Tomsshoes by hannahschiller

BRAND BLUEPRINT

Hannah Schiller, Olivia Higgins, Erica Rietveld, Sheldon Dossett, KaSandra Mitchell

I. Situation Analysis Purpose With the TOMs company first starting with shoes, then moving into different sectors such as eyewear, clothing, collectables, and now coffee. The brand is still continuing with the â&#x20AC;&#x153;One for Oneâ&#x20AC;? campaign while focusing it efforts of bringing together coffee bean farmers in third world countries where clean drinking water is scarce.

Industry Analysis

Political The only political issue that would affect the TOMs way of business, is an increased sales tax rate. With an increased sales tax from the US government, this means that American consumers will have to be more choosy with what products they buy. Economical TOMs Roasting CO. works in compliance with fair trade practices. This ensures that the farmers and that other workers are paid fairly for their craft. In addition to the jobs being created in third world countries, the TOMs Roasting Co. gives back even more by bringing that area clean drinking water. Social TOMs has a very active social media and online presence. Through Facebook, Twitter, Pinterest, and Google+, TOMs connects with customers on a variety of levels through social media. TOMs coffee has reached many different kinds of customers by having a solo Facebook page for the coffee shop in Pasadena, California, twitter users can use the hashtag #TOMsRoastingCo. Fans of the TOMs brand can follow the several boards TOMs has on their Pinterest page, one whole board is dedicated to the TOMs Roasting Co. Technological With TOMs participating different trips around the world to help out those in need, TOMs uses the the newest and most popular mobile and online technology to reach and connect with their target market. With the TOMs brand using every penny from their profits, it is essential to motivate people to buy based off somewhat free campaigns to maximize TOMs efforts. Environmental By partnering with Water for People, the TOMs company works closely with them to fund water cleaning systems in the countries where TOMs gets their coffee beans from. With Water for People getting involved in business and government in these countries to help clean water technologies stay there.

Competitor Analysis TOMs Roasting Company has three main competitors Blue Bottle Coffee, Stumptown Coffee Roasters, and Intelligentsia Coffee. Intelligentsia Coffee is TOMs top competitor because not only does it have thriving coffee shops in Chicago, Los Angeles, and New York City, but since starting in October 1995, Intelligentsia has gained many passionate followers. Intelligentsia is first place as far people going to Google and creating a search. Stumptown Coffee Roasters is the second roasting company to have a leg up on TOMs. Portland, Seattle, New York, and Los Angeles are all cities that host Stumptown Coffee Shop locations. Blue Bottle Coffee is a small coffeehouse giant, but in small measures. Starting in 2002, Blue Bottle has grown into brand that encompasses cafes, carts, and vintage roasters. The thing that all these competitors and TOMs all have in common is that they have coffee shops, but they also sell directly from their websites. With the success of these companies, TOMs does still have the appeal of the One to One campaign that these other companies do not participate in.

Blue Bottle - 3rd place Stumptown - 2nd Intelligentsia - most interest over time

Company Analysis The vision of all of the TOMs brand encompasses the One for One idea. For every shoe sold, a shoe is given. For every pair of eyeglasses sold, give someone else the gift of sight. For every cup or bag of coffee sold, the gift of clean drinking water is given to someone around the world. The One for One idea is the model that influences all of the TOMs brand moves. Different trends that TOMs as a whole is involved in is audience engagement through social media marketing. With the presence of the TOMs on social media being so prevalent, followers and customers that the communication between the brand and its target peoples is one of the most relevant examples in the world. The basic marketing plan for the TOMs Roasting Co. is the same approach that has been taking by every other sector of the TOMs brand. The word has spread about TOMs coffee through the massive publicity it got at the South by Southwest Conference. There has also been massive marketing through the different media platforms that TOMs utilizes. TOMs has also had the leverage of having celebrity endorsements from people who already support TOMs cause. Ashley Benson, actress on the hit show Pretty Little Liars, posted a picture to Instagram during the TOMs campaign “One Day Without Shoes”. The picture reached 209,342 likes along with 713 comments, all with TOMs coffee center stage. Key people that make the TOMs coffee brand such a success today is the CEO of the TOMs company, Blake Mycoskie and the master roaster for the TOMs Roasting Co., Angel Orozco. Through Blakes travels around the world, he saw a great need in places of poverty. Thats how the TOMs brand was originally started. Since Blake’s travels have taken him more and more around the world, the more things he saw that people needed. That is how the TOMs brand developed into so much more than shoes and how now led to coffee. Angel Orozco who was born in Guatemala, but lived most of his life in Los Angeles, California. As master roaster for the TOMs brand, he is in charge of tailoring each kind of roast for the whole company. What he holds close to the heart is that the level of productivity in these countries of origin of the coffee beans matches the demand in the American marketplace.

Consumer Analysis Your average TOMs consumer is anywhere from age 13-30. TOMs caters to men and women and isn’t targeted at a certain race, ethnicity group, or region. The shoes became popular with a younger demographic because they were “trendy” and with an older demographic because they were comfortable and socially responsible. The majority of them are well educated, holding high school or college degrees. Although TOMs doesn’t try to limit their consumers by region, the west coast has the largest number of TOMs customers in the United States. Residents of the west coast seem to be more environmentally conscious and ready to participate in something that gives to a good cause. The psychographics of TOMs customers is that they are socially aware, middle to upper class, media and tech savvy, and participate in arts and music more than the average person. The TOMs consumer is concerned with comfort as well as function when shopping for shoes or other products. Based on a survey of students from the University of British Columbia, 51% were familiar with the company and their mission but only 10% had any idea of how it was actually implemented. Based on this, we can assume that TOMs makes the consumer feel good about purchasing their products without putting a lot of responsibility on them to know what’s really happening behind the scenes or implementing anything themselves.

Brand Audit Past Plans TOMs holds a “One Day Without Shoes” campaign once a year. They encourage people to go one day out of the year without wearing shoes in order to show them how great the need for shoes really is in places where people aren’t fortunate enough to have them. This campaign has been largely successful and running for 7 years now. People post pictures and hashtags on social media to spread the word although TOMs has put out some advertising for the event in years past. Present Plans Exposure through media interviews and published articles in newspapers, magazines, and online resources. Celebrity endorsements are very recently being used on social media. It’s unknown if these celebrities are being recruited and paid for these posts or if it’s a call to action on the celebrities part by supporting the company themselves.

Consumer Perceptions Reviews of different TOMs Coffee roasts from TOMs website Rwanda Roast (average) 4.5 out of 5 stars. All positive reviews. Peru Roast 4.8 out of 5 stars. Customers like the idea of TOMs selling coffee. Malawi Roast 4.5 out of 5 stars Guatemala Roast has 4 out of 5 stars. Positive review Interest By Region: New Jersey, California, Texas (from GoogleTrends)

Survey We surveyed about 100 college women, ages 18-24. We chose to survey women because the majority of purchasers of coffee are women. According to MRI, about 75% of the people who purchase coffee from the supermarket or a gourmet or specialty store are women.

Survey Results 1. Are you male or female? Male 0 FEMALE 98 2. What part of the country are you from? North 10 SOUTH 63 East 19 West 5 I wasn’t born here 0 3. Are you familiar with the TOMs Shoe Company? YES 93 No 5 4. Have you ever bought items from Tom Shoes? (select all that apply) TOMS SHOES 64 TOMs Glasses 1 TOMs Clothing 0 Other 18 5. Would you buy a bag coffee from the TOMs company if it will finance someone in a third world country with clean water for a week? YES 77 No 19 6. What is the most important thing to you when selecting coffee? (select all that apply) TASTE 73 Grade of bean 2 Brand 7 Country of Origin 2 PRICE 47 Don’t drink 7 7. How strongly do you feel about buying bags of coffee beans offline? 1 31 2 8 3 12 4 28 5 9 6 3 7 3 7

8. How likely are you to buy bags of coffee from Whole Foods Market? Very Likely 14 Likely 18 Nuetral 23 Not Likely 19 Not at all 18 I don’t know what Whole Foods is. 4 9. How do you prefer to get your coffee? I brew it at home 24 I get it from a local coffee shop 25 I get it from a fast food restaurant 0 I get it from a coffee chain 39 (Starbucks, Dunkin Donuts, Einsteins) 10. Do you feel the “One for One” concept is attractive for multiple products, why or why not? (written answer below) The majority of survey participants felt that the “One for One” concept can work in many ways because it makes them feel better about purchase decisions. Coffee is a sensitive purchase for a lot of people

Key Findings Through our survey, we found that the majority of people are familiar with TOMs, but only through their shoe collection. They agreed that they would be willing to buy coffee that would provide a week of clean water to someone in need but did not feel strongly at all about buying the cofee online. With TOMs releasing a coffee product to be sold exclusively (to our knowledge) at Whole Foods, people were not very likely to buy from that retailer. Coffee is a very personal and routine decision for a lot of people and even though a good percentage of participants (about 30%) brew their coffee at home, the majority looks to local or chain coffee shops. TOMs relies pretty heavily on social media to spread the word about events they hold and the success they are having in their company. Consumers like feeling good about their purchase decisions and are happy to share that with others, whether it be through word of mouth or online. We think this is why TOMs has gotten by with little advertising and promotions or discounts.

II. SWOT Analysis

Strengths • Credibility through clear view of contribution • “One for One” concept with all products • Inexpensive advertising through word-of-mouth bolstering of image • Grass roots methodology • Planned events that encourage people to participate in and be an ambassador of TOMs such as “A Day Without Shoes,” “Style Your Soles,” and “Giving Trips” • Award Winning company for its benevolence Weaknesses • Some say use of poverty is a marketing tool • Not much information on the specifics of donations are released (percentage of money that goes to people in need, proof of fair wages, etc.) • No paid for television/Internet advertisements to spread news of new products Opportunities • Increase in CSR (Corporate Social Responsibility) • Release of documents concerning the statistics and specifics of TOMs company • Emphasis on who is getting helped where and how much, in fact, they are • Expand customer base with coffee “One for One” implementation • Organic, free trade coffee • Surveys conducted indicate people would be interested in buying TOMs coffee under the “One for One” concept popularized with TOMs shoes. • Coffee will focus on being supplied in quantity to stores where coffee is sold successfully Threats • Mega-Coffee giants such as Starbucks and Dunkin Donuts continuing to dominate marketplace • Coffee can only be purchased with the intention to be brewed by the consumer. • Lack of promotion and claim by the consumer that they have participated in their effort to be charitable with TOMs

III. The Challenges TOMs will have some difficulties garnering the same societal support of their concept for their coffee as they have achieved for their shoes. The problems consist of: TOMs coffee currently only being sold online, whole foods being far and in-between geographically, convenience of purchase, and exposure of existence.

SMART OBJECTIVES Specific Increase sales of TOMs Coffee by at least 100% by June 2015 Measureable Increase of Internet traffic of TOMs website by 50% by June 2015 When buying TOMs Coffee, 30% of buyers use discount code claimed from shoe purchase Actionable TOMs Coffee becomes more readily available to consumers by entering the physical distribution compared to that of only being online. Realistic Purchase of TOMs Coffee by retailers, both local and national. Timely Paper advertising included in TOMs Shoe boxes that include discount on purchase of TOMs Coffee

IV. Branding Strategies Banners & Popups The majority of TOMs consumer base buys their products online or have at least visited their website. Banners on the TOMs homepage would be beneficial for marketing to consumers that aren’t actually making a purchase, just browsing the site. When people make a purchase online, a popup advertisement will appear announcing the concept of TOMs coffee and there will be a link to click to order coffee directly from the site.

Target Local Coffee Shops Although TOMs coffee will be sold in Whole Foods Market stores across the nation, but many areas don’t have easy access to the nearest store. TOMs should network with local coffee shops of the three most populous cities in each state in order to reach a broader consumer base. For example, they could sell their products at local shops such as Spencer’s in Bowling Green. Put Promotions in TOMs Shoe Boxes The company always puts TOMs stickers and a flag in the shoe boxes that is sold to consumers. A small piece of advertisement could be put in the box with information on about the specialty coffee and how it is benefiting the countries that are growing the coffee by providing clean water for their people. Another way to increase awareness is to send out TOMs coffee sleeves in the boxes with shoes. One reason make-at-home coffee is a hard sell is because nobody sees what type of coffee you’re drinking from your home. By giving these sleeves away, we can make customers our advertisers by carrying around a cup of coffee with a sleeve that says “TOMs” on it.

TOMs Consumer

Persona 1

Lilly Johnson • Age………….…19 • Income………...$10/h • Education……...High school graduate; college freshman • Occupation........Sales Representative • Location…….....Charleston, SC • Internet access....Home, Work, School, Mobile I want fashionable, yet comfortable, everyday shoes at an affordable price. Environmentalist. Gen Z. “I’m a freshman at Clemson University studying communication disorders. I am currently a member of Habitat for Humanity and love volunteering at the animal shelter in my spare time. I enjoy working in groups and doing projects that benefit others in some way. It’s important that we lend a helping hand whenever we can because one day we may be the ones that need it.” Attributes • Media/tech savvy • Very connected in social media • Dean’s list • Engaging conversationalist • Involved in extracurricular activities Goals/Motivation • Helping others • Get a degree in communication disorders • Remain on Dean’s list throughout college career • Motivate friends/peers to volunteer

Persona 2 Coffe Shop Client John Smith • Age………………....31 • Income…………..…$100K+ • Education………….MBA in Marketing • Occupation………..Marketing Director • Location…………...Bowling Green, KY • Internet access…...Home, Work, Mobile I am a businessman that supports and markets local businesses. Adaptive. Liberal. Gen X. “I am the marketing director of the local minor league baseball team. In the last ten years I have worked for three companies, and now I lead a team of six. I believe in fueling our local economy and supporting noble causes. It is my job to make sure that or local community is intrigued by our business and feels like they have a contribution in our locality.” Attributes • Media/tech savvy • Well connected throughout community • Personable • Flexible • Experienced • Career oriented Goals/Motivation • Build support for ball team • Improve community involvement • Modernise the downtown area • Volunteer as often as possible • Create safe environment for all ages

Brand Positioning For each persona we have chosen a different brand position. The TOMs consumer will be targeted online. There will be advertisements across all social media and popups will appear whenever a customer is making their final purchase online. Although everyone shopping online for shoes will not be a coffee consumer, it is likely they will read about the new concept and share that information with their peers. We will target the average coffee shop client around the U.S. by promoting TOMs coffee in the three largest cities of each state. Our intention is to sell our bags of coffee from thriving local coffee shops within these cities. It is more likely that local businesses would partner with us than larger businesses like Starbucks. This will require a minimal amount of money for advertising. It would be more of a PR campaign because it wouldnâ&#x20AC;&#x2122;t be commercialized, but it would raise awareness through word of mouth.

V. Communications Framework Why are you communicating?

We are communicating in order to create awareness of the TOMs coffee product. Our KPIs are to hopefully increase hits to the coffee section of the TOMs website and increase searches (google, other search engines) for “TOMs coffee” by 50%. Hopefully this interest online will translate to sales of an increase of 100% by June 2015. We are also hoping that 30% of the sales of coffee will use the coupon code.

What is the one message you want to convey?

Our core message is that the “one for one” concept works for many different products and can benefit people in need in many different ways.

Who are you communicating this to?

We want to communicate to two main groups both in the age range of 18-40. The first subgroup in that category is existing TOMs customers. The second is “Whole Foods” customer types who are interested in coffee and make their own coffee.

Where are you proposing to communicate your message?

For the first target market, we want to reach out to them through the TOMs process: mailed postcards, small messages in the box of shoes when they’re delivered, a message on the computer when they log in to their account on TOMs or as they’re placing an order. For the second, we’ll reach out through Whole Foods’ mailing lists, email lists as well as some in-store advertisements for TOMs Coffee.

When are you communicating?

Starting in June 2014 until the following June. Keeping a steady stream of notifications online and in the mail. We want to increase the amount of mailed advertisements around November until the beginning of January, because that’s when people are more likely to buy gifts for others (Christmas, etc.) and are more willing to splurge on items that aren’t in their normal realm of products.

VI. Budget The expenses will mostly include spreading the awareness of the product. With that being said, the most spent will be on traveling around the states to spread the awareness. Money will also be spent on marketing. Examples include adding the flyers to every TOMs item bought offline and expanding our branding with different stores and coffee shops. An obvious cost will be adding more advertisement. These different things should only have a minimal cost. Our KPI stated before is to raise hits on TOMs website and increase search engines (Google, bing, and others) by 20%. According to The chart below estimates the amount spent on our four major categories, the side representing thousands.

VII. Summary & Next Steps We are hoping to change TOMs Coffee into a convenience for every customer that may be interested. We want to make the â&#x20AC;&#x153;one for oneâ&#x20AC;? concept functional for any product, but we know that coffee has a convenience issue when it comes to having to order it online. Our first step is to include the customers who do purchase a lot of TOMs items online to heavily promote our new coffee to the existing clients. We will also market ourselves to grocery chains that are located all over the country, so every region has the chance to purchase our product and not just the only areas with a Whole Foods Market.

Sources “About Stumptown.” . Stumptown Coffee Roasters, 1 Jan. 2014. Web. 2 May 2014. <http://stumptowncoffee.com/ education-overview/about-stumptown/>. Ashmann, Averi . “TOMs Public Relations Plan.” . N.p., 10 May 2011. Web. 6 May 2014. <http://averima.files. wordpress.com/2011/09/TOMs-pr-plansbook.pdf>. “History.” . Intelligentsia Coffee, 1 Jan. 2013. Web. 2 May 2014. <http://www.intelligentsiacoffee.com/content/his tory>. McNew, Sarah. “Social Media Breakdown: TOMs Social Media Marketing .” . SocialToaster, 20 May 0201. Web. 2 May 2014. <http://www.socialtoaster.com/blog-entry/social-media-breakdown-TOMs-social-media-mar keting>. “Our Story.” . Blue Bottle Coffee, 1 Jan. 2013. Web. 2 May 2014. <http://www.bluebottlecoffee.com/our-story>. “TOMs DEMOGRAPHIC.” . TOMs : IN BUSINESS TO HELP CHANGE LIVES?, 1 Apr. 2013. Web. 2 May 2014. <http://TOMspoli461.wordpress.com/TOMs-demographic/>. TOMs Master Roaster- Angel Orozco. TOMs, 2014. Film. “TOMs Roasting Company.” . TOMs: One for One, 1 Jan. 2014. Web. 2 May 2014. <http://www.TOMs.com/cof fee>.