Group 22 DM243080 Shubham Gupta DM243016 Atashi Roy DM242051 Pooja Jain DM242009 Animesh Verma 3C’s Analysis Competitors 1. Intermediaries’ markups were very high hurting the consumer’s pocket 2. The number of FDA approved manufacturers were very less in number hence less competition. 3. Big chunk of the market was mainly controlled by a few brands available in the market. 4. Competitors invested in R&D to deliver innovation and better eye health. Customers 1. The market size was very large about three fourth of the people in the US needed some type of vision correction 2. Many of the customers end up overusing the lenses and buy the cheapest lens available 3. Most of the consumers in this segment were females as they used lenses as a makeup accessory. 4. Customers were of two types first is direct who sees an ad on Facebook and proceeds to buy it the other is more indirect needs multiple touch points to proceed with the purchase Company 1. Hubble bypassed traditional channels of sales and sold products through social media using an aggressive digital marketing strategy. 2. The company used a referral model at first giving freebies to customers for each successful referral. 3. The brand focuses on sales of affordable and convenient purchases, high-quality products at a cheaper price, and willing to accept lower profit margins 4. The brand added fun to the category that had long been serious and clinical by providing attractive packaging to the product. 5. The Customer retention rate was very high for Hubble 6. The Company ran digital ads and then further added offline channels like radio, TV, and podcast for expansion. Problems 1. 2. 3. 4. 5. Allocation between online and offline spending for advertisement Getting the knowledge of the effectiveness of every single channel of advertisement Calculation of acquisition rate as you can’t pay more than what a customer really worth Cross-selling on digital platforms was much harder than the company had anticipated. Making a decision on whether to expand internationally or work on current market. Solutions 1. Using data driven marketing to track effectiveness of each channel and guide decision making. 2. To check the effectiveness they used metrics such CPM and CPV to analyse customer response. 3. Hubble used data driven marketing to calculate the acquisition rate and ensure it did not pay more than what the customer life time value is. 4. Digital spread in Europe would be a good choice as a part of solution of Hubble international expansion. PESTEL Analysis Economic Factors: NA Socio-economic Factors: 1. Hubble’s target market was primarily millennials and especially urban women millennials of age between 24-40 years. Moreover 70% of our early customer. 2. 60% of early customer came from household with annual income over $50000. 3. Consumer Behaviour – Making the product looking attractive and fun was influencing the consumer behaviour towards going forward with Hubble. Technologies: 1. Digital marketing and social media platforms such as Facebook, Instagram, Pinterest, and Snapchat 2. Google AdWords and Google Display Ads for online advertising 3. A mobile-optimized e-commerce site for easy purchasing 4. Data analytics tools to track customer behavior and optimize marketing campaigns 5. Leverage platforms such as Zocdoc to get doctors onboard. 6. Traditional offline channels like podcasts, radio and tv were used. Environment: NA Legal: 1. Hubble's adhered to strict regulations imposed by the US FDA 2. Hubble has robust prescription compliance with consumer protection laws like FTC mandated that lenses be fitted and prescribed by a licensed optometrist or ophthalmologist. SWOT ANALYSIS Strengths: • • • The founders of Hubble used data to reach out to the new audiences and implement their marketing strategy. Hubble was the social-media-first brand to sold the contact lenses to the consumers directly through digital marketing, which made it easier for the consumers to buy these lenses directly from the Facebook ads from the e-commerce site by just clicking it. Hubble offered low prices to its consumers by using the subscription model, which was not used by its competitors. The disposable contact lenses were delivered to the consumers, who had prescription, to their doorstep at an affordable price $1/day each month. Hubble used the strategy of direct-to-consumer model which was only dominated by few players. Mostly the market had traditional contact lens industry. Thus, it was an added advantage for the company. Weaknesses: • • • The founders of Hubble, Cogan and Horwitz, depended too much on Facebook advertising, which was expensive less effective with time for the business. The product range of the company was limited to only disposable contact lenses. So, the consumers looking for variety of products were losing interest with time. Hubble followed only the direct-to-consumer model for selling their products. So, their distribution channels were limited and were not available in their traditional retail stores. Opportunities: • • • Hubble has the opportunity to expand their market, beyond the United States, in the new geographical area like Asia or Europe. It can expand their product portfolio and also make related products rather than limiting only to disposable contact lenses to attract customers seeking variety and also the trendsetters. It can also make partnership with the traditional retail stores to increase their distribution channels and reach a larger audience. Threats: • • Hubble faced immense competition with its competitors like Johnson & Johnson and Bausch & Lomb, who were already established players in the market. It has to look into specific regulatory policies like collecting the prescription of the consumers and complying with FDA regulations, before selling the contact lenses to the consumers.
