Luxottica should promote the concept of individualism through its promotional campaigns. This concept of individualism includes three classes of young generations, namely children, young people and young parents. For every group belonging to this young generation lot, Luxottica has something exclusive to offer in the form of a wide range of its optical products with a blend of local preferences. Thus it can be implied that Luxottica’s product strategy should largely based on the consumer behavior while keeping in view the cultural norms and market conditions prevailing in different countries of the world (Scruton 2007). Price setting Strategies Setting price of a product is determined by many factors and these factors may vary across different regions. Apart from the fact that the manufacturers costs of bringing a product into a useable form plays a decisive role in setting the price of a product, there are many other factors which are not under the control of the manufacturer. First of all, consumer behavior plays a significant and leading role in determining the price of a product. In countries where the income levels of people in general are not high, price plays the most important role in determining the success of a product or sometimes of a business as a whole. Consumers’ preferences for expenditures on any product are not necessarily influenced by its usefulness, quality and branding; the ability to pay for a product and the satisfaction which the use of a product yields are regarded as major factors responsible for the success of a product. Apart from this, the social and cultural norms prevailing in a society have a...
This report stresses that considering the market data provided by the case study of Luxottica, it is imperative that franchising the business would lead Luxottica to reduced control over the sales and distribution network. Franchising the business would not only cause ambiguity in the supply chain management but also increases the costs involved in making the product available for the customers. Presenting auctions for franchising and continuous management of franchised business is considered to be a costly initiative by a business.
This paper makes a conclusion that the company may look for and implement alternative distribution strategies which offer some new avenues and can attract people from all over the globe. In this regard, it is recommended that the company shall add to its existing distribution channels an online distribution source or platform, form where the company can interact with the whole world through the World Wide Web and this approach will add a complete new dimension in the existing distribution channels for the company. The major benefits of distributing through online platform are that it is cost effective and is able to attract large number of consumers due its omnipresence on the globe. Moreover, the company may find it relatively easy to control its distribution activities through online channels as compared to the existing channels of distributing its products. Thus, online distribution channel can be recommended as an alternative distribution channel for Luxottica.