England Optical

Executive Summary

This paper is to find out the marketing plan of England Optical Group (EOG). This paper will focus on EOG, optical market and EOG’s main competitor (Focus-Point). This paper will consist of EOG history, background, weakness and strength and all types of marketing issues. This paper also will consist of optical business environment which included the environment, opportunity and threat in this industry. Besides, this paper will included some part of Focus Point information about their strength, weakness and company background which seen as the key factor influencing this industry or bringing threat to EOG. The information on this paper is from two methods, they are primary data and secondary data. Primary data is collected through face-to-face interview with EOG branch manager and EOG headquarters’ supplier. Secondary data is collected through Internet. EOG official web site and their main competitor (Focus-point) official web site are used. Throughout completing this paper, there are some problem occur which affect the accuracy of this research. Availability of information in term of financial situation and top management from EOG are not able to obtain to further support the data on this research.

Introduction

England Optical Group (EOG) has established their first outlet in Malaysia at 1979. Today, it is Malaysia's largest optical chain store, with more than 600 staff and having outlets in China, Cambodia and Singapore under the brand name of E-OPTICS totaling of 150 outlets (EOG, 2008). EOG expand their business through England Optical Group’s Franchise Venture Capital Fund (FVCF).

1.1 Company Analysis

England Optical Group (EOG) is the largest optical chain store certified by the Malaysia book of records. It has been caring vision of human being for more than two and a half decades. Their main goal is gearing towards achieving its International stature as a leader of the optical world. EOG obtain the largest optical business market share in Malaysia. Due to rapid expansion of EOG in china, it has received recognition from the authoritative magazine as the top-notch eyewear leader among foreign optical chain stores (refer to appendix page 1).

1.2Customer Analysis

According to the analysis of EOG, they have large regular base of customer which estimated over 1,000,000 throughout the world. EOG categorize their customers into two different groups according to their age. They are group of below 35 and above 35. For EOG group above 35 is seen as more profitable and loyalty compare to customer below 35. Products like multi focus or progressive lens are targeted to the customer above 35 while single vision lens is targeted for customer below 35.

1.3Competitor analysis

According to EOG, their main rival in market is Focus Point. Focus Point is one of the leading optical chain stores behind EOG. Focus Point has their exclusive selling brand eyewear such as Oga, Jaguar, Koali, and etc. This range of exclusive branded eyewear leads that to obtain a certain amount of customers alert segment. Besides that, they have the “Bonuslink” award for every purchase at Focus Point outlets. (Focuspoint.com)

2.0 PEST analysis

Politic

The development of EOG has received recognition by Malaysia Government. Malaysia government has given fully well support to such progressive company which has grown leaps and bounds in the short range of time. Chief executive officer of EOG, Dato’ Dr Chin See Keat plays an important role in expanding EOG Business had received his DPTJ Dato from His Royal Highness Sultan of Negeri Sembilan, Malaysia in 1999. Other recognition from Malaysia Government or Non Government likes ISO 9002 by SIRIM, Exclusive Top 50 Enterprise Award, The Most Promising Franchisor 2001 and etc (refer to appendix page 5 and 25)

Economic

Currently EOG has expanded their business in Asia country such as Malaysia, China, Cambodia and Singapore. Singapore and Malaysia are the most stable countries in their economics among South Eastern Asian countries. China’s is a developing country with large population of citizens, it provides many opportunities for business. Cambodia has shown potential growth in their economic recent years (refer to appendix 07).

Social

Currently, EOG expand their business only in Asia country, therefore their customers mainly are Asian. Asian are not health conscious compare to Westerner, numbers of Asian will use of unapproved spectacles or contact lens to solve their eye sight problem. In addition, Asian are more conservative, they will choose of traditional way to solve their eye sight problems with spectacles or contact lenses instead of going for surgery.

Technology

Traditionally, eye sight problems are corrected with spectacles or contact lenses. But in the new era of development in optical industry has the inventory of eye laser technology to solve all types of eye sight problems. According to BBC news eye laser surgery is getting popular, cheaper and considered safe in market.

3.0 Porter’s 5 forces analysis

3.1 Intensity of rivalry

Competition of optical industry in Malaysia is considered high in Malaysia. As EOG’s main rival, Focus Point has expanded progressively in the short period of time to become one of the leading influential optical companies in the market.

3.2 Threat of new entrance

There is absolutely high in threat of new entrance, as there is no barrier in opening an optical store in the world. There are many professional optometrist in market which greatly enough to supply for more and more optical shop in Malaysia.

3.3 Bargaining power of customer

Bargaining power of customer is considered medium in Malaysia. As EOG has the greatest influence in optical industry due to its longest history, successful background and quantity of outlets throughout Malaysia. Besides that, EOG has many exclusive brand products which only can get in their EOG outlets. Therefore customer must only can it from their outlet.