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Warby Parker is a company that specializes in eyewear production of customized cost-friendly higher-quality prescription glasses. The company was established in New York and set its first headquarters in New York. The idea was mainly developed to help students who could not afford a new pair of glasses after their old ones broke. It promoted its social responsibility that centered on giving out a pair of glasses to any needy child or organization for every pair purchased. While targeting individuals that cannot afford high-end prescription glasses, it employs a strategy to create low-cost glasses that can serve the same need. Since its inception, the company has realized a growing demand for its items, distributing more than 100000 glasses in the year 2011 that enabled the company to recognize a $37 million revenue for the closing year.
Eye Wear Industry
The universal eyewear market mainly specializes in manufacturing contact lenses, spectacles, sunglasses, and relatable eyewear products. The market as of 2020 was valued at $140 billion, and the forecast projects growing demand for eyewear products in the future, with projections estimated at $197 billion by 2027 (Fortune Business Insight). The market is classified based on producing three essential items sunglasses, spectacles, and contact lenses. That are the key items that sell in the industry. Therefore, most companies fashion to produce these items customized for the market.
The company mainly targets its customer through customer-friendly high-end products and its simple design online platform that allows its market to customize their glasses at their convenience. That can be shipped to their homes at no cost. The company's marketing effort seeks to exploit a market of unsatisfied customers who want their prescription glasses customized to their specialization.It strategizes to explore customer satisfaction to allow its customer to customize their glasses through a design application they can upload their images when trying out frames.
The company has expanded its retail stores to maximize its market outreach. Despite the company enjoying a considerable share of the online market, the business has further strategized in increasing the number of retail stores to ensure that it reaches more customers (older population) who cannot access their online platforms . The firm distributes the glasses mainly through the United States Postal Services that are appropriate in cutting its shipping and distribution expenses. The development is convenient for both parties since it ensures that the distribution channel can reach the customer at their doorstep.
The company targets to compete with high-end companies such as Luxoticca that offer similar fashionable prescription glasses. Warby Parker exploits the eyewear market by offering relatively cheaper fashionable eyewear that their competitors could have immensely cost higher. The starting pricing for their glasses costs $95. This has helped solve the problem of accessing affordable and fashionable prescription glasses. The entity strategy in reducing eyewear prices targets a market that was rather exploited by the availability of only high-end eyewear. The customization of prescription glasses was interpreted as expensive and out of reach of low-income earners. Neil Blumenthal's strategy was set to explore and exploit the eyewear market that was relatively considered costly and beyond the low-budget price margins. The push to focus on the market attracted interest mainly from the younger population, particularly students who greatly demanded low–budgeted trendy eyewear products.
Weakness in the Marketing Strategy
Regardless of the company focusing on low-budget customers, the business model is costly to the company compared with other high–end manufacturers that reap more profits and benefits from the sales of the products than Warby Parker. Despite cutting down the cost in its manufacturing process, some consumers would prefer purchasing high-end eyewear to have better experiences.
The failure to conduct a thorough market analysis can result in loss and complication in the business operations. The company's inability to clearly understand the market niche can cost the company. Regardless of exploiting low-budget eye wearers, the decision can be costly because other brands are getting value for their money. The minimum profit the company is getting in the sale of its item can be expensive when expanding their sales, requiring them to incur more charges in their production and distribution operations.
Events that Affected the Market
During the Covid-19 crisis, the demand for glasses sharply declined, considering the economic crises that affected most houses. The unfolding events caused most of the eyewear companies to close their outlets in a bid to conform to the government. This promoted the companies to fully embrace E-commerce, to push for the sales of their products. Warby Parker Company was simultaneously affected in its manufacturing, distribution, and sales activities that declined when the restrictions were initiated, therefore in a bid to tame its losses, it prompted them to cut some of their operations.
Plans and Strategies
The company plans to scale its operation by significantly increasing its outlets countrywide and abroad—this sets to grow its in-store sales factored by the projected number of consumers in the future. The company's plan to design and integrate technology, such as try-on and telemedicine, will expand the market opportunities that were initially limited in the market. The company already has a targeted niche of which enhances its development that can promote customer loyalty and increase its consumer base.