Optical Distortion Essay Example for Free

Optical Distortion EssayWhat is the optimal pricing indemnity for Optical Distortion, Inc. (ODI) so its product put forward penetrate the market with sustainable contribution? Company ODI manufactures and market contact lens for chicken that could partially slur the chicken thus prevent chickens from cannibalism behaviors toward each other, a problem that was traditionally exculpated by debeaking. Competition Primary- The product is revolutionary at the time, plus ODI secured an single(a) contract with the suppliers for the contacts material.As such, we expect no other firms would product the same product to compete with ODI in the short term. Secondary- Traditionally, debeaking is the method to solve the cannibalism problem among chickens. The labor cost of debeaking is about the same as the cost of contact lens installation. Nevertheless, contact lens provides other benefits compared to debeaking such as go on disappointing the mortality rate of chicken ca occasiond by cannibalism, reducing the feed consumption, and causing no negative effects to the productivity of a chicken.Customer In order to substantiate the benefit of ODIs product, a chicken farm needs to have at least 10,000 or more chickens. Such farms hold back of 3% of total US chicken farm. From exhibit 3, calcium has 592 farms with flock size of 20,000 or more in 1969. Segmentation From the geographic perspective, California, North Carolina, and atomic number 31 are the largest markets in the U. S. Given that ODI only has $200,000 initial capital and only four people work part time for the project, ODI should focus on the California market at least for the beginning.From the farm size perspective, the size of a chicken farm can be categorized as small farm, which has 10,000 or fewer chicken, medium farms, which has 10,000 to 50,000 chicken, and large farms, which contain over 50,000 chickens. Targeting ODI should focus on large farms first then medium farms. Small farms are not ODIs t arget because they are not economically feasible for ODIs products.Focusing on large farms has several benefits first, large farms has much greater potential benefits to use ODIs products due to the economy of scale, the substantial financial incentives will make the persuasions to use ODIs products much easier. Second, the owners of large farms are more likely to be entrepreneurial minded and are more open to adopt new and novel technologies/products. Third, if large farms start to use ODIs products, smaller farms may be attracted to follow these large farms steps.Fourth, consider the extremely limited sales force of ODI in the initial phrase, focusing on large farms can bring more contributions for the company. Positioning For owners of chicken farms with more than 10,000 birds in California, ODIs product can successfully reduces the morality rate of chicken due to cannibalism and lower the feed consumption of chickens without the negative effects that result in loss in egg produc tions, exemplified by this revolutionary products that underwent numerous trials and testings. P Analysis Of the 4 Ps, the most relevant one is the pricing strategy for ODI because it will directly impact the penetration rate and positioning of the new product. Price- Based on the information provided in the case, we can derive the potential benefit of using ODIs contact lens versus traditional debeaking method.