B&L Presentation

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SOME OF THE PHOTOGRAPHS MAY OBSTRUCT FEW PEOPLE BUT, THEY ARE PURELY SHOWN FOR

DEMONSTRATION PURPOSE ONLY

Case study on Bausch & Lomb: Effective positioning

Under the guidance ofProf: Nikhil Rao

B&L is Globally renowned name in eye-care products

Contact lenses, Sunglasses etc.

1853 John Jacob Bausch(Bausch) a German immigrant, set up a small optical shop at Rochester, New York.

Bausch took financial assistance from Henry Lomb (Lomb).

Initially manufacture rubber eyeglass frames.

1900, B&L started producing various optical products.

1903, B&L was able to get patents for binoculars, microscopes and a camera shutter.

It was the 1st company to introduce soft contact lenses in 1971.

Bausch & Lomb

•B&L expanded its operations worldwide over a period of more than 150 yrs.

•By 2004, the company’s revenue had reached $2.2 billion and its products were available in around 100 countries.

•Used different business strategies in different countries of Asia, Europe, North America, Latin America.

•By the end of 1st quarter 2005, B&L reported earnings of $34.5 million as against $23.5 million for the same period in 2004.

•The chairman and CEO of B&L, Ronald Zarrela, stated that “this was a solid first quarter” Sighting the bright future.

•The earnings guidance by B&L officials for 2005 was raised from $3.40 a share to $3.45 a share.

Revenue

•According to the clinical evaluation of a single vision spherical soft contact lens wearers, nearly 3-to-1 margin of patients who were looking to switch brand preferred to shift to B&L.

•B&L worked on a mission to serve its customers “ to see, look and feel better through innovative technology and design “ .

•By this the company wanted to realize its dream of being the number one company in the world producing eye related products.

•Commenting on the growth of B&L over the years, analysts opined that the international expansion of B&L was facilitated by a planned approach for product launch by targeting the most lucrative segments.

VISION

•Divided its products into 3 different segments:

1)The vision care segment comprised contact lens and other lens care products and accessories.

2) The pharmaceutical segment concentrated on manufacturing and selling eye-care pharmaceutical on prescription and over the counter sale.

•Gave special emphasis to ophthalmic medications in the pharmaceutical segment.

3)The surgical equipment segment manufactured and sold equipment used for different surgeries for eye related problems such as cataract and other retinal surgeries.

Segmentation

•For the Age group of 1 to 10 yrs old with the introduction of sunglasses for babies with a message that the eyes of children needed the most protection from the ultra-violet rays of the sun.

•For the Age group of 20 to 30 served a variety of prescription lenses for problems such as dry eyes, eye allergies etc.

•Operated profitably throughout the world by serving the needs of different segments through constant innovation

Segmentation Cont….

•Adapted demographic segmentation to expand its business internationally .

•Concentrated on marketing its contact lenses and other eye care products to youth and young adults in various countries of the world.

•For young contact lens users, the company developed soft contact lenses and disposable lenses and marketed these products.

•Manufactured and marketed one-day disposable lens, which can be used for only one day and discarded.

•Lenses that could be worn for up to 30 continuous days and nights were also made available considering the need to serve products for the convenience of different segments of the users.

Marketing Strategy

•These varieties' of disposal lenses were introduced specially for those who did not prefer cleaning and storing of lenses.

•To satisfy the fashion conscious youth and young adults B&L brought in variation in its eye-care products.

•Made its mark in the sun-wear market segment through its Rayban brand of sunglasess.

•Rayban sunglasses were positioned worldwide as a fashionable way to protect the eyes from the sun.

Marketing Strategy cont……

Analyze the international expansion of B&L:

• B&L adopted demographic segmentation to expand its business internationally.

• concentrated on marketing its contact lenses and other eye-care products to youth and young adults in various countries of the world.

• To suite the preferences of young contact lens users, the company developed soft contact lenses and disposal lenses.

• Manufactured and marketed one-day disposal lenses.

Questions and Discussions

• Lenses that could be Worm for up to 30 continuous days and nights were also made available.

• Specially for those who did not prefer cleaning and storing of lenses.

• For fashion-conscious youth and young adults B&L brought in variations in its eye-care products.

• Made its mark in the sun-wear market segment through its Rayban brand of sunglasses.

• Rayban glasses were positioned worldwide as a fashionable way to protect the eyes from the Sun.

Questions and Discussions cont…..

Comment on the different segmentation adopted by B&L for expanding its business throughtout the world

•Divided its products into 3 different segments:

1)The vision care segment comprised contact lens and other lens care products and accessories.

2) The pharmaceutical segment concentrated on manufacturing and selling eye-care pharmaceutical on prescription and over the counter sale.

•Gave special emphasis to ophthalmic medications in the pharmaceutical segment.

3)The surgical equipment segment manufactured and sold equipment used for different surgeries for eye related problems such as cataract and other retinal surgeries.

Questions and Discussions cont…..

Thank You!!

Thank You!!