Brock University Goodman School of Business JM Consul*ng Presen*ng to Warby Parker Management TYLOR HUIZINGA VICTOR STRANGES NAGEENA NAIMI HUZAIFA FAIZAN
Execu*ve Summary Problem: How to sustain growth while maintaining your corporate social responsibility of impac?ng as many people as possible? Recommenda?on Marke?ng within the United States by expanding bus fleet by 10 1 Canadian store in Toronto Increase the number of Warby stores in the United States by 4 physical stores for 5 years Enter the European market online with one central warehouse Market within Europe with 4 buses Enter the Asian market online with one central warehouse R&D to produce a complimentary green product line
Agenda Analysis Alterna?ves Financials Implementa?on Conclusion
Industry Analysis Threat of imita?on Larger companies can copy our CSR ini?a?ves LuxoSca can lower their costs, but they can t be lower than Warby Parker $65 Million global eyewear industry Huge possibility of impac?ng an enormous amount of people Europe is s?ll suffering from the recession, but is also concerned with fashion Your glasses are Sleek, simple, and stylis?c.
Company Analysis The Ne^lix of Eyewear Direct to consumer No middle man reduces costs Strong balance sheet Buses reduce shipping costs and are a low cost way of reach many people Poor distribu?on to poor countries Not enough partners to reach the full demand Impacts our CSR Marke?ng has mainly been through word of mouth This significantly lowers growth opportuni?es Brick & Mortar stores can dilute sales Opening a limited number of stores can reduce this impact
Key Success Factors Direct to consumer Strong balance sheet CSR: The more you sell, the more you help
Alterna*ves 1. Expand product mix domes?cally 2. Expand eyewear sales globally 3. Expand physical presence in the United States 4. Expand globally and expand presence in United States
Expand eyewear sales globally Strong online infrastructure Sustainable business model Increased sales Customers service Web based delivery model Limited financial risks
Expand product mix domes*cally Distribu?on channels already in place High innova?on with new products Increased research and development Not feasible for current business model Corporate social responsibility
Expand physical presence in the United States Addi?onal marke?ng to increase presence More physical brick and mortar stores Increase bus fleet Mobile sales Innova?ve adver?sing model
Expand globally and expand presence in United States Successful business plan already developed Apply model to new markets Moderate risks to enter new markets Necessity to increase brand recogni?on in domes?c market Sales busses and flagship stores The more you sell, the more you help!
Alterna*ves Expand Product Mix Domes;cally Expand Eyewear Sales Globally Risks Innova;on Costs CSR Financial Sustainability High High High Low Moderate Moderate Moderate Moderate High Moderate Expand Physical Presence in US Moderate Moderate High Moderate- High Moderate- High Expand Globally and Domes;cally Moderate Moderate Moderate High High
Financial Feasibility - Financial sustainability - Showroom success Brand recogni?on Risk of dilu?on in sales per square feet - Mobile Bus Stores Successful Flexible More people reached The more you sell, the more you help!
Validity of Assump*ons Busses 400 square feet Store 1600 square feet Sales/sq. h - Showrooms $ 3,659 Sales/sq. h - Busses (60% of store) $ 2,195 Gross Profit 70%
Projec*ons per Showroom
NPV Showroom 15% discount $1,500,000 NPV - Showrooms $1,357,745 $1,000,000 $913,396 $1,091,932 $617,163 $500,000 $423,968 $- $(500,000) Ini;al Investment 1st Year 2nd Year 3rd Year 4th Year 5th Year NPV func;on $(500,000) $(193,120) $(1,000,000)
Projec*ons per Mobile Bus Stores
NPV Mobile Bus Store - 15% discount $900,000 $800,000 NPV - Showrooms $803,517 $700,000 $600,000 $500,000 $400,000 $300,000 $279,793 $323,262 $389,914 $489,893 $200,000 $153,448 $100,000 $- $(100,000) $(200,000) Ini;al Investment 1st Year 2nd Year 3rd Year 4th Year 5th Year NPV func;on $(100,000)
Projected Annual Profits $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $- 2015 2016 2017 2018 2019
Profits and Helping the World! The more you sell, the more you help!
$10,739,791 NPV if we do it today!!!!
Implementa*on US Online and Brick & Mortar, Few buses 4 Stores & 10 Buses 4 Stores 4 Stores 4 Stores 4 Stores Brick & Mortar Canada 1 store 1 store Bus (Toronto) Europe Warehouse & Office Online & 4 Buses 2 stores 2 stores 2 stores Asia Warehouse & Office Years: 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 The more you sell, the more you help!
Implementa*on Expand Vision Spring into global market Partnerships with large non- for- profit organiza?ons Increase distribu?on in developing countries R&D to add complimentary product lines Innova?ve green product line
Conclusion Take Aways Stay direct to consumer to offer the lowest possible cost Stay true to your goals of providing low cost and posi?vely impac?ng the world Buses are profitable within one year
Thank you!