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...
The Problem
ODI is contemplating the launch of a new product that will lead to greater productivity for the egg industry. ...
ODI needs to develop a marketing plan that will convince farmers to try the new product while fitting in its budget. ... In order to get past the farmers’ objections, ODI will need to mount an aggressive sales and marketing campaign. However, ODI will have to quickly return positive income in order to stay the course for more than a year. Thus, it is of paramount importance that ODI sets the price of the product at a point that will generate enough sales to surpass the break-even point.
In the following sections, we will present an introduction to the market for the ODI lenses, a discussion of alternative marketing strategies for the product, an analysis of the economic value add of the product, and conclude with a recommended “go to market” strategy. ...
Discussion of Marketing Strategy
The number one concern with marketing the ODI lenses is consumer adaptation. ODI does not have any real competitors. ... Primarily, ODI will have to persuade farmers that investing in this new technology can be practically implemented and makes economic sense (Exhibit 1: Analysis of Adoption Probability of ODI Contact Lenses). ... Whereas, when it comes to using the ODI lenses, the farmers only know what the salesperson tells them. The cost of debeaking is limited almost entirely to labor, while the cost of using the ODI lenses is about an equal amount of labor plus the price charged for the lenses. ... First, only farms of a large enough size will be able to purchase enough lenses to make the sales effort worthwhile for ODI. ...
Economic Value Add
The ODI lens is an innovation that can provide economic value to the farmer, but will require farmers to abandon more traditional practices and put their faith in an untested technology. Figure 1 illustrates the calculation of added economic value due to use of the ODI lenses and
Figure 1
Annual Value per Pair of ODI Lenses
Cost Categories CurrentOperationsCost ODIOperationsCost ODIValueAdd
Laying Stock 2. ... 325 represents the upper price limit that ODI can charge per pair of contact lenses. ...
The “Go to Market” Plan
We recommend a penetration approach to the market to position ODI in three years to either (1) compete with larger corporations for the market or (2) warrant a good price as an acquisition for the larger corporations. In order to gain such a position, ODI will have to use its modest marketing and sales budget efficiently.
Approximate Word count = 2069
Approximate Pages = 8.3
(250 words per page double spaced)
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