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Optical Distortion Case

Introduction

Optical Distortion Inc. is a small new company, not yet in business, with a cash asset of $200,000 and a patent for an innovative new product (the only one) which is a contact lens designed to impair the eyesight of chickens. . These lenses are used instead of debeaking. Lensed chickens are more likely to survive. They also eat more efficiently than debeaked chickens. The key issue facing ODI is "How to market these lenses?". The analysis in this paper provides recommendations for ODI on their marketing and pricing strategy to launch this new product.

Strengths include highly innovative product (main competitive advantages over debeaking arriving into savings from reduced cannibalization, trauma elimination, better feed efficiency, no weight loss and no reduction in egg production, a little bit less costs then debeaking for lense installation), tested with good results for couple of months in California and Oregon farms, without retention problems, trust from venture capital markets, patent and license protection for three years (which keep potential competition far), time plan (introduce