BUS9551-TWA Business Communication I
Table of Contents
Considerations for CIBA Vision5
According to a market analysis conducted by Robert W. Baird & Co., the global contact lens market is estimated at $6.1 billion, while the U.S. soft lens market is estimated at $2.1 billion (Baird & Parasnis, 2011). It has been estimated that the global market will reach $11.7 billion by 2015 (Global Industry Analysts, Inc., 2010). Johnson & Johnson’s (J&J) Acuvue brand of contact lenses is the global market leader in this category. J&J outspend their competition on marketing, advertising, and promoting Acuvue lenses and thus retain the greatest brand recognition. CIBA Vision1 trails with about half the market share of rival J&J. What can CIBA Vision do to increase its market share?
To increase its market share of the contact lens market CIBA Vision need to focus its diverse marketing efforts and corresponding budgets. This can be achieved online in social media through engagement in conversation with a target consumer audience. The demographic should be defined as skewing female between 14 – 35 years of age. Social Media:
An on-line environment
established for the purpose of mass collaboration (Gartner, 2011).
Much like deodorant, switching a consumer to a new brand of contact lenses is difficult due to habitual daily usage of the product for clear vision. Consumers and their eye care professionals are not interested in switching contact lens brands once fitted unless there is an issue. Thus CIBA vision must connect with its consumers at an early point in the original product decision making process to ensure brand compliance. The benefits to CIBA Vision of investing in social media marketing efforts are increased brand and product awareness, tailored dialogue between consumers and the brand, and low annual capital investment. In order to maximize the investment this dialogue should be initially focused on the Facebook platform since as the desired target audience spends on average upwards of 20 minutes per day on Facebook. In some countries such as Singapore and New Zealand this is approaching 30 and 40 minutes respectively (Dobson, 2011). Why start with Facebook?
Social media marketing on Facebook can be positively linked to an increase in product sales. According to Schaefer, 2011 an IBM study published the following findings: * 78% - 84% of consumers rely on their social networks when researching new products… * 53% of the consumers who follow brands on social media [said] that they buy more from retailers with whom they have engaged constructively online, and 13% said that the increase in spending was significant (Schaefer, 2011). Facebook fans reported spending $71.84 more per year than non fans (Syncapse, 2010).
1 As of August 8, 2011 the CIBA Vision and Novartis merger with Alcon was completed. Within this context the corporate entity will be referred to as CIBA Vision for historical relevance. Situation
J&J’s global contact lens market share is two times that of CIBA Vision at 44% and 22% respectively (Nichols, 2011). CooperVision and Bausch + Lomb (B+L) trail with 22% and 14% respectively. J&J’s market dominance also correlates to product brand awareness levels. It can be inferred that the most recognized consumer brand is J&J’s Acuvue due to substantial advertising spend against TV advertising, online media, and out of home media. Acuvue has established itself at the forefront of the contact lens conversation on Facebook. Competitors, CIBA Vision, CooperVision, and B+L have a significant gap to close with their brands. Complication
CIBA Vision currently markets two major brands of contact lenses, Dailies and AirOptix. These lenses are designed for daily...