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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
- 18. Demographic Analysis EyeSpy 5.00% 10.00% 15.00% 18.00% 34.00% 18.00% 12.00% 14.00% 29.00% 20.00% 20.00% 5.00% 25.00% 21.00% 22.00% 28.00% 3.00% 1.00% 24.00% 27.00% 21.00% 12.00% 10.00% 6.00% 9.00% 16.00% 22.00% 23.00% 23.00% 7.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% <18 18-29 30-39 40-49 50-59 60+ Revenue (Percent) Demographic (age range) Revenue from Each Demographic by Product Category Herbert Richard Racer Clark Brody
- 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)
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