Report on Marketing Strategies: Essilor-Luxottica's STP and Mix

This report provides an analysis of Essilor-Luxottica's marketing strategies, focusing on the Segmentation, Targeting, and Positioning (STP) framework and the marketing mix (Product, Price, Place, and Promotion). The STP analysis identifies the target customer group for Essilor-Luxottica's smart glasses as young, tech-savvy individuals. The report discusses the company's positioning strategy, emphasizing its advantage in the market due to its partnership and innovative product design. The marketing mix section details the smart glass product, a premium pricing strategy, a focus on European markets for initial launch, and a direct digital platform for promotion. The report references key marketing concepts and relevant literature to support its analysis, offering insights into Essilor-Luxottica's approach to market segmentation, competitive advantage, and strategic marketing decisions.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
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Table of Contents
STP strategy for Essilor-Luxottica..................................................................................................2
Marketing Mix strategy for Essilor-Luxottica.................................................................................3
References........................................................................................................................................4

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STP strategy for Essilor-Luxottica
The Segmentation, Targeting and Positioning (STP) are an essential tool in the marketing
strategy, where the companies are able to identify the customers and make business plan
according to their needs and demand. The STP is also useful in deciding on the marketing
communication plan that can help to provide the optimized information to the customers about
product or service features (Cross et al. 2015).
For Essilor-Luxottica smart glasses, the target group of customners includes the young
group of population, who has the desire to make most use of the latest forms of innovative
gadgets. Due to the failure of the Google glass that was launched in the year 2012, the respective
segment of the technological market has greater potential. The success of the newly launched
smart glass is dependent on the ability of the company to segment their customers for better rates
of growth potential (Craft and Hassan 2015). With higher number of technological gadgets being
launched in the market, the preferences of the customers vary with the exact features and purpose
they want in each of the gadgets. The psychological behavior of target customers for the smart
glass will include the people, who do not hesitate to spend huge amount for the enjoying the
latest luxury features. The geographic segment of the smart glass will mainly focus on the
European nations as there are currently no major rivals for the wearable gadgets.
The positioning is the following steps of the segmentation, where a brand aims to capture
the respective market share. This will help the company to implement health competitive
advantage policies to improve their position in the respective industry (Baker 2014). For Essilor-
Luxottica smart glasses, the positioning market will be easy as there are currently no major
competitors in the particular segment. The business partnership of Essilor and Luxottica will

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enhance their chance of capturing a healthy position in the market as they will be able to target
greater segment of customers.
Marketing Mix strategy for Essilor-Luxottica
With successful implementation of the STP marketing, it is possible to decide on the
existing branding, price and promotional strategies. These are the elements of marketing mix that
includes four major parameters namely product, price, place and promotion (Helm and Gritsch
2014)
Product: The smart glass is the product for the given case, which is manufactured in the
business collaboration of Essilor and Luxottica. The innovative design of the glass is the major
strength.
Price: Due to the fact that there are currently no major competitors of the smart glass and
the target customers can spend huge amount, the company can implement the premium pricing
strategy.
Place: The current place of launch for the smart glass is limited to European countries
and in the later phase, they are planning to expand in the American and Asian market
Promotion: The Company is able to implement the policy of direct communication with
the target customers. They are mainly able to use the digital platform channels for the same. The
existing brand image of Essilor and Luxottica can also be used for the same.

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References
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Craft, S.H. and Hassan, S.S., 2015. Global consumer market segmentation strategy decisions and
managerial assessment of performance. In Revolution in Marketing: Market Driving Changes
(pp. 26-30). Springer, Cham.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 531-536). Springer, Cham.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review, 23(2), pp.418-428.