The reason revision for Situational Analysis is necessary because "THE PRODUCT SECTION OF THE MARKETING PLAN IS BASED ON THE NEW PRODUCT WE INTRODUCED IN THE SITUATIONAL ANALYSIS PAPER. THE SECTION WE SCORED LOW ON IT NEEDS TO BE RIGHT FOR US TO EXPAND ON THE SUBJECT"
THE FUTURE: MARKETING & PRODUCT OBJECTIVES
To counter these internal and external market forces Lux. must set expectations by examining current and target markets and seeking to identify gaps in the market for new products they can launch to fill these gaps.
Current Market
High end brands are currently taking over the sunglass business world. From brands such as Prada, Bulgari, Gucci, Dita etc. who are producing a pair of glasses costing as much as $1200 a pair. Ray Ban, the classic eye wear brand, has raised their prices from roughly $30-60 a pair to more than $200. The wealthy are buying it and Lux. understands this demand in the market.
This gives Luxottica that flexibility to charge whatever they desire. The product they produce for their e-retail platform www.glasses.com with no brand name is the same or fairly similar pair to the product with a brand name. Since Lux. is already ruling the world of high class fashion eyewear releasing thousands of new styles/year they are the recognized source for quality eyewear by many designers, for that reason they attract even more. This continues to increases the current target markets by an even bigger concentration levels in a segment where high prices and high demand lead to optimal profit maximization.
New Product Recommendation We can conclude from Lux's SWOT analysis that the company has some key opportunities from which it can leverage its strengths and exploit opportunities to help equalize the current external threats it faces along with organizational weaknesses. Given Lux's expansive distribution and retail capabilities coupled with the company's competitive advantage as a renowned innovator of fashionable eyewear, it logically follows they can continue to grow their market share by launching a tech-savvy house brand that targets the future of eyewear.
The firm's collaborative efforts with Intel to develop the next generation smart-glasses represents the perfect opportunity for integration with one of the company's in-house brands. Oakley glasses are Lux's second largest house brand with a corporate-wide share of 11% of net sales. By combining R&D for the Intel joint effort Lux. can establish the knowledge base and business intelligence necessary to further expand the narrow and deep market hold that Lux's Oakley brand has in specialty glasses for sporting activities
Launching an Oakley sports frame with the traditional look, feel, and image of an Oakley sunglass, but with a built-in smart-glass chip that has the capabilities to measure vitals. Such as; heart rate, calories burned, distance traveled, the number of steps or miles covered, revolutions per minute of a bicycle, or speed angle and velocity of a tennis or golf swing -- all triggered through a sunglasses interface that is operated by retina interaction. Undoubtedly this is sure to delight sports enthusiasts globally.
Target Market
Rather than athletes having to wear a watch or monitor, they can simply slip on their sunglasses which they already wear for sporting activities. Not only will this tech development enhance the brand's popularity it will take the product to a whole new level of utility. Initially, the Oakley smart glass will target more competitive athletes but is expected to be quickly adopted by mainstream hobby athletes in no time. At product introduction the Oakley smart glasses will be set at a high price, yet competitive with Intel and Google's
version. Targeting the middle and upper-income markets with disposable income. Signing product endorsements with a few famous athletes at product launch will build product notoriety. Bonus features such as current weather conditions will help target consumers
who are enthusiast about new innovations and begin Lux's next generation product phase. Perceptual Mapping Studies by Subcategory (See the Situational Analysis file for the map) Compared to competitor brands Lux's premiere house product which represents 27% of their net sales commands a much higher than average price point based on perceived quality level their target consumers typically associate with Ray-Ban's brand value.