LensCrafters 2007 Annual Report Download - page 38

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Licensed Brands
Luxottica Group is the leading operator of licensed brand stores in the United States and Canada,
with a network, at the end of 2007, of 1,338 locations in Sears, Target and BJ’s Wholesale.
Each of these brands offer consumers the convenience of taking care of their optical needs where
they shop and has a precise market positioning. Sears, a department store with a vast and
heterogeneous customer base, has further improved the services that were launched in 2005. Ray-
Ban, in particular, was introduced in all 886 stores. In general, sales growth in Sears Optical stores
was higher than that of Sears’ total sales.
In 2007, Target Optical, which appeals to fashion-minded customers, reported improved sales
performance in its 296 Target stores, which operate in America’s big cities. Efforts were focused on
improving service and consulting by the sales personnel (new “take it and try it” sales method) as
well as strengthening its fashion positioning by offering brands such as Vogue and Ray-Ban.
The license with BJ’s Wholesale terminated effective March 2008 since the brand was no longer in
line with Luxotttica Group’s licensing strategy.
OPSM, Laubman & Pank, Budget Eyewear
In Australia and New Zealand, Luxottica Group operates three specialist prescription brands:
OPSM, Australia’s top eyewear brand for luxury and fashion-minded customers, Laubman & Pank,
provider of high quality eyecare and services, and Budget Eyewear, focused on price-conscious
consumers. The three brands operate in all of Australia’s states, (especially in cities), while OPSM
operates in key areas of New Zealand as well. At the end of 2007, Luxottica Group retail
prescription stores were 511 in Australia and 40 in New Zealand.
Results in 2007 were very positive (sales up 6.3%) due to a brand positioning strategy, a product
assortment geared to the fashion segment, an innovative store format (the Accelerated Fashion
program highlighted its fashion positioning) and personnel training. Luxottica Group consolidated
its leadership in the Australian market through organic growth and acquisitions, even though the
retail market was not particularlystrong.
In the prescription segment, the objective was to differentiate the positioning of the three brands in
order to cover complementary market segments with product offerings catering to the needs of
different consumer categories. In 2007, consumer communication was stepped up thanks to a
Customer Relationship Management program. Improved understanding of customers and
initiatives helping consumers perceive eyewear as fashion accessories helped OPSM achieve a
significant increase in sales and consolidate its position as the best known brand on the market.
Laubman & Pank’s reputation with Australian customers as an optical fashion brand was further
strengthened as promotional programs clearly positioned the brand as a national chain. Research
showed that the brand was perceived as having a special focus on eye health, thanks to a series
of initiatives, including TV campaigns and the Lauby’s EyeMobile national screening program,
which conducted eye tests for 9,000 kids in 2006. The brand also launched a new channel to
market by launching four concession stores in major Australian department store chains.
Budget Eyewear managed to extend its product offering while remaining the preferred destination
for those wanting quality eyewear at lower prices.