Vista
... the following: • a national launch could not be appropriate given the test market results; • the ability to attract consumers to ECPs might not be enough effective; • Vistakon believes the success of 1-Day Acuvue depends primarily on how ECPs present the cost to patients; • the target market might not attract the right consumers; Increase of sales was not the only achievement of the company; a careful attention to production cost managed to have its gross profit increased from 60% in 1989 to over 75% in 1993. Marketing costs and distribution were halved from a 70% of sales and R&D where instead maintained with a stable funding of 10% of sales. Furthermore a unique decentralized organization structure provided an entrepreneurial environment in which Vistakon was always able to move quickly, effectively and timely without being absorbed by the corporate clogs of headquarter approval processes. Finally, J&J had invested $75 million plus developing propriety technology, building plants and absorbing losses until Vistakon became profitable; the reliability of their technology an production process gave the company the capability to manufacture large volumes at a cost of $0.53 per lens, building flexibility for distributors and ECP markups. Increase of sales was not the only achievement of the company; a careful attention to production cost managed to have its gross profit increased from 60% in 1989 to over 75% in 1993. Marketing ...