A chain of Optical stores increases sales through refined Go-to-market strategy

Background

Our client, a chain of optical stores with both in-hospital and stand alone stores, faced a decline in sales in certain stand alone stores. Specializing in branded eyeglasses and sunglasses, the client engaged IKON to address the challenges and revitalize their sales performance.

Approach & Recommendations

To identify the root cause of the decline in sales and unlock growth opportunities, we conducted a comprehensive diagnostic study. Through our analysis, we discovered several key insights. Firstly, the eyewear market was experiencing growth, indicating a potential for expansion. Secondly, our research revealed a gap in the availability of the latest frame collections and kids' frames, presenting an untapped opportunity. Additionally, we found that the client's promotional activities were lagging behind competitors, and there was a lack of omni-channel presence. Importantly, our insights highlighted that customers valued warranty and durability as crucial factors when choosing eyewear.

Based on these insights, we developed a growth strategy that encompassed various aspects. Firstly, we recommended opening new stores including an online store strategically to penetrate untapped markets and increase accessibility for customers. We also proposed introducing new products, such as kids' frames and blue cut lenses, to meet the specific demands of the target audience. Furthermore, we suggested developing a new brand identity and positioning that aligned with the market trends and customer preferences. This involved refining the mission, vision, and values of the brand to resonate with the target audience.

In terms of the go-to-market strategy, we provided recommendations for target customer segments, pricing strategies, marketing communications, and sales promotions. To enhance the client's digital presence, we recommended implementing a comprehensive digital marketing strategy. Additionally, we provided guidance on the reorganisation of the marketing and sales functions within the organization and defined key performance indicators (KPIs) to track progress.

Results

The implementation of our recommended strategies yielded significant results for the client. By addressing the identified challenges and capitalizing on growth opportunities, the client witnessed a substantial increase in customer visits and orders. Their market position improved, allowing them to regain lost ground and compete more effectively. Notably, the sales of the stand alone stores reached the break-even point within just 9 months of implementing the recommended strategies.

Note: We are committed to clients' confidentiality. So their names have not been disclosed, but the results are real.

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