For every inch reduction in feed in the trough the farmers save lb of feed per day for a flock of birds.
While the method of debeaking has proven effective, as mentioned, there are side effects. Since the lenses are not reusable, incentive per chicken is equivalent to the value of a pair of lenses.Similarly, Exhibits 1 and 3 also show that other south eastern South Atlantic states such as Florida, Alabama, Missouri, South Carolina and Arkansas also have a number of chicken and chicken farms. Thus, farmers are required to overstock the chicken feed, ultimately leading to food being wasted as a cost to the farmer. Since the cost savings for farms scale with size of the farms, and since larger farms allow ODI to better use their sales force, ODI should first target the largest farms with more than birds, then the ones with birds, and finally the smaller sized farms with birds in any given region. While the method of debeaking has proven effective, as mentioned, there are side effects. This would also allow the use of only 1 office rather than being spread across the country that would require multiple offices and in turn, more Regional Managers, Admin Staff, Shipping Clerks and rent. Should they be successful however, the potential for profits are enormous. The price of 1 dozen eggs is 53 cents which makes the price of each egg 4. Since ODI is confident of the product, they should expect every time they give a free trial of 1, pairs, they would convert them to a customer. For every inch reduction in feed in the trough the farmers save lb of feed per day for a flock of birds. Recommendation: The key to the recommended marketing Strategy is to choose one particular state and one market segment segmenting the market by farm size. I have attached a spreadsheet that would allow you to do the same. Dan could you do the relevant calcs and complete the following paragraph? The only condition would be that the 1, hickens should be separate from other chickens to demonstrate lowered mortality. This is essentially the reason for mortality rates being reduced to as little as 4. Since any extra egg laid by a bird does not have any marginal cost associated with it, the price of the extra egg produced represents the incentive of employing ODI lenses over traditional debeaking procedure.
You are on page 1of 4 Search inside document Analysis Value of ODI Lens In order to determine the perceived value of the ODI lenses to the farmers it is useful to list out the factors that they are likely to consider while comparing the ODI lenses with the current technology, i.
Of key concern to farms would be value proposition of this new product and process.
I have attached a spreadsheet that would allow you to do the same. This suggests that the net savings due to ODI lenses is: 2.
Indeed, with competitors able to Join within the next years, time truly is of the essence as failure to launch and be successful within the first year may mean never creating a change their ways, or may need a long time to, there the main dangers of not hitting the required targets quick enough that would be needed to recover the initial investment.