Benefit Report for Toms Concept

PROJECT 3: Term Project.

Designing Benefits Phase 2 Phase 3: Experience Design

This will focus on a deeper insight into the concept development for Toms. First, imaginative questions will be posed to create a framework for the idea. The concept will then be explained in depth, followed by user scenarios to illustrate the experiential aspect to the concept. Lastly, strategic scenarios will aid in the implementation of the concept.

Rambert Sin 12/5/2017

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PROJECT 3: Term Project. Designing Benefits Phase 2 Phase 3: Experience Design Process: This report will be sequential, starting from the process of asking imaginative questions, followed by a detailed implementation report of the concept, and finally user and strategic scenarios.

IMAGINATIVE QUESTIONS • WHAT IS THE BENEFIT OF THE CONCEPT? • WHAT IS GOING TO CREATE THE MAXIMUM VALUE WITH MIINIMAL CHANGE? • WHAT IF PEOPLE DON’T SUPPORT THE CHANGES? • HOW WILL PEOPLE LEARN ABOUT THE NEW CONCEPTS? • WILL THE CONCEPT AFFECT TOMS IN A NEGATIVE WAY? • WHAT IF THE CONCEPT CANNOT BE IMPLEMENTED FULLY? • WHO WILL HAVE TO SUPPORT THIS CONCEPT FOR ITS SUCCESS TO BE POSSIBLE? WHAT IS THE BENEFIT OF THE CONCEPT?

The conception of this opportunity comes through the in-depth research on the values and desires of Toms and its consumers. For this reason, the concept is completely based and suited for Toms, meaning that it will not be a replacement, instead, an enhancement, for the value of the brand, and the expansion of the company. Not only will current Tribe members continue to support Toms, but there will be a large increase in the Tribe, through the expansion of the demographic, as explained in the Insight report, as well as the store front concept which will be the focus for this report.

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WHAT IS GOING TO CREATE THE MAXIMUM VALUE WITH MINIMAL CHANGE? The implementation of the Tribal Outpost concept will have minimal change for maximum value. Since Toms already possesses storefronts in most major cities in North America, as well as several stores worldwide, there will only be a need for converting the stores into the new concept stores, as explained later on in the report.

WHAT IF PEOPLE DON’T SUPPORT THE CHANGES?

Even though the concept is derived from data maps based on the desires of the Toms consumer, along with current trends, there is never certainty in success or support. For this reason, the implementation of the concept will be gradual, starting with one store to see the reaction of the consumers. Once the success and positive reactions are registered, the full implementation will proceed for all stores.

HOW WILL PEOPLE LEARN ABOUT THE NEW CONCEPTS?

The concept will be aligned with a marketing campaign that will promote the changes. While Toms does not use celebrity endorsements, the usage of social media for sharing and spreading the campaign can easily have the same, if not greater effect. Existing members of the Tribe will receive notifications with potential special offers, opening pre-sales, and other exclusive rewards as incentives to participate in the new era of retail shopping.

WILL THE CONCEPT AFFECT TOMS IN A NEGATIVE WAY? As previously stated, the concept comes through deep research on the Toms demographic, defined values, and brand potential. This minimizes the risk of failure, as well as the risk of a negative reaction. While it is impossible to say the concept will succeed for sure, it is very likely, based on all the empirical data, the trend research, and the growing global market demographics for Toms.

WHAT IF THE CONCEPT CANNOT BE IMPLEMENTED FULLY?

This concept idea is based around the global demographic shift, and the creation of a new customer service experience. While there are many factors to account for, the concept will be implemented in a timeline of goals, and the combination will be organized into a realistic goal of a two-year implementation plan. Starting with the pilot store, the success will be judged

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12/5/2017 by a positive reaction by the public, as well as the achievement of the goal of shortening the customer experience journey, the value retention in the experience, and also the increased brand awareness. Once any revisions are made, the global implementation of the concept will take place, thus starting a new era of retail shopping.

If it were not able to be fully implemented, either because of a lack of support, or a non-existent market for the experience based on the local culture, it would still be acceptable. The partial implementation will still be considered a success as some areas are just not ready for the radical shift.

The potential development of these areas can be re-assessed in the future to see if it is suitable for the change then.

WHO WILL HAVE TO SUPPORT THIS CONCEPT FOR ITS SUCCESS TO BE POSSIBLE? The support will have to be from all the Toms stakeholders. Those implementing this will have to believe in its potential, and the consumers will have to accept the change as a betterment of their own shopping experience.

CONCEPT IMPLEMENTATION What is the concept:

The Tribal Outpost Revitalization is based on the trend of Simple-Demand Integration on the existing Tribal Outpost retail locations by Toms. The trend focuses on shortening the customer experience through using simple interactions to satisfy the on-demand culture through the integration of technology and different applications. It will be using a membership based program that will give members access to all stores. By being a membership exclusive store, a line-free checkout is possible with the help of app-based purchasing. This will shift the focus away from selling a product to a consumer and waiting in line, to a purely experiential shopping experience that satisfies the on-demand behavior.

Membership:

The use of a membership is not unheard-of, with successful examples including Costco and MEC. By being semi-exclusive, members will feel a sense of belonging, which is desirable, as seen in the data map. In addition to the sense of belonging, the membership will be a good way to keep consumers notified about any current news, updates on charitable acts, as well as any

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12/5/2017 promotions. The projected membership will be a one time charge that will create the account, set up payment options, and create a personalized profile that has all the preferences, sizing, and interests. Not only will doing so evoke a sense of importance, but the customer experience will remove the need to find the right size, and the uncertainty that brings. As already stated, this membership will work for all Tribal Outposts, and once the member enters the store, their information is automatically loaded onto the store directory so that sales representatives are able to greet them personally, as well as guide them to exactly what they desire. By doing so, the awkward interaction is taken away since both parties are acquainted and belong to the same “club”.

In use:

This will be further examined in the scenarios afterwards. The consumer enters the store, and at once, is detected by the system, and greeted by a sales representative. After being shown exactly what is desired, the consumer simply walks out with the new products. Other uses include pre-ordering online for in-store pickup, or even finding the items while on the way to the store, and getting them as they enter. This will not only speed up the process, but also increase efficiency and heighten the customer experience journey.

Implementation:

As already stated, the concept will start with one pilot store, with the chosen location of the flagship Venice, California store. This is for several reasons; firstly, the demographic of Venice is ideal for the chosen demographic of this new opportunity. The younger “hip” crowd that is socially conscious is exactly what Toms is targeting in this new concept. Also, for this age demographic, learning and the utilization of innovative technology will be much easier, and so it would be good for revising any small kinks for the global implementation.

TECHNOLOGY:

With the idea of minimal cost, maximum effect in mind, the usage of a phone application along with the built-in NFC of the smartphone will be used for identifying the member. While sophisticated facial recognition software is available, the cost, privacy/security issues, as well as the sheer hassle just don’t seem to justify the minimal convenience created. Other technologies include cloud storage for the database for the member data on preferences and sizing. With this data, algorithms can create suggestions on potential

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12/5/2017 other interested products for the member, along with any special coupons and deals specifically generated for the member.

Because all technology is already existent, this makes the concept much more conceivable in a short amount of time, and cost efficient to implement.

USER SCENARIOS By looking at user scenarios, a greater understanding is gained of the concept, particularly from the user’s perspective. Through illustrating first the current user scenario, and then several scenarios based on the suggested concept, the contrast will show the shortened and more efficient user experience journey, beneficial for both the brand, and the consumer.

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CURRENT USER JOURNEY USER SCENARIO #1 USER SCENARIO #2 USER SCENARIO #3 USER SCENARIO #4

CURRENT USER JOURNEY:

Consumer enters store, looks around aimlessly not knowing what is what.

After walking around puzzled for a few minutes, a sales representative of Toms walks over and greets the customer. Getting past the awkward getting to know the customer, the staff member helps choose the correct size and style and brings it to the customer. They then proceed to the checkout, and wait in line to pay. After waiting for a while, the customer pays, and leaves with the new Toms product.

USER SCENARIO #1: ALI THE SHOPAHOLIC

Ali is a shopaholic on a shopping spree. Having already visited other competitors stores and left empty handed and disappointed for the lack of right sizing for her rather large feet, she looks at her Toms mobile app and starts browsing as she enjoys her afternoon half-sweet one-pump soy latte.

She scrolls through the catalogue and sees several printed patterns of Toms shoes she instantly falls in love with, and while on the page, reads about all the charitable work that occurs as she makes the purchase, and at once, decides to visit the Toms Tribal Outpost. She taps her phone on the NFC reader by the door, and is greeted almost instantaneously by a staff member

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12/5/2017 ready to help her. Already aware of her previous browsing, the sales representative guides Ali to the items she already knew she wanted, as well as several similar products, as suggested by the algorithms of the system.

Pleased with all of the suggestions, the shopaholic decides to get all of the shoes since she knew it would not only satisfy her desire to spend, but also that it would help those in need. Feeling good about herself for being “charitable,� she gets the correct size from the salesperson, and simply walks out and taps her phone on the NFC reader, charging her account directly. Ali leaves being satisfied with her purchases, and the salesperson is already able to get ready to help the next member.

SCENARIO #2: HAROLD THE BANKER

Harold is a banker that enjoys going to the neighborhood hotdog stand for lunch. He is in a hurry as he only has forty-five minutes for his lunch break.

One day, Harold forgets to get a gift for his niece for her bat mitzvah. He quickly logs into his Toms account and sees that he is only eight minutes away from the closest Tribal Outpost and on the way to his hotdog vendor.

He immediately scrolls through the catalogue and finds something suitable, a little backpack. He pre-pays on his account, and heads over to the store. He taps his phone on the NFC reader, and a staff member approaches him with his purchase, and he is on his way to the hotdog stand.

SCENARIO #3: LAURA THE FASHION GURU

Laura runs a social media account that focusses on style and DIY crafts. She posts her outfits everyday on Instagram and enjoys sharing tips and tricks for styling her clothing. She has to constantly scour for new clothing options, prints, and different pieces. Being a member of Toms Tribe, she is able to connect with other members, as well as receive the latest updates on new prints and shoe styles. Having received a notification for a new release of designs, she heads over to her nearest Toms Tribal Outpost. She taps her phone on the reader, and a sales representative comes over to greet her.

Having looked at her previous purchase history, the staff knows that Laura is here for the new styles, and directs her to that section. Having promoted the new lines, Laura decides to purchase several pairs of shoes, as well as a few bags that she thinks will go perfect with her summer looks. She receives the correct sizes, and is able to walk out of the store without having to bump into too many followers. Now, she is able to continue posting more outfits and new looks!

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SCENARIO #4: EDDIE THE UNIVERSITY ACTIVIST

Eddie goes to University of California, Davis and is largely involved with oncampus activist groups that raise awareness for underpaid workers overseas, as well as several charity organizations. He is introduced to Toms through a university friend and they go together. Upon understanding more about the brand, Eddie is encouraged to sign up. He goes through the sign up process, gets an introduction to the company and is all ready to start becoming part of the Toms Tribe. He finds several pairs of shoes that fit his style, and pleasantly finds that it is still in his college budget. He receives the correct size as newly inputted from the account creation, taps his phone on the NFC reader, and leaves a satisfied Tribe member.

STRATEGIC SCENARIOS Analysis of strategic scenarios will provide a complete report of “what-if’s” for the concept. The process will be based on finding identifying any big shifts that can affect the proposed concept, followed by any uncertainties, and from this, create scenarios that can be assessed.

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DRIVING FORCES IN THE FUTURE RESULTING UNCERTAINTIES SCENARIO #1 SCENARIO #2 SCENARIO #3 SCENARIO #4 ASSESSMENT OF SCENARIOS

DRIVING FORCES IN THE FUTURE:

While there are many potential candidates that can be discussed for this, technology is the most prominent. With a society that is shifting away from physical interactions into virtual, online, or alternate reality, this can be a potential problem for a concept that is based around a physical storefront.

The usage of tech has brought the global community to new levels of closeness, especially in the marketplace.

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RESULTING UNCERTAINTIES:

Stemming from this are problems such as a lack of motivation for people to go out to shop, finding alternatives to buying in physical store (online), or finding an alternative that is cheaper (Alibaba). In addition, the usage of these online sites means that people can now purchase something from the other side of the Earth, meaning that a new plethora of options is available.

SCENARIO #1: EASY TO SHOP ONLINE

With the growing market for sites like Amazon and Ebay, more and more people are choosing to stay in the comfort of their own home to shop for whatever they need, whether it is a book, groceries, or clothing. With new features like Amazon Dash and One-click purchase, this will encourage and release a lethargic behavior in society.

SCENARIO #2: ACCESSIBLE FAKES

Growing sites like Wish and Alibaba sell directly from manufacturers and are branded as knockoffs of lower quality. The popularity of this is rising as the similarities are so great that most people cannot tell the difference, and so opting for the lower priced one sounds obvious.

SCENARIO #3: LACK OF MOTIVATION FOR BUYING AUTHENTIC VERSION

With lower price, and decent accessibility, it is hard to find reasons to buy the authentic version, especially when it takes more effort to do so. Traditional retail stores are often a hassle to go to, having to wait in lines, being in crowds of people, and lugging around the purchased items. In comparison, these cheaper alternatives are often shipped overseas right to your doorstep, meaning no need to wrestle people in line, no need to carry around bags of shopped goods, and so on.

SCENARIO #4: CHOOSING GLOBAL ALTERNATIVES

Availability of previously exclusive to certain areas of the world brands are now made available through global marketplace sites such as Ebay, Rakuten, and Amazon. With new brands in competition for the same market, it is suddenly much harder to create a loyal customer base.

ASSESSMENT OF SCENARIOS

With a clear shift towards low-interaction online shopping, the retail sector is in need for change. No longer is the store simply selling a product (same one available online), they must sell an experience. There must be a creation of

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12/5/2017 value towards the physical interaction present in a store that differentiates from online retail. The Tribal Outpost concept does exactly this. Toms will continue to have an online store that ships to the customers home, yet the experience of getting received the moment you walk in and tap your phone onto the reader, the experience of people understanding and knowing exactly what you need or are looking for, the experience of receiving the product “ondemand”, these characteristics are all irreplaceable by future driving forces.

In addition, the scenarios that deal with authenticity and cheaper alternatives, I believe that the brand values are also a very important part when people buy from Toms. The “One for One” campaign is a great incentive for people to spend money, as mentioned before as “a feel-good purchase.” So when facing knockoffs, there are two main points for Toms that counter this.

Firstly, for those that care, they will buy the real, authentic product from Toms since they know they are receiving a product that will also aid those in need. And for those that are just wearing Toms for the fashion statement and have no morals or ethics, the experience outlined above is the reason for why they should purchase from Toms. Not only are they receiving a product, but also a full experience, as drawn above in the user scenarios.

CONCLUSION Utilizing the trend of Simple-Demand Integration, the concept of revitalizing the Toms Tribal Outpost, focusing on shortening the customer experience journey. The concept uses a membership system to create a personalized shopping experience, and through the elimination of checkouts and looking for the right size, the focus instead is on the actual shopping experience. So not only is efficiency increased, the sense of belonging, as well as behaviors of “a feel-good purchase” and “on-demand” are satisfied. Through looking at user and strategic scenarios, a greater understanding from the consumers perspective, as well as any potential struggles that may occur to the concept due to external factors. Through the implementation of the concept, Toms will be able to create new value in an age of value-less knockoffs, establish a greater brand presence, and also expand the Tribe demographic. And by doing so, Toms will be able to create more opportunities for the future.

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