Your client, Eyes Inc., is a contact lens manufacturer situated in the US. They seek to increase their market share over the next two years and asked our company to for advice.
The interviewee should find out information about the client’s company:
Product mix
Sales split
Operated market
Main conclusions
The south region seems to be interesting as there are high chances to increase market share.
More disposable products for traditional use could also lead to an increased market share as the company is notpresent there yet and the market could grow in the future.
Share the following charts to show the market situation:
Diagram 4 with the share of lens users per age group.
Diagram 5 with the share users in each gender group.
Diagram 6 with the share of users in each US area.
Diagram 7 with the expected growth of users in each US area.
Note for Interviewer
Percentages do NOT have to add up to 100% due to the fact that these shares describe the contact lense users in each area group!
Information that can be shared on the interviewee’s inquiry:
There are 2 big competitors for our client which have a wide range of products:
Movarti
Lausch & Komb
The products are very similar on the market.
Western Europe and Japan are other big markets. Markets in other countries are still too small to expand there. We do not have a lot of information about markets outside of the US.
The competitors are very strong in these two markets and our client is not very present there.
Note for Interviewer
The candidate should calculate the potential customers per agegroup.
Share Diagram 8 to show the age structure in the US.
Note for Interviewer
The interviewee should try to estimate the total population in the US. For the calculation, tell him an approximate value of 300 m.
Share Table 1 with this overview if the interviewee has struggles solving this part.
(Female) customersyounger than 30 years should be targeted. (Total target group has 33.6% + 36.4% = 70% of the market)
International markets do NOT seem to be suitable on the short-term as the client would need to increase its presence. Therefore these markets could be interesting on a long-term basis. But as the goal is a high increase in the short-run (2 years) the client should concentrate on the market in the US.
Suburbs and citiessouth of the US seem to be most promising (very quick growing and high amount of users)
Information that can be shared on the interviewee’s inquiry:
Customers are sorted in two categories:
New adopters
Existing contact lens users
New adopters: First time users of contact lenses. They buy them normally in the retail store. They get their recommendation from their doctor.
Existing users: They buy their refills usually from retail stores or buy online.
Note for Interviewer
KEY INFORMATION
How customers pick their brand:
New adopters: Usually strongly influenced by their doctor. Customer plays NO important role by picking brand. Existing users: Keep using a brand and switch not so often.
The candidate should include these points in the conclusion:
The client should target doctors working together with retail stores with its sales and marketing department. There is also urgent need to build brand awareness and a relationship to customers and doctors.
The client should concentrate on stores in the US which are:
Located in suburbs and cities in the southern regions
Having a large customer base of young women
Stores situated in malls
Stores situated in strip malls with storespopular for young women
A good product strategy could be to develop more disposableproducts for traditional use as the company is notpresent there yet and the market seems to grow in the future. In addition their core business of cosmetic lenses is stagnating.
Further Questions
What are potential risks concerning the focus of advertising on the southern regions?
This approach could risk the brand awareness of the client’s products in other regions than the South and therefore losecustomers in these parts.
There might be competitors that are very entrenched in the South which would result in an increase in SG&A spending.
Some of the other competitors could have the same plan and focus on the southern area.
Note for Interviewer
More questions to be added by you, interviewer!
At the end of the case, you will have the opportunity to suggest challenging questions about this case (to be asked for instance if the next interviewees solve the case very fast).
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This is typical case of a company who intends to expand its product/service offering in order to grow its market share.
The two key points to be analyzed in such cases are the
This case is made to be interviewee-led.