Eagle Optics opts for a planned approach

Eagle Optics Example: Nuts and Bolts [1]
Dan Hamilton and his wife founded Eagle Optics in 1986.  The company began as a U.S. dealer for all major manufacturers of optical equipment out of the owners’ Wild Birds Unlimited store in Madison, Wisconsin.  Within the past few years Eagle Optics has developed its own line of quality binoculars, which are now carried in almost 300 Wild Birds Unlimited stores across North America.

Eagle Optics’ first major milestone was the introduction of their branded line of binoculars in 1995.  Eagle Optics also sells other brands of binoculars along with their own line. 

Currently Eagle Optics is prospering; binoculars are flying off the shelf (no pun intended).  Their growth pattern shows steadily increasing sales. 

Eagle Optic’s mission is to provide “Fair and knowledgeable service, competitive prices and excellent customer service.” The company envisions providing a broader range of Eagle Optics branded binoculars, while continuing to sell all major brands of optical equipment.

Eagle Optics Example: Product Issues [2]
Eagle Optics’ product line consists of optical equipment for bird watchers, hunters and nature enthusiasts.  Their products include binoculars, spotting scopes and accessories. 

Eagle Optics distinguishes their brand of binoculars by providing a “no fault” warranty for their binoculars.  The customer need not register the purchase to receive the warranty. 

Eagle Optics’ strength is offering products that are a tremendous value, they sell optics very “cheep.” Manufacturers are constantly finding new ways to create glass at a lower cost while providing better optical quality.  In addition, different coatings and polishing techniques are continuously being tried and changed.  Eagle Optics plans to extend its product line, bringing these improvements to market by adding new products under the umbrella of the Eagle Optics brand name.

Eagle Optics understands the phrase “less is more” when designing the packaging for their line of binoculars.  The boxes are very simple and sleek.  Graphics are minimal and the warranty information is written on the outside of the box.  A case and strap are included in the box.

Eagle Optics Example: Place Issues [3]
Most of Eagle Optics’ sales take place over the Internet and telephone.  Ironically, they distribute optics via a channel that does not allow the consumer to look through the product.  However, they are leveraging their connection with Wild Birds Unlimited to give customers an opportunity to try out Eagle Optics binoculars.  Essentially Eagle Optics has established itself as a distribution wholesaler and is focusing on Wild Birds Unlimited as their main retail outlet..

Distribution through the Wild Birds Unlimited stores has provided Eagle Optics with retail stores all over the United States and Canada. 

The relationship between Eagle Optics and the Wild Birds Unlimited franchises is a key component of the “Place” strategy for Eagle Optics. 

Eagle Optics Example: Marketing Environment (Customers) [4]

Targets.  The company considers “birdwatchers” the primary target.  However, they are uncertain of any specific demographic of “birdwatchers”.  Eagle Optics’ secondary target is “hunters”. 

Eagle Optics has not previously done any methodical research with regard to their target customers.  Eagle Optics used the Market Research Tools to research characteristics of their target audience.  They learned how (and you can too) by reading the article “Find hot prospects with demographic targeting”.  [make link]

The problem solved.  Eagle Optics helps its customers enjoy nature.  Specifically, they provide customers with optical equipment to see things that are far away. 

The buying exchange.  Customers can order by direct mail.  Eagle Optics alleviates the fear of buyer’s remorse with a liberal return policy and by providing an extensive warranty for all Eagle Optics branded binoculars.  Customers who are near a Wild Birds Unlimited franchise may try the binoculars and either purchase them from the retail establishment or order them later directly from Eagle Optics. Most of Eagle Optics’ sales occur over the phone, although customers have the option of ordering over the Internet. 

Distribution channels.  Wild Birds Unlimited (WBU) stores serve as a distribution channel for Eagle Optics binoculars.  A WBU store has a larger purchasing power than any individual customer, so strong relationships with the stores are important to Eagle Optics.  WBU stores are provided with point of purchase displays, informational materials, and training videos.

Research techniques.  Eagle Optics has not yet invested in any formal research.  Customer satisfaction, advertising success, consumer pricing points, and market potential have not been formally studied.  It’s clear that Eagle Optics needs to develop a strategy to test their marketing plan and media mix. 

Eagle Optics Example: Marketing Environment (Competitors) [5]

Market share.  Eagle Optics must calculate their current market share.  bCentral’s Household Spending tool can help a business determine market share.  For more information about estimating market potential read the article, ”Belinda’s Bullish on Broad Ripple” in the Bulletin vol. 1 no. 8, December 2002. 

Monitoring the competition.  Eagle Optics knows they face heavy competition.  Eagle Optics informally monitors competition, looking at competitors’ advertisements and Web sites.  They will occasionally phone a competitor.  They compare prices, customer service and product lines.

Review of Current Marketing Activity

Eagle Optics Example: Advertising Plan [6]

Media plan.  Eagle Optics has not had a written media plan.  The company advertises primarily in birdwatching magazines.  Their advertisements are copy-heavy, providing a lot of information to people who are specifically looking for a binocular.  The advertisements use a call to action approach to get people to request a catalog or visit their Web site. 

Goal of advertising.  Like most businesses, Eagle Optics’ goal is to sell product, expand market share and create brand awareness.  They want to leave customers with a good product and a good feeling about the company after a transaction is made. 

Advertising budget.  Eagle Optics uses a percent of sales approach to set its advertising budget.  The problem with this method is that the advertising dollars decrease if the business is not doing well.  That is likely to compound the problem of declining sales revenue.  However, since Eagle Optics is doing well, this approach is working for now. 

Measurement.  Eagle Optics does not formally measure the results of their advertising.

Eagle Optics Example: Promotions [7]
Eagle Optics does not use coupons to promote optics, but they do occasionally send out flyers to their list of purchasing customers.  Eagle Optics is represented at hunting, birdwatching and “outdoors” tradeshows to sell products and provide information.

Public relations are an important part of Eagle Optics’ promotional mix.  Eagle Optics incorporates newsworthy activities such as sponsoring birdwatching events and donating to nature- and conservation-related organizations.


Stay tuned—next month the Eagle Optics team will draw on this Business Review as they prepare a marketing plan!