New Product Proposal Ash Grewal, Cody Burkhardt, Yasmin Lin, Cam Coutin, Natalia Williams

New Product Proposal

Ash Grewal, Cody Burkhardt, Yasmin Lin, Cam Coutin, Natalia Williams

Table of ContentBrand Overview

• Based on prior Brand Audit, key findings are listed such as product category, target market, and positioning.

Opportunity Identification• Product Opportunity Gap model & Brand Audit findings were utilized to identify opportunities based

on social, technological, and economic factors.

Concept Generation• Developed three new product ideas based on market gaps/needs: Ray-Ban Pro, Earth, and Icons.

Concept Evaluation• 3&4 Factor Model, Purchase Intent Model, Value Opportunity Chart, and market research(2 focus

groups + survey) employed to evaluate success of each product.

Recommendations• Ray-Ban Pro in need of further research• Ray-Ban Earth continue with development• Ray-Ban Icons do not continue

Brand Overview

Classic-American Functional Sunglasses

Positioning Statement: Ray-Ban is the only unisex high-end sunglasses brand that fuses Classic-American style with UV protection, targeting 18-25 year olds.

Brand Mantra: Emotional, Descriptive, Category

Ray-Ban

Wayfarer

Young

American

Classic

Style

Red

Badass

Mental Map Perceptual Map

POPs: high-end eyewear, accessory, UV protection, fashion, lenses

PODs: pioneer, unisex, stylish sun-protection

Ray-BanChanel

Generic Oakley

Func

tiona

lity

Style

Concept 1: Ray-Ban Pro

Product Opportunity Gap

Increased snowboarding popularity

Customized products trend

Increased spending on Extreme sports

Go-Pro

Consistently improving snowboard technology

Social

Economic

Technological

http://www.youtube.com/watch?feature=player_embedded&v=A3PDXmYoF5U

http://www.youtube.com/watch?feature=player_embedded&v=A3PDXmYoF5U


Action Adventu

re

FunOriginal

Sports

Cutting-Edge

Go-Pro

Established

American

Badass/Rebel

Classic

Style

Young

Ray-Ban

Ray-Ban

Stylish

Wayfarer

Badass

YoungClassic

American

Cool

Potential Extension Equity

Ray-Ban Pro

Stylish

Badass

Young

Cool

HighTech

Adventure

Speed

Versatile

Sports

Salience Favorability Uniqueness

• Based on our results, we found that the salience was strong in terms of its alignment with Ray Ban but weak in terms of the awareness of Go Pro --- Moderate.

• Based on our results, we found that the favorability was strong for the most part, only faltering where our target markets lack interest in snowboarding/skiing – Strong Moderate.

Points of Difference:• Based on our results, we found that

our uniqueness was our strongest aspect as almost every respondent agreed on its originality – Strong.

3 Factor Model

4 Factor Model

Imagery:. We reinforce the young and cool aspect of Ray-Ban with our new added culture of skier/snowboarders.Performance: Functionality with their high quality UV Ray protectant interchangeable lenses + proven high performance of the Go Pro camera = ADDED CREDIBILITY

Judgment: Modern and High-Tech vs Straying from Parent Brand

Feelings: Added sportiness = fun.

Continue reputation of high quality, stylish eye-wear

Issue: Lack of awareness of GoPro among those surveyed.

Pro: Added associations of GoPro added to Ray-Ban brand

Compelling: Reinforces or Adds CLEAR Meaning to parent brand

Relevant: If it is able to impact judgments/feelings to parent brand.

Consistent: Level of fit with parent brand.

Strong: Ability to change associations for parent brand .

Value Opportunity Low Medium High

EMOTION

Adventure

Independence

Security

Sensuality

Confidence

Power

ERGONOMICS

Comfort

Safety

Ease of Use

AESTHETICS

Visual

Auditory

Tactile

Olfactory

Taste


IDENTITY

Point in Time

Sense of Place

Personality

IMPACT

Social

Environmental

CORE TECHNOLOGY

Reliable

Enabling

QUALITY

Craftsmanship

Durability

OVERALL IMPACT

PROFIT

BRAND

EXTENDABLE

Value Opportunity Chart

Ray-Ban Pro

Purchase Intent

Definitely Buy: 25%Probably Buy: 37.5%

(0.8)(25%) + (0.33)(37.5%) = 32.375%

Atar Model

(Market Share)

Awareness: 100%Trial: 32.4%

Availability: 100%Repeat Rate: 100%

Avg. cost of sunglasses ($165)(100%)(32.4%)(100%)(100%)

= 32.4%

Annual Sales

Forecast

Market Share: 32.5%Projected Annual Category Unit Sales*: 87,139.4

Revenue per Unit: $300

(32.4%)(226,848.50) ($300) =$8,469,950 Million

Sales Forecasting

US Industry Snapshot (2012):• Eyewear Revenue:

$9.1BN• Sunglasses Share:

7.9%• Sunglasses

Revenue: $718.9M• Avg. cost of

sunglasses: $165• ~4,356,970M units

sold in the US

*IBISWorld Report

Based on Survey + Focus Group Responses

Integrated Marketing Communication Strategy

Event Marketing

Social Media Marketing

Print advertisementsPosters advertisements and Point of Purchase placements

YouTube Channel with Videos of the week

Ray-Ban Pro goggles will be sold in all places that one would regularly find snowboarding goggles as well.

Desired Brand Knowledge:

Exposure

Attention

Comprehension

Yielding

Intentions

Behavior

Recommendations #1

Further Research and Testing Required:18.9% of those polled said this line was their favorite. However, 22/26 respondents said they would choose Ray-Ban over the competitor if they had to, indicating more research should be done. We recognize that out of the target market polled, few were skiiers and snowboarders—the target that would actually be using this product.

Suggestions: Further research and testing required.

• Stylish + unique• Added benefit of

camera• Improves brand

awareness breadth and depth

Advantages• Low repeat rate• Few

skiers/snowboarders polled

• Glasses seen as fragile• Strong competition

from Oakley and similar competitors

Disadvantages

Branding Strategy + Extension Type:Ray-Ban Pro

Strategy Extension Classification

Co-brandNew target market

Established reputation

Emphasis on StyleHigh quality, hands

free

Competition Category Extension

Concept 2: Ray-Ban Earth


+ Consumer environmental consciousness

Increased spending on eco-friendly, go-green initiatives

Capability to expand existing technology

Social

Economic

Technological


Nature Conservancy Ray-Ban

Change Initiative

EstablishedEco-

friendly

Diverse

Positive impact

Young

American

Trusted

Classic

Style

Established

• 3 Factor Model: Ray Ban Earth

Ray-Ban

StylishWayfarer

Badass

YoungClassic

American

Cool Ray-Ban

Earth

Stylish

Classic

Wayfarer

Cool

Eco-friendly

Biodegradable

Natural

Useful


• Based on our results, we found that the salience was very strong as our product stayed true to the Ray Ban characteristics. ---Strong.

• Based on our results, we found the favorability of our product to be very strong; the only negative is that some respondents are not attracted to the styles. ---Strong Moderate.

• Based on our results, we found the uniqueness of our extension to be fairly strong for Ray Ban as 87% would choose Ray-Ban over competitors.—Strong

Potential Extension Equity

3 Factor Model

4 Factor Model

Imagery: Stylish, fashionable, eco-friendly

Performance: Benefits of Wayfarer + biodegradable. Questioned the quality of the wood

Judgment: Survey takers “respect the fact that they are producing with recyclable material.”

Feelings: Independent, unique, making a difference

Fitting of the brand, but some people prefer regular Wayfarers

“I would be more likely to buy it because it goes towards a good cause.”




Strong: Ability to change associations for parent brand.

Value Opportunity ChartValue Opportunity Low Medium High

EMOTION

Adventure

Independence

Security

Sensuality

Confidence

Power

ERGONOMICS

Comfort

Safety

Ease of Use

AESTHETICS

Visual

Auditory

Tactile

Olfactory

Taste


IDENTITY

Point in Time

Sense of Place

Personality

IMPACT

Social

Environmental

CORE TECHNOLOGY

Reliable

Enabling

QUALITY

Craftsmanship

Durability

OVERALL IMPACT

PROFIT

BRAND

EXTENDABLE

Ray-Ban Earth

Purchase Intent

Definitely Buy: 50%Probably Buy: 25%

(0.8)(50%) + (0.33)(25%) = 48.25%

Atar Model (Market Share)


Availability: 70%Repeat Rate: 62.5%

(100%)(48.25%)(70%)(62.5%)= 21.1%

Annual Sales Forecast

Market Share: 21.1%Projected Annual Category Unit Sales:

4,356,970Revenue per Unit: $150

(21.1%)(4,356,970) ($150) = $137,898,101

Sales Forecasting



7.9%• Sunglasses



sold in the US

*IBISWorld Report

Based on Survey + Focus Group Responses


Event Marketing

Point of Purchase set ups in sunglass stores.

Social Media + Buzz Marketing Interactive Website Sweepstakes

Print Advertisements


Exposure

Attention

Comprehension

Yielding

Intentions

Behavior

Recommendations #2

Continue with Development:59.4% of those polled said this line was their favorite, and they would be likely to buy it. Competitors unknown for the most part

Suggestions: Craftsmanship + change “blood wood”

• Adds social responsibility and positive impact associations

• Twist on new style• Legitimate partnership

• Limited offering• Cannibalization

Advantages Disadvantages

Branding Strategy + Extension Type:Ray-Ban Earth


Modification of WayfarerSocially

ResponsibleImage & Variety

Innovation Line Extension

Concept 3: Ray-Ban Icons

Product Opportunity Gap “Cult of Celebrity”

Increased spending on apparel by college students

Costly nature of designing, producing, and marketing own lines for celebrities

Ray Ban Sunglasses Technology

Social

Economic

Technological


Music Celebs Ray-Ban

Music Celebs

Diverse Pop Culture

FunExpressive

Music

Celebrated

Established

American

Badass/Rebel

Popular

Style

Young

• 3 Factor Model: Ray Ban Icons

Ray- Ban Icons

Stylish Badass

Young

Cool

Modern

MusicPopular Culture

Diverse

Limited Edition

3 Factor Model


• Based on our results, we found that our salience was fairly strong, most of our respondents agreed that they would see Ray Ban go through with this product. --- Strong Moderate.

• Based on our results we found that our favorability was split with some respondents really excited about the idea and others turned off by it. --- Weak Moderate.

Points of Difference:• Based on our results, we found that

our uniqueness was not that high, some liked the variety of choices, but many just thought the idea was already on the market – Weak Moderate.

Potential Extension EquityRay-

Ban

StylishWayfarer

Badass

YoungClassic

American

Cool

4 Factor Model

Imagery: Celebrities conflicts with classic. Messy + stereotypes?

Performance: 75% of the market research said if they had to choose another brand over Ray-Ban for one of the styles offered they would choose what they considered the competitor style. Lacking performance

Judgment: Messy + high quality + reliable. Less superiority.

Feelings: Outdated and not youthful. Low fun. Sell out.

Inconsistent

There is no indication from those polled indicating this would improve the brand.




Negative: Ability to change associations for parent brand.

Value Opportunity Chart


EMOTION

Adventure

Independence

Security

Sensuality

Confidence

Power

ERGONOMICS

Comfort

Safety

Ease of Use

AESTHETICS

Visual

Auditory

Tactile

Olfactory

Taste


IDENTITY

Point in Time

Sense of Place

Personality

IMPACT

Social

Environmental

CORE TECHNOLOGY

Reliable

Enabling

QUALITY

Craftsmanship

Durability

OVERALL IMPACT

PROFIT

BRAND

EXTENDABLE

Sales Forecasting



7.9%• Sunglasses



sold in the US

*IBISWorld Report

Ray-Ban Icons

Purchase Intent

Definitely Buy: 25%Probably Buy: 37.5%

(0.8)(25%) + (0.33)(37.5%) =32.375%

Atar Model

(Market Share)


Availability: 100%Repeat Rate: 31.2%

(100%)(32.375%)(100%)(31.2%) = 10.1%

Annual Sales

Forecast

Market Share: 10.1%Projected Annual Category Unit Sale*s: 4,356,970

Revenue per Unit: $200

(10.1%)(4,356,970) ($200) =$88,010,794


Print Ads:

Incorporation into website

Sponsored Music Festival User generated content competition

Our celebrity endorsements will also carry our product to fashion+music blogs and gossip magazines . PR representatives will monitor the press.

In store purchase points


Exposure

Attention

Comprehension

Yielding

Intentions

Behavior

Recommendations #3

Do Not Continue With This Line:Least favoriteNot likely to buyNot fitting with brand

Suggestion: Discontinue

• Added target market• Added variety of styles

• Celebrities have their own lines

• Never relied on celeb designs in past

• Selling Out Association• Not reflective of genre

Advantages

Disadvantages

Branding Strategy + Extension Type:Ray-Ban Icons


Co-brandMusic

Artist for each genre

Limited Edition

ConsolidationCelebrities

Line Extension

Documents

New Product Proposal Ash Grewal, Cody Burkhardt, Yasmin Lin, Cam Coutin, Natalia Williams