IntroductionOptical Distortion Inc. is a small new company, not yet in business, with cash assets of $200,000 and a patent for an innovative new product (the unique) which is a contact lens designed to impair the vision of chickens. . These lenses are used in place of debeaking. Lensed chickens are more likely to survive. They also eat more efficiently than beakless chickens. The key question facing ODI is “How to market these lenses?”. The analysis contained in this document provides recommendations to ODI on the marketing and pricing strategy to launch this new product. The strong points include a highly innovative product (the main competitive advantages compared to debeaking include savings resulting from the reduction of cannibalization, the elimination of trauma, better feed efficiency, no weight loss and no reduction in egg production, costs slightly lower than chipping for lens installation), tested with good results for a couple of months on farms in California and Oregon, no loyalty problems, trust from venture capital markets, patent protection and licenses for three years (keeping potential competition at bay), time plan (introduction in at least one region in spring 1975 and nationwide distribution at the end of 1997 at the latest), long-term license from New World Plastic for the exclusive use of hydrophilic polymer for non-human applications, marketing strategy (additional service - technical to follow up on sales, to ensure that the lenses are used in such a way as to maximize the benefits for the farmer, sales force ¡V one person per 80 farms and one technical representative For every five sellers, price - $0.08/chicken as incremental cost to the farmer; the benefits should be explained to farmers; have two principles in mind: don't start low cost, expand...... middle of paper...... ¡V Break-even point 1975 Total chicken population 457 Chickens on farms > 10,000 chickens 365.6 Rate penetration 2.18925% Market Share 8.00 Cost analysis (all expenses in thousands) Total chickens served (millions) 8.00 Headquarters Expenses 73.64 Research and Development Expenses 250 Advertising Expenses 100 Number of Regional Offices 1 Regional Office Expenses 196 Number of Sales Representatives * 1 Sales Representative Expenses 40 Number of Technicians 1 Technical Expenses 35 New World License 25 Cost of Lenses 2 56,1247 Cost of Installing Lenses 266.80 Number of new molds a injection 2Injection mold costs 24Order and shipping management costs 13.45Total costs 1280.00Average cost for a box of 250 lenses 39.98Revenue forecast (all numbers in thousands)Request for 250 boxes of lenses 32Price per box 40Total revenues 1,280 .00 Opera margin 0.00 Price per pair ($) 0.16