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emPower TM

EVANS COOPER
502 FASHION MARKETING AND ADVERTISING PRINCIPLES
Table of Contents
Summary of Purpose 3
Product Overview. 4
The Company 5
Customer Profile 6
Brand Proposition and Brand Positioning Statements... 7
SWOTs Analysis.. 8
Marketing Strategy.. 10
Industry Overview. 11
Marketing Mix Product. 13
Marketing Mix Price.. 14
Marketing Mix Place 15
Marketing Mix Promotions.. 16
The Competitive Landscape 18
Suppliers and Intermediaries. 19
Recommendations.. 20
Promotions.. 21
Citations.. 22
Summary of Purpose

u emPower is an eyeglass technology that enables the wearer


to change from regular glasses to reading glasses at the
touch of a button.

u GivenemPowers high manufacturing cost, the company


has not experienced market success.

u Our
mission is to offer a repositioning and strategic
marketing plan that will result in product sales success.
Product Overview

u emPower is the latest in eyewear technology. With just the touch of


a finger, the viewer can change the lens from far-sight to near-
sight reading view.

u Aninvisible, electronic near-reading segment is activated when the


viewer needs close-up vision.

u When he pushes the side button again, the view changes back to
far sight vision.

u emPowers variable focus eyewear was introduced in 2011. But due


to a series of design failures, production cost, and low sales
(resulting from poor strategic marketing execution), the company
declared bankruptcy in November 2013 and ceased
manufacturing of emPower.
The Company

u LuzerneOptical Laboratories, Ltd. (Luzerne) is the largest


independently-owned, single location wholesale optical
laboratory in the United States.

u Thecompany has been in the eye care industry nationally, as


well as internationally, since 1973.

u The
company owns the technology and design patents for the
emPower variable focus glasses. 1

u Luzerneintroduced emPower eyeglasses in 2011 and has since


struggled with branding and positioning the product.
Customer Profile

Profile:
u Age: 45+ years old
u Income: $125,000 plus
u Professional occupations or entrepreneur
u Does considerable reading, writing, and/or drawing
u Heavy luxury brand consumer
u Examples of Target Customers: Career professionals,
executives, celebrities, doctors, lawyers, businessmen, and
retirees with high net worth.
Brand Proposition and Brand
Positioning Statements

u New Brand Proposition:


Far-sight and reading glasses in one, at the touch of a button, emPower
technology gives you one lens that suits all of your vision needs.

u Brand Positioning Statement:


To the savvy, sophisticated eyeglass wearer who also has to carry
around reading glasses, when you are ready to lighten your load, try the
two-in-one auto-changing lens by emPower. It saves you the extra
hassle of having two, or even three, pairs of glasses. This patented
technology is available only through select premium quality fashion
brands. emPower is your eyeglass lens for both work and play.
SWOTs Analysis

Strengths IWeekness
Item
Weaknesses 3

Technology50% less Needs more trendy frame


peripheral astigmatism designs.
distortion than progressive
lens. High research and
development costs.
Wider field of view.
The initial user may need to
Automatic fast focus and practice and adapt to the
vision correction. lens.

Easy to operate and use. Requires considerable


charging.

Small niche market.


SWOTS Analysis (cont)
Opportunities Threats Item 3
2

Large market: High global Technological threats from


consumer need for spectacles. competitors developing
knock offs.
Significant opportunity for luxury
brand targeting, particularly in Ability of some already well-
certain cities and countries such established competitors to
as LA, New York, China, and produce a line and control
Japan. the market based on their
already-existing market
Aging population expanding dominance.
and living longer, and are
requiring glasses.

Electronic screens are being


used more and more, causing
more stain on eye vision.
Marketing Strategy
u Our strategy is to partner with luxury eyewear manufactures who have a well-
recognized brand in the market.

u Based on our research, Gold & Wood (Luxemburg) and Cartier (France) are the
best two brands with whom to start a co-branding/ strategic alliance strategy.

u Gold & Wood is a premier Luxemburg luxury boutique eyewear company whose
customer base includes actor Samuel L. Jackson, rapper 50-cent, actor Will Smith,
and other well-known celebrities. Gold & Woods price point ranges from $850 to
$2,500.
u Cartier has been in business since 1847. Cartiers price point for glasses extends as
a high as $50,500.

u We would also remain open to other luxury brand labels if approached.


u Should technology costs decline over the years, we
would consider incorporating other mass-market
brands into our marketing strategy for example,
Calvin Klein and Ralph Lauren -- given their universal
presences across multiple pricing tiers.
Industry Overview

u Growing prevalence of myopia (near-sightedness) is the main


global issue behind the continuous growth in demand for
spectacles.

u An ageing population is contributing to the growth in demand


for spectacles.

u Peopleaged 50+ are keen consumers of a long list of health


and beauty products and fashion-forward options, and
receptive to technological developments.

u According to AARP, a US lobby group for seniors, the annual


economic activity of the longevity market in the US is worth
US$7.6 trillion.2
Industry Overview (cont)
u Withconsumers spending more time in front of
digital devices and the worlds population
ageing overall, this has resulted in higher
demand for functional spectacle lens, such as
office lenses, progressive lenses and digital
device lenses, which generally cost more than a
regular pair of spectacles.3

Digital Device
Lenses by
emPowerTM
Marketing Mix - Product
u emPower lenses are variable
focus lenses that allow the
wearer to be in control of her
vision by the simple act of
touching the side of her
eyeglass frames.

u emPower eliminates the need


for reading glasses, bifocal
and trifocals.

u emPower enables the wearer


to carry only one pair of
glasses, opposed to having to
carry multiple pairs of glasses.

u It is all in one touch.


Marketing Mix - Price
u The prices will be based on luxury brand tier placement given the cost
of the lenses. emPowers retail price averages $1,000 to 1,200.

u Ourmarketing strategy is to partner with luxury brand eyeglass brands


Gold & Wood and Cartier: these two brands sell glasses ranging in
price points of $850 to $50,500.

u The average price of a pair of glasses from Gold & Wood and Cartier
is $1,500 - $2,500. Adding the emPower technology would increase
the overall price to $2,500 to $3,700 per pair.

u We believe the revolutionary technology adds value and appeal and


is, therefore, very marketable to the right demographic.

u Later,
we suggest adding other brands through an alliance with
Luxoticca-Elissor, the leading brand in eyewear manufactering and
frame designing.
Marketing Mix - Place
u We will distribute through the following
sources:

u Gold & Wood store


u Gold & Wood website
u Cartier website
u Cartier stores
u Specialty boutiques throughout the
world: For example, where all places
Boutique
Gold & Wood and Cartier glasses are
sold, which include but not limited to,
The Eye Gallery - Atlanta, Optique,
Thoma & Sutton, and Coco Lunette.

u Forgreater brand exposure, the emPower


glasses will be sold at Duty Free shops
worldwide, with the ability to have the
prescription filled online and the glasses
shipped to the client.
Duty Free Shop
Marketing Mix -Promotions
u emPower will co-brand with Gold & Wood and
Cartier and place ads in the following
magazines: GQ Magazine, Town & Country,
Luxe Magazines, Robb Reports, W magazine,
Hemmings Sports and Exotic Cars, Duponts
Registry of Fine Autos, Local City Luxury
Magazines, such as D Magazine
(Dallas),Business newspapers and magazines
such as Atlanta Business Journal, CEO
Magazine, and Entrepreneur Magazine.

u emPower will also advertise on the following


luxury eyeglass and online fashion magazine
sites:
u http://www.luxuryeyewearforum.com/
u http://spectr-magazine.com/
u https://www.2020mag.com/
u http://4seemagazin.com/
u http://gq.com/
u http://wmagazine.com/
Marketing Mix -Promotions
Social Media:

LinkedIn - LinkedIn is a social media website for professionals. The company provides
statistical data to companies who wish to target market. emPower will target
executives and buy ads to run on the executives posts.

Pop-up ads - Google offers pop-up advertising based on search engine history.
emPower will run ads based on the click history of those searching for:
Luxury brands,
Luxury brand eyewear, and
Luxury travel,
Current Gold & Wood and Cartier shopper.

Client List: Luxury brands keep client data. Gold & Wood has been around since
1995 and Cartier since 1847. emPower will utilize their client list and send out specialty
pamphlets introducing the product.

Events
emPower will send out event invites, tour majors sites, and host private parties at
exclusive places, such as the W Hotel, the Ritz Carlton, and Cartier stores, and put on
demonstrations.
The Competitive Landscape
u Bifocals,Multifocal, and Reading Glasses are the current
alternatives to emPower lenses.

u emPowers potential competitors include ADLENS and Superfocus.


They are potential because both companies have discontinued
their product due to price, expense, appearance, technology,
and/or poor marketing execution.

u ADLENS offered auto-change sunglasses as well as regular glasses


but ceased production in 2015 due to costs.

u Superfocus adjustable focus eyeglasses were introduced in 2009


and were previously marketed under the name TruFocals. Though
no formal announcement was made, the company ceased
operations and closed its doors in March 2014.

u These companies are mentioned because it is possible that they


could resurge given new investment capital infusion and/or
changes is technological costs.
Suppliers and Intermediaries
Suppliers

u Both Luxottica and Essilor (recently merged) provide various supplies to Luzerne.

u Luxottica is a market leader in the design, manufacturing and distribution of


fashion, luxury, sports, and performance eyewear with high technical and stylistic
quality. Among its core strengths, the companys portfolio includes highly
attractive and prestigious licenses such as Giorgio Armani, Burberry, and Chanel.4

u Paris-based Essilor was created in 1849. They provide global solutions for
correction, protection and prevention to ensure the visual health of over 7.4
billion people across the world. 5

u Gold & Wood and Cartier manufacture their owns eyeglasses.

Intermediaries:

u As previously mentioned, the intermediaries would include boutique optical


shops, Gold & Wood corporate, Gold & Wood shops, Cartier corporate, and
Cartier stores.
Recommendations
Lucerne has experienced tremendous problems with the
launch of emPower. These problem stem from its
mispositioning in the market place. We recommend the
following key actions:

u Position emPower as a luxury item.

u Target those who earn $125,000 plus a year.

u Partner and co-brand emPower technology with


Gold & Wood and Cartier to start with and add
additional luxury brands such as Tom Ford and
Gucci later.

u Use Luxottica-Essilor for product development


efficiencies and relationships.

u Distribution at specialty boutiques, Cartier, and


Gold & Wood shops.

u Use celebrity endorsements.


PROMOTIONS
Citations
1. Luzenre Opical Labratory Inc. Retrieved April 23, 2017, from
http://www.luzerneoptical.com/top-wholesale-optical-labs/new-
products/electronic-eyewear/empower-electronic-glasses.html

2. Kasriel-Alexander, D. (2017, March 24). Update on our Top 10 Global


Consumer Trends for 2017: Ageing: A Changing Narrative. Retrieved from
http://0-
www.portal.euromonitor.com.library.scad.edu/portal/analysis/blogindex

3. Kasriel-Alexander, D. (2017, March 24). Update on our Top 10 Global


Consumer Trends for 2017: Ageing: A Changing Narrative. Retrieved from
http://0-
www.portal.euromonitor.com.library.scad.edu/portal/analysis/blogindex

4. Luxottica. (n.d.). Retrieved May 25, 2017, from


http://www.luxottica.com/en/about-us/company-profile

5. Essilor. (n.d.). Retrieved May 25, 2017, from https://essilorusa.com/about-


essilor