Optical Distortion Inc has developed a contact lens to reduce vision in poultry chickens to improve their behavior. They have tested the lens on farms in California and Oregon. The document discusses transforming the lens from a product idea to a branded product concept to launch in the market. It analyzes segmenting the market by farm size and geography, with a focus on medium and large farms over 50,000 chickens in California initially. It also discusses pricing the lens at 12-15 cents each, promoting through sales representatives and trade shows, and the potential cost savings and profits for farmers and the company.

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. 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. 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. 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. 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. 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. 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. Farmer’s Savings Calculation
Farmer's savings
per 20000 birds 156lb/day 56940lb/yr
$ savings on feed per 20k birds 4014.78
per hen-year savings in $ 0.20075
per dozen egg savings in cents 0.9125 1 cent approx
9%-4.5% would save 50% cost(in $ per
hen) from pecking 0.1
per dozen egg savings in cents 0.454545455
Total per dozen savings in cents 1.5 approz
savings/dozen 1.5 increase by 50%
egg dozens/hen-year 22
savings/hen-year 33cents
potential of a 20000 farm 660000
savings/year 6600

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. 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 future
Selling points:
 Substantial increase in Savings
 There is no productivity decrease due to traumatization

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. Profit Analysis
Cost/Box 30
Projected Sales 20000000
Boxes 80000
Revenues 2400000 100
Office cost 184000 7.666666667
Depreciation of Patent 28000 1.166666667
Advertising 100000 4.166666667
sales staff 7 280000 11.66666667
technical person 70000 2.916666667
injection moulds 24000 1
glass 640000 26.66666667
costs 1326000 55.25
profit margin 1074000 44.75

13. THANK YOU