Fashion-Ray Ban – Flashcards
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Describe Ray-Ban in 1999
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Low quality, low price, very diluted-sold in gas stations
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When did Luxxotica acquire Ray-Ban?
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1999
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What percentage of Luxxotica's income is it?
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40%
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Ray-Ban is number one in...
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Brand awareness and market segmentation
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Why is Ray-Ban a perculiar business
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Both a necessity and a luxury.
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Sunglasses:
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buy regularly-brand celebration, accesory
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Opticals:
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Rational purchase-need for bad eye sight
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What decade did eyewear and sunglasses become popuar?
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Late 90's
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What are the benefits of eyewear in the market?
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Entry point into a brand Hook aspirational customer Good publicity for brand/always advertising
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Optics: World wide ------ segments
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Worldwide continuous growth of premium and luxury segments
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Eye wear is a key ----
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Key strategic lever for luxury brands
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Function to fashion =
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new game, new rules, new retail in environment
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How many retail stores does Luxottica have?
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6,200
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Luxottica has a well-balanced ------
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portfolio of the leading and best selling premium house and licensed brands
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Which brand is the best selling sun and prescription brand in the world?
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Ray-Ban
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What type of distriubution network does Luxottica have? (Complete Vertical Integration)
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A global wholesale network, with a direct presence in the key eyewear markets worldwide
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Where are Luxottica's manufacturers?
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Italy (high-quality manufacturing capacity) and China (only premium manufacturer with a wholly-owned plan in China)
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Luxottica has the discipline of ....
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a fully US-listed organization
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What has Luxottica built? (Complete Vertical Integration)
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Building value for leading luxury and fashion brands
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What is the distribution of Luxottica? (Complete Vertical Integration)
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Global wholesale distribution network
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What type of business is Luxottica?
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Full vertical integration: controlling retail distribution.
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When did growth in Luxottica begin? Why?
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In the 80's with the license agreement with Armani
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Which fashion house first branded sunglasses?
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Armani
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Which brand created Luxottica's success?
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Armani
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How does Luxottica work with brands today?
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As if each brand was unique
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Why did Armani leave Luxottica?
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Because Luxottica was too industrial. Luxottica didn't create difference between brands. (Design) Armani design crossed into other brands. Armani felt over distriubuted.
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Luxottica has both ----brands and -----brands
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House brands and License Brands
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What is a house brand? Examples?
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Brands fully owned by Luxottica: Full control of brand positioning, long term strategy, marketing mix, product development. Ray-Ban, Oakley, Vogue
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What is a license brand? Examples?
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Brands owny by Fashion and Luxury companies and MANAGED by Luxottica in the eyewear category. Chanel, D&G, Prada, Versace, Burberry.
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Where did Luxottica originate? It is a --- Company
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Italian company
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What smart moves to Mr. Davecchio make to ensure success of Luxottica?
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Didn't leave business to family. Selected best candidates for the job. Selects young people with huge jobs:managers
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Luxxotica is always thinking-----
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Globally
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Luxottica is always increasing and extending
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license agreements
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Luxxotica has the best brand portfolio in the indsutry why?
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Well balance of house and licensed brands. Strong house brands-such as Ray-Ban Licensed the best-selling luxury and fashion brands.
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Luxottica is a fully ---- integrated company
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Vertically integrated
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Why is it a fully vertically integrated?
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Acquired optical chains - Sunglass Hut
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Explain the advantage of owning sunglass hut.
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Sunglass hut sells all brands, but Luxottica brands and licenses have the most prominent positioning. (Window displays etc.)
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*Since Luxottica controls retail they control
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the market*
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Ray-Ban started as a company that created...
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Sunglasses for the airforce pilots: aviator
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What are four important years of Ray-Ban?
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1937,1961,1980's, 1999
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1937: Ray-Ban was known for...
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it's functionality for people that needed good service.
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1961:
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Ray-Ban was a market leader 1st placement in a hollywood film
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1980's
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unforgettable placements in all time classic films- significant increase in wayfarer sales
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What has lead to the success of Ray-Ban?
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Product with functionality and association with the idea of freedom, rock and movies. Combined design excellance and functional innovation
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Why is Ray-Ban an Advertising pioneer?
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Understood promotion. 40's-functional approach Identified consumer needs Exploration of problem-solving approach.
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What actions to Luxottica take on Ray-Ban upon acquiring the brand?
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Focused on quality Rationalization of pricing Control of distribution Brand stretch to optical and women
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What company did Ray-Ban originally work with?
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Bausch & Lomb
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Why did Ray-Ban leave Bausch & Lomb?
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Internally competing (contacts vs. glasses) Couldn't keep up with fashion & seasonal brands as other italian brands could
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Focus in 2000-2005. Actions taken?
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Re-setting fundamentals: Asure quality of product* Increase pricing of glasses
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Actions taken to asure quality of product?
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Closed all ray-ban factories Created factory in Italy
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Where are glasses created today?
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half in Italy (mainly optics) half in China (mainly sunglasses)
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How did they increase pricing?
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Froze sales for 6 months Started from scratch. Cleaned distribution and chose correct retail positioning New quality Ray-Ban sold in high quality stores
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Growth from 1999-2005?
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Doubled revenue
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Focus of the re-launch of the brand
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To create stronger emotional appeal
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Worked with an advertising agency to...
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recreate the brand and reposition it in the market
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Changed Communication:
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develop new brand identity
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Luxottica had to recognize and set brand values, what were the values?
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Timelessness, authentic, cool, courageous, function/quality
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2007 Luxxotica ----- the brand, how?
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re-affirmed the brand, the Never Hide campaign
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Never hide:
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Ray-Ban is for the "true individual" Express individulaity Personality booster
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Famous quote from Ray-Ban...
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"The most fashionable thing you can be is you"
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Never hide was different, why?
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Typical campaigns were pretty face, big dark glasses First user generated campaign* Customer=Advertisement
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2009: Year of ---- how?
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Expansion--first colored lenses, new innovation (carbon lenses)
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Ray-Ban met what challenge since it was such a well known brand?
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Search for innovation to remain relevant with trend setters
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How did Ray-Ban balance attraction with the trend setters when selling so much?
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Limited edition glasses: artistic designs, colors,print special series
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2010-11: Ray-Ban deepened its position in the market...how?
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Strengthen segmentation : appeal to hipsters Focus on optical opportunity
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How did ray-ban expand its consumer base?
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Created a design to fit the proportion of the asian face, first to create frames for the this market
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2011: Reached new consumer segment.Which segment?
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Teens: Youngster collection
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Consumer inspires collection segmentation. Examples?
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Icons-Cool Highstreet-Stylish Tech-Specialist Active Lifestyle-Genuine
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Ray-Ban's iconic communication:
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From one-way advertising to two-way conversations with consumers
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Less broadcasting and more...
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audience participation
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Created position in viral world through
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Never hide viral movies Facebook
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How did Ray-Ban use PR?
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Take brand to key influencers (indy rock concert, indy movie) then trickle down to broadcasters and mass consumer
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Ray-Ban communication Journey: 2007: 2008: 2009: 2010: 2012:
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2007: Re-affirm brand 2008:Consolidation 2009: Expansion 2010: Deepening 2012: Celebration
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Where is the brand today? Brand equity:
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#1 in awareness and press coverage Expanding consumer markets world's best selling
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Where is brand today?: Business:
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#1 brand at Luxottica 10 yrs of continual growth Most profitable brand
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What is value of brand today?
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3 billion
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What was the key starting point to inspire the brands journey?
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Value and Visions- Set brand fundamentals
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Brand is not only advertising it is...
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What? Product offer Where? distribution How? Visibility
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A brand must be ---- to be a leader
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Innovative! Must be a leader crossing time and trends, but always coherence with original set of values
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Must keep balance of:
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consistency and unique goal
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Timeless:
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Always in style
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Authentic:
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glasses and glasses only
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Iconoclastic cool:
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loved by the rebels
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Courageous:
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worn by pilots, rockers
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Quality/function:
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100% uv protection
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Storied:
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created mas sunglasses, innovative, worn by celebs
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Future challenges for Ray-Ban?
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Consumer always search for new markets Increase of competition with fashion brand Need for localization of marketing strategies
