Gordon Tsai | Jonathan Ong Keerthan Harish | Alexander Parker
Jul 17, 2015
Gordon Tsai | Jonathan Ong
Keerthan Harish | Alexander Parker
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Keeping You In Sight
13 Feb 2015
Agenda
Background Slides 3 - 4
Recommendation
Retail / Organizational Strategy
Point-of-Sale System
Talent Management
Slides 5 - 21
Timeline Slide 23
Financials Slides 24
Conclusion Slide 25
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“[We want to] maintain [our] commitment
to creating fashionable and affordable
eyewear for customers.”
- Peter Westdale, CEO
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Competitive Landscape
Market Share Targets:
Luxotica and National Vision
We offer a cheaper designer
alternative to the traditional
luxury brand Luxotica
National Vision is our closest
competitor by target market
and pricing. Online
promotions allow customers
easier access to our product
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Recommendation
Twenty20 cares about YOU
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Recommendation
Twenty20 cares about YOUYOUR Eye health
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Recommendation
Twenty20 cares about YOUYOUR Fashion
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Recommendation
Twenty20 cares about YOUYOUR Budget
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Recommendation
POS SystemTalent
Management
Retail /
Organizational
Shift to younger,
cost-and-fashion-
sensitive
customers
Fujitsu Global
Store POS meets
requirement for
light, retail-friendly
POS
Drive
accountability,
change company
culture
Strategy
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Three-pronged push to shift our focus onto a new demographic of younger
customers:
Retail / Organizational Strategy
Health Fashion Budget
Inform customers about eye
health and importance of
checkups (ACA)
In-store eye-care specialists
Introduce Richard
Revamped (R-Squared),
customizable new line
Invite guest designers to
design brands each year
(higher end)
Provide cost-sensitive
customers with affordable
options
Introduce high-volume line of
eyewear
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Why Young Customers?
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Why Young Customers?
Middle-income
young adult
20 – 25
year olds
$50,000 -
$100,000
income
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Growing
market
Cost-
sensitive
Why Young Customers?
Large online
population
Frequent
turnover
Health needs
Middle-income
young adult
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State-by-State Opportunity Index
100% 0%
% customers fitting our ideal profile
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Metropolitan Opportunity Index
100% 0%
% customers fitting our ideal profile
Factors:
Population
Age
Kids
College
Income
Insurance
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People will have access to vision services from
the Affordable Care Act in the next five years
Strategy - Health
25 millionYoung adults under age 26 stayed with their
parents’ plans in 201315 million
WHO?
Push the importance of yearly eye checkups through social
media and traditional channels
HOW?
Offer discounts on eyewear to encourage yearly checkups
Send periodic reminders about checkups to increase
retention
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Strategy - Fashion
Richard RevampedR-Squared: Your Taste, Your Budget.
Richard has proven success with younger crowd
Configurable color and frames
Build online platform to offer customization options
Guest DesignersMeet fashion needs of less price-sensitive crowd
Yearly rotating designs
41% of young adults prefer stylish, designer frames
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Strategy - Budget
Of consumers age 18 - 24 would replace glasses
more frequently if they were less expensive50%R-Squared as a high-volume line, which will lower costs
Use prescription results to send personalized offers
Technology
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Comparison of POS Systems
MetricsEpicor Retail
Store
Fujitsu
GlobalSTORE
POS
Microsoft
Dynamics
Micros
Systems
Xstore POS
Oracle
Retail POS
Scalability / Cloud
Online Integration
Depth of
functionality
Cost
Security / Reliability
Ease of use
Strong Weak
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Fujitsu GlobalSTORE POS
WHY?
Features tailor-
made to meet the
needs of a small to
mid-sized retail
company
Proven POS results
for retailers (Mark &
Spencer, Nordstrom)
Cross-platform
capability for
flexible
implementation
Easy of use means
quick training for
store associates
Powerful promotion
platform will help
push our health-
centered discounts
Enhanced data
security helps us
protect patient and
payment
information
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Fujitsu GlobalSTORE POS
HOW?
Estimated implementation period4 months
Estimated implementation cost$600,000
In-store feedback about product design can be used by the design
team to create a Twenty20 that is more responsive to consumer taste
Human Resource
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Human Resources – Short Term Goals
Drive AccountabilityHOW?
Team-based
rewards
Merit-based
system
Incentivize employees
to sell as a team
Profit-sharing as a
percentage of
regional performance
Promote employees
based purely on merit
Promotion criteria
published firm-wide to
promote transparency
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Human Resources – Short Term Goals
Change CultureHOW?
Team-based
hiring
Emphasize
core value
Incentivize referral
system
Retail location hiring
based on 2/3 vote
Company’s core
message of “Keeping
you in sight”
Image as a socially-
conscious brand will
attract top talent30-day trial
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Proposed Restructuring
President
Alison Boyd
CFO
Mark Colfer
COO
Jason Nakamura
CTO
Thomas Stuart
CMO
Heather Sanchez
Director of HR
Julia Feinberg
Director of Strategy
Jonathan Khil
President, Contacts
& Eyeglasses
Division
Benjamin O’Leary
President, Design
To be filled
President,
Sunglasses
Division
Amy Powell
Financials & Timeline
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Timeline
Evaluation
1 2 3 4 5
Strategy & Operations
Health Care Promotions
R Squared Brand
Guest Designers
Technology
Point of Sale System
HR
Short term - Accountability
Long term - Culture
Key Metrics:
Revenue
Same-store sales
Customer retention
Employee retention
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5-Year Discounted Cash Flow
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Conclusion
POS SystemTalent
Management
Retail /
Organizational
Jon walks in for a
complimentary
checkup and talks
with store team
We keep track of his
prescription and we
send him a
promotion, he buys
Increased teamwork
fosters innovation,
Jon’s comments are
sent to design team
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Recommendation
Twenty20 cares about YOU
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Recommendation
Twenty20 cares about YOUYOUR Eye health
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Recommendation
Twenty20 cares about YOUYOUR Fashion
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Recommendation
Twenty20 cares about YOUYOUR Budget