Optical Distortion Case Analysis

Introduction

Optical Distortion, Inc. has developed a unique product that has the potential to resolve several issues faced by commercial chicken farming operations. The company has determined that visually impaired chickens have a tendency to act less aggressively toward one another. By inserting special contact lenses into the eyes of commercially raised chickens, the company can impair the bird’s vision and sufficiently alter their behavior to reduce altercations and cannibalization between members of the flock. The lenses have minimal impact on the productivity of the birds relative to the primary alternative, debeaking. There are also cost advantages with regard to lower feed expenditures as debeaked birds have difficulty feeding properly.

While Optical Distortion, Inc. has developed a product that offers a tremendous benefit to potential customers, the company faces a number of challenges as they prepare to launch the product. Recent trends in farming have shown most chicken and egg production moving away from smaller family farms, today egg production is largely controlled by large corporate operations that house thousands of birds. Chicken and egg production is also regionalized in such a way that many of the largest operations are concentrated in specific parts of the country. Identifying the most profitable target markets, and regions of the country will be crucial to successfully launching Optical Distortion, Inc’s. products.

Through the analysis of available data on the chicken farming industry and preliminary cost projections we have identified what we believe to be the most profitable target markets in the industry. We have also begun research in an effort to price these lenses effectively. Using the value-based pricing strategy the per-pair price should be set at $0.22. To successful execute this strategy

ODI must execute upon several goals for the product, budget, and specific programs.

Target Market

Determining the correct target...