Luxottica Group, S.p.A. (LUX)

OPSM, Laubman & Pank, Budget Eyewear

In Australia and New Zealand, Luxottica Group operates three specialist prescription brands: OPSM, Australia’s top eyewear brand for luxury and fashion-minded customers, Laubman & Pank, provider of high quality eyecare and services, and Budget Eyewear, focused on price-conscious consumers. The three brands operate in all of Australia’s states, (especially in cities), while OPSM operates in key areas of New Zealand as well. At the end of 2007, Luxottica Group retail prescription stores were 511 in Australia and 40 in New Zealand.

Results in 2007 were very positive (sales up 6.3%) due to a brand positioning strategy, a product assortment geared to the fashion segment, an innovative store format (the Accelerated Fashion program highlighted its fashion positioning) and personnel training. Luxottica Group consolidated its leadership in the Australian market through organic growth and acquisitions, even though the retail market was not particularlystrong.

In the prescription segment, the objective was to differentiate the positioning of the three brands in order to cover complementary market segments with product offerings catering to the needs of different consumer categories. In 2007, consumer communication was stepped up thanks to a Customer Relationship Management program. Improved understanding of customers and initiatives helping consumers perceive eyewear as fashion accessories helped OPSM achieve a significant increase in sales and consolidate its position as the best known brand on the market.

Laubman & Pank’s reputation with Australian customers as an optical fashion brand was further strengthened as promotional programs clearly positioned the brand as a national chain. Research showed that the brand was perceived as having a special focus on eye health, thanks to a series of initiatives, including TV campaigns and the Lauby’s EyeMobile national screening program, which conducted eye tests for 9,000 kids in 2006. The brand also launched a new channel to market by launching four concession stores in major Australian department store chains.

Budget Eyewear managed to extend its product offering while remaining the preferred destination for those wanting quality eyewear at lower prices.

In Australia and New Zealand, Luxottica Group operates three brands, which are specialists in the prescription segment: OPSM, Australia’s top eyewear brand for luxury and fashion-minded customers; Laubman & Pank, a provider of high-quality eye care and services; and Budget Eyewear, which is focused on price-conscious consumers. The three brands operate in all of Australia’s states, primarily in larger cities. In New Zealand, OPSM operates in the main urban areas. Results in 2006 were very positive due to a brand positioning strategy, which included a product assortment geared to the fashion segment, an innovative store format, called the Accelerated Fashion Program which highlighted its fashion positioning, and personnel training. Luxottica Group consolidated its leadership in the Australian market despite the weakness of the retail sector generally.

In the prescription segment, the objective was to differentiate the positioning of the three brands in order to cover complementary segments with product offerings catering to the needs of different consumer categories. In 2006, customer communication was upgraded thanks to the launch of our customer relationship management program. Improved understanding of customers and initiatives helping customers perceive eyewear as fashion accessories helped OPSM achieve a significant increase in sales and consolidate its role as the best-known brand in the Australian market.

Laubman & Pank’s recognition as an optical fashion brand increased from 37% to 44%. Research showed that the brand was perceived as having a special focus on eye health, thanks to a series of initiatives, including TV campaigns and the Lauby’s EyeMobile national screening program, which conducted eye tests for 9,000 children in 2006.

Budget Eyewear managed to extend its product offerings while remaining the preferred destination for customers who want quality eyewear at lower prices.