System Specialist

ODI Case Report

Problem statement:

Optical Distortion, Inc. sells contact lens for chickens in the forms. This is new product in the market to help farmer to maximize their benefits. With new started up company, they are facing distribution, pricing issue. There are a lot variable to set up price depend on how you want to gain the market dollar share. They can not price the contact lens too high because they are not sure that they can convince farmers. At the same time, they can not price the lens too low to be able to cover cost.

Consumer and demand analysis

Consumer Demand are different based on size of farms. They can be divided by three segment, small farms, medium farms, larger farms. Small farms operated by family, which is price sensitive group. Medium farms are very attractive by the product. We also mainly target on larger farms and 50% penetration of these farms within 5 years.

Competitor Analysis

* Current firms that using

debeaking service

* Secure term of license from New World Plastics for the exclusive use of hydrophilic polymer for nonhuman applications, nor to carry out development work on related polymers for such firms.

Company Strengths

* The primary advantage of using contact lens for chicken is low morality.

* Reducing farmer's feed cost.

* Reduce chicken cannibalization significantly by removing visual cues of perk order.

* Did not cost trauma to the birds and neither weight loss nor reduction in egg production was noticeable

Company Weaknesses

* More labor concern because of feed frequency.

* Limited asset

Economic evaluation

Based on fixed and variable cost of the lens, calculate the saving for farmers by using the lens; estimate the price of the lens by using Break Even tool analysis.

Recommendation

* Perform studies to quantify actual saving