Clearly Case Study

MARKETING MANAGEMENT-II
CASE STUDY
ON
Clearly: Organizing for Omnichannel Retailing
SUBMITTED BY- GROUP –

07
SACHIN RAJPUT –
025/2020
RIYA ARORA – 030/2020
ANSHU SETHI – 041/2020
NEERAJ AGARWAL-
042/2020
ANIRURDH SINGH –
045/2020
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Question 1 How can clearly achieve its sales objective?
Answer
The core objective of sales of clearly is to increase the online sales beyond the existing
4% of industry sales & bring the remaining 96% (10.46 million) of the consumers to the
online outlet of retailing to gain traction. The quantifiable target is to achieve $500 million
by 2018, profitably.
- Adopt and refine an integrated omnichannel marketing model-explain difference b/w
omnichannel and multi-channel
Multichannel marketing Omnichannel marketing
 Consists of various channels of  Consists of various channels but
engagement like retail brick and with tight integration of
mortar store, mobile store, social information amongst all the
media offered channels for retail.
 All channel is individually distinct  The channels are in
from each other in the sense that synchronization with each other
they have their own objectives and possess uniformity in their
pertaining to goals and strategy. goals and strategy.
 These various outlets for customer  This increases customer
engagement sometimes adversely engagement and offers desirable
affect the customer shopping value addition to the customer
experience which creates brand loyalty.
 Due to focus on different create  Ultimately offers customer
distant experiences for the customer centricity consistent experience,
resulting in misinformation and and flexibility.
miscommunication.
Clearly in this context clearly was not able to integrate their omnichannel marketing retailing
with the intended efficacy as evident by the slow rate of growth of the online sales at only
4%. The company can try to showcase their latest collections for display to customers and
individual ECPs. They could try setting up innovation hubs to identify the latent and secret
needs of the customer and offer new design opportunities.
- Absence of collaboration with ECPs who held market share of 50%- leveraging advantages
of ECPs would benefit the sales of Clearly’s optical products raising brand awareness and
market penetration. Also, a collaborative sprit would turn out to be a mutually beneficial
alliance for both Clearly and individual ECP’s.
To highlight the strengths and limitations of ECPs
Strengths Limitation
 Individual ECPs possess  An intrinsic limitation of ECPs is the
approximately 50% of the market lack of capability pertaining to
share for overall vision care. online retailing channel and the
inability to expand their
conventional business model.
 ECPs were the principal purpose of  Although the ECP’s possessed a
contact for the eyewear buyers in the huge market share, they were split
optical environment, directing eye into small groups where most of
assessments and giving them were not able to operate with
prescriptions. They possessed profits in context to mass
consumer loyalty and were favored merchandizing houses. Walmart and
for end-to-end service solutions Costco offered significant threats to
through clients. ECPs likewise the business operations of ECP’s as
dominated the primary distribution they were able to channelize their
channel for the industry, huge scale to lower their product
representing 73% of the eye care offerings and offer an efficient retail
patients by volume, around the ambience.
world.
 Their competitive advantage was the
depth of the relationship built
through tangible and direct
interaction with the customer. This
gave the customer a high rate of
satisfaction and enable them to
leverage the touchpoints and
experience of the customer.
To explicate this collaboration between ECPs and Clearly, we suggest a model where ECPs
can function as independent service providers with reference to conducting eye
examinations and prescriptions and source their housing and retailing through Clearly
online customer on walk-in visits.
Clearly would benefit by gaining a vast network of ECP outlets which would enable them
to replicate the advantages offered by ECPs and win costumer favor. In return the ECPs
would benefit by gaining access to Clearlys online data capabilities to refine their
products and services, catering to attract millennials who are tech-savvy and desire flexibility.
Clearly by assessing the segmentation of their customers based on demographic and
psychographic attributes can b pinpoint their offerings to an audience who is young, tend to
be living in urban cities and are young millennials holding white collar jobs. They could try
to position their product lines by launching social media campaigns and endorsing their
advertisements by social media influencers to target the identified customers. They should
focus on the defining the perception of their products seeming to match the latest
fashion trends in spectacles and contact lens to gain traction in customer visibility and
generate conversions in sales.
Question 2 How do Clearly's multiple channels compare with respect to foot traffic and
sales?
Answer
Even after updated technology and providing better visual appeal to the product, clearly was
not able to attract a high number of customers. Its market share was just 4%, indicating that
96% of the customers are left unexplored.
ECP’s maintained a direct relation with their customers and because of the functional benefits
provided by ECPs, customers were also attracted to them.
Clearly need to identify and understand the needs of the customer, which their retailers were
lacking in.
These all factors gave ECP’s an upper hand and which had a compounding effect on footprint
and sales
Steps taken by clearly to increase its customer base:
• Inauguration of 3 stores at manila, Tokyo, and Vancouver
• After identifying the needs of customer, clearly should work on providing functional
activities like after sale services of repair and cleaning which will attract more
customers
• Collaboration with ECP’s will be a big step by clearly for the benefit of both as
clearly will get a customer base and ECP’s will be updates by the technology and can easily
manage their data by using cloud services, billing, operations, etc.
Question 3 Did customers who used multiple channels shop more frequently and /or make
more purchase? Were these customers more profitable than those who used the online
channel alone?
Answer 3
Products offered by retailers are differentiated based on several characteristics – not only
reliant upon product characteristics but also consumer segment characteristics. Because of
this, retailers are expected to offer a wide range of the same product category and this is not
possible only if we operate at one channel. Some of the consumers of clearly opticals which
shows that we need to keep a wide variety of product range include:
 The buyer for clearly organization for omnichannel retailing is not necessarily the
group that consumes he product, but rather purchases the product from clearly
organizing for omnichannel retailing to either distribute further, retail it, or even
consume it.
 Hypermarkets and supermarkets, as well as independent retailers and
distribution agents to end consumers are the core buyers for clearly organizing for
omnichannel retailing that make up the market’s volume.
 Supermarkets and hypermarkets, along with many food chains that are
concentrated, which increases the buyer power.
 Products are stocked with buyers and retailers by Clearly Organizing for
Omnichannel Retailing based on consumer demand.
Research shows that people spent an average of 4% more on every shopping occasion in the
store and 10% more online than single-channel customers. conducting prior online research
on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among
omnichannel shoppers. Even more compelling, with every additional channel they used, the
shoppers spent more money in the store. For example, customers who used 4+ channels spent
9% more in the store, on average, when compared to those who used just one channel
So, Yes, we can say that customers who shop through multiple channels shop more
frequently and make more purchases as it is also visible from the data given in table
below that at least 90% of consumers ordered online or through call centers as
compared to people who buy from stores. The reason being increasing needs of people and
consumers can shop anytime while being at their homes or at marketplace making products
easily available.
Retail sales through digital channels (including mobile sales) increased by a massive 23% in
2019. Much of these gains have gone to online retailers. Amazon is the biggest beneficiary,
now accounting for 26% of all online retail sales.
The omnichannel strategy hinges on the idea that providing a seamless shopping
experience in brick-and-mortar stores and through a variety of digital channels not only
differentiates retailers from their peers, but also gives them a competitive edge over
online-only retailers by leveraging their store assets. The only difference between online
channel retailing and omnichannel retailing is that online only retailing can make the sales
process a little harder for our customers. For example, if our customer orders online, they
must wait for the item to be shipped to their home. If this were an omnichannel retailer, they
could order online and pick it up right away in the store, which is a strategy called buy online,
pick up in-store (BOPIS). Therefore, we can also say that these consumers are better off than
online channel retailers.
Question 4: Are there any synergies between Clearly’s online and Brick-And-Mortar stories?
If so, what evidence can you provide of such synergies?
Answer.
No, there are no synergies created between Clearly’s online & Brick and Mortar stores
The motive of the company was to increase the customer interaction which only happened
when the patients visited offline stores.
 Initially company does not expect to make sales at the store, but as it happened sales
at the stores were complimenting online sales and the new customers first approached
through the offline stores and 40% if the existing customers visited online store.
 Clearly had set a target of achieving sales of 500 million dollars by 2018. Being
positioned as a fashion accessory and eye wear products it was witnessing only 4% of
the market share. The company also launched promotional offers like First Pair Free
(FPF), where customers only paid for shipping and Handling charges
 The main reason for more foot fall in the offline store was ECP’S service as the
customer would get the eye test done free of cost or at minimal charges so they
use to buy the glasses from the store only as they could easily check what types of
glasses suits them and enabled them to check the quality of the product.
 Inferring from Exhibit 6, it is evident that they were able to achieve this motive of
theirs, which earlier was vested with only ECP’s.
The company tried creating a win-win situation for themselves as well as the ECP’s
by:
 Linking of the business platform of individual ECP’s with customers from
Cleary’s digital platform
 Clearly will also give ECP’s access to its ongoing innovations in optical
technology
 Clearly would provide turnkey solutions to individual ECP’s
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MARKETING MANAGEMENT-II

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