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Vistakon: 1 Day Acuvue Disposable Lenses Case Analysis
Situation Audit
Based on 1993 market share figures, Vistakon, Inc. ... These strong numbers suggest that Vistakon has firm control over this market. However, recent test market results of Vistakon’s new product, 1-Day Acuvue daily wear disposable lenses, have executives concerned over whether or not Vistakon should continue with a national launch or reexamine its current product positioning, pricing, and promotion strategies.
Corporate Mission and Objectives
Vistakon’s corporate objectives include leadership within the disposable lens market through product innovation and manufacturing while offering a competitive advantage of low cost and value to the consumer. Over a short six year period, Vistakon sales have grown enormously from $20 million to $290 million which have helped to solidify its position as the leader in this market. Additionally, Vistakon has managed to cut marketing and distribution costs in half resulting in 75% profit in 1993. ... Vistakon believes the success of 1-Day Acuvue depends primarily on how ECPs present the cost to patients. Additional top management concerns regarding the potential success of 1-Day Acuvue lenses include the following questions:
• Is Vistakon’s ability to attract consumers to ECPs effective enough? ...
SWOT Analysis
Since 1989, Vistakon has been the leading manufacturer of disposable lenses. Its continuous climb in market share can be attributed to the following strengths:
• First mover advantage with disposable lenses
• Unique proprietary manufacturing process – “stabilized soft molding”
• Reliability of manufacturing process to produce large volumes at low cost and at low cost to ECPs
• Strong distribution channels to authorized ECPs
• Clear mission to continue innovation in disposable market
• Financial backing of Johnson and Johnson to support new product launch and decentralized structure of Vistakon to make corporate decisions
Careful examination of the eye care industry and Vistakon’s marketing strategies also reveal the following weaknesses:
• Sales and marketing programs need attention and innovation
• Surveys and test market results show that consumers perceive 1-Day Acuvue as too expensive
• Acquisition strategy of new consumers is weak because ECPs rely on “pulling” consumers in for eye exams
• No clear target market defined for 1-Day Acuvue disposable lenses
Despite these weaknesses, Vistakon is positioned strongly to capitalize and take advantage of many potential opportunities including:
• Current strong U.
Approximate Word count = 1656
Approximate Pages = 6.6
(250 words per page double spaced)
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