New Product Development

10504 Words Jan 27th, 2011 43 Pages
INTRODUCTION

For any company, to maintain an already established brand name is as equally a challenging task as the creation of the brand. In today’s challenging market environment, any business is expected to continuously focus on organizational learning and continuous improvement and introduction of products and services to stay alive in the market.

Continuous learning helps organizations to identify gap between the current business and areas which could be tapped with the help of existing knowledge of the market which is close to our existing area of focus. This fits to services businesses as well as products businesses. Where there is a solution to a problem, there is the prospect for a business.

One of the many ways of
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The group 's manufacturing and wholesale distribution is engaged in the following: 1. The design, manufacturing 2. The wholesale distribution 3. The marketing of house brand and designer lines of mid to premium-priced prescription frames and sunglasses.

CUSTOMER BASE
The group 's major wholesale customers include retailers of mid and premium-priced eyewear, such as optical superstores, independent opticians, optical and sunglass chains, sunglass specialty stores and duty-free shops.

SUPPLY CHAIN
Luxottica is now a vertically integrated organization (Hugos, 2006) whose manufacturing of prescription and sun frames is backed up by a wide-reaching wholesale distribution network and over 6,250 stores. Most of the company’s outlets are located in North America, Asia-Pacific and China.

MAJOR PRODUCTS AND SERVICES

The group 's key products and services include the following: * Prescription frames * Sunglasses * Design * Distribution * Retail

REVENUE ANALYSIS
The group recorded revenues of E5, 201.6 million (approximately $7,653.3 million) during FY2008, an increase of 4.7% over FY2007. For FY2008, the US and Canada, the group 's largest geographic market, accounted for 49.7% of the total revenues. Luxottica generates revenues through two business divisions: retail (55.7% of the total revenues during FY2008), and manufacturing and
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