Deliverables and Responsibilities

Development of the study design and appointment of a well experienced

project manager

Development of questionnaire in English in collaboration with Monsanto

Translation of questionnaire into local languages

Organization of the study incl. address selection, recruitment and briefing

of interviewers

Fieldwork incl. supervision, quality control and incentives

Regular fieldwork updates via e-mail or telephone conference

Programming of the CATI mask and coding of all answers

Statistical data analysis

Country-specific reports in ppt. format in English incl. executive summary,

highlighted key insights and recommendations in Kleffmann CI (optional)

Country-specific detailed reports in xls. format in English incl. detailed

results in pivot tables for different segments within the sample (e.g.

regions, farm size groups – based on agreement with Monsanto)

Optional: Personal presentation of the results

Responsibilities


Development of questionnaire in English in collaboration with

Kleffmann Group

Confirmation of the questionnaire in English and their local

language versions

Delivery of additional material/information which is needed to

complete the survey

Deliverables

15Monsanto / Purchase Intention and Price Perception Study, Maize 2017 / 2016 / CONFIDENTIAL

Confidentiality

All information collected will be submitted to global and anonymous treatment. All professionals involved in the work are prohibited from modifying, publishing or using the

information of this study for objectives different from the expected one. The name of the contracting party will not be made available to our interviewers or to the

interviewees. All study material will be archived for a period of 12 months and will be available for any examination during that time. During the realization of projects

KLEFFMANN is guided by the rules of ESOMAR (European Society for Opinion and Market Research) being its member.

Optional: Personal or presentation of the results by telephone conference

Study concept and design, kick-off meeting, address material, drawing of samples, fieldwork

regular fieldwork updates via e-mail or telephone conference, analysis and reporting

Country-specific reports (in ppt. format with key findings - optional and in xls. format with detailed

pivot tables) in English incl. executive summary, highlighted key insights and recommendations in

Kleffmann CI


Timing and Budget

Timing:


Please notice: The suggested time frame is adapted to Monsanto`s briefing. It is to be defined more precisely with Monsanto after the confirmation of the study. If Monsanto can not comply the

timeline for its part, Kleffmann Group is compelled to adapt the time schedule. Kleffmann Group is not liable for any delays due to instable political situations or changes in infrastructure in all

surveyed countries.

N=1800 for all countries, LOI (Length of Interview) = 20 minutes

*: The suggested time frame is given for all the countries, still, due to specifics of each country, timing for the fieldwork can be different meaning that analyses will be conducted and reports will

delivered as soon as ready for specific country.

Phases/Dates by Number of weeks

Study offer KG End of October 2016

Discussion of proposalKG

Monsanto

When suitable for MonsantoConfirmation of the study Monsanto

Kick-off meetingKG

Monsanto

Development of master questionnaireKG

Monsanto1 week

Approval of master questionnaire Monsanto 1 week

Translation of questionnaire in local languages KG 1 week

Approval of local language versions Monsanto 1 week

Recruiting/Mask programming/Preparation of fieldwork KG 1.5 – 2 weeks

Fieldwork KG4 – 5 weeks – depending on the sample

size

Data analysis KG 2.5 weeks

Delivery of country-specific reports (xls. with pivot tables and ppt - optional) in English incl. executive

summary, highlighted key insights and recommendations in Kleffmann CIKG 1.5 week

Option: Personal presentation of the results KG TBD

Budget I wave: 6 countries


*The given prices are only valid in combination (all 6 countries need to be confirmed). In case that Monsanto decides to exclude countries, prices need to be

recalculated as the additional overall costs are calculated for all countries.

All prices are without VAT. 50% of the payment will be due after confirmation of the study. 50% of the payment will be due immediately after the results of the survey have

been delivered. The payment target is 30 days after invoicing, unless otherwise stated in the invoice. Additional requirements such as different interpretations etc. will be

calculated by the daily rate of 960 €. The prices can vary within changes of the above mentioned study-design.

Optional: Personal presentation of the results: 1.300 €. Not included are travel costs (flight ticket/train ticket 2nd class or rather 0,50 €/km when travelling by car),

accommodation and expenses.

* Price for Italy depends on requested timing for the fieldwork and reporting


** Discount applied only in case second wave of the study will be conducted by Kleffmann Group as well

Country France (grain) Italy Spain Hungary Romania Ukraine

Sample size n = 300 n = 250 n = 250 n = 250 n = 250 n = 250

Country priceincl. translation of questionnaire, recruiting,

conducting interviews and incentives

13.800 € 12.100 € 12.000 € 8.100 € 7.800 € 9.100 €

Country price per interview 46 € 48,4 € 48 € 32,4 € 31,2 € 36,4 €

Management and coordination costsincl. development of questionnaire, organization

of the study, briefing of interviewers and quality

control

9.400 €

Analysis and reporting (xls. reports with

pivot tables for each country)7.600 €

Overall costs 79.900 €

Overall costs (2% discount included)** 78.302 €

Costs for Power Point reports (prepared for each country): 8.400 €.

Budget II wave: 2 countries


*The given prices are only valid in combination (all 2 countries need to be confirmed). In case that Monsanto decides to exclude countries, prices need to be

recalculated as the additional overall costs are calculated for all countries.

All prices are without VAT. 50% of the payment will be due after confirmation of the study. 50% of the payment will be due immediately after the results of the survey have

been delivered. The payment target is 30 days after invoicing, unless otherwise stated in the invoice. Additional requirements such as different interpretations etc. will be

calculated by the daily rate of 960 €. The prices can vary within changes of the above mentioned study-design.

Optional: Personal presentation of the results: 1.300 €. Not included are travel costs (flight ticket/train ticket 2nd class or rather 0,50 €/km when travelling by car),

accommodation and expenses.

* Price for Italy depends on requested timing for the fieldwork and reporting


Country Romania Hungary

Sample size n = 250 n = 250

Country priceincl. translation of questionnaire, recruiting,

conducting interviews and incentives

6.700 € 6.800 €

Country price per interview 26.8 € 27.2 €

Management and coordination costsincl. development of questionnaire, organization

of the study, briefing of interviewers and quality

control

6.400 €

Analysis and reporting (xls. reports with

pivot tables for each country)4.600 €

Overall costs 24.500 €

Overall costs (5% discount included)** 23.275 €

Costs for Power Point reports (prepared for each country): 1.900 €.

** Discount applied only in case OSR Segmentation study will be conducted by Kleffmann Group as well

Our institute is a member of the BVM (Berufsverband Deutscher Marktforscher = Professional Association of German Market

Researchers) as well as ADM (Arbeitskreis Deutscher Markt- und Sozialforschungsinstitute = Professional Association of German

Market Researchers) and ESOMAR (European Society for Opinion and Market Research) and therefore, it is subject to severe

quality and data protection regulations.

An acceptance of order will be necessary if Monsanto decides to work with Kleffmann Group. This offer is exclusively written for

Monsanto. It is valid for 60 days from today on.

Kleffmann Group reserves the right to modify the costs in case of an amendment of the contents of the survey or services.

Lüdinghausen, January 20th, 2017

Confidentiality and Acceptance of Order


Annex


Output Examples

Compared to 2015 maize area, based on investigated farmersMaize Area Change in 2016, Reasons and Influences – Output Example

22

Results based on investigated farmers, N=XXX, unit: %

19%

64%

18%

Decrease area in 2016

No change

Increase area in 2016

On what area do you plan to sow maize next season?

Why? What are the reasons for higher/lower maize area in 2015/2016?

What can still change your decision about the area of maize to be sown next year, season 2015/2016?

29%26%

11%9%

6%6%

3%3%3%3%

6%

Crop rotationAcreage size changes (in general)

Acreage size expansionFeeding purposes

For reservesExpansion of animal keeping

Regulations/lawsGood yield/better yield

Bad yieldPrice/economy

DK/NA

24%18%

13%

11%

8%

8%

5%

5%

3%8%

Crop rotation

Acreage size changes (in general)

Acreage size reduction

Regulations/laws

Price/economy

Abolition/Reduction of animal keeping

Good yield/better yield

For reserves

Feeding purposes

DK/NA

41%7%

5%5%

3%3%2%1%2%

33%

Nothing/everything is planned/stays like thisWeather conditions

Changes of area (bigger or smaller acreage)Winterkill/cold winter

Political changes/laws/regulationsMarket situation

Losses/UpheavalAvailability of maize varieties

OthersDK/NA

Maize area Change Influences

Results based on investigated farmers who plan

to decrease maize area in 2017, N=XXX, unit: %

Results based on investigated farmers who plan

to increase maize area in 2017, N=XXX, unit: %

Monsanto / Purchase Intention and Price Perception Study, Maize 2017 / 2016 / CONFIDENTIAL

Based on investigated maize areaMaize Area Dynamics 2016-2017 – Output Example

23

All results based on investigated maize area 2016=XXX ha, 2017=XXX ha; unit: estimation for total country maize area

2,558,000 ha2,568,252 ha

+ 0,40%

Maize area 2016 Estimated maize area 2017

Estimated - change %

(95%)

Estimation for total

country area (ha) for

maize in 2016

(low 95% bound)

-1.6% 2,526,482

Estimated + change %

(95%)

Estimation for total

country area (ha) for

maize in 2016

(high 95% bound)

+2.0% 2,619,919


Based on investigated farmersSpontaneous Awareness of Maize Hybrids – by Breeders – Output Example

24

All results based on investigated farmers, N=XXX, unit: %

Which maize varieties are you aware of? Please mention all maize varieties that come to your mind.

And what about varieties of Dekalb/Pioneer/Syngenta/KWS? Which maize varieties of these producers are you aware of?

44%

10%

2%

10%

3%

3%

4%

19%

17%

4%

7%

9%

3%

7%

5%

5%

4%

2%

1%

1%

4%

10%

14%

12%

1%

8%

71%

28%

21%

19%

12%

9%

8%

7%

5%

3%

3%

2%

2%

8%

19%

KWS

DuPont/Pioneer

Syngenta

Limagrain Europe

Monsanto

RAGT

Euralis

Moreau Saatzucht GmbH

Maisadour

SWS / Dr.Späth

Caussade Semences

Lantmännen SW Seed GmbH

Saatbau Linz

Others

DK/NA

Top of mind awareness

Other spontaneously mentioned

Stimulated spontaneous

Total spontaneous awareness

DEKALB PIONEER KWS SYNGENTA

Top of mind

spontantous

awareness

1% 10% 44% 2%

Spontaneous

awareness4% 14% 61% 9%

Stimulated

spontaneous

awareness

8% 14% 10% 12%

Total spontanous

awareness12% 28% 71% 21%



Decision about Purchase Intentions for Next Season – Output Example

DECIDED; 73%

NOT DECIDED YET; 27%

Based on planned maize area of investigated farmers

All results based on planned area for next season by investigated farmers =XXX ha, unit: %

What are the brands which you most probably consider for purchasing? Please name up to 5 brands from which you will be choosing.

What is the size of the area that you plan to sow this brand on?

When will you decide which brands of maize will you sow next season?

Results based on planned area for next season by

investigated farmers who did not decide yet about brands they

are considering =XXXX ha, (n=XX), unit: %

Ø 2.1 brands

(average)

Top 5 brands

considered

1 brand considered 52%

2 brands considered 15%




52% Top 5 brands considered

21% Other brands considered

December January February March April DK/NA

First week 10% (n=2) 47% (n=4) 1% (n=2) 1% (n=1) 5% (n=5)

Second week

Third week 1% (n=1)

Fourth week 5% (n=1) 14% (n=1) 1% (n=2) 2% (n=2)

DK/NA 1% (n=2) 1% (n=4)

Total 17% (n=6) 61% (n=5) 2% (n=4) 4% (n=7) 5% (n=5) 11% (n=9)

Average prices, in USD, for 50k, with VAT, based on farmer answers (end user level)Maize Hybrids Price Perception – Top 20 Hybrids – Output Example

26

100 103108 109

99

108

88

110

87

96

116 117

10095

91

108

119

110 112

89

60

80

100

120

140

All results based investigated farmers aware of prices for specific hybrid, unit: average value in USD for 50k, with VAT

At what price this variety is available on the market?


Based on planned maize area of investigated farmersPurchase Intentions for Maize Hybrids in 2016 – Output Example

27

NOT DECIDED YET; 17%

Other varieties (not mentioned as top 5);

21%

Ricardinio; 4%Sumaris; 3%

Subito; 3%Atletas; 3%

LG 30.222; 3%

Toninio; 2%LG 32.16; 2%Torres; 1%Colisee; 1%Agro Vitallo; 1%

Danubio; 1%Pioneer variety, name

not specified; 1%Grosso; 1%SY Unitop; 1%

SY Talisman; 1%Saludo; 1%

LG 30.215; 1%Niklas; 1%

PR39F58; 1%DSV variety, name not

specified; 1%

Others from top 5 varieties; 30%

What is the size of the area that you plan to sow this variety on?

All results based on planned area for 2017 by investigated farmers =XXX ha, unit: %


Based on investigated farmers and their planned maize areaValue for Money Breeders Positioning – Output Example

28

Results based on investigated farmers, N=215 and their planned area for 2017 =XXX ha, units: USD, with VAT , for 50k for average price, average mark

for value for money evaluation, % for share (bubble size)

Having in mind your overall opinion about maize seeds you are considering, how would you evaluate these seeds based on the value it is giving to you

for the price you are paying for it?

At what price this variety is available on the market?

What is the size of the area that you plan to sow this variety on?

Dekalb (1%)

Pioneer (5%)

KWS (21%)

Syngenta (5%)

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

106.0

108.0

3.4 3.4 3.5 3.5 3.6 3.6

Ave

rag

e b

ran

d p

rice

, in

US

D, w

ith

VA

T, fo

r 50

k

"Value for money" evaluation (average mark, 1-5)


Annex


Company Presentation

Project Structure

36

HQ

Kleffmann Group’s subsidiaries and

preferred partners, which have a

broad knowledge and deep insights

in terms of the local ag markets

conduct the study in the requested

countries. For fieldwork, the local

interviewers will be trained precisely

by Kleffmann Group HQ in Germany.

Kleffmann Group HQ is responsible

for the coordination, standardization

and analysis of the study. Therefore,

a well-experienced Project Manager

will be appointed for the study right

after confirmation. In the course of

the study, the Project Manager works

always in close collaboration with the

responsible Key Account Manager.Country results


*KAM = Key Account Manager, PM = Project ManagerKleffmann Quality Standards and Advantages


Constant monitoring of the

compliance of quality standards

Four eyes principle in terms of questionnaire

development, data checking and

reporting

Combination of expertise through

the agricultural background of the

KAM* and the market research knowledge of the

PM*

Certified, well organized and experienced

fieldwork partners

Intensive customer service and consulting

before, during and after the

conduction of the study

Regular updates regarding the

progress of the study as well as

fieldwork updates

25 years experience in

market research

Well established market research

partner

Facts and figures

Year of foundation: 1990

Headquarters: Lüdinghausen, Germany

Sector: Agricultural market research

Employees: > 350 worldwide

Interviewer: > 2.000

Turnover: 26 Mio. Euro (2014), (20% national / 80% international)

Since 2012: Partnership with NORD Holding (financial investor financed by an evergreen fund) for further growth and

investments in North America, Asia-Pacific and new customer solution tools

Locations: 20 subsidiaries in Europe, South America, North America, Asia/Pacific

International Network: Kleffmann Group operates in more than 70 countries across the world

International Partnerships: Agron (Italy), EMRHOD (North Africa), IBR (GB)

Company


Kleffmann Group is the leading international provider of

agricultural market research services.

As a full service research agency the Kleffmann Group offers

clients key information across multiple agricultural sectors,

from not only a global network of farmer input panels but also

both syndicated and customized ad-hoc research studies.

Vision, Mission, Values


Kleffmann Group is the leading international

provider of agricultural market research

services.

As a full-service research agency, the Kleffmann

Group offers clients key information across

multiple agricultural sectors, from not only a

global network of farmer input panels but also

both syndicated and customized ad-hoc research

studies.

How is Kleffmann Group different?


• 100% agriculture

• It’s in our blood – it’s all we do; everywhere

• Global footprint

• Our own employees do the work in 20 subsidiaries

• Unrivaled data collection capabilities in every major

crop producing country, including hard to reach

markets like Africa, Eastern Europe and Asia/Pacific

• Understanding of crop production products, markets and

practices

• Team members in local markets know how crops are

producers and how farmers think

• Anything from “simple” qualitative to complex

quantitative studies

• We can do almost everything using all common

data collection and analytical methods

• No “black box” processes

• Anything we do is supported in the literature

Global Network


Kleffmann Headquarters (D) / Regional Headquarters (BR, Asia-Pacific)

Kleffmann Office

Alliance Partner

Certified Fieldwork Partner

Buenos Aires

Ames /

Iowa City

Mexico

City

Lüdinghausen

Delhi

GB

DE

RU

RO

PL UA

TR

BG

CZ

HU

Colombia

South Africa

IT

BE

AT

ES

DK

KZ

North Africa

Manila

Beijing

RS

NL

Europe

Melbourne

Campinas(São Paulo)

Bangkok

Jakarta

FR

References


Kleffmann Group Headquarter

Professional career:

Since 2016 Key Account and Senior Project Manager, International AdHoc, Kleffmann Group

Since 2011 AdHoc Research Manager for Serbia and Bulgaria, Kleffmann Group

2008-2011 AdHoc Research Manager, (MEMRB)

2007-2008 Research Manager, (Interactive Research Agency)

2005-2006 Custom (Ad Hoc) Researcher (GfK)

2000-2004 Student Researcher, Institute for Social Sciences (University of Belgrade)

Professional education:

University degree: Master of Science Sociology

Experiences/skills:

Project Management within the scope of national and international AdHoc market research studies in agribusiness

and other industries

Expertise in qualitative and quantitative research techniques

In-depth knowledge of international agribusiness along the value chain

Contact Person


Jelena Jovancevic – Key Account and Senior Project Manager

Language: Serbian (mother tongue), English (fluent)

Nationality: Serbian

37

At your disposal for any further queries:


Jelena Jovancevic

Key Account and Senior Project Manager

Tel.: +381 (0) 60 509 55 85

[email protected]

Kleffmann Group

Mühlenstraße 1

D-59348 Lüdinghausen

www.kleffmann.com

Fax: +49 (0) 25 91/91 88 900

Johanna Pigisch

Team Manager Sales

Tel.: +49 (0) 25 91/91 88 305

[email protected]

Documents

Purchase Intention and Price Perception Study, Maize 2017 · regions, farm size groups –based on agreement with Monsanto) Optional: Personal presentation of the results Responsibilities