CasePilot Caso 1 -NuView Case While completing their third year of science at un
ID: 369394 • Letter: C
Question
CasePilot Caso 1 -NuView Case While completing their third year of science at university. Erka and Kurtis invented a new contact-lens colouring process they named Nuview. They did rotine market studies which found that 80% of those surveyed wanted to try NuView. Erika and Kurtis developed a business plan, obtained several new business start-up grants, and had their product medically tested, approved and registered One bottle of NuView contained enough solution for three months of normal contact lens use. As a result of consumer suggestions, NuView kept adding new colours and buyers could now choose from five different ones (red, green, blue, orange, and brown). To change eye colour a person would simply add two drops of NuView to each contact lens, wait five seconds, and the colour would last for 20 hours. With their $200,000 start-up grants, Erika and Kurtis had sufficient capital to lease a small plant, do some preliminary newspaper advertising, purchase the required manufacturing equipment, and hire a full-time production supervisor and a part-time office assistant. They also paid to have a company Web site built from which products could be ordered and the company marketed To date, about 10 percent of sales occurred on NuView's Web site. However, in the most recent company survey, Kurtis found that 95% of the students contacted said they would prefer ordering NuView over the Internet With their equipment and staff, they estimated they could produce up to 1000 bottles of NuView per eight-hour production shift. Production output ranged between 250-550 bottles and these targets were set by Erika during monthly production meetings regardless of actual sales or marketing research results. Recently, the production supervisor mentioned that there were increasing amounts of unshipped retailer returned NuView stacked in cartons throughout the plant and that he had now rearranged the production equipment several times to make room. Each bottle cost $4.00 to produce and was sold to retailers for $10.00 who in turn sold it to consumers for $20.00, which was also the price someone would by NuView for from the company Web site. During a routine Internet search, Erika discovered a news item about contact lens Mankebg dale #231-3427 26 33Explanation / Answer
yes, they need to reframe their strategies towards their production, promotion, pricing and place availability of the product. as of now they are doing good, but if they planned properly they may do better than this. the problem now existed is, they are not able to plan their production according to the demand from the market. they do not go for estimating market demand, they simply produce output constantly and daily. it leads them to stuck more unsold quantity of items.
when they new that some competitor is entering into the market, with free trial or demo, these people should focus on other promotional strategies. they need to increase kind of offers to customers, dealers and to the middlemen too. specially they need to focus on direct marketing channels and emarket. it helps them to get more profits than selling by a middlemen. if they offer this item directly, they can minimize the cost from $20 to $10 also.
for this they need to prepare strategies, they need to open franchisees, sub markets, own shops, and appoint sales people in the shop. do not assign targets to them, just sell the product, preferebly at $15 per each bottle. initially it occurs some additional fixed cost for leasing shop, rentals, sales people salaries, and other licencing charges. but later it definitely helps them to reach new highs in the market. the major benefit here is, they can get more profit than earlier stage. now the price of the product has been decreased, so, the demand will be increased if other things remain common.
on the other hand they need to focus on e-commerce, they need to tie-up with ecommerce gaints and offer their product through these middle men. it helps them to cover more market with little efforts.
these people are entreprenuers, who needs to take dared decisions in business. initially they may face some difficulties, problems and disputes, but later they can become a good plaer in their segment.