Luxottica Executive Summary

The Luxottica Group is an Italian eyewear company founded in 1961 by Leonardo Del Vecchio. Luxottica is the leading designer, manufacturer, and distributor of luxurious and designer eyewear controlling over 80% of the world 's designer eyewear brands. Luxottica has become a leader in the prescription eyewear business in North America with retailers that include LensCrafters and Pearle Vision brands, Asia-Pacific with OPSM and Laubman & Pank brands, and in South America with the GMO brand. Luxottica also operates points of sale for its retail licensed brands in North America under the Sears Optical and Target Optical brands.

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air” case study and concepts from strategic marketing

success factors. However, the company has a few weaknesses and threats they need to address in

The following case analysis will assess Coach Inc. and its strategy in the accessible luxury brand goods market. The coach strategy focuses on its luxury rivals in matching key quality styles while offering it at a cheaper price. The company offers most products at a 50% off discount price less than other brands which gives them a competitive advantage pertaining to its customer base. Coach marketed its products to middle –income consumers desiring taste of luxury, but also affluent and wealthy consumers with means to spend considerably more on a handbag (Gamble, 2012. P.C-73) .The Company also has several other strategies such as to increase global distribution, improve same store sales productivity and continue its multi-channel business model which includes indirect whole sales to third party retailers but also focuses on direct consumer sales. Coach has done well in the luxury goods industry but the companies profit margin is still below the levels achieved prior to the onset of a slowing economy in 2007 ( Gamble, 2012. P.C-73.The Company had experienced a decline in sales as they are unsure if the company recent growth could remain constant and maintain their competitive advantage with other successful luxury lines Michael Kors, Salvatore Ferragamo, Prada and Dolce & Gabbana.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

Gucci Group is a luxury goods retailer focusing on improving their market share while producing high quality fashionable items. Initially, Gucci’s poor business strategy and internal family conflict directly resulted in decreased sales and net income. When Investcorp took control of the company, Gucci regained their success through quality management and acquisitions. Gucci’s product line now includes a large range of products. We would like to continue Gucci’s success and believe that the next major business decision for Gucci is how to manage the new acquisitions. We recommend that Gucci cease further acquisitions of companies to its portfolio and should not challenge the status quo by making big management changes

The retail industry is highly competitive, with few barriers to entry. Each Company competes with many other local, regional and national retailers for customers, associates, locations, merchandise, services and other important aspects of the Company’s business. Those competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses and other forms of retail commerce. Some competitors are larger than JCPenney, have greater financial resources available to them, and, as a result, may be able to devote greater resources to sourcing, promoting and selling their products.” There are many factors that characterize competition, including advertising, service,

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.

competition and high prices. It costs hundreds of dollars to buy a pair of sunglasses and only about 30$ to produce the same pair of sunglasses. Luxottica also has contracts with major companies such as Coach, Ralph Lauren, Channel, etc. Luxottica also owns Sunglasses Hut which is a very popular place to buy sunglasses. An interviewer asked the creator of Luxottica a bunch of reasonable questions, in which he avoided. One of the questions was “Are consumers happy with the expensive prices? Should sunglasses really cost that much?” The owner of Luxottica replied saying that consumers

Being a an international brand, there is a level of dependence on Italian markets with 90% of the stores situated in Italy and the equalisation crosswise over America, Paris and distribution over different countries of Asia, Europe, Canada and others. In spite of the fact that the model promotes luxury end products, it has been distinguished there is a related low level of client management which couples this recommending there is a need to take a shot at administration to guarantee a complete shopping background and guarantee rehash business inside of the current client base (Liesch, et al.,

Luxottica Group are the world’s largest eyewear company, based in Milan, Italy. Their long-term corporate strategy is to create the best possible eyewear to satisfy its clients, and expand their market share by growing its various businesses, whether organically or through acquisitions1. The Company will continue to focus on the following strategic pillars: vertical integration, design and technological innovation, brand portfolio management, market expansion, financial discipline and the development of talented and committed employees1. Building strong brands that create enduring relationships with consumers is key to how Luxottica plans to sustain its business in the future.

The findings will demonstrate that Di Bella Coffee is one of Australia´s leading specialty coffee chains and is starting to expand into the international market successfully. The combination of a high quality product, the focus on customer service and new innovation together with the strong brand image have led to Di Bella Coffe´s success. In order to stay competitive and profitable in the coffee market and to meet consumer demand, Di Bella Coffee will need to evaluate the changing needs of the coffee