Marketing Tom’s shoes and the One-for-One model
The main product that has created a distinction for Tom’s shoes in the business world is the alpargata, a shoe worn by Argentine farmers since the 16th century when they arrived from Spain. The alpargata became known as “the common man” shoe due its comfortable nature and inexpensive price (Kat, 2012). The shoe’s sole is made of rubber or fiber threads like hemp and features a canvas top for breathability. When Toms began in 2006 by founder Blake Mycoskie, he was in Argentina when he learned about this particular shoe. Many people could not afford shoes but the ones that could wore them to protect ...view middle of the document...
The company itself can be looked at by way of a SWOT analysis in which the strengths, weaknesses, opportunities and threats are assessed. This helps to determine a marketing strategy.
Strengths:1. A lot of credibility due to its charitable giving2. originated from a social media platform for marketing and advertising3. Strong brand message4. Has innovative options | Weaknesses:1. Shoes are not available everywhere2. Still a young company3. May hurt shoe businesses in other countries where they give shoes4. Limited advertising exposure |
Opportunities :1. Large market potential through other social platforms2. A rise in social causes and green marketing3. Pair up with more for-profitand non-profits | Threats:1. Consumers perceptions of Shoe price or style2. More established competitors3. oversaturation of the shoe market4. Consumers lose interest |
In order for continued growth to happen it is important for Toms to utilize the purchasing power of the consumer. It is also imperative to increase brand awareness as well as brand interaction with the consumer. The customer is the vital link that will help sustain Tom’s shoes. The current consumer is in one of three segments which are high school students, college students and single men and women who are conscious of price. These consumers range between the ages of 13-30, and are typically Caucasian. They are also media savvy, using a variety of social media platforms and are looking for stylish shoes at an affordable price with a purpose (Ahsmann, 2011).
The context has to do specifically with the macro-environment that a business is working in. Technologically, Tom’s is ahead of the game as businesses are starting to realize what online presence can do for business. Tom’s teamed up with Microsoft Advertising who will donate their in-game and advertising assets to promote awareness of Tom’s One day without shoes campaign (Butcher, 2010). This helps to connect with users on the go and hopefully encourage people to act. Economically, according to a Footwear Industry Profile, the U.S. retail sales of fashion footwear which does not include athletic shoes is up 4 percent since 2012 and the causal shoe market has seen the largest dollar growth among all categories (2013). This means Tom’s has the opportunity to continue its growth in sales as well and have the option of continued expansion across the U.S.
Collaborators are those provide support and networks in the supply chain to help deliver the final product to consumers. Currently Toms has manufacturing factories in multiple countries like China, Ethiopia, Argentina and Brazil. All of the factories are audited by a third party in order to ensure fair working conditions. The shoes are shipped from the manufacturing site to Tom’s warehouse in California and distributed into retail stores that include Nordstrom’s and Neiman Marcus. On an annual basis Toms requires that direct suppliers certify that the materials being used for its products...