Acuvue Disposable Lenses
...ses, Vistakon is positioned strongly to capitalize and take advantage of many potential opportunities including: • Current strong U.S. market potential • Soft lens wearers represent 73% of total contact lens population • Potential to capitalize on conventional lens wearers by persuading them to try disposable lenses – this market represents 63% of total lens wearers • Current trends indicate increases in the general population wearing disposable lenses • Consumer data captured through distribution channels could be used in future direct mail programs to attract new consumers • Competitors delaying market entry because of fear disposable products would cannibalize their other products such as solutions and reusable contact lenses • Recent research indicating that convenience and comfort are the two main drivers of contact lens purchases Examination of the eye care industry and current behaviors of ECPs revealed the following threats facing Vistakon: • ECPs are not following protocol in emphasizing low cost per day for 1-Day Acuvue and some are even telling patients these lenses are the most expensive • Evidence suggesting that consumers do in fact perceive 1-Day Acuvue as the most expensive disposable lens • Limited advertising and promotion budgets could dampen expanded efforts in marketing Marketing Strategy Vistakon’s marketing strategy for 1-Day Acuvue disposable lenses is similar to its approach used for Acuvue lenses. First, the marketing team would utilize advertising and promotion strategies to increase awareness of 1-Day Acuvue. Second, its marketing strategy would encourage consumers to visit ECPs and then influence ECPs to sell 1-Day Acuvue lenses to the patients. ECPs were trained by Vistakon sales representatives to stress to patients the low “cost per day” benefits of 1-Day Acuvue disposable lenses. Target Market Strategy Vistakon targeted three types of consumers: conventional lens wearers who experienced medical problems, patients who stopped wearing conventional daily wear lenses, and existing conventional lens patients who may be attracted to the disposable lenses. Problem / Decision Statement Analysis Clearly, Vistakon has not yet capitalized on the full potential of the disposable lens market. Adding to the success of its Acuvue lens, Vistakon is positioned nicely to increase profit enormously with its new product launch of 1-Day Acuvue disposable lenses. However, the main problem facing Vistakon today is its current “low cost per day” positioning of 1-Day Acuvue. In my opinion, it is critical for Vistakon to reposition 1-Day Acuvue immediately by emphasizing its benefits rather than its cost to consumers. By requiring ECPs to sell 1-Day Acuvue based on its “cost per day” value strategy, consumers never become aware of the benefits that 1-Day Acuvue lenses bring to them. Consumer perceptions must be turned around so that patients clearly understand and are satisfied with purchasing a product that is comfortable, convenient, hassle-free, and a healthier alternative. My decision is based on the following evidence that supports consumer perceptions of 1-Day Acuvue as being the most expensive product on the market. • Based on the 1995 attitude and usage survey, 86% of ECPs cited that patients did not convert to 1-Day Acuvue lenses because of their high price • Test market results in Nebraska and Las Vegas revealed that approximately one third of ECPs were telling patients that 1-Day Acuvue lenses were more expensive than other brands • Actual annual costs of $690.50 place 1-Day Acuvue disposable lenses as the highest priced contact lens available on the market Alternatives Based on my analysis of the eye care industry, Vistakon’s current positioning and promotion strategies, and its financial standing, three alternatives exist to ensure the success of 1-Day Acuvue disposable lenses. Vistakon’s options include: repositioning 1-Day Acuvue lenses to ECPs, launching a new advertising and promotion campaign, or increasing incentives to consumers and ECPs for buying/selling 1-Day Acuvue lenses. Repositioning 1-Day Acuvue to ECPs One alternative to increasing profit is to ensure that ECPs understand 1-Day Acuvue disposable lenses are repositioned as a disposable lens offering “comfort, convenience, and a healthier alternative” to patients. Test market evidence supports the fact that convenience and comfort are the primary reasons patients purchase contact lenses. Currently, only 20% of ECPs are following standard protocols for delivering messages to patients regarding 1-Day Acuvue disposable lenses. With such a low percentage, Vistakon should focus its efforts on retraining and enforcing ECPs to deliver the correct message to patients 100% of the time. The main challenge is to convince patients of the benefits of 1-Day Acuvue. Launch New Advertising and Promotion Campaigns A second alternative for Vistakon is to launch a new advertising campaign. Since Vistakon is a high profile business in Johnson & Johnson’s professional segment and is currently a market leader in the contact lens industry with sales reaching $290 million, it is positioned strongly enough to convince J & J to fund additional advertising expenses for implementing a new campaign. As stated previously, it is critical for Vistakon to immediately change consumer perceptions regarding 1-Day Acuvue disposable lenses from a low “cost per day” strategy to a “comfort, convenience, and healthier alternative” strategy. This should be done before proceeding with a national launch of 1-Day Acuvue to ensure that consumers know the benefits of 1-Day Acuvue. Increase Incentives to ECPs and Consumers A third alternative to ensuring the success of Vistakon, is to focus on increasing incentives for ECPs and consumers to buy or sell 1-Day Ac...