Marketing Report: An Analysis of Luxottica SpA's Communication Mix

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This report provides a comprehensive analysis of Luxottica SpA's marketing communication mix, evaluating its effectiveness in influencing consumer behavior and purchasing decisions. The report begins with an executive summary and company overview, followed by a detailed examination of Luxottica's print and media advertisements, sales and promotion strategies, and public relations efforts. It then aligns these elements with findings from previous assessments, highlighting the company's use of celebrity endorsements, elegant promotions, and consumer cognition to drive sales. The analysis also identifies areas where the communication mix can be strengthened, such as introducing flexible pricing, aligning products with consumer trends, and incorporating free gifts and after-sales services. The report concludes with strategic recommendations to enhance Luxottica's marketing communication mix, emphasizing the importance of considering consumer environmental forces and social trends to reach a wider audience and improve customer satisfaction. The report highlights the alignment between the company's marketing efforts and consumer behavior as well as suggesting areas where the company could improve its marketing strategies.
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Luxottica SpA Marketing Communication Mix Analysis Report 1
LUXOTTICA SPA MARKETING COMMUNICATION MIX ANALYSIS REPORT
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Luxottica SpA Marketing Communication Mix Analysis Report 2
LUXOTTICA SPA MARKETING COMMUNICATION MIX ANALYSIS REPORT
Executive summary
The marketing communication mix has, over the past, been considered as one of the
foundation factors within the marketing world. The marketing communication mix combines
various factors that relate to consumer behavior, which enable a firm to attain its marketing
objectives in time. The content of this paper, therefore, analyses how effective is Luxottica SpA
marketing communication mix in influencing consumers’ behavior and purchasing decisions.
The paper also evaluates how Luxottica's communication mix uses various factors such as
recognition, cultural aspects, consumer environmental aspects, and psychological aspects to
influence consumer purchasing decisions. Moreover, the paper evaluates the company's mix in
relation to previous assignment findings, identifies the areas of strategic alignment, and
concludes with a recommendation on how the company can strengthen the areas of alignments.
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Luxottica SpA Marketing Communication Mix Analysis Report 3
Table of Contents
LUXOTTICA SPA MARKETING COMMUNICATION MIX ANALYSIS REPORT..............2
Executive summary.........................................................................................................................2
Company Overview.........................................................................................................................4
Luxottica SpA Marketing Communication Mix:............................................................................5
Luxottica SpA Print and Media adverts......................................................................................5
Luxottica SpA sales and promotion............................................................................................6
Luxottica SpA Public Relation...................................................................................................7
Luxottica SpA Market Communication Mix Alignment with Assessment 1 & 2 Findings...........7
Summary of Assessment 1 & 2 Findings.....................................................................................7
Alignment:...................................................................................................................................8
Strategic Recommendations to Strengthen Luxottica SpA Marketing Communication Mix........9
Introduce flexible pricing in their communication mix.............................................................10
The company should also keep in mind various factors, both social and environmental forces,
in mind and align its products to the ongoing trend...................................................................10
Include free gifts and aftersales services....................................................................................10
References......................................................................................................................................11
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Luxottica SpA Marketing Communication Mix Analysis Report 4
Company Overview
Luxottica SpA is currently one of the largest eyewear manufacturers in the globe, making
eyeglass frames and sunglasses. The company is the largest, and the leading global optical
retailer maintained various subsidiaries and LensCrafters and sunglass Hut. Luxottica SpA is an
Italian located in Agordo, a remote village in Italy. The company was founded by Leonardo Del
Vecchio in 1961 after a long career as a toolmaker. The company started by selling complete
spectacles and frames and improved through the year's striking its first licensing deal with
Armani in 1988. The company grew since, and in the year 2003, it started purchasing other
brands all across the world. The company is currently an optical retailer and makes various
luxurious eyewear. The current company portfolio includes a number of proprietary brands such
as Vogue Eyewear, Alain Mikli, Oliver Peoples, Ray-Ban, Arnette, and Oakley. Luxottica SpA
also operates other licensed brands in Italy including, Miu Miu, Starck Eyes, Giorgio Armani,
DKNY, Prada, Chanel. Tory Burch and Versace and Valentino, among other brands.
Luxottica SpA has several global group wholesale distribution networks that are
supported by retail networks. The company's wholesale network covers 151 countries across the
globe. These wholesale networks are supplemented by 9000 retail outlets in the world market.
Being one of the largest companies around the globe with a large annual revenue of
approximately $ 10 billion, the company has 85, 100 all across the globe. According to the
organization's data, Luxottica SpA produces 135,000 eyeglass frames in a day though its six
factory sites. The company's vision is to create a sustainable production encompassed in its
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Luxottica SpA Marketing Communication Mix Analysis Report 5
statement to see the beauty of life. Luxottica SpA, just like other organizations, is focused on
expanding its operations into new global markets and has since developed unique marketing
strategies and campaigns.
Luxottica SpA Marketing Communication Mix:
The company's marketing mix is organized in a way that it elaborates its position towards
individual elements of communication ranging from events and consumer experiences, public
relations, direct marketing, personal selling, as well as print and media adverts. Notably, the
founding reasoning behind the Luxottica marketing mix is the desire to communicate marketing
information of their eyewear brands to the specific target audiences or consumer segments. The
company has, therefore, used various elements of the marketing communication mix to ensure
consistency in the brand message (Brown 2015).
Luxottica SpA Print and Media adverts
Luxottica SpA print and media campaigns are normally oriented towards a change of
consumer attitude, showcase social class, and group influence. The company's print and media
was founded more 40yrs ago and ago and is organized in a way that the brand message affects
consumer interest and attitude. Luxottica mostly employs print and media elements of the
marketing mix in the promotion of eyeglasses and eyeglass frames. The company, on most
occasions, uses celebrity endorsements in its print and media to influence the consumer attitude
and showcase the class of its products. The company in their most current print and media
adverts featured celebrities such as Taylor Swift, and Neil Patrick Harris wearing their brands.
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Luxottica SpA Marketing Communication Mix Analysis Report 6
Therefore, this influences consumers and creates group buying as various fans are likely to make
purchases in order to identify with their favorite celebrities (Todorova 2015, p-370). Moreover,
Luxottica SpA print and media contain messages that change consumer attitude. For example,
the company launched a campaign with the phrase ‘to see the beauty of life’ where the company,
through the message, change the consumers' attitude towards both optical eyeglasses and sports
eyeglasses, leading to increased purchases.
Apart from celebrity endorsements, Luxottica SpA uses elegant promotions that can run
for a long time. The company's print media uses simple but elegant and creative ads on a purple
background. This influences consumer attitude show simplicity in their products. Moreover, in
promoting the learning process, Luxottica organizes its product campaigns in a way that they talk
directly to their customers, whereby the company ads are directed towards a specific target
market at a time. Also, the company's campaigns on social media such as Facebook use eyewear
images with attractive and sleek colors.
Luxottica SpA sales and promotion
Another element in Luxottica’s current marketing communication mix is sales and
promotions. Sales and promotions used by the brand are focused on influencing consumer
personal purchasing behavior or purchasing process and attitude. In this manner, Luxottica used
point of sale materials where consumers who visit Luxottica stores get the chance to learn and
have a feeling of the company products. Thus, allowing the consumer to use their products and
show them the unique features influences their purchasing process making them buy Luxottica
products (Akkucuk and Ismailia 2016, p-10). Moreover, various stores and organized and
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Luxottica SpA Marketing Communication Mix Analysis Report 7
decorated in the way that they attract consumers in the process of purchase. Taking, for instance,
the company's outlet South America is well decorated with attractive sunglass pictures with
attractive purple, blue colors, which is meant to attract and lure customers in the process of
making purchases. Seasonal sales promotion which is used mostly in the marketing of the
Luxottica optical glasses and frames. The company does not sell its products at discounts.
However, when a new series of specs are produced to the market, the company instructs the sales
agencies to sell the previous series to consumers at a discounted price. This is also targeted
towards influencing consumers' purchasing process.
Luxottica SpA Public Relation
Luxottica, as an organization, does not involve much in public relations. However, there
are various aspects of public relations that are employed by the organization to influence
consumer behavior. The way the company handles its employees in a certain way creates public
relations. Also, in as much as the organization does not involve much in price promotions
(Naumovska and Blazeska 2016, p-155). Luxottica, on many occasions, communicated
allowance of price discounts for college students and conduct free eye checkups through their
optical sector. These enable the company to show goodwill to the pubic changing consumer
attitude and encourages group-buying among college students and consumers who need optical
services.
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Luxottica SpA Marketing Communication Mix Analysis Report 8
Luxottica SpA Market Communication Mix Alignment with Assessment 1 & 2
Findings
Summary of Assessment 1 & 2 Findings
According to the assessment one and two findings, most consumers will buy products
that they recognize. The more popular the product is, the more it will sell. The two previous
study papers also found that most consumers are likely to purchase a product from a certain
brand due to influence from friends and family influence (Jeff 2008.). Also, a good number of
consumers will also buy a product form a particular brand based on a positive attitude, positive
perception of friends, and a change of interest due to company messages. Key findings, from
assessment two, in particular, show that individuals would purchase a product based on the
message from the company and friends but in most cases, will not purchase products based on
parental direction. Assignment two also shows that the consumers will purchase based on interest
more so when influenced with modern life trends.
The content of assignment one showed the influence of psychology in relation to
consumer behavior. Findings in assignment one show that the consumers will make purchases
based on various psychological aspects such as the need for recognition, available information on
the products, and other peoples' perceptions, experience, and feelings (Joubert 2013, p.5-10 ).
Apart from the psychological aspects, the study findings also found that consumer ability to
purchase a product is also based on social, cultural, and individual aspects.
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Luxottica SpA Marketing Communication Mix Analysis Report 9
Alignment:
A critical examination of Luxottica SpA’s marketing communication mix demonstrates
and alignment with the previous assignment findings. The consumer analysis of the matrix shows
a clear framework for cognition, consumer behavior, and consumer environment (Oke et al.
2016, p-48). The organization print and media advertisements are organized in the away that
they create psychological stimuli. Taking, for instance, the company campaigns are made using
elegant colors such as sleek and modern chrome colors, which stimulates brain-based exposure
in all their communication channels, thus increased sales.
Moreover, the previous assignment showed a clear link between consumer desirability
and group influence. Luxottica marketing communication mix involves celebrity endorsements.
Through these celebrities, the company is able to create a foundation for a group influence. This
is because celebrities have large fan bases and can easily influence their fans to purchase a
certain product. Therefore, through the endorsement of Luxottica eyewear products by
celebrities, the company's communication mix creates a ground for group influence where fans
may want to identify with their favorite celebrity by having eyewear from the same company.
Nonetheless, it was found in the assignment that consumers are able to buy products that they are
well aware of. Thus, through the use of celebrities, the company increases awareness of its
products, leading to increased purchases being that most of the celebrities used for endorsements
are popular across global markets (Smedescu, Ivanov, Ioanas, and Fruth 2016,p-5).
The company's marketing communication mix also aligns with findings based on the
ability of its communication mix to induce cognitive effect among consumers. Consumer
cognition is their ability to understand Luxottica products, beliefs, and experience and make
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Luxottica SpA Marketing Communication Mix Analysis Report
10
meaning of the company's beliefs. In relating this to the Luxottica communication mix, the
company in all their print and media adverts uses eye-catching as well as simple designs that
appeal to the consumer cognition in elaborating the benefits of their products to consumers
(Jackson and Ahuja 2016,p-180). Finally, the company uses the message of lowered prices for
college student and create the perfect experience for their consumers in their outlet shops and
organize free eye checkups. This is critical as it enables the clients to recommend the product for
others, such as family, friends, and roommates. In this manner, Luxottica SpA’s marketing
communication mix aligns with assignment one and two findings.
Strategic Recommendations to Strengthen Luxottica SpA Marketing
Communication Mix
In as much the company's marketing communication mix aligns with various factors as
found in the previous assignments, Luxottica SpA communication mix still misses and shows
misalignment to some of the findings such as limited use of consumer environment to influence
their buying decision, trends and has a pricings system which favors people from middle and
high social class (Heracleous and Papachroni 2016). For this reason, below are some of the
recommendations that the company can employ to strengthen its communication mix.
Introduce flexible pricing in their communication mix
The company lacks a pricing strategy within its marketing mix but instead utilizes a
standard and premium pricing strategy, which makes it less popular among the low and
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moderate-income earners (Singh and De 2017). The middle and lower-earning people can only
afford Luxottica SpA products when they have lowered prices to create a market for the latest
products. This strategy makes the company's new products unpopular as the majority can only
afford their products after two to three years of market existence. For this reason, the company
should include prices in their sales promotion, such as discounts to enable many people to
recommend their products to even those earning moderately (Heracleous and Papachroni 2016).
The company should also keep in mind various factors, both social and
environmental forces, in mind and align its products to the ongoing trend.
The second study findings show that a product is able to attract more consumers when it
accommodates consumers' current lifestyle and trends. For this reason, it is recommended for the
Luxottica marketing team to accommodate factors such as economic crisis, rate of income of the
target market, and environmental factors such as building structures and decorations (Abril and
Rodriguez-Cánovas 2016, p-173). This will enable the organization to increase sales as the
brand favors customers regardless of time and what is trending. Increasing the use of the
consumer environment is also important based on its psychological effect on consumers. Having
Luxottica SpA logos with sleek colors in various stores is crucial in attracting consumers.
Include free gifts and aftersales services
It is also recommended for Luxottica SpA to include free gifts and aftersales services in
its sales and promotion as a part of the marketing communication mix. Gifts and aftersales
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Luxottica SpA Marketing Communication Mix Analysis Report
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services are some of the common factors that influence consumers, feelings, and emotions
(Todorova, 2015, p-369). The current Luxottica SpA marketing communication mix does not
include the creation of effective consumer experience trough gifts and aftersales services, and
this is one factor that reduces the company's popularity. Therefore for the company to increase
the great experience for its consumers, the marketing team should include gifts and aftersales
services to increase popularity (Khanfar 2016, p-100).
References
Abril, C., and Rodriguez-Cánovas, B., 2016. Marketing mix effects on private labels brand
equity. European journal of management and business economics, 25(3), pp.168-175.
Akkucuk, U., and Esmaeili, J., 2016. The Impact of Brands on Consumer Buying
Behavior. International Journal of Research in Business and Social Science (2147-4478), 5(4),
pp.1-16.
Luxottica SpA, 2018. Luxottica Marketing Mix. [Online] Available at:
https://notesmatic.com/2018/08/luxottica-marketing-mix/
Brown, W., 2015. How the Luxottica Sales to You: Taking a Look inside Luxottica’s Marketing
Strategies, Available at https://www.salesforce.com/blog/2016/06/digital-advertising-insights.html
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Luxottica SpA Marketing Communication Mix Analysis Report
13
Heracleous, L., and Papachroni, A., 2016. Strategic Leadership and Innovation at Luxottica SpA
SAGE Publications Ltd.
Jackson, G. and Ahuja, V., 2016. Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), pp.170-186.
Jeff, B.P., 2008. Consumer Behaviour Theory: Approaches and models. Unpublished discussion
paper. http://eprints. bournemouth. ac. uk/101107.
Joubert, P. (2013). Introduction to Consumer Behaviour. Cape Town, South Africa: Juta and
Company, pp.1-10.
Khanfar, I.A., 2016. The Effect of Promotion Mix Elements on Consumers Buying Decisions of
Mobile Service: The case of Umniah Telecommunication Company at Zarqa city-
Jordan. European Journal of Business and Management, 8(5), pp.94-100.
Naumovska, L. and Blazeska, D., 2016. Public relation based model of integrated marketing
communications. UTMS Journal of Economics, 7(2), pp.175-186.
Oke, A.O., Kamolshotiros, P., Popoola, O.Y., Ajagbe, M.A. and Olujobi, O.J., 2016. Consumer
behavior towards decision making and loyalty to particular brands. International Review of
Management and Marketing, 6(4S), pp.43-52.
Singh, H.G. and De, K.K.G., 2017. Effect of Marketing Mix Elements on Brand Awareness of
Consumer Durables (Doctoral dissertation).
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Smedescu, D.A., Ivanov, A.E., Ioanas, E. and Fruth, A., 2016. Marketing Communication Mix in
Higher Education Institutions. International Journal of Academic Research in Economics and
Management Sciences, 5, p.5.
Todorova, G., 2015. Marketing communication mix. Trakia Journal of sciences, 13(1), pp.368-
374.
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