Ch. 17 - Personal Selling and Sales Management

Luxottica's company, LensCrafters, consumer sales promotion features many ways to encourage the consumer to choose their product over other competitors by offering many rebates and loyalty programs. LensCrafters currently has a promotion running that takes 50 percent off your child's (12 and under) total if you buy a new frame with new lenses. As with many other promotions the idea is that if you purchase more from us you will save more. LensCrafters will also take 40 percent off your (adults) total if you purchase frames with lenses. They have a loyalty program and are now offering a credit card.

LensCrafters makes it easier now for people to shop and choose products by different variations by using their online services. Customers can input their desired lengths and widths for frames or choose generic sizes such as narrow, normal, or wide. The consumer can choose the color, shape, brand, and adjust the price range to further help the consumer find the perfect pair of frames. Once the consumer finds a pair, they can make arrangements for it to be delivered to their local store and also set up an appointment for an eye exam.

I believe online service is essential to any business that can streamline it within their business as most consumers' schedules are busy and cannot visit store locations physically due to time constraints. Allowing the consumer to cut the process by more than half by using online services definitely makes the sale a much greater possibility.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Luxottica is no newbie to understanding how important advertising is to its company (or companies rather), thats why they spend a lot to advertise their brands. In 2008 they had spent $75 million in advertisements in the United States alone. The following year? They increased that figure to $85 million. In 2011 the company had spent a staggering $122 million in advertisements solely for the U.S. Around $400 million was spent on advertising worldwide. Luxottica devoted most of the $122 million advertising share to LensCrafters for a mere total of $48.5 million. Its sister company Pearle Vision only received $14 million. Having two companies in virtually the same market and one having significantly greater results than the other didn't sit well with Luxottica. They figured Pearle Vision needed a new approach to the market and a fresh reboot, so in 2012 they prepped a new logo and used TV commercials as a medium to get their message out. Sunglass Hut saw $6 million of the $122 million for advertising.

Earlier this year Luxottica caught praise over their new ad campaign for company Ray Ban. Their new campaign titled 'NEVER HIDE' featured a form of advocacy advertisement in their support of the gay community. The campaign features many photos one of which is a photo of two gay men strolling through the city. This move caught praise from the LGBT community. The other photos used are pictures of people who are in the act of doing there favorite hobbies, job, or regular day to day activities. The hidden message behind the photos is that they offer products to everyone who does different things. For example, the picture with a bull rider wearing their Ray Ban shades or the cyclists, the rock band, and your occasional mom walking with her children. Press release for the NEVER HIDE campaign states: "In its every form, the Ray-Ban campaign portrays regular guys and girls living their day to day lives with authenticity, with the courage to express themselves and their unique individuality, which is the most precious thing we have, because the most fashionable thing to be is yourself,"

Ch. 14 - Marketing Channels and Retailing

Luxottica is the worlds first eyewear manufacturer to enter the retail market industry. In 1995 they acquired LensCrafters' parent company, The United States Shoe Corporation, which led LensCrafters to being the largest optical retail chain in the United States. Luxottica's global vision allowed for opportunities abroad in other major market locations such as China. Luxottica's continuance in growing and expanding its market share by acquiring developing and aspiring companies is what sets it apart and allows the company to hold the crown in the leadership position in the retail market. Luxottica's retail business has reached more than 7,000 stores world wide in recognition to leading brands such as Pearle Vision, Sunglass Hut, LensCrafters, OPSM, and Laubman & Pank. Luxottica's portfolio of retail businesses definitely make them a category killer in the eye wear market.

Recently Luxottica opened up a flagship store for Sunglass Hut in New York City's Time Square. Luxottica calls it “its most technologically advanced store”.

The store features many things you wouldn't find in many other sunglass shops.

They have a new service called “Eye Candy” which is a vending machine for sunglasses. What makes it more special than your traditional vending machine is that it has a touch screen that allows you to utilize the built in camera to virtually try on any pair you may find interest in. If the “virtual” thing isn't your taste they also have what they call the “Sunglass Bar” that is “a one of a kind interactive social space where they can try on sunglasses [and] purchase them through SunglassHut.com". Visually, the store is eye candy (pun intended). The store keeps up with the traditional Time Square lighting.

   The store features many led lighting features and a huge led screen that illuminates in sequence with the current beat of the music playing. The wall colors are black, which allow the colorful racks and the 1,600 pairs of sunglasses to catch your attention.

Ch. 6 - Consumer Decision Making

A major component in Chapter 6 is the consumer decision making process. It is suggested by researchers that customers go through a 5 stage consumer decision making process when making or seeking a purchase. The 5 steps in that process are 1) Need Recognition/Problem Awareness 2) Information Search 3) Evaluation of Alternatives 4) Purchase 5) Post Purchase Evaluation
Here is how Luxottica executes each step of that process.

1. Need Recognition/Problem Awareness: The eye wear industry is one that wont go away as long as people have eyes. Some people need to wear glasses, sunglasses or sports eye wear. Other people may just want to use eye wear for style and fashion. Whatever the case may be, the first step for the consumer in terms of Luxottica's business is the consumers recognition for wanting/needing eyewear.
   
   
   
   
2. Information Search: This is usually classified as an internal or external research, depending on the consumer. The internal research is solely based upon one's memory of a product or the recall of past experiences with a product. If there is enough internal research the consumer may just proceed with the purchase. If that isn't the case, consumers then rely on external research. External research is usually when the consumer has little or no recollection about a product. The consumer then seeks informational sources, such as, word of mouth, public sources, or marketing from the production company. Luxottica handles this step with its ownership of its eye wear retail chains Pearle Vision and LensCrafters. When someone is in need of purchasing glasses and needs more information on which glasses they need, they go to the eye wear store. Luxottica sells their glasses through their own eye wear retail stores all across the globe.
   
   
   
   
3. Evaluation of Alternatives: At this stage in the consumer decision making process the consumer then gathers all sources and possible products that will ultimately benefit their needs best. Luxottica is the market leader in eyewear. They hold a huge portion of the market and pretty much any purchase you make when purchasing eye wear you can pretty much guarantee they may be more than likely on the receiving end of your purchase. If a consumer goes to LensCrafters, and makes a purchase of glasses that aren't made by Luxottica some of that money is already contributed to them, just from purchasing through their store. Luxottica has many licensing deals with different brands so regardless of what eye wear product you choose you most likely will be purchasing their product regardless of the various options you see available.
   
   
   
   
4. Purchase: In this stage the consumer usually has the information and sources needed to finally make a decision in its purchase. Most of the time the consumer has an intention of purchasing a premium brand. Brands provide a sense of security in knowing that the product you purchase from said brand is premium and of high quality. Luxottica deals with this by continuing to make agreements with many of the top brands in the world today with licensing deals to make, produce, and distribute eye wear for.
   
   
   
   
5. Post Purchase Evaluation/Behavior: The final stage in the consumer decision making process in which the consumer determines the satisfaction after the completed purchase. Luxottica feels they make premium quality eye wear for all. They are confident you will enjoy your purchase and if you feel you made the wrong purchase you can return the product within 30 days in a “no ifs and or buts” type of return policy. That goes for all their retail chain stores/franchises. They go a step up in their retail sunglass chain Sunglass Hut and provide you with “free and easy returns for 90 days”. “Sometimes things just don't work out. And we totally understand. So if you're not thrilled with your purchase, you've got 90 days to return it for either a full refund or an exchange.”
   
   
   

Ch. 5 - Developing a Global Vision

Luxottica was founded in 1961 in Italy by Leonardo Del Vecchio. He started out as a tool and die maker in Milan and later changed his work to producing eye glasses. The company was very successful through its first years and Del Vecchio felt expansion was in the companies best interest. He was convinced that the company was in need of vertical integration (when a company expands its business into an area that are at different points on the same production path) to prevent the 'hold-up problem'. In 1974 he acquired Scarrone, a distribution company, which ultimately led the company to its first international expansion located in Germany. In the 80's Luxottica's acquisition of other distributors and the opening of branches and joint-ventures in other foreign markets allowed for Luxottica to operate in many foreign countries.

 Luxottica started a commercial partnership in Germany in 1981 which led to the acquisition of Avant Garde Optics Inc. Avant Garde Optics Inc., was a distributor with strong ties and a major distributor on the the United States market.

This move introduced Luxottica to the eye wear market in the US. In 1990 Luxottica listed in New York which allowed the company to raise money to acquire brands for expansion such as LensCrafters (1995), RayBan (1999), Sunglass Hut (2001), OPSM (2003) and many others. Luxottica's first partnership with a high fashion company came in 1988 through a license agreement with Giorgio Armani. Since then Luxottica has made major license agreements with top brands including Versace, Prada, Chanel, and Dolce & Gabana. 

Today Luxottica Group is a multinational company which operates in 130 countries across five continents with approximately 72,000 employees world wide. They have 20 distribution centers around the world and have their products designed and manufactured at six plants in Italy, two in China, one in Brazil, and one in the US, which is devoted to the production and manufacturing of sports eye wear. Luxottica's global vision and vigorous marketing and business executions make it the successful company it is today. Operating in these many markets around the world is the primary reason why they are the industry leaders in the eye wear business.