Case Optical Distortion
Company Background:
In late 1974, Olson, the vice president of marketing of Optical distortion, was asked by Daniel Garrison to develop marketing for the contact lenses for chickens, which is the new and only product in the whole market.
The roduct was invented accidently when a farmer saw the chickens,which were afflicted and were easy to handle and that they used to ess. The farmer than contacted the chicken specialist to visit the farm not for the cure of the birds, but for making all the birds afflicted. The primary objective of the farmer was to make all the chickens in the farm eat less and to be handled easily. This was the case in 1962.
In 1974, when the development of the contact lenses for the chickens was started, the problem was that the same function of the lenses was carried out by de-beaking the chickens through different tools, hence this made he chickens less dangerous for other chickens, which resulted less mortality rate. The process of the de-beaking was quiet old as compared to the lance technology.
The technology f the lenses not only faced with the problem of the mortality as a result of fighting, but also due to less trauma and illness caused by the de-beaking operation of the chickens. The lance usage also saved the feed costs for the farmers as the chickensateless after wearing lances.
Problem statement:
The primary problem of the company is to determine the pricing strategy and the price amount of the contact lances for chickens.
The problem in development of the pricing strategy is that the use of the debeaking process was very old and farmers may not trust on this new technology especially the small farmers as they see the technology as unfamiliar.
On the other hand, small and large farm owners are more sensitive to price and it will make it difficult for the company to charge high price or make the price skimming strategy.However,ODI has complete monopoly in the market............................
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