1. Luxottica
Grace Chang, Lara Kessides,
Stephanie Lin, Brit Vezina

2. Background
Luxottica Group S.p.A.
• 1961 founded in Italy
• 1971 contract manufacturer to independent producer
Expansion into Eyewear
• 1980s introduced glasses as eyewear
– Luxottica created licensing agreements with high-end designers
– 1999 acquired Ray Ban
Expansion into Retail Chains
• 1995 U.S. Shoe Corporation (LensCrafters)
• 2005 Move into parts of Asia and Latin America
Service and Welfare Programs
• 1988 OneSight
• 2009 Corporate Welfare Program in Italy

3. SWOT Analysis
STRENGTHS
WEAKNESSES
•
Strong company with a variety of
brands and retailers
• Large network that includes a broad
range
• Powerhouse in terms of glasses and
sunglasses
• Community welfare programs
•
•
OPPORTUNITIES
THREATS
Create a stronger personal experience
in shopping
• Utilize Social Media and digital
platforms
• Continued international investments
and emerging markets in Asia
• To be a more ethical company
•
•
•
Due to the large variety, spread out too thin
The high price of designer frames does not
always correspond to the quality of the
frame, compared to non-designer frames
• No convenient, personal online shopping
experience
• Not all subsidiaries offer virtual try on
• High markups (frames not directly from
manufacturer)
Smaller and more personal boutiques
Slow economic growth affects people’s
disposable income
• Rising counterfeit market

4. Research Objectives
• To understand the consumer’s decision drivers and buying process in
purchasing eyewear
• To analyze the role of various channels (i.e. in-store, online, etc.)
• To utilize social media based on the findings
• To cover various aspects of the market share that Luxottica is missing
out on

5. Research Methodologies
• Open-ended Questionnaire
– Google form
• One-on-one Interviews
– 2 prescription and 2 sunglasses
• Focus Group
– 5-person
• Secondary Sources
– Mintel, Newspapers (WSJ and NY Times)

6. Research Findings: Prescription
Primary (Open-ended Questionnaire):
• The majority of the 34 respondents
ages 18-34 choose designer brands
when selecting their glasses frames
• The majority shop for prescription
glasses in a store versus online-specifically, retail stores.
• The majority do not use social media
platforms for shopping purposes--but
they do like to receive coupons.
Secondary (Mintel):
• Millennial-aged prescription glasses
wearers tend to be most influenced by
brand names, trends, and
recommendations by others.
• Glasses purchases for women tend to be
driven by appearance. Women also report
that they have a harder time finding
glasses that fit their face the way they like.
• Consumers want and expect customized
buying experiences.
• Prescription glasses wearers aged 18-34
are more likely than average to be
influenced by celebrity endorsers.

7. Research Findings: Sunglasses
Primary (Questionnaire and Focus
Group):
• The majority of the 23 respondents
age 18-30 have purchased designer
sunglasses.
• 4 out of 5 focus group respondents
wear and shop for designer
sunglasses on a regular basis.
• Ray Ban is the preferred designer
brand of sunglasses.
• Popular channels include
specialized sunglasses stores and
department stores.
• Primary factors in purchase decision
include brand, fit, and price.
• Social media is not an ideal channel
to receive promotions.
• Ideal experience includes good
customer service and knowledge
from store associates.
Secondary Research (Mintel):
• Most important factors when shopping for
sunglasses: they look good (69%) and they
have a comfortable fit (68%).
• A more personalized approach to sunglasses
shopping experience will help shoppers.
• Major Sunglasses Trends:
• Ethical branding
• Warby Parker
• Education
• Innovative walk-through duty free
stores
• Augmented reality
• Mobile application to try on
sunglasses virtually
• Cool vending

8. Research Findings: One on One
Interviews
Prescription
• Majority of participants do not care
about the brand
• Usually wear contacts
• No need for expensive glasses
that are only worn at home
• Prefer in-store shopping
• Ability to physically try the
glasses on
• Purchases glasses after the eye
exam
• Utilizes websites to get deals on
cheap frames
• Coastal.com (first pair is free)
Sunglasses
• Prefer to buy cheaper, non-designer frames
• Sunglasses are more likely to get
damaged
• Don’t wear them frequently (won’t get
enough use of them to be worth the
cost)
• Not very concerned with designer name
• Enjoys having a variety of designs so usually
purchases cheaper, non-designer pairs
*Both sets of interviews suggest that users don’t enjoy
advertisements on social media unless they are searching
for a specific deal or promotion. Interviewees are all
heavy social media users, but like to be in control of what
appears (i.e. ads or pop-ups).

9. Current Buying Process: Prescription
1) Need for prescription glasses or prescription sunglasses
- Change in sight/vision
2) Get an eye exam from a doctor
3a) Purchase glasses from the eye doctor
- OR 3b) Receive the prescription and take it to a third party vendor (boutique or online)
4a) If purchasing in a physical store:
- Choose a few designs based on face shape, price, brand, etc.
- Try them on and receive immediate feedback
- Based on budget and favorability, purchase new pair of prescription glasses
- Return to store when frames are ready and retry them on for any adjustments
4b) If purchasing online:
- Choose a website based on promotions, word of mouth, internet search, and credibility
- Choose a design based on visuals and provided measurements
- Enter prescription
- Receive via mail
- Hope they fit

10. Current Buying Process: Sunglasses
1) Need for sunglasses
- New trend, replacing old pair, deal or promotion, want an additional style
2a) In store
- Go to a boutique like Sunglass Hut or department store like Nordstrom, Saks Fifth Avenue
- Choose a few designs based on price, style, brand, comfort
- Purchase the pair that receives best feedback
- Receive any adjustments
- Take home immediately
2b) Online
- Choose a website based on promotions, word of mouth, internet search, and credibility
- Choose a design based on visuals and provided measurements
- Purchase a pair based on information provided by the website
- Receive via mail
- Hope they fit
- If not, return according to the website’s return policy

11. What Does It All Mean?
Prescription Wearers Value:
• Personal experience: receiving expertise advice and
suggestions, as well as opinions as to how glasses look
on them.
• Brands that are sustainable and promote ethical
practices.
– Sharing/Leasing/Renting
Sunglasses Wearers Value:
• Excellent customer service.
• Knowledgeable sales associates.

12. Two Major Holes in the Current
Online-Shopping Experience
1.
Luxottica offers an augmented “try-on” experience for consumers
shopping online--but they can only do so by downloading an
iPhone/iPad/Android app. But what about consumers who don’t have
smart phones, or prefer to shop on the larger screens of their laptops/
desktop computers?
2.
Luxottica offers expert online chat advice explaining about frames,
which are best for which facial shapes, etc. But consumers want
opinions. The site lacks the personal advice for how the glasses
actually look on those who try them on with the augmented tool.

13. How Do We Do It?

14. #1 Put the Augmented Experience
On the Website
• Luxottica will allow customers the option of the augmented tryon experience on the brand’s actual website--as opposed to
having to download a separate application in order to access the
tool.
• Customers will be able to create a personal account on the
website where they can save snapshots of the the glasses they
“tried on.”
KEY BENEFIT: Will lead to increased website traffic, and appease
the consumer desire for an easy, convenient purchasing
experience.

15. #2 Use Social Media to Fill in the Major Missing
Link to the Online Purchasing Experience:
Personal Opinion Polls
The Process:
• Customers can embed the save photos of their
augmented try-ons onto their social media platforms
(Facebook, Instagram, Twitter) as an opinion poll:
“How do I look?”
• If the customer hits a certain number of opinion polls
(e.g., 50), they will receive a special coupon for the
pair that they choose to purchase.

16. Social Media Opinion Polls: Key Benefits
• With in-store shopping, for a customer to get opinions of how
glasses look (aside from those from the employee) requires them to
bring their friends/families along. Using their social media
platforms, they can get hundreds of opinions without having to
inconvenience anyone.
• Fulfills the millennial demand for coupons and discounts.
• Will allow Luxottica brands to transcend social media and
accumulate awareness.

17. Social Media Opinion Polls: How Do We
Promote?
Celebrity Promotion:
• A participating celebrity who is popular on social media trend (Cara
Delevingne, Justin Timberlake, etc.) will select a few pairs of Luxottica
glasses they want.
• They post the photos of their virtual try-ons frames onto their
Instagram/Twitter/Facebook and ask their followers to poll their
opinions.
→ This will encourage people to visit the site and try the virtual
reality try on. (See how the pair the celebrity is wearing looks on
themselves.)
• Whichever pair the celebrity ends up choosing--followers who voted
for that pair receive a special coupon for Luxottica eyeglasses.

19. Desired Buying Process
Problem
Recognition
Information
Search
Recognition
of a need or
want
Searching
different
business
environments
to receive
expertise
advice
Evaluation of
Alternatives
Purchase
Decision
Postpurchase
Behavior
Evaluation of
different
products and
brands (high
customer
involvement)
Positive
online
feedback
from social
networks
and experts
leads to
purchase
Expectations
satisfied =
trust in the
brand

20. Thank You!