Value Proposition

TOMS offer a simple, yet very meaningful cause behind their shoe business. With every purchase made, a donation of a pair of shoes goes to a child in need in another country. This concept provides customers the opportunity to make a personal contribution while receiving something in return. TOMS implements a push strategy where they 'push' their business concept and product towards the consumer, forecasting a demand for the product. TOMS mission is to transform everyday purchases into a force for good around the world.  When you buy a pair of TOMS Shoes, you're also helping to improve the health, education and well-being of a child. The company's ultimate vision is to create a better tomorrow by taking compassionate action today. 

Positioning of TOMS

In 2006, TOMS Shoes founder Blake Mycoskie and five interns started TOMS in a small apartment in Venice Beach, California with one goal in mind - to give shoes to children in need.

After six years of establishment,TOMS has finally opened their very first retail store and community space in Venice, California. Inhabiting a Craftsman-style cottage, the 2,200 square-foot indoor-outdoor space feels and looks like a comfortable college coffee house. Not only is the store a place to sell their shoes, but also a community space where anyone can come in to purchase coffee and snacks, lounge around on their couches, enjoy free Wi-fi, read a few books, or even lounge out in their backyard where provided is a fire pit for nonprofit groups.

The TOMS flagship store certainly reflects much of what is seen visually on their online retail store. Their aesthetics stay true to heart and their message of giving back translates openly in their actual brick and mortar store. By improving people's lives, they wanted to create a community space where everyone can enjoy while embracing the products and the message behind it all. A full range of TOMS products is available, including men's, women's and children's shoes and boots, sunglasses, t-shirts and sweat shirts, and leather-bound TOMS journals. All price points in the brick and mortar store remain the same as what is listed on the official TOMS website. ($20-$100+)

The differentiation between the online store and the actual brick and mortar store is that customers can visually understand the aesthetics represented from TOMS online store; however, they cannot fully grasp the feeling of its nature and design unless they visit their actual store to experience the atmosphere.

Citations:

"Venice Flagship Store." TOMS Abbot Kinney Store in Venice. TOMS, n.d. Web. 22 Apr. 2013. <http://www.toms.com/venice-flagship-store>.

Moore, Booth. "Toms Shoes: A Venice Shoe-In." LA Times. LA Times, 23 Dec. 2012. Web. 22 Apr. 2013. <http://touch.latimes.com/>.

Brand Awareness

In 2006, Blake Mycoskie founded TOMS - short for a better tomorrow. Mycoskie was inspired by a trip to Argentina where he witnessed extreme poverty, poor health conditions, and children walking without shoes. During his trip he discovered the alpargata shoe, which was quite simple and typically used by farmers of Argentina. Soon after, Mycoskie redesigned the shoe to introduce it to the U.S. market. It became his solution to show how together, we can create a better tomorrow by taking compassionate action today.  

Target Market:

TOMS segments both suburban and urban environments. The shoes are stylish on the streets of New York City or even great for a casual walk through the park. TOMS target men, women, and children who are style and environmentally conscious. Their target market has middle to high paying incomes and can come from various occupational levels. They are media savvy, actively involved with social issues, and are willing to pay extra to contribute in making a difference. 

Branding/Packaging:

The TOMS logo is very simple and straight to the point. It was inspired by the origin of the company's discovery, which the logo reflects the Argentinian flag. The design and color is simple and makes it easily recognizable by many.  

TOMS does a great job in packaging their products using eco-friendly and recycled materials, staying true to their aesthetics and environmental values.

Inside each shoe box, customers will find their TOMS placed inside a TOMS canvas bag along with a letter from Blake and a TOMS sticker.

Aesthetics

TOMS offer trendy shoes made from various vegan friendly and sustainable materials, giving the customer a 'feel-good' attitude when purchasing their shoes for a good cause. TOMS customers enjoy the natural feeling that TOMS embraces in their products and throughout their online retail store. The products are captured in clean and clear images, and as for other visuals within the site, they translate vibrant optimism and the genuine desire in making a difference in the world.

TOMS offer many ways in which customers can get involved, making it more than just a shopping experience, but a shopping experience where they can make a personal contribution to a child in need.

The TOMS One for One blog that is offered through their website contains plenty of information for interested customers to engage in events, find out about TOMS latest news, learn more about what they can do, watch videos in relation to their cause or products, and other general information.

CRM Through Addressability & Memory

TOMS creates a relationship with the customer by implementing a log-in option. By logging onto TOMS as a member, customers can access to their history of orders and returns, addresses, check gift card balances,  track order statuses, create wishlists for future purchases, and even communicate with customer service for any questions.

Suggested Improvement:
In each customer's Account Summary, there could be an additional option under the category that suggests similar styles and color shoes based off previous purchases to stimulate more encouragement to future purchases. When a customer clicks the option, there could be thumbnails of the styles for the customer to view and select the item; directing them right to its main page. This could ultimately push for more interest and sales overall.

Best In Class: Interactivity

TOMS provide interactive help and other options for customers to enhance their shopping experience. You can call, have a live chat, send a message, or even send a tweet through Twitter.

TOMS is Best in Class for the many ways in which they reach out to their audience. Another way in which TOMS interacts with customers is through their mobile app which is free to download. Within their app, they provide great functions such as shopping through their online store from your phone, virtually try on their eyewear, videos about their One for One Movement, and a forum in which fans and customers can post up comments and pictures about their shoes or eyewear. The mobile app has features that keep their fans and customers updated to new styles, trends and inspirations, events, news, and other related information.


Another part of their website also features a "How We Wear Them" page where fans can upload and share their favorite TOMS photos together. This is a great strategy in bringing everyone together to interact as a TOMS community.

Being that they're Best in Class, TOMS even offers a 100% Happiness Guarantee which they encourage customers to talk to them about any questions they may have, concerns, or issues with their order. The TOMS team is ready to assist any customer to guarantee their happiness!

Control

Customers can filter what they want to see when shopping from style, size, color, price, and a sort by option. A search option box is also placed at the top right side of the website, allowing customers to find what they want by entering in the search with a specific color, style, or product. This enhances the customer's shopping experience as it creates an easier way to navigate the website and caters to their convenience. Shoppers will be able to find what they want specifically on the website with these simple and easy tools.

Another great option in which the customer can control is the "Find Your Perfect Fit" tool. By clicking on "Shoe Me How It Fits" button on the page in which you viewed the shoe, you can fill in 3 simple steps to find out whether or not the shoe fits right for you.

Accessability

Customers can roll their mouse over "OUR MOVEMENT" at the top of the website to read more about the company's movement, blog, programs, and much more in how to get involved. There are also many social media options provided at the bottom of the website page for customers to access further information.

Digitalization

Every TOMS shoe featured on the website has a high-quality zoom-in function that enables customers to see every detail of the shoe to determine whether they like it or not. Customers may zoom into any photo provided of the product. 

Suggested Improvement:

TOMS could introduce and implement the 360 degree feature where customers could select the product and easily move it to any angle view they desire. This in turn could boost sales and customer understanding and interest in the product. 

TOMS also offers eyewear. For every eyewear piece you purchase, you help give sight to a person in need. Here you have the option to "virtually" try on a pair of eyewear either by uploading a portrait of yourself or using your webcam for a live virtual fit-session.

Security: Prevention of Fraud & Ethics

TOMS provides an easy, safe, and worry-free shopping experience on their website. In guaranteeing that your order and credit card information are safe and secure, their servers use Secure Sockets Layer (SSL), an advanced encryption technology that works with Microsoft Internet Explorer, Netscape Navigator, and AOL, and the site's security has been tested and verified by McAfee Secure Sign.

TOMS does not collect any personal information about their customers except when customers specifically and knowingly provide them. Examples of such information are name, shopping and billing addresses, phone number, email address, credit card information and customer preferences data. TOMS does not dell or rent information about their customers and all information provided to TOMS remains absolutely confidential.

Ethics: 

Corporate Responsibility at TOMS provides focus on the environmental and social impacts of their products and operations, responsibly giving and employee life. They offer their shoes in sustainable and vegan materials that include natural hemp, organic cotton, and/or recycled polyester. 

As for their factories overseas in China, Argentina, and Ethiopia, TOMS has hired a global staff for their global supply chain in actively managing and overseeing their suppliers and vendors to ensure that their corporate responsibility standards are upheld. 

TOMS invest in their employees in many ways such as providing training and education. They also provide many benefits as well that include Medical, Vision, Dental, Long Term Disability, Life Insurance and AD&D, Healthcare and Dependent Care Flexible Spending Accounts, Employee Assistance Program, Paid Family Leave, and 401(k).  

Citations:

"TOMS Corporate Responsibility." Corporate Responsibility. TOMS, n.d. Web. 22 Apr. 2013. <http://www.toms.com/corporate-responsibility>.

"TOMS Privacy Policy." Privacy Policy. TOMS, n.d. Web. 22 Apr. 2013. <http://www.toms.com/privacy-policy>.

Globalization

TOMS does not ship internationally except for Australia. However, if a customer from Canada or the United Kingdom would like to place an order, they may do so by visiting the TOMS Canadian (toms.ca) and UK (toms.co.uk) sites. TOMS are also available throughout the world in various retail stores that carry the shoes. Customers can easily find the closest location to them by using TOMS Store Locator tool.

Innovative Feature

Not only does TOMS offer shoes, they also carry eyewear. With every pair you purchase, TOMS will help give sight to a person in need. 

To help customers get a better picture of what they may look like with any of the eyewear, TOMS has provided an innovative feature of a 'Virtual Try-On' page. Online shoppers may select and try on any pair of eyewear by turning on their webcam or uploading a portrait of themselves. The eyewear will pop up on the screen and may be manipulated to virtually fit with the shopper's face. 

After shoppers are satisfied with their look, they can save their picture and even send it to their friends and family members to see!

Plan of Action: Measuring Success

Key Performance Indicators (KPI's) for TOMS: 

1. Cost Per Transaction (CPT) is a measurement that reflects the amount of money that is spent on ad campaigns, Adwords, e-mails, and then divides that by the number of transactions over a given period. TOMS will need this to decide on an advertising budget and which types of promotional efforts are most effective in driving the most traffic to the TOMS website. This can potentially increase site visits and sales transactions.

2. Click Through Rate (CTR) keeps track of the number of clicks on an advertisement divided by the number of times an advertisement is shown. Using CTR, it can represent the effectiveness of TOMS email campaigns, ad placement, and other advertisement decisions.

3. Average Transaction Value (ATV) represents the average in which customers are spending at the time.  It measures the overall effectiveness of the website which include promotions that are currently running, availability of items that the customer is looking for, ease of navigation through the site, and further more. Using ATV can also help TOMS to easily indicate and manage areas that are lacking and need improvement.

4. Average Items In Basket (AIB) represents how many units are being purchased at a time per transaction. This is an important tool as it helps to indicate whether or not the TOMS site is suggesting items that go along with the item purchased or showing the items that other customers bought at the same time.

5. Checkout Abandonment Rate (CAR) is the percentage measured of people that start to checkout and then, for some reason, abandon their cart and leave the site. Therefore, with this tool, TOMS can track down which step of the process customers are leaving and figure out a solution to prevent it.

Citations:
Zotos, Dimitris. "20 KPIs You Should Monitor in Google Analytics." Web SEO Analytics. Web SEO, n.d. Web. 23 Apr. 2013. <http://www.webseoanalytics.com/blog/20-kpis-you-should-monitor-in-google-analytics/>.
Kaushik, Avinash. "Best Web Metrics / KPIs for a Small, Medium or Large Sized Business."Occams Razor by Avinash Kaushik. Avinash Kaushik, n.d. Web. 23 Apr. 2013. <http://www.kaushik.net/avinash/best-web-metrics-kpis-small-medium-large-business/>.

SWOT Analysis: Room for Improvement

Supply Chain

TOMS has opened manufacturing factories in China, Argentina, and Ethiopia, and plans to open another location in Brazil. These factories are audited by third parties to ensure that workers are being treated fairly. After goods are finished, they are sent to the warehouse in California.

The shoes are then distributed to consumers, retailers, and children in need. Over 500 retailers around the world carry TOMS shoe collections, and are able to purchase their bulk of shoes at cost from TOMS. Which in turn, are able to turn a profit as well as support the TOMS One for One Movement. All shoes that retailers purchase are directly shipped to the retailers as TOMS does not operate on a consignment basis.

After distributing the shoes to the consumers, TOMS collaborates with nonprofits to identify children in need.  TOMS work with multiple giving partners such as the Partners in Health to distribute shoes to children in Haiti. TOMS donates shoes to many children in countries that include Argentina, Guatemala, Rwanda, Zimbabwe, and many more. When shoes are distributed to the communities, they are referred to as Shoe Drops.


Suggested Improvement:
With TOMS' business growing at a fast pace, they could ultimately face problems with shipment and communication if they decide to expand their market into further more countries outside of the US. In which case, it may be wise to create a separate distribution center just for international orders. This improvement would offer more space, organization, and better communication between TOMS and international businesses.


Citation:
TOMS One for One Movement. Rep. Daniels Funds Ethnic Initiative University of Mexico, n.d. Web. <http://danielsethics.mgt.unm.edu/pdf/TOMS%20Case.pdf>.

Integrated Marketing Plan

As an eco-friendly company, working with an environmental activist only seems natural. TOMS will be working with Natalie Portman, actress and active supporter of the Nature Conservancy, a leading non-profit organization that works around the world to protect the environment, and the Foundation International Community Assistance (FINCA), a micro-finance organization that helps poor women around the world.

TOMS will collaborate with Natalie Portman in designing an exclusive TOMS 'Classics' shoe inspired by the FINCA logo. For every FINCA TOMS shoe bought, a generous percentage of the purchase will be donated to the foundation to help the poor women get back on their feet and into the workforce.

Here is an example of what the FINCA TOMS shoe will look like:

Not only will there be an exclusive TOMS shoe designed by Natalie Portman, but also an exclusive one-time opportunity to join her and the TOMS team on a Shoe Drop. (Shoe Drops are when the TOMS team, Giving Partners and volunteers travel to countries where their Shoe Giving Partners are to distribute the shoes to the children.)

There will be 3 lucky winners chosen to join this trip of a lifetime. Contestants will need to create a quick 1-minute video on YouTube explaining why they would like to do the Shoe Drop and what it truly means to them. After uploading their video, TOMS fans from around the world will be able to vote for their favorite contestant through the TOMS website. The final top 3 winners will later be announced on the homepage of TOMS website, TOMS Blog, TOMS Facebook Fan Page, and even TOMS Twitter! All TOMS fans may post comments or tweets about their favorite contestant videos on any social medias provided.


Here, founder Blake Mycoskie is pictured doing a Shoe Drop:

Advertorial:
As an actress and active supporter of non-profit organizations, Natalie Portman had also designed her own line of vegan designer shoes in 2008 with fashion firm Te Casan, which benefited The Nature Conservancy. Therefore, with past experience in the shoe industry, Portman would be ideal to write about her collaboration and Shoe Drop experience with TOMS. She will also share what she thinks about the products, styles and trends to inspire online shoppers on the TOMS Blog.

Citations:
Gerstein, Julie. "14 Celebrities Who Walk the Walk." The Daily Green. The Daily Green, Feb. 2011. Web. 23 Apr. 2013. <http://www.thedailygreen.com/environmental-news/latest/green-celebrities-actors-actresses-0323>.
Willard, Laura. "Hollywood Goes Green: Natalie Portman." Living RSS. Living RSS, 22 June 2011. Web. 23 Apr. 2013. <http://www.sheknows.com/living/articles/833703/hollywood-goes-green-natalie-portman>.