Fashion-Ray Ban

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