Gordon Tsai | Jonathan Ong

Keerthan Harish | Alexander Parker

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Keeping You In Sight

13 Feb 2015

Agenda

Background Slides 3 - 4

Recommendation

Retail / Organizational Strategy

Point-of-Sale System

Talent Management

Slides 5 - 21

Timeline Slide 23

Financials Slides 24

Conclusion Slide 25

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“[We want to] maintain [our] commitment

to creating fashionable and affordable

eyewear for customers.”

- Peter Westdale, CEO

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Competitive Landscape

Market Share Targets:

Luxotica and National Vision

We offer a cheaper designer

alternative to the traditional

luxury brand Luxotica

National Vision is our closest

competitor by target market

and pricing. Online

promotions allow customers

easier access to our product

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Recommendation

Twenty20 cares about YOU

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Recommendation

Twenty20 cares about YOUYOUR Eye health

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Recommendation

Twenty20 cares about YOUYOUR Fashion

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Recommendation

Twenty20 cares about YOUYOUR Budget

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Recommendation

POS SystemTalent

Management

Retail /

Organizational

Shift to younger,

cost-and-fashion-

sensitive

customers

Fujitsu Global

Store POS meets

requirement for

light, retail-friendly

POS

Drive

accountability,

change company

culture

Strategy

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Three-pronged push to shift our focus onto a new demographic of younger

customers:

Retail / Organizational Strategy

Health Fashion Budget

Inform customers about eye

health and importance of

checkups (ACA)

In-store eye-care specialists

Introduce Richard

Revamped (R-Squared),

customizable new line

Invite guest designers to

design brands each year

(higher end)

Provide cost-sensitive

customers with affordable

options

Introduce high-volume line of

eyewear

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Why Young Customers?

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Why Young Customers?

Middle-income

young adult

20 – 25

year olds

$50,000 -

$100,000

income

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Growing

market

Cost-

sensitive

Why Young Customers?

Large online

population

Frequent

turnover

Health needs

Middle-income

young adult

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State-by-State Opportunity Index

100% 0%

% customers fitting our ideal profile

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Metropolitan Opportunity Index

100% 0%

% customers fitting our ideal profile

Factors:

Population

Age

Kids

College

Income

Insurance

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People will have access to vision services from

the Affordable Care Act in the next five years

Strategy - Health

25 millionYoung adults under age 26 stayed with their

parents’ plans in 201315 million

WHO?

Push the importance of yearly eye checkups through social

media and traditional channels

HOW?

Offer discounts on eyewear to encourage yearly checkups

Send periodic reminders about checkups to increase

retention

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Strategy - Fashion

Richard RevampedR-Squared: Your Taste, Your Budget.

Richard has proven success with younger crowd

Configurable color and frames

Build online platform to offer customization options

Guest DesignersMeet fashion needs of less price-sensitive crowd

Yearly rotating designs

41% of young adults prefer stylish, designer frames

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Strategy - Budget

Of consumers age 18 - 24 would replace glasses

more frequently if they were less expensive50%R-Squared as a high-volume line, which will lower costs

Use prescription results to send personalized offers

Technology

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Comparison of POS Systems

MetricsEpicor Retail

Store

Fujitsu

GlobalSTORE

POS

Microsoft

Dynamics

Micros

Systems

Xstore POS

Oracle

Retail POS

Scalability / Cloud

Online Integration

Depth of

functionality

Cost

Security / Reliability

Ease of use

Strong Weak

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Fujitsu GlobalSTORE POS

WHY?

Features tailor-

made to meet the

needs of a small to

mid-sized retail

company

Proven POS results

for retailers (Mark &

Spencer, Nordstrom)

Cross-platform

capability for

flexible

implementation

Easy of use means

quick training for

store associates

Powerful promotion

platform will help

push our health-

centered discounts

Enhanced data

security helps us

protect patient and

payment

information

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Fujitsu GlobalSTORE POS

HOW?

Estimated implementation period4 months

Estimated implementation cost$600,000

In-store feedback about product design can be used by the design

team to create a Twenty20 that is more responsive to consumer taste

Human Resource

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Human Resources – Short Term Goals

Drive AccountabilityHOW?

Team-based

rewards

Merit-based

system

Incentivize employees

to sell as a team

Profit-sharing as a

percentage of

regional performance

Promote employees

based purely on merit

Promotion criteria

published firm-wide to

promote transparency

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Human Resources – Short Term Goals

Change CultureHOW?

Team-based

hiring

Emphasize

core value

Incentivize referral

system

Retail location hiring

based on 2/3 vote

Company’s core

message of “Keeping

you in sight”

Image as a socially-

conscious brand will

attract top talent30-day trial

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Proposed Restructuring

President

Alison Boyd

CFO

Mark Colfer

COO

Jason Nakamura

CTO

Thomas Stuart

CMO

Heather Sanchez

Director of HR

Julia Feinberg

Director of Strategy

Jonathan Khil

President, Contacts

& Eyeglasses

Division

Benjamin O’Leary

President, Design

To be filled

President,

Sunglasses

Division

Amy Powell

Financials & Timeline

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Timeline

Evaluation

1 2 3 4 5

Strategy & Operations

Health Care Promotions

R Squared Brand

Guest Designers

Technology

Point of Sale System

HR

Short term - Accountability

Long term - Culture

Key Metrics:

Revenue

Same-store sales

Customer retention

Employee retention

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5-Year Discounted Cash Flow

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Conclusion

POS SystemTalent

Management

Retail /

Organizational

Jon walks in for a

complimentary

checkup and talks

with store team

We keep track of his

prescription and we

send him a

promotion, he buys

Increased teamwork

fosters innovation,

Jon’s comments are

sent to design team

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Recommendation

Twenty20 cares about YOU

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Recommendation

Twenty20 cares about YOUYOUR Eye health

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Recommendation

Twenty20 cares about YOUYOUR Fashion

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Recommendation

Twenty20 cares about YOUYOUR Budget