Optical distortion

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Optical distortion

  1. 1. Optical Distortion Inc (A) SUBMITTED BY Section D - Group 10 Arpit Jain (12P189) Girish Chandra Joshi (12P199) Kumar Abhinav (12P209) Varun Chopra (12P219) Santosh Garbham (12P229)
  2. 2. Context ODI has an “idea” to reduce vision of poultry chicken to obtain its good behavior by making a contact lens for it ODI has transformed that “Idea” to “Product” and tested it technically on a number of farms in California and Oregon This case is about transform that “product idea” into a “product concept” and launch as a “brand” with a marketing strategy ODI targets introduction at least by spring 1975 and achieve national distribution by the end of 1977
  3. 3. Debeaking Vs. ODI lens Debeaking  Needs high precision ODI Lens  Limited time  Simple technique window  Can be done on  Traumatizes adult chicken chicken  No trauma  Reduces  Chicken productivity of productivity is not chicken for a week affected
  4. 4. Product Concept Revolutionary Technology Who – Poultry Farmers Benefits – Easy to use, cuts recuperating time and decreases costs When- At purchase of Starter Pullets “If we pull this off , We would have revolutionized the business of Animal behaviour” Ronald Olson, Vice President Marketing
  5. 5. Segmentation (Size of Farms) 3 types of Farms in U.S.A.  Small Sized Farms (less than 10000 chickens)  Medium Sized Farms (10000 -50000 chickens)  Large Sized Farms (more than 50000 chickens) ODI Should target Medium sized and Large sized farms with main focus on farms with more than 50000 chickens  Higher profitability  A sales person covers 80 farms irrespective of the size of the farm  Declining number of Small sized Farms  Number of small sized farms are reducing at a rate of 25 % per year
  6. 6. Segmentation (Geography) South Atlantic Region has around 29 % of the total chickens California accounts for about 16 % of the total chickens ODI should launch the product via a region by region rollout starting from California  California is a large market with around 40 million “Two Counties in South California contained chickens  Southern California has 21 million chickens” 20 farms that housed large farms (more than 50000 chickens)
  7. 7. Segmentation (Geography)Contd..  ODI should enter Georgia and South Carolina after California “North Carolina, California and Georgia account for 25 % of the total chickens in USA”
  8. 8. Farmer’s Savings CalculationFarmers savingsper 20000 birds 156lb/day 56940lb/yr$ savings on feed per 20k birds 4014.78per hen-year savings in $ 0.20075per dozen egg savings in cents 0.9125 1 cent approx9%-4.5% would save 50% cost(in $ perhen) from pecking 0.1per dozen egg savings in cents 0.454545455Total per dozen savings in cents 1.5 approzsavings/dozen 1.5 increase by 50%egg dozens/hen-year 22savings/hen-year 33centspotential of a 20000 farm 660000savings/year 6600
  9. 9. Price The Company should price the product in the range of 12- 15 cents per pair  ODI should target maximum early contribution  The estimated benefits for the farmers is around 33 cents ,thus savings of 18-21 cents will be passed to farmers  It may be difficult to convince the farmers of the higher benefits, thus higher price may reduce sales  Chicken farmers may react unfavourably if we increase the price in the later stages  Market Skimming Pricing should be used as the objective is to maximize early contribution
  10. 10. Promotion ODI should use personal selling involving specialized technicians Personal Selling may also influence the Opinion Leaders which would result in early adoption of the product In subsequent years, ODI plans to advertise the product in 8 leading poultry industry publications ODI also plans to participate in important industry trade shows which may also generate new product ideas for the futureSelling points:  Substantial increase in Savings  There is no productivity decrease due to traumatization
  11. 11. Additional Recommendations This is a completely new technology. So, to push to customers from “interest” to “trial”, we recommend “Free Samples” to customers with very large farms In the long run, providing labor training service of insertion of lens for a fee. It would be a win-win situation for both ODI and the farmers
  12. 12. Profit AnalysisCost/Box 30Projected Sales 20000000Boxes 80000Revenues 2400000 100Office cost 184000 7.666666667Depreciation of Patent 28000 1.166666667Advertising 100000 4.166666667sales staff 7 280000 11.66666667technical person 70000 2.916666667injection moulds 24000 1glass 640000 26.66666667costs 1326000 55.25profit margin 1074000 44.75
  13. 13. THANK YOU

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