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Presentazione Digital Transformation Luxottica
96
Students:
Caterina Fiume
Sabrina Ginestra
Luca Lacedra
Stefano Schirone
PROJECT OF DIGITAL TRANSFORMATION
AND
DIGITAL MARKETING
ABOUT US
ABOUT US
Luxottica Group is a leader in the design, production and distribution of high-end, luxury and sports eyewear, with a strong and well-balanced brands portfolio both owned and on license. In total the Group deals with 40+ brands
OUR HISTORY
The name "Luxottica" comes from the union between "Light" (=in italian "Luce") and "Ottica" (=Optics in italian).
During a great period for the online sales across the world, Luxottica invested in digital platforms such as: Sunglass Hut, Oakley e Ray−Ban with innovative services; between them there is the possibility to customise iconic models
In this year the company experienced the development of the wholesale distribution, with the opening of the German associate company, leader in the glasses production sector
Luxottica went public in the Milano Stock Exchange
2000
2008
1981
OUR HISTORY
1961
2002
1990
Luxottica was foundend by Leonardo Del Vecchio. The society produced accessories for industries that were operating in the optical sector
Luxottica introduced STARS (Superior Turn Automatic Replenishment System) in order to manage the products choice, to plan the supplies and automatic reassortment of the supplies in the points of sales
The Group went public in the New York Stock Exchange
OUR MISSION
OUR MISSION
Luxottica’s mission is to protect the eyes and enhance the faces of men and women in the world, creating the best glasses possible to satisfy customers, interpret the tastes and aspirations of consumers. The Group pursues this mission ethically and responsibly, committing all energies, skills and experiences, deeply aware of how much glasses are indispensable for the well-being of people. To work, read and communicate a personal style. To grasp the beauty of the world around us and of life in all its aspects
"To see the beauty of life" is also the vision that inspires Luxottica’s sustainable way of working and is an integral part of the Group’s strategies. Born from an idea of universal beauty, visible to everyone, which is reflected in the search for a balance between the well-being of people, respect for the environment, ethics and transparency of relationships
OUR NUMBERS
1000
Registered Patents
80000
91 Mln
(about) employees across the globe
Glasses produced
OUR
150+
€ 10,739 Mld
NUMBERS
Countries in which Luxottica operates
Total revenue, +13,12% compared to 2019
OUR BRANDS
LUXOTTICA'S DIGITAL TRANSFORMATION
DIGITAL TRANSFORMATION
Innovation and continuous improvement are a priority in Operations, the productive heart of Luxottica. The automation of the processes, the experimentation of the most advanced technologies, the efficiency in the distribution and an accurate quality control system to guarantee the high quality standards "made in Luxottica" are some of the instruments adopted.
In the following slides, we pointed out the most important changes endorsed by Luxottica; however, we wrote a separate document in which we deepened the aspects of the Digital Transformation.
LEAN PRODUCTION, allows you to manage a production just in time optimizing waste to the maximum
The introduction of the Lean System in factories has drastically streamlined and made production processes more efficient, reducing any type of waste. At the same time it has changed the approach to work and the way of thinking
3D PRINTING, also known as additive manufacturing, consists of a series of processes that allow the production of objects by adding material in layers corresponding to the successive cross-sections of a 3D model
MANUFACTURING
Thanks to the prototyping and production in 3D printing, the company has made it possible to create some components to support the final product. Thanks to HP’s 3D Jet Fusion 3D printer, you can create plastic and metal prototypes with functional parts
Digital Surfacing Technology is a revolutionary technology for the design of the prescription lens
This system allows to realize geometries with high precision and to obtain an exceptional level of customization, using a sophisticated system of software applications and state-of-the-art tools.In-Mold labelling (IML) is the process of decorating plastic articles through the use of customized films that are conglobated into the piece itself during production
Mobility-as-a-Service enables multimodal mobility by providing user-centric information and travel services (navigation, location, booking, payment, ...) hence allowing mobility as a seamless service across all transport modes
The company adopts an innovative handling automation system consisting of smart robots (Automated Guided Vehicle) guided by a software that provides instructions to pick up the pieces from the roller conveyor and deliver them for labeling on time.
Modularisation, in supply chain management means breaking up of a greater whole into interchangeable parts that fit together seamlessly
LOGISTICS
The company has adopted a modular architecture regarding the speed of delivery, varying the times in function of the requirements and the expectations of the customers in the various segments of market
DROP BALL test: is specific for crystal lenses. A steel ball of 16 millimetres in diameter is dropped from a height of 1.3 metres above the lens which must not break, crack or deform
FATIGUE test: verifies the correct operation of members and hinges to ensure maximum resistance, subjecting the members to thousands of opening and closing cycles without causing breakage, discontinuity or malfunction
Frames advisor is an innovative training and training program that allows opticians to transform the purchase of glasses into a unique and enjoyable experience for the customer. By studying the morphology and characteristics of the faces the optician becomes the trusted consultant
Ray-Ban Remix is an online platform that leverages the potential of digital channels and e-commerce to create new connections with consumers. It offers the possibility to customize your iconic model Ray-Ban choosing frames, rods, colors, lenses, to create a unique glasses
SERVICES
Virtual Mirror Technology: Looking at the camera, you can observe yourself wearing the desired glasses; the reproduction accompanies the movements of the head reproducing in a three-dimensional way the effect that you would have live
PROFESSIONAL FIGURES
PROFESSIONAL
FIGURES
NEW
PROFESSIONAL FIGURES
Brand and Communication Manager
AI and Machine Learning Specialist
Project Manager
Head of User Experience Design
Process Automation Specialists
Concept Design Manager
For the need to explore the horizons, they created new roles: professional figures which have a technical-scientific training as developers, graphic designers and digital creatives who were once very distant from eyewear.
Alongside traditional creatives, Luxottica is increasingly looking for engineers, computer scientists and programmers able to shorten the distances between industry and consumer.
Information Security Analyst
Trade Marketing Account
Data Analyst
Digital Transformation Specialist
Business Analyst
Sunglass Hut E-Commerce Director
Financial Analyst
Service and Solutions Designers
ENGAGEMENT:
To maintain high engagement, Luxottica has launched initiatives such as One Sight, in which with a Marketing organisation called hUOVO, studies with the company an artistic/ craft activity that involves all employees, making live an unprecedented experience.
People could play with design, reinventing glasses as masks.
STAFF ON DEMAND:
HP and LUXOTTICA have closed an agreement for the management of the environment of their data center. They will work to create a more agile, secure and scalable technology infrastructure that helps Luxottica migrate to a cloud computing environment. The company’s journey to a cloud computing environment focuses on standardization to reduce risks and improve governance of IT operations
EXPONENTIAL ORGANISATION
ALGORITHMS:
Luxottica has implemented a new platform that will feed information in real time. Thanks to a "COVID-19 algorithm", the company will ask workers to provide and update through a questionnaire a set of information useful to classify contexts and behaviours at risk, to be crossed with other significant variables, such as daily epidemiological data of municipalities of residence or domicile
ALGORITHMS:
Created by the company, the "proximity badges" help employees observe social distance, managing anonymously any contacts at risk. Equipped with a digital sensor to signal with an audible alarm the exceeding of the minimum distance of 1.5 meters. Each employee will be identified in the system by an encrypted code and will over time generate their own history of close contacts at the workplace
IMPLEMENTATION
DIGITAL MARKETING
DIGITAL MARKETING
Internet's ubiquity and the growing importance of Social Media have transformed the means of communication between Luxottica and its interlocutors. Communication is no longer simply the production of one-way information, but has become a three-dimensional conversation between brands and consumers, between consumers and consumers, and between consumers and brands. Luxottica intends to participate in this conversation and encourages its interlocutors to comment, share and participate.
In the forthcoming slides we will analyse the CRM's adopted solutions, their use of the SAP software, their approach regarding the Digital Marketing Mix, the Netnography analysis and lastly, the Digital Marketing plan.
SAP SE is a German multinational software corporation, that develops enterprise software to manage business operations and customer relations. Luxottica uses the SAP's features in two different ways:
1. SAP Retail - SAP Customer Data Platform
SAP Customer Data Platform bridges online and offline data to help you understand your customers and deliver relevant, trusted, and personalized engagements.
Its key benefits are: increase revenue, build trust and reduce compliance risk and boost customer acquisition, retention, and loyalty.
2. SAP Apparel and Footwear
SAP for
LUXOTTICA
SAP Sales Execution for SAP Apparel and Footwear is a solution for contract, quotation and order management including integrated sales order processing. It is multi-channel, including mobile devices and e-commerce (B2B) capabilities.
It is a highly integrated and comprehensive solution developed by SAP and industry leaders to meet the particular needs of the clothing and footwear industry of today and tomorrow. It puts clothing and footwear companies in complete control of their supply chain and helps them monitor their complex processes, regardless of time and location.
Multichannel Promotion:
DIGITAL MARKETING MIX
- 209.718 Followers
- 194.905 Likes
- Average shares 350 per post
- Luxottica hardly responds to comments
- 50.571 Followers
- Average views per post 120
- Luxottica publishes almost 1 post per day
- 3.190 Subscribers
- 1.500 Views per video
- In 2020, 11 videos were updated
- 666.204 Followers
- Average likes per post between 280 and 1.400
- Average views per post between 2.500 and 14.400
- 186.000 Followers
- 1736 Posts
- Average likes per post: 2.300
- Average comments per post 30
- Luxottica hardly responds to comments
Product as a Service: Try-On Technlogy
Virtual Try On is a technology that has no equal in eyewear and represents a leap forward for the industry, allowing you to try virtually and comfortably from your smartphone and PC all the models available and choose in a few steps your own look.
Starting from the chosen model, the program allows you to:
- match your favorite lenses
- add an engraving (art engraving)
- customize the case with an engraving of your choice
Digital Marketplaces
It is not possible to purchase Luxottica's products on its website, but as you click on hypertext links the website sends you back to the official site of the various brands. There are lots of digital resellers of their glasses, and the most important ones are: Amazon, PianetaOcchio, Ebay, Occhiali.it, Luxotticaminio, Glance 24 and Edel-Optics.
TO BE CONTINUED...
Dynamic Prices
As we can see the Luxottica's glasses frames have different prices on each website advertised on Google, and regarding this pair of glasses the prices starts from 115,70 € and goes beyond the 154 € threshold.
Smart Packaging
Luxottica has begun to promote a real "Culture of sustainability" that embraces various research and development projects. These include projects relating to the circularity of materials and sustainable packaging. The focus on sustainable packaging, however, focuses on the use of recycled fabrics and materials for the production of cases.
- As we can see, we recorded some comments from Luxottica's Facebook page, and the majority of them were informal. Moreover, the firm has international customers, and this could be acknowledged by their different nationalities
- Lastly, the mentions hit their peak on March, due to their social media initiatives that were published on several platforms such as Facebook and Instagram
NETNOGRAPHY ANALYSIS
- On the graphs that are shown in this slide, we could assume that of the 594 mentions, 274 of them are positive, whereas 49 are negative.
- Furthermore, the overwhelming majority of mentions were recorded on the Web, 1/4 of them on the News, and a little minority on Blogs, Forums, Videos and Podcasts.
BRAND 24 ANALYSIS
- The last picture shows that Twitter is not used by Luxottica, and as declared before the Web represents the biggest source compared to others
Market and product Development Strategy
Luxottica's pursuing a Product Development Strategy and the firm decided to undertake several improvements in order to adding value to existing products and increasing product range:
- More recently, a factory was inaugurated mainly dedicated to the production of details for frames and decorations.
- To increase the range of products, the production of clothing, footwear and masks under the Oakley brand has been outsourced.
- Lastly, Luxottica has implemented the Apple Pay payment system which makes payment transactions even safer and faster, thanks to the simple use of the touch ID of the iPhone or iPad.
DIGITAL MARKETING PLAN
Business Model
Among the competitive advantages that underpin the Group’s past and future success, the vertically integrated business model built over the decades plays a key role. Vertical integration in the production field has been progressively accompanied by expansion in distribution - first wholesale, then retail and more recently in e-commerce.
Production control today allows the Group to ensure the highest quality of products and processes, introducing innovations, identifying synergies and optimising service, quality and costs.
Segmentation and Targeting
At the international level, the industry of this sector is concentrated mainly in two geographical macro-areas characterised by a diversified production. On the one hand we have the countries of South-East Asia and Latin America that make 50% of the production with low-end products; on the other hand, we have the European and North American producer countries that are dedicated to medium-high and high-end products. The eyewear sector, as anticipated, is a bulwark of Italian manufacturing excellence for reasons related to both the historical past and the present industrial.
Multi-channel distribution strategy
TO BE CONTINUED ...
The principal distribution channels are: Wholesale, Retail and E-commerce.
- Wholesale distribution covers more than 150 countries around the world, with around 50 branches in the main markets and around 50 independent distributors in the least developed markets. The main customers are retailers of mid-high and high-end glasses, such as independent opticians, optical chains, shops specializing in the sale of sunglasses, department stores, duty-free and online operators.
- The strength of the retail brand portfolio allows Luxottica to reach every market segment, thanks to a variety of differentiating elements for consumers. As of December 31, 2018, the retail network comprises 7,164 owned stores and 1,963 franchised stores.
- Luxottica’s e-commerce strategy is based on the penetration of new markets. In China, for example, the Group has made strategic alliances to open Ray-Ban and Oakley stores within Tmall, the country’s largest online platform.
Multi-channel communication strategy
Luxottica uses different methods to communicate with its customers, but the most important one is the CRM. The same customers who receive newsletters or promotions via e-mail from Luxottica find new stimuli on external platforms, more frequented and social. This has allowed the company not only to propose itself on new channels more devoted to interaction, but also to awaken inactive contacts on the e-mail channel, which may instead be active on the web. The result of this approach is an increase of 119% of people intercepted on the total list of contacts, with an increase of 22% in the intention of purchase.
Online communication mix
LASTLY
...
Luxottica's performance concerning its marketing approach generated a steady trend with only 3 peaks in 2012, 2016 and 2017 as the latter graph shows. The overwhelming majority of "clicks" comes from Europe as it is showed in the first graph.
Assessment of organizational capacity
Among the "7 s" model factors, thee most important ones for Luxottica are : Skills and Staff. This is due to the fact that the main forces of development are training, through an ample selection of courses, and regular feedback and performance evaluations. Luxottica offers each employee the tools and opportunities necessary to reach his or her own potential through a growth plan, thereby meeting both personal and professional characteristics and needs.
CRM's ADOPTED SOLUTION
To sum up:
- Luxottica has changed their approach from a traditional set-up to a Programmatic one, as a strategic leverage for successful communication. Before this, they had a separate targeting Ops (Media and CRM) whereas now they use an integrated system
- In 2016 they adopted a new platform named DMP that guarantees a Holistic view of customer targeting, with the aim of maximising consumer knowledge
- The programmatic helps the company to understand its customers by providing them with relevant content. Furthermore, it allows them to see where their customers are and to talk to them throughout the customer journey
- This new approach helps them to understand the data stored in their database system (Consumer Engagement Big Data)
- It provides reactivity on results (real time and daily)
- There is data ownership across all its dimensions
Books and Web References
BOOKS AND WEB REFERENCES
https://www.luxottica.com/it
Beltrametti, Guarnacci, Intini ,La Forgia, 2017. La Fabbrica connessa. La manifattura italiana attraverso industria 4.0
https://arts.units.it/retrieve/handle/11368/2847269/54034/6_DeLuca_Innovazione.pdf
https://www.datamanager.it/news/luxottica-sigla-un-accordo-di-outsourcing-con-hp-43441.html
https://enlyft.com/tech/products/sap-for-apparel-footwear-afs
https://news.sap.com/2014/04/customer-focus-in-eyewear-retail/
https://trends.google.it/trends/?geo=IT
https://brand24.com/