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.
TOMS RunnersLesley FayJillian RizoRachel SadaccaBUS 301218, November 2010
NAICS CODE: 31621/448210Shoe manufacturing:This industry comprisesestablishments primarilyengaged in manufacturingfootwear (except orthopedicextension footwear).Shoe stores:This industry comprisesestablishments primarily engagedin retailing all types of newfootwear (except hosiery andspecialty sports footwear, such asgolf shoes, bowling shoes, andspiked shoes). Establishmentsprimarily engaged in retailing newtennis shoes or sneakers areincluded in this industry.2007 NAICS Definition.http://www.census.gov/naics/2007/def/NDEF316.HTM#N3162
TOMS“Shoes for Tomorrow”• Founded in 2006 by BlakeMycoskie in Santa Monica,CA• After taking a trip toArgentina“I was so overwhelmed by the spirit of theSouth American people, especially thosewho had so little,” Mycoskie said. “And Iwas instantly struck with the desire — theresponsibility — to do more.”
“One for One”• Dedicated promise• Shoe drops– Every two weeks• Three main goals– Give the children asense of pride– New possibilitiesthrough durable andnecessary footwear– Prevent foot disease
Runners• Colors• Material• Average Weight• Features
Segmenting• Current market relates to “evangelists”• CEO Blake Mycoskie, “doing good is goodbusiness strategy”• Market Segment- passionate and charitablepeople
Targeting• Age- (18-35)• Female and male consumers• Sell globally, yet focus on selling toconsumers who could afford to “give” tothose less fortunate• Urban and suburban locations withmoderate to high wealth
Positioning• The “giving” shoe company• Statement- “To charitable, progressive-thinking outdoor enthusiasts who wish tobuy socially-responsible, trendy products,Toms Runners are the shoes which exhibitthe perfect balance between charity,functionality, and style.”
TOMSMarket AnalysisStrengths:1. Good reputation amongcustomers for bothpurpose and physicalproduct2. Meaningful missionstatement3. Reasonable price ($40-$80)Photo taken from http://www.toms.com/how-we-wear-them/
Competitive Advantage“Doing good is goodbusiness strategy.”-Blake Mycoskie, TOMS founderThe “One for one” mantra ofTOMS, which promises an equalpurchase-to-donation ratio, isan unparalleled service andapproach.
Competitors1. Offer similar products to TOMS Runners2. Possess a stronger brand image3. Rival the tenants under which TOMS was foundedThese companies exemplify TOMS greatestweaknesses: A weak brand name and the useof unconventional marketing strategies
“Largest manufacturer of athletic footwearand apparel worldwide”–Wiki InvestOver the past few years, sales for the“Free” alone have increased atdouble-digit rates.
The Same, Only DifferentAsics• Founded by one man,Kihachiro Onitsuka• Originally sold out of aliving room in Japan• Originally made forschoolchildren• "Anima Sana In CorporeSano”• Resulted in sportsresearch – Kobe SportsInstituteTOMS• Founded by one man,Blake Mycoskie• Originally sold out of a loftin California• Originally made forchildren in Argentina sothey could go to school• “Shoes for Tomorrow”• Resulted in charity
Opportunities• Green marketing• Charity Partnerships• Further product diversification
Communication StrategyCurrent• Word of mouth• Website: www.toms.com• Guerilla advertisement• “What’s Up” magazine
Launch Stage• www.toms.com• Various other websites• “What’s up” magazine
Growth Stage• Live on the Levee (LOTL)• Guerilla Advertisement• TOMS Walk
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