Wesley Huang Digital Marketing: Hubble Final Case Study 1. Assessment of Hubble’s Current Business Model Hubble's present business model, centered around a direct-to-consumer (DTC) approach in the contact lens industry, involves delivering affordable contact lenses via an online subscription model. This model enhances accessibility for consumers, as the company directly dispatches lenses to customers. While the digital platform, datadriven marketing, and targeting urban millennial women are notable strengths, challenges include market competition, potential customer skepticism about product quality due to affordability, and concerns about scalability. Investment Perspective: Investing in Hubble's ongoing fundraising round is a prudent choice. The company has effectively established brand awareness, demonstrated customer satisfaction through digital marketing, and positioned itself in a competitive market. The expanding contact lens industry offers growth opportunities, although caution is warranted to address potential market saturation and customer skepticism. Striking a balance between adapting to market trends and ensuring the business model's long-term viability is essential. 2. Customer Acquisition Efficiency Building on its digital presence, Hubble exhibits efficient customer acquisition primarily through channels like Facebook. The company's commendable Net Promoter Score and proactive resolution of customer concerns contribute to effective customer retention. However, areas for improvement include enhanced tracking of customer retention metrics, reducing churn rates, and maximizing the lifetime value of customers. Strategic segmentation and targeted marketing efforts can further bolster Hubble's customer acquisition strategy. 3. Utilization of Owned, Earned, and Paid Media Hubble has successfully employed paid media, particularly through Facebook advertising, resulting in immediate results and increased brand visibility. The use of owned media, such as customer surveys, provides valuable insights for strategic decision-making. Scaling the company raises concerns about the diversification of media channels and the sustainability of long-term campaign effects. Building brand equity requires continuous experimentation and adaptation to dynamic digital marketing trends and competitor strategies. 4. Offline and Online Advertising Dynamics a. Online vs. Offline Allocation (April 2018): The current allocation of 78% to online and 22% to offline aligns with the digital-first strategy but may benefit from a more balanced approach, considering potential customer exposure to offline channels. A diversified approach ensures comprehensive market coverage. b. TV Campaign Impact: Given the observed positive correlation between TV campaigns and increased sales, reallocating a portion of the budget to TV advertising can enhance brand awareness. Rigorous testing and optimization of the budget allocation are essential to maintain marketing efficiency and effectiveness. c. Budget Allocation for New vs. Retargeting: Striking a balance between allocating budgets for new customer acquisition and retargeting is crucial. Analyzing Customer Acquisition Cost (CAC) versus Lifetime Value (LTV) guides optimal distribution, ensuring a judicious approach to both attracting new prospects and retargeting efforts. Conclusion: Hubble faces critical decisions regarding its business model, media strategy, and expansion plans. A comprehensive investment evaluation, considering both strengths and challenges, coupled with refined customer acquisition and media strategies, positions Hubble for sustained growth and a significant role in the eyehealth industry. Continuous adaptation to market dynamics and strategic decisionmaking are paramount for the company's future success. https://www.hubblecontacts.com/ https://www.prnewswire.com/news-releases/hubble-contacts-launches-firstsilicone-hydrogel-daily-contact-lens-skyhy-by-hubble-301933087.html
