Garman/forgue companion websiteluxottica frames direct

SITUATIONAL ANALYSIS

for Luxottica Group SpA

Group 25: Gurinder Singh, Josielene Avelar, Karo Jarajian Muhammad Asad, Nick Kerobyan, and Sarah Joynt

Abstract The Luxottica Group SpA, established in 1961, identifies itself as “a global leader in the design, manufacture

and distribution of fashion, luxury, and sports eyewear with high technical and stylistic quality." The company’s greatest success is attributed to its ever expanding vertically integrated business model.

However, this is proving to become a double edged sword for the glasses giant as continued speculation of its impropriety over monopolistic practices, price gauging, and breech of fair international trade

practices persists in the media. This analysis seeks to provide a systemic collection of past and present data on the company’s performance in an effort to critically access any market trends, forces, conditions

and influences that are most likely to impact suitable future marketing strategies.

TABLE OF CONTENTS Executive Summary.............................................................................................................................................. 1

Company PROFILE................................................................................................................................................ 2 Missions, Strategies and Objectives ........................................................................................................... 4

Competitors ............................................................................................................................................................. 5 Competitor SWOT Analysis for Frames Direct (FD) ........................................................................... 5

Frames Direct strengths: ............................................................................................................................... 5

Frames Direct Weaknesses: .......................................................................................................................... 6

Frames Direct Opportunities: ...................................................................................................................... 6

Frames Direct Threats: ................................................................................................................................... 7

Competitor SWOT Analysis for Warby Parker (WP) .......................................................................... 7

Warby Parker Strengths: ............................................................................................................................. 7

Warby Parker Weaknesses: .......................................................................................................................... 8

Warby Parker Opportunities: ...................................................................................................................... 8

Warby Parker Threats: ................................................................................................................................... 8

Gaps in The Market & Trends at Industry Level: .................................................................................. 9

Customers ................................................................................................................................................................ 9 Costumer Characteristics .............................................................................................................................. 9

Market size and Potential Growth ........................................................................................................... 10

Costumer Wants and Needs ...................................................................................................................... 11

Distribution Channels .................................................................................................................................. 11

Motivation to buy the product .................................................................................................................. 11

LUXOTTICA GROUP S.p.A: SWOT Analysis ............................................................................................... 11 Luxottica Internal Strengths: .................................................................................................................. 12

Luxottica’s Internal Weaknesses ............................................................................................................. 13

Luxottica’s External Opportunities ......................................................................................................... 14

Luxottica’s External Threats ..................................................................................................................... 14

The Future: Marketing & Product Objectives ......................................................................................... 14 Current Market ............................................................................................................................................... 15

New Product Recommendation ............................................................................................................... 15

Target Market.................................................................................................................................................. 16

Perceptual Mapping Studies by Subcategory ..................................................................................... 17

Works Cited .......................................................................................................................................................... 18

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EXECUTIVE SUMMARY The Luxottica Group S.p.A (Lux.) dominates the ever expanding eyewear market as the single

largest private sector producer worldwide. The company specializes in all things eyewear;

mostly sunglasses and prescription lenses/frames, however they also recently began

dabbling in vision care insurance (Marketline, 2016). The company experienced immediate

post-launch success and became the go-to source for all things eyewear, quickly spreading

their tentacles across international boundaries. Now they hold a supermajority of the

eyewear market globally. Given that Global Market Insights predicts the “Eyewear Market

Size [is] forecast to reach USD 165 Billion by 2022,” the future looks very bright for Lux.

(Global Market Insights, 2016). Subsequently, the company is ideally poised to take

advantage of this prediction and rests at a juncture where critical market analysis to identify

which market segments Lux. will target, in addition to a marketing plan that ensures their

slice of this future growth is secured, is a timely matter.

While the Lux. storyline may be that it is the quality of the glasses they produce, and their

ability to “make people feel good about themselves” that has played a major role in

company’s success ("Company Profile", 2016). There appears to be another more prominent

reason why Luxottica wields so much influence in the eyewear market. More succinctly, it is

because none of their products are marketed under the Luxottica brand. This means the bulk

of the company’s eyewear product consumers have never heard the name "Luxottica" before.

In many ways, this has shaped the firm’s growth because it has shielded the public’s

awareness from the advantages, Lux. enjoy as an oligopoly at best – monopoly at worst.

Even Lux. assert their current success and “One of the competitive advantages underpinning

the Group’s past and future successes” is attributed to the goals met by this broad reaching

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vertically integrated business model it “has built over the decades.” A model which they

intend to continue building on ("Company Overview", 2016).

This observation is wildly accurate when the vast array of well-known individual subsidiary

brands (SBU’s) that Lux. produces is taken into account. By implementing the complex set of

licensing agreements, global distribution networks, retail stores, and e-retail platforms it

gives the appearance each are in competition with one another (Marketing, 2013). The

brilliance of this business model has proven to be very profitable for Lux. as they can

effectively set the prices across all segments of the eyewear industry. On the other hand, this

pricing practice has started to undermine the firm’s reputation. Outside forces such as

competitors fighting for market share by undercutting on price, a steady stream of bad press

on Lux., and an antitrust ligation suit raised in France about unethical pricing practices in the

European Union (EU) are proving to be threats that must be monitored.

Best marketing practices would suggest that the more exciting and innovative Lux’s new

product developments are -- products that truly exemplify “value-added benefits” to the

user, then the easier the high-price positioning becomes to overlook. By supporting these

must-have product releases with effective marketing initiatives that demonstrate corporate

social responsibility, such as the expansion of Lux's “Onesight” charitable program, then the

more likely Lux. can overcome the taint of these niggling unethical practices and continue

beating-out their rapidly rising competitors (Axelrad, 2009).

COMPANY PROFILE

Established in 1961 by Leonardo Del Vecchio, in Agordo Italy, Lux are responsible for;

designing, manufacturing, distributing, and retailing fashion, luxury, sports, and specialty

prescription and performance enhancing eyewear products. It is widely published that their

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reputation is based on an assurance of quality across their diverse product lines. As stated

on their company website “One of the Group’s competitive advantages is the vertically

integrated business model built over the years, covering the entire value chain: design,

product development, manufacturing, logistics, and distribution” ("Company Profile", 2016).

While Lux. cannot not attribute its successes to manufacturing anything under its own label,

it carries a plethora of renowned branded eyewear lines. Including, but not limited to; in-

house brands such as; Ray-Ban, Oakley, and Persol, Vogue, Arnette, Killer Loop, Revo,

Sferoflex, and T3. They also produce multiple high-end private labels under license for top

designers like; Armani, Chanel, Ferragamo, Bulgari, Byblos, Genny, Ungaro, Moschino, Anne

Klein, and more. But they don’t stop there..., the Lux. network is spread out over; 29

company-owned branches and 90 independently operated branches, that supplies the

company’s product “to more than 115 countries. They are complemented by an extensive

retail network of over 7,200 stores, with LensCrafters and Pearle Vision in North America,

OPSM and LensCrafters in Asia-Pacific, GMO in Latin America and Sunglass Hut worldwide.”

Luxottica’s product design, “development and manufacturing take place in its production

facilities in Italy, three factories in China, one in Brazil and one facility in the United States

(US) devoted to sports and performance eyewear. Luxottica also has a small plant in India

serving the local market” ("Company Profile", 2016).

If that is not enough, Luxottica not only owns retails stores in the US, such as the as the

aforementioned Sunglass Hut, Lenscrafters, etc., it also owns the insurance companies that

approve the optical glasses of people purchasing their prescription glasses in-store. Thus it

logically follows that an article Luxottica’s Success Story cites; “Luxottica is the largest

provider of eyewear and sunglasses in the world…. It controls more than 80% of the world’s

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leading eyewear brands” (2016). Owning 80% of the world's eyeglasses market could be

considered monopolizing the eyewear business by any reasonable business standard.

Missions, Strategies and Objectives

In the establishment of their missions and goals, the company identifies their mission is to

“improve the well-being and satisfaction of its customers while simultaneously creating

value for its employees and the communities in which the group operates.” An ethically

sound rather "utilitarian-approach," but one that would appear to be at odds with current

public opinion considering the recent bad press for price issues and the ongoing antitrust

action. Such external threats could potentially overshadow Lux’s stream of success if they

continue to build momentum. A disparity best shut-down quickly to regain consumer

confidence and meet Lux’s core objectives. Which is to make their customers a priority by

seeking to identify what customers prefer at work and at-play, then delivering the most

innovative highest quality version of that ideal to the end-consumer (Luxottica Group, 2016).

To meet these objectives “the company’s strategy is to continue to expand in the eyewear

and eye care sector by growing its various businesses, whether organically or through

acquisitions” ("Company Overview", 2016). When initiating the development of their

products they research and purchase quality parts that will deem the final product a success

when presented to consumer audiences. In an article written by Lux representative, Localita

Valcozzena, she states; “We at Luxottica aim at protecting the eyes and enhancing the faces

of men and women all over the world, by manufacturing and selling ophthalmic eyewear and

sun wear characterized by their high technical and stylistic quality, in order to maximize our

customers' wellbeing and satisfaction” ("Company Overview", 2016).

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COMPETITORS

Luxottica has two main competitors; Frames Direct and Warby Parker. Both firms are

chomping at the bit to snare a good portion of Lux’s business and take a greater share of the

predicted growth the eyewear market is expected to see over the next few years.

Competitor SWOT Analysis for Frames Direct (FD)

FramesDirect.com (FD) based in Austin TX, launched their e-retail website in 1996. They

were the first to offer optical glasses online and as a result, are considered one of the leading

online eyewear retailers today. The company currently operates in 140 countries worldwide

(About FramesDirect.com). FD’s parent company Essilor, produces a number of products

and is quoted on the EU stock exchange (Strong growth in revenue).

Frames Direct strengths:

FramesDirect.com offers more than 250 brands of sunglasses each brand with a unique set

of style and colors options. Accordingly, the company carries more than 100,000 sunglasses

on the website. Looking through this many frames can be very annoying and stressful to a

customer, but surprisingly the website offers a very user-friendly shopping experience. A

great advantage that online retailers have over retail stores is their low operating costs.

Some significant costs that are not incurred; rent, staffing, and utilities.

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Frames Direct Weaknesses:

The FramesDirect.com shopping experience is very user-friendly, but like most online

eyewear retailers it does not have experts to walk a customer through a purchase. This raises

the next problem too many consumers are having. Buying glasses online that many not fit

properly without trying them first. An advantage that Lux’s retail stores hold over FD’s sales.

Further, FD ships its products to 140 countries, but international shipping costs and

estimated delivery periods can be a problem to many customers and leave them unsatisfied.

FramesDirect.com shopping experience is very user friendly, but like most online eyewear

retailers it does not have experts to walk a customer through a purchase. This leads to the

next problem many consumers are having, which is buying glasses online that fit properly

without trying them on. An advantage that Lux’s retail stores hold over FD’s sales. Further,

FD ships its products to 140 countries, but international shipping costs and estimated

delivery periods can be a problem to many customers and leave them unsatisfied.

Frames Direct Opportunities:

Consumers are becoming more “digitally mature” by the day; therefore, one opportunity for

the company is to keep up with the current industry trends. For example, developing a

mobile app that consumers can use to try on the glasses FD carries. Perhaps, an app similar

to Snap Chat filters that take selfies with glasses accessories. FD carries Oakley and Maui Jim

products but does not export them Internationally. Nor do they ship Adidas and Wiley X to

European addresses. These restrictions are impacted by licensing agreements between the

companies and geographic territories, however as FD renegotiate to expand into these areas

their market share will increase significantly and affect Lux. sales.

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Frames Direct Threats:

While Lux. has its loyal customers, the market also has its limits. Thus an increase in the

number of online eyewear stores can hurt Lux. sales and decrease profits. Another threat to

FD is Luxottica’s vertical integration strategy. This gives Lux. the power to directly control

the entire development, manufacture, and distribution platforms. Effectively Lux. better

maximizes efficiency, ensures high quality, and optimizes time and costs (Business Model).

Competitor SWOT Analysis for Warby Parker (WP)

WP launched their business when their website went live in 2010. Today they own and

operate 35 retail stores across the U.S. and Canada. The New York based continues to grow

by adding investors such as American Express and Mickey Drexler. According to Wall Street

Journal, the six-year-old company was valued at $1.2 billion in 2015, (History | Warby).

Warby Parker Strengths:

One of the greatest advantages of Warby Parker is that it designs, manufactures, and sells

frames 70% cheaper than Luxottica (The Pros and Cons). Also, another advantage of the

brand is that it is one of the only carbon-neutral brands. The “Go Green” movement is at its

peak right now and encouraging a low carbon economy is what mainly separates WP from

its competitors. Many customers have a hard time finding glasses online that fit properly, but

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Warby Parkers “Home Try-On” program will satisfy even the pickiest customer. Customers

can order five frames for a five-day-trial for free and exchange the frames as many times as

they like, until they find the right pair for them (History | Warby Parker).

Warby Parker Weaknesses:

The company has a very low investment in marketing, which can be cost effective, but slow

down the company growth. Another weakness of WP is that it only operates in the U.S. and

Canada, and has not expanded to foreign markets. The company currently owns and operates

35 stores, which is relatively small compared to the market size in the countries it operates.

Warby Parker Opportunities:

Some of the weaknesses of the company can be used as opportunities to expand and gain

more market share. In order to do so, WP can invest more in retail stores and expand to

foreign markets. Another opportunity is to invest more in marketing to gain more customers

in the markets it operates. Since, Warby Parker is currently a private company that has been

growing by investing from outside investors, going public will allow the company to gain

more capital to expand to foreign markets and increase the number of stores it owns.

Warby Parker Threats:

Competitors such as Made Eyewear, and TOMS are operating with similar business

strategies, which can negatively affect WP’s income statement. Furthermore, contact lenses

and laser eye corrections are becoming widely popular and inexpensive in U.S. and Canada,

which is slowly decreasing the size of the market. But the greatest threat for WP is the high

costs that the company incurs. For every pair sold, the company donates a pair, which

doubles its cost. Another cut to profits is rooted in the “Home Try-On” program, where the

WP offer unlimited free shipping and returns. Just the cost of shipping can add up to millions.

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Gaps in The Market & Trends at Industry Level:

In order to gain more customers and increase their market share, companies must identify

gaps in the market they serve. Online eyewear retailers have not gained much popularity

among baby-boomers. Many baby boomers are tech savvy, but they are less likely to use the

Internet for shopping. Also, it can be harder to get glasses to fit properly when buying online.

Therefore, many people prefer to visit an optometrist or an eyewear store. Also, not keeping

up with trends at industry level can be crucial for any type of business. Within the past

decade, contact lenses have seriously increased in popularity among people with vision

problems. In an attempt not to lose market share over it, some companies took the advantage

and sell contact lenses as well as optical glasses. Laser eye treatment is another trend

reducing sales mostly among the millennial demographic. Particularly after introducing

bladeless technology in eye surgeries. In contrast, a trend that will benefit the industry in the

long run is advancement in technology. Increasingly the use of devices like smartphones and

tablets has increased the risk of future eye problems. Unless protective computer glasses or

screen covers become the norm, the demand for optical glasses will most certainly increase.

CUSTOMERS

Costumer Characteristics

Lux’s costumers are diverse in terms of demographics and socioeconomics, etc. Since the

company dominates the eyewear industry their customer base encompasses multiple age

groups, economic status, and behavioral characteristics. Lux’s portfolio includes mostly well-

known high fashion propriety brands. Some of these brands are costing customers several

thousands of dollars. Given this information it is assumed that Lux. would benefit most by

focusing on upper middle and upper classes only; however, some brands like Oakley’s can

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be affordable for many middle class, or even lower middle class consumers. Add Lux’s new

venture into the vision care insurance market and they can attract customers from even

more demographics and socioeconomic groups with their mix of one-stop vision offerings.

Luxottica’s Wholesale distribution network covers more than 150 countries across five

continents. They have an extensive retail network of over 7,200 stores. These gigantic

numbers emphasize the enormous power that Luxottica yields in this industry.

Defined Segment(s)

Segment Name Demographic Behavioral

1. Middle Income Families Ages of 20 – 65+ Convenient, high utility

& high quality

2. High Income Families Ages of 20- 50 Avid fashionistas &

trendsetters

The reason costumers from segment one chose Lux. products is to benefit from the high

utility and high quality features. Since most consumers are unaware which products are

produced by Lux., they just happen to be “everywhere,” so they get to enjoy the convenience

and quality regardless. The age different between the first segment and second segments is

based on the fact that Lux’s costumers from the middle income families use Lux’s vision care

services more. Further, the older costumers have more vision problems, than the younger

ones. In contrast, consumers from the second segment have a much higher disposable

income and can therefore afford the big dollar values attached to Lux’s high end designer

brand name eyewear glasses such as Prada, Valentino, etc. Their priority is image and

following the latest and hot fashion trends carries a high value so price is less of a barrier.

Market size and Potential Growth

The future looks promising for Lux., especially in the North American region (N.A.). N.A.

offers untapped growth opportunities due to the large number of people with undiagnosed

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vision corrections. According to this Lux. presentation the Vision council the N.A. eyewear

industry is appraised at $35 billion with growth of $44-47 billion by 2020 (Luxottica | Files).

Costumer Wants and Needs

In general, N.A. consumers are primarily focused on value and functionality, however, more

and more Americans are becoming attentive to design and fashion. Moreover, they are

demanding the ability to shop anywhere at any time. Lux. products satisfy this niche with

their distribution model coupled with a diverse cross-functional group of product offerings

across all demographics, budgets, tastes, lifestyles, and age group segments.

Distribution Channels

The vertical integration model allows for Lux. products to be found everywhere. The

company distributes its products through a multitude of retailers as previously listed as well

as a growing online presence through www.glasses.com. Just in N.A. alone the company is

looking to boost its sales from $2.5 billion recorded in 2012 to $3 billion in 2016.

Motivation to buy the product

While the main motivation to buy Lux. prescription eyewear is vision correction, high fashion

trends and design are also strong influencers. Most of the brands made by Luxottica are very

attentive to fashion and image. They all follow the trends, and this is the most that interest

the costumers as of now. When a person goes to a doctor and gets diagnosed, the next step

is to find “good looking” glasses. When choosing sunglasses, costumer's will pay even more

attention to fashion trends and design. Almost any sunglasses can protect from the sun;

however, Luxottica offers more than that, which is fashion, design, and great looks.

LUXOTTICA GROUP S.P.A: SWOT ANALYSIS

Lux’s future marketing decisions are best formulated based on the outcome of a thorough

https://www.boundless.com/marketing/definition/swot-analysis/

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SWOT analysis. This SWOT seeks to improve Lux’s internal environments by examining how

to advance company strengths and minimize its weaknesses while expanding opportunities

through external factors and averting potential threats that could derail marketing efforts

Luxottica Internal Strengths: One of Lux’s greatest strengths is their diverse product portfolio across many market

segments and Lux’s ever growing SBU’s (single business units). While a significant fall in one

of their key lines; like Ray-Ban, 27% of net sales, or Oakley 11% of net sales, might present

some financial destabilization the remaining house brands and multi-licensing agreements

with prominent fashion designers will likely carry any minor instabilities in the market.

These well-established ties to exclusive licensed partners like; Chanel, Prada, Armani, Mui

Mui, and many others brings great prestige and validity to the company’s core competencies

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(Marketline, 2016). These high profile accounts are likely to attract even more prominent

labels to license with Lux. in the future because of Lux. offer a point of differentiation in high-

quality and innovation that delivers the brand value designers want. Lux’s increasing

popularity with designer brands is predictive they can virtually own this customer base.

While Lux’s pricing power verges on fulfilling the classic definition of a “pricemaker” by

economics standards, the resulting revenue accumulation has generated high-profitability

and stock earnings. This is considered a winning formula by most business criteria, and has

contributed widely to the firm’s ability to grow its assets, production capacity, and its market

share. On the flip side, this high pricing practice has attracted a lot of bad press and an alleged

corruption claim which also raises the firm’s liability risks (BBC Secrets). However, in 2009

Luxottica launched the “Onesight” charitable program bringing “together doctors, partners

and community volunteers with 64,000 Luxottica employees in 130 countries to provide free

vision care and eyewear to those in need.” Through vision providers and resellers like

Lenscrafter’s customers purchasing new prescription eyeglasses were asked to turn in their

old frames, Luxottica will shine them back up, providers replace the lenses, and then give

them to sufferers who have limited or no access to vision care (Axelrad p.1).

Luxottica’s Internal Weaknesses

It’s still unknown what effect if any the recent bad press or risks associated with ongoing

anti-corruption practices will have on Lux’s overall sales. Given most people are unaware the

eyewear they are purchasing belongs to this company or anything about Lux’s pricing policy,

and they can avert the spotlight they may get away with it for a long time. Lux. have

established a few production dependencies that may come back to bite them later. They

entail keeping production centralized to Italy after finding off-shore production was more

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expensive and sticking to limited suppliers. By placing all their eggs in one big basket, they

run the risk of bottlenecks and resource failures. Lux’s lack of scalability and volume

flexibility is prohibitive and contributes to higher pricing when there is low volume. Limited

ability to scale to demand when cycles are short and complex is high is a combination that

should be avoided. Operations should seek solutions to meet sudden changes in demand.

Luxottica’s External Opportunities

With the rise of the “internet of things” just about anything and everything is heading into a

tech-space, so in order not to be left behind Lux. could combine their unique expertise their

Intel alliance to gather momentum and launch their own revolutionary new smart-glasses.

Another obvious choice for Lux. to meet rapid growth and increase their reach into

developing global markets would be to further advance their distribution chains and e-

platform selling.

Luxottica’s External Threats Substitutions and counterfeits are two of Lux’s greats external threat factors. Falling prices,

growing accessibility, and advances in medical vision correction, combined with continual

progress in the comfort and corrective properties of contact lenses, make them appealing

alternatives to prescription eyewear. In addition to large volumes of counterfeits constantly

being intervened by customs, with the advent of increasing access to 3D printing devices that

can quickly replicate a pair of designer glasses, Lux. needs to be proactive in monitoring

these factors and building internal contingencies against them (54 Smart Glasses) Last, but

not least keenly observing currency exchange rates and regulatory changes in active markets

will be critical to future success.

THE FUTURE: MARKETING & PRODUCT OBJECTIVES

To counter these internal and external market forces Lux. must set expectations by

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examining current and target markets and seeking to identify gaps in the market for new

products they can launch to fill these gaps.

Current Market

High end brands are currently taking over the sunglass business world. From brands such as

Prada, Bulgari, Gucci, Dita etc. who are producing a pair of glasses costing as much as $1200

a pair. Ray Ban, the classic eye wear brand, has raised their prices from roughly $30-60 a

pair to more than $200. The wealthy are buying it and Lux. understands this demand in the

market. This gives Luxottica that flexibility to charge whatever they desire. The product they

produce for their e-retail platform www.glasses.com with no brand name is the same or

fairly similar pair to the product with a brand name. Since Lux. is already ruling the world of

high class fashion eyewear releasing thousands of new styles/year they are the recognized

source for quality eyewear by many designers, for that reason they attract even more. This

continues to increases the current target markets by an even bigger concentration levels in

a segment where high prices and high demand lead to optimal profit maximization.

New Product Recommendation

We can conclude from Lux’s SWOT analysis that the company has some key opportunities

from which it can leverage its strengths and exploit opportunities to help equalize the

current external threats it faces along with organizational weaknesses. Given Lux’s

expansive distribution and retail capabilities coupled with the company’s competitive

advantage as a renowned innovator of fashionable eyewear, it logically follows they can

continue to grow their market share by launching a tech-savvy house brand that targets the

future of eyewear.

http://www.glasses.com/

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The firm’s collaborative efforts with Intel to develop the next generation smart-glasses

represents the perfect opportunity for integration with one of the company’s in-house

brands. Oakley glasses are Lux’s second largest house brand with a corporate-wide share of

11% of net sales. By combining R&D for the Intel joint effort Lux. can establish the knowledge

base and business intelligence necessary to further expand the narrow and deep market hold

that Lux’s Oakley brand has in specialty glasses for sporting activities (Marketline, 2016).

Launching an Oakley sports frame with the traditional look, feel, and image of an Oakley

sunglass, but with a built-in smart-glass chip that has the capabilities to measure vitals. Such

as; heart rate, calories burned, distance traveled, the number of steps or miles covered,

revolutions per minute of a bicycle, or speed angle and velocity of a tennis or golf swing -- all

triggered through a sunglasses interface that is operated by retina interaction. Undoubtedly

this is sure to delight sports enthusiasts globally.

Target Market

Rather than athletes having to wear a watch or monitor, they can simply slip on their

sunglasses which they already wear for sporting activities. Not only will this tech

development enhance the brand's popularity it will take the product to a whole new level of

utility. Initially, the Oakley smart glass will target more competitive athletes but is expected

to be quickly adopted by mainstream hobby athletes in no time. At product introduction the

Oakley smart glasses will be set at a high price, yet competitive with Intel and Google’s

version. Targeting the middle and upper-income markets with disposable income. Signing

product endorsements with a few famous athletes at product launch will build product

notoriety. Bonus features such as current weather conditions will help target consumers

who are enthusiast about new innovations and begin Lux’s next generation product phase.

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Perceptual Mapping Studies by Subcategory

Compared to competitor brands Lux’s premiere house product which represents 27% of

their net sales commands a much higher than average price point based on perceived

quality level their target consumers typically associate with Ray-Ban’s brand value

(Marketline, 2016).

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Luxottica Profile, Home, History, Founder, Founded, CEO | Famous Eyewear Companies |

SuccessStory. (2016). Successstory.com. Retrieved 21 October 2016, from

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https://www.youtube.com/watch?v=AHA_yZ21MJE

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https://www.warbyparker.com/history

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The Pros and Cons of Buying Glasses Online - WSJ. (n.d.). Retrieved October 20, 2016, from

http://www.wsj.com/articles/the-pros-and-cons-of-buying-glasses-online-

1445351350

http://www.wsj.com/articles/the-pros-and-cons-of-buying-glasses-online-1445351350

http://www.wsj.com/articles/the-pros-and-cons-of-buying-glasses-online-1445351350

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