Pricing

VIU’s prices range from the lowest of 175 CHF to the highest of 675 CHF for a pair of glasses with special progressive lenses. For each product line they offer four different options of lenses that vary in price (VIU, 2021).

Based on what we could find out about the brand’s products, prices and marketing activities, VIU’s pricing orientation is a combination of competition-based pricing and customer value-based pricing. They establish themselves as a low price leader while providing the same quality as the high price competitors and additionally they consider the value perception of customers that think that traditional eyewear is too expensive1.

It can be assumed that VIU’s pricing objectives are to maximize sales growth and maximize revenue. They can achieve these objectives by setting the right pricing strategy and pricing tactics such as value pricing, cost-plus pricing and freemium.

The pricing strategy VIU most likely is using is optional product pricing (Sathish AR) by offering a base price and different prices for different lens options for the same frame and product line. Furthermore, it seems like they apply cost-plus pricing to their eyewear products. To determine their affordable prices, they add a certain percentage of cost as profit margin to the value of the manufactured products.

Firstly, we take a look at how it is possible for VIU to produce such affordable glasses. When buying glasses traditionally, the customer pays 4 to 20 times more than the manufacturing price of the product. This is because the optical industry is controlled by large corporations like Luxottica that produce and sell glasses in the name of luxury houses. When doing so, they determine the high prices, which are not caused by complicated manufacturing techniques or high material costs, as the industry likes to argue. Apart from that, there are the optician’s expenses which drive the costs up. VIU combines intermediate steps under one roof to keep the costs of their products down (Braun, 2016).

Place

VIU eyewear brand has set out a shortcut in the supply chain at the eyewear industry with their direct-to-consumer business model. Due to cutting out the middleman (retailers and wholesalers) and designing a channel length zero level and one level. VIU glasses are designed in the house of VIU in Zürich and hand crafted in Dolomites, Italy and Honshu island in Japan. VIU has a successful omnichannel distribution strategy to meet customer preferences. The omnichannel distribution approach provides a seamless online and offline product purchase. The business model of no intermediary traders, own designs, and selling directly to the end customer, was the core idea to supply high-quality glasses with an affordable price.

Omnichannel

Promotion

To promote their products and services, VIU uses typical MARCOM modes such as advertising, branded content, PR, social media marketing, events and experiences, direct marketing, and sales promotion:

. Advertising: They use mobile and online ads as well as search advertising and posters.

. Branded Content: Here their website is the main media.

. Public Relations: Their founders do speeches and interviews to promote their brand and marketing strategy, they also use influencer outreach as promotion

. Social Media Marketing: The brand is present on Instagram, LinkedIn, Facebook, YouTube,where they share photos, videos and other content

. Events, Experiences, Sponsorships: VIU sometimes plans events to promote their store openings, like collection launches that are accessible for everyone. They also provide their store locations for seminars of different kinds

. Direct Marketing: Customers can sign up to a newsletter of the brand to get frequent notifications and information about the brand

. Sales Promotion: VIU uses rebates of their ambassador program to affect buyer behaviour

VIU uses all four communication segments from the PESO model; paid, earned, shared and owned media for promotional purposes. Next to desktop and mobile Internet, they also make use of other media vehicles like place-based media and magazines.

Consumer Marketing Channels B2C

As a company focusing on digitalization, VIU takes advantage of different forms of digital advertising and targeting to reach their target audience. They use search ads on browser sites, expandable ads on websites and native ads on social media feeds and focus on behavioural targeting and retargeting to make sure their advertising reaches the users of their target segment. This makes sense since they target young people that are most likely influenced by something they see on their social media feeds or websites.

VIU has been identified using brand image and positioning approaches for their creative strategy They want to reinforce their position in the competitive landscape and promote their benefits of being trendy, fashionable and affordable. For their message they use a mix of informational and transformational strategies. They want to focus on customers’ practical needs for visual aid and emphasize on the benefits for using Viu as a brand. At the same time they also focus on the social needs of the customers that lead them to purchase their products because wearing modern and fashionable eyewear makes them feel a certain way.

VIU wants their customers to buy their products out of reasons of social approval, vanity and egoism, and profit. People should want their glasses because they want to belong or earn approval, to reinforce pride in one’s appearance, or to save money. For that, their advertisements show common real-life scenarios of people wearing glasses, they illustrate how consumers live and implies that with the purchase of their glasses the consumer can attain this certain lifestyle 1 .

People

VIU’s team consists of 400 VIUans spread all over Europe. When looking at the VIU stores, the front-stage employees are very important. “We want to offer our customers a unique experience” as they state on their website (VIU, 2021). The employees in the stores are sales associates and opticians, both in high-contact with the customers and therefore service providers. They welcome customers, consult them, answer questions, help to find a fitting pair and accompany the customers through the payment process.

When looking at a typical profile of a VIU store associate, a sense of fashion and design is specifically asked for as well as a constant drive for improvement. This shows again that VIU is a very innovative brand that clearly differentiates themselves from other “regular” eyewear brands and proves itself to be true according to our field-research (see blog) (VIU, 2021)

Presence

Since this report mainly focuses on the physical stores of VIU, this element of the marketing mix will discuss the servicescape as a tangible cue in the physical environment of the customer that influences its perception of the company 1 .

VIU selects the materials for each store individually since the company wants to create a local reference in every store they own. If possible, the creative team incorporates elements from the building stock of the spaces in each VIU store. For example at the store in Basel, Switzerland, the dominant material is untreated wood, as it is a rather rural area (Hahn, 2019). The local reference of each store is very important, as it also reflects the mission of the brand. As previously discussed the company sets the focus on transparency regarding the Swiss origin and Italian and Japanese manufacturing process of each pair of glasses. The emphasis on origin and culture is therefore reflected in the local features of each store.

However, what all the stores have in common is the clear design language, which includes clean lines and a natural color palette. But also the lighting in the store plays a huge role. Lamps are required to be unobtrusive but deliver high-quality lighting at the same time. In order to achieve that, VIU installed the so-called ONICO spotlights in their stores. These spotlights provide a glare-free and wide light distribution to illuminate the shelves. This not only makes the overall ambiance in the store more friendly but allows every pair of glasses to be presented in the same lighting (Zumtobel).

Process Service blueprint

In order to visualize the processes important to a customer inside a VIU store, a possible service blueprint was created. Possible sources of friction are also highlighted in the blueprint. Since there’s no information of possible backstage actions, the map was simplified and reduced to frontstage actions only.

Furniture, smell and ambience in store

Employee and name tag

Different kinds of glasses

Different kinds of glasses

Register, small machine for credit card

Customer enters store

Customer is being welcomed & asked about needs or wishes

Customer describes that he is looking for corrective glasses

Customer receives advice on how to proceed

Customer gets his eyes tested

Customer gets advice on fitting pair of glasses

Customer tries on multiple pairs and choses favorite

Customer returns to store to pick up glasses

He is being guided to register to pay and pays

Employee receives glasses and gets accompanied to door

Customer leaves

If the store is too crowded

Greets customer

No welcome Listens attentively to needs of customer and observes his outfit and behavior

Consults customer about conducting an eye testing

Conducts eye test

If there is no employee to consult customer Consults customer on fitting pair of glasses.

Painful or unprofessional testing

Consults customer on fitting pair of glasses.

If there’s no pair of glasses the customer likes

If the glasses production is delayed

Welcomes customer Hands glasses to customer and guides him through payment process

Machines for eye testing

If the glasses production is delayed

If the checkout is conducted in a rush

If no employee says goodbye or thank you

Thanks customer, hands glasses over and brings customer to door

Says goodbye and thank you again, closes door behind customer

Payment technology

Set Marketing Objectives

Increase brand awareness

In order to increase brand awareness, VIU focuses on marketing glasses as a fashion statement instead of just a visual aid. To reach that objective the company collaborates with influencers as models for their campaigns, creates a modern store concept, and issues limited editions of glasses created by local artists. The company has its identity and message under tight control, which ultimately allowed them to build a strong brand in just a few years (Creative Supply, 2021).

Revenue and growth

It is always crucial for a younger brand to focus on its revenue and growth. Ways to achieve this objective would for example be to make sure the prices promote an increase in profit margin. The in-house production of their products allows the company not only to cut costs on shipping but on delivering as well (Gaille, 2020). This gives VIU the option to maintain the current low prices of their products so that more revenue can be achieved. Furthermore, VIU grows through its focus on market development. Within a very short amount of time, the company expanded in large parts of Europe. This was possible through starting out as an online business and various investments by companies such as Credit Suisse (Creative Supply, 2021).

Develop brand loyalty

When you purchase glasses from VIU you know exactly what you are getting; High quality and stylish glasses at a fair price. Consistency is very important when developing a loyal clientele. Furthermore, VIU is transparent with the manufacturing process of its glasses. As discussed before, VIU cooperates with influencers to promote their brand. This not only increases brand awareness but brand loyalty since followers trust their opinions. VIU chooses their collaboration partners carefully so that they represent the brand authentically (VIU, 2021)

SDG’s and Recommendations

While doing our research on the company, we stumbled across some things that VIU could improve as a brand. Firstly, we think since they attach great value to transparency, they should follow through with that. The company tells us where and how they manufacture their glasses, however, they don’t disclose information about where and how they source their materials or their channel partners.

Another aspect we consider to be important is the incorporation of SDG’s into their business and marketing activities. Until now, they have not positioned themselves as being a sustainable brand or mentioned their contribution to the 17 SDG’s. Yet during our research we saw that they touch on some of the goals with their production process. Ensuring that their products are handmade and high-quality, they contribute to the goals 8 (Decent Work and Economic Growth), 9 (Industry, Innovation and Infrastructure), and 12 (Responsible Consumption and Production). We believe that VIU can incorporate these and other goals more into their business strategy and show responsibility. One thing we like about VIU is that they are future-driven and innovative. Their 3D printing technologies enable customization and will be appealing to customers. However, we think that this aspect of the brand is not very apparent in their promotion and we would advise VIU to advertise this service and benefit to a wider audience.

Lastly, we came to the conclusion that the Swiss population is not as aware of the brand as it should be. For that reason, we think the company should focus more on building brand awareness in Switzerland and focus less on expanding rapidly to other markets.

On the hunt for the VIU customer experience:

We realized that VIU’s customer satisfaction is very dear to the brand’s heart and they are very proud of their customer experience (VIU, 2021). Since we all have not been in close contact with the brand yet, we wanted to test it out ourselves:

Is VIU’s customer experience really that good? And is it the case on all of their platforms? We split up our team, one person would visit a VIU store, one would write an email, another one would give their customer hotline a call and someone would contact the brand on social media – all concerning the same issue– the topic of blue light glasses:

We would state interest in acquiring blue light glasses and therefore have some questions:

- What are the benefits?

- Can the glasses be integrated in all of VIU’s frames?

- Why should I pay so much when I get can them for much cheaper somewhere else?

Criteria of evaluation:

Points from 1-10

1. Detail and accuracy of information

2. Availability

3. Friendliness of employees

4. Expertise of employees

5. Transparency

1. Detail and accuracy of information: 5 points

The employee did not tell me anything about the blue light glasses, I had to ask. She pretty much repeated what the sign says (see image). Also, she didn’t mention to me when exactly I should wear them.

2. Availability: 10 points

There were not many people in there, the VIUans greeted me from afar and a friendly lady came closer directly. After a short introduction, she gave me time to look at the glasses.

3. Friendliness of employees: 10 points

I was surprised that she talked to me in an informal ‘du’ form, it almost reminded me of a friend. I felt welcomed and in good hands.

4. Expertise of employees: 8 points

She seemed to know what she was talking about but when I asked about how blue light glasses work she didn’t give me a detailed answer. I could have gotten more information from their website (see image). Otherwise I was very happy with the consultation. She recommended me a pair I really liked before I even asked for it (see image), she based it on my face shape and matched the color to the outfit I was wearing. Furthermore, she replied professionally and competent to my questions about the glasses (VIU, 2021).

5. Transparency: 6 points

First, she said that I could chose every model with blue light glasses but then I referred to a specific pair, she told me that this specific model was not available with blue light glasses which was not very transparent and disappointing. When I asked about why VIU glasses are more expensive than competitors, she mentioned the design in Zurich, production in Italy, 2 years guarantee and that most VIU glasses could get repolished when scratched.

Phone call:

1. Detail and accuracy of information: 5 Points

The employee on the phone told us that we can purchase any pair of glasses with blue light lenses. But the employee at the store said it is not possible to do so. Therefore, one of them is not right and there is no unity within the consultations, which causes confusion.

2. Availability: 10 Points

When we called customer service we were in the waiting loop for not even 10 seconds, before an employee took off the phone. This is very fast when you compare to other customer care centers.

3. Friendliness of employees: 10 Points

When we called VIU a nice lady answered the phone. Her voice was bright and welcoming. She was easy to understand, gave detailed answers to all of our questions, and was patient if something wasn’t clear to us.

4. Expertise of employees: 9 Points

The lady on the phone was able to answer all of our questions without hesitation. She even provided us with detailed numbers on the reflection rate of the glasses. The employee gave us an explanation of how the glasses are build up and how they work. Even when we asked a follow-up question, she was able to give us a competent response.

5. Transparency: 6 Points

Although the information she provided was very detailed, the employee did not mention that there are two options of blue light glasses and one of them being significantly cheaper. It can be assumed that we do not want to spend a lot of money on the glasses since we specifically asked how the high price is justified.

Email Customer Service:

1. Detail and accuracy of information: 6 Points

In their response email, they give a good amount of information about the product but not how they work. Also, the information about it being possible to buy every frame with the lenses does not match with the previous received information.

2. Availability: 9 Points

We sent the email on the weekend and got the response on Monday at 11 am. They were not available on the weekend, which is normal for businesses and they answered fast on Monday.

3. Friendliness of employees: 10 Points

It is harder to come across nice via email, but the response sounds friendly and honest. This made us feel understood and cared for, which we appreciate a lot.

4. Expertise of employees: 8 Points

It seems like the employee knows what they talk about regarding the blue light glasses. The reply is easy to understand and answered all my questions except where I asked how the glasses work.

5. Transparency: 9 Points

The information they gave is detailed and the employee explains the benefits of their premium filter and why it might be more expensive. They also tell us that there is another blue light filter option that is cheaper which shows their transparency.

Social media:

Lastly, we reached out to the brand on Instagram direct message with the same questions. Unfortunately, we did not get a response from them in two days and therefore we can’t really rate the experience.

Conclusion

Overall the customer experience was satisfying. The employees are friendly and we felt well taken care of. However, they are not fully transparent when it comes to the different price levels of the glasses. None of the employees told us that there are lenses which are significantly cheaper than the ones they talked about, which is disappointing since VIU stands for fair prices.

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