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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2149 |
Essay's paper body
Product cannot be reused.
Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.
Threats include farmers reluctance, competition, non-adequate pricing strategy, low trained salesforce and technicals, higher costs then forecasted.
Market Segmentation
There is substantial evidence in the case to suggest that ODI should segment the market based on flock size of the farms (small farms, medium farms, large farms with a clear tendency for concentration) and focus their marketing and sales strategy towards farms with more than 10,000 birds...
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As illustrated in Exhibit 4 of the case study, number of chicken farms with flock size less than 10,000 has vastly shrunk between 1964 and 1969. This trend has continued and it is estimated that between 1975 and 1979, 80% of the chicken population would be on farms (3%) with 10,000 or more birds. With limited resources and sales personnel it makes sense for ODI to characterize their served available market (SAM) as medium and large farms only and not focus on small farms at all...
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