Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch. They are best known for their Acuvue 2 contact lenses, but are planning to launch Acuvue 3, which will provide 40% more moisture than Acuvue 2. The extra moisture will make the lenses more comfortable and cause less irritation. Vistakon has been in the new product planning process for a year. Currently, they are trying to determine the cannibalization rate of Acuvue 3. They believe that 30% of Acuvue 3 sales will come from Acuvue 2. Which stage of the new product planning process are they in?

a. Business Analysis
b. Concept Testing
c. Sales Strategy
d. Feasibility Screen
e. New Product Strategy

a. Business Analysis

Explanation:

Business analysis is the fourth stage a business undertakes when they are developing a product. It is at this stage that financial projections are made to see how feasible the product will be in the market. Marketing strategies are developed to effectively drive sales of the new product.

In this stage there is definition of the different requirements that needs to be met to achieve business goals and objectives.

Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch of Acuvue 3, which will provide 40% more moisture than Acuvue 2. They are projecting that 30% of Acuvue 3 sales will come from Acuvue 2.

a. Business Analysis

Explanation:

Business analysis is a step in the different steps of a new product development process where the business attractiveness of the product is evaluated. This involves reviewing the sales, costs and profit projections for the new product.

Vistakon is trying trying to determine the cannibalization rate of Acuvue 3, this means they are trying to determine the percentage of acuvue 3's sales that represents a loss of sales of Acuvue. This therefore indicates they are reviewing the sales projections of Acuvue 3, which is a process of Business analysis.