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