Honing a Growth Strategy to Triple Profits for a Major US Eyewear Retailer
Client Situation
Our client was a major U.S. eyewear retailer who had historically focused on growing the profitable eyeglasses market, resulting in a less-than-fair-share of the retail contact lens market. In addition, their contact lens offerings, service levels and pricing strategies were out of alignment with retail brand strategies, causing confusion among contact lens consumers. The retailer sought to develop a comprehensive in-store and online contact lens growth and pricing strategy that leveraged existing retail brand strategies and identified new demand and pricing opportunities among contact lens consumers.
Demand Strategy Approach
TCG built a Demand Landscape to learn more about the contact lens demand segments including motivations, behaviors, demography, spend/purchases, channel affinity, and openness to our client's products. We recommended targeting strategies for each of the client's retail brands, consistent with each brand's strengths and the key benefits sought by the contact lens consumer. We also determined the client's performance against key online and bricks-and-mortar competitors, advising which key gaps to close and which strengths to leverage. A CDA quantified the growth opportunities, providing the optimal market pricing for each retail brand, across a range of contact lenses. The CDA also optimized the retail portfolio strategy in order to maximize total profit across the client's retail brands.
Results
- Identified the six motivationally distinct segments in the Contact Lens Landscape
- Determined the opportunity for each of the client's brands to deliver and "own" consumer-relevant space in the contact lens market
- Identified a significant opportunity to grow contact lens and eyeglasses revenue and margin, using contact lenses as a lever to triple the company's contact lens profit and increase overall profit by nearly 30%