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Molly Brown

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FIVE-YEAR MARKETING PLAN DIFF Eyewear

Table of Contents

1. Executive Summary

2. Company Description

DIFF Eyewear was started by co-founders Zachary Gordon and Chad Jernigan and now has a group of seven employees. The purpose of this company is to provide high quality, handmade sunglasses at an affordable price. DIFF Eyewear believes that everyone should be able to look stylish without having to spend a fortune. DIFF Eyewear has decided to make a difference around the world by partnering with Eyes on Africaa non-profit, non-religious organization that distributes reading glasses to areas in rural Africa that are unable to get basic eye care. For every pair of DIFF sunglasses bought, a pair of reading glasses is donated to the non-profit organization, Eyes on Africa. The reading glasses are then sent to underprivileged villages in Africa where access to eyewear is difficult. In rural areas in Africa, it is important for the local people to be able to see in order to perform essential tasks, such as sewing and weaving to make an income to support their families. DIFF Eyewear believes that a trendy look should be affordable as well as stressing the importance of what it means to give back to the community and to people less fortunate around the world.

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Mission

3. Strategic Focus and Plan

At DIFF Eyewear, we will strive to provide customers with the highest quality sunglasses at an affordable price as well as to give back to the community and to people less fortunate

around the world. “Exceptional shades are no longer just for the wealthy.” Goals

For the upcoming five years, DIFF Eyewear will attempt to accomplish the following

goals:

Nonfinancial goals:

  • 1. To maintain the companies charitable image and raise awareness for Eyes of Africa

through sunglass sales.

  • 2. To partner with other non-profit organizations in order to distribute eyewear to ten

more countries in Rural Africa.

  • 3. To add a line of children’s sunglass by January 2017.

  • 4. To be offered at retail stores, such as Sunglass Hut, and shopping malls across the

United States within five years.

Financial goals:

  • 1. To increase sales by 15% by 2018.

  • 2. To maximize a return on equity by 45% by 2021.

  • 3. To maintain sales costs at an affordable price to stay parallel with the mission statement.

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Competitive Advantage

DIFF Eyewear seeks to achieve a dueling

ability to (1) provide consumers with stylish, hand made,

designer-like sunglasses at more than half the retail price of

typical designer sunglasses as well as (2) provide less

fortunate countries with reading glasses with the help of the

non-profit organization, Eyes on Africa.

Molly Brown Page 3 10/19/2016 Competitive Advantage DIFF Eyewear seeks to achieve a dueling ability to
Molly Brown Page 3 10/19/2016 Competitive Advantage DIFF Eyewear seeks to achieve a dueling ability to

4. Situational Analysis

SWOT Analysis

SWOT Analysis for DIFF Eyewear

Internal Factors

Strengths

Weaknesses

Management

Passionate, skilled entrepreneurs

Only seven employees

Offerings

High-quality, hand-made, charitable sunglasses

More well-known, desired competitors

Marketing

Use of celebrities/charities; consumers can earn money by introducing friends

Limited awareness over the country/ limited advertising

Personnel

Excellent return for how little workforce is

Only two CEOs and seven total employees

Finance

Decreased prices for sunglasses cause more of a desire for consumers

Limited sales return may be negative compared to competitors

Manufacturing

High-quality, handmade- low resale price

Low retail price- how high of quality is the material?

External Factors

Opportunities

Threats

Consumer/Social

Charitable incentive, make money/credit for introducing DIFF to friends

Getting the word out about DIFF to the public, lowering the demand for name brand sunglasses

Competitive

Pair of reading glasses donated with every pair of sunglasses purchased- Charitable sunglasses

DIFF is paired with Eyes on Africa and does not have its own Nonprofit- if anything happens to nonprofit then charitable incentive goes down as well

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Technological

New technology allows consumers to see the website for the nonprofit and enables them to do research about Eyes on Africa

Competitors have been around for about seventy years and know more about the technological aspect

Economic

Trendiness is important to millennials, higher income in younger population

Since income is higher, purchase of name brand sunglasses, such as Rayban, is more accessible

In DIFF Eyewear’s favor, the company prides itself on its strengths- low priced, high-

quality, designer-like sunglasses. A favorable external factor that benefits DIFF Eyewear that is

also one of its strengths and one of the most special things about the company is the charitable

aspect that it provides to its customers. They have paired with Eyes on Africa and a pair of

reading glasses is donated to rural Africa every time a pair of DIFF sunglasses is purchased.

The main weakness that brings down DIFF Eyewear is the awareness of the company and

its benefits around the world. Due to limited resources, DIFF Eyewear’s name is not marketed

how it should be which is hurting the company in the end. Threats include only being paired with

Eyes on Africaif anything ever happened to the nonprofit, the charitable aspect would go

down for DIFF Eyewear as well.

Industry Analysis: Trends in Expensive and Name-brand Sunglasses

Expensive Sunglasses/ Name-brand Sunglasses. According to How Stuff Works when a

person purchases a pair of cheap, the quality of the lens is what is put together poorly and do not

protect the eye from harmful ultraviolet rays that can ultimately damage the iris if overexposed.

Often times the quality of the sunglasses ties in with the name on the brand. Also, cheap

sunglasses do not have the scratch proof lens that higher quality sunglasses do posses.

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The average price of a pair of sunglasses in the United States as of 2015 is $125 and the

number of actual sunglasses sold is 95,900,000 in that year as well.

5. Market-Product Focus

Marketing and Product Objectives

DIFF Eyewear’s marketing intent is to exceed the potential that the sunglasses market has

provided while the company is also spreading awareness about the nonprofit that DIFF has

partnered with, Eyes on Africa. These tasks will be done in the ways listed below:

Current Markets: Current markets will be expanded by stretching the market past social

media and word of mouth within five years. Consumers are now offered a chance to earn

in store credit by sending information to family and friends about DIFF Eyewear. In

return, customers will begin to purchase more than one pair of DIFF Eyewear over a

period of time.

New Markets: DIFF Eyewear will be featured in well-known sunglass retail store, such as

Sunglass Hut by January 2017. Within this year, DIFF Eyewear will be featured in 15

major city markets in the United States. Within five years, DIFF Eyewear will be featured

in 30 markets across the United States, both high populated and suburban, as well as in

several countries in Europe. These new markets will be reached by publicity on social

media.

Sunglasses Industry: Sunglass industry sales will reach $1 million total in sales revenue

within the first year and $1.9 million by the beginning of year 5.

New Products: DIFF Eyewear will also launch new children’s sunglasses line by January

2021

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Target Markets

The primary target market for DIFF Eyewear is young adults, both

men and women, who are looking for stylish, designer-like sunglasses

that are sold at an affordable price. These individuals, more than likely,

will be either be still in college, recently graduated, or just starting their

new life as a young adult. The target audience will be making less than

$50,000 a year and will not have the finances to be able to spend an

Molly Brown Page 6 10/19/2016 Target Markets The primary target market for DIFF Eyewear is young

unreasonable amount of money on luxuries. As of now, these target audiences are being reached

via social media through famous television stars becoming ambassadors for DIFF Eyewear.

Points of Difference

The “points of difference” that make DIFF Eyewear different from any other sunglasses

company fall into the following three categories:

Stylish: DIFF Eyewear has a unique style that is unlike any other designer sunglass

company. The handmade frames have a stainless steel hinges that hold the frames to arms

of the sunglasses. Some of the frames also have designs or are a plain color. The lenses of

the sunglasses have several polarized, scratch-proof layers that are made up of at least

five different colors to give each pair a unique style and color. DIFF Eyewear offers

several different styles that have catchy names such as Dime, Kota, Riley, and Milo.

Affordable: Since DIFF Eyewear’s message is “exceptional shades are no longer just for

the wealthy”, the company strives to keep their sunglasses at least half of the price that

name-brand sunglasses are selling for. Most of their sunglasses range from a price of $50

to $75.

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Charitable: Why not make a difference while wearing stylish sunglasses? DIFF Eyewear

has paired up with the charity, Eyes on Africa, in order to make a difference around the

world. For every pair of sunglasses that are sold, a pair of reading glasses is donated to

rural Africa in areas that are not fortunate enough to have reading glasses in order to

perform daily tasks that are needed for income such as sewing and weaving.

6. Marketing Program

Product Strategy

DIFF Eyewear line contains charitable, up-scale, designer-styled sunglasses at an

affordable cost for a target audience that is contained of young adults.

Product line- DIFF Eyewear, retailing for around $75 (plus shipping) per pair of

sunglasses, is available in several different styles including DIME, KOTA, RILEY, MILO, and

several other stylish looks. DIFF Eyewear offers a men’s and women’s line that contain several

different styles of frames and colors for both the lens and the frame. DIFF Eyewear also offers a

one year warranty on all pairs of sunglasses.

Unique Product Quality- The attribute that makes DIFF Eyewear different from any other

sunglass company is the charitable factor that comes into play every time a pair of sunglasses is

bought from DIFF Eyewear. Not only are you purchasing a designer-like pair of sunglasses for

almost half the cost of most popular brands, but you are also giving back to the community.

DIFF Eyewear has paired with the nonprofit Eyes on Africa. This nonprofit donates reading

glasses to a less-fortunate village in rural Africa where eyecare is not provided.

Packaging- Reflecting on the “cutting edge” marketing strategy, DIFF Eyewear mostly

advertises its product on the internet, and it is sent out in a simple black box that features the

brand logo on the top of the box. It also includes a card describing facts about the nonprofit that

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the company is paired with, Eyes on Africa. This allows consumers to gain a better knowledge

about the benefits of purchasing sunglasses from DIFF Eyewear and not another corporation

sunglass company.

Price Strategy

At $50.00-$75.00 for a pair of trendy sunglasses, DIFF Eyewear is priced remarkably

under its name brand competitors but is also marked higher than off-brand sunglass companies.

With its retail price being right in the middle of the scale for sunglasses, the company is doing

very well marketing to its target audience. Features such as the sunglasses being unisex, having a

nonprofit, CR39 lenses, DIFF Eyewear has significant advantages over its competitors.

Promotion Strategy

Key promotion programs feature demonstrations and booths set up at music festivals

across the United States, coupons for frequent online shoppers, and style tips on social media.

Demonstration booths- Music festivals are continuous throughout the year and several

locations across the United States. The type of crowd that music festivals attract falls directly

targets the target audience- young adults. These booths will allow consumers to try on different

styles of DIFF Eyewear sunglasses on site, as well as provide coupons to make the sunglasses

more affordable than they already are. These demos will be held continuously throughout the

year at all major music festivals and several less popular festivals.

Coupons- DIFF Eyewear offers their coupons via

diffeyewear.com. They call for consumers to help make a

difference by offering $20.00 off when a consumer refers

a friend to DIFF Eyewear’s website. When a friend is

referred, that friend will receive a 20% off coupon for a

Molly Brown Page 8 10/19/2016 the company is paired with, Eyes on Africa. This allows consumers

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pair of sunglasses. Free shipping is offered for all orders that are over $75.00. Finally, DIFF

Eyewear offers a 25% off coupon when a customer becomes an ambassador and shares their

code on social media with their friends. The way that this works in favor of the ambassador is

that every time the coupon code that the ambassadors is given is used successfully on

diffeyewear.com they receive two points towards their cart. Each point can be converted into

$1.50 towards any sunglasses purchased off of diffeyewear.com. In order to use these points, the

ambassador must receive 20 points total and these points will not expire.

Style Tips- DIFF Eyewear has reached out to well known contestants that were competing

on shows such as the ABC’s The Bachelor and The Bachelorette and have convinced these

celebrities to become ambassadors for the company. These people, Amanda Stanton and Becca

Tilley, advertise and help market to desired target audiences and also offer style tips that several

young adults admire and look up to.

Place (Distribution) Strategy

DIFF Eyewear is distributed out of a single warehouse that is located in California. The

distributor buys the products needed to create the sunglasses, assembles the sunglasses together,

and then packages and ships the sunglasses directly out to consumers who have purchased the

product. As sales continue to rise, DIFF Eyewear strives to have their sunglasses featured in well

known sunglass retail stores across the United States. DIFF Eyewear will still only have one

warehouse, which is one feature that DIFF Eyewear is proud of and makes them unique from

their competitors. An advantage in the future moving shipping from just the warehouse and

shipping to retail stores will help market DIFF Eyewear to a larger population.

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7. Financial Data and Projections

Past Sales Revenues

Recently, DIFF Eyewear has had more of an increase in sales as more awareness has

been brought to people’s attention via social media since its creation in 2012. Due to knew

promotion strategies and the use of well known men and women to become ambassadors, DIFF

Eyewear’s sales have shot up remarkably over the past two years. These recordings of sales

revenue will be spotlighted in Figure 1.

Five-Year Projections

The five-year projections for DIFF Eyewear are featured in the table below. These

projections reflect the continuous growth and expansion for the company over the next five-

years. DIFF Eyewear is projecting and expecting to drastically increase their sales between years

2-4.

Projections (000s)

 

Actual

Year 1

Year 2

Year 3

Year 4

Year 5

Financial Element

2016

2017

2018

2019

2020

2021

Sunglasses sold (000s)

456

689

713

824

895

905

Net sales ($000s)

$34,200

$56,700

$78,943

$84,700

$92,120

$95,689

Gross profit ($000s)

$26,789

$34,905

$54,600

$75,400 $79,040

$82,120

Operating profit ($000s)

$895

$905

$1,560

$2,456

$3,460

$5,608

8. Organization DIFF Eyewear’s present organization appears in the graph featured below. It shows the

flow of the command chain from the President/CEO of DIFF Eyewear down to the ambassadors

that help spread the word across the targeted audience.

Founders and CEO- Zachary Gordon and Chad Jernigan

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Seven employees

   

Eyes on Africa- nonprofit

Ambassadors for DIFF Eyewear

As of June 12, 2016, DIFF Eyewear fully operates with seven employees in one

warehouse in California. At this warehouse, all creation, packaging, and distribution of

sunglasses takes place. Ambassadors, costumers who volunteer for this position, are an essential

part in making DIFF Eyewear a newly well-known charitable sunglass company.

9. Implementation Plan

Introducing DIFF Eyewear to metropolitan markets will be a difficult, but reachable, task

given its limited consumer awareness and the fact that DIFF Eyewear only operates out of one

wearhouse in California. Over the next five years, DIFF Eyewear will expand from one

wearhouse to four in different regions around the United States and be a featured brand in 20

metropolitan markets, mainly in major cities. By 2021, DIFF Eyewear will be in the top 20

percent of the top middle class markets in major cities. This rollout schedule is described and

listed below.

Rollout Schedule to Enter New Markets

Year

New Markets Added Each Year

Cumulative Markets

Cumulative Percentage

Today

2

  • 3 3%

 

(2016)

Year 1

4

  • 7 5%

 

(2017)

Year 2

2

  • 9 7%

 

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(2018)

     

Year 3

3

  • 12 9%

 

(2019)

Year 4

3

  • 15 13%

 

(2020)

Year 5

5

  • 20 20%

 

(2021)

New trends will be monitored via social media and magazines to assess whether or not

changes need to be made to any of the products or lines in order to reach the goal of being

featured in the top middle class markets in major cities.

10. Evaluation

Monthly sales reports will be set in place in all major cities and metropolitan areas to

monitor the target sales. Actual sales that do happen will be directly compared to the tactics that

are set in place in each of the selected areas.