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Strategy Plans Book Strategy Plans Book [K.J. ViEW] Kim Evens, Jillian Howery, Warner Ransone, Victor Santos, Erick Sourbeck Table of Contents Cover Letter.……………………………………………………………………………...………..3 Executive Summary…………………………………………………………………...………..4 Business Challenge ……………………………..……………………………...……………...5 Situation Analysis…………..…………………………………………...………………………5 SWOT Analysis…………………………………………………………………...……………...17 Opportunity Recommendation………………………………………...………………..19 Marketing Objectives…………………………………………………...……………………20 Recommended Marketing Strategy……………………………………………...…….20 Target Market Profile………………………………………………………………...……...21 Visual Reference………………………………………………………………...………..……23 Brand Proposition Statement Alternatives…………………………...……...…...24 Justification for Proposition…………………………………………….………..……….24 Communication Objectives………………………………………...……….……….…...26 Communication Strategy…………………………………………….………..…………...26 Media Tactics…………………………………………………………….…..………..…….…..27 Evaluation and Measurement…………………………………...…………...……..….28 Creative Brief………………………………………………………………….……..…………30 Bibliography……………………………………………………………………………..………32 2 Brian Magida: Attached you will find a copy of our secondary research findings and opportunities recommendations for Warby Parker. These findings and recommendations will increase Warby Parker’s market share and increase the brand’s revenue. Should you have any questions or concerns, please contact us at [email protected]. We will gladly follow up with you in two weeks to ensure that our recommendations were well received. Sincerely, K.J. ViEW Kim Evens, Jillian Howery, Warner Ransone, Victor Santos, Erick Sourbeck 3 Executive Summary Our client, Warby Parker (JAND, Inc.) is seeking to increase​ its market share and revenue relative to the industry of its e-commerce eyewear industry competitors. Our team, k.j. vew, was tasked with creating a strategy campaign and a creative brief to improve Warby Parker’s business. We began by performing secondary research regarding everything related to Warby Parker. We gathered a background of information about the company itself, its competitors, the e-commerce eyewear industry, the consumer’s habits, the target market, and the macro-environmental conditions surrounding Warby Parker. After conducting thorough research, we performed a SWOT analysis to dive into the company’s strengths, weaknesses, opportunities, and threats on a deeper level. We recommend Warby Parker increase promotional tactics on social media to complement its growing brand that the target market is beginning to love. We have identified this target market as Generation Z, consisting of teenagers and young adults of ages ranging from 16 to 24 and most attached to social media and more interested in social justice and the environment than their older generational counterparts. As a first person account, we created a profile named Emily, a 20-year old trend follower who frequents her many social media platforms to keep tabs on friends and browse content. Then, we created proposition statements to narrow down exactly how Warby Parker should present itself to the target audience. By expanding its presence on social media, Warby Parker has the chance to increase its market share and revenue in comparison to its e-commerce competitors. 4 Business Challenge The challenge for Warby Parker is to increase market share and revenue relative to the industry of e-commerce competitors. Situation Analysis Industry Analysis As of today, the current value of the global eyewear industry is $114.0 billion dollars. The increasing development of technology and daily use of electronic screens on the eyes such as smartphones, tablets, and laptops, has increased the demand for eyeglasses and contacts. This trend is reflected in the rising revenue of eyewear and a rising revenue prediction for at least the next decade. Though the eyewear industry consists of spectacles, sunglasses and contact lenses, the majority of the market share goes to spectacles followed by sunglasses—the product categories that Warby Parker falls under. The top five industry leaders are Vision Source, Luxottica retail, Walmart stores, National Vision, and Costco Wholesale. These industries combined brought in $93 billion in sales in the year of 2017 (Statista). Another aspect to the eyewear industry is corrective eye surgery. What was once extremely expensive and unaffordable to most people is dropping in price and is becoming a popular alternative to buying new glasses. This affects the glasses industry as it pulls potential customers from all glasses retailers (Bell). 5 In-store eyeglass stores are very different than online. Though 8 million pairs of sunglasses were sold online in 2017, it’s only 4.7% of the market for prescription eyeglasses (Kestenbaum). As far as online retailing goes for the vision care market, most of the online purchases are toward contact lenses, however prescription RX lenses still brought in almost $300 million in 2015 for online sales. Zenni Optical is Warby Parker’s biggest competitor and holds about 50% of the market share for online eyeglass sales. That said, the dynamic is changing and the industry of eyeglasses ecommerce is on the rise. With eye tests available online and companies sending multiple frames directly to the customers to try on, the need to go to a traditional eyeglass store is diminishing. Company Analysis Founded in 2010 by Neil Blumenthal, Andrew Hunt, David Gilboa, and Jeffrey Raider, Warby Parker is now going on its eighth year as the eleventh highest retailer in 2017 for eyewear in the entire world. Valued at $1.75 billion, the company has raised over $300 million in total sales (Del Ray). In 2017, Warby Parker the company mainly sells via its online platform that connects to its New York City headquarters. That said, it also sells via retail showroom units across the country. These 63 different showrooms encourage you to come in the store to try on frames and then to make your final purchase online via their website. Warby Parker’s mission is “to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.” The reason Warby Parker 6 was founded in the first place was that the founders were wondering why glasses were so expensive when it was a necessity for so many people. They eventually figured out a way to bypass the middleman and sell directly to consumers, cutting down costs on both ends. To do this, Warby Parker uses its online platform to handle most of the consumer interactions. It has a special touch where on its website, consumers can take a quiz that will then choose five frames that fit the his or her desired shapes and colors, and mail them free of charge. This allows the customer to try on all of the frames and choose which ones are best for them. Something Warby Parker values is social change. They have a “buy a pair, give a pair” program in place so that people in other countries can receive eye care that they cannot afford. To make this happen, Warby Parker partners with international non-profits and has trained 36 of its employees to travel to countries that do not have access to prescription glasses so that they have access to the resource (Warby Parker). Product Analysis Warby Parker has two primary product sections on their e-commerce website, sunglasses and eyeglasses. These sections are also divided for men and women’s styles. This is an easy way for a consumer to shop for what they need. They have a variety of shapes and colors, and the site allows for a consumer search to be specific by color, fit, shape, or material. Upon entering the website, a quiz is offered to find the ideal eyeglasses for the consumer. One must then answer a 7 series of questions involving shape and color preferences. This helps narrow down the search for the perfect match. Once the perfect match is chosen, they can simply order online and receive up to five pairs in the mail for a free trial period of five days. Each pair of Warby Parker glasses is set at $95. By having the price for every frame set the same, consumers can focus on the design. Warby Parker glasses are branded as quality and on trend, yet very reasonably priced. Warby Parker offers a deal where for every pair of glasses bought, another pair is given to someone in need. This promise made gives the brand an empathetic appearance. Every frame is designed in-house, where the creative team brainstorms ideas on design. During brainstorming, details are refined for prototyping, and then move forward to the creation stage. The frames are made with cellulose acetate, and ultra-lightweight titanium. All of the frames are cut, and hand assembled. They are hand buffed and polished, then quality checked. When a customer orders glasses, a new pair is made just for them. Each frame offered on the site has a specific name such as ‘Jane’ or ‘Brady’, this adds a personality to each one and makes it more relatable to the consumer. Each consumer can find a lens that relates to their personality and style. Their glasses are individually packaged in a glasses case with the words “Nice to see you” and shipped to the consumer. This friendly packaging harmonizes with Warby Parker’s fun, cool brand personality. 8 Competitive Analysis Warby Parker faces competition in the glasses industry from several fronts. According to a study conducted by VisionMonday, in the year 2017, Warby Parker was listed as the 11th best optical retailer based on overall sales of $244 million. Based on this aspect of sales alone, direct competitors that generate nearly the same amount of sales include Eyemart Express, Refac Optical Group, and 9 EyeCare Partners. However, these companies may not be considered ecommerce retailers because the majority of sales happen in person in their physical retail stores. In terms of uniqueness compared to competitors, Warby Parker made famous the concept of trying on glasses from the consumer’s home before committing to payment. Ordering five frames, trying them on at home, and sending them back is Warby Parker’s territory. Warby Parker’s brand image competes with other companies who appear to flash the same style. Zenni is one of these companies. Their website follows Warby Parker’s precedent and uses the same design.
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