Customers III. Pricing Strategy 2 Skimming -> penetration IV. Recommendations 2 Case Facts Robert D. Garrison working with Ronald Olson invented in 1965 the ODI lens to mimic the effect of cataracts on chickens The contact lens for use on chicken was originally designed by Robert Garrison and collaborations were made with Ronald Olson to test and refine the lenses In 1966 an investor saw the project feasible and they had formed a corporation; Optical Distortion Inc. The company was formed in
Premium Chicken Competition Bird
Summary and Recommendations: ODI Inc wants to launch a product that is completely new‚ technologically advanced and performs well as demonstrated in the initial tests. The ODI lens helps farmers by controlling cannibalization among birds at farms. Cannibalization is an issue that is more prevalent in farms with a large number of chickens as they fight for food and their territory. ODI lens helps in distorting the vision of the chicken and thereby curbing both these issues without causing much trauma
Premium Costs Variable cost Fixed cost
reduced to about 12" • visual acuity greatly reduced (astigmatism) • hydrophilic polymer : no irritation problem • slightly larger than the eye opening to keep it in place • red tint alters appetite of chickens and cannibalism tendencies • distortion built into the crown • inner eyelid (keeping the eye moist and clean) no affected (under the lens) (+) Cannibalism reduced : Peck order removed • 80% of chicken in 3% of farms with 10‚000 or more chickens : chicken are confined in groups •
Premium Egg Bird Term
Recommendation: Optical Distortion‚ Inc. should charge a price of $711 per pair 3C’s: After a chicken farmer’s accidental discovery of the imporoved productivity of the chickens with reduced vision‚ Robert D. Garrison invented the Optical Distortion‚ Inc. lens for the chickens in 1965. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon with satisfactory results‚ which is reducing cannibalization rate and being more tractable of chickens. With a long-term
Premium Marketing Agriculture Generally Accepted Accounting Principles
Optical Distortion‚ Inc (ODI) is a company that has developed special contact lenses to harmful impact the eyesight of egg-laying chickens. The reduced vision from the contact lenses helps preserve the life of chickens‚ increase the productivity of egg laying and reduce costs for farmers using the lenses for their flocks. At the end of 1974‚ ODI’s owners and management were finalizing a strategic marketing plan to introduce the lenses commercially early in 1975 and work towards nationwide penetration
Premium Contact lens Book of Optics Visual perception
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
Premium Costs Variable cost Farm
Optical Distortion‚ Inc. HBS Case Study 9-575-072 Marketing Management MKT 6301.002 – Fall 2012 Team Members Young soo Han Kevin Yang Jay Chi Lenny Liao Brad Standridge As of 1974 the chicken population in the US is already in excess of 400 million birds‚ with slow but steady growth expected through 1980. Given that fact that a great many of these birds live in tight quarters on very large chicken farms‚ a means of combating the chicken’s natural instinct
Premium Variable cost Costs Chicken
Chapter 2: Analysis of marketing strategy 2.2 Pricing Strategy 2.2.1 Factor affecting pricing decisions (type of market) iPhone4s is a product from Apple which sells in oligopoly competition market. As we know‚ the characteristic for oligopoly competition market are product differentiation‚ few sellers but many buyers in the market‚ high barrier market entry and exit‚ price maker in the market and spend money in advertisement. It has a few of competitors‚ such as Samsung Galaxy S2 (RM2099)
Premium Apple Inc. Pricing Marketing
Apple prices strategies. Introductory prices. This strategy means to set low prices that are used to gain entry into the market. It is usual used from startup companies and companies that want to enter in the new market. Establish a high reference price Behaviorial economist Richard Thaler has noted that consumers are really bad at making decisions about value and constantly need "reference prices" for comparison. A dress costs $80. Is that too much? Not if it’s marked down 50 percent from $160
Premium Apple Inc. Flash memory Pricing
Price objective and strategies According to Köehler (1996)‚ the skimming price strategy is a high price strategy which provides a healthy margin but risks a depressed sales volume. Since high prices also attract piracy‚ protection costs against piracy basically eat up margins. In the case of Apple‚ the buyers are not attracted by pirated versions of products because of the image of the brand linked to the snobbism of the “members of the Apple family”. In the graph below‚ we compared iPod sales
Premium Apple Inc. Marketing Pricing