2. NAICS CODE: 31621/448210
Shoe manufacturing:
This industry comprises
establishments primarily
engaged in manufacturing
footwear (except orthopedic
extension footwear).
Shoe stores:
This industry comprises
establishments primarily engaged
in retailing all types of new
footwear (except hosiery and
specialty sports footwear, such as
golf shoes, bowling shoes, and
spiked shoes). Establishments
primarily engaged in retailing new
tennis shoes or sneakers are
included in this industry.
2007 NAICS Definition.
http://www.census.gov/naics/2007/def/ND
EF316.HTM#N3162
3. TOMS
“Shoes for Tomorrow”
• Founded in 2006 by Blake
Mycoskie in Santa Monica,
CA
• After taking a trip to
Argentina
“I was so overwhelmed by the spirit of the
South American people, especially those
who had so little,” Mycoskie said. “And I
was instantly struck with the desire — the
responsibility — to do more.”
4. “One for One”
• Dedicated promise
• Shoe drops
– Every two weeks
• Three main goals
– Give the children a
sense of pride
– New possibilities
through durable and
necessary footwear
– Prevent foot disease
8. Segmenting
• Current market relates to “evangelists”
• CEO Blake Mycoskie, “doing good is good
business strategy”
• Market Segment- passionate and charitable
people
9. Targeting
• Age- (18-35)
• Female and male consumers
• Sell globally, yet focus on selling to
consumers who could afford to “give” to
those less fortunate
• Urban and suburban locations with
moderate to high wealth
10. Positioning
• The “giving” shoe company
• Statement- “To charitable, progressive-
thinking outdoor enthusiasts who wish to
buy socially-responsible, trendy products,
Toms Runners are the shoes which exhibit
the perfect balance between charity,
functionality, and style.”
11. TOMSMarket Analysis
Strengths:
1. Good reputation among
customers for both
purpose and physical
product
2. Meaningful mission
statement
3. Reasonable price ($40-
$80)
Photo taken from http://www.toms.com/how-we-wear-them/
12. Competitive Advantage
“Doing good is good
business strategy.”
-Blake Mycoskie, TOMS founder
The “One for one” mantra of
TOMS, which promises an equal
purchase-to-donation ratio, is
an unparalleled service and
approach.
13. Competitors
1. Offer similar products to TOMS Runners
2. Possess a stronger brand image
3. Rival the tenants under which TOMS was founded
These companies exemplify TOMS greatest
weaknesses: A weak brand name and the use
of unconventional marketing strategies
14. “Largest manufacturer of athletic footwear
and apparel worldwide”
–Wiki Invest
Over the past few years, sales for the
“Free” alone have increased at
double-digit rates.
15. Nike’s Brand Equity
• Logo: Recognizable
and iconic
• Endorsements from
professional athletes
• Attention-grabbing
traditional
advertisements
20. The Same, Only Different
Asics
• Founded by one man,
Kihachiro Onitsuka
• Originally sold out of a
living room in Japan
• Originally made for
schoolchildren
• "Anima Sana In Corpore
Sano”
• Resulted in sports
research – Kobe Sports
Institute
TOMS
• Founded by one man,
Blake Mycoskie
• Originally sold out of a loft
in California
• Originally made for
children in Argentina so
they could go to school
• “Shoes for Tomorrow”
• Resulted in charity
24. Growth Stage
• Live on the Levee (LOTL)
• Guerilla Advertisement
• TOMS Walk
25.
26. Sources
ASICS America - Running Shoes, Apparel, and Accessories." ASICS America - Running Shoes, Apparel, and
Accessories. N.p., n.d. Web. 18 Nov. 2010. <http://www.asicsamerica.com/ "BIL 2009: Toms Shoes Founder
Blake Mycoskie | Ryan Plesko." Ryan Plesko . blogspot, n.d. Web. 10 Nov. 2010.
<http://ryanplesko.com/2009/02/bil-2009-toms-shoes-founder-blake-mycoskie/>.
"Home Page : New Balance." Home Page : New Balance. N.p., n.d. Web. 18 Nov. 2010.
http://www.newbalance.com/
"History of Flight." Nike. N.p., n.d. Web. 18 Nov. 2010.
<http://www.nike.com/nikeos/p/nike/en_US/?ref=>.
"J.Crew - Cashmere, Sweaters, Women's Clothing & Dresses, Men's Clothing, Children's Clothing & Kids
Clothes." J.Crew - Cashmere, Sweaters, Women's Clothing & Dresses, Men's Clothing, Children's
Clothing & Kids Clothes. N.p., n.d. Web. 17 Nov. 2010. <http://www.jcrew.com/index.jsp>.
"Nike Anti-Sweatshop Campaign." UW Departments Web Server. N.p., n.d. Web. 18 Nov. 2010
<http://depts.washington.edu/ccce/polcommcampaigns/Nike.htm>.
"Nike(NKE)." Wiki Invest. N.p., n.d. Web. 10 Nov. 2010. <www.wikinvest.com/stock/Nike_%28NKE%29>.
"Official Store." TOMS. TOMS, n.d. Web. 17 Nov. 2010. <www.toms.com/>.
Trends., modern. " TOMS Plansbook ." Scribd. N.p., n.d. Web. 11 Nov. 2010.
<http://www.scribd.com/doc/15201237/-TOMS-Plansbook->.
Williams, M.. "Why adland turned Nike trainers into fish tanks. " Campaign 11 Jun 2010: ABI/INFORM
Global, ProQuest. Web. 11 Nov. 2010.
Willigan, Geraldine E. "High-Performance Marketing: An Interview with Nike's Phil Knight." Harvard Business
Review 70.4 (1992): 90-101. Business Source Complete. EBSCO. Web. 11 Nov. 2010.
Editor's Notes
With this market segment in mind, we have analyzed the market for TOMS consumers and potential consumers of TOMS Runners. Luckily, TOMS itself has many strengths involving both the company and the actual TOMS products. Among these are (list), the most important being their reputability to their customers. The TOMS website features a section called “how we wear them” which shows TOMS owners wearing their TOMS everywhere, from their homes to foreign countries, and even the SF Giants games (indicate picture)
However, TOMS greatest strength is their charitable approach to business. Founder Blake Mycoskie said, as previously stated, that “doing good…” This sums up the competitive advantage of the company – The “one for one…”
While analyzing the potential market for TOMS Runners, there were three distinctive areas in which TOMS’ major competitors pose a threat to the company’s success. Some of these areas are (list) Aside from the products these competing companies offer, they “exemplify TOMS greatest weaknesses…”
It would seem ridiculous to analyze the running shoe market without first looking at Nike, which is the… The free is only ONE style of shoe and accounts for quite a small portion of their revenue, which in 2009 was just under 19.2 billion dollars.
Nike is mainly a competitor because of itsstronghold on the entire sports footwear industry. Nike’s greatest threat to the TOMS Runners target market is their overall brand equity.
However, what Nike lacks is the “giving” and “charitable” aspects of the TOMS company; in fact, they almost seem to disregard those ideas entirely.
TOMS was created in order to provide children with better lives via shoes that would protect them from disease – it is in this way that TOMS exhibits the idea of human wellness, which NB also focuses on with its marketing campaigns. These similar “health related” ideas could rival each other in the market.
The image on the left was taken from the NB website, while the one on the right was from toms – notice the similar theme of “movement”, both in picture and writing.. However, new balance seeks to “indulge in movement” while TOMS still clearly places themselves as a company making a movement, or a change. NB’s website still effectively portrays the general theme of physical well-being through preventative measures, which is quite contemporary – but it still lacks the ideals that are unique to the TOMS brand.
Another way the NB brand is attempting to appear fresh and socially-conscious is through their partnership with J Crew, an iconic american brand which prides itself on quality clothing products. TOMS also emphasizes the quality of their products, but does not have an outlet such as J Crew to build the relationship of “quality shoes with a quality outfit” in the same way NB can. NB also styles their athletic shoes as casual wear, which make them seem versatile – another quality of TOMS that can be rivaled.
What strikes so many people about the TOMS company was how it was created, but it’s not as original as it seems. Asics, another popular athletic shoe brand that also manufactures minimalistic running shoes and has been making running shoes since before 1950 has an oddly similar background of humble beginnings which lead to a greater cause – HOWEVER TOMS STILL LOOKS CHARITABLE
Toms makes vegan shoes, and participates in sustainable manufacturing processes, this is an outlet for green marketingSince they are a charity, they could partner with other, more well known charities that protect children, such as “invisible children” which aids african children who have been affected by genocide.Toms is creating different styles – although like Argentinean espadrilles , if TOMS were to continue to create many new appealing styles, like the RUNNERS, they could create a larger market.
