MARKETING REPORT

Group  11
Hoang Bui              400260092
Lilliane Zhang     400259310
Tomisin Oladeji     400283400
Gurjot Pandher       400226900
INTRODUCTION

ODI was established in 1966 by talented lenses designer (Robert D. Garrison), a farmer from

Oregon (Robert Olson) and a professional business-man (James Arnold). After solving technical

issues placing lenses in chicken eyes and securing patent, in 1973, they co-operated exclusively

with New World for nonhuman lenses application.

KEY ISSUES

ODI is facing three major problems which have prevented the company reaches its full potential.

Lacking sustaining financial foundation: The initial investment was from a local businessman

with $5,000, and having completed the license agreement with New World, ODI raised another

$200,000. Whether ODI can generate more funds is essential for turn business potential into real

success.

Lacking efficient marketing plan: Being the first mover also requires efficient marketing

strategies to cultivate brand awareness, such revolution in poultry industry need to be recognized

from its audiences—farmers.

Tricky pricing strategies: High contribution is critical to support the think-big strategy.

Although the new lenses enable farmers obtain benefits more than costs, a proper price that

attracts consumers but also covers costs and facilitates future growth is critical.

MARKETING MIX

Product: ODI lenses could be a revolution for poultry industry, and is the only lenses made for

non-human purposes.
Price: The price is to be determined, but the actual value of such products need to be carefully

illustrated to target customers—farmers so that there is more room for higher price and profit

margin.

Promotion: Monthly advertising in the eight leading poultry industry publication to increase

products awareness.

Place: Entering the market starting in California and expand region by region. Each salesperson

should cover no more than 80 farms, with technical person support the sales and implementation

process.

PROBLEM STATEMENT

How to design powerful business strategies to cultivate brand awareness, enter the potential

market with sustaining financial foundations and capital returns?

ANALYSIS

Internal Analysis

Strength

a) First mover advantage: With efficient strategies, ODI will acquire untapped market share.

What is more, it enjoys the innovative technology, and has the exclusive patent for 3 years,

which sets high entry barrier and rule out potential competitors. b) Exclusive supplier: co-

operated with New World, ODI acquires the exclusive use of hydrophilic polymer for nonhuman

applications. c)Unique selling points: ODI products effectively confront the causes of chicken

cannibalization, such products will face large market since it be highly beneficial to farmers.

Weakness
a) Unclear pricing strategies: how to determine a proper price strategies that attractive to farmers

who know little about products, but also support further R&D costs and expand plan still remain

unclear. b) lacking of trails leading to uncertainties of products performance in real farm.

To conclude, even though ODI faces challenges, the business model is solid, and product is of

high selling value to generate potential profits.

External Analysis

Opportunities

a) Large size of potential markets. b) The advancements of technology will facilitate ODI

products be more productive and useful.

Threats

a) Legal issues: such application might violate animal rights and receive punishments or

condemn. b) Competitors might enter the market after ODI educate the consumers.

In conclusion, ODI will face fierce competition after 3 years and might have legal pressure, but it

is still feasible to launch business since it is a potential, untapped market with significant return.

Alternatives

Alternative 1: Launched trial business with moderate price

ODI can allocate its limited financial and human resources into parts of its target markets, with

moderate pricing strategies aiming at getting maximum exposure to customers in such area. At

the same time ODI will accumulate capital returns step by step and raise funds for larger

expansion. ODI can also adjust its marketing and pricing strategies continuously based on

farmers’ feedback. With more financial support and more precise business strategies it will

expand region by region.

Such slow process puts ODI into competition risks since the patent is only valid for 3 years, and

no brand awareness cultivated in other regions will result in a window open for competitors.

Additionally, farmers will reluctant to accept a higher price later.

Alternative 2: Aggressively launch business across regions simultaneously

To get the most of patent protection and to build product awareness to deterrent potential

competitors, DOI will launch business across regions with aggressive prices to ensure such plan

is financially feasible. This plan will require more funds raised and heavily re-invest in

marketing in order to facilitate “go-big” plan.

Cons

More efforts required to educate farmers and convince them the value of products is high enough

to cover their costs. Meanwhile, ODI has to employ and train sales person and technicians

quickly to ensure the proper distribution and application of products. So the profit margin will be

slim, requiring running business effeciently.

Alternative 3

Do not move into the poultry industry

Considering the limited financial and human resources ODI currently has, the company can

choose not to take risks, but selling its patents and technologies to more competent companies.

Cons

It will create one-time capital gain, but the cost is also huge--give up all huge potential profits.
Decision Criteria

These alternatives were put in a decision matrix found in the appendix. Each of the decision

criteria was weighed on a scale of 0-1 and each alternative was scaled from 1-10, where 10 being

the most suitable selection. The scores were then summed up to reach the main recommendation

(Exhibit 1)

Recommendation

Launched trial business with moderate price. This tackles sustaining financial foundations

problems, and enables ODI accumulate marketing experience and modify strategies based on

practice, without jeopardizing brand reputation in large scale. Alternative 2 and 3 either puts ODI

in risks or give up all potential profits. So Alternative one should be launched.

Implementation Plan

Phase I

This phase comprises the trial in the first geographical segmentation. Specifically, ODI will

invest in South Atlantic regions (please see Exhibit 1), and focusing on farms with 50,000 or

more chickens (please see Exhibit 2), since these farms’ owners are more willing to innovated by

new technology to improve production. At the same time, considering limited human resources,

it will be time consuming and costly if ODI focus on medium size or even small farms and

negotiate with farm owners. Additionally the price should be around $0.3 (please see

calculations in appendix). After launching business in those farms, ODI will accumulate profits,

which will be reinvested in marketing in Pacific regions and hiring more sales and technicians
for phase II. Phase I is expected to take 8 months in total, and reinvestment in marketing and

hiring will begin at the middle of phase I.

Phase II.

In the second phase ODI will expand its business into Pacific regions. The marketing strategies

can be adjusted according to practice, for example investing heavily on local newspaper and

radio channels. At the same time, price can be higher based on how well farmers educated, how

much value of products are perceived by farmers. ODI will keep focusing on marketing in large

farms. At the end of phase II, ODI will raise funds for further expansion plan. Phase II lasts 5

months.

Phase III: With funds raised, ODI will invest more in R&D since the patent is expiring. At the

same time, it will hire more sales and technicians to support the sales process. To improve the

products, with extra funds ODI can investigate the way to recycle lenses as well. This phase is an

ongoing process.

RISKS AND CONTINGENCIES

Farm owners reluctant to adopt the new technology: Although the potential benefits farmers

get from ODI products outweigh costs, still such implicit value is hard to perceived by farmers.

To mitigate this risk, it is suggested ODI invest more on training sales and technician, and at the

same time sacrifice some profits and invest in marketing, such as placing lenses for parts of

chicken population in a very low price, and convince farmers based on the fact of production

improvement. Since we target large farm, as long as farmers are convinced, the larger scale of

adoption will be secured.

stand out for a long time. ODI patent will expire in three years, furthermore after educating mass

customers, competitors entry the industry requiring less marketing costs. To tackle these

problems, ODI has to investigate more on R&D, reinforcing bonds with suppliers providing

exclusive use of lenses. What is more, the sales person and technician have to provide better

customer service or revisit farms and recheck lenses on a frequent basis to strengthen bonds.
APPENDIX:

EXHIBIT 1

Weight Launched Aggressively launch Do not move into

Lacking sustaining 40% 8 3 2

Lacking efficient 30% 7 4 3

Tricky pricing 30% 7 2 3

Total (out of 10) 100% 7.4 3 2.6

Exhibit 2
Exhibit 3
Exhibit 4