A N E W S T R AT E G I C I N I T I AT I V E #JOINTHEDROP
CONTENTS
1
EXECUTIVE
2
MARKET ANALYSIS
SUMMARY
3
THE NEW STRATEGIC INITIATIVE
• 02
• 03- 10
• 11- 16
4
5
6
THE CREATIVE BRIEF
COMMUNICATION AND
FINANCIAL PLAN
PROMOTIONAL PLAN
• 17-26
• 01- 04
7
8
CONCLUSION
APPENDIX
• 01- 04
• 01- 04 01
• 01- 04
EXECUTIVE SUMMARY
1
There has been growing scepticism about the authenticity of for-profit philanthropic business models due to its increased popularity. Many companies have been accused as being in-genuine about their values, expressing capitalist motivations rather than charitable. TOMS Shoes is the pioneer and leader in social entrepreneurship with the creation of the One for One business model. For every pair of shoes bought, another pair is given to a child in need. This business model relies on emotional engagement to incentivize a purchase. Our initiative attempts to validate the authenticity behind TOMS by creating an environment that allow customers to remotely partake in TOMS giving trips and meet a child receiving a pair of TOMS shoes. Visitors in Washington Square Park will go “One on One” with a child in on the anniversary of TOMS first giving trip in 2006 in Argentina. This interaction is inspired by Coca Cola’s Small World Machine’s Initiative to connect two conflicting communities through interactive vending machines. We will replicate the technology to create the interactions. It will last three days, during a three day weekend for NYU students, TOM’S primary demographic. Our aim is to create positive brand awareness by inspiring buzz on social media. This event will create recognition for TOMS and combat the negative press they have received, questioning their philanthropic motives. By creating stronger brand awareness and recognizing the need to get provide for children in poverty stricken locations, this event will create an emotional experience for all who are involved.
2
MARKET ANALYSIS MARKET OVERVIEW
The United States holds a crucial role in the footwear market, consuming a total of 28.9% of the global value behind Europe who is leading at 38.1%, while Asia-Pacific is 19.7%, and the rest of the world accounts for 13.4% (see Appendix Fig: A.3). In 2013 alone the United States valued at $74.6 billion, growing 4% from the previous year (see Appendix Fig: A.1). From 2009-2013 the compound annual growth rate (CAGR) is averaged at 4.7% and is estimated to be 6.4% between 2013-2018 to be valuing a total of $101.6 billion in 2018. Where as Europe is forecasted a growth of 2.8% equivalent to 113.0 billion, and Asia-Pacific increasing 5.8% totalling $67.6 billion (see Appendix Fig: A.2). As research illustrates, Toms placement is in a consistently maturing industry, with an abundant room for growth, along with benefiting from its global recognition, competing in the European market (Market Line). In the US alone footwear distribution is valued at 60.5% through clothing, footwear, sportswear and accessories retailers, 18.4% in department stores, 9.9% in hypermarket, supermarket, and discounters and 11.2% distributes to the remaining areas classified as other (see Appendix Fig: A.4). There is moderate competition in footwear, while most of the industry is ran by large retail groups. Although, because of the vast development of diversity, usually many companies can co-exist without interference. Tom’s has grown its brand from one shoe design to currently seven different categories, plus the expansion in various industries, such as coffee and eyewear. Adapting to a lifestyle brand, addressing the expanding needs of its consumers. As far as competition, the only sector that TOMS should be wary of is the athletic shoe competitors which are growing. Athletic shoes are becoming more of an everyday shoe along as well as their origin of functional.
“Who are the other retailers already employing this type of initiative, what have been the benefits� Coca Cola was the first company to construct a two way machine providing an interactive long distance video call which also vended a coke after forming a connection. Their initiative was to show two rival countries that the slim differences between them. Calling it the Small World Machine was a perfect fit. Through this action Coca Cola is able to retain their status of creative advertising, while keeping their products relevant to Indians and Pakistanis, and whole heartedly inspire peace with neighbours in conflict.
04
MARKET ANALYSIS
2
TARGET CUSTOMER IDENTIFICATION
Toms was created with the hope of becoming a for profit philanthropic company without a defined target consumer market, one for one for all. Tom’s caters to men, women, boys and girls of all ages, with size ranges for toddlers to adults. TOM’S also advertises organically through social media outlets, interviews, and customer testimonials. Because of this, the initial consumer base targets a small, young, and socially conscious, or curious niche that is highly active on social media. The primary target audience for TOMS shoes are Generation Y and Millennial males and females aged between 19-24 who are creative trend-setters that are socially aware in becoming socially active. TOMS consumer are primarily college students and recent graduates living in suburban areas and college towns in the United State, although TOMS does sell in Canada, France, Germany, The Netherlands and The UK. Customers are typically upper to upper-middle class citizens with a household income of around $60,000 and a disposable income of under $15,000.
The secondary target market is people aged between 12-18. These are the target customers of TOMS as they believe that due to them being socially aware they are more able and willing to spread the message of TOMS shoes, and therefore are helping support and spread the mission statement.
Generation Y is a socially conscious bunch with 20% of adults under 30 volunteering in 2013, up from 14% in 1989 (U.S. Census, 2015). With cause integration, positive social change is linked to profit motive. In North America, 42% of people are willing to pay extra for products from companies committed to positive social impact (Nielsen, 2014). 29% of millennials visiting social networking sites several times a day, and two-thirds use it to engage with companies around social issues. 20% of millennials leverage new media to support social impact efforts (Formomentum, 2014). Because of this generations hyperawareness of CSR efforts to make the world a better place, Toms has reached out to them to perpetuate their philanthropic message.
06
SARAH BROWN 16 Years
Richmond, VA
Sarah is a High School Sophomore who takes her social life very seriously. Her favorite app is Instagram because she loves looking at photos of her best friends. She bought her first pair of TOMS shoes because all of her friends had a pair. Sarah is in New York traveling for a school sporting event with her mom and wants to eat lunch in Washington Square Park
Godwin High School
MOTIVATOR
GOALS
Sarah loves TOMS shoes and thinks that it will be a fun experience to share with her friends through Instagram, while also buying a new pair of Limited Edition TOMS.
Short Term
EXPECTATION
Long Term
Sarah will partake in the event and share the experience with her friends to increase brand exposure
Sarah will partake in the experience so she can feel as though TOMS motives are genuine and authentic, and will want to continue contributing to the TOMS brand.
Sarah expects the experience to be lighthearted and fun, instead of awkward and emotional.
Sarah notices a crowd of visitors watching the interactions on screens outside the pop up shop
She decides to wait in line to partake in the experience
She stands at the interaction screen and performs the interactive activity to reveal the child in Argentina.
A mp4 file of the interaction is sent to her on her phone and decides to share it with her friends on Instagram
07
She begs her mom to buy her a pair of Limited Edition shoes
Her shoes arrive in Richmond and she posts a picture of them with a caption “#tbt to they day I #joinedthedrop�
Her friends are inspired to purchase a pair of TOMS for themselves.
ANNA SUAREZ Anna is a Junior at New York University majoring in Public Relations. She is an active humanitarian and tries to contribute to social and environmental reform every opportunity she can. She bought her first pair of TOMS to support the One for One model but has been skeptical about TOMS authenticity.
20 Years
New York City
2
She enjoys reading and having picnics in Washington Square Park and is spending her day off of school relaxing there.
NYU
MOTIVATOR
GOALS
Anna wants to find an opportunity to contribute to TOMS philanthropy
EXPECTATION
She decides to wait in line to partake in the experience
Anna will partake in the event in order to gain an emotional experience through interacting with children in need. Long Term
Anna expects the experience to be genuine and authentic so she can feel as though she is actually partaking in TOMS shoe drops, however remotely.
Anna notices the footprints leading up to the pop up shop and is intrigued by the interactive screens
Short Term
She stands at the interaction screen and performs the interactive activity to reveal the child in Argentina.
Anna will continue to support the TOMS brand knowing that their motives are authentic. She will become an advocate for TOMS philanthropic business model.
A mp4 file of the interaction is sent to her on her phone and makes a heartfelt post on facebook promoting the event
08
She decides to buy her a pair of Limited Edition shoes, and a pair of classics for her boyfriend.
Her shoes arrive She decides to with an invitation donate to the to sponsor the child sponsorship she met at the program, and event. calls to find out more about how she can help.
SUBSTITUTES
POTENTIAL ENTRANTS
threats of substitution
INDUSTRY COMPETITOR
BUYERS
threats of new entry
competitive rivalry within an industry
bargaining power of consumer
SUPPLIERS
2
bargaining power of supplies
MARKET ANALYSIS PORTER’S 5 FORCE ANALYSIS
COMPETITIVE RIVALRY WITHIN AN INDUSTRY • Competitive Rivalry is low as TOMS is the only shoe retailer offering a technology driven experiential marketing initiative that is philanthropically driven. • Other shoe retailers practicing technology driven experiential marketing initiatives, such as Nike, are athletic brands and do not have a community building approach. • Our consumer loyalty is moderate, allowing for a more impactful experience for those attending the initiative
09
THREATS OF NEW ENTRY • Technology is unique to one specific supplier, making it challenging for others to replicate. • It is possible to replicate the technology, as there is still patent pending. • Other retailers do not have as strong philanthropic practices, and relationships with non-profit organizations. • Other shoe retailers do not have the same one for one business model that makes our initiative unique • Initiative involves high cost and strategic planning
2
BARGAINING POWER OF SUPPLIES • interactive two way video streaming is a unique technology developed by one supplier, The SuperGroup. • moderate number of suppliers with the components to develop a similar technology, but require creative expertise and research in order to implement • Cost of technology and implementation is negotiable but heavily determined by suppliers • Main developer of technology can offer competitive pricing justified by their expertise
BARGAINING POWER OF CUSTOMER • Consumers are driven to purchase by emotional response to the initiative. • Customers are not obligated to make a purchase during the event • Toms offers a unique experience that is challenging to replicate, connecting customers with children in need. • People can only get the same experience by attending a shoe drop. • There is no cost to participate in the initiative.
THREATS OF SUBSTITUTION
• Coca cola offers the same sentiment and experience through their Small World Machines • Customers will find it difficult to replicate the same connection unless they attend a shoe drop.
10
3
THE NEW STRATEGIC INITIATIVE KEY OBJECTIVES
3
NEW INITIATIVE
INITIATIVE JUSTIFICATION
To promote the mission of Tom’s through an interactive and engaging brand experience, creating lasting emotional connections with customers, and providing a real-time affirmation of the authenticity of the “one - for one” movement.
Our Campaign is influenced by CocaCola’s Small World Machines initiative to create peaceful interactions between two disengaging countries, concluding in a 500% rise in shares and over 550 media impressions.
LONG TERM BENEFITS TOM’s aims to gain customer loyalty and brand recognition by reiterating assurance of the one to one movement, bringing awareness to the needs of impoverished economies throughout the world.
12
3
THE NEW STRATEGIC INITIATIVE TECHNOLOGY AND IMPLEMENTATION
The technology used in Coca Cola’s “Small World Machines” Campaign was custom built for the initiative and patent pending by Digital Agency, The SuperGroup. Before this campaign, there was no bundled technology available to create the campaign. No single piece of equipment is available to do the job, but there are separate components that SuperGroup creatively linked together to produce the technology. More than just a two-way Skype conference, the interactive displays utilized a special active-shutter 3-D technology that projected a streaming feed onto glass while filming through the glass at the same time (FastCo, 2013). This technology is necessary in order for people to make direct eye contact and touch hands in real time and to create a seamless, live interaction. The technique used is what SuperGroup calls “The Georgian Quickstep.” This new method essentially gives cameras the ability to see through a wall. They created a software that displayed the full image of the person in front of the machine in only one of the 3D lens of the camera, while the other lens displayed a blank frame. That lens is then placed overtop of the camera. The projector is able to display both the full and blank images the entire time, but is still able to film the people in front of each screen without picking up the projected image as well.
THE NEW STRATEGIC INITIATIVE OPERATIONAL CONSIDERATION
VENUE
Our initiative requires us to exploring two different communities that we would want to create a connection between. Because we will be using real-time interactions, we needed to scout two areas within the same time zone. Argentina was the most fitting choice, as we wanted to use the event to celebrate the anniversary of the first shoe drop in October 2006. Because the TOMS target consumer is primarily college aged, we decided to choose Washington Square Park as it is frequently populated by NYU students. The date of the initiative will be on October 10, 11, 12, which is a long weekend for these students. Permits and fees will need to be submitted to the NYC parks organization prior to the event.
TECHNOLOGY
The technology used in the Small Worlds Machine campaign for Coca Cola was developed exclusively for the campaign by Digital Agency, The SuperGroup Omnimedia (A Creative Odyssey). The technology features 3D active shutter technology that allows for 2-way video conferencing, with interactive touch screen capabilities (Aldridge). It requires an internet connection to work so it will require a generator and wifi connection for both locations, particularly in Argentina. Because this technology is Patent Pending from The SuperGroup, they will specially design the hardware and software. After testing the functionality of the technology it will ship it from their location in Atlanta, GA to the pop up shop architect in New York City.
POP UP SHOP DEVELOPMENT
For our initiative, two pop-up shops will need to be created in order to support the technology in both Argentina and Washington Square Park. Constructed by Boxman Studios in New York City, the structure will be made from used shipping containers which are stable and cost-effective (Boxman Studios). To fit the TOMS brand, raw and repurposed wood will be used to adorn the walls of the shipping container. There is ample space to allow for the interaction area traffic flow, display shoes, fitting benches, and iPad kiosks. There will also be two display screens on the outside of the shops projecting a live feed of the interaction. Because it is a three day event the pop up shop is collapsible and mobile as they need to be closed down during the night time, and to accommodate travel to each orphanage in which we will donate shoes. The Pop up shop will be shipped to a warehouse in New York city, to be taken to Washington Square on the day of the event. The Pop up in Argentina will be shipped through customs to a warehouse that will be picked up by two TOMS employees upon arrival, with a rented semi-truck for travel.
INVENTORY PLANNING
Because our initiative celebrates the anniversary of TOM’S first giving trip, we have designed limited edition style classic shoes with an Argentina print for the event. The pop up shop will not sell physical merchandise, but will allow e-commerce purchases through employees equipped with iPads, iPad kiosks, and mobile purchasing. Customers are able to purchase the full color assortment of TOMS classic, youth, and tiny toms, as well as the new Limited Edition Argentina shoes. While there will not be any need for inventory, there will be display shoes in every size to allow customers to address sizing concerns. These items will need to be shipped to the Pop up shop location in Washington Square Park, as well as the donated pairs for children in Argentina. 14
ARGENTINA
TOMS giving trips are planned and executed primarily through their giving partners. For our initiative we have partnered with Help Argentina (HELPARGENTINA), a not-for profit that allows international donors to identify and support high impact nonprofits in Argentina. Through this organization we will perform the operations of the giving trip, such as scouting areas to donate shoes, finding a place to stay and eat during the giving trip, as well as assist two TOMS team members in giving out the donated shoes. These giving partners will need to be trained on how to use the interactive screen in order to assist the children in interacting with the technology. There will also be IT professionals available to address technological malfunctions. Videographers will be documenting the event at each location for post-promotional footage. We will be donating shoes in three elementary schools so he pop up shop will need to be ready for set up early in the morning before each school day, go through a technology test, and packed up each night and placed on the semi-truck bed for travel. The TOMS employees will arrive the day before the launch, pick up the pop up the morning of the launch.
WASHINGTON SQUARE PARK
3
In the New York pop up, we will be hiring two employees that will assist customers in the interactive technology, and to help customers make purchases, equipped with iPads. IT professionals will also be available to address technological malfunctions, as well as videographers to document the event. Prior to the event the pop up shop will need to be set up, and the interactive technology will need to be tested.
LAUNCH
On the day of the event, the pop up shops will need to be set up in each location very early in the morning and go through a technology test. The first orphanage in Buenos, Aires Argentina, is called Children’s Trust in Mansilla (Patronato De La Infancia). During the even, children are invited to play with the people in New York at one minute intervals, and in their downtime, activity tables will be set up with different crafts and games to partake in. At the end of the first day the shop will be closed in both locations and the one in Buenos Aires will be taken back to the warehouse. The crew will stay at Luna Madre, (see Appendix Fig: C.1).a Hostel located near the warehouse, each night (LUNA MADRE HOSTEL). The next day the pop up will continue, but in a second orphanage, children’s home Puerta del Cielo that hosts 43 families at social risk. The third day the location will be at the Maria Virgen Madre Foundation, that host 80 families at risk (FUNDACIÓN MARÍA VIRGEN MADRE). Each interaction is very free flow on the Argentina side, allowing one or more kids to interact at a given time as they please, if there are not any children who wish to interact, footage of the giving trip is shown in real time to the viewers in New York. Customers in New York will participate and may choose to make a purchase as they please. The total time in which the interactions will take place will be from 11:00pm - 3:00pm, however the shop will be open to make purchases until 5:00pm each day.
DATA
Data will be collected and analyzed during the event to help determine success of the initiative. This will help to determine if the initiative should continue in different locations each year. Data such as purchases, traffic, number of interactions, and conversion rates, will be collected during the event, as well as social media data post-launch.
POST LAUNCH OPERATIONS
After the three day event, the pop up shops will need to be packed away and shipped to TOMS warehouse in California. We will also contact our giving partner to check up on the success of the pop up in Argentina. We will receive information about the children who received shoes and opportunities for further sponsorship to give to the customers who have purchased pairs during the event. 15
VENUE Scout/Contact Locations Submit Permits Location/ Market Research TECHNOLOGY Contact SuperGroup Touch Screen Development Shipping to Architect Technology Testing POP UP SHOP DEVELOPMENT Scout/ Contact Architect Pop Up Development Shipping to Washington Square Park Shipping to Argentina Order iPads/ LightSpeed Payment Update/ Test Shopping Interface for iPad INVENTORY PLANNING Design Limited Edition Shoes Put in Orders for Shoe Drop- Argentina Inventory Orders for WSP Shipping to Argentina Shipping to NYC ARGENTINA Contact/Update Giving Partners Pop Up Installation Train Giing Partners Technology Testing TOMS Team Travel to Argentina WASHINGTON SQUARE PARK Hire/Train Human Resources Pop-up Installation Technology Testing LAUNCH Set Up Travel Takedown DATA Collection and Evaluation POST LAUNCH OPERATIONS Contact Storage for Pop Up Shop Shipment to Storage Follow Up With Giving Partners
ACTIVITY JAN
FEB
MAR
APR
MAY
JUN
PRE LAUNCH JUL
AUG
SEP
LAUNCH POST LAUNCH OCT NOV DEC SAT. 10TH SUN. 11TH MON. 12TH
4
THE CREATIVE BRIEF OVERALL OF RETAILER
2006
BLAKE MYCOSKIE STARTS TOMS SHOES
2008
LAUNCHES “ONE DAY WITHOUT SHOES ”
2009
TOMS ACCEPTS ACE AWARDS
2011
LAUNCHES TOMS EYEWEAR
2014
LAUNCHES TOMS ROASTING COMPANY
2014
BALN CAPITAL LLC ACQUIRES 50% SHARE
2015
LAUNCHES TOMS BAG COLLECTION
TOMS became a reality when founder and Chief Shoe Giver Blake Mycoski envisioned a new business model, providing aid with every product purchased. This became a vision after Blake made a trip to Argentina in 2006. He saw many people, particularly young children, living in poverty and without shoes. Blake recognized a need and set forth to conquer the challenge. A new definition in philanthropic business, the One for One®Program provides a child in need with a pair of shoes for every pair that is purchased by a consumer. The company’s name “TOMS” comes from the word tomorrow. The concept behind this word is “Shoes for Tomorrow.” TOMS has since launched other product lines that provide further benefits to people in poverty stricken areas across the globe. TOMS eyewear was launched in 2011, providing prescription glasses, medical treatment and/or sight saving surgery with each purchase of eyewear. TOMS Roasting Co. Coffee, launched in 2014, provides 140 liters of safe water, or a one week supply, to a person in need. And in 2015, TOMS Bag Collection was created to provide safe births for mothers and their babies in need. According to the TOMS website, TOMS shoes has provided over 35 million pairs of shoes to children since 2006. TOMS eyewear has restored sight to over 275,000 since 2011, and TOMS Roasting Company has helped provide over 67,000 weeks of safe water since 2014.
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4
TOMS ESTIMATED VALUE 624 MILLION
Mycoskie’s organization consists of two parts. TOMS Shoes is a for-profit company that manages the overall operations and logistics. Friends of TOMS, the company’s non-profit subsidiary, is responsible for organizing volunteer activities and all shoe drops. Friends of TOMS is not a corporate backed foundation that the company supports through donations; rather, it is a necessary part of TOMS’ distinct business model, One for One TM. Until 2014 TOMS was solely owned by Mycoski, however a 50% stake in the company was acquired by the private equity firm, Bain Capital LLC, in August of that year. The company has an estimated value at $624 million. This was a business move to help grow the company more quickly than they could on their own (Stock, 2014)
TOMS continues to look for more sustainable materials, and impactful ways to improve lives. They continue to improve their supply chain and add jobs in places where they give. They are growing relationships with more giving partners and expanding their customer following through campaigns such as the TOMS Tribe. While they celebrate their accomplishments they still see change in the future.
• Pioneers of the One for One model • Deep product line for the “alpargata” shoe • Compelling brand story / message • Has a strong wholesale business • Well established within the Young Adult sector
SWOT
• Heavy reliance on organic marketing • Giving doesn’t solve poverty, only a symptom • Harmful to local business in donating areas • Still a new, not yet fully established company • For-profit philanthropy perceived as inauthentic
Analysis
• Negative PR questioning brand authenticity • Growth of philanthropic businesses • Economic downturn • More established competitors in the market
• New brand extensions • New market opportunities • Exploring other types of formal advertising • More sustainable materials and practices • New relationships with Giving Partners
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4 THE CREATIVE BRIEF
CURRENT POSITIONING IN THE MARKETING
A key objective of our initiative is to achieve a more positive brand perception and loyalty in the face of negative criticism. TOMS direct competitors are more established shoe companies that all offer a “classic” and key shoe that is integral to their brand identity. While not all TOMS competitors follow a philanthropic business model, many have achieved a loyal consumer following more successfully than TOMS. In order to determine a value for each competitors consumer following, we distributed a survey asking respondents how likely they were to purchase shoes from each brand on a scale of 1-5 (see Appendix Fig: B.4). We then benchmarked that data against each brand’s current social media following on Twitter, Facebook, and Instagram (see Appendix Fig: B.3). Price values were determined by benchmarking each brand’s highest and lowest price for three main shoe styles: The classic slip on, sandals, and boots (see Appendix Fig: B.1). High Top sneakers were chosen as a supplement for brands who do not offer a boot style, such as Converse and Vans. Based on the results of our research, it is evident that TOMS has achieved a decent consumer following, however in the face of negative press and criticism, TOMS runs the risk of losing the allegiance of its core consumer. Converse, Vans, and Keds have surpassed TOMS in gaining a loyal consumer following, and for the same, or lower price. TOMS has an opportunity to engage further with their customers in order to fully, and more consistently,
HIGH CONSUMER FOLLOWING
$
LOW CONSUMER FOLLOWING
$$$
LI ON NE
SA LE HO W LE I TA RE L AUSTIN
VENICE
NEW YORK CITY PORTLAND
G IN LL SE ION UE IT IQ OS UN OP PR
CHICAGO
While many companies have adopted philanthropic business models and practices,TOMS has established itself as the pioneer and leader in the One for One movement,providing shoes for children in need with every purchase.
THE CREATIVE BRIEF CURRENT PLACEMENT
DISTRIBUTION Toms are predominantly distributed through wholesale, allocated diversely through high-end outlets such as Bergdorf Goodman, Neiman Marcus, and Nordstrom’s to more commercial retailers such as Journey’s, and Zumiez. All of which are easily purchased in store or online. While Whole foods, and other specialty boutiques are positioning Toms solely in stores, Amazon, Etsy, and 11 others keep to e-commerce. TOMS retails through their own website that accommodates the US, France, Germany, Netherlands, Canada, and the United Kingdom (Toms.com). Testing out Brick and Mortar in 2008, Toms created their first pop-up shop in Venice, California, accomplishing beyond expectations they continued to extended their stay by four months. In October 2014 – January 2015 Toms placed their pop-up “Give-Shop” in La Jolla, familiarizing locals with the one-for-one concept as well as providing events to engage in with the community, including craft nights and movie screenings to name a few. As of 2012 Toms opened its first flagship in Venice, California, putting forth a tangible brand experience and giving consumers time to really soak in it at the Toms café (Thrasher). Since then Toms has expanded to Chicago, IL, New York City, NY, Portland, OR, and Austin, TX.
THE CREATIVE BRIEF
4
CURRENT COMMUNICATION AND PROMOTIONAL ACTIVITIES
While TOMS is still in their early stages of marketing, they have been testing different ways to best reach their target consumers. TOMS does not support traditional paid marketing or advertising. Instead, the company relies on word of mouth, viral marketing, and social networks for its marketing efforts (Marshall, 2015). Because of this TOMS targets consumers that are highly social, and active on social media platforms. They have 493,000 Instagram followers, 59,000 Twitter followers, and 222,200 Facebook friends. Their instagram page is authentic and transparent, gives insight to giving trips, new collaborations, and the people that are benefiting from a new pair of shoes. This helps to reinstate the One for One model and show the customer that the products are helping others.
SWEEPSTAKES & PROMOTIONS
SOCIAL MEDIA
TOMS uses many of their advertising and promotional activities to retain consumer engagement and loyalty. They frequently use sweepstakes and create opportunities for their customers to communicate with the brand. In May of this year TOMS teamed up with DREAMJOBBING.COM, an online destination for unique job opportunities. They posted a short-term position for a new “Global Giver.” The selected applicant will receive an opportunity to travel with the TOMS team to participate in upcoming Giving Trips (Dreamjobbing, 2015).
They use their social media platforms to promote their Day Without Shoes campaign. This campaign invites people to without shoes for one day to bring global awareness to children’s health and education. TOMS is proactive in encouraging word-of-mouth communication (Marshall, 2014). Each pair of TOMS Shoes comes with a blue-and-white TOMS’ flag and a small card asking customers to take pictures of themselves wearing their new shoes and holding up the flag. The customers upload those photos on social media. The photos of customers using TOMS products increases both
For Bushstock 2014, a music festival located in the UK, TOMS hosted a “Secret Garden State” featuring three special performances at an exclusive location. Select customers were chosen to win 1 out of 15 pairs of tickets per show and a TOMS goodie bag. Another sweepstakes was a random draw enticing customers to provide TOMS with their email. The winner would receive one free pair of TOMS each month for one year (Bushstock, 2015).
COLLABORATIONS
TOMS often develops successful collaborations with popular and like-minded brands and influencers for limited edition collections. Recognizable brands have already launched a limited edition shoe such as Ralph Lauren, Element Skateboard, Target, The ROW, and Jonathan Adler to name a few. As one of the first collaborations, Ralph Lauren worked with TOMS to develop a co-branded Polo Rugby shoe, which maintained the One for One philosophy.
VIRAL MARKETING TOMS utilizes viral marketing techniques such as producing comical video campaigns like the “TOMS ActGIVEity Tracker” and “SHUBERX”, mocking popular culture items.
21
4 CRM STRATEGY
TOMS PASSPORT REWARDS TOMS rewards program allows customers to earn “stamps� by shopping online, in-store, by subscribing to the newsletter, connecting to TOMS social media account, checking in to TOMS stores, and attending events. Rewards include promotions, sweepstakes, early access to products, birthday surprises, etc.
TOMS CATALOG TOMS customers may subscribe to the catalog in order to stay up to date with new TOMS products, limited edition styles, new arrivals, and exclusive collaborations. The catalog also provides behindthe- scenes looks at how Giving Partners help to give shoes, sight, water, and safer births in over 70 countries around the world.
TOMS TRIBE TOMS tribe members are those who sight up to take an active role in a TOMS themed event and share the TOMS story with others. Members sign up by filling out an online form, and recieve information and support from the TOMS team in creating themed event ideas.
4 THE CREATIVE BRIEF
BUSINESS ISSUES AND OBJECTIVES
BUSINESS ISSUE
There has been negative press regarding TOMS for-profit philanthropic business model. Critics feel that TOMS is not actually solving the problem of poverty, only addressing the symptoms. (Marshall, 2014) The aid TOMS provides is not enough to truly help the countries they are donating to. There are also concerns about undermining the local economies of the countries they give free pairs to. By essentially “dumping”, local shoemakers go out of business and are unable to provide for themselves or their families. Studies have shown donating foreign produced items has a significant impact on the reduction of local employment. A study conducted in 2008 in Africa showed that donations were responsible for a 50% decline in the region’s apparel employment (Otto, 2013). Because of this negative press, the One for One® business model has been perceived as inauthentic, and in some opinions, destructive.
INITIATIVE
As Coca-Cola used the Small World Machine to provide conflicting worlds a vision of peace, here at Toms we hope to provide distant worlds with a feeling of unity. In the summer of 2015 Toms will host a pop-up shop in Washington Square Park, in New York City at the same time as a drop off is occurring in Argentina. It will be a once in a lifetime experience as the one-for-one initiative is transformed into a tangible exchange, made possible through our own “small world machine”. New Yorkers will walk up to the machine to meet a child who has just received their own pair of TOMS shoes, each ‘one’ will have a chance to interact with each other from each end. Building lasting memories, igniting instant smiles, and providing healthy “soles” for everyone.
OBJECTIVES The One-for-One® movement is gaining ground, with an increasing number of social organizations and businesses adopting cause driven and philanthropic business models. This has lead to burgeoning competition for TOMS and their One-for-One® strategy. In spite of these obstacles we aim to implement an initiative to combat the negative press TOMS has faced. We hope to create an emotional and compelling brand connection increase brand awareness, consumer loyalty, and affirm the authenticity as the leader of the one to one movement. 23
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MOOD BOARD
Font: Trebuchet Color:Pantone color code 290C/635C Brand Aesthetic: Youthful; organic; authentic; raw; recycled
Social Media
Packaging
Video Campaign
Pop- up Store
One Day Without Shoes
THE CREATIVE BRIEF LIST OF DELIVERABLES
4
With TOMS having such a strong presence on social media as main line of communication with their customers, we would like to create a series of posts to include followers in this unique experience. This will be used prior to the event to help promote our initiative This social media campaign will be focused on the experience and authenticity of TOMS message.
The launch of the campaign in the United States will take place in Washington Square Park. This will require a trade booth type set up for the interaction to happen. A mock trade booth following the brand’s aesthetic will hold the machine for the interaction to take place, and tablet stations for the customer to make a transaction. The booth will strongly represent TOMS and attract their existing customer, while also reaching new customers with the excitement of the event. We will need to create a visualization of the physical space for the event. The final deliverable will be a visualization of the digital interaction that will take place between the TOMS customer and a child receiving their free pair during the Giving Trip in Argentina. It is important to create a heartfelt and authentic visualization as it will be used across social media platforms after the initiative takes place. Creating a genuine experience is the most crucial
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ACTIVITY
PRE LAUNCH
POST LAUNCH LAUNCH OCT NOV DEC SAT. 10TH SUN. 11TH MON. 12TH
SEP
SOCIAL MEDIA Hashtag Campaign Facebook Promo Instagram Promo Twitter Videos Promo Youtube Video Youtube Pop-up Video ONLINE Website Campaign Newsletter Meet Your One Letter Pop-up Video IN STORE In Store Signage IN POP-UP Foot Trail to Pop Up Special Edition Argentina TOMS OUTSIDE SOURCES Videographer Filming NYC Videographer filming Argentina
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5
COMMUNICATION AND PROMOTIONAL PLAN INTEGRATED COMMUNICATION PLAN
By using TOMS different platforms via social media, a number of post will be published a month prior to the launch of the “Join The Drop� campaign. Hashtags will be introduced to promote the event. These will be integrated through all of TOMS outlets to reach the optimal amount of customers. The post will start the excitement and the emotional experience behind the campaign, pulling at the heart strings of the customers, while not exposing the interaction. HELP ARGENTINA has been chosen as the giving partner for this initiative. They help to make sure the events in Argentina go smoothly and plan the locations. The shoe drops would not be possible without the connections made with the giving partners. A Special Edition Argentina TOMS will be released and available for this event. With the event highlighting the 10 year anniversary of the first drop in Argentina, the shoes will showcase the sun from the Argentina flag. In collaboration with a giving partner, everyone that participates in the event will be sent an email to sponsor a child. Through HELP ARGENTINA
Special Edition Argentina TOMS 28
01 Footprint Trail In the Park
Pop-Up Shop
COMMUNICATION AND PROMOTIONAL PLAN PRE-LAUNCH, LAUNCH, AND POST- LAUNCH During the month leading up to the event, a series of post on all platforms of social media will be published. TOMS has large following due to their younger customer. Their consumer wants to be informed and always connected, that is the focus of this initiative. Hashtags will be introduced to start connecting the posts, and a newsletters will be sent to TOMS members. Signage and promotional cards will be in the New York store sending them to Washington Square Park for the event. Following a trail of blue footprints, people will make their way to the pop up shop. An open shipping container will invite the people in during the launch, and there will be footage of the event posted on the TOMS Youtube page throughout the day. Posts will be put on different social media outlets to encourage people to come the next day, and customers will also be encouraged to post their personal experiences on social media and share the event with friends. This event is all about connections and bringing social media into the campaign will only make TOMS more visible. After the launch, emails will be sent to the participants asking them to sponsor a child though the giving partner. The post launch promotions will last a month, and It will go into the beginning of December encouraging sponsoring a child for Christmas. This will also include the use of hashtags to keep the momentum from the event. If the event is successful, there are plans to continue the launch in other locations in the United States and connect with children in other parts of the world.
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6
FINANCIAL PLAN
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BUDGET PLANNING HUMAN RESOURCES
UNITS
HOURS
COST PER HOUR
TOTAL COST
2 2 1 2 4 1
8 10 8 10 10 12
$20.00 $20.00 $20.00 $20.00 $50.00 $80.00
$200.00 $240.00 $180.00 $240.00 $2,000.00 $1,040.00 $3,900.00
TECHNOLOGY
UNITS
COST PER UNIT
TOTAL COST
Total Package Cost Touch Screen 60×57 TOTAL TECHNOLOGY
2
$8,000.00
POP UP SHOP DEVELOPMENT WSP
UNITS
COST PER UNIT
TOTAL COST
POP UP SHOP DEVELOPMENT ARGENTINA
UNITS
COST PER UNIT
TOTAL COST
Pop-up Construction Activity Tables Lighting Speakers (set of 4 with doc) Power Station(50 amp 100Outlets) Displays Wifi Port Picture frames TOTAL POP UP SHOP DEVELOPMENT
1 2 1 1 1 4 1 20
$40,000/00 $70.00 $24.95 $150.00 $1,999.99 $31.49 $99.98 $2.00
$40,000.00 $140.00 $24.95 $150.00 $1,999.99 $125.96 $99.98 $40.00 $42,580.88
COST
TOTAL COST
COST
TOTAL COST
New York Shop Employees Argentina Shop Employees New York IT Professionals Argentina IT Professionals Video Team UX DESIGNER TOTAL HUMAN RESOURCES
Pop-up Construction Armadillo Freestanding Tablet Displays iPad Lighting Wood Crates Fitting Benches Speakers (set of 4 with doc) Power Station (50 amp 100 outlet) Sinage and Displays Prayer Flags Wanscam-Wireless Survellance Rugs Wifi Port TOTAL POP-UP SHOP DEVELOPMENT
INVENTORY PLANNING
Inventory for WSP Pop-up Inventory Order for Limited Edition Shoes TOTAL INVENTORY PLANNING COST
ARGENTINA
Duty/Shipping There Shipping Back Truck Rental TOTAL ARGENTINA COST
1 4 4 4 6 3 2 1 4 2 1 4 1
UNITS 1 1200
UNITS 1 1 3
$930.98 $11.42
$5,071.67 $5,071.67 $792.87 $10,936.20
COST
TOTAL COST
1 1 1
$25.00 $12,000.00 $9900.00
HR CARE
UNITS
PER DAY
TOTAL COST
8 8 6 5
$930.98 $13,704.00
$5,071.67 $5,071.67 $264.29
UNITS
Round Trip Flight LA- Argentina Hotel Meals Meals WSP TOTAL LAUNCH COST
$40,000.00 $1,996.00 $1,596.00 $99.80 $83.94 $236.97 $300.00 $1,999.99 $125.96 $34.98 $49.99 $279.96 $99.98 $46,904.57
$40,000.00 $499.00 $399.00 $24.95 $13.99 $78.99 $150.00 $1,999.99 $31.49 $17.49 $49.99 489.99 $99.98
WASHINGTON SQUARE PARK
Washington Square Park Permit Commercial Event Fee (25% of Park) Amplifed Sound Permit TOTAL WASHINGTON SQUARE PARK COST
$16,000.00 $16,000.00
$1,135.71 $2.38 $30.00 $20.00
(see Appendix Fig: B.5)
$25.00 $12,000.00 $900.00 $12,925.00
DAYS
TOTAL COST
4 4 3
$9,085.68 $9.52 $120.00 $60.00 $9,275.20
$157,155.83
(see Appendix Fig: B.6)
FINANCIAL PLAN SALES FORECAST The Toms pop-up shop is going to receive the most sales from Millennials, so we predict to sell the most of Toms Classic with an average demand for the Limited Edition Argentina shoe, with Youth styles having the third highest demand and Tiny Toms with the least. Washington Square Park has an estimated foot traffic of around 200,000 visitors a day. As there is no public data giving average foot traffic, this number is estimated by benchmarking it against nearby parks around the city with the same square footage, such as Bryant Park (see Appendix Fig: C.4). Because the pop up shop will be launched during a three day weekend for NYU students, we expect Saturday, October the 10th to have the most foot traffic of 80,000 visitors, with Sunday decreasing to 70,000, and Monday having the least at 50,000. With an estimated 2% conversion rate, multiplied by the average units per transactions which, the total number of transactions accounts for 1,600 on Saturday, 1,400 on Sunday, and 1,000 on Monday. Adding up all are potential sales for each day based on our traffic, conversion rate, and transactions we then put into place are estimated returns. We placed a 9.14% return rate which we received from the National Retail Foundation (NRF) putting our total Revenue at $77,867 on Saturday, $68,134 on Sunday, and $48,667 on Monday (NRF Annual Returns Survey, 2014) (see Appendix Fig: C.2). TOMS is a private company and does not publicly disclose their financial data. In order to determine the cost of goods sold, we based the numbers on a 48% Gross Margin for the footwear industry (National Retail Trade Survey, 2014) (see Appendix Fig: C.3) After subtracted our total expenses of $243,748 from our total revenue our earnings before tax to came out to a loss of $49,081. While the initiative comes out at a moderate loss, TOMS does not ordinarily spend a lot of money on advertising, relying heavily on organic word of mouth advertising. Because this is only an annual event, and its main benefit is to bring more consumer loyalty and brand recognition instead of generating sales, TOMS can afford the expense.
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7
CONCLUSION
The “Join The Drop� initiative focuses on connecting the customer with the recipient of the shoes to form a bond that no other shoe brand can inspire. While the event is a steep investment in comparison to TOMS usual marketing initiatives, showing a financial loss, the annual event is supported for just that reason. TOMS typically does not spend much money in advertising, so spending money on just one big event annually, the expense is justified. The initiative is solely about creating the raw emotional experience that will come from seeing the gratitude from the children and by giving people a direct window into the lives of these children . This, in return, will inspire positive press and awareness through social media.
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APPENDIX
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38
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Fig. A.2
Fig. A.1
APPENDIX A
Fig. A.4
Fig. A.3
Fig. B.3
Fig. B.2
APPENDIX B
Fig. B.4
Fig. B.1
APPENDIX C
Fig. C.1
Fig. C.2
Fig. C.3
Fig. C.4 44
Fig. C.5
Fig. C.6
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TOMS “ONE FOR ONE” GOES “ONE ON ONE”
Morgan Mccarty
Jiamin Yan
Elizabet Rose
Emily Brazeale