WMBA 504 Vistakon Case Analysis Brandon Pyle
Background: Vistakon, a premier supplier in the disposable contact lens (DCL) industry, is preparing to launch a
new product in the United States. An independent subsidiary of Johnson & Johnson (J&J), Vistakon’s sales have
increased exponentially to $290M during the previous six years as a result of their commitment to their core
competency of innovative technology. This technology allows mass manufacturing of quality lenses at reasonable
consumer costs relative to competing products in the DCL industry. Using this technology, Vistakon developed two
DCL offerings, Acuvue and Surevue, which maintain a 42% market share among leading soft contact lens
products. In 1994, Vistakon’s main competitors included Ciba Vision and Bausch & Lomb each with 21% and
23% market share, respectively. In an attempt to further increase revenue, Vistakon has invested $200M in their
newest product, 1-Day Acuvue, a daily DCL. Initial launches in test and regional markets have been positive but
the question remains; how should 1-Day Acuvue launch nationally to maximize the new product’s market success?
Task: Gary Kunkle and Bernard Walsh are requesting an assessment of the 1-Day Acuvue trial market data to
determine the ideal market penetration strategy. This includes: resolving the optimal customer segment, retail
pricing, and marketing strategy for product launch. Mr. Kunkle and Mr. Walsh require a memorandum of market
