Toms
Toms
Toms
Table of Contents
Executive Summary.2 Situation Analysis.3 Product & Service Analysis4-5 Target Market Analysis...6 Distribution Network...7 Competitive Analysis...8-9 Current Financial Situation.10 Historical Results.11-13 Macroenvironment..14 SWOT..15 Objectives & Issues...16 Financial Objectives Marketing Objectives Critical Issues Marketing Strategy Target Markets17-18 Positioning...19 Marketing Mix.20 Marketing Research..21 Creative Strategy..22 Creative Brief Overall MC Strategy..23 PR Strategies & Tactics...24-27 Schedule..28 Budget..29 Measurement & Evaluation...30 Conclusion..30 Works Cited31-32
Executive Summary
As an international brand, TOMS is looking to gain a strong foothold with new and existing customers by targeting men and women 18-24 years old, as well as 25-34 years old, specifically in the United States. Through this plan, TOMS will actively move forward to define a thriving market within which the brand can prosper. With extensive primary and secondary research, TOMS will accurately define and target challenges that they face. With this information, new objectives will be proposed for the TOMS brand that will define and reflect the market trends, which will in turn resonate with the target audience. TOMS will reach the target audience through various promotional and public relations strategies and tactics. With this campaign, TOMS hopes to speak to their audience and let them know It's more than just buying a pair of shoes. It's a lifestyle.
Situation Analysis
In 2006, American traveler Blake Mycoskie befriended children in Argentina and found they had to no shoes to protect their feet. Wanting to help, he created TOMS Shoes, a company that would match every pair of shoes purchased with a pair of new shoes given to a child in need. As of September 2010, TOMS has given over one million pairs of new shoes to children in need through Giving Partners around the world (TOMS). TOMS Shoes is continually expanding and seeing great success in 2011. TOMS has recently launched a spring line featuring different safari themes, inspired by young photographer Dan Eldon (Almendrala). TOMS has also recently teamed up with MaryKate and Ashley Olsens fashion line, The Row, where the shoes hit the runway during 2011s autumn/winter New York Fashion Week (Racked). As they are gearing up to launch a new One for One product in June 2011, TOMS has been keeping the product a secret inside mystery boxes, which have been traveling all over (TOMS). TOMS continues to develop and become more than just shoes.
Features: Design and customizability Leather insoles improves comfort Many different style shoes Reasonably priced
Benefits: Donates to a child in need Made to sustain outdoor environment and conditions
After the purchase of TOMS shoes, the customer expects to establish a relationship with the brand because of its uniqueness. The children in the different countries in which TOMS donates to, hope for repeat giving from the brand. Children grow out of shoes every six months on average, therefore TOMS strives for repeat giving.
(Picture by TOMS)
Manufacturer
Consumer
TOMS Aftermarket: After the consumer purchases a pair of TOMS shoes, a new pair is then donated to a child in need. This process takes about 4-6 months.
Purchase
Factory
Boat
Truck/Jeep
Child Receives
Competitive Analysis
Keds: First entering the market in 1916, Keds have remained a style icon for almost 100 years. Continually finding ways to reinvent themselves, Keds has deemed themselves as the original sneaker (Keds). Marketing Mix: Keds offers a variety of products such as boots, sneakers, casuals, and lace-less shoes for men, women, and children. To cater to its consumers, Keds has expanded its products to include slip-ons, skimmers, sandals, and even designer styles. The price of these shoes range from a low of $35 to a high of $75. Keds have various promotional efforts, where they have teamed up with music bands and different designers. On the contrary, Keds has also used traditional promotions such as coupons and discounts. Keds are sold in a wide range of retail stores such as JCPenney, Macys, Finish Line, Journeys, and many more. They have an online retail store, keds.com, but are also sold on websites such as Zappos.com, Amazon.com, and Zazzle.com.
Competitive Analysis
Skechers Bobs: Launched in 2010, Skechers Cali launched their line of Bobs. Very similar to TOMS, when you purchase a pair Skechers makes a donation to Soles4Souls, a non-profit that gives two pairs of shoes to children in need (Soles4Souls). Marketing Mix: Bobs offers a variety of flats currently only for women and children. These flats are offered in different materials, colors, and designs. The price of these shoes range from a minimum of $30 to a high of $45. Promotional-wise, Bobs has done very little. Bobs uses point-of-sale signage explaining the cause of the brand. Bobs does not have a retail store or online presence. Bobs are carried in retail stores such as DSW and Sears. They are also sold on websites such as Amazon.com, Zappos.com, and Rackroomshoes.com.
Strengths: Donates two pairs of shoes to a charitable cause Simplistic shoe design Variety of colors, designs and fabrics
Weaknesses: Limited shoe variety women and children only Minimal advertising and/or promotions Described as TOMS knock-off (Adams)
Founder, Blake Mycoskie, on the shoe drop in Argentina for TOMS one millionth pair.
Macroenvironment
Economic: According to Bloomberg Businessweek, U.S. retail sales increased in February 2011 by the most in four months, climbing 1 percent. Job growth and lower taxes are helping Americans keep up spending after the biggest quarterly increase in four years. An improving labor market is also a contributor to boosted spending. These economic forces and a new strategic plan will likely boost TOMS sales. Technological: Technology is playing an increasingly important role in the retail industry. While TOMS has a well-established digital presence, larger stores are recognizing the positives of online availability and increasingly carrying out discount coupons or promotional codes. It is not ideal for TOMS to discount their products, therefore innovative ways to reach the consumer are essential. Political: An increased tax rate could potentially hurt TOMS sales. If the sales tax was to increase, consumers would be less inclined to spend their money on TOMS products. Demographics: Certain demographic forces could potentially have a negative impact on TOMS. Although TOMS is reasonably priced, if income levels were to drop TOMS would most likely see a decline in sales. If income levels are decreasing, consumers will have less money to spend on products such as TOMS.
SWOT Analysis
Strengths: Brand message Customizability Innovative options (vegan, wrap boot) Price Opportunities: Rise in green marketing/social causes Non-traditional stance in media Large potential market
Weaknesses: Young company Limited advertising and media exposure Possibility of hurting local businesses in other countries
Threats: More established competition Oversaturation of shoe market Consumer perception that TOMS arent stylish
Positioning
TOMS will be positioned to existing and new customers as a brand that impacts ones lifestyle. Becoming involved with the brand will be more than just purchasing a pair of shoes. Once the consumer realizes the impact one pair of shoes has on a child in need, they will strive to help more children and become more involved in the movement. This movement will influence new customers to get involved as well. TOMS will be positioned as a lifestyle of helping others.
Marketing Mix
Products: No changes to the actual TOMS product will be made. New lines of shoes will be added, such as seasonal lines or lines that partner with other brands/designers. The strategic vision behind TOMS products are to meet the needs of being comfortable and durable, yet still appeal to the consumers eye for fashion. Elements such as packaging and presentation are important for strategic success. For example, when one purchases a pair of TOMS Shoes they not only receive a pair of shoes in the box, but a TOMS flag and sticker as well. This is favored by the consumer because they are essentially getting more than they expected. Pricing: The price of TOMS shoes will remain the same. The price of TOMS shoes range from a low of $44 (classic alpargata) to a high of $98 (wrap boot/vegan shoe). With these prices, TOMS is communicating that their product is affordable and that the consumer is getting their moneys worth. TOMS is slightly more expensive than most of their competitors; however, TOMS competitors range from different philanthropic causes, like Skechers to Keds, an American icon. The price contributes to the companys overall strategy because for a minimum of $44 the consumer is essentially buying one pair and giving one pair free. Promotion: A major change that will be made to TOMS promotions is the use of guerilla marketing. Other promotions will include direct mail, events, social media, and various contests. Distribution/Place: As TOMS is expanding, a proposal for a TOMS exclusive retail store will be made. A test store will be put into effect before opening more TOMS exclusive stores. This should not greatly affect the distribution cycle. However, it is important to keep in mind that if distribution increases, the image of TOMS being a unique shoe may change, as there is a chance of eventually going main stream. TOMS Distribution Chart (with TOMS Exclusive Store in effect):
Online Toms.com Zappos.com
Manufacturer
Consumer
Marketing Research
Survey: A 26-question survey was created on Survey Monkey asking participants various questions regarding his or her shoe purchasing habits, the level of awareness of the TOMS brand, as well as their thoughts and opinions about both the brand and the shoe. This survey was sent out to men and women between the ages of 18-24 through social media platforms, such as Facebook and Twitter. This survey was available for about three months, and reached a total of 95 participants. Key Findings: Half of the participants were aware of the brand, but have not purchased TOMS. Advertising/promotions and word-of-mouth are the top two ways that is currently reaching the target market. TOMS One for One movement has an influence on 58% of the participants purchasing decisions. Focus Group: A focus group was held with 15 college students, male and female, some who have purchased the product and some who have not. These men and women were asked a variety of questions about TOMS, including current brand perceptions and overall opinions about the shoe and the TOMS One for One movement. Key Findings: TOMS One for One movement is extremely influential on the groups purchasing decisions. It was revealed that the participants are more apt to buy TOMS over other shoes because of the One for One concept. The group favors the simplistic look of TOMS and finds the customization of the shoe appealing. Observational Research: There are not currently any TOMS retail stores; however, there are many specialty boutiques and retail stores that carry TOMS. Stores that are considered high-end with a unique feel that cater to the desired target market were the territories of observation. Customers in Urban Outfitters in Syracuse, NY were observed on their shopping methods and interactions with TOMS. Key Findings: Customers barely or did not interact well with the product. There was no point-of-sale for TOMS Shoes. Shoes were dispersed throughout the store in between different clothing items, all on different tables.
Creative Strategy
Big Idea: TOMS shoes are individual to each customer. The brand is more than just a shoe, its more than its mission, it is a lifestyle. People who buy TOMS Shoes dont just buy them for the shoe, they buy into the lifestyle, and they live the TOMS brand. When consumers purchase TOMS Shoes it is representative to who they are and what they stand for. This in turn, will build the TOMS brand into a culture and a lifestyle. Creative Brief: To whom are we talking? Young men and women who have a desire for fashionable, yet practical shoes. They are concerned with social causes, such as helping children in need. What do they currently think? That style and cost are the most important qualities of a shoe. What would we like them to think? They can have it all with TOMS Shoes. A stylish, affordable, and practical shoe that donates to a child in need when they purchase a pair. What is the single most persuasive idea we can convey? TOMS Shoes are more than just a shoe, they are a lifestyle. Once you purchase a pair and see how it changes a childs life, you will want to live by the TOMS brand. Why should they believe it? TOMS donates shoes to children in need in over 24 countries. These shoes give these children a better tomorrow by allowing them to walk to school safely, avoid injuries and diseases, and attend school.
SHOE DROP
DOUGLAS PARK 2013.4.26 FRI 3PM-8PM
Schedule
Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13
Shoe Drop
TOMS Travels
Campus Clubs
Budget
Shoe Drop: Plane.. $50 Gift Pack (300)...$15,000 Stickers (300)..$60 Flyer Printing..$200 Poster Printing (150 18 x 24).$400 EmployeesIncluded in salary New Store Opening Event: Flags (300)$1,500 Stickers (300)..$60 E-mailNo incremental cost TOMS Travels: Bus.... Flyer Printing..$200 Campus Clubs: E-mailNo incremental cost Shoe Design Contest: Facebook..No incremental cost New Shoe Line. TOTAL$17,420
Conclusion
When a customer interacts with the TOMS brand, it is more than just buying shoes. It is helping a young child in need, and what you feel after having done so. With this strategic plan, TOMS will reach two market segments that are said to be some of the most influential people in America. TOMS will get the message to these people by various strategies and tactics, as previously shown, which represent the TOMS brand fittingly. This plan is not only designed to help increase brand awareness and interaction, but increase sales as well. So, the next time you hear "TOMS" don't just think of the shoes they sell, think of the lifestyle they represent.
Works Cited
Adams, Indiana. TOMS vs. BOBS: There is a Difference. Editorial. Adored Austin. N.p., 22 Nov. 2010. Web. 29 Mar. 2011. <http://www.adoredaustin.com/2010/ 11/toms-vs-bobs-there-is-difference.html>. Almendrala, Anna. TOMS Shoes Launches New Dan Eldon Line. Editorial. Huffington Post Los Angeles. N.p., 12 Mar. 2011. Web. 29 Mar. 2011. <http://www.huffingtonpost.com/2011/03/12/toms-shoes-launches-newd_n_834939.html#s252863&title=Dan_Eldon>. Cause Capitalism. Can AT&T Count its TOMS Shoes Commercial as CSR? Editorial. Cause Capitalism. N.p., 20 July 2009. Web. 29 Mar. 2011. <http://causecapitalism.com/toms-shoes-att/>. Hoover's. "Toms Shoes Inc." Editorial. Hoover's Database. N.p., n.d. Web. 29 Mar. 2011. Keds. Our History. Editorial. Keds Shoes. N.p., n.d. Web. 29 Mar. 2011. <http://www.keds.com/store/SiteController/keds/ourstorypage>. Microsoft Advertising. Multi-screen Campaign is Perfect Fit for TOMS Shoes. Editorial. Microsoft Advertising. Microsoft, n.d. Web. 29 Mar. 2011. <http://advertising.microsoft.com/europe/WWDocs/User/Europe/ ResearchLibrary/CaseStudy/2.%20TOMS.pdf>. Mintel International Group. "Attitudes and Behaviors of Adults 18-24 - US." Editorial. Market Research. N.p., 1 Mar. 2007. Web. 29 Mar. 2011. <http://www.marketresearch.com/map/prod/1475275.html>. Morin, Rich. "America's Four Middle Classes." Editorial. Pew Research Center. N.p., 29 July 2008. Web. 29 Mar. 2011. <http://pewsocialtrends.org/2008/ 07/29/americas-four-middle-classes/>. Pew Social Trends. "Millennials: Confident. Connected. Open to Change ." Editorial. Pew Research Center. N.p., 24 Feb. 2010. Web. 29 Mar. 2011. <http://pewsocialtrends.org/2010/02/24/ millennials-confident-connected-open-to-change/>. Racked. Unlikely Bedfellows: The Row Collaborates With Toms Shoes. Editorial. Racked. N.p., 15 Feb. 2011. Web. 29 Mar. 2011. <http://racked.com/archives/ 2011/02/15/unlikely-bedfellows-the-row-collaborates-with-toms-shoes.php>. Soles4Souls. Skechers to Give Free Shoes. Editorial. Soles4Souls. N.p., 18 Jan. 2011. Web. 29 Mar. 2011. <http://www.soles4souls.org/news/2011/01-18/ skechers-to-give-free-shoes>.