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Case Study Of Oakley
 

Case Study Of Oakley

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    Case Study Of Oakley Case Study Of Oakley Presentation Transcript

    • Case study of Oakley, Inc. Prepared by Donatas Sumyla 12/14/2004
    • Company Overview
      • Why Oakley?
      • Principal activities are to design, manufacture and distribute consumer products;
      • Products include performance and prescription eyewear, athletic equipment, apparel, footwear and watches;
      • Sold through various locations;
      • International;
      • Has 550 patents and 875 trademarks;
    • Company Overview (cont.)
      • Revenue in 2003 - $521.5 million;
      • Net income after taxes - $38 million;
      • Revenues increasing every year;
      • Major competitors:
        • Nike;
        • Reebok;
        • Luxottica;
      • In 2003 employed 2,456 people;
    • E-Business Marketing Goal and Strategy
      • New Product Development and Distribution Channel Processes :
        • Idea generation;
        • Idea screening;
      • Differentiation through:
        • Category diversification strategy;
        • Distribution diversification strategy;
    • E-Business Marketing Goal and Strategy
      • Products:
        • Great accuracy;
        • Latest technologies;
        • Latest scientific capabilities;
      • Careful selection of the retailers for their ability to add value;
      • Staff education;
      • Focus on introducing new categories and products;
    • New Product Introduction (NPD)
      • Oakley Thump ™ - world’s first performance eyewear combining patented optics with an internally integrated MP3 music player;
      • Launched on November 20 th , 2004;
      • Product launches in international markets too;
      • Expected success;
    • Oakley Apparel
      • Fastest growing and largest newer category contributor for past two years;
      • Approximately 65% of sales generated from international markets;
      • Accessories represent the largest segment of this category;
      • Strong focus on sporting goods;
      • Women’s apparel represents close to 20% of the category;
    • Oakley Prescription Eyewear
      • Focus on ophthalmic frame and prescription lens categories;
      • Launched 7 exclusive ophthalmic frame styles and 3 additional exclusive frame styles in 2003;
      • In-house lens processing labs’ goals:
        • increase capacity to meet demand;
        • provide tighter quality control;
        • provide simplified ordering;
        • Increase margins;
      • Increase prescription penetration;
    • Iacon – Sunglass Specialty Stores
      • A sunglass retailing chain located in Scottsdale, Arizona;
      • Operated 80 mall-based stores/kiosks;
      • Sunglass Club – a new Iacon concept targeted towards outlet malls;
      • Oakley products increased from 28% of Iacon sales for 2001 to 32% for 2004;
      • Opportunity to expand retail operations and receive experienced retail management team;
    • Financial Overview
    • Financial Overview
    • Financial Overview
    • Financial Overview
      • Key Growth Drivers :
        • Development of electronics;
        • Proprietary advancements in eyewear technology and new styling;
        • Enhanced product assortment combined with an expanded distribution network;
        • Company-owned retail store expansion;
        • Strategic marketing initiatives;
    • Primary Stakeholders
      • Customers
      • Investors
    • Value Bubble
      • Attracting phase;
      • Engaging phase;
      • Retaining phase;
      • Learning phase;
      • * Mostly refers to Oakley’s website;
    • Attracting
      • Has website to let people know about the company;
      • Well known brand;
        • Good positioning and branding;
        • Focus on younger crowd interested in winter and extreme sports;
      • Content on the website;
        • For customers;
        • For investors;
    • Engaging
      • To keep a visitor on the website;
      • Precise info about the product;
      • Toll-free number available for not technology savvy people;
      • Quick description of Oakley’s O Store®;
      • Easy navigation;
      • Categorization;
    • Retaining
      • Easy to navigate website leaves a customer happy and willing to come back;
      • E-Newsletter;
        • War Room News ;
        • New Product Releases ;
        • Holiday Purchases ;
      • Privacy concern is a big issue for Oakley;
      • Focus on Customer Service;
    • Learning
      • Through newsletters;
        • Gathering information;
      • Email:
        • Feedback and comments;
        • Helps in upgrading or enhancing the website;
      • Toll-free numbers;
        • Gives a one-to-one contact with a customer;
    • Conclusion
      • Will likely to be successful;
      • At least for another few years;
      • Reasons:
        • The sales forecast is looking good;
        • Company focuses on NPD and distribution expansion;
        • Positioning as a leader of the market;
      • Questions?