Lens. Crafters: From Brick to Click William Aramony Andrew Ardini Kerwin Bailey Todd Burach Leonard Carter Jr. Emily Chapman
Industry Summary Brick and Mortar: Lens. Crafters, Eye Care Centers of America, Emerging Vision (Sterling Optical) n Online Dependant: eyeglass. com, 39 dollarglasses. com n Discount Click and Mortar: Sam’s Clubs, BJ’s Wholesale Club n
Market Trends n Wholesalers Entering the Eyewear Industry Sam’s Clubs: Bought in Bulk (at least a dozen), reading glasses for less than $7/pair n BJ’s Wholesale Club: n n Increased Competition from Brick and Mortar Companies n Lens. Crafters forced to buy out Pearle. Vision to maintain market share
Market Trends n Online Companies Becoming Profitable n Eyeglass. com has been profitable since 2001 n Over 10, 000 hits per day n n 1 -800 -contacts. com had $169 million in sales in 2002 Retail Brick and Mortar Lagging n Same Store sales down 1. 1% in Luxottica Retail Division n No Growth past two years in same-store sales Lens. Crafters
From Brick to Click n Success of other companies on the web n Immediate Advantages Increase in sales n New found interest n n Long Term Advantages Supply Chain Management n Financial Resources n Integration with other divisions of Luxotica n
Possible Online Strategies to Use Online catalogs n Personalized Glasses n Virtually trying on glasses n Eye Exam Online n Bot to help you search the site n
Supply Chain Management COMPETITIVE ADVANTAGE (Long Term) n Decrease in inventory in stores n Decrease in costs n On demand sales n Learn more, faster about customers n Will help CRM n
Customer Relation Management n Strategies to Gain and Maintain Customers n Frequent Buyer Program n Relation to Frequent Flyer Programs n Introductory Online Sales Discounts n Second Connection to Continental Airlines n Online Appointment System n Success of Syracuse University System
Marketing the New Strategy n International Capability n n In-store for website n n Luxottica’s SCM Website for stores Search Engine Partnerships
Future Success n Brick to mortar strategy has reached potential n n Future growth Online Sales must be utilized
Sources n n n n Lenscrafters. com Eyeglass. com 39 dollarglasses. com Business Week Luxottica. com Hoovers Online Yahoo! Finance Samsclub. com Brandweek (powered by Looksmart) Computerworld Altavista Business Fortune Forbes Google Partnership Program Continental Airlines
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