Optical Distortion Essay

I. Executive Summary The predicament ODI faces is whether introduce its overlap at a high charge and encompass process its multi reaping and multi grocery store strategy. found on ODI especial(a) resources and current situation of domestic fowl indus prove in United States, it should digest on bear-sized- size of itd wimp farms and impairment ODI electron lens of the eyees at a higher level for the sake of its profits and its rising railway line plan.II. Introduction With the fact existed in domestic fowl indus see in late 1970s that most of the chickens in United States were owned by near large farms. Optical Distortion, Inc., a contact lens company, has veritable a kind of contact lens applied on chickens chartered to seduce enormous grocery store potential. However, it is hard for ODI to decide how to charge its products and how to extend its rail line nationwide considering its own curb resources.III. Analysis and Problem Identifications* Consumer Needs and WTP in that location argon various-sized customers small farm, medium farm, and large farm. They all suffered the loss caused by pecking order and tooshienibalism, and now most of them adopt the method of debeaking to reduce the intrusion of peck order, however, debeaking has some defects itself, and no matter what choice farmers make, they would c erstwhilern avocation aspects before making the decision whether the product or servicing is represent legal the trauma that would bring to chickens, since traditional depeaking method would cause deterioration to the chickens in some degrees the convenience of product usage is important especially for large farm the after-sale services means if the company can declare hotshotself professional follow-up services to the farm after get. The larger farms, the more(prenominal) suffered from pecking order, will be more interested in our product and help closely more on the quality of product or service and what economic value t he product will bring to them. The value of ODI lens for farmers is the incremental benefit over existed depeaking methods minus the switching approachs from depeaking to ODI lenses. and so ODI should entertain all the possible benefits that ODI would bring to farmers and also the costs of adopting ODI lens in to consideration. (See Exhibit 1)* Marketing Strategy Price The company concur on the minimum price of $0.08 per pair, however, benefits the farmers would obtain justify a higher price than it. Nevertheless, with the price higher than $0.08, it would be risky to convince farmers take the products in to consideration seriously until they experienced the products themselves. Because of ODI limited resources, it should obtain maximal contribution as soon as possible to support its increase fixed cost and variable cost. So I think ODI should price its lens higher than $0.08 per pair from the beginning, and forget the idea about introducing the lenses at frown price and raisi ng it later since chicken farmers would probably not agree.Product Now ODI focus on developing contact lenses for chicken applications, and it is an sophisticated product for poultry application that contains many advantages compared to depeaking method. However, it remains some problems like the lenses probably could not be reused. For ODI most potential customers, in this case, large farms, this problem may bring doubts about products economic value and ease of use which may increase the purchasing frequency and labor input. In addition, ODI may also think about becoming a multiple-product company in the future after establishing ODI lenses subscriber line with large chicken farms. They may consider develop additional product related to poultry industry found on more sophisticate technology and higher-level demand, they could also develop contact lenses for human applications as good as for nonhuman applications.Marketing and Communications ODI mainly focus on two ship canal approaching to its customers advertize in the leading poultry industry publications, participating in the most important industry apportion shows. I think ODI should continue the strategy and also take a multiple-dimension advertize strategy, such as advertising on some Business-to-Business moneymaking(prenominal) website related to poultry industry, since most of ODI target customers are large farms. Currently, ODI has one salesperson cover no more than 80 farms and one expert representative for each five salespeople, although it may bring labor cost if ODI decided to hire more people, the account of salespeople capacity not be enough for ODI to process its think-big strategy and when dealing with its large farm customers, ODI may need more technology representative as well as salespeople. ODI may also seek cooperation with large-sized farms by obtaining long-term licenses from them.Distribution Based on the region-by-region strategy, and the fact that most of the large far ms which have the flock size 100,000 and over are located in California region and sec Atlantic region, ODI should build its regional gainice and ware house in those regions and gradually establish the net to cover other regions by backcloth up smaller-sized regional office or warehouse in regions of lower demand.Promotion Since the customers usually would order large amount of pairs of lenses especially large farms, ODI could offer promotions like if purchasing over some level of amount, they might get a rebate or discount on the products. However, since ODI is shut away fragile with its limited outstanding resource and the margin of its products is connected tightly with the price, the price promotion may introduced after gaining more power of capital and coming up other competitors. Before ODI having the capability of processing price promotion, it could improve its service like prolong the time for which salespeople and technology representatives can track the entire course of application.* Competitive Strategy Benefit from its innovative technology and its patent and licensed protection of its products, ODI can hold off competitions for at to the lowest degree three years, therefore, ODI should not relax on its final stage of multiproduct and multimarket company in the country, find a way to build marking image and close business relationship with suppliers and consumers, ODI should prepared well for confronting competitors by continuing product update and improving services, and ODI should also protect its branded technology by issuing patent.* Intermediary Consideration Supplier in the buff conception malleables is the exclusive supplier to one of the materials for ODI lens. Because New World Plastic controlled the patents for deliquescent polymer, on one hand, ODI should maintain the relationship with New World Plastic since ODI obtained a long-term license from it for exclusive use of hydrophilic polymer for nonhuman applications, and Ne w World Plastic agreed not to expose polymer for other firms seeking nonhuman markets, this would provide more time for ODI to exposit its influence in industry, on the other hand, ODI should keep the multiple-product strategy so that seek more bargaining power in this relationship and try to diverse risk of depending on limited suppliersIV. Alternatives Evaluation Option 1 happen think-big strategy with lower price If ODI plan to cling to its multimarket and multiproduct strategy, it should try to adequate to(p) the market as soon as possible, since for now it was limited by its scale and resources, it is hard for ODI to obtain considerable investment. To this end, ODI may consider capturing market at first place, therefore, it should provide price which its customer preferred. However, once the price is introduced, it is difficult for ODI to raise it in the future, moreover, it is urgent for ODI to obtain supreme contribution on account of its current situation.Option 2 Keep think-big strategy with insurance premium price Although farm owners may not blemish the benefits of adopting ODI lenses are much greater than $0.08 per pair, ODI can altering this by advertising extensively or promoting products by free samples and making more approaches to customers. Because ODI lenses are a kind of innovation for poultry industry, and there are sure as shooting no incumbents in the market or competitors in at least 3 years, ODI have some level of pricing power. Given premium price, ODI are able to maintain its marginal profits, and also beneficial for its business expansion, since the margin should cover the costs of additional region offices and warehouse and advertising costs. Once ODI established its ODI lenses business, it can seek more opportunities in the market by expanding its labor lines and creating newly favorable categories with additional capital and production capability.Option 2 Keep one-product strategy with premium price Considering its limit ed resources, it is unrealistic for ODI to expand its production lines immediately, the ODI lenses are still an immature product in market, and ODI will face uncertainties as the project carrying on. Therefore, ODI currently has not extra resources regarding other products and markets. Despite of growing numbers of chickens and farms, poultry industry shows a trend that chicken population are more and more focus on large farms but the growth in number of large farms of over 100,000 flock size is not as quick as in the number of the chicken that they own (See Exhibit 2). Therefore, the market potential is quite limited in the long run and ODI should open a broader market.V. Recommendations and Conclusion If ODI lenses priced at a premium level at first, ODI could obtain more margin and it dont need to cephalalgia about the difficulties in raising price in the future. It should also focus on improving the quality and services of ODI lenses, try to build up solid business relationshi p with its suppliers and customers, also find multiple ways of advertising and increasing the customers awareness and accessibility of products. For ODI business expansion plan, I think ODI should focus on large-sized farms at the beginning put diversion its business expansion temporally and focus on promoting ODI lenses regionally establish on its limited resource. ODI should rely on technology updating, more effective advertising, and better services to build up brand image and plunge market share. After ODI lenses widely accepted by the market, ODI can lead off marching to other categories maybe poultry related products or non-poultry industry, based on its experiences and technology in this field.