Chicken
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This case analysis examines the marketing/launch strategy of Optical Distortion Inc. (ODI) for its innovative new product Ð- contact lenses for chickens. This is an optical lens designed specifically to partially blind chickens. This causes the chickens wearing this lens to exhibit good behavior that can result in tremendous economic savings for the chicken farmers. This “good behavior” or simplistically put, advantages gained over the traditional method of “Debeaking1” are listed below:
Reduces “cannibalism”2 by eliminating pecking order (mortality rate reduces to 4.5% from 9%)
No loss of egg production. Debeaking trauma can result in loss of egg production which is avoided with the lenses
Avoid psychological trauma Ð- Deabeaking also results in trauma that can lead to loss of egg production as well as other non quantifiable ill effects.
Savings on feed. Debeaked birds can only feed from a trough 2 deep compared to a “lensed” chicken that can feed from a 1 trough resulting in less amount of feed needed. This also saves wastage of feed as debeaked chickens drool in their food resulting in food spoilage.
Same labor costs as a debeaking crew. Putting contact lenses in chickens costs $2.50 per hour for 220 birds, which is very comparable to debeaking with 225 birds debeaked in an hour.
There are some disadvantages for this new methodology that must also be considered.
Debeaking has been practiced for over 50 years and farmers may not want to abandon this practice in favor of a new one. So, the Endowment Effect may cause some farmers to be a bit resistant and not catch on to the economic advantages offered by the lens insertion right away.
Crews would need to be trained on lens insertion.
Large injections of capital needed to fund the project and set up new offices
Need to hire full time employees Ð- sales force and technicians as well as admin staff.
Demand for lenses is unknown
The above advantages outline the “Relative Advantages3” of the new lens compared to the traditional method of Debeaking. ODI needs to carefully weigh its advantages over the disadvantages in order to proceed with the rollout of its marketing strategy.
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1Cutting off the upper and lower mandibles at different lengths of a chickens beak is called Debeaking.
2Death of a chicken caused by pecking by dominant chickens
3 Rogers Factor#1: It is the degree to which an innovation is perceived as being better than the idea it supersedes.
Launch Strategy
ODI is a new firm with just two full time employees developing and marketing an innovative product Ð- an ambitious