...Optical Distortion, Inc. HBS Case Study 9-575-072 Marketing Management MKT 6301.002 – Fall 2012 As of 1974 the chicken population in the US is already in excess of 400 million birds, with slow but steady growth expected through 1980. Given that fact that a great many of these birds live in tight quarters on very large chicken farms, a means of combating the chicken’s natural instinct to peck other chickens is needed. Pecking can actually lead to high mortality rates in flocks (cannibalization), which in turn raises the costs of farming. Debeaking has been used for some time with good results, but it has its own set of drawbacks. The lens developed by Optical Distortions, Inc. (ODI) holds the promise of reducing the threat caused by pecking, without some of the issues associated with debeaking. The specific advantages of these lenses will be discussed in the following report, as will a plan for marketing this new product. By permanently inserting a pair of sight distorting lenses into the eyes of an egg-laying hen, studies have shown that cannibalization can be reduced from 9% to 4.5%. Moreover, feed loss due to “billing” is substantially reduced relative to debeaked birds, allowing for much greater efficiency in feed consumption (less waste). Finally, given that lens insertion does not inflict the same trauma that debeaking does, egg production is not adversely affected. Given the above advantages, it is expected that farmers could increase their profit...
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...Introduction Optical Distortion, Inc. (ODI), is a small, new company that has developed contact lenses designed to impair the vision of egg-producing farm chickens. This development came after an accidental discovery that partially blind chickens demonstrate more manageable and productive behaviors that are valuable to chicken farmers. Market Trends As within many industries, the poultry and egg production market has evolved dramatically in the last century— from small backyard barnyards to today’s high-production farms of more than 2.5 million birds. Due to the varied demands and operations necessitated by this current, broad spectrum of customers (here, chicken farmers), the current market is best understood by segmenting it first by flock size. As shown in Exhibit 4 of the case study, we see the percentage growth (decline) of each flock size segment as it relates to farm size and chicken count from 1964 to 1996. Based on this data, farms with flock sizes less than 10,000 chickens have dramatically reduced in this time period while farms with flock sizes larger than 10,000 have consistently grown in each of the four high-volume segments. Additionally, the market data also demonstrates a significant progression of concentration both regionally as well as in the nation’s number of industry producers. In 1974, 80% of the laying hens in the United States were housed in just 3% of the country’s chicken farms. Regionally speaking, the farms have evolved into concentrations...
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...Optical Distortion, Inc. (ODI) is the world’s first company to introduce contact lenses for chickens. These lenses offer farmers a unique cost saving opportunity and are more humane and efficient than the current de-beaking method. ODI, with help from New World Plastics has developed this commercially viable technology to reduce cannibalism by inducing astigmatism. With a patent holding off competition for at least three years, ODI needs to decide how to price contact lenses to ensure high adoption and profitability which will fuel ODI’s ability to circumvent competition through further investment in R&D – a key requirement to be able to establish themselves as a multiproduct, multimarket company which can provide effective service anywhere in the country. ODI should initially target Large Farms with 100,000+ birds with this product at a price of $0.16/pair because this contact lens technology yields the following superior results versus current debeaking method: greater reduction in cannibalism by 4.5%, zero chicken traumas, no risk versus medium risk with de-beaking, and a reduction in feed costs. There are several segments within the poultry industry – Small, Medium, and Large farms characterized by 10,000 or less birds, 10,000-50,000 birds, and 50,000+ birds, respectively. Based on the case data, the US Poultry industry is consolidating at a rapid rate. For instance, in 1964, 1.2M farms represented 38.3% of the entire chicken industry and managed 343M birds. Five years...
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...Ekonomski fakultet u Sarajevu Katedra za Marketing Editors: dr Nenad Brkić Emir Agić Optical Distortion, Inc. (A) U jesen 1974. godine, Daniel Garrison, predsjednik i glavni šef korporacije Optical Distortion, Inc. (ODI) zamolio je Ronalda Olsona, potpredsjednika marketinga, da razvije marketing plan za ODI-jev novi i jedini proizvod – kontakt leće za piliće.1 Dok su se kontaktne leće kod ljudi uobičajeno koristile za poboljšanje vida, leće razvijene od strane ODI korporacije napravljene su da djelimično oslijepe piliće. Garrison je objasnio: Kao i većina drugih velikih otkrića, koncept našeg proizvoda je slučajno otkriven. Godine 1962. farmer koji je uzgajao piliće u Arizoni suočio se sa ozbiljnim problemom: jedan broj pilića imao je mrenu na očima. Farmer je odlučio da odvoji bolesne od zdravih pilića. Kasnije se pokazalo da odvojeni pilići jedu manje i da se o njima lakše brinuti. Specijalista za perad koji je posjetio farmu, bio je nemalo iznenađen kada je upitan da li postoji način kojim bi vještački mogli oslijepiti i zdrave piliće, tako da imaju otprilike isti stepen vida kao i oni sa mrenom. Nije postojala mogućnost da se genetski ili uz pomoć hemijskih sredstava pogorša vid pilića, ali pilići koji bi nosili ODI-jeve leće imali bi dovoljno smanjen vid, tako da se ponašaju na način koji je farmer iz Arizone priželjkivao. Ovo bi imalo važne ekonomske implikacije za farmere. Do kraja 1974. godine ODI leće su testirane na jednom broju farmi u Kaliforniji i Oregonu i...
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...For the three types of chicken farms, the appealing and unappealing characteristics of using ODI contact lens are presented as below. When it comes to appealing characteristics, the three types of chicken farms are the same: less cannibalism, less feed cost, and less the temporary weight loss and the retardation of egg production. From the perspective of cannibalism, which is originally 25% showed in experience, flock mortality is reduced to an average of 4.5% when ODI lens are used . On the contrary, the debeaking makes the mortality for cannibalism from 25% to only 9% , which is higher than contact lenses used. In other words, farmers can save more 4.5% (9% minus 4.5%) chickens in their farm. On the other words, farmers can save $2.40(price of per hen)*4.5%*the number of chickens in the farm. From the perspective of less feed cost, the debeaking chicken only can eat the feed in the trough at least 3/8” deep, while the ODI lens used chicken only can eat the feed in the trough below 3/8”deep. At $158 per ton for chicken feed, this would represent considerable annual savings, especially for large farms. From the perspective of less the temporary weight loss and the retardation of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs. When it comes to unappealing characteristics, the details are as below. Farm Types | Unappealing Characteristics | Small Farms | Labor cost | Lens cost | The number of birds are too small...
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...Case Analysis Optical distortion, Inc. Presented by Donnette Russell Marketing Plan Table of Contents Executive Summary 3 The Challenge 3 Situation Analysis 4 Market Segment 4 Alternative Marketing Strategies 4 Selected Marketing Strategy 4 Short and Long Term Projections 4 Conclusion 4 Executive Summary Optical Distortion, Inc. was incorporated in 1966, after an innovator by the name of Daniel Garrison stumbled upon an opportunity to enhance the output of common chicken egg production by inserting a form of contact lens that would blur, or distort the vision of the producing bird just enough to maintain optimal production while making the handling of these creatures easier. Based upon observations of a flock of chickens in Arizona which were afflicted with cataracts and separated from the remaining flock, it was noted that not only did these birds consume less food while retaining the same level of production as the remaining flock, but the ease to which handling the birds increased to the point that instead of curing the afflicted birds, the farmer requested to have his remaining flock “infected” with the same visual distortion. Through trial and error, ODI was ready for implementation of the lenses by 1973 with high hoped and great expectations. The Challenge As with any new product, multiple challenges arise throughout the creation and development process, which include, but are not limited to the product itself - insuring...
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...9-575-072 REV: APRIL 14, 2009 DARRALL G. CLARKE Optical Distortion, Inc. (A) In late fall 1974, Daniel Garrison, president and chief executive officer of Optical Distortion, Inc. (ODI), had asked Ronald Olson, marketing vice president, to develop a marketing plan for ODI’s new and only product—a contact lens for chickens.1 While contact lenses serve mainly to improve human eyesight, the lens developed by ODI was made to partially blind the chickens. Garrison explained: Like so many other great discoveries, our product concept was discovered quite by accident. In 1962 a chicken farmer in Arizona had a flock of chickens that developed a severe cataract problem. When he became aware of the problem, he separated the afflicted birds from the rest of the flock and subsequently observed that the afflicted birds seemed to eat less and were much easier to handle. So dramatic was the difference that a poultry medical detailman visiting the farm, rather than being asked for a cure, was asked if there was any way to similarly afflict the rest of the flock. It has not proved possible chemically or genetically to duplicate the reduced vision of the chickens, resulting from the cataracts, but a chicken wearing the ODI lenses has its vision reduced enough to obtain the good behavior the Arizona farmer observed. This behavior has important economic implications for the chicken farmer. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon ...
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...9-575-072 REV: APRIL 14, 2009 DARRALL G. CLARKE Optical Distortion, Inc. (A) In late fall 1974, Daniel Garrison, president and chief executive officer of Optical Distortion, Inc. (ODI), had asked Ronald Olson, marketing vice president, to develop a marketing plan for ODI’s new and only product—a contact lens for chickens.1 While contact lenses serve mainly to improve human eyesight, the lens developed by ODI was made to partially blind the chickens. Garrison explained: Like so many other great discoveries, our product concept was discovered quite by accident. In 1962 a chicken farmer in Arizona had a flock of chickens that developed a severe cataract problem. When he became aware of the problem, he separated the afflicted birds from the rest of the flock and subsequently observed that the afflicted birds seemed to eat less and were much easier to handle. So dramatic was the difference that a poultry medical detailman visiting the farm, rather than being asked for a cure, was asked if there was any way to similarly afflict the rest of the flock. It has not proved possible chemically or genetically to duplicate the reduced vision of the chickens, resulting from the cataracts, but a chicken wearing the ODI lenses has its vision reduced enough to obtain the good behavior the Arizona farmer observed. This behavior has important economic implications for the chicken farmer. By the end of 1974 the ODI lens had been tested on a number of farms in California and Oregon ...
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...MKTG 701 CASE STUDY 1 Optical Distortion, Inc. Alexandra Generales & McCown Bridges In 1962, Ronald Olson, a farmer in Arizona, found a strong correlation between poor eyesight in chickens and a decrease in the amount of food eaten and their mortality rate due to cannibalism. Olson was so impressed by his findings that he began to seek a way to intentionally impair the vision of his chickens, so as to duplicate the results he found. Twelve years later, Olson, along with his Optical Distortion, Inc. business partner, Daniel Garrison, tested and marketed a product that they had developed: contact lenses for chickens. While it may sound unconventional, these contact lenses provide a needed alternative for farmers seeking to decrease chicken cannibalism without the negative effects of the alternative, debeaking. Chickens, like many animals, have a social hierarchy that is adhered to by all members of the flock, called a peck order. Pecking can occur if a submissive bird enters a dominant bird’s territory, and submissive birds are pecked immediately if they raise their heads. Pecking can cause the submissive birds to eat less food and thus produce less eggs. Pecking sometimes continues until the chickens become cannibalistic. Cannibalism amongst chickens is higher when the birds are kept in cages and thus becomes a major concern for farmers. According to our farmer analysis the cost of debeaking per 10,000 chickens...
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...OPTICAL DISTORTION, INC. ESTRATEGIA DE MARKETING RODRIGO DE LA MAZA V. SECCIÓN N8 CONTEXTO El caso presenta el desafío de la empresa Optical Distrotion, Inc en el desarrollo del programa comercial para el único y nuevo producto que esperaban lanzar al mercado. El consistía en unos lentes de contacto para gallinas ponedoras que les cegaban parcialmente la vista lo que daba como resultado el menor consumo de alimento y un manejo más fácil de estas debido a la eliminación de las jerarquías sociales y por ende del canibalismo que se producía en los corrales. Como muchas otras aves las gallinas son animales sociales y por ende tienen una jerarquía social que empieza a manifestarse y desarrollarse a medida que las aves crecen. Este orden social es el resultado de la capacidad de las aves para identificarse unas a otras, lo cual se demuestra por picotazos y luchas que establecen un orden social jerárquico. Mediante el reconocimiento de la cresta se podía establecer la jerarquía social ya que identifica la posición de la cabeza. Las aves dominantes llevan la cabeza alta en cambio los sumisos la mantienen baja. Si un ave sumisa levantaba la cabeza o entraban a un área donde vivían aves dominantes eran víctimas de picotazos que llegaban al canibalismo. Esto significaba que las aves sumisas estaban menos tiempo en el comedero y producían menos huevos. Adicionalmente el reemplazo de las aves muertas generaba otro problema por la alteración que se generaba en la jerarquía...
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...Optical Distortion Inc. – Questions for Discussion 1. What characteristics of the ODI contact lens are likely to make it appealing or unappealing to different types of chicken farmers? [If desired, this question can be rephrased to include a specific reference to literature on diffusion of innovations.] Appealing: Like many other fowl, the chickens are social birds and their society has a definite social structure. They establish a hierarchical social organization, though fighting and pecking after the birds reach sexual maturity. The comb on the head of chicken is a means of preserving the peck order, and a submissive bird raising its head too high would be pecked by one or more its superiors until its head was lowered. The more productive strains tend to be more cannibalistic, even sometimes had to put a sack over the extremely productive one. In order to reduce chicken mortality due to cannibalism , the chicken farmers use debeaking, which doesn’t interfere with the formation of the peck order but reduces the efficiency of beak as a weapon. The debeaking process make the chicken subject considerate trauma resulting in a temporary weight loss and the retardation of egg production for at least a week. The debeaked chicken would enter a permanent regression or own its deadly weapon again if the beak is cut too short or too long. Compare to debeaking operation, ODI contact lens which would cause cataract to poultry is the product to actually confront the cause of...
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...Optical Distortion, Inc. Optical Distortion, Inc. (ODI) is the world’s first company to introduce contact lenses for chickens. In 1965, the ODI lens were invented by Robert D. Garrison with the purpose to partially blind a chicken’s vision. The idea was founded by accident when a farmer observed that his blind chickens were much more well behaved than chickens who could see. In 1966, James Arnold, invested in ODI lens and formed a business with the Garrison’s. In the early stages of ODI lens, there was a problem of the lens not being able to stay in the chicken’s eye and their eyes would become red. By 1969, the company issued a U.S. patent when the retention problem was solved by making the lens a smaller size made of a plastic called, hydrophilic polymer. The hydrophilic polymer could be molded and in1973, Daniel Garrison contacted New World Plastics that controlled hydrophilic polymer and obtained a long-term license for the exclusive use of hydrophilic polymer for chickens. In exchange for New World Plastics to exclusively produce the polymer for ODI only, ODI, agreed to pay New World $50,000 and to only purchase the lens from New World. This exclusive contract secured ODI a competition advantage as the lens were the only of its kind at the time. At the same time, Daniel Garrison purchased 25% of ODI’s stock and became president and chief executive officer of the company. Ronald Olson because the vice president of marketing and both worked together effectively...
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...Index: |S. no. |Topic |Page no. | |1 |Abstract |5 | |2 |Introduction |6 | |3 |Methodology |7 | |4 |Liquid crystals |8 | |5 |Working Principle and operation |9 | |6 |Types of LCDs |12 | |7 |Advantages of LCDs |13 | |8 |Disadvantages of LCDs |14 | |9 |Applications of LCDs |16 | |10 |Discussions |19 | |11 |Conclusions |20 | |12 |References |21 | Abstract: Today we see items containing an LCD (liquid crystal display) everywhere. They are all around us -- in laptop computers, digital clocks and watches, microwave ovens, CD...
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...Cisco Systems, Inc. Supply Chain Risk Management Chuck Munson with María Jesús Sáenz and Elena Revilla Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2014 by Chuck Munson Published by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearsoned.com. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. ISBN-10: 0-13-375744-7 ISBN-13: 978-0-13-375744-6 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232)...
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...Cisco Systems, Inc. Supply Chain Risk Management Chuck Munson with María Jesús Sáenz and Elena Revilla Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2014 by Chuck Munson Published by Pearson Education, Inc. Publishing as FT Press Upper Saddle River, New Jersey 07458 FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, corpsales@pearsontechgroup.com. For sales outside the U.S., please contact International Sales at international@pearsoned.com. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. ISBN-10: 0-13-375744-7 ISBN-13: 978-0-13-375744-6 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Reprinted from The Supply Chain Management Casebook (ISBN: 9780133367232) by...
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