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Copy of Optical Distortion, Inc.

International Marketing
by

Aysu Nagiyeva

on 16 March 2014

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Transcript of Copy of Optical Distortion, Inc.

Conclusion
During 1974
Cannibalism among chickens
Solutions to cannibalism
A self-selected ranking of chickens resulted in a complete
peck order that was the
result of the birds being able to identify other birds. Consequently dominant and submissive chickens encountered which eventually led the way for cannibalistic behavior. Cannibalism varied with the breed of the chicken, and the more productive strains tended to be more cannibalistic.
Debeaking
$0.25
Monday, March 16, 2014
Team 3
ODI lenses
Company background
4P's
- invented in 1965 in Oregon
Optical Distortion, Inc
- was issued a U.S. patent in December 1969
- obtained a long-term license from New World in 1973
- irritation problem was eliminated by making the lenses of a soft plastic
- under the terms of license obtained 3 years exclusive use of hydrophilic polymer
accounted for 25% of the US chickens.
ODI lenses
vs.
mortality
feed
labor
egg production
mortality
feed
labor
egg production
0.108
0.216
7.04
6.837
0.034
0.033
0.099
---
Cutting off chicken's beak at different lengths.
A bird wearing the ODI lens had its depth perception and visual acuity greatly reduced.
0.108
0.203
0.001
0.099
savings
P
P
P
P
roduct
rice
lace
romotion
STP
S
T
P
Aysu
Thanks for the attention.
Aysel
Elçin
Goshgar
Xalis
Nagiyeva
Eynullayeva
Abdul
Mammadli
Mammadov
SWOT
S
T
O
W
Estimation of fixed and variable cost
variable cost
fixed cost
manufacturing of lenses
injection cost
0.032
0.008
0.00168
plastic box
filling cost
order processing
box cost
= 0.03448
0.10
0.14
0.18
/250
payment to New World
office and warehouse
headquarters expense (assuming 20 million pair)
salesman
technical representatives
advertising and promotional
trade shows
$25000
$196000
$184000
$280000
$70000
$100000
$100000
total fixed costs
+
$955000
*new innovation
*flock mortality reduced
*having exclusive license of years
*reduction in the farmer's feed and labor costs

*not reusable
*unawareness of the farmers
*difficulties to market to smaller farms
*being dominant in the market for 3 years
*expansion toward the South Atlantic region
*high competition after the expiration of the license
*price decrease because of increasing competition
is the only lenses made for non-human purposes.
eatures
made of hydrophilic polymer
have red tint
distortion built into the crown
slightly lighter than human lenses
region-by-region rollout, beginning in California;
each salesperson cover 80 farms;
one technical representative for each five salesperson
monthly advertising in the eight leading poultry publications;
participation in the most important industry trade shows;
promotion on a national basis up to 2-3 years
in geographic terms Pacific and South Atlantic regions are the largest markets
- only producer of contact lenses but still has to introduce its product in the market
- there will be no differentiation at the moment
small farms would not be available if ODI has a wish to have intensive sales
Break-even
Quantity =
FC
(
P
- VC)
$
units
income
costs
.
break-even point
Q
=
(
P
- 0.03448)
= $0.04775 (per pair)
955000
=
.
The break-even at $0.25 is going to be 4431143 pairs of lenses which seems achievable since the target is 40 million pair.
pricing decision
price ceiling
price floor
$0.25
*competition
*risk
*preemption
*corporate objectives
*low level of liquidity induced by
limited resources
?
=
955000
(0.25 - 0.03448)
= 4431143
break-even quantity = 4431143
Break-even
Quantity =
FC
(
P
- VC)
$
units
income
costs
.
break-even point
Q
=
(
P
- 0.03448)
955000
=
?
0.411
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