1. Luxottica Case study

2. Luxottica –Italian company with headquarters in Milan –Largest manufacturer and wholesaler of optical products in the world –Own brands such as Ray-Ban, Person and Vogue, and licenses other brands including Bvlgari, Chanel, Versace and Prada

3. Current capabilities Owns 26 brands Huge (under 6000 stores globally – about 4000 optical stores and nearly 2000 Sunglass Hut stores – and growing (from 150 to 220 stores in Australia in three years)) –2006 net sales were $AUD7.8 billion)

4. Opportunities Opportunity for vertical integration as manufacturer, wholesaler and retailer Move into the eyewear business in the mid ’90s, buying Lenscrafters in the US Acquired American company Sunglass Hut around 2000 Purchased Australian company OPSM a few years back

5. Opportunities Huge growth in luxury good globally

6. Challenges Segmentation –Fragmented market in Australia Sunglasses sold at service stations, chemists and department stores – on the streets too –Seasonal industry –Integration

7. Goals Enter one country a year Categorised emerging markets into three tiers: ready now; watching; and not quite ready Idea based on local level of sophistication

8. Strategy Expand the Sunglass Hut business as quickly as they can –Currently have six stores in Hong Kong, 220 in Australia and New Zealand –By December, 10 stores in Singapore –Looking at other countries

9. Positioning Fashion and luxury segment

10. Sample ads

11. Unique value propositions Smarter value propositions Better store environments Better guarantees and better service –Open sales

12. Target market Targets people with higher disposable income Middle/upper end of the fashion sector Fashionable females, aged between 25 and 35

13. Consumer behaviour People are buying emotions Europeans have fashion running through their veins (Everyone wants fashion) Australian, Hong Kong and Singaporean consumers are very sophisticated in their knowledge of brands

14. Consumer behaviour Asians don’t wear sunglasses as much as other Western markets For example, in Thailand, culturally, girls don’t like to cover their eyes, because it looks like they are being too confident or forward

15. Consumer behaviour Young Chinese wear sunglasses exclusively on their heads

16. ROI Met targets in the second year and exceeded in the third