Can cooperatives evolve into the mainstream? (CIC Insurance Group, Kenya)
Case Solution
1. EyeSpy
The
Path
to
Growth
and
Innova0on
Deloi+e
Consul0ng
LLP
April
10th,
2015
Philip
Arbaugh
Kanokbhorn
(KK)
Saha
Julianne
Sloane
Chris0na
Xiao
2. Agenda
• Situa0on
• Plan
of
Ac0on
• Replace
POS
• Remove
Unprofitable
Products
• Introduce
Talent
&
Management
Reten0on
Plan
• Social
Media
Marke0ng
for
Brand
Awareness/Social
Responsibility
• Financial
Projec0ons
• Innova0on
Wing
• Vision
2019
3. EyeSpy
Strategic
Ini0a0ves
Point-‐of-‐Sale
Talent
Reten0on
and
Management
EyeSpy
must
launch
strategic
ini0a0ves
and
capitalize
on
innova0on
to
become
a
market
leader.
– Has
seen
a
decrease
in
market
share
since
2010
with
10%
of
the
market
to
2014
with
only
7.5%
Replace
exis0ng
point-‐of-‐sale
(POS)
through
termina0ng
current
vendor
in
9
months.
– Transi0on
into
a
mul0channel,
enterprise
applica0on.
Wes_ield
belief:
“The
age
of
digitaliza/on
is
here
and
now”
Difficulty
aLrac0ng
and
retaining
innova0ve
employees
stun0ng
ability
to
grow
and
scale
quickly.
– Transforma0on
of
corporate
culture
to
bring
in
younger
employees
with
new
skill
sets
that
pave
founda0on
of
long-‐term
company
development.
Situa0on
• Regain
Vantage
Point
• Embrace
the
Future
• Race
Ahead
• Founda0on
for
Growth
• Clarity
on
Customer
Focus
Vision
2019
Market
domina0on
by
Luxodca
S.P.A
with
49.5%
of
market
share.
Na0onal
Vision
9.5%
with
a
focus
on
customers
shopping
on
value,
HighMark
8.8%
focus
on
proprietary
products
and
frames.
Brand
Equity
drives
success.
EyeSpy
needs
to
leverage
new
business
models
in
order
to
regain
market
shares
to
relevant
and
later
emerge
as
a
market
leader
in
what
is
becoming
an
almost
monopolis0c
industry.
EyeSpy
needs:
4. Plan
of
Ac0on
EyeSpy
Cut
failing
prac0ces
Transi0on
Implement
Evaluate
Change Point-of-Sale
(POS)
Establish POS deal with
Oracle
New POS installed,
training program for
employees.
Monitor & Evaluate.
Maintain reliable and
scalable POS.
Eliminate Racer Added investment in
Brody as it shows
fastest growth.
EyeSpy products sold
through new POS
Evaluate sales to keep
only best products in
order to avoid losses.
Resistance to Change Encourage new ideas,
launch new programs
Social Media Marketing.
Create an innovation
wing.
Determine impact of
these new programs.
Change employee
practices
Build relationships for
recruitment with
universities.
Internship, workshops,
recruiting, professional
development.
Created positive work
environment across
generations.
5. Point-‐of-‐Sale
EyeSpy
Oracle
Fujitsu
MicrosoW
Dynamic
MicrosoW
Xstore
Epicor
Realiability
✔
✔
✔
✔
Security
✔
✔
✔
✔
✔
Scalability
✔
✔
✔
Emphasis
on
Digital/
Innova0ve
Op0ons
✔ ✔
✔
In-‐Store
✔
✔
✔
✔
Oracle
is
the
best
op0on
as
it
is
the
closest
match
of
EyeSpy’s
non-‐nego0able
POS
needs.
Epicor
comes
in
a
close
second
but
the
company
has
a
history
of
vola0lity
making
it
not
a
good
long-‐term
op0on.
Fujitsu,
Dynamic,
and
Xstore
do
not
match
specifically
the
needs
of
EyeSpy
(customer
engagement,
interna0onal
presence,
digital
op0ons)
Oracle
is
an
established
and
reliable
tech
company
that
has
the
POS
EyeSpy
needs.
6. Condense
the
product
line
elimina0ng
Racer
as
it
has
not
proven
to
be
profitable.
U0lize
the
money
previously
spent
on
Racer
to
invest
in
Brody
as
it
is
showing
the
fastest
growth.
Herbert,
$110.00
Richard,
$210.00
Racer,
$45.00
Clark,
$185.00
Brody,
$55.00
Revenue
of
Products
(million/year)
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Herbert Richard Racer Clark Brody
ChangeinRevenue
Product
Revenue
Change
of
Product
(Time
Horizon=
5
Years)
EyeSpy
7. Talent
&
Management
Reten0on
Plan
EyeSpy
• University
Recruitment
• Maximize
of
efficiency
by
focusing
efforts
on
West
Coast
and
North
East
ins0tu0ons(As
they
are
the
regions
with
highest
sales)
• Raise
brand
awareness
by
offering
professional
development
sessions
on-‐campus
and
presen0ng
at
career
fairs
Short
Term
• Internship
Program
• Minimize
costs
and
cheaply
increase
produc0vity
• Foster
mutually
beneficial
prac0ces
by
mixing
young
interns
with
experienced
employees.
Long
Term
• Professional
Development
• Promote
growth
in
employees
by
offering
access
to
con0nued
educa0on
(opportuni0es
for
varying
cost
levels)
• Connect
employees
with
management
through
personal
goal-‐sedng
sessions
Short
Term
• Evolu0on
of
Corporate
Culture
• Relaxa0on
of
office
rules
• Integra0on
of
new,
younger
hires
with
old
• Introduce
YouEarnedIt
pla_orm
for
employee
recogni0on
Long
Term
ACQUISITION
RETENTION
Professional
development
will
increase
reten0on
rates
with
older
employees
and
a+ract
young
talent.
Focusing
recruitment
efforts
on
university
campuses
will
bring
young,
innova0ve
employees
that
will
posi0vely
influence
the
workforce
and
thus
the
company
as
a
whole.
8. EyeSpy
#EyeSpy
Build
Brand
Awareness
Increase
Sales
#EyeSpyService
#EyeSpyNature
#EyeSpyFamily
#EyeSpyEduca0on
– Host
‘themed’
Hashtag
Compe00ons
which
encourage
people
to
share
what
they
see
through
their
glasses/promotes
discussion
about
different
issues.
– Build
excitement
about
the
brand
and
sharing
frames.
– U0lize
Electronic
Word
of
Mouth
(eWOM)
&
Consumer’s
Online
Brand
Related
Ac0vi0es
(COBRA)
as
trusted,
third-‐party
source
for
conveying
brand.
– Monitored
by
Allison
Boyd
and
Jason
Nakumura
but
run
in
conjunc0on
to
internship
program.
Introduce
new
marke0ng
techniques
to
promote
EyeSpy
products
within
younger
genera0ons
and
establish
a
corporate
culture
of
social
responsibility.
9. Financial
Projec0ons
EyeSpy
550
570
590
610
630
650
670
690
710
730
750
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Revenue($million)
Year
Projected
Growth
for
2014
-‐
2019
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
RevenueGrowth(%)
Year
Cumula0ve
Percent
Revenue
Growth
• In
FY14,
EyeSpy
generated
$605
million
in
revenue.
With
an
overall
goal
of
20%
growth
in
the
next
five
years,
EyeSpy
has
a
targeted
revenue
of
$725
million
by
2019.
• With
a
new
POS
and
social
media
marke0ng
techniques,
EyeSpy
will
quickly
see
a
revenue
growth.
• Growth
is
expected
to
speed
up
over
0me
as
new
marke0ng
techniques
build
a
stronger
brand
recogni0on
in
the
marketplace.
10. Innova0on
Wing
EyeSpy
• Increased
Demand
from
adults
working
in
visually
intensive
environments.
• Increase
in
myopia
(nearsightedness)
is
expected
to
affect
30%
of
the
popula0on.
• Visual
discomfort
and
related
symptoms
in
computer
workers
considered
growing
health
problem.
• Develop
a
new
‘start
up’
feel
branch
within
the
company
to
work
on
launching
products
targeted
towards
the
future
need
of
glasses
for
computer
use
to
capitalize
on
growing
market.
• A+ract
future
talent
because
‘feel
of
a
start
up,
resources
of
a
corpora0on.’
• Headed
by
Jonathon
Khil,
VP
of
Strategy.
11. EyeSpy
Vision
2019
Regained
Market
Share
-‐>
New
Social
Media
Marke0ng
Strategy/POS
Strategies
for
the
Future
-‐>
Connec0on
to
Social
Causes
-‐>
Poten0al
for
increased
online
sales
New
Avenues
of
Innova0on
-‐>
Innova0on
Lab,
Target
computer
related
eyewear
Scalable
for
Growth
-‐>
Reliable
POS
&
investment
in
future
company
leaders/innovators
Emphasis
on
Customer
Focus
-‐>
Feeling
of
social
good
connected
to
products,
reliable
POS
EyeSpy
is
a
company
of
Growth & Innovation
What
will
they
accomplish
next?
12. Ques0ons?
Presenta0on
• Situa0on
• Plan
of
Ac0on
• Replace
POS
• Remove
Unprofitable
Products
• Introduce
Talent
&
Management
Reten0on
Plan
• Social
Media
Marke0ng
for
Brand
Awareness/Social
Responsibility
• Financial
Projec0ons
• Innova0on
Wing
• Vision
2019
Appendix
• SWOT
• Pricing
• Age
Demographic
• Corporate
Philanthropy
• Organiza0on
Chart
• Age
demographic
by
product
• Risk
Analysis
• US
Store
Sales
Map
• US
Store
Sales
by
Region
Exhibit
• Sources
EyeSpy
13. Strengths
• Emerging
market
that
will
con0nue
to
grow
over
0me
• 4th
top
compe0tor
• Several
key
leadership
members
who
have
track
records
for
change
Weaknesses
• Large
pool
of
compe0tors
• Weak
POS
system
• Low
product
differen0a0on
Opportuni0es
• Emerging
market
that
will
con0nue
to
grow
over
0me
• Growing
percentage
of
people
who
will
need
prescrip0on
eyewear
Threats
• Luxodca
• Not
being
able
to
compete
with
monopolies
• Losing
employees
• Failed
POS
system
EyeSpy
SWOT
Analysis
14. $0
$50
$100
$150
$200
$250
$300
Herbert
Richard
Racer
Clark
Brody
Average
Glasses
Prices
of
EyeSpy
Products
compared
to
Average
Glasses
Cost
Keep
Pricing
Constant
in
the
Immediate
Future
EyeSpy
15. Demographic
Analysis
EyeSpy
<18
15%
18-29
18%
30-39
23%
40-49
18%
50-59
18%
60+
8%
Revenue
from
each
Demographic
16. EyeSpy
will
donate
on
the
customer’s
behalf
1%
of
revenue
from
the
sale
to
CHOICES
Educa0on
Group,
an
organiza0on
leads
presenta0ons
in
local
Middle
School,
encouraging
at-‐risk
students
to
stay
in
school.
EyeSpy
will
donate
on
the
customer’s
behalf
1%
of
revenue
from
the
sale
to
the
American
Optometry
Associa0on
(AOA)
Founda0on
that
is
dedicated
to
expanding
access
to
vision
care
to
all.
EyeSpy
will,
on
the
behalf
of
the
customer,
collaborate
with
the
Oregon-‐based
non-‐profit
Climate
Neutral
Network
to
offset
carbon
emissions
created
in
the
manufacturing
of
the
eyewear.
Optometric Care Education Sustainability
Customers
will,
when
purchasing
a
pair
of
glasses
from
EyeSpy,
will
have
the
op0on
to
select
from
one
of
three
above
philanthropic
selec0ons.
This
will
increase
customer
sa0sfac0on
and
feelings
of
goodwill,
promote
brand
awareness,
and
benefit
the
community.
EyeSpy
Customer-‐Driven
Corporate
Philanthropy
17. Running head
Organiza0on
chart
Customer
Service
Regain
Market
Share
Paul
Innova0on
Wing
Social
Impact
PM
and
Opera0ons
Allison
Marke0ng
Collabora0on
Jason
Finances
Mark
Personnel
Changes
Important
Recommenda0ons
Julia
Technology
Smart/Capable
Thomas
Strategy
ShiW
Jonathan
Marke0ng
Heather
Contact
Lenses
Ben
Sunglasses
Amy
Team
Hierarchy
These employees highlighted a desire for or a proven track record of creating change within their realm of expertise The
changes implemented at EyeSpy should be facilitated by these employees to give them development opportunities and
tangible results for the company.
EyeSpy
19. Risk
Analysis
EyeSpy
Likelihood
and
impact
of
risks
Point
of
sale
system
implementa0on
fails
and
causes
further
delays
in
Eyespy
retail
sales.
Top
leadership
members
leave
their
posi0ons
during
crucial
change
implementa0on
0mes.
• Luxodca’s
con0nues
to
strengthen
its
monopoly
on
market
shares.
• Luxodca’s
created
appearance
of
brand
diversity
decreases
the
impact
of
Eyespy’s
status
as
an
“independent
retailer”
• SunBox
sales
dominate
the
sunglasses
share
of
the
market
causing
Eyespy’s
sunglasses
department
to
lose
revenues.
• Drama0c
increase
in
lasik
eye
surgery
procedures.
• Con0nued
cri0cism
of
online
frame
sales
through
various
media
outlets.
• GlassBox
con0nues
to
gain
small
percentages
of
the
market
share.
Low
Likelihood
High
Likelihood
High
Impact
Low
Impact
20. -5.00 < % < 0.00
0.01 < % < 5.00
5.01 < % < 10.00
10.01 < % < 15.00
15.01 < % <20.00
No data
EyeSpy
Percentage
Change
in
Total
Sales
between
2009
and
2014
(By
Region)
