LensCrafters: LensCrafters: From Brick to From Brick to

Click Click William AramonyWilliam Aramony

Andrew ArdiniAndrew ArdiniKerwin BaileyKerwin BaileyTodd BurachTodd Burach

Leonard Carter Jr.Leonard Carter Jr.Emily ChapmanEmily Chapman

Industry SummaryIndustry Summary

Brick and Mortar: LensCrafters, Eye Brick and Mortar: LensCrafters, Eye Care Centers of America, Emerging Care Centers of America, Emerging Vision (Sterling Optical)Vision (Sterling Optical)

Online Dependant: eyeglass.com, Online Dependant: eyeglass.com, 39dollarglasses.com39dollarglasses.com

Discount Click and Mortar: Sam’s Discount Click and Mortar: Sam’s Clubs, BJ’s Wholesale ClubClubs, BJ’s Wholesale Club

Market TrendsMarket Trends

Wholesalers Entering the Eyewear Wholesalers Entering the Eyewear IndustryIndustry Sam’s Clubs: Bought in Bulk (at least a Sam’s Clubs: Bought in Bulk (at least a

dozen), reading glasses for less than dozen), reading glasses for less than $7/pair$7/pair

BJ’s Wholesale Club: BJ’s Wholesale Club: Increased Competition from Brick and Increased Competition from Brick and

Mortar CompaniesMortar Companies LensCrafters forced to buy out LensCrafters forced to buy out

PearleVision to maintain market sharePearleVision to maintain market share

Market TrendsMarket Trends

Online Companies Becoming ProfitableOnline Companies Becoming Profitable Eyeglass.com has been profitable since 2001Eyeglass.com has been profitable since 2001

Over 10,000 hits per dayOver 10,000 hits per day 1-800-contacts.com had $169 million in sales 1-800-contacts.com had $169 million in sales

in 2002in 2002

Retail Brick and Mortar LaggingRetail Brick and Mortar Lagging Same Store sales down 1.1% in Luxottica Same Store sales down 1.1% in Luxottica

Retail DivisionRetail Division No Growth past two years in same-store No Growth past two years in same-store

LensCrafters salesLensCrafters sales

From Brick to ClickFrom Brick to Click

Success of other companies on the webSuccess of other companies on the web

Immediate Advantages Immediate Advantages Increase in salesIncrease in sales New found interestNew found interest

Long Term AdvantagesLong Term Advantages Supply Chain ManagementSupply Chain Management Financial ResourcesFinancial Resources Integration with other divisions of LuxoticaIntegration with other divisions of Luxotica

Possible Online Possible Online Strategies to UseStrategies to Use

Online catalogsOnline catalogs Personalized GlassesPersonalized Glasses Virtually trying on glassesVirtually trying on glasses Eye Exam OnlineEye Exam Online Bot to help you search the siteBot to help you search the site

Supply Chain Supply Chain ManagementManagement

COMPETITIVE ADVANTAGE (Long COMPETITIVE ADVANTAGE (Long Term)Term)

Decrease in inventory in storesDecrease in inventory in stores Decrease in costsDecrease in costs On demand salesOn demand sales Learn more, faster about customersLearn more, faster about customers Will help CRMWill help CRM

Customer Relation Customer Relation ManagementManagement

Strategies to Gain and Maintain Strategies to Gain and Maintain CustomersCustomers Frequent Buyer ProgramFrequent Buyer Program

Relation to Frequent Flyer ProgramsRelation to Frequent Flyer Programs Introductory Online Sales DiscountsIntroductory Online Sales Discounts

Second Connection to Continental AirlinesSecond Connection to Continental Airlines Online Appointment SystemOnline Appointment System

Success of Syracuse University SystemSuccess of Syracuse University System

Marketing the New Marketing the New StrategyStrategy

International CapabilityInternational Capability Luxottica’s SCM Luxottica’s SCM

In-store for website In-store for website Website for storesWebsite for stores

Search Engine PartnershipsSearch Engine Partnerships

Future SuccessFuture Success

Brick to mortar strategy has reached Brick to mortar strategy has reached potentialpotential Future growthFuture growth

Online Sales must be utilizedOnline Sales must be utilized

SourcesSources Lenscrafters.comLenscrafters.com Eyeglass.comEyeglass.com 39dollarglasses.com39dollarglasses.com Business WeekBusiness Week Luxottica.comLuxottica.com Hoovers OnlineHoovers Online Yahoo! FinanceYahoo! Finance Samsclub.comSamsclub.com Brandweek (powered by Looksmart)Brandweek (powered by Looksmart) ComputerworldComputerworld Altavista BusinessAltavista Business FortuneFortune ForbesForbes Google Partnership ProgramGoogle Partnership Program Continental AirlinesContinental Airlines