MMK101 Segmentation, targeting, Differentiation and Positioning Strategy
MMK101 Trimester 1 2019
1. Background
1.1 Industry overview
In lieu of the industry of eyewear in Australia, where selective brands operate, and compete with one another, a report up till June 2018 depicts positive, “value” growth, where fashion trends have displayed a consistent impact on consumer behavior, constantly maintaining and re-shaping market conditions in this dynamic environment(International 2019). Ray Ban remains a premium brand stocked by Luxottica Australia, which maintains a market lead in the sunglasses industry by stocking all premium products, compared to its counterparts in the sunglasses industry. Additionally, international companies characterize an important segment of Australian eyewear, with a positive growth rate expected in the forecast of growth (International 2019). This prevalence of international brands can be noted via the variety in the brands that are stocked by Luxottica. A fast-growing competitor in the industry is Sunshades Eyewear, which is contributing extensively to fast value growth. Hence, in the Australian sunshades industry, two dominant market players exist. A recent development that has occured is that Ray Ban has recently opened its own retail outlet in the city of Melbourne in Australia, meaning they are ready to tackle the market need, by their own personal outlets, coupled with Luxottica.
1.2 Company description
Ray Ban Australia is not only an important sunglasses trend, but it derives its importance from its premium product range in general, as an internationally recognized leading brand in fashion, the value attached to Ray Ban is one recognized universally. With its most latest feature allowing customers to create their own sunglasses via a customizing option, it becomes a further value-added product, pertaining to the premium segment. The Company itself focuses on stylish eyewear products, ranging from all diverse kinds of eyeglasses to customized sunglasses. With its Titanium, Ferrari and Blaze collection, Ray Ban is ready to innovatively tackled any former brand, as it becomes a stylish and dynamic substitute for its sunglasses counterparts (Australia 2019). Its other retailer which is Luxottica remains the market giant when it comes to retailing branded sunglasses (International 2019). But after the opening up of Ray Ban’s own store, Luxottica will also become a competitor.
1.3 Competitors description
For Ray Ban, serving as a market leader brand is sales, even when being supplied among other brands in Luxottica, has an industry rival which is an equally premium outlet as Luxottica. Amongst brands, Ray Ban competes with top-class brands like Chanel, Burberry and Miu Miu (Company 2019). The main advantage that Ray Ban has compared to other brands, is that its affiliation with the world’s best premium brands supplier Luxottica over Sunshades Eyewear. The second advantage that Ray Ban has over its competitors in Australia, is that unlike Chanel and Miu Miu who focus on an entire range of products from skincare, to shoes, to clothes, Ray Ban is solely focused on Eye Wear which makes it a premium, one-track product. Ultimately, this is more desirable for the consumer as it offers them the ability to cater to their needs specifically. An example being customized sun shades, catered exactly to the consumers’ choice.
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1.4 The company’s current strategy:
1.4.1 Current market offerings: The company currently offers eyewear everyday glasses and sunshades as well. Their sunshades collection is the most diverse, as they literally offer customers the ability to customize their sunglasses exactly according to their requirements. Additionally, with their Titanium, Ferrari and Blaze collection, Ray Ban is ready to innovatively tackled any former brand, as it becomes a stylish and dynamic substitute for its sunglasses counterparts (Australia 2019)
1.4.2 Current target market in Australia: The company’s current target market is the youth who can afford to buy the product. Usually professionals, and a particular segment of the youth, comprising of ages above 30. The major segment is of them, who retain their uniqueness and style via the products of Platinum, Ferrari and Blaze, by using a product that reflects class.
1.1 Justification of the segments
The segments carry massive potential to boost the brand image, coupled with Ray Ban’s ability to customize provides it the massive edge of becoming a premium cum mainstream product via increasing its market share to market dominance by penetrating the young adult and mid 20s market. This will add onto its already present consumer base in the 30-40 ages. There are also celebrities who wear this very dominantly, and this trend can be best translated into by targeting the young adults and the mid 20s youth.
