Ray-Ban Final Marketing Plan June 13, 2019 MKTG 464 Ayaka Fuwa, Chloe George, Diane Hoang, & Kazutaka Takeuchi

Table of Contents

Executive Summary

Situation Analysis

Customer Analysis

Marketing Strategy Insights

Strategic Market Plan Ansoff Strategy Target Market Profile and Attractiveness Value Proposition Customer Value Map Brand Equity Product Strategy Pricing Strategy Distribution Strategy Promotion Strategy

Customer Value Marketing Research

Implementation and Control Operational Requirement Outcome(s) of Plan Controls and Management

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Executive Summary

Our strategic marketing plan is for Ray-Ban to collaborate with Christian Louboutin as a way to diversify. Rather than creating a new product, which has a lot of risk associated with it, we will be collaborating with another luxury brand. We have chosen Christian Louboutin to collaborate with because they are also a luxury brand, and the customer segment that we are targeting are the prestige customers. The focus of this plan is on the prestige customers because they have the highest customer lifetime value, making them a good long term investment for Ray-Ban. Our focal objective for the plan is to increase repeat purchases among prestige customers by 15% in one year by collaborating with a designer shoe brand, Christian Louboutin. By being associated with a designer brand like Christian Louboutin, Ray-Ban’s perceived value will increase, therefore being even more appealing to the prestige customer. The product we are developing in collaboration with Christian Louboutin for our target customers are through the perceived value of luxury, exclusivity, status, quality, and scarcity. Ray-Ban’s position within the industry is as follows: “For prestige customers who want to convey their status through their clothing, accessories, and lifestyle. Our product is a pair of sunglasses that provides high quality, fashionable sun protection. Unlike other eyewear brands, our product is luxurious and classic, yet modern.”

The collaborative product will be the “So Kate” Wayfarers, a combination of Ray-Ban’s most popular design and one of Christian Louboutin’s most classic designs. The frames of the sunglasses will be black on the outside and red on the inside to mimic the classic red bottoms of Christian Louboutin shoes. Both Ray-Ban and Christian Louboutin logos will be featured on the glasses, as well as on the matching glasses case that will be offered. The price of the “So Kate” Wayfarers will be between that of a pair of Ray-Ban’s and a pair of Christian Louboutin shoes at $425. In order to maintain the high perceived value of this collaboration, the collaboration will be sold in luxury department stores like Nordstrom and Saks 5th Ave, as well as on Ray-Ban and Christian Louboutin’s websites. The majority of the promotion for the campaign will take place on social media. Ray-Ban needs to generate 150,000 units conversions to achieve our objectives, and we will make this happen by spreading out the ads across all social media platforms. We will also distribute stickers with each order for customers to place on their laptops, water bottles, etc. for even more exposure.

The social media campaign will need 50,690 clicks on Facebook which costs $22,812 a week to generate 100,000 unit conversions. For Instagram, it needs 34,722 clicks and costs $17,361 a week to make 50,000 unit conversions. According to our calculations, Ray-Ban’s revenue for collaboration will be $63,750,000 in a year if the company could sell 150,000 units. Our goal for production is to have the collaboration ready to launch just before the holiday season when buying frequency increases. Our social media campaign will begin slightly before the release of the collaboration in order to generate buzz.

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Situation Analysis

Based on our market size estimates, we do not consider the market to be mature yet because there is a huge difference between the market potential and the market demand. According to our estimates, Ray-Ban’s market potential is equal to $7,916 million, or 52 million units (See “Market Potential” table in an appendix A for calculations). And, Ray-Ban’s market share is equal to $4,348 million and 26 million units. Conversely, Ray-Ban’s market share is equal to $364,203,760, or 2,093,125 units (See “Market Share” section of the appendix A for calculations). This means that, despite already being a big name in eyewear, Ray-Ban still has room to grow within the industry.

In order to calculate these numbers, we combine two industry data that are sunglass stores and sunglass & contact lens manufacturing in the US. We believe Ray-Ban has the potential to grow in the industry by understanding the relationship between these two industries. Ray-Ban has a 76% market share in-store industry, but the company has only 3.7% market share in glasses & contact lens manufacturer (IBIS World US, 2018). It indicates that Ray-Ban has more opportunities to expose their products to people who are interested in sunglasses than other competitors in terms of the number of stores. However, glasses & contact lens manufacture industry is such a highly competitive market because several competitors have the same price point with Ray-Ban mid to premium, which is one of the reasons why the company has only 3.7% market share in the market. Thus, differentiating in promotional or price strategy from other competitors would contribute to expanding brand awareness, which helps to increase the number of people who would choose Ray-Ban over other competitors sunglasses.

According to our competitive analysis, there are five competitors in each section. In the form section, Maui Jim, Quay Australia, DIFF Eyewear, Costa, and Moscot. We assume Maui Jim would be the strongest competitor because the company sells similar types of sunglasses and price with Ray-Ban. Both companies product cost over $100 for sunglasses. In the category section, shoes, belts, handbags, watches, and wallet. Luxury shoes are considered as the most strongest competitor because the same target with Ray-Ban because people tend to buy luxury shoes and sunglasses to show their status while protecting their eyes and foot. In the budget section, New TV, haircut, piece of furniture, bicycle, and headphones. We think New TV will be a top competitor in this section in terms of the same dollars with Ray-Ban because both products usually cost $150 or more.

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Customer Analysis

Through our research on customer analysis, five segments were identified.

We came to the strong conclusion that customers value making the purchase in-store versus online through our customer purchasing process interview. We identified the top segment that Ray-Ban should target is the Prestige segment because the need is high and good for company fit. Our range for Customer lifetime value is estimated in the low $936 to highs of $3,744 based on the lifetime value of 3 years. According to IBISWorld, Ray Bans products are licensed under Luxottica, which means they are in Luxottica sales channels such as Sunglass Hut. Luxottica owns all Sunglass Hut stores, exactly 1,552 stores in the U.S., As a result, this segment is reachable for Ray-Ban, but product placement is key since purchases are made in store, In addition, Ray-Ban has strong brand recognition, if they can make a new, elevated product that is higher price and design to compete with higher-end brands (Chanel, Gucci, Louis Vuitton) they can capture this segment.

Based on customer analysis a suggestion would be to create a campaign to keep the brand in the customer’s mind and keep that constant brand recognition. In other words, spend more on advertising that will gain earned media. focus less on traditional media. Overall, customer analysis of Ray-Ban would help us to determine our target segment, price, quality, and material when we come up with a new product or service later. (See Appendix B)

Marketing Strategy Insights

The marketing strategy insight that we are focusing on is diversification. This involves

looking into new product segments. When diversifying a product line there are two directions in

which a company can go. The first option is the highest risk option, and this is to make an

entirely new product. For Ray-Ban this would mean making a product other than sunglasses.

This could be something in the world of accessories or something else entirely. This is a high

risk option because it is difficult to find an entirely new product that sunglass wearers will be

equally as interested in. It can also be difficult for the company to produce and distribute a

product they know nothing about. A famous example of this is National Semiconductor

Corporation. In the 1970’s they began to make consumer electronics as well as the

semiconductors that went inside of them, but they were not able to adapt to the world of retail

and their competitors took over the industry (Bloom, 2011).

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To decrease risk but still benefit from diversification, we have chosen to collaborate with

another brand rather than create a new product. Since we are targeting the prestige customer

group, we thought that it made sense to collaborate with another luxury brand as this need based

segment is interested in their appearance and luxury goods. Additionally, we thought it was

important that the brand we chose to collaborate with did not already sell sunglasses so that they

we were not in direct competition with them. Christian Louboutin came to mind because they are

a very well known luxury brand that does not have sunglasses as a part of their product line.

Strategic Market Plan

Ansoff Strategy Our strategic market plan is to collaborate with Christian Louboutin and provide

Ray-Ban’s most classic design, the Wayfarer with the iconic color of Christian Louboutin to target mainly our existing customers. In other words, we will use an existing product in the current market. Therefore, our Ansoff strategy would be market penetration.

Focal Objectives Increase repeat purchases among prestige customers by 15% in one year by collaborating with a designer shoe brand, Christian Louboutin.

Target Market Profile and Attractiveness Our targeted segment is the combined research from the Lifestyle/Vacationer and

Prestige Segment. This is combined research of what the demographic and psychographic for this segment that we are targeting might potentially look like. We are using the name “Prestige” to identify our target segment.

Our targeted segment is “Prestige” who represent their social status through their appearance. Their age is 18 and older and income must be high. Key benefits customers can get from the product should be a unique design and high quality, so they look stylish when they wear it and the product lasts long. It is part of their lifestyle and social acceptance.

Gender, marital status, occupation, and place does not have significance in our customer profile in comparison to the psychographic information, so a wide range of people in this segment fit the criteria for who we want to market our sunglasses to. Our segment’s values are being fashionable, staying on trend, receiving compliments, mimicking a lifestyle that is portrayed by celebrities and influencers on social media. Usage behavior for this segment is for making them look gorgeous, elegant, and rich. Customers might not wear it actually, but they

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have it on them just as a part of their fashion. They might use them in a social setting, dense areas. Examples are photo-centric events and during their travels. (See Appendix B)

Value Proposition The product we are developing in collaboration with Christian Louboutin for our target

customers are through the perceived value of luxury, exclusivity, status, quality, and scarcity. How we will create a sense of luxury, quality, and status is communication through social media by telling the backstory of the collaboration with Christian Louboutin and how much of his idea went into the craftsmanship and design of the Ray-ban x Christian Louboutin sunglasses to justify the higher price point.

How we will create the value of exclusivity and scarcity is through our sales channel. This product will be released to only high end stores such as Nordstrom and Saks Fifth Avenue through a launch party for highly loyal customers in our target market. Only a limited amount of our product will be available for purchase, we will not re-release this product in the future.

We hope our strategy will rejuvenate the Ray Ban brand for our target market, and increase our Brand Equity. We want our value strategy to create the image that our brand is young, modern, innovative, fashionable, and fun. We hope to communicate that when the customer buys our brand, they are buying the story we are telling.

We hope this effort will lead to our overall objective of increasing repeat sales from prestige customers by 15% in one year.

Positioning Statement For prestige customers who want to convey their status through their clothing,

accessories, and lifestyle. Our product is a pair of sunglasses that provides high quality, fashionable sun protection. Unlike other eyewear brands, our product is luxurious and classic, yet modern.

Customer Value Map We have research Ray- Ban’s top 3 brand competitors if we entered this luxury market.

The brands are owned by Safilo the direct competitor that Luxottica competes with. Luxxotica owns Ray Ban. The products were found through the website Neiman Marcus. All the brands are in the price range of $495-515. Since none of these brands are doing collaboration like our product, we justify our product will give more benefit to our target market than these products on the market can. We also know a regular pair of Christian Louboutin high heels cost $695. A price between $515-695 might be the price for our product. Depending on how much craftsmanship and design is involved from our partner Christian Louboutin to make a one of a kind product the price can be justified to be higher than listed on the customer value map. A

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special designed Christian Louboutin shoe went for $3,595 dollars on Neiman Marcus website. Since we are keen to make the pricing higher than are competitors because we feel our product will deliver a higher benefit to our customers then what is available on the market, but priced

lower than a Christian Louboutin heel. The cost could be the average of the two numbers divided by two. For example $515 + 3,595 /2 = $2,055 price for this collaboration could be justified.

Brand Equity Ray-Ban’s brand awareness is high. Memorable logo and slogan “NEVER HIDE” are

one of the reasons why lots of people aware of Ray-Ban. Logo written Ray-Ban in the corner of the glasses and packages is highly recognized and recalled by customers. Ray-Ban has stores in 50 countries and produces various kinds of sunglasses (price, shape, color, design) matching with their culture and demographics. Moreover, Ray-Ban has customized service which customers can create their own sunglasses. This is great customer service and brand performance to get attention from potential and new customers. From the customers' review, most customers are satisfied with Ray-Ban sunglasses, especially, with quality, design, fit, and lightweight. Some customers do not even feel the product is expensive because it is well value, and they have several sunglasses from Ray-Ban. (influencer-Ray-Ban) Therefore, customers feel good for Ray-Ban and have a strong relationship. Ray-Ban’s brand equity must be high.

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Brand Personality Ray-Ban aims for sophistication. Their brand personality targets high spending customers

and focuses on an attractive, elegant, and trendy lifestyle. They produce high quality, well-designed sunglasses, and limited edition collection that collaborates with famous artists or DJ with a high price to attract customers, especially those who are seeking for luxury items. Ray-Ban’s brand personality which is sophistication will be perfectly solidified by working with Christian Louboutin that is luxury brand. The average price of a pair of Ray-ban is $150, but we sell our new product at $425 and this indicates their brand personality well.

Marketing Tactics

Product Strategy For this collaboration, we have decided to leverage Ray-Ban’s most classic design, the

Wayfarer, and one of Christian Louboutin’s classic styles, the So Kate pump. Both of these designs are well known and loved, and recognizable in the prestige community. To combine these two very different products, we have chosen the design of a black pair of Wayfarers with red on the inside of the frames to mimic the red bottom of Christian Louboutin shoes. To go along with these glasses there will also be a black sunglasses case, featuring both the Ray-Ban and Christian Louboutin logos, that is red on the inside (Please refer to Appendix C).

Based on our research, it costs between $50-$60 to create a pair of sunglasses, but our product is a collaboration, which charges an extra design fee. As a result, we estimate that each sunglass costs $80 and $5 for the sunglass case. To maintain the luxury brand image, the price of the glasses will be marked up to $425.

Pricing Strategy The price will be between that of a pair of RayBans and a pair of Louboutin shoes. Based

on our research, the average price for Ray-Ban Wayfarer is $150, and the lowest price for a pair of Louboutin shoes is $700. Price for a new collaboration product will be $425. With the new price point, Ray-Ban will be able to compete with higher-end brands (Chanel, Gucci, Louis Vuitton) that provide sunglasses with over $400.

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Distribution Strategy Because this tactic is meant to increase Ray-Ban’s luxury aesthetic, these sunglasses will

not be sold in places like Sunglass Hut or Lenscrafters. They will be sold directly on both ray-ban.com and us.christianlouboutin.com, as well as high-end department stores like Nordstrom and Saks 5th Ave. We want the collaboration to be sold both in store and online to increase access for customers. Many prestige customers want the luxurious in-store experience, while others want to order online so they have access to the new, trendy product as soon as possible. Lastly, the collaboration will be sold in Four Seasons resorts around the world to appeal to the lifestyle/vacationer needs based segment.

Promotion Strategy We use Running ads on Facebook and Instagram as our marketing communication.

Currently, Ray-Ban has been using several social media platforms such as Facebook, Twitter, Instagram, Pinterest, and Youtube. Also, the company has a heavy presence on these social media, which is one of the reasons why there are over 14 million followers on Facebook and 5 million followers on Instagram. These numbers of followers would be aware of new Ray Ban products when the company posts a picture of the products. Based on our research, posting a video gets more engagement from followers on social media because the promotional video has more likes than images of products. For that reason, we recommend posting promotional videos to advertise the product to existing customers that would help to increase repeat purchase.

Moreover, Ray-Ban needs to generate 150,000 units conversions to achieve our objectives. In other words, Ray-Ban needs 150,000 people if we assume that each person purchases one product. It seems reaching 150,000 is an easy task because the company has a massive amount of followers. However, each post on Facebook tends to get 2,000 likes on average, which is not adequate numbers to reach our objectives. Therefore, we recommend running ads campaigns on Facebook and Instagram to reach out to new customers as well. Based on our estimation, we believe that Facebook has more conversions than Instagram because it has more followers, and 68% of adults use Facebook in the US. Therefore, we assume 100,000 units conversions from Facebook and 50,000 units from Instagram.

In addition, we will give a sticker to people who purchase our collaboration product (Please refer to Appendix D). We assume that people who get the sticker will put it on their laptop or somewhere to show what they got. That will increase brand awareness for a new product because stickers tend to capture people’s eye, which can be a part of a promotion and word of mouth.

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Customer Value Marketing Research The strategy will deliver value to the target market. The situational analysis led to the

diversification strategy because there is a high market demand in comparison to Ray Ban’s market share. Targeting a new customer base is viable to increase Ray Ban’s market share.

Through the customer analysis, the prestige segment was the most attractive segment to attract in terms of estimated CLTV and company fit.

With the insight gathered, the value proposition will speak to the segment’s inherent value in how the product’s values are communicated and how the product value is delivered in all Ray Ban’s marketing tactics.

It was previously identified for weakness is that the iconic “wayfarer” and “aviators” design can only be worn aesthetically by a limited number of people. In order to attract a new segment, a new design needs to be created in order to fit the Prestige segment’s aesthetics. That has led to the collaboration strategy with Christian Louboutin in order to reach a higher end segment without directly competing with the partner. Insights were drawn as to why collaboration can help solve the needs for the business through the collaboration research and Insights.

Secondary data was also gathered further to understand proper communication of “luxury”in the luxury segment research and insights.

Secondary data in the form of a questionnaire was gathered to identify the best place to deliver our luxury product to our customers.

The situational analysis was founded through secondary research. The customer analysis was developed through primary research such as customer interviews, as well as secondary research.

Collaboration Research and Insights:

In an article by Women’s Wear Daily, The North Face has a strong brand recognition. The North Face have iconic products such as the “Denali jacket base Camp duffel.'' The North Face has been shifting their culture to be more inclusive in order for another segment to adopt their brand. The North Face believe they have a solid footing in the exploration image, but want to try to enter the fashion segment as well. In order to do that they have done numerous collaboration with different designers in order to create new designs such as the higher end “North Face Purple Label”. Notable designers the North Face have collaborated with include: Supreme, Comme des Garçons, Junya Watanabe, and Eiichiro Homma. The global general manager mentioned that collaboration was not about the revenue.

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Ray ban is in a similar situation with The North Face, Ray ban has a strong perceived brand recognition, but with such a strong brand it is hard for other target markets to adopt our iconic products. This collaboration will gauge our target market’s response, if it is positive, there will be a better understanding of similar products that should be released in the future. We want to know if these new products will engage our new target market. Since we are trying to enter a new market such as higher end luxury, we believe Christian Louboutin’s target audience will adopt our product if we collaborated with him, he is a well-recognized designer. We also agree with The North Face’s global general manager it is not about the revenue, but about the longevity and relevance of our brand to continue to innovate and increase adoption by consumers old and new.

Secondary research was done to identify the collaboration strategy, why it was implemented, and how it will deliver value for our customers.

Luxury Segment’s Value Research and Insights:

On Emerald insights, written by Beate Elizabeth Stiehler (Division of Industrial Marketing, Royal Institute of Technology). Even though the article was for research in emerging markets (South Africa), the global meaning of “luxury” was viable information to confirm we are aligned with communication in our values to our luxury consumers. She defines the characteristics of “luxury” as exclusivity, high price, reputation for excellence and heritage of craftsmanship, but there is no set definition. I think what is most appealing about this insight was the four different luxury segments that were discussed. The deluxe aspirer segment seem like the segment Rayban is currently in terms of needs, benefits, and usage behavior. The Christian Louboutin brand on the other hand would be a brand that would be in the listed for the Self Made segment. The Self Made segment does significant research into the design, style and exclusivity.

Speaking on the Emerald Insights piece, the “Deluxe Aspirer” values wearing a brand just for the perceived image, but the brands might not be perceived as luxury among more knowledgeable consumers in developed markets. Our prestige segment is more similar to the self made segment mentioned in the Emerald Insights piece. A quote from a self-made segment that was interviewed said, “I feel classy, I feel different, I feel I can be noticed […] with my peers they will always say “nice clothing” and I really like that, because it means I’m standing out (Mark).” These are similar values to our Prestige segment.

They are highly attuned to what is considered luxury since the U.S. is a developed market. It is excellent that we have decided to do a collaboration with Christian Louboutin because they are perceived to be a higher end luxury brand. They are known not just for their brand image but distinguished craftsmanship as well.

Secondary data was also identified to understand what “luxury” means to consumers.

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Sales Channel Research and Insights:

The Journal of Retailing & Consumer Services did a questionnaire to assess customer demographic of where the consumer shops for luxury goods, in particular the Jewelry segment. One thing to note is the sample size in this questionnaire is very small (50 consumers interviewed). it is not the best data quality. The data was more relatable for jewelry data, but we assume sunglasses are competing for the same target market as jewelry, therefore it is relevant information to our company.

In terms of demographic, our customer analysis data align with their demographic responses. In the data, Gender is mostly Female, ages 21-25, single, has some college education and occupation is mostly professionals and college students. Income was often left out because consumers prefer to not disclose that information. We can loosely estimate based on this research information that placing our product in one or a combination of the questionnaire options: Stand-alone or isolated store, store inside a shopping mall, and counters in department store will yield a desirable result in delivering our luxury product.

Implementation and Control

Operational Requirement We need to prepare 150,000 stickers to distribute them to people who purchase our

collaborated product. Based on our research, it will cost $15,000 for 150,000 stickers(2 x 4 inch) because each sticker costs $0.1.

In order to increase 150,000 units conversions within a year, we calculated clicks and costs for both Facebook and Instagram. For Facebook, it needs 50,690 clicks and costs $22,812 a week to generate 100,000 units conversions. For Instagram, it needs 34,722 clicks and costs $17,361 a week to make 50,000 units conversion (Please refer to Appendix E). Running ads campaign on Facebook and Instagram will cost $40,173 a week. Also, we recommend running ads every month that costs approximately $1,094,976 a year for Facebook and costs $833,334 a year for Instagram. Therefore, the total cost would be $1,928,310 a year to achieve 150,000 units. It requires a tremendous amount of money, but it will generate more customers who purchase consistently both online and in-store.

Outcome(s) of Plan Our objective is to increase repeat purchases among prestige customers by 15% in one

year by collaborating with a designer shoe brand, Christian Louboutin. Based on our situation analysis, revenue for Ray-Ban was $185,000,000 in 2018 that indicates the company needs to generate additional $27,750,000 to achieve our objective. Thus, we should observe total revenue

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to measure outcomes and see whether our recommendations work or not. According to our calculations, Ray-Ban’s revenue for collaboration will be $63,750,000 in a year if the company could sell 150,000 units. In order to achieve our objective, Ray-Ban should invest in ads, stickers, and product cost that will cost $14,693,310 a year. Therefore, we assume net income will be $49,056,690(Please refer to Appendix F). Comparing with revenue in 2018 and our estimated revenue, Ray-Ban will be able to increase 27% revenue, which means our recommendation strategy work to achieve our objectives.

Controls and Management We start to sell our new collaborate collection 1 year from December 2019 because

Christmas is coming in December and we expect a larger purchase from customers. Therefore, we must finish producing enough products, delivering to all the stores in the United States, and stocking in the store by the end of November. For the promotion, we use running ads on Facebook and Instagram. We will display our ads on Facebook and Instagram all year from July to inform the customer of our new products. We use not only running ads on SNS but also post pictures and videos on Facebook and Instagram weekly through a year from July. In addition, we provide a sticker to the customers who purchase our collaboration product, so we need to prepare stickers by the end of November as well. (Please refer to Appendix G)

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References

Agrawal, A. (2015, December 18). The Sunglasses Industry: A Lesson In The Importance Of Branding. Retrieved June 10, 2019, from https://www.forbes.com/sites/ajagrawal/2015/12/18/the-sunglasses-industry-a-lesson-in-the-importance-of-branding/#1d4b8f1c53a2 Bloom, P. (2011). Diversification Can Be Deadly. Washington Business Journal. Retrieved from https://www.bizjournals.com/washington/blog/fedbiz_daily/2011/06/diversification-can-be-deadly.html EDELSON S. The North Face Finds Its Inner Fashion: Tim Bantle talks about how the brand is welcoming consumers it might have overlooked in the past. WWD: Women’s Wear Daily. April 2019:11. http://search.ebscohost.com.proxy.lib.pdx.edu/login.aspx?direct=true&db=buh&AN=135810769&site=ehost-live. Accessed June 12, 2019. Facebook Ad Benchmarks for YOUR Industry [New Data]. (n.d.). Retrieved June 12, 2019, from https://www.wordstream.com/blog/ws/2017/02/28/facebook-advertising-benchmarks Instagram Ads Cost in 2019 – Complete Up-to-date Guide. (2019, March 28). Retrieved June 12, 2019, from https://karolakarlson.com/instagram-ads-cost-and-bidding/ Purpose: collaborations done in the past by other brands and justification for strategy. Kokemuller, N. (2016, September 29). What Are the Benefits of a Sales Promotion? Retrieved from https://yourbusiness.azcentral.com/benefits-sales-promotion-3363.html Ray-Ban. influencer (n.d.). Retrieved from https://www.influenster.com/reviews/ray-ban-sunglasses Sanguanpiyapan T, Jasper C. Consumer insights into luxury goods: Why they shop where they do in a jewelry shopping setting. Journal of Retailing & Consumer Services. 2010;17(2):152-160. doi:10.1016/j.jretconser.2009.12.001. Purpose: understanding where the Luxury consumer’s shop Stiehler BE. Co-creating luxury brands in an emerging market. Qualitative Market Research: An International Journal. 2016;19(4):395-415. doi:10.1108/QMR-02-2016-0018.

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Purpose: Understanding “Luxury” and Luxury segments Portland State University - Single Sign-On. (n.d.). Retrieved from http://clients1.ibisworld.com.proxy.lib.pdx.edu/reports/us/industry/keystatistics.aspx?entid=4229 Portland State University - Single Sign-On. (n.d.). Retrieved June 12, 2019, from http://clients1.ibisworld.com.proxy.lib.pdx.edu/reports/us/industry/keystatistics.aspx?entid=882 Shop Stickers by Size. (n.d.). Retrieved June 9, 2019, from https://www.customizedstickers.com/shop-by.html?p=4

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Appendix A

Industry: Glasses & Contact Lens Manufacturing

● Market Potential: 15,489,742 units $2,695,215,140 dollars ● Market Demand: 39,648,851 units $6,898,900,000 dollars (IBIS World Report

Industry) ● Market Share : 2,093,125 units $369,203,760 (IBIS World Report Industry)

Industry: Sunglass Stores

● Market Potential: 87,580,000 units $ 13,137,000,000 dollars ● Market Demand: 11,978,000 units $1,796,700,000 dollars (IBIS World Report

Industry) ● Market Share : 41,505 units $6,225,768 dollars (IBIS World Report Industry)

Average:

● Market Potential: 51,534,871 units $7,916,107,570 dollars ● Market Demand: 25,813,426 units $4,347,800,000 dollars ● Market Share : 1,067,315 units $185,214,764 dollars

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Appendix B

Need-based Segmentation table

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Appendix C Product Inspiration: Christian Louboutin “So Kate Pointy Toe Pump”

Product Mock-Up:

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Appendix D

Sticker Mock-Up

Ads Mock-Up

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Appendix E

Facebook Instagram

CVR 4.11% (Apparel Industry)

3% (Apparel Industry)

CPC $0.45 (Apparel Industry)

$0.5 (Apparel Industry)

CTR 1.24% (Apparel Industry)

0.52% (Apparel Industry)

Facebook ads with 100,000 units conversions:

● Clicks : 2,433,090 a year (100,000 / 4.11%= 2,433,090)

202,758 a month (2,433,090 / 12 = 202,758)

50, 690 a week (202,758 / 4 = 50, 690)

● Cost : $ 1,094,976 a year (2,433,090 * $ 0.45 = 1,094,976)

$ 91,248 a month (1,094,976 / 12 = 91,248)

$ 22,812 a week (91,248 / 4 = 22,812)

● Impressions : 88,304,516 a year (1,094,976 / 1.24% = 88,304,516)

7,358,710 a month (88,304,516 / 12 = 7,358,710)

1,839,677 a week (7,358,710 / 4 = 1,839,677)

Instagram ads with 50,000 units conversions:

● Clicks : 1,666,667 a year (50,000 / 3% = 1,666,667)

138,889 a month (1,666,667 / 12 = 138,889)

34,722 a week (138,889 / 4 = 34,722)

● Cost : $ 833,334 a year (1,666,667 * 0.5 = 833,334)

$ 69,445 a month (833,334 / 12 = 69,445)

$ 17,361 a week (69,445 / 4 = 17,361)

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● Impressions : 16,025,654 a year (833,334 / 0.52% = 16,025,654)

1,335,471 a month (16,025,654 / 12 = 1,335,471)

333,868 a week (1,335,471 / 4 = 333,868)

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Appendix F

Ads $ 1,928,310 (Facebook & Instagram)

Stickers $15,000 ($150,000 * $0.1)

Product Cost $12,750,000 ($85* 150,000 units) ➔ $80 per sunglass + $5 per case

Revenue $63,750,000 ($425*150,000 units)

Net Income $49,056,690 (27% increase)

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Appendix G

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