Digital Marketing Term IV

Hubble Contact Lenses: Data Driven Direct-To-Consumer Marke ng

INDIAN INSTITUTE OF MANAGEMENT, RAIPUR

Name Roll Number
Akshit Johri 22PGP057
Sehgal Kunal Amitabh 22PGP025
Ritika Singh 22PGP201
Samir Suryawanshi 21PGP209
Sreejita Mazumder 21PGP239
Thummala Sainath Reddy 22PGP026

Under the guidance of

Dr. Arunima Shah

Assistant Professor (Marketing Management)
Indian Institute of Management Raipur

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Contents
Evaluate Hubble's business model compared to traditional companies in the industry. ......... 3
How efficiently does Hubble acquire and retain customers? ................................................... 5
What is the role of offline and online advertising in acquiring customers? Evaluate Hubble's
decisions regarding the online vs offline media allocation. ...................................................... 6
What should be Hubble's expansion plan as per you?.............................................................. 7

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 Evaluate Hubble's business model compared to traditional companies
in the industry.

Hubble's Business Model:

1. Direct-to-Consumer (DTC) Approach:

 Hubble's direct-to-consumer approach revolu onizes the way customers

access contact lenses. By elimina ng intermediaries, Hubble streamlines the
purchasing process, reducing costs and increasing convenience for
consumers.

 Tradi onal models o en require customers to go through optometrists or

retailers, adding complexity and costs to the buying process.

2. Subscrip on Model:

 Hubble's subscrip on model provides customers with a hassle-free way to

receive their contact lenses regularly, elimina ng the need to reorder
frequently.

 Tradi onal models o en rely on individual purchases, requiring customers to

remember to reorder, poten ally leading to lapses in usage or supply.

3. Digital Marke ng Emphasis:

 Hubble's astute use of digital pla orms, especially social media, enables
precise targe ng and engagement with its target demographic – millennial
consumers.

 Tradi onal models may not leverage digital pla orms as effec vely, missing
out on the opportunity to directly connect with and a ract younger
consumers.

4. Product Differen a on and Branding:

 Hubble's vibrant and stylish packaging sets it apart from the clinical
appearance of tradi onal contact lens op ons. This approach resonates well
with a younger audience seeking unique and fashionable products.

 Tradi onal models o en focus on prac cality and func onality, with
packaging that might not evoke the same emo onal connec on as Hubble's.

5. Convenience and Customer Experience:

 Hubble's online pla orm offers a seamless shopping experience, enabling

customers to order contact lenses with a few clicks, reducing the need for
physical visits.

 Tradi onal models may involve appointments, poten al wait mes, and a
less streamlined purchasing process, which can be less convenient for
consumers.

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Tradi onal Business Models:

1. Intermediaries and Higher Costs:

 In tradi onal models, intermediaries like optometrists and retailers are

involved, leading to addi onal costs due to markups at various stages of
distribu on.

 Customers might end up paying more for the same products due to these
intermediaries.

2. Limited Customer Engagement:

 Tradi onal models might lack a strong direct-to-consumer rela onship,

missing out on opportuni es for ongoing customer engagement, feedback,
and brand loyalty.

3. In-Person Experience:

 Tradi onal models offer in-person experiences, allowing optometrists to

conduct comprehensive eye exams, make personalized recommenda ons,
and address specific needs.

 However, this also means customers need to set aside me for appointments
and visits.

4. Perceived Quality and Safety:

 Tradi onal models could be perceived as offering higher quality and safety
due to the involvement of professionals and established brands, poten ally
crea ng challenges for newer entrants like Hubble.

5. Limited Flexibility in Purchasing:

 Tradi onal models may require customers to buy larger quan es of lenses
at once, leading to waste if prescrip ons change before the lenses are used
up.

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 How efficiently does Hubble acquire and retain customers?

Customer Acquisi on Efficiency:

 Successful u liza on of a direct-to-consumer (DTC) business model.

 Strong reliance on online adver sing pla orms, primarily Facebook and Instagram.

 Targeted digital adver sing to specific audience segments.

 Influencer campaigns and content marke ng to engage poten al customers.

 Significant year-on-year growth due to effec ve customer acquisi on strategies.

Customer Reten on Improvement:

 Limited capital investment in customer reten on efforts.

 Poten al for higher customer reten on through improved strategies.

 Comparison of conversion rates between new prospec ng customers and retargeted

customers.

 Higher click-through rate (CTR) and conversion rate (CPR) for retargeted campaigns.

 Indica ons that customers exposed to Hubble's brand are more likely to convert.

 Opportunity to allocate more resources to engaging and retaining exis ng

customers.

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 What is the role of offline and online advertising in acquiring
customers? Evaluate Hubble's decisions regarding the online vs
offline media allocation.

The role of offline and online adver sing in acquiring customers for Hubble is crucial, as it
helps the company reach its target audience, create brand awareness, and drive sales. Both
offline and online adver sing have their strengths and can complement each other in an
integrated marke ng communica on (IMC) strategy.

Hubble's decisions regarding online vs offline media alloca on seem to be driven by the
effec veness of their digital-focused approach, which aligns with their direct-to-consumer
(DTC) business model. Here's an evalua on of the op ons presented:

a) Online Alloca on: Given Hubble's success with a digital-heavy approach, alloca ng a
significant por on of their budget to online channels, par cularly social media pla orms like
Facebook and Instagram, has been effec ve in reaching their target audience. The ability to
target specific segments, track performance, and provide a seamless shopping experience
has contributed to their growth. This approach has enabled Hubble to establish a strong
presence and drive direct sales through digital adver sing.

b) Offline Alloca on (TV): The case study highlights that Hubble has observed some success
with tradi onal channels, par cularly television. The example of the TV campaign during the
Major League Baseball World Series resul ng in increased customer acquisi on from
Facebook shows that offline adver sing can have a posi ve impact on online success.
However, while offline channels like TV can be effec ve for crea ng broad awareness, they
o en lack the precision targe ng and trackability that digital channels offer.

c) Balancing New and Retargeted Consumers: Alloca ng capital to retarge ng campaigns

and focusing on customer reten on is a sensible strategy, as exis ng customers are generally
more likely to convert and have a higher life me value. Retarge ng efforts can lead to be er
conversion rates and customer loyalty. Therefore, realloca ng some of the budget from new
customer acquisi on to retarge ng campaigns could be a smart move for Hubble to
maximize its marke ng ROI.

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 What should be Hubble's expansion plan as per you?

1. Product Line Expansion: Priori ze extending the product line within the eyewear
industry. Since Hubble has already established trust and brand preference in eye
safety and quality, expanding into as gma c and mul focal lenses would be a logical
step. This would cater to a broader range of customer needs without straying too far
from their core exper se.

2. Cosme c Industry Expansion (Long-Term): While the poten al for expanding into
the cosme c industry exists due to Hubble's target audience being female
millennials, this should be considered a longer-term goal. The cosme c industry
involves different dynamics and requires significant research and development.
Focus on consolida ng the core product line before venturing into new industries.

3. Interna onal Expansion (Long-Term): Consider interna onal expansion, especially

into regions where the social media landscape and consumer preferences are
conducive to the DTC model. However, due to varia ons in market condi ons and
consumer behaviour, this should be a long-term goal. Focus on solidifying the
domes c market before taking on the complexi es of interna onal expansion.

4. Customer Reten on and Experience: Allocate capital to improve customer reten on

strategies. While Hubble has shown impressive customer acquisi on growth,
inves ng in ini a ves to keep exis ng customers sa sfied and engaged can lead to
long-term profitability. Develop loyalty programs, referral incen ves, and
personalized communica on to enhance the customer experience.

5. Marke ng and Adver sing Strategy: Maintain a balanced alloca on of capital

between online and offline adver sing. While online channels like Facebook have
been effec ve for customer acquisi on, consider con nuing successful offline
campaigns that yield posi ve results. As Hubble expands its product line, adjust the
marke ng strategy to communicate the unique value proposi ons of new offerings.

6. Wholesale Model and Channel Expansion (Long-Term): Approach the idea of a

wholesale model and channel expansion cau ously. While it's important to consider
future distribu on op ons, keep in mind that transi oning away from the successful
DTC model could come with challenges. If entering the wholesale market, ensure
that Hubble retains its brand iden ty and customer-centric approach.

7. Educa onal Content for Interna onal Markets: If Hubble decides to expand
interna onally, allocate capital to create educa onal content that familiarizes
poten al customers with the subscrip on-based model and the benefits of daily
disposable contact lenses. Tailor communica on strategies to suit the preferences
and needs of each market.

8. Invest in Research and Development: Allocate resources to con nuous research and
development, ensuring that the product offerings remain innova ve, high-quality,
and aligned with consumer demands. This will be crucial for sustaining growth and
retaining customer trust.

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