1. MARKET SITUATION & OBJECTIVES

The market has 3 major players: the still dominant independent opticians, the leading optical retailer Pearle Opticiens and Hans Anders. In 2016, we see traffic dropped for another year, despite a growing market, and we had trouble attracting new customers. Hans Anders is a constant threat, new entrants a growing challenge. Pearle's market share is under pressure. We only have communication to turn the tide.

Two types of new customers are most valuable:

• Customers of the independent opticians: the hardest to convince, but with the most growth potential for Pearle, in volume and value. They know they are currently paying too much but keep doing so, because they have a relationship with their optician, lack trust in retail, don't want to take risks, fear that buying from Pearle would damage their social image¹
• First time buyers: hard to identify and reach but with potential to become lifelong customers.

Pearle's challenge is clear: stop the decline in traffic and grow again. Growth needs to come from converting customers from the independent opticians and gaining a bigger share of first time buyers. Without selling out or harming profitability.

Traffic is dropping by 3% in 2015 and 2016². The KPI is to maintain the traffic level of 2016.

Market share drops in 2015 and 2016. Objective is to grow by 5%.

Despite market leadership and high loyalty, in order to grow, traffic has to come from new customers. The negative evolution of -7% and -2% of the last 2 years³ is to be stopped. We set the ambitious goal to grow to +3% new customers:

• To grow the independent opticians' customers influx by 5%
• Since independent opticians' customers are hard to convince and the market is growing, we need the share of first time buyers to grow by 5%

Consideration is a decisive behaviour KPI, the first requirement for generating traffic. Consideration dropped by 10%⁴. The objective is to increase it by 5%.

The closest metrics by which our communication effort can be monitored is motivation. In the last post-test motivation was 29%. The traffic and market share wake-up call prompts Pearle to set firm goals: motivation has to exceed the best score to date of 39%.

1. Mythos, Pearle Opticiens, Notie vertrouwen, March 2014
2. Pearle, internal data
3. Pearle, internal data
4. Ipsos, GrandVision Global Brand Monitor, January-December 2016, page 7

2. STRATEGY

Since 2010, Pearle concentrated its communication on establishing a professional image of our qualified and trustworthy opticians. Back then, we chose to communicate the USPs top down. This had improved Pearle's image but was no longer attracting new customers.

We decide to communicate bottom up and hold a mirror up to consumers. To make them question their prejudices towards Pearle. To convince them Pearle's offer is a safe buy: cheaper than the independent opticians, the same service, guarantees to reassure the doubters and its opticians have the same qualifications and attend refresher courses.

We create the hashtag #datmomentwaarop (#cemomentou) with recognisable situations to attract first time buyers via inbound marketing, but decide to make it the creative platform for all communications. The situations are a mix of prejudices e.g. "That moment when you see that your optician's diploma is older than you are", price e.g." That moment when the glasses you just bought are a lot cheaper at Pearle", glasses wearer situations: e.g. "That moment when your nose is too short for two pairs of glasses".

By starting from consumers' struggles, we convey tongue in cheek eureka moments. The light-hearted tone gives us the opportunity to sign off with a clear call to action: ' Dan ga je toch naar Pearle, duh '. A no-brainer. Making you a fool if you don't take advantage of this safe buy, duh. With rational arguments as supporting evidence.

Pearle's media strategy and budget remains: radio commercials to build traffic. TV to build image and to establish our safe buy proposition. Newspapers for establishing a promotion. Inbound marketing on first time buyers: Facebook and SEA to grab the attention, content pieces to answer all their specific questions.

3. RESULTS

After years of decline, Pearle's traffic manages to grow, by no less than 4%⁵. Exceeding expectations, given the KPI of not losing more traffic.

Pearle's market share grows by a whopping 9%⁶. 5% above target. While its closest competitors' market shares decreases.

The negative evolution in gaining new customers is not only stopped but turned into a growth of +5%⁷. Growth comes from defined audiences:

• 46.6% of the customers who leave the Independent Opticians come to Pearle⁸. In 2016 this influx was 39.3%⁹ . This is the highest influx of the market and a comfortable growth of 35%¹⁰.
• Pearle continues to gain the highest share of first time buyers and even grows its share¹¹.

Consideration grows by 7.5% in 2017, to 43%¹².

Motivation has the highest score our TV campaigns ever achieved.

Every € invested in communication gives a € 3 return in sales.

Brand equity specifically accounts for another 1.9% of 1st pair orders. This is an increase of 58% compared to the previous year¹³.

Buying intention after seeing TV commercial grows by up to 26%.

Radio commercial gets highest persuasiveness scores of 40%, above all previous campaigns, the sector and the DIVA average¹⁴.

A motivation score of 53% and an involvement score of 81% place the EOY radio commercial above all the previous campaigns, the sector and the DIVA average¹⁵. These scores are confirmed by the research by Medialaan: the same commercial ranks 1st in likeability¹⁶.

The communication results confirm the business results. Proving that the change has come from communication. Thanks to the revitalised communication we manage to turn the brand stuck in its position, with declining traffic, declining market share, diminishing image and consideration into a bright and prosperous market leader.

Starting from consumer insights and using a light-hearted tone of voice, we undeniably manage to convince new customers to visit Pearle. Our campaign makes customers of independent opticians and first time buyers clearly consider Pearle as a safe buy, duh!

5. Pearle, internal data
6. Ipsos, GrandVision Global Brand Monitor, January-December 2017, page 39
7. Pearle, internal data
8. Ipsos, GrandVision Global Brand Monitor, January-December 2017, page 49
9. Ipsos, GrandVision Global Brand Monitor, January-December 2016, page 37
10. Ipsos, GrandVision Global Brand Monitor, January-December 2017, page 41
11. Ipsos, GrandVision Global Brand Monitor, January-December 2017, page 39
12. Ipsos, GrandVision Global Brand Monitor, January-December 2017, page 5
13. Data Intelligence, Media Performance Modelling 2017
14. DIVA, Posttest resultaten radiocampagne, November 2017
15. DIVA, Posttest resultaten radiocampagne, November 2017
16. Medialaan, Media Impact Advertising Research 2017 wave 21, page 33