A. Problem statement: Optical Distortion Inc.(ODI) is a small new company, not yet in business, with a patent for an innovative product designed to prevent chickens from cannibalism behaviors toward each other. These lenses are used instead of traditional way of debeaking. ODI must develop marketing strategies about targeting, positioning and optimal pricing to launch its new product.
B. Recommendation: The dilemma ODI faces is whether introduce its product at a higher price and continue process its multimarket strategy. Based on ODI limited resources and current situation of poultry industry in United States, ODI should target large farms have 50,000 chickens or over, and focus on the market in California and south Atlantic region in the short term and set an initial high price for the sake of building a good brand equity and gaining high market share and profits.
A. Consumer Analysis In terms of farm size, current market is generally divided into three segmentations: Small, medium and larger farms. There is substantial evidence to suggest that ODI should focus their marketing and sales strategy towards large farms. Because number of small farms declines at a rate of 25% every year, furthermore, 80% of the chicken would be on larger farms around 1970s. Additionally, small farms are normally family-owned thus reluctant to new technologies and have limited resources and salesperson. Besides, Small farms have smaller henhouses and cannibalism in birds may not be a real concern. With these arguments and the fact, ODI can wisely exclude small farms from their marketing focus. Larger farms are a) professionally operated and have larger transactions, which can let ODI focus on a narrower set of farms to save budget on promotion as well as obtain greater returns, b) more likely to be entrepreneurial minded to adopt new products, c) more sensitive to substantial financial