TOMs
MKTG 434 Group Project
Spring 2015
Rajit Sandhu, Andrea Garzouzi, Donaldson Whigan, Ramadhanya Hunaina, Raveena Cheema, Judy Chen, Tommy Lam, Evan Calip
(Work on the cover page together- maybe add in the picture we’re using to represent us)
ADVERTISING PLAN
TOMS had huge success in it’s early life of the business. It’s recent decline in popularity in the last few years can be attributed due to the larger mysteries of TOMS never fully answering when they first started selling their shoes. It’s teenage and college audience from before are now are more mature and socially conscious which led them to ask questions about the organization. Questions such as:
· What kind of shoes does TOMS actually donate?
· Who gets the extra pair of shoes?
· How does this affect the economy wherever TOMS donates?
These questions are enough to determine the consumer into believing that TOMS is not as immaculate as they might’ve thought, essentially taking away the biggest attraction of buying TOMS.
Another problem surrounding TOMS is that their advertising and marketing strategy is severely limited to their efforts online and on social media. Very little priority and funds are spent on advertising mediums besides the Internet, and in fact, it was not until November 2013--seven years after the company’s founding that they finally launched their first paid media campaign. As a result of their lack of marketing activity offline, as well as the deployment of only five flagship stores (all of which are domestic), brand awareness is restricted largely to the West Coast of the United States. If TOMS are to sustain itself as a profitable business and combat its declining popularity, it can no longer rely merely on its Internet following.
Advertising Objective
As comfortable as these shoes may be, what initially grew their fan base was the heart of the company. TOMS lost sight of that and in return has been declining in popularity. So much that even though the general public is familiar with the brand, it is not as common for them to own a pair of TOMS. TOMS managed to raise awareness by the “One Day Without Shoes” Campaign, an annual event, where they encouraged everyone to go without shoes for a day out of the year. TOMS also created a website that included a countdown, allowing customers to register and participate. They partnered with Microsoft Advertising in 2010, which allowed them to connect with its target market. Through this, they were able to reach 55% of their target market online. The event awareness increased with each channel of advertising. The company must learn to utilize an eclectic mix of advertising mediums. These include print, TV, radio, outdoor, and sponsorships to expand their presence. TOMS employs charitable operations in over 75 countries, but they sell their products in only 30 countries. Their message and mission is one that is genuine, convincing, and noble, but it doesn’t reach nearly enough people. By ex ...
1. TOMs
MKTG 434 Group Project
Spring 2015
Rajit Sandhu, Andrea Garzouzi, Donaldson Whigan,
Ramadhanya Hunaina, Raveena Cheema, Judy Chen, Tommy
Lam, Evan Calip
(Work on the cover page together- maybe add in the picture
we’re using to represent us)
2. ADVERTISING PLAN
TOMS had huge success in it’s early life of the business. It’s
recent decline in popularity in the last few years can be
attributed due to the larger mysteries of TOMS never fully
answering when they first started selling their shoes. It’s
teenage and college audience from before are now are more
mature and socially conscious which led them to ask questions
about the organization. Questions such as:
· What kind of shoes does TOMS actually donate?
· Who gets the extra pair of shoes?
· How does this affect the economy wherever TOMS donates?
These questions are enough to determine the consumer into
believing that TOMS is not as immaculate as they might’ve
thought, essentially taking away the biggest attraction of buying
TOMS.
Another problem surrounding TOMS is that their advertising
and marketing strategy is severely limited to their efforts online
and on social media. Very little priority and funds are spent on
advertising mediums besides the Internet, and in fact, it was not
until November 2013--seven years after the company’s founding
that they finally launched their first paid media campaign. As a
result of their lack of marketing activity offline, as well as the
deployment of only five flagship stores (all of which are
domestic), brand awareness is restricted largely to the West
Coast of the United States. If TOMS are to sustain itself as a
profitable business and combat its declining popularity, it can
3. no longer rely merely on its Internet following.
Advertising Objective
As comfortable as these shoes may be, what initially grew their
fan base was the heart of the company. TOMS lost sight of that
and in return has been declining in popularity. So much that
even though the general public is familiar with the brand, it is
not as common for them to own a pair of TOMS. TOMS
managed to raise awareness by the “One Day Without Shoes”
Campaign, an annual event, where they encouraged everyone to
go without shoes for a day out of the year. TOMS also created
a website that included a countdown, allowing customers to
register and participate. They partnered with Microsoft
Advertising in 2010, which allowed them to connect with its
target market. Through this, they were able to reach 55% of
their target market online. The event awareness increased with
each channel of advertising. The company must learn to utilize
an eclectic mix of advertising mediums. These include print,
TV, radio, outdoor, and sponsorships to expand their presence.
TOMS employs charitable operations in over 75 countries, but
they sell their products in only 30 countries. Their message and
mission is one that is genuine, convincing, and noble, but it
doesn’t reach nearly enough people. By expanding the scope of
their marketing strategy and putting a stronger emphasis on
evangelizing their brand overseas, TOMS’ retail operations can
be as globally pervasive as their philanthropic operations.
The History of TOMs
In January 2006, 29-year-old entrepreneur Blake Mycoskie
visited Argentina on vacation with a mission to immerse himself
in the country’s culture. As he spent his days learning the
national dance (the tango), playing the national sport (polo),
and drinking the national wine (Malbec), he became accustomed
to wearing the national shoe, the alpargata, a simple canvas
4. slip-on widely prevalent throughout country with origins dating
back to the 14th Century. While doing volunteer work in the
outskirts of the capital, Buenos Aires, Mycoskie noticed that
many children were running through the streets barefoot. Before
long, Mycoskie learned that a lack of footwear was a much more
ubiquitous problem that was not just limited to this one
community,but also throughout the entire country and across
developing nations around the world. As Mycoskie came to
terms that being barefoot was an affliction, which hampered all
aspects of life for children, he felt galvanized to make a change.
Once Mycoskie returned home to his Venice apartment, he
decided that he would start a business that would sell alpargatas
to the North American market, with the promise to donate a pair
of shoes to a child in an impoverished country for every pair
sold. To fund this venture, Mycoskie sold his startup online
driver's education program for $500,000. He named the
company “TOMS,” derived from the word “tomorrow,” which
evolved from Mycoskie’s original “Shoes for Tomorrow”
project. TOMS began selling shoes in May 2006, and after six
months, the company had already sold 10,000 shoes. Since its
launch, TOMS have sold and donated over 35 million pairs of
shoes to children in over 70 different countries, and expanded
their product line to include clothing, eyewear, accessories,
coffee, and bags.
Despite it successes, the popularity of TOMS has declined, and
many have criticized and pointed out the irony in the company
choosing to produce its shoes in developing countries such as
Haiti, China, and Ethiopia. Many have also denounced TOMS’
business model as one that is designed to make customers feel
good about themselves rather than address the underlying causes
of poverty, while others feel that the donation of shoes merely
provides a fleeting assistance to those who undoubtedly need
much more than just footwear. These critics feel that the money
that TOMS spends on shoe donations should be donated to
5. charities and institutions, which actually provide a full range of
resources.
On August 20, 2014, Mycoskie sold a 50% stake in TOMS to
Boston-based investment firm Bain Capital for $312.5 million.
Mycoskie retains 50% ownership of TOMS, but he is looking to
step down as CEO.
SWOT ANALYSIS
Strengths:
· Strong corporate social responsibility
· Affordable products
· Philanthropic message backed up by expansive charitable
efforts
· Massive following on social media
· Frequent interaction with customer base
· Use of sustainable materials in an industry that is becoming
increasingly environmentally conscious
Weaknesses:
· Lack of global reach
· Brand awareness largely limited to West Coast of United
States
· Advertising almost exclusively restricted to internet
· Only five flagship stores
Opportunities:
· Increasing distribution and partnerships to establish more
company owned or independent stores
· Job creation and poverty alleviation in developing countries
· Rise in green marketing
· Expansion into other mediums of advertising with new
corporate partners
Threats:
· Waning popularity
· Oversaturation of shoe market
· Criticism of business model
6. · Competition of established brands with far greater capital and
media exposure
Market Place
The global shoe industry comprises an increasingly expanding
sector of our economy. As consumers willingly part with an
untold percentage of their disposable every year on footwear,
this industry is expected to grow to $211.5 billion by 2018.
Currently, TOMS is trying desperately to vie for market share in
the market of canvas shoes, competing in an environment
already packed full of competitors such as Keds, Vans,
Converse, BOBS from Skechers, PF Flyers, and Levi’s.
Advertising and Message Strategy
TOMS employs a cause marketing strategy with their “One for
One” model that is based on their charitable promise to give a
free pair of shoes to a child in need for every pair that they sell.
In doing so, TOMS convinces their consumers that they are in
fact buying two shoes, one for themselves and one for a child
less fortunate than they are, for the price of one.
To market themselves TOMS relies heavily on their social
media presence, and it was not until November 2013 that the
company finally launched their first paid media campaign. With
the help of MediaCom, a global media agency owned by the
British advertising and public relations juggernaut WPP, TOMS
ushered out a slew of initiatives to coincide with the impending
holiday season, including search engine marketing and
optimization, paid social, online video, native ads, billboards in
New York and Los Angeles, and videos on New York City taxi
cabs screens. The creative work was handled in house, and
TOMS branded this campaign with the tagline “This Is Bigger
than Us.” Like previously, the message of this campaign and its
ads relied largely on their philanthropic efforts, with the
7. promise that the purchase of their products will lead to
improved lives and revitalized environments elsewhere.
Product Perception
Product perception of the brand has been and continues to
remain mostly positive. This sort of social entrepreneurship
brought on a new wave of marketing. The business model,
coined, “one for one” has created quite the stir since making its
debut in 2006, with many companies following along in their
footsteps (no pun intended.) At the foundation of the company,
the idea is simple: buy one, give one. As the company began to
expand, so did their sales. According to an article on Huffington
Post Business, written by Maryellen Tribby, their sales were as
follows:
• 2006 - TOMS sold 10,000 pairs for these 'plain' shoes in a
short 6-month span
• 2007 - Sales skyrocketed to 50,000 pairs
• 2009 - Sales jumped again to 140,000 pairs
• 2010 - As of January 2010, over 400,000 pairs of shoes have
been distributed worldwide.
The numbers were proof that the idea and model were working,
and they began to build upon the name with Toms eyewear,
coffee, bags, and shoes for men and children. It was clear that
people were into the giving spirit, and a culture was essentially
created. Toms plans to host many events and gives the tools for
people to take action on any scale, be it large or small. With
every purchase, a small bag and/or flag and sticker are included,
and people wave and stick these items proudly upon their
things. Another great example that the perception of purchasing
something from the company is something to wear almost like a
badge of honor. They give you the power to make “it” your
own.
Target Audience
8. Tom’s primary target audience has stayed the same since 2006
they are males and females aged between 19-24 who are
creative trendsetters and socially aware. Tom’s organizational
objects are directly linked to its mission statement. Their
objective and mission statements are key elements believed in
helping Tom’s in creating a suitable marketing mix. TOMs are
most popular in this group. The hope is for these consumers to
become brand loyal so that they will do repeat purchases and
stay interested in the brand their cause. These target men and
women are located in the United States and have some level of
education from high school and on, if they do not fit into this
category they are employed or even both. TOMs targeted
audience is interested in music, social causes, and like
participating in different types of activities. They hope to better
not only themselves but others around them and those in need-
they believe in TOMs mission. They live in a fast-paced
environment and their lifestyle is nothing less than that of
fasting moving.
Recent trends show a number of potential factors
affecting TOMs desired target marketing. Firstly Blog interests,
TOMS target audience has become increasingly interest in blog
readership. This target market has increasingly become more
depended on blogs for information regarding everything from
fashion to technology recommendations. This age group is also
much more impacted by customer service, according to TOMs
10.3% say customer service is the most important factor when
making a purchase. The desired to be you own person is also a
new trend developing in this age group. To be your own you,
confident, upbeat, self expressive, liberal and open to the idea
of change. There more focused on education and less in religion
or joining to military to serve their country.
TOMs Secondary Target market(in 2007) are women
and men from the ages 25-34. This target market is more
foreseen as making repeat purchases due to the fact that many
may have children who tend to outgrow their shoes fairly fast.
Due to this target markets economic stability they may be more
9. apt to participate in shoe drops. Like the primary target this
target too will also be located in the US with a high school
degree or higher. They fall into the middle to upper class sector.
And they enjoy more leisure activities and tend to be more
lenient with their money. They want a shoe that’s casual while
still being fashionable while they can do their day-to-day
activities. That’s where TOMS comfortable everyday wear
shoes come in play.
Trends in this segment show not a single American
middle class but a four. According to an analysis of a recent
national survey conducted by the Pew research Center Social
and Demographics Trends project, each is different from the
others in its attitudes, outlook, and financial circumstance. They
range from not only top of the class but to the struggling
middle. Another trend seen throughout this segment is the drop-
off of Television according to TOMs only 42% of Americans in
this age range say a television to be a necessity in their life, this
number is still decreasing and is foreseen to decrease in years to
come. The economy does not play as big as a factor as the
innovation of new technology does (Taylor and Wang).
Today Toms has shifted its secondary target market to a
younger age group. They are now targeting people from the ages
of 12-18. This is because they see them as being socially aware
and are more likely and willing to spread TOMs
message/mission statement to others.
Competition
TOMs main competitor is Vans, founded in 1996 and sold in the
US by national chain stores as Aqua surf, Tilly’s, Zumiez, ect..
They design footwear and apparel design for casual wear and
activities such as skateboarding, snowboarding, surfing, and
BMX. Their competitive advantage over TOMs pertains to their
consumers who are enthusiast in extreme sports. In 2004 Vans
launched Vans Customs allowing customers to create their own
Classic Slim-ons with different color and pattern combinations.
10. As a part of their marketing strategy, Vans promotes their brand
through extreme sports events and music festivals. Van’s motto
is “Tell a Friend About Vans”.
The Single Most Compelling Benefit Our Brand Can Provide
Them
The single most compelling benefit TOMS shoes can provide is
their business model: with every shoe purchase, TOMS will give
a pair of new shoes to a child in need. The company’s buy-one-
give-one business model is an effective model for creating
social value for both businesses and consumers. In fact, this
model inspires many different companies to adopt this similar
concept. This idea originated from Blake Mycoskie, the founder
of TOMS shoes
Why Should We Believe This?
Statement by Rajit,” Personally I feel that shoes are a basic
necessity in life. This is why TOMs mission statement speaks to
me, if spending 40 dollars on a pair of shoes can provide
another person who's not as fortunate to buy their own shoes
with a pair, I feel as though I have done something for the
greater good, sure one pair won’t change the whole world but it
can change one person's life”.
Statement by Don,” The TOMs brand not only promotes their
products, but they also promote and encourage the act of giving
back to those less fortunate. TOMs strives to make the world a
better place by sending a power message of kindness from a
corporate level. By setting a respectable example, TOMs paves
the way for other companies, customers, and everyone alike to
join in such an inspirational movement. TOMs is more than a
shoe, it is a beacon of hope and constant reminder that giving is
just as important as receiving. “.
11. Statement by Raveena,” I generally don’t think twice when I
throw on a pair of shoes and go about my day. The awareness
that TOMS has brought about something that most of us take for
granted is commendable. It makes me more conscience about
what I spend my money on. TOMs are setting a great example,
not only for companies but for individuals as well. They are
more than just a pair of shoes. It is a vision and hope for the
future. “
Tone
Our tone for the campaign will be warm and genuine, with the
goal of eliciting a sense of goodwill and building affinity with
our viewers. The TOMs brand is known for donating a pair of
shoes to someone in need whenever a new TOMs product is
purchased. Our campaign will represent such sincerity and will
reflect the company’s positive message to spread kindness all
over the world. Our team plans to promote a genuine campaign
where we encourage others to take the positive “steps” in the
right direction. Just like our shoe design, we look to deliver our
message simple and comforting, where you feel our brand from
within your “sole”.
Survey
PLEASE INCLUDE THE SURVEY QUESTIONS AND RESULT
The Creative Brief
A. Why are we advertising?
We are advertising the diversity in the TOMS brand. Many
consumers lack the knowledge of the full product range that
TOMS offers its consumers.
12. B. Who are we talking to?
They are targeting men and women from the ages 19-24
1. Facts about them
Trends setters, socially aware, and ready to join a cause
2. Their attitudes and how they currently view the
brand
They see TOMs as a brand that is sincere and stands by a strong
cause.
C. What is the single most compelling idea we need to
communicate to them?
Variety
D. Why should they believe this?
E. Desired brand personality/tone?
Honest, sincere, heart warming
13. Work Cited
Blake Mycoskie. (n.d.). Retrieved April 30, 2015, from
http://www.toms.com/blakes-bio
Taylor, Paul, and Wendy Wang. "The Fading Glory of the
Television and Telephone." Editorial. Pew Research Center.
N.p., 19 Aug. 2010. Web. 29 Mar. 2011. .
TOMS: A Case Study in Profitable Cause Marketing | Marketing
Technology. (2013, August 23). Retrieved April 20, 2015, from
https://www.marketingtechblog.com/toms-cause-marketing/
TOMS: A Case Study in Profitable Cause Marketing | Marketing
Technology. (2013, August 23). Retrieved April 30, 2015,
fromhttps://www.marketingtechblog.com/toms-cause-marketing/
TOMS : One for One. (n.d.). Retrieved April 30, 2015, from
http://www.toms.com/tribe
TOMS Launches First Paid Media Campaign. (n.d.). Retrieved
April 30, 2015, from
Tribby, M. (n.d.). These Shoes Ain't Just Made for Walkin': The
Cause Marketing Biz Model. Retrieved April 30, 2015, from
http://www.huffingtonpost.com/maryellen-tribby/these-shoes-
aint-just-mad_b_4030377.html
14. CHOOSE THE BELOW ARTICLE AND MAKE A WORK
CITED FOR THEM I DID SOME BUT THERE”S NO POINT
HAVE HAVE THE ONES PEOPLE DIDN’T USE
http://www.mediapost.com/publications/article/212930/toms-
launches-first-paid-media-campaign.htm
http://knowledge.wharton.upenn.edu/article/one-one-business-
model-social-impact-avoiding-unintended-consequences/
http://www.whydev.org/some-bad-news-about-toms-shoes/
http://www.triplepundit.com/2012/04/problem-charity-model-
toms-shoes/
Hey, Andrea here. Here’s a few cool articles about Toms:
http://www.newyorker.com/business/currency/toms-for-houses
http://www.fastcompany.com/3012568/blake-mycoskie-toms
http://www.forbes.com/sites/johnellett/2014/08/19/how-toms-
creates-customers-for-life/
http://www.toms.com
https://averima.files.wordpress.com/2011/09/toms-pr-
plansbook.pdf
Raveena’s articles:
1. http://www.joycegrace.ca/2013/07/toms-shoes-charity-
marketing-strategy/
2. https://prezi.com/oliuoibnh2c8/marketing-strategies-
analysis-toms-shoes/
3. http://www.socialtoaster.com/blog-entry/social-media-
15. breakdown-toms-social-media-marketing
Don: Here’s an article on the tone and vision of Tom’s as a
brand:http://www.fastcompany.com/3012568/blake-mycoskie-
toms
Rajits articles- This slide might be our answer
http://www.slideshare.net/Kristinesroka/toms-shoes-consumer-
insight *
https://averima.files.wordpress.com/2011/09/toms-pr-
plansbook.pdf
https://le3marketeers.wordpress.com/2013/02/25/toms-target-
market-and-how-it-relates-to-their-mission-statement-thaisa-
cowin/
https://averima.files.wordpress.com/2011/09/toms-pr-
plansbook.pdf
Possible “Problems”
Who was the initial target and how has this and their vision
changed to reflect this and the changes?
They were the first of their kind, so they could create anything
that they wanted. Now that there is competition how are the now
combating this?
Are they no longer a novelty piece?
Lack of brand awareness
Relevancy and are they reaching their target market
Are they unique or run of the mill - how can advertising
change/alter perceptions?
Problem: lack of advertising and lesser known product variety
16. One thing: social entrepreneurship and one for one, sincerity
They now offer a variety of products. How do you get people to
buy multiple different types of shoes and for everyone in the
family?
More than a shoe brand