Oakley Brand Audit
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Brand Audit By: Jared Clark
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Transcript of Oakley Brand Audit
Brand Audit
By: Jared Clark
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Table of Contents
Location ...................................................................................................................................... 2 Organization and Major Activities..................................................................................... 2 Brand History ........................................................................................................................... 2 Financial Data........................................................................................................................... 3 Key Personnel........................................................................................................................... 3 Recent News.............................................................................................................................. 3 Category and Competition.................................................................................................... 4 Method of Distribution.......................................................................................................... 4 Major Players............................................................................................................................ 4 Seasonal Factors ...................................................................................................................... 4 Regional Factors ...................................................................................................................... 4 Products Within The Brand................................................................................................. 5 Packaging For Products ........................................................................................................ 6 New Innovations...................................................................................................................... 6 Brand Analysis ......................................................................................................................... 6 Consumer Profile..................................................................................................................... 8 Advertising and Marketing .................................................................................................. 8 Brand Spending ....................................................................................................................... 9 Brand Promotions................................................................................................................... 9 Internet and New Media........................................................................................................ 9 Pertinent Information .........................................................................................................10 Brand Value.............................................................................................................................10 Brand Exploratory ................................................................................................................11 Recommendation ..................................................................................................................14
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Location Foothill Ranch, CA United States Organization and Major Activities The Oakley brand has been in business since the mid 1970’s. Since then, Oakley has established itself as one of the most predominant brands amongst athletes. Oakley specializes in creating solutions to enhance their customers’ overall athletic performance. With some of the most innovative action sports accessories, the Oakley brand has staked its claim as one of the most well recognized brands in professional sports. Brand History
• Oakley was founded by Jim Jannard in 1975 when he began selling handle grips for motocross
• In 1975 he ventured into the eyewear industry, and introduced the Oakley
motocross goggles.
• In the early 1980’s, he began designing goggles for skiers and glasses for bicyclists
• In 1986 cyclist Greg Le Mond wore Oakley sunglasses on his way to winning
the Tour De France.
• Oakley initiated their marketing campaign by handing out pairs of sunglasses to top athletes through the 80’s and early 90’s. One of which was Michael Jordan.
• In 1994 Oakley paid its endorsers $4 million dollars.
• In 1995 Oakley goes public through an IPO that raises $230 million.
• In 1998 the company introduces its first athletic shoe.
• The company acquires Lacon Inc. in 2001, an operator of mall-‐based sunglass
specialty stores Sunglass Designs, Sporting Eyes, and Occhiali da Sole.
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Financial Data
• Oakley is privately owned, so most of their financials are not listed to the public.
• The last time Oakley was publicly owned was in 2006,
Key Personnel
• Founder-‐ James Jannard (sold company in 2007)
• CEO-‐ Colin Baden
• SVP Operations-‐ Jon Krause
• CFO-‐ Richard J. Shields
• SVP Global Marketing-‐ Scott Bowers Recent News
• Oakley is testing a new technology that will rival Google Glass -‐ The technology will display information within the lens of the Oakley
glasses. -‐ The new glasses would initially target athletes -‐ The glasses work with your smart phone through Bluetooth -‐ The initial cost will more than likely be very expensive
• Oakley partners with Garmin International Inc.
- Garmin is a GPS navigation maker. - Partnering with Garmin will improve the Oakley skiing goggles. - Oakley skiing goggles help track the distance, and track how fast the
skier is traveling, along with other technological information.
CHANGES YTD vs. Last YTD
Curr Qtr vs. Qtr 1-Yr ago
Annual vs. Last Annual
Revenue % 28.4 25.5 17.5 Earnings % 37.1 36.6 -24.9 EPS % 35.2 36.0 -25.3 EPS $ 0.19 0.09 -0.22
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Category and Competition
• Oakley’s different categories - Eye wear -‐ Hats - Clothing -‐ Wallets - Watches -‐ Gloves - Shoes - Bags
Method of Distribution
• Online through delivery
• Through nearly 200 retail stores in malls
• Oakley also sells its products through Dillards, Sunglass Hut, and sporting good stores
Major Players
• Nike, Inc
• Marchon Eyeware, Inc
• Adidas AG Seasonal Factors Like most brands, seasonal factors affect Oakley, and impact sales for the company. During the winter, the skiing goggles experience a spike in sales. Another product that would see a spike in sales in a particular season, would be the Oakley sunglasses. During baseball season, which is in spring and summer, Oakley sunglasses are popular amongst baseball players. Naturally, seeing your favorite major league baseball player wearing these sunglasses will create a desire for consumers to purchase them as well. Regional Factors In colder, mountain areas like Colorado, skiing goggles and glove sales would be a lot higher. Since a lot of people go to Colorado every year to ski, and having skiing goggles and gloves being sold there is very convenient.
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Another regional factor would be around major sports cities. Since the Oakley brand is associated with athletes, it would be optimal to have brick and mortar locations in the area. This is proven to be evident with Oakley having 7 stores around the Dallas/Fort worth area, with Dallas ranking #1 in the best sports cities in the U.S. Products Within The Brand
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Packaging For Products
New Innovations Oakley has created a new technology for their sunglasses. The lenses that are fabricated to fit their sunglasses are now polarized HD. The lenses also are very durable. Their lenses are made to withstand high impact with objects that may come in contact and not crack or shatter, but to bend with contact. The difference between their competitors is that with the polarized HD lenses, it does not affect your vision, such as, magnifying images or images may seem shifted as in conventional lenses. Another new innovation Oakley has developed is an addition to their ski goggles. This new technology has been implemented to the inner part of the lens and it enables the user to see their speed, vertical, map their location, and view jump analytics. The user is also able to control their music and link their phone to view incoming calls and text messages. Brand Analysis Revenue of Oakley and their competitors (2014)
• Oakley Revenue-‐ 381.4 million • Nike Revenue-‐ 27.799 billion • Marchon Eyewear Revenue-‐ 46 million • Adidas Revenue-‐ 19.9 billion
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Growth Rate of Competitors Compared to Oakley Oakley
Nike Year 2010 2011 2012 2013 Sales Revenue
18.96B 20.89B 24.12B 25.33B
Adidas Year 2010 2011 2012 2013 Sales Revenue
11.99B 13.32B 14.88B 14.49B
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Consumer Profile
• Demographic: Males between the ages 15-‐45 - Middle to higher class - Athletes
• Places of Purchase - Oakley Online Store - Oakley’s Stores - Dick’s Sporting Goods, Sunglass Hut
Advertising and Marketing For the last 40 years Oakley has partnered with athletes to advertise their products. The first athlete to advertise the Oakley brand jump-‐started Oakley into stardom. The cyclist Greg Le Mond wore the Oakley sunglasses on his way to winning the Tour De France, which ultimately made the Oakley sunglasses highly sought after. Ever since Greg Le Mond, Oakley has stuck to advertising through the major athletes in different sports. Names like; Shaun White, Lindsey Vonn, Lance Armstrong, Michael Jordan, and most recently Bubba Watson have helped the brand’s success. One of Oakley’s most prominent ways of advertising has been through Major League Baseball. In 2008, Oakley reached an agreement with MLB to be a MLB Authentic Collection eyewear licensee. Oakley now has each MLB teams colors and logos for their sunglasses. Every MLB player that wears sunglasses wears Oakley.
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Brand Spending
• In 2013 Oakley spent about 11.3 Million dollars on advertising
• Sports advertising was the majority of the advertising budget Brand Promotions
• Currently offering free 2 day shipping for all online orders
• Satisfaction guaranteed policy, accepts returns on any order within 90 days of purchase.
• Offering up to 30% off for sale items on website
Internet and New Media Website
• Oakley’s website consists of powerful images portraying individuals living an active and exciting lifestyle
• Website prominently displays option to customize your own sunglasses • Only five tabs to select which makes this a very visually appealing and easy to
navigate website Social Media
• Facebook: 2,433,214 likes -‐ Oakley is active on Facebook and utilizes this platform to communicate
with their customers about causes they are concerned with, such as: “Continuing to fight the global vision crisis, we pledge $300,000 to build a school-‐based vision center with OneSight to provide eye exams & glasses to those in need. http://oak.ly/1wlzF1H #GivingTuesday”
-‐ All updates include compelling images of brand users leading adventurous lives and exemplifying their brand with relationship to well-‐known athletes.
• Twitter: 295,000 followers
-‐ Oakley retweets athletes that they endorse -‐ They also retweet their sister accounts: Oakley Action Sports and
Oakley Canada. -‐ Had moment in the World Series when people were tweeting pictures
of themselves with Oakley goggles on for good luck.
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• Pinterest: 588 followers -‐ In an effort to appeal to their female customers, Oakley has created a
Pinterest account with 13 boards so far. -‐ The account portrays female athletes in Oakley apparel and
accessories. Pertinent Information CEO in search of “Just Do It” type slogan to define Oakley Brand In an interview with Ad Age, Colin Baden discussed Oakley’s search for an agency to help create a “Rallying cry” that will summarize the brand.
• Mr. Baden was excited to hear that other agencies were competing to represent his brand
• He spoke about the challenge he faced when dealing with agencies since he was vocal about criticizing their work
• His goal is to create a “company-‐wide mantra around the brand.” • Colin spoke about how a lot of news worthy moments are captured with
individuals wearing their products. Since most Oakley products are on your face, the images are clear and the advertising is in clear shot with no money invested directly by Oakley.
Brand Value Based on the research I conducted, I have determined that Oakley’s brand value has steadily remained consistent. Oakley has evidence of gaining more popularity amongst MLB fans, X Games fans, and women. With new innovations set for the future, Oakley is staged to excel their brand to the next level.
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Brand Exploratory Qualitative Research I surveyed six individuals to explore the attitudes people hold about the Oakley Brand. My respondents were men and women ages 19-‐43. What do you associate the brand Oakley with?
Respondent 1: “I associate Oakley with high quality sunglasses and sports.” Respondent 2: “Guy Products” Respondent 3: “Active men” Respondent 4: “MLB” Respondent 5: “Sunglasses” Respondent 6: “I associate Oakley with sports. I feel most of their products are geared towards athletes. You see many players who use Oakley’s making the brand popular. They also seem to be more for men as I don't typically think of purchasing Oakley’s for myself or for any other woman.
What makes Oakley products so appealing?
Respondent 1: “Oakley’s are appealing because I think they are so popular so they must be good glasses. When a brand has a high following and loyalty there is a reason why. Everything goes into that from quality products to great customer service. It makes the brand distinctive.” Respondent 2: “I’ve never actually seen the brand anywhere.” Respondent 3: “Their high price point makes them appealing, and the fact that they don't offer many sales, it makes them a status symbol.” Respondent 4: “The sports oriented approach the company takes towards its marketing scheme.” Respondent 5: “They always show active sporty looking people wearing them.”
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Respondent 6: “They become appealing because people see athletes wearing them and want them as well. They are sleek and modern making them easy for guys to wear them.”
What do you think makes the Oakley brand unique?
Respondent 1: “Oakley is unique because they make high quality sunglasses while also making them fashionable with a sporty vibe going on. While you associate Oakley with luxury or high end they are also affordable. People from all backgrounds and people with different interests wear them. They appeal to all different areas of consumers.” Respondent 2: “The name Oakley.” Respondent 3: “Oakley’s are used by recognized athletes and they have an aggressive style.” Respondent 4: “The fact that they fall under the sports category but are also luxury. They are distinct because they are not readily available as much as other brands that they compete with.” Respondent 5: “Their designs” Respondent 6: “I wouldn't say the Oakley brand is really unique as most other brands carry the same products Oakley does. I think Oakley is seen as a top brand because they know what type of people to market.”
What is the likelihood of you purchasing Oakley products, and for whom?
Respondent 1: “I'm highly likely to purchase Oakley’s for myself and anyone who I want to give a gift too. I like sports and pretty much everyone in my family is athletic so I can't think of anyone who wouldn't enjoy them.” Respondent 2: “not very likely unless it is for a gift and the person wants Oakley brand” Respondent 3: “No I wouldn’t buy them. Have never considered the brand, but I think it’s great if you can afford it.” Respondent 4: “I wouldn't buy Oakley's for myself because I'm not a very sporty person but I might buy them as a nice birthday gift or Christmas gift for the men in my family.” Respondent 5: “50/50 for myself”
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Respondent 6: “I’ve never purchased an Oakley product for myself but I have purchased it for my boyfriend. I would mainly purchase Oakley for a man.”
Who do you think Oakley’s target customer is?
Respondent 1: “Oakley’s target customer is an active man who likes to spend a lot of time outdoors. But like I said they have expanded enough to appeal to all kinds of targets.” Respondent 2: “Men” Respondent 3: “Active men 20s to mid 40s” Respondent 4: “Oakley's target customer is an athletic, middle to upper class male.” Respondent 5: “men” Respondent 6: “I think Oakley’s target customer is men and any athletes. Their products are sports related items. Their clothes are mainly for doing some sort of sport and their sunglasses also have the sporty feel to them.”
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Recommendation Oakley has become an iconic brand associated with professional sports so it’s
no wonder that they have built a strong bond with the athletic community. The CEO
highlighted that Oakley has been very lucky with their marketing since they receive
a lot of free advertising due to the visibility of the brand. The CEO, Colin Baden,
bluntly stated, “We're on your face. That's what they photograph. They don't
photograph your feet.” Based on the research I conducted I found some areas of
improvement to help enhance Oakley’s Brand awareness. Oakley can improve by
appealing to women, increasing advertising, and expanding their product line.
Oakley is well established amongst the 15-‐45-‐age male demographic, but
there is much room left to scale and appeal to a much broader market. Based on the
feedback I received from my surveys, the majority of the respondents believe that
the Oakley brand appeals to men. With women being the majority of America’s
purchasing power, Oakley can develop a strategy to target women and expose them
to their brand. In order to appeal to women, Oakley must target them on networks
that they frequent. A good way to accomplish this would be to hire a well-‐known
spokesperson that is living a healthy, active lifestyle and show them wearing Oakley
gear. Oakley’s top competitors: Nike and Adidas are well established and have built
a strong following with both men and women. Creating products that appeal to
women and showing them the quality is key to redefining the Oakley brand.
Oakley doesn’t spend much on their advertising and they rely heavily on
their customers to find them. Men often watch baseball and notice their favorite
player sporting sunglasses and they do their due diligence to determine the brand
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and cost. Colin Baden is well aware of the potential that exists by creating a mantra
that clearly defines what Oakley stands for. When I think of Oakley I think about
what it means to be bold, fearless, and unique. The top athletes in major sports trust
the brand to shield their eyes from sunrays for crucial games, and to provide clear
sight when on the ski slopes. The most important thing when playing is your ability
to see and react. The fact that so many players trust Oakley speaks volumes and by
highlighting this essential fact, Oakley can successfully advertise this to the public
and help foster a stronger customer base.
There is much room within the Oakley catalogue to expand. One major area
of improvement is creating more shoe options. I previously touched on Nike and
Adidas being top competitors, and in order to successfully compete it is crucial to
keep up with what customers want and need. When scrolling through the Oakley
website I noticed that the only types of shoes Oakley offers are golf shoes, sandals,
and boots. To successfully compete, Oakley should seriously consider venturing
into the shoe industry. Expanding their shoe product to running shoes may give
them just the competitive edge that will elevate their status among their
competitors.
Although there is room for improvement, Oakley has a strong following
within the sports realm and is recognized as a luxury athletic brand. It has managed
to become very well known for its high quality sunglasses and unique style. The
possibilities are endless if Oakley puts forth extra efforts to actively seek their next
customer.
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Work Cited http://www.fundinguniverse.com/company-‐histories/oakley-‐inc-‐history/ http://www.advfn.com/exchanges/NYSE/OO/financials?btn=company_data&start_date=7&mode=annual_reports http://www.bloomberg.com/news/2012-‐04-‐17/oakley-‐tests-‐technology-‐that-‐would-‐rival-‐google-‐s-‐project-‐glass.html http://www.ocregister.com/articles/oakley-‐640470-‐garmin-‐airwave.html http://www.rsvlts.com/2013/07/26/best-‐sports-‐cities/#2 http://www.slideshare.net/machwill/oakley-‐powerpoint http://www.hoovers.com http://www.advfn.com/exchanges/NYSE/OO/financials http://adage.com/article/news/oakley-‐ceo-‐rallying-‐cry/293028/ http://www.bizofbaseball.com/index.php?option=com_content&task=view&id=2314&Itemid=42 http://www.oakley.com http://www.marketwatch.com/investing/stock/NKE/financials http://www.marketwatch.com/investing/stock/addyy/financials http://www.sicklines.com/reviews/oakley-‐crowbar-‐mx-‐goggle-‐review/ http://www.sierratradingpost.com/oakley~b~15097/ http://oakley.swedausa.com/Main/default/ProductsDetail.aspx?id=6 http://thekevinchen.wordpress.com/2010/09/26/oakley-‐gearbox/ http://www.pinterest.com/Dreamvillesk/oakley/ http://www.golflocker.com/golf-‐shoes/oakley-‐ozone-‐golf-‐shoes http://funny-‐pictures.picphotos.net/shy-‐kid-‐sunglasses/ http://elyseriley.com/packaging-‐2/ http://www.sportrx.com/blog/mlb-‐postseason-‐clinches-‐popping-‐bottles-‐snow-‐goggles/ http://gormelito.deviantart.com/art/Oakley-‐goggles-‐Shaun-‐White-‐163438031 https://www.facebook.com/oakley https://twitter.com/oakley http://www.pinterest.com/oakleywomen/
