Business case study

1. Warby Parker
Odette School of Business
Ryan Donally
Evgeni Gentchev
Taylor Laporte
Bilal Rammo

2. Issue Identification
• How to continue to meet our social commitment of distributing eyeglasses
to those in need in a sustainable way? What decisions need to be taken in
order to retain their growth momentum?

3. Recommendation
• Three pronged approach
• New Corporate Headquarters
• Increase Number of Physical Store Locations
• Further Cause Marketing Efforts

4. Agenda
• Strengths and Opportunities
• Weaknesses and Threats
• Competitive Advantage
• Alternatives
• Weighing the Options
• Recommendation Advantages
• Financials
• Implementation

5. Strengths and Opportunities
Strengths Opportunities
Socially Conscious
Brand Equity
Superior Customer Service
Low Cost Distribution
Accessible Price Point
Quality similar to industry leaders
Partnerships with non-profits
Expand product offerings
Increase social commitment
Brand Recognition
Geographical Expansion
Changing Consumer Demands

6. Weaknesses and Threats
Weaknesses Threats
Brand Awareness
Cost of One to One Model
Relative Low Margin
Price/Quality Perception
Economic Sustainability
Mature Market

7. Competitive Advantage
Valuable Rare Inimitable Non-
Substitutable
Exploitable
Customer
Service
Product
Quality
Business
Model
Price of
Product
Online
Distribution
Brand

8. Alternatives
• Status Quo
• Extend Product Offerings
• Increase Number of Physical Locations

9. Weighing the Options
Economic
Sustainability
(40%)
Social
Commitments
(10%)
Brand Image
(30%)
Brand
Awareness
(20%)
Totals
Status Quo 2 2 2 2 2.0
Extend
Product
Offerings
1 2 1 2 1.3
Increase
Number of
Physical
Locations
3 3 3 3 3.0

10. Recommendation Advantages
• Increasing Brand Awareness
• Experiential product engagement
• Extending culture of Warby Parker
• Increasing Sales

11. Assumptions:
1) Growth continues to double/year
2) Boutiques are 50 sqft. Outlets 500 sqft.
3) $2927/sqft on outlets (80%). $585/sqft (20%)
Revenues by year and per location
2010
2011
2012
2013
2014
In $
$ 3,333,300.00
$ 6,666,600.00
$ 13,333,200.00
$ 26,666,400.00
$ 53,332,800.00
qty sold
33333
66666
133332
266664
533328
$/sqft
Sales per location Type
Online (%)
$ 16,187,024.00
61%
Boutique (8)
50
585.44
$ 234,176.00
1%
Outlet (7)
500
2927.2
$ 10,245,200.00
38%
Financials

12. Revenues Expected per new location:
Units Sold per day
Revenues
per
location New
Locations Total
Revenues GM Profits
in
2013
Boutique 29,272.00
$
8 234,176.00
$
15% 35,126.40
$
Outlet 1,463,600.00
$
7 10,245,200.00
$
25% 2,561,300.00
$
Online 16,187,024.00
$
50% 8,093,512.00
$
Units
sold
per
day Per
Type
Online 443.48 443.48
Boutique 6.42 0.80
Outlet 280.69 40.10
Financials

13. Implementation
• 5 Part Implementation – 4 Years Plus
• 1- Marketing Strategy- Day 1 Onwards
• 2- Expansion of Secondary Corporate Office and Distribution Center- Year 1
• 3- Addition of 8 Boutique/Retail Locations- Year 1
• 4- Expansion of up to 8 Direct Retail Locations- Year 2 though 4
• 5- Warby Parker Cause Retailers- 2 onwards

14. Marketing Strategy
• Click and Mortar & Brick and Mortar
• Augmented reality technology
• Establish web presence via social media (Facebook, Twitter, Pinterest, etc.)
• Emphasize sustainable social commitment (Profit, People, Planet)
• Online product forums
• Advertising campaign revolving around one-to-one business model (corporate
social responsibility)
• Allocate 5 million dollar marketing budget

15. Secondary Office
• 1 Year Completion approx.
• Location Determination- (research, contracts)- 8 Weeks
• Set Up- Week 9 through completion
• Costs
• Set up- $100K (Desks, Chairs, Networks)
• Labour - $1 Million (20 ee’s @ $50,000)
• Rent- $75,000/ Yr. ( 5000 sq.ft. $15 Per Sq Ft.)

16. Boutique/ Retail
• 1.5 Years
• 10 Weeks Per Set Up- 8 Stores
• $10,000 training, set up and misc. expenses
• Expected Revenue of $29,272 per store
• “Test Markets”

17. Direct Retail
• 1-3 Year Timeline
• Converting boutique markets into Direct Retail Outlets
• Expected Revenue of $1.463 Million- 14,636 Glasses
• $500,000 Labour- (20 ee’s @ $25,000 avg.)
• Rent – $100-$500 sq. ft. -500 Sq. Ft. $50,000-$250,000
• Design- $500,000 approx.

18. Warby Parker Future
“Cause Retailing”

19. Thank You
Odette School of Business
Ryan Donally
Evgeni Gentchev
Taylor Laporte
Bilal Rammo