Industry Analysis For Optical Express Co Marketing Essay

The group known as optical express founded in 1991 after rapid grown of the company it become a leader in the field of hospitality and health services and specially in optics, laser eye treatment and all the range of eye care accessories.

Since entering the refractive surgery market Optical Express has focused on delivering exceptional quality of clinical outcomes and customer service experience to become the number one provider of laser eye surgery in Europe.

Furthermore, Optical Express offer intraocular lens (IOL) treatment to their patients with three treatment clinics and 11 consultations canters across the UK. They employ over 2500 staff at more than 230 locations and this unparalleled geographical coverage ensures convenience for pre and post-operative patient appointments.

Optical express now become a leader in optics and known as innovators in optics technology around the world. Optical express providing great customer services and higher a fully trained staff for their customer, they also providing opportunities for their staff globally. All of the employees are fully dedicated to their work and responsibilities. They are fully aware of the technology and are experienced in their own way.

As laser eye technology is becoming popular all around the world, Optical express proved itself as a great provider of laser treatment with commitment to dedicated services? Their business is depends on customer and eye care solutions matters for people as it’s the matter of vision, therefore they are committed to provide patient satisfaction with full safety.

Vision & Mission Statement

Vision Statement:

We lead in the global elective healthcare industry through utilizing the most advanced technologies, scientifically analyzing our clinical outcomes and by working with the pioneers, innovators and opinion leaders in the healthcare industry.

Mission Statement:

Our mission is to grow and develop our network of clinics globally and provide the highest quality science based technically superior products and services that enhance people’s lives.

We deliver on this by fostering a work environment that values and rewards integrity, respect and performance while contributing positively to the communities that we serve.

Marketing Strategy:

Marketing strategy is really a tough task for any organization to develop. Without this you will have to work very hard to attract your customer or in other words we can say to attract your customer an organization should have a very strong marketing strategy. In the preparation of your organization marketing strategy you should take care of customer ideology according to your products and which should be suitable to any customer demands and perceptions in future. The purpose of your strategy should be able to rectify and then communicate the advantages of your business offering to your target audience.

Optical Express Marketing Strategy:

Optical express is no doubt a huge group and has got very strong market reputation over their customer and target market, instead of having such a high standard market they are still working hard to promote their market and meet the customer requirements, their strategy is design in such a manner that after launch of every new product they aware their existing market first to educate them about their new products, for this purpose they have the marketing research strategy, first they do the market research by a questionnaire, and then according to the customer response they implement the customer choice on their product. To have your marketing strategy handy any organization must have posses a effective marketing plan which obviously come after designed your marketing strategy. Optical express does the same and designed their marketing plan in the eye of their marketing strategy. Four points in their strong marketing strategy are as follows:

Low Cost Strategy: Based on market research before launching your product critically evaluate your competitors and launch your product just according to customer needs.

Differentiate Strategy: Keeping in mind that other market competitors have got a different product, Optical express is well aware of how to launch a different product.

Well Focused on Target Market: Target market has been focused and market is segmented according to customer focus on specific products.

Situation Analysis:

As we all know that we are living in the competitive environment, where companies are changing their strategies dramatically according to the change in market. Even though companies are struggling in this competitive environment but some of them are not getting success while some of them get survive.

Optical express product offerings focus on the middle class level for their lenses and spectacles, on the other side Optical express most expensive product “Laser Eye Surgery” for that they are only focusing on executive level customers. We will target this market with various marketing tools & techniques. For e.g: Print media, catalogue distribution, TV advertisement and Internet. When it comes to the competition, we are facing very close competition with our competitors, for that we have designed our products in such a way that not only executive class afford our Laser Eye surgery but the middle class can also take benefits by our flexible finance scheme for this product.

Market:

The optical express offers value and benefits to our customers, we go beyond above standards of our facilities and in flexible rates. We seek to provide our customers an extraordinary customer services. We have hundred branched all over the world and specializing in servicing all aspects of people.

Key to our business success is the level of our customer’s loyality, satisfaction, and repeat business we receive on an annual basis.

Market analysis Table:

Market Analysis

Potential customers

Growth

2007

2008

2009

CAGR

Spectacles

7%

1,147

1,228

1,315

5.09%

Contact Lenses

8%

1,400

1,512

1,633

6.01%

Laser Surgery

10%

1,799

1.970

2,157

7.51%

Total

8.38%

4,348

4,710

5,105

9.11%

SWOT Analysis:

For any business you should keep in your mind about strengths and weaknesses of your product because that will affect your market.

Before starting your marketing strategy make sure you have designed an honest SWOT analysis, means keeping your strength, weakness, opportunities and threats in your mind.

Optical express has critically evaluated their SWOT and then implemented their strategy, while implementing their strategy their SWOT analysis would be:

Strengths:

Strategy: Established competitive strategy.

Staff: All staff is very technical according to our Optics industry.

Reputation: Very strong reputation within the market and at consumer level.

Weaknesses:

Technology: Laser eye surgery has a big risk for many people, lack of knowledge among customers.

Low Price: Due to the great competition in optics industry.

Opportunities:

Market: Growing market in optics industry in future

Suppliers: Long-term and active relationships established with suppliers.

Threats:

Market Entry: Too many new market entrants are coming in this industry.

Substitutes: Local optics providing services in very low rates.

Economy: Currently UK is in recession and it will take time to take out of this problem.

Industry Analysis For Optical Express Co

Executive overview

The industry analysis research provides the knowledge and examines to help your suitable decision making. The out of your research will able to give you a full market scope either in quantitative or qualitative format. The data that has been examine to give you facts and figures of market, and a vision to help you in the strategic decision making and development.

Three frameworks have been used to analysis the external business environment of the business.

Economical factors

Although UK is facing recession at the moment, the interest rates are very fluctuating and unemployment rates are rising. All these factors are not favorable for businesses apart from food industry. These economic factors will remain a threat for our business.

Social Factors

Our end users are patients those has a problem with their eye sights therefore according to our research eyesight problem in all over the Europe is rising day by day, refer to the BBC news:

“According to the recent survey the number of the people with a degree of visual impairment was expected to more than double on the next 25 years. The increase has been linked to an ageing population and poor health. John Gill, of Sight Action which is taking part in the event Blindness Matters in Inverness said the statistics gave cause for concern. Mr. Gill said, “The recent statistics showing the future figures of blind people in UK are worrying.”

March 29, 2006, Miami, FL.  The use of soft contact lens can be caused of fungal corneal infection; this statement is documented by cornea speclist at bascom palmer eye institute of Miami, miller school of medicine. A large number of patients suffering from sight-threatening corneal infection normally associated eye trauma which is caused by fungus from vegetable and plant and soil matter is treated with fusarium keratitis. This treatment is confirmed by two professor of ophthalmology Eduardo c. alfonso and Edward W. D. Norton chair of ophthalmology.

REF: (http://www.med.miami.edu/news/view.asp?id=509), http://chinese-school.netfirms.com/forums/contact-lenses-for-computer-users-vt57.html.

After research on eyesight problems there is a huge market in UK for eye care, contact lenses and especially for laser surgery. UK has got reasonable high income distribution comparing to others countries, although UK is facing a recession partly caused by the financial crisis. High income distribution means higher Gross Domestic Product Per Capita and Gross Domestic Product.

Technology

There are more and more computer users and they are more open to shopping online. This gives our company an advantage to do business online.

Threat and opportunity of the SWOT framework are applied to measure the internal environment of our business.

Threats

As well as competing in our own industry, our organization also face competitions from industries that are producing substitutes goods such as optical illusions, optical index, opticians, and optimal.

There may be substitution of need by a new product, which may be cheaper or better in quality than our products.

Generic substitution can be also threat for our company. After the financial crisis, more consumers would spend very carefully; they would spend more in foods in other household expenditure than others.

Marketing Plan

Executive Overview

The optical express group is not only operating its operation in UK but in all major Europe cities also, to create a good market reputation worldwide and expanding its business by selling their products and solution to its customer in a delicate way, the group separate its businesses and give clear focus to every part of its group in a very precise manner. Although UK is a very huge market platform because too many competitors are here and selling same products in a low prices but quality does matter that’s what the key target of optical express is, delivering goods with a quality standard with nominal cost.

Identifying Target Customers

When you are going to target your market in multiple orders, make sure that you give them a rank according to their importance, it will enable you to spend the resources as per the customer requirement.

Set Your Target

When you achieve your goal or objective it will raise the awareness, product launch, welcome in market and concentrate on sales.

Agree a Budget

Careful budgeting is very important to control the cost of the products and it can be compared with the cost in-order to develop a cost and benefit analysis by mentioning the returns which are expected to make from investment in marketing activities.

Action Plan

For the selected marking activities, identified tactics can be implemented .All undertaken Non internet marketing activities can be covered by tactful plan.

Feedback Mechanism

Regular reviews and feedback mechanism play a vital role in order to assess the successful marketing activates.

Marketing Methods:

Email Marketing

Email marketing allows us to build relationship and keeping our customers informed according to the growing technology.

SMS Marketing

Short messaging service, almost everyone has a mobile phone, so we will market via text messaging.

Costs

Cellular company will have to be hire for this purpose. The development of 3G (third generation) and smart phones, which have larger screens and can play music and video clips, has made multimedia messaging service (MMS) possible. At the moment, text messaging has become very cheaper due to the rival competition among the network companies.

Email marketing

Target your consumers will be very attractive and effective. If the emails is attractive and it has a proper subject with interesting offer than its easy to pass to other addresses.

Search Engines

By putting your websites or your company banners on any website which is mostly visited on web will be helpful for market your company.

Commercials and Sponsors

There are various methods for the advertisement of your business; electronic media is the most suitable way to promote your business.

Banner adverts

Banners on streets and cheap marketing offers will be helpful for market your product but this kind of marketing is depends on the product you going to market for.

Sponsorship

By the time we will develop the relationship with our market competitors and if we found them suitable for our business then we will go ahead with partnership. As working together with your competitors or making good relations with them allow you to build up your business more strong.

Financial Plan for Optical Express Co

Executive overview

Financial planning is the one of the important factors of business success. A good financial budgeting is the first step of an effective financial planning.

Budgeting is the process in which its difficult to get the figure to that where to maintain the coming month’s payroll or salaries. For the coming week or month your financial plan should have well managed and planned so that if any lag comes in business you can easily overcome the financial issues of the company that’s totally depends on the budgeting you hav set or you can say financial planning. Budgeting in a business make you allow to take decisions any time as you have already planned a allocated budget and any steps going out of your budget directly indicates you that you are going out of your budget, so it will be highly recommended that while doing business make sure that your financial plan or budget should have been designed strongly and on long term basis. Effective budgeting can be done on short term basis, means 6 months budget or you can say quarter budget, In the other way you cal plan for a long term budget on a year basis that will call a long term budget.

The capital structure of Optical Express Co will be 60% equity and 40% debt (short term loan) for the first year. We are paying 16% monthly interest to the bank on our short term loan. The total working capital we will need is 15 000 pounds.

Fixed Assets

6 computers with ORACLE server: £200.00 each month over 2 years time

Printer and fax machine: £150.00

Furniture £200.00

Current Assets

Petty Cash: £200.00

Cash

Bank: £15,000

Debtor

Fixed Cost

Rent: £600.00 per month

Water and electricity bills: £30.00 per month

Variable Cost

Salary: £ 1,444.44 each person per month (£17,000.00 per annum)

Advertising: £200.00 a month

Yellow pages, an Thomson: £50.00 every 3 months

Stationery £20.00 a month

Depreciation 20% (Reducing-balance method)

Semi-Variable Costs:

6 Mobiles per month (Inc Contract charge) £100.00.

Travel expenses: £1,000.00

Critical Risks:-

The potential problems that can have impact on our business need to be avoided or corrected which will help our presentation and future decisions.

Some problems we may encounter:

Out of cash before orders secured

Competition price cutting

Costs in excess of estimates

Difficulties with credit

Lots of orders and NO cash

Unfavourable industry trends

Sales projections not achieved

Long lead times in procurement

So what are these risks? 

Communication with customers, clients or suppliers via email.

Ordering products by email from other businesses.

Selling products or services via a website.

Research on the internet to find industry trends, competitor information, reviews of products.

Publishing information about our products and services electronically.

Using the internet for storage and access to our business information.

Online banking and bills paying.

Critical Success Factors

Critical success factors can be defined as those issues which are deemed important to the business, with regard to its present and future performance, and also to its stakeholders. These few key factors are unique for achievement of its vision and might be specific to the industry in which it operates. Critical success factors define few areas of performance that are essential for the business to accomplish its mission.

Critical Success Factors in relation to the business can be grouped into six categories i.e.

Start with Speed: To succeed in the competitive market we must start with speed as an explicit goal, which is important as the other central goals that define company’s activities we can use our target market to gain competitive edge by increasing the speed of our activities and ultimately the speed of providing our products to the customers.

The Integration of the web into the core of what Optical Express Company does. In an effort to determine how to build our business, we need to rethink our business model. We should consider the following questions as we plan to take our business to Internet.

How can we use the market to sell our products?

How can we use the web and Internet to build interactive relationships between prospect customers, resellers, employees and suppliers?

How to facilitate the Internet capabilities with our company’s core expertise that may lead to the creation of a new business?

By establishing an Internet channel, would cost reduce and service level increase?

How can we use the individual customer information that we have to make it easier for them to do business with us?

What is our e-business model e.g. cost elimination, sales revenue, information trading, subscription and advertising?

Focus on how the company adds value for its customers. We should have speed, best price, rapid delivery and customization boom this fast pace economy. Then our business will be moving constantly to develop service that adds value in the face of new development and increase customer base. Performing the transactions online at a lower cost isn’t nearly enough. We must add tremendous value, inventing new features and services that smooth out the process and lead to a new surge in buying and selling. In other word, market leaders must find new ways to delight their customers.

Making it easy for customers to do business with company. The key is to make it virtually effortless for the customers to buy all the products at the same time and don’t let customer to interact with someone else in an area related to our products.

Focusing on improving customers experience across channel of interaction. To compete in the fast-changing environment created by the Internet, success depend on the products we are providing to our customers as well as on how we make it available to our customers. As we shouldn’t think of front-end and back-end separately. Instead we need to build a tightly coupled enterprise and highly integrated multi-channels. E-business is in the centre of the triangle, meaning our business is the intersection of the web, customer and transaction.