Marketing vistakon assignment

Consumers who have never worn contacts will be drawn to part-time use due to the convenience and simplicity and will expand the market without cannibalizing sales of Achieve or Survive. Many “ dropouts” will also convert to part-time use because over 75% discontinued using contacts due to discomfort and Inconvenience, the primary benefits of 1 Day Achieve. From the consumer’s perspective, at a low price there Is very little reason not to try 1 Day Achieve. The product is simple to use (no cleaning and travelers). II.

Visitation is Uniquely Positioned to Capitalize on this Segment and Threats from Competition are Minimal Visitation is better positioned than the competition to capitalize on the great profit potential of the part-time segment because its corporate resources are better aligned to serve this segment’s unmet needs of comfort and convenience. First, J&J’s large size gives its subsidiary access to substantially more capital than its competition. Creating high volume, low-cost, high- quality lenses requires large capital investment.

This pricing will increase awareness, trials and conversions across all segments by enticing “ dropouts” and “ never worn” segments to try and will help break the existing brand loyalties of conventional/disposable users. A low price will create goodwill among early adopters, increasing valuable word of mouth referrals and enabling Visitation to cut back on high-cost “ pull” advertising. While penetration pricing can reduce the “ quality’ image of brands, this threat will be minimized because of the differentiation value Visitation derives from its market-leading convenience and comfort.

This differentiation value will also enable Visitation to raise prices in the future without major threat of customer switching. Product features, lack of suitable substitutes for part-time users, and brand equity will help Visitation protect this new price position. Given a high volume, low-cost strategy, existing channels will change ever time. Retail stores will become more strategic than Esp. over the long run. Retail stores are better prepared to manage high turnover of product supply and are per lens (due to penetration pricing) and must make up the difference on volume.