Luxottica: Internationalisation and Expansion
Luxottica: Internationalisation and Expansion
The company Luxottica is the world leading manufacturer, distributor and luxury brand designer of eyewear and sun glasses. It has net sales of euro €5.8 billion, over 60,000 employees and a robust global presence. It has presence in North America, South America, Europe, Asia-Pacific and South Africa.
Today Luxottica’s worldwide strategy is mainly global with a high level of standardization and low adaptation. Do you see any room for adaptation strategies in price, promotion, distribution or productions?
Using the strategy of globalization Luxottica took over several countries and increased their sales volume. The strategies which were applied in the foreign countries were in the focus of the company. One of the most important key aspects has been the standardization or adaption of numerous elements of the marketing mix.
The attention of product elements of the marketing mix and communication has been immense. While Luxottica is involved in several countries all over the world and the company is in a position to face and deal with variety of environmental difficult situations, in this case it is just focusing on some ,marketing mix elements.
E.g. if you have a problem in the market of western Europe the solution for this problem might not be the solution for a problem on any other market as for example the US-American.
Having high standardization in their product range, Luxottica also has a high amount of adaption in manifold countries where the company has several wholesale chains and retail. As Luxottica is able to gain insight into consumer tastes and preferences, the company is always close to its customers. One main thing the company did very well was satisfying customer needs and expectations at any time.
Due to high level of standardization and low level of adaption Luxottica´s success with the internationalization strategy is primarily global. Now Luxottica is in a great position to distribute in diverse parts of the market. Currently the company is providing its consumers with various differentiation options with the newest designer frames and luxury sun frames.
Some core elements of the marketing mix decisions.
The decision to choose standardisation over adaptation is crucial to find a target market where it can be applicable either than where it’s unsuitable, income is low, the actual need for the product.
The prices of Luxottica:
The overall hard work fail if the products are not priced properly, even when Luxottica is a market leader providing customers various choices of eyeglasses and sun glasses, promoted it accurately and has distribution channels. But the prices will always stay very important. Price should reflect quality and value.
Problems with exchange rates,