warby parker - mbacasecomp.com · assumptions: 1) growth continues to double/year 2) boutiques are...
TRANSCRIPT
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Warby Parker Odette School of Business
Ryan Donally
Evgeni Gentchev
Taylor Laporte
Bilal Rammo
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Issue Identification
• How to continue to meet our social commitment of distributing eyeglasses to those in need in a sustainable way? What decisions need to be taken in order to retain their growth momentum?
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Recommendation
• Three pronged approach • New Corporate Headquarters
• Increase Number of Physical Store Locations
• Further Cause Marketing Efforts
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Agenda
• Strengths and Opportunities
• Weaknesses and Threats
• Competitive Advantage
• Alternatives
• Weighing the Options
• Recommendation Advantages
• Financials
• Implementation
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Strengths and Opportunities
Strengths Opportunities
Socially Conscious Brand Equity Superior Customer Service Low Cost Distribution Accessible Price Point Quality similar to industry leaders Partnerships with non-profits
Expand product offerings Increase social commitment Brand Recognition Geographical Expansion Changing Consumer Demands
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Weaknesses and Threats
Weaknesses Threats
Brand Awareness Cost of One to One Model Relative Low Margin
Price/Quality Perception Economic Sustainability Mature Market
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Competitive Advantage Valuable
Rare
Inimitable
Non-Substitutable
Exploitable
Customer Service
Product Quality
Business Model
Price of Product
Online Distribution
Brand
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Alternatives
• Status Quo
• Extend Product Offerings
• Increase Number of Physical Locations
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Weighing the Options
Economic Sustainability (40%)
Social Commitments (10%)
Brand Image (30%)
Brand Awareness (20%)
Totals
Status Quo 2 2 2 2 2.0
Extend Product Offerings
1 2 1 2 1.3
Increase Number of Physical Locations
3 3 3 3 3.0
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Recommendation Advantages
• Increasing Brand Awareness
• Experiential product engagement
• Extending culture of Warby Parker
• Increasing Sales
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Assumptions: 1) Growth continues to double/year 2) Boutiques are 50 sqft. Outlets 500 sqft. 3) $2927/sqft on outlets (80%). $585/sqft (20%)
Revenues by year and per location
2010 2011 2012 2013 2014
In $ $ 3,333,300.00 $ 6,666,600.00 $ 13,333,200.00 $ 26,666,400.00 $ 53,332,800.00
qty sold 33333 66666 133332 266664 533328
$/sqft
Sales per location Type
Online (%) $ 16,187,024.00 61%
Boutique (8) 50 585.44 $ 234,176.00 1%
Outlet (7) 500 2927.2 $ 10,245,200.00 38%
Financials
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Revenues Expected per new location:
Units Sold per day
Revenues per location New Locations Total Revenues GM Profits in 2013Boutique 29,272.00$ 8 234,176.00$ 15% 35,126.40$ Outlet 1,463,600.00$ 7 10,245,200.00$ 25% 2,561,300.00$ Online 16,187,024.00$ 50% 8,093,512.00$
Units sold per day Per TypeOnline 443.48 443.48Boutique 6.42 0.80Outlet 280.69 40.10
Financials
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Implementation
• 5 Part Implementation – 4 Years Plus • 1- Marketing Strategy- Day 1 Onwards
• 2- Expansion of Secondary Corporate Office and Distribution Center- Year 1
• 3- Addition of 8 Boutique/Retail Locations- Year 1
• 4- Expansion of up to 8 Direct Retail Locations- Year 2 though 4
• 5- Warby Parker Cause Retailers- 2 onwards
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Marketing Strategy
• Click and Mortar & Brick and Mortar • Augmented reality technology • Establish web presence via social media (Facebook, Twitter, Pinterest, etc.) • Emphasize sustainable social commitment (Profit, People, Planet)
• Online product forums • Advertising campaign revolving around one-to-one business model (corporate
social responsibility) • Allocate 5 million dollar marketing budget
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Secondary Office
• 1 Year Completion approx.
• Location Determination- (research, contracts)- 8 Weeks
• Set Up- Week 9 through completion
• Costs • Set up- $100K (Desks, Chairs, Networks)
• Labour - $1 Million (20 ee’s @ $50,000)
• Rent- $75,000/ Yr. ( 5000 sq.ft. $15 Per Sq Ft.)
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Boutique/ Retail
• 1.5 Years
• 10 Weeks Per Set Up- 8 Stores
• $10,000 training, set up and misc. expenses
• Expected Revenue of $29,272 per store
• “Test Markets”
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Direct Retail
• 1-3 Year Timeline
• Converting boutique markets into Direct Retail Outlets
• Expected Revenue of $1.463 Million- 14,636 Glasses
• $500,000 Labour- (20 ee’s @ $25,000 avg.)
• Rent – $100-$500 sq. ft. -500 Sq. Ft. $50,000-$250,000
• Design- $500,000 approx.
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Warby Parker Future
“Cause Retailing”
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Thank You
Odette School of Business
Ryan Donally
Evgeni Gentchev
Taylor Laporte
Bilal Rammo