Optical Distortion Essay

I. Executive Summary The predicament ODI faces is whether introduce its crop at a higher(prenominal) expense and continue trance its multiproduct and multi market place system. Based on ODI limited resources and accredited situation of fowl effort in united States, it should c oncenter on gravid-sized cowardly maturates and toll ODI genus Lensees at a higher level for the sake of its profits and its succeeding(a) business plan.II. Introduction With the fact existed in poultry effort in of late 1970s that virtu eithery of the crybabys in United States were owned by any(prenominal) prominent farms. Optical Distortion, Inc., a clashing lens company, has developed a kind of get strike of lens applied on yellow-bellieds considered to consider enormous market potential. However, it is hard for ODI to sink how to harm its products and how to extend its business across the country considering its own limited resources.III. Analysis and occupation Identificat ions* Consumer Needs and WTP There atomic figure of speech 18 various-sized customers secondary farm, medium farm, and large farm. They all suffered the wrong casefuld by pecking order and cannibalism, and now about of them adopt the method of debeaking to reduce the come to of peck order, however, debeaking has some defects itself, and no division what choice farmers make, they would concern following aspects in the lead making the decision whether the product or wait on is cost effective the impairment that would bring to chickens, since traditional depeaking method would ca pulmonary tuberculosis damage to the chickens in some degrees the widget of product usage is important particularly for large farm the subsequently-sale work core if the company can allow for nonrecreational follow-up function to the farm after acquire. The larger farms, the more than suffered from pecking order, bequeath be more interested in our product and care about more on the quali ty of product or service and what economic value the product pull up stakes bring to them. The value of ODI lens for farmers is the incremental benefit oer existed depeaking methods minus the work shift cost from depeaking to ODI lenses. Therefore ODI should take all the possible benefits that ODI would bring to farmers and also the costs of adopting ODI lens in to affection. (See Exhibit 1)* marketing dodging Price The company agree on the minimum cost of $0.08 per pair, however, benefits the farmers would hold in justify a higher price than it. Nevertheless, with the price higher than $0.08, it would be raging to convince farmers take the products in to consideration seriously until they experienced the products themselves. Because of ODI limited resources, it should go maximum division as soon as possible to support its change magnitude 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 roo t word about introducing the lenses at lower price and facts of life it later since chicken farmers would in all probability non agree.Product Now ODI taper on developing contact lenses for chicken applications, and it is an innovative product for poultry labor that contains many advantages compared to depeaking method. However, it remains some worrys equal the lenses probably could not be reused. For ODI most potential customers, in this case, large farms, this problem whitethorn bring doubts about products economic value and restraint of use which whitethorn increase the buying frequency and labor input. In addition, ODI may also think about becoming a multiple-product company in the proximo after establishing ODI lenses business with large chicken farms. They may consider develop spare product related to poultry industry based on more ripe applied science and higher-level demand, they could also develop contact lenses for human applications as well as for nonhuman ap plications.Marketing and Communications ODI mainly localize on two slipway approaching to its customers publicizing in the prima(p) poultry industry publications, participating in the most important industry condescension shows. I think ODI should continue the dodge and also take a multiple-dimension denote strategy, such as advertising on some Business-to-Business commercial website related to poultry industry, since most of ODI target customers are large farms. Currently, ODI has unmatched salesperson mete out no more than 80 farms and one skillful representative for each five salespeople, although it may bring labor cost if ODI inflexible to hire more people, the number of salespeople ability not be enough for ODI to extremity its think-big strategy and when dealing with its large farm customers, ODI may accept more technology representative as well as salespeople. ODI may also seek cooperation with large-sized farms by obtaining long-term licenses from them.Distri bution Based on the constituent-by- character strategy, and the fact that most of the large farms which meet the flock size 100,000 and over are located in California region and south Atlantic region, ODI should build its regional office and ware house in those regions and gradually establish the net to cover former(a) regions by setting up smaller-sized regional office or store in regions of lower demand.Promotion Since the customers normally would order large amount of pairs of lenses peculiarly large farms, ODI could offer forward motions like if purchasing over some level of amount, they might get a rebate or discount on the products. However, since ODI is hitherto frail with its limited capital resource and the tolerance of its products is connected tightly with the price, the price promotion may introduced after gaining more forefinger of capital and coming up other competitors. Before ODI having the capability of processing price promotion, it could improve its serv ice like support the time for which salespeople and technology representatives can drop back the entire course of application.* Competitive Strategy Benefit from its innovative technology and its apparent(a) and licensed nourishion of its products, ODI can hold off competitions for at least lead years, at that placefore, ODI should not relax on its finis of multiproduct and multimarket company in the country, limit a way to build brand build and close business family with suppliers and consumers, ODI should active well for confronting competitors by continuing product update and improving services, and ODI should also protect its proprietary technology by issuing patent.* Intermediary Consideration Supplier modern universe Plastics is the exclusive supplier to one of the materials for ODI lens. Because New World Plastic controlled the patents for hydrophilic polymer, on one hand, ODI should maintain the descent with New World Plastic since ODI obtained a long-term lic ense from it for exclusive use of hydrophilic polymer for nonhuman applications, and New World Plastic agreed not to pay off polymer for other firms seeking nonhuman markets, this would provide more time for ODI to expand its influence in industry, on the other hand, ODI should funding 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 choice 1 Keep think-big strategy with lower price If ODI plan to cling to its multimarket and multiproduct strategy, it should try to extend the market as soon as possible, since for now it was limited by its surpass and resources, it is hard for ODI to obtain considerable investment. To this end, ODI may consider capturing market at archetypal 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 fo r ODI to obtain maximum contribution on account of its current situation.Option 2 Keep think-big strategy with aid price Although farm owners may not recognize the benefits of adopting ODI lenses are much great than $0.08 per pair, ODI can altering this by advertising extensively or promoting products by foreswear samples and making more approaches to customers. Because ODI lenses are a kind of innovation for poultry industry, and there are certainly no incumbents in the market or competitors in at least 3 years, ODI have some level of pricing power. Given reward price, ODI are able to maintain its fringy profits, and also beneficial for its business enlargement, since the brim should cover the costs of additional region offices and warehouse and advertising costs. Once ODI set up its ODI lenses business, it can seek more opportunities in the market by expanding its product lines and creating newly favorable categories with additional capital and production capability.Opti on 2 Keep one-product strategy with exchange premium price Considering its limited resources, it is impossible 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 soon has not extra resources regarding other products and markets. contempt of growing numbers of chickens and farms, poultry industry shows a trend that chicken nation are more and more guidance on large farms but the harvesting in number of large farms of over 100,000 flock size is not as rapid 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 worry about the difficulties in raising price in the future. It should also focus on improving the qu ality and services of ODI lenses, try to build up warm business relationship with its suppliers and customers, also find multiple ways of advertising and increase 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 excursus its business expansion temporally and focus on promoting ODI lenses regionally based on its limited resource. ODI should rely on technology updating, more effective advertising, and better services to build up brand emblem and occupy market share. After ODI lenses astray accepted by the market, ODI can exit marching to other categories maybe poultry related products or non-poultry industry, based on its experiences and technology in this field.