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Presented by: Crystal Mann Michel Evtimov Cuiping Wang Afshin Forati Joseph Castro

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What is Oakley? An innovative leader in Sunglasses Goggles Apparel Whats New? G-Goggles

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Overview 1.Business Model 2.Target Market Segmentation & Positioning 3.Market Direction Strategy 4.Marketing Mix 1.Product 2.Place 5.Performance Measurement, Implementation and Control

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Eco/Green Business Model: Value Chain Suppliers ProducerChannel(s)Market(s) & Customers ProductsDataMoney Value Added

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Target Market Segmentation and Positioning

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MARKET SEGMENTATION Swimmer segment Potential Growth Competitive Superiority Fit w/ resources, core compete ncies FeaturesEco threats Overall Age 12-30, casual 3343215 Age 12-30, competiti ve 5535422 Age 30+, casual 2222210

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MARKET FACTORS Growth oriented 10% of the market share Very little cyclicality Concentrated marketing strategy 15% sales over the internet

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CUSTOMER CHARACTERISTICS Age 12-30 Competitive swimmers Most likely to try new products - innovators Already loyal Oakley sunglasses consumers Moderate to high level of education Middle to upper level of income

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SEGMENTATION VARIABLE FOR CONSUMER MARKETS BEHAVIORAL AND ATTITUDINAL Loyal Oakley consumers Low price sensitivity Willing to try a new product Every day usage Demographic variables Age 12-30 Bachelors degree or higher Middle to upper income

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SEGMENTATION VARIABLE FOR CONSUMER MARKETS (cont) Geographic variables US Rest of the world Outside of US regions with warm climate Close to see or ocean Psychographic variables Sports oriented Tourists

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Positioning Less carbon footprint Recyclable Organic materials Incentives for customers Image

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Market Direction Strategy

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Strategic Mission Statement Future Vision Present Focus External Market Value Internal Management Functions Market Plan Direction Internal Product External Market Factors Strategic Objectives Customer Relationship Channel Relationship Unit Sale Market Share Marketing Support Customer Service Internal Marketing Objectives

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Strategic Mission Statement Mission: Provide products that are superior in quality, safety and affordability in a sustainable manner. Future Vision: Be a leader in the race toward sustainability in the eyewear industry. Present Focus: The production of our environmentally friendly innovative organic swimming G-Goggles. External Market Value: Eco-Green product. Internal Management Functions: Focus on value chain activities.

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Product Development: Offering new product to existing market customers. Seek to extend into the swimming goggle market. New product. New image. Eco-Green trend. 2008 Olympic set the new gold standard for sustainable event. Lifestyle. Internal Product External Market Factor Marketing Plan Direction- Growth

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Customer Relationship Score 96% on customer satisfaction Channel Relationship Distribute through all online sales within 6 months Expand one additional retail every three months Unit Sale Sell 200,000 units in the first year Market Share Extend 10% into the market for the first year Get the leading position in the industry in five years United States swimmer Michael Phelps Historic eight gold medals at the Beijing 2008 Olympics. Strategic Objectives- Marketing

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Customer ServiceInternal Marketing Implement efficient management function. Make sure good communications are going through all departments. Use internal newsletters, web pages, marketing or sales meetings to get employees informed. Familiar employees with products through trainings, corporation culture. Use incentives or benefits to improve employee satisfaction. Make sure customers know our G products before they purchase them. Attract customers by empowering employees to be creative on sale events. Get feedbacks from customers to make sure the products meet their needs and desires. Encourage customers to give us suggestions on our products and services. Marketing Support

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Marketing Mix

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Marketing Mix Programs Strategic Consistency Oakleys mission, direction, goals, and objectives are the guidance force behind decisions about the marketing mix, marketing support, and marketing programs.

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Product Strategy Core Product Actual Product Total Product G-Goggle style Quality Packaging Features Delivery After Sales Service Warranty Eco Green Friendly Oakley Brand Name

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G-Goggle Needs, Features & Benefits Needs Swimmers eyes Protection Features Goggle Case Carrying case Available in diverse range of color Optional waterproof Bluetooth stereo headset Benefits Eco/Green by recycling Use discount, Save money Enjoy Oakley Fashion

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Quality and Design Lightweight frame Flexibility for an adaptable fit Dual layer of closed-cell face foam Scratch resistant LEXAN lens

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Packaging and Labeling Keeping the G-goggles safe from damage Communicating product contents, uses, and warnings Highlights points of differentiation Should be attractive and consistent with the name of Oakley

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Brand Image and its Competitive Advantage Positioning and relationship building role Create customer value Simplify the buying decision of brand customers

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Place/Channel/Logistics Place Oakley website, www.oakley.comwww.oakley.com Online swim distributors Oakley stores Swim retailers Eco/Green Stores Channel One-level Oakley is the producer AND the distributor Selective distribution Selected outlets with better customer service Supervise and control channel activities and costs Logistics Higher inventories to reduce frequency of shipments Oakley stores to handle larger inventories Online orders filled from closest Oakley store Orders will be shipped using the most eco-conscious means of shipments

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Performance Measurement, Implementation, and Control

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Performance Measurement Metrics Customer Metrics Product Metrics Channel Metrics Eco/Green Metrics

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Customer Metrics All customer for the G-Goggles are new customers Customer Satisfaction survey results Customer Engagement track internet and in-store customers

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Product Metrics Sales Tracking Graphic Representation Profit Margin / ROI Graphic Representation Marketing Resource Optimization Graph sales hrs vs. sales dollars Production Productivity Graph production hrs vs. sales dollars

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Channel and Eco/Green Metrics Logistic Efficiency- baseline vs. actual Material Shipping Channels Product Shipping Channels Customer Delivery Carbon Footprint Raw Materials Production Shipping Customer Service Recycle Program

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Implementation and Control Making adjustments based on the metrics Schedule of Key Tasks Resource Allocation Audits of milestones and performance Future Projections

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Marketing Dashboard MetricsStatusStrengthWeaknessAction Required Customer High SatisfactionLow quantityNeed to increase # of surveys Product High quality, high ROI Need to improve tolerances Adjust tooling Channel Low costLow inefficiency Raise costs a percentage to increase efficiency Eco/Green Carbon footprint on track Low image conveyance Need to promote green aspect more

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Oakleys G-Goggles FIN