- 1. Luxottica Grace Chang, Lara Kessides, Stephanie Lin, Brit Vezina
2. Background Luxottica Group S.p.A. 1961 founded in Italy 1971 contract manufacturer to independent producer Expansion into Eyewear 1980s introduced glasses as eyewear Luxottica created licensing agreements with high-end designers 1999 acquired Ray BanExpansion into Retail Chains 1995 U.S. Shoe Corporation (LensCrafters) 2005 Move into parts of Asia and Latin America Service and Welfare Programs 1988 OneSight 2009 Corporate Welfare Program in Italy 3. SWOT Analysis STRENGTHSWEAKNESSESStrong company with a variety of brands and retailers Large network that includes a broad range Powerhouse in terms of glasses and sunglasses Community welfare programs OPPORTUNITIESTHREATSCreate a stronger personal experience in shopping Utilize Social Media and digital platforms Continued international investments and emerging markets in Asia To be a more ethical company Due to the large variety, spread out too thin The high price of designer frames does not always correspond to the quality of the frame, compared to non-designer frames No convenient, personal online shopping experience Not all subsidiaries offer virtual try on High markups (frames not directly from manufacturer)Smaller and more personal boutiques Slow economic growth affects peoples disposable income Rising counterfeit market 4. Research Objectives To understand the consumers decision drivers and buying process in purchasing eyewear To analyze the role of various channels (i.e. in-store, online, etc.) To utilize social media based on the ndings To cover various aspects of the market share that Luxottica is missing out on 5. Research Methodologies Open-ended Questionnaire Google form One-on-one Interviews 2 prescription and 2 sunglasses Focus Group 5-person Secondary Sources Mintel, Newspapers (WSJ and NY Times) 6. Research Findings: Prescription Primary (Open-ended Questionnaire): The majority of the 34 respondents ages 18-34 choose designer brands when selecting their glasses frames The majority shop for prescription glasses in a store versus online-specically, retail stores. The majority do not use social media platforms for shopping purposes--but they do like to receive coupons.Secondary (Mintel): Millennial-aged prescription glasses wearers tend to be most inuenced by brand names, trends, and recommendations by others. Glasses purchases for women tend to be driven by appearance. Women also report that they have a harder time nding glasses that t their face the way they like. Consumers want and expect customized buying experiences. Prescription glasses wearers aged 18-34 are more likely than average to be inuenced by celebrity endorsers. 7. Research Findings: Sunglasses Primary (Questionnaire and Focus Group): The majority of the 23 respondents age 18-30 have purchased designer sunglasses. 4 out of 5 focus group respondents wear and shop for designer sunglasses on a regular basis. Ray Ban is the preferred designer brand of sunglasses. Popular channels include specialized sunglasses stores and department stores. Primary factors in purchase decision include brand, t, and price. Social media is not an ideal channel to receive promotions. Ideal experience includes good customer service and knowledge from store associates.Secondary Research (Mintel): Most important factors when shopping for sunglasses: they look good (69%) and they have a comfortable t (68%). A more personalized approach to sunglasses shopping experience will help shoppers. Major Sunglasses Trends: Ethical branding Warby Parker Education Innovative walk-through duty free stores Augmented reality Mobile application to try on sunglasses virtually Cool vending 8. Research Findings: One on One Interviews Prescription Majority of participants do not care about the brand Usually wear contacts No need for expensive glasses that are only worn at home Prefer in-store shopping Ability to physically try the glasses on Purchases glasses after the eye exam Utilizes websites to get deals on cheap frames Coastal.com (rst pair is free)Sunglasses Prefer to buy cheaper, non-designer frames Sunglasses are more likely to get damaged Dont wear them frequently (wont get enough use of them to be worth the cost) Not very concerned with designer name Enjoys having a variety of designs so usually purchases cheaper, non-designer pairs*Both sets of interviews suggest that users dont enjoy advertisements on social media unless they are searching for a specic deal or promotion. Interviewees are all heavy social media users, but like to be in control of what appears (i.e. ads or pop-ups). 9. Current Buying Process: Prescription 1) Need for prescription glasses or prescription sunglasses - Change in sight/vision 2) Get an eye exam from a doctor 3a) Purchase glasses from the eye doctor - OR 3b) Receive the prescription and take it to a third party vendor (boutique or online) 4a) If purchasing in a physical store: - Choose a few designs based on face shape, price, brand, etc. - Try them on and receive immediate feedback - Based on budget and favorability, purchase new pair of prescription glasses - Return to store when frames are ready and retry them on for any adjustments 4b) If purchasing online: - Choose a website based on promotions, word of mouth, internet search, and credibility - Choose a design based on visuals and provided measurements - Enter prescription - Receive via mail - Hope they t 10. Current Buying Process: Sunglasses 1) Need for sunglasses - New trend, replacing old pair, deal or promotion, want an additional style 2a) In store - Go to a boutique like Sunglass Hut or department store like Nordstrom, Saks Fifth Avenue - Choose a few designs based on price, style, brand, comfort - Purchase the pair that receives best feedback - Receive any adjustments - Take home immediately 2b) Online - Choose a website based on promotions, word of mouth, internet search, and credibility - Choose a design based on visuals and provided measurements - Purchase a pair based on information provided by the website - Receive via mail - Hope they t - If not, return according to the websites return policy 11. What Does It All Mean? Prescription Wearers Value: Personal experience: receiving expertise advice and suggestions, as well as opinions as to how glasses look on them. Brands that are sustainable and promote ethical practices. Sharing/Leasing/Renting Sunglasses Wearers Value: Excellent customer service. Knowledgeable sales associates. 12. Two Major Holes in the Current Online-Shopping Experience 1.Luxottica offers an augmented try-on experience for consumers shopping online--but they can only do so by downloading an iPhone/iPad/Android app. But what about consumers who dont have smart phones, or prefer to shop on the larger screens of their laptops/ desktop computers?2.Luxottica offers expert online chat advice explaining about frames, which are best for which facial shapes, etc. But consumers want opinions. The site lacks the personal advice for how the glasses actually look on those who try them on with the augmented tool. 13. How Do We Do It? 14. #1 Put the Augmented Experience On the Website Luxottica will allow customers the option of the augmented tryon experience on the brands actual website--as opposed to having to download a separate application in order to access the tool. Customers will be able to create a personal account on the website where they can save snapshots of the the glasses they tried on.KEY BENEFIT: Will lead to increased website trafc, and appease the consumer desire for an easy, convenient purchasing experience. 15. #2 Use Social Media to Fill in the Major Missing Link to the Online Purchasing Experience: Personal Opinion Polls The Process: Customers can embed the save photos of their augmented try-ons onto their social media platforms (Facebook, Instagram, Twitter) as an opinion poll: How do I look? If the customer hits a certain number of opinion polls (e.g., 50), they will receive a special coupon for the pair that they choose to purchase. 16. Social Media Opinion Polls: Key Benets With in-store shopping, for a customer to get opinions of how glasses look (aside from those from the employee) requires them to bring their friends/families along. Using their social media platforms, they can get hundreds of opinions without having to inconvenience anyone. Fullls the millennial demand for coupons and discounts. Will allow Luxottica brands to transcend social media and accumulate awareness. 17. Social Media Opinion Polls: How Do We Promote? Celebrity Promotion: A participating celebrity who is popular on social media trend (Cara Delevingne, Justin Timberlake, etc.) will select a few pairs of Luxottica glasses they want. They post the photos of their virtual try-ons frames onto their Instagram/Twitter/Facebook and ask their followers to poll their opinions. This will encourage people to visit the site and try the virtual reality try on. (See how the pair the celebrity is wearing looks on themselves.) Whichever pair the celebrity ends up choosing--followers who voted for that pair receive a special coupon for Luxottica eyeglasses. 18. Desired Buying Process Problem RecognitionInformation SearchRecognition of a need or wantSearching different business environments to receive expertise advice Evaluation of AlternativesPurchase DecisionPostpurchase BehaviorEvaluation of different products and brands (high customer involvement)Positive online feedback from social networks and experts leads to purchaseExpectations satised = trust in the brand 19. Thank You!