Optical Distortion Incorporation. is a little new firm with a patent for an innovative new product the contact lens made to impair the eyesight of chickens. The analysis through this paper delivers recommendations for ODI on their advertising pricing strategy to launch this new product. Industry Segmentation
There is certainly substantial evidence in the case to suggest that ODI should segment the market based on flock size of the facilities and emphasis their marketing and sales approach towards farms with more than 15, 000 chickens. As illustrated in Display 4 of the case study, volume of chicken farms with head size less than 10, 1000 has greatly shrunk among 1964 and 1969. This kind of trend provides continued and it is estimated that between 1975 and lates 1970s 80% from the chicken population would be on farms (3%) with 15, 000 or even more birds. With limited solutions and product sales personnel prudent for ODI to characterize their offered available industry (SAM) since medium and enormous farms only and not focus on small farms at all.
Besides, Little farms have got smaller henhouses and cannibalism in chickens may not be a real concern for people farmers. The production loss due to cannibalism may not be large enough for making ODI's merchandise appealing to these kinds of customers. Likewise, Garrison feels that a farmville farm would have to have got at least 10, 500 birds being sold profitably by ODI. With these kinds of arguments plus the fact that tiny farms industry segment have been declining at a rate of 25% every year, ODI can properly exclude this kind of segment off their marketing target.
Geographically, ODI should focus on the pacific cycles region, beginning with California and Oregon because that's exactly where ODI's lens has been analyzed on a quantity of farms with satisfactory results. Acquiring 20 farms within two The south counties can give them an extraordinary start with a market penetration price of seven percent in the first year. Because they acquire farms in California, ODI should certainly extend their particular operations to North Carolina and Georgia which in turn along with...