Introduction / Executive Summary
Warby Parker, a US-based eyewear company, launched its home try-on program in 2010, allowing customers to try up to five frames at home for free. This innovative approach to digital marketing has contributed significantly to the company’s success.
Company & Industry Background
Warby Parker was founded in 2010 by Neil Blumenthal and Dave Gilboa, with the goal of providing high-quality, fashionable eyewear at affordable prices. The company operates in the highly competitive eyewear industry, which is dominated by a few large players. Warby Parker has managed to differentiate itself through its unique business model, which combines online sales with a strong brick-and-mortar presence.
The company’s online platform allows customers to browse and purchase eyewear, as well as schedule eye exams and consultations with optometrists. Warby Parker also operates over 150 physical stores across the US and Canada, providing customers with a seamless shopping experience across online and offline channels.
The Business Challenge
Warby Parker’s home try-on program was launched in response to the challenge of getting customers to try on glasses online. The company recognized that many customers were hesitant to purchase eyewear online, as they wanted to try on different frames before making a purchase. By offering a free home try-on program, Warby Parker was able to address this concern and increase customer conversions.
Analysis
SWOT Analysis
A SWOT analysis of Warby Parker’s home try-on program reveals several strengths, including the company’s strong brand identity and customer loyalty. The program also has several weaknesses, such as the potential for customers to keep the free frames without making a purchase. Opportunities for the program include the ability to collect customer data and improve the overall shopping experience. Threats to the program include competition from other eyewear companies and the potential for customers to become accustomed to free trials and expect them from other companies as well.
Porter’s Five Forces Analysis
A Porter’s Five Forces analysis of the eyewear industry reveals that the industry is highly competitive, with many players competing for market share. The threat of new entrants is moderate, as it is relatively easy for new companies to enter the market. The bargaining power of suppliers is low, as Warby Parker is a large customer and has significant negotiating power. The bargaining power of buyers is moderate, as customers have many options for purchasing eyewear and can easily switch to a different company if they are not satisfied.
Strategic Options Considered
Warby Parker considered several strategic options when launching its home try-on program, including partnering with optometrists to offer eye exams and consultations, expanding its physical store presence, and investing in digital marketing to increase brand awareness. The company ultimately decided to focus on its home try-on program, as it believed that this would be the most effective way to drive customer conversions and increase sales.
What the Company Actually Did / Outcome
Warby Parker’s home try-on program has been highly successful, with over 5 million customers participating in the program since its launch. The company has also seen significant growth in sales, with revenue increasing from $100 million in 2012 to over $1.5 billion in 2020. Warby Parker has also expanded its physical store presence, with over 150 stores across the US and Canada.
Key Takeaways for MBA Students
- Warby Parker’s home try-on program is a great example of how a company can use innovative marketing strategies to drive customer conversions and increase sales.
- The program also highlights the importance of understanding customer needs and preferences, and developing strategies that address these needs.
- Warby Parker’s success demonstrates the value of combining online and offline channels to create a seamless shopping experience for customers.
Discussion Questions
- What are the key factors that have contributed to Warby Parker’s success, and how can other companies learn from its example?
- How does Warby Parker’s home try-on program address the needs and preferences of its target market, and what are the implications of this for other companies seeking to develop effective marketing strategies?
- What are the potential risks and challenges associated with Warby Parker’s business model, and how can the company mitigate these risks to ensure long-term success?
This case study is for educational discussion purposes only and synthesizes publicly available information. Readers should verify specific figures against primary sources before academic citation.
