Vistakon and 1 Day Acuvue Disposable Contact Lenses

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  • Topic: Contact lens, Corrective lens, Corrective lenses
  • Pages : 6 (1782 words )
  • Download(s) : 1092
  • Published : June 4, 2011
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I recommend that Vistakon commence its launch nationwide. 1-Day Acuvue Disposable Contact Lenses (1-D Acuvue) represents a differentiated and exciting soft contact lens product. The point of difference of 1-D Acuvue relative to other soft contact lenses is its convenience and comfort. The primary market segment for 1-D Acuvue is the part-time contact lens wearer (3.9MM of total U.S population), who wore them only on certain events. Vistakon would encounter less price resistance with these part-time users due to the less frequency use, and more willing to pay a higher unit price than regular daily wear customers due to the product’s high quality, convenience and comfort. Secondary market segment is the full-time (conventional and frequent replacement) users who weight convenience and comfort more than price and can be easily converted to 1 day disposable product due to above advantages. Approximately 146 million people in the States required corrective lenses and the number is increasing with the aging of the overall population. Vistakon can break-even, if they only capture a small percentage of the $15Bn optical supply market. Vistakon’s 1-D Acuvue needs to steal market share from convention and frequent replacement contact lenses in order to be successful. (Customer) Vistakon have a highly successful launch of the disposable contact lenses to become the market leader in contact lens industry. It is a high profile business in J&J’s professional segment, supported by J&J’s renowned brand name and rich-capital. Vistakon implements a unique proprietary soft-molding manufacturing process, which greatly improved optics and superior comfort to patient, as well as largely increased volume and cut cost. Vistakon’s rapid growth stimulated the development of an extensive sales force, successfully established the sales channels through distributor, retail outlet, and ECP. Vistakon’s two major products are Acuvue and Surevue, each with 14.8% and 4.1% market share in the soft contact lens fitted in the US, with annual growth rate of 22% and 40% respectively (Appendix 1) indicates the rapid growth of disposable contact market and Vistakon’s “First mover advantage”, which are essential for 1-D Acuvue’s nationwide campaign. (Company) The vision correction market in the States is quite crowded, dominated by traditional spectacles (80%) with purchase frequency of every 3-5 years, and the rest 20% of the population worn contact lenses. The contact lenses market is further differentiated by full-time vs. part-time wearer, hard contact vs. soft contact, daily wear vs. extended wear, and eventually split into convention, frequent-replacement, and disposable lenses categories. Vistakon’s product has the biggest market share in the disposable lenses segment. The other major competitors includes Bausch & Lomb’s SeeQuence, Ciba’s NewVue, but they had deliberately delayed development and introduction of disposable product due to their vested interest in the contact lens solutions market and fear of cannibalizing their reusable contact lens business, which gives Vistakon’s dominant edge in the disposable contact segment. Vistakon also have the leverage to maintain its leadership in the disposable lens market by means of cost reduction, technology innovation, given substantial investment in new technology. The high volume, low-cost, high quality product, as well as heavy advertising will make it hard for competitor to follow suit, and this will ensure Vistakon’s competitive advantage to its next logical step - 1-D Acuvue nationwide. (Competitor) The most important collaborator for Vistakon is eye care professional (ECP), 47% of Vistakon’s sales were distributed directly from Vistakon to ECPs, as their recommendation efforts will primarily determine to success of 1-D Acuvue. The selection of the actual contact lens was a joint decision made by the patient and the ECP. During eye exam ECP made tech recommendation, patient compare...
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