Optical Distortion Inc.(ODI) markets lenses that distort the vision of chickens. These lenses are used instead of debeaking. Lensed chickens are more likely to survive from cannibalism among the chickens. The lenses are also supposed to reduce the amount of feed per chicken per day than that for debeaked chickens. Using lenses do not lead to any trauma among chickens and therefore do not affect their egg laying capacity. The objective of the case is to present a financial and marketing analysis of ODI with an inside view. ODI Managers believe direct sales to chicken farms are the best way for sale of the product. They have determined that it is profitable to sell lenses in those farms which have a chicken flock of more than 10000. The market consists of three segments- large, medium and small farms. ODI considered it feasible to sell lenses to the medium and large farms.
•First mover advantage, innovator
•Technological patent holder
•Monetarily beneficial to the poultry farmer
•No awareness about the product.
•Credit crunch for the firm
•Difficult to market to smaller farms
•Threat of bigger players entering the market in the near future •Possibility of no sale of product (i.e. the farmers do not buy the lenses). Opportunities
•To develop new products for this category
•Entering bigger markets such as South Atlantic region
Since there is lack of awareness about the product, it is very difficult to convince the poultry farmers to buy the lenses. So how these lenses should be marketed in order to not only recover the costs incurred but also to carry out the Research and Development so as to face the competition in the near future.
The Excel analysis has been given in a seperate file.
We compared the number of chickens in California and South Atlantic and found that the number of chickens in South Atlantic was greater than that of California...