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Case Studies

Objectives The case has been prepared to help you to appreciate the following: What is an agency brief and what are its various components To profile the market Segments and select the most attractive by carefully analysing the interpreting consumer data Selection of communication objectives and development of a communication strategy to achieve a desired response. Structure 2.0 2.1 2.2 2.3 2.4 2.5 Objectives Introduction Agency Brief The Need Communication Strategy Discussion Questions



In this case an attempt has been made to help you to appreciate the campaign planning process. This case is in two parts. The first part is the agency brief, in which the company has tried to analyze the marketing problem. The company feels that because Ray-Ban is technologically superior in quality, and recognized by the consumer as such, a product change is not required. The brand is seen as expensive, but the same consumer does pay as much of a premium for top-end brands in other product categories. Therefore there is a need. for the communication to change this consumer perception. The second part of the case is on communication strategy as proposed by the advertising agency, has analyzed and described the complete `planning cycle'.



Ray-ban was launched in India in mid-1992. Today the brand is doing reasonably well, but still has to cross the main hurdle. 2.2.1 Historical Background In 1930 the first Ray-Ban lenses were developed for US Army Air Corps fliers - this was the genesis of Ray-Ban's most popular/keystone design known as "Aviato". Rayban sunglasses became the preferred choice of Hollywood stars at one end, and outdoorsmen (pilots,' policemen, yachtsmen, fishermen, hunters, etc.) at the other end. Technology of B&L Bausch & Lomb, the manufacturer of Ray-Ban, has been a leader in the designing and quality manufacturing of optical frames and lenses for over 100 years. They follow strict quality and technical requirements –

Case prepared by Dr. Ravi Shanker , professor, IIFT for class room discussion only


The Ray-Ban sun-glass must Absorb or reflect at least 65% of visible light. Provide 100% ultra-violet protection Meet American standards for colour recognition, to ensure safe driving, etc. 2.2.3 The Market The sun-glass market in India is largely under-developed: The organised sector is very small - it basically consists of international brands like Ray-ban (Rs. 1000+) and large local brands like Monalisa and Sunlit. These sunglasses are priced anywhere upwards of Rs. 350. The unorganised segment has two types of players: (a) About 1000 small-scale manufacturers selling sunglasses between Rs.80 and Rs 400. (b) Dealers and hawkers selling products made in Taiwan and Hong Kong and sold as "Ray Ban". 2.2.4 The Brand Ray-ban is a premium international brand - it's competitive advantage is derived from superior technology and an established brand name. 2.2.5 The Competition Ray-Ban in India, competes not with other sunglasses, but with premium brands from other categories. This is because it is not necessary that a person who purchases a premium brand in a particular category will want to or be able to do so in other categories - there is a trade-off done by the consumer between premium brands in different product categories. What therefore becomes important is the priority of the category in the purchasing basket. Sunglasses figure low in the list of priorities of premium personal products, as shown in table 1.
Table 1: Prioritization of Purchases

Ray-Ban Sunglasses

Item Camera Designer-wear Quartz watches Leather briefcases Sports accessories Shoes (premium) Walkman Perfume Sunglasses (Premium) 2.2.6 The Consumer

Rank 1 22 18 17 10 11 6 7 5 4

Not Ranked 56 54 48 65 74 68 75 79 83

Mean Score 1.0 1.0 1.0 0.7 0.6 0.0 0.5 0.4 0.3

The marketing department of B&L did research to determine the demographic and psychographic profile of Ray-Ban owner. The composition of the target universe is given in Diagram 1.


Case Studies

The Ray-Ban owner profile is: Male 20-45 years, educated Businessman/executive/student More affluent (durable ownership, air travel, foreign trips) Likes to pamper self Early adopter of durable Fashion/style/appearance conscious Likes to be distinctive in a crowd A “Yuppy”or a "Puppy" Table II gives the demographic profile and other characteristics of sun-glass owneers v/s Ray-ban owners v/s Non-owners (intending to buy a sun-glass at Rs. 501+) v/s Non-owners (not intending to buy).


Ray-Ban Sunglasses


Case Studies

The marketing department of B&L has analyzed all the above data and arrived at the following conclusions: A product change is not required because Ray-Ban are technologically superior in quality, and recognized by the consumer as such. The brand is seen as expensive, but the same consumer does pay as much of a premium for top-end brands in other product categories. Therefore there is a need for the communication to change this consumer perception of "Nice, but not necessary". Therefore value-for-money perception `Indian' as good as `imported' Ray-ban is more than a sun-glass Positive word-of-mouth

A typical planning cycle has five stages. Each of the stage, for Ray-ban has been analysed and the details are as follows:



Where are we in the market?

Ray-Ban Sunglasses

It is being estimated that the market size for sunglasses is about 80 thousand pairs. However, the penetration of this product is only 500,000 pieces, i.e. only 6% of the Target Group. It was interesting to observe that the other personal goods had high penetration levels. For example, the quartz watches had 72% penetration and even the imported cameras had a penetration level of 24%. Ray Ban (India) was not doing well and its sales for the period Jul-Dec 1992, were 28,000 units and for Jan-Dec 1993 were 110,000 units, only. In terms of pricing, the prices of Ray ban were not too high as compared to the imported sunglasses and the other personal goods. Price Range (Rs.) Sunglasses Price Range (Rs.) Sunglasses Price Range (Rs.) Sunglasses Local 150-400 Local 150-400 Local 150-400 Pirate 50-800 Pirate 50-800 Pirate 50-800 1,340-2,320 Ray ban Ray ban 1,340-2,320 1,340-2,320 Ray ban 1,200-35,000 Imported/Smuggled 1,200-35,000 Imported/Smuggled 1,200-35,000 Imported/Smuggled Other Personal goods (Indian) Other Personal goods (Indian) Other Personal goods (Indian) Other Personal goods (Indian) 600-1,800 Other Personal goods (Indian) Premium sports shoes 600-1,800 Premium sports shoes 600-1,800 Quartz watches 500-10,000 Quartz watches 500-10,000 Quartz watches 500-10,000 Shirts 300-800 Leather Briefcases 1,000-4,000 60-1,300 Cologne 2,000-30,000 Still Camera (Imported) Walkman 800-3,000 1,200-12,000 Woolen suit-length In terms of Distribution, the Ray Ban Sunglasses were available is more than 50 percent (170 out of 310) class I towns. However of out-lets were the opticians shops. 2.4.2 Where are we in the mind of our consumer? Sunglasses were generally seen as Eye-wear (Fashion), and not Eye-care (protection). Even the eye-care role was perceived as "block glare and dust". Perhaps it is because of these reasons the Ray ban sunglasses were low on priority v/s other fashion goods, like; designer apparel, quartz watch, camera (imported), cologne, leather briefcase, walkman, premium sports shoes, sports accessories. The awareness about the brand is low (36 percent). Even those who were aware, had a diffused image. Most of them felt that the prices are high and for such a high price, they do not see any clear rational benefit. 2.4.3 Why are we there? The reasons could be many. Let us examine each. Distribution - the fishing net: Is it too small? As only 450 opticians are being serviced, out of 10,000 available. Perhaps, we are. fishing in the wrong sea also. We have only 50


Case Studies

non-opticians outlets as against 450 opticians. More importantly, we are wrong on the core benefit as we are selling "Eye-wear" in an "Eye-care" ambience? The distribution system thus adopted is distancing us from our consumers and restricting the enquiry levels. The low enquiry levels are hi fluencing the low margins and low R.O.I. which in-turn affecting the dealer involvement, oecause of lower enquiry to sales conversion. Dealer motivation could be lacking at a phase when our market is in its infancy and needs high dealer push. Pricing : For all other personal goods or commodities, the customers have a basic and rational need for an intrinsic benefit. Also, the consumer weaned from `commodity' to `brand' for a marginal premium and therefore smart companies introduce luxury/premium sub-brands, only after the success of entry-level brands. There are many such examples, like, Bata -to- Hush Puppies, Titan -to- Royale, Wings -to- Blue Lagoon, etc. However, in the case of Ray-Ban, the customers have a low perceived need for the product, with the availability of low-cost options. Therefore, the suggestions is that there is a need for concept selling at high entry price. Communication: Mere were quite a few inconsistencies in the launch campaign. Firstly, the creative strategy was altered. In line with its international image, the launch campaign tried to create associations with "Power/Success". But the follow-up advertising shifted focus to rational performance benefits, creating a diffused positioning? Secondly, the media selected had low reach amongst the target group in the NonMetro cities, resulting into a low awareness of Ray Ban? Thirdly, "discount" sale and promo items used by Delhi dealers were not synergistic with Ray ban image. Finally, the product related problems created a negative `word-of-mouth' to an extent that Ray Ban's value was suspected. 2.4.4 Where do we want to be? The Marketing objectives, for Ray Ban were to have a greater share of the `personal goods' market in India. It was targeted to achieve a sale of 200,000 units, through a stronger and focused campaign aimed at creating a brand values in the select target segments. It was also felt necessary to overcome price - sensitivity of consumer and shield Ray Ban from future international competition. 2.4.5 How do we get there? It was proposed to broaden the product range. Starting with the Wayfarers at the lower end of the market for teens/women and on the other extreme the General in a price range of Rupees 8000/-. By doing so the company can expand the market and protect the market from the multinational brands. Other models - Leathers, Fashion Metal, Shooter are for the variety. More importantly, better quality should be ensured and frame problems must be eliminated, which, in the past, created a negative WOM. There is also a need to build showroom traffic for existing outlets. This can be achieved through innovative consumer promos, contests, etc. In the long run, for better display opportunity, the distribution strategy should shift focus to non-optical outlets, This in-turn, might induce trials and trials may result in sales. To increase the dealer motivation, it was proposed to organize conferences, performance awards, in addition to providing selling aids at outlet.
Our Market: The Consumer --•- Redefined

Salaried Executive Professional Bureaucrat Total 3,40,000

Self Employed Doctor C.A. Lawyer 3,00,000

Businessmen Shopkeepers Small-business Industrialist 14,30,000

Uniformed Services (Officers) Armed Forces Police Para-military 2,00,000


Let us take a close look at each of the segment

I. Salaried Executive/Professional Ray-Ban Sunglasses Success in career for financial security, social respect and status are their motivations in Iife..A majority of them draw hedonistic pleasures by smoldng, drinking, looking attractive (clothing, shoes, cologne, fitness, etc.) and having a 'luxurious' lifestyle but they get a taste of it on company's expense. Their 'want' Portfolio is as follows: Personal Household Self Wife Children Entertainment Others Consumables/Recurring expenses Liquor Cigarettes Cologne Toiletaries Clothes Shoes Health/Fitness _ Durables Sports Accessories Briefcase Clothes Pocket money Shoes Bags Cosmetics Toileteries Beauty Saloon Health Education Clothes Shoes Toys Pocket money Toileteries Health/Fitness Watch Cycle TV VCR Partying Eating out Visiting Relatives Picnic/Holiday Club membership Transport (Petrol) Rent for house Outstation Travel Telephone Servant Food

Ray-Ban Sunglasses

Jeweller Personal Appliances (hair dryer)

Cooler Air-conditioner

Two-in-one Heater (music-system) Camera Watches Fridge Sunglasses Gas Stove Pen Oven Travel bags Furniture Food processor Furnishings Crockery Cutlery Bath Fittings Geyser, tiles etc. Car/Scooter Washing M/C Water Purifier However, the, executive's 'Dilemma' is that they have limited disposable income which is in adequate to satisfy their too many needs and wants. They are challenged by inflation on one hand and introduction of newer and better products, in established and familiar product categories. They can't afford an indulgence that calls for high immediate pay-out. Once married, indulgence products for self take even lower priority. Still the Executive. is a Ray-Ban prospect. They are likely to be in early 30's and a DINK (Double income no kids). To such a segment, there is a need to push Ray-Ban from purely an indulgence product to, also a 'need' product, and in view of their monetary constraints we cannot expect a larger number of them a buyer of Ray-Ban. 2. The Self-employed Professional They are characterized by higher education with the independence and creativity to 'create their own world, who resisted the easy option of corporate job. Some of them have the ability to influence powerful people, like politicians and industrialists and reap the rewards of money and connections without the risk, otherwise inherent in business. They cannot afford to antagonize irksome clients, but they have the option of not to work for them. They value the self-respect of their fellow professionals and would like to hold office in their industry's Association or Federation.

Walkman ,.



Case Studies

However, the things that make his work easier are the air-conditioned office, luxury car, good office furniture, cordless and cellular phones, credit cards, overseas holiday, etc. They enjoy these things for their own sake and they are not exhibitionists. They are very conscious of their health because For them, time is money and the cost of sickness can, therefore, be loss of earnings in addition to medical costs. Their mind is sharp because their work requires constant analysis. In brief, a self-employed professional is a good prospect of Ray-ban due to the following reasons: Highly educated (post graduate) High disposable income Respectable in society Value conscious buyer -.makes intelligent choices 3. The Trader -- Entrepreneur Hiving achieved success from scratch without the benefit of higher education, he has the confidence of his instinctive commercial skills. He has achieved monetary security and he now nurses the dream of a business empire that his son will help realize, like Birlas, Tatas and Ambanis. His psychological insecurities like, respect and acceptance in society for himself and his family, however, are yet to be overcome. His money is for admitting his children into the `right' schools, his wife into the right kitty party, and himself into Lions/Rotary club or a trade body or into local politics. His prize possessions include a house and a car which are sufficient to communicate his individuality. He has the money power to surmount the power of that section of the salaried class that influences his business, like the Bureaucrat, the Purchase Manager, the Police etc. He has a disguised contempt for them and thinks tha they can be `bought'. To him his employees, are people who must be used and yet guarded against because they are ungrateful souls who will leave him for a few pieces of gold, or worse, steal from him. His desire for respect makes him place a premium on his employees' loyalty over their ability. He is the latter-day feudal overlord in his small kingdom. He envies and respects the self-employed professionals' ability to use their brains to solve' his problems and make money "off him". His Chartered Accountant, Lawyer and Doctor are therefore desirable social peers for him, as well. His ego is nurtured, not by his appearance but by his wealth and his power over people. If at all he exercises, its because of his doctor's advice and not for his women. He knows that if not more than by good looks, women can he attracted by money and power as much. Therefore he thinks, 'if you've got the power you don't have to be pretty'. As Ray Ban prospect, a shopkeeper, small-business owner or industrialist is not really aware of Ray-Ban - especially in non-metro towns, where the potential lies. They do not see Ray-Ban as being part of his "power" accessories. This segment is high "potential in waiting" but can be tapped. As this segment is characterized by low education, high disposable income and a need to display wealth because of an inner drive to achieve respectability. 4. The Uniformed Adventurer There are quite a few in this segment. Let us examine each of them. 4.1 The Officer: The idealist. The Romantic Warrior. The Protector. The Leader of Men in a Man's World. A Comrade-in-arms. The fountain head of cultural icons that the `Civvies' (Civilians) embraced so realidy. His prize possessions are the jeep, the parajacket, the lace-up boot, the haversack, the gun, the cravat, and the Ray-Bans. 4.2 The Gentleman: Chivalrous dutiful, honourable, impeccably behaved, a stickler for 'punctuality' and discipline. An extrovert, a socializer and a `charmer' of women. A repository of British culture and expects meals to be eaten with a fork and knife. 4.3 The Misfit: "Civvies" are people he looks down on and, therefore, life amongst them is a traumatic experience. Nothing works without bribery. The respect he gets as his


due turns to indifference to his being - by people who at best, would JCO's in the Forces - Electrician, Telephone man, Plumber and Policemen. The trader is the archetypal Adulterating Expert, the Young Professional an Overpaid Smooth Talker, the bureaucrat a Pompous Pen-Pusher and the businessmen or industrialist a Ruthless Wheeler-Dealer who in connivance with the "Polician" is selling everything he almost gave his life to protect. All of them would speed past a dying road-accident victim-callously and thus leave one of `their own' too (A Civvie) to be saved by the Fauji. The Fauji saves `Civvies' from floods, and earthquakes and also risks his life to keep them from killing each other, because the police - the politicians are inefficient and corrupt. They strongly believe that the country can run properly if handed over to the forces. 4.4 Uniformed Officer : Lastly the Uniformed Officer, for whom is a Ray Ban part of the uniform, b lit because of low disposable income (except Police), as Ray Ban prospect, they are "pre-mild" but cannot afford type

Ray-Ban Sunglasses

As the marketing chief of B&L, or as the brand manager of Ray-Ban, critically analyse the proposed communccation strategy. Q.l Do you think that the prapositions made by the agency have a strong `consumer insight'? Q.2 By carefully studying the data about the Indians Consumer Market, given in the Annexure 2.1, develop the profile of a segment at which you would like to target Rayban. Give reasons/justifications also. Q.3 If your budget is limited and you wish to re-launch Ray-Ban for the coming season, what would be your communication objective(s) and how would you go about achieving it (them).


Case Studies


Ray-Ban Sunglasses


Case Studies


Ray-Ban Sunglasses


Case Studies


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