Name of the case - Optical Distortion, Inc.

(A)

Group 15 - Palak Agarwal(2020PGP281), Mattez Singh(2020PGP235), Sharan

Saarsar(2020PGP390),Asmath RamaKrishna(2020PGP079),Anvita
Thakur(2020PGP056)

Problem statement:

The problem in the case is to transform the product idea of ODI lenses for chicken and
create it as a profitable brand for the company. The company needs to monetize this by-
chance discovery by establishing a target market, and appropriate marketing and
pricing strategy.

S: Product patent, Contract to prevent the supplier from supplying to other competitors
trying to enter the same market, first mover advantage, having required human capital
are all strengths.

W: Limited money and resources, beneficial only to large farms having 20k+ chicken
farms are weaknesses.

O: Industry is growing, customer need is high and now requires some innovation, no
direct competitors in the short term.

T: Competitors will emerge and may make better products

The product is innovative and helps people to reduce their costs. The value that
customer will be obtained by changing from the traditional debeaking to a new product
is considered.

Since it is a new product with no competitors, there will essentially be no Competitive

pricing. Higher contribution cannot be obtained as cost is minimal and hence we do not
go for Cost based pricing as well.

So we exploit the opportunity in the first 3 years because after that competitors will most
probably enter. We need to earn as much to invest in R&D in the future to become a
Multi-product company.

Recommendations:

The recommendations are made keeping in mind the current financial position of Optical
distortion. The strategic moves are restricted by the limited cash flow that Optical
distortion currently have. Some decisions need reevaluation based on the increased
operational ability in future as revenue and resources will be higher.

The current target market for contact lens (ODI) is limited to only California. In future
targeting a more wider market segment particularly addition of the areas outside
California will provide the firm to earn higher profit margins.

It is necessary for ODI to increase promotional expenditures which will appeal to wider
target audiences in the future. It will help them create customer’s interest in the product
thereby increasing the market share.