In an attempt to reduce cannibalization among chickens on chicken farms, ODI a new company, was formed to market an agricultural innovation - (Contact lenses for chickens). ODI intends on marketing their new product to chicken farmers who are not familiar with the product and have been using the same method of de-beaking for 50 years.
I recommend that ODI perform the following tasks to determine if they can market these contact lenses successfully:.
1) Define the target market, market segmentation, size and characteristics.
2) Perform business analysis including Break Even Units and Break Even Sales to determine whether marketing the lenses will be profitable.
3) Develop a marketing strategy plan to introduce these lenses to the target market.
4) Identify the characteristics of the consumer adoption process to determine how they can attract early adopters.
PROBLEM DEFINITION.
Once ODI determines that this product will be profitable they need to determine HOW to market these contact lenses to chicken farmers. There is currently no competition because the lenses have been recently developed, however, marketing this product to the chicken farmers will be difficult. .
ANALYSIS.
ODI wants to directly sell their new product to chicken farmers, their target market. Managers at ODI see the market as consisting of three segments "small farms (10,000 of few birds), medium farms (10,000-50,000 birds), and large farms (over 50,000 birds). Because Garrison, president and CEO of ODI, believes that a farm would have to have at least 10,000 birds to be profitable, the market segment should be limited to the medium and large farms. Mr Olsen, marketing V.P. of ODI, has decided to enter the market via region-by-region roll-out beginning in California. This was a good decision for Mr. Olsen because it is estimated that by the mid 70's eighty percent of the chicken population would be on three percent of the US chicken farms.