Professional Documents
Culture Documents
By-Abivandya Anil Anoushka Chauhan
By-Abivandya Anil Anoushka Chauhan
By-Abivandya Anil Anoushka Chauhan
ANOUSHKA CHAUHAN
Company Introduction
TOMS is a globally recognized compa-
ny that sells women’s, men’s, and chil-
dren’s shoes and eye- wear. TOMS is
just not another shoe company though,
for every pair of shoes or eyewear it sells
it donates a pair of shoes or eyewear to
a child in need in a third world coun-
try. It all started in 2006 when company
founder Blake Mycoskie traveled to a
village in Argentina and saw that none
of the children had shoes. So he created
TOMS with the vision that for every
pair bought he would donate one to
a child in need. The motto for TOMS
is one for one which clearly states the
purpose of the company. TOMS sup-
plies five different kinds of shoes for
men, women, and children. They also
supply eyewear for men and women.
In terms of breadth and depth TOMS
focuses more on depth because it only
offers two products overall. By doing
this TOMS is able to immerse itself into
its specific product category.
Blake Mycoskie
Company History
Blake Mycoskie visited Argentina in 2002 while competing in the second season of The
Amazing Race with his sister.He returned on vacation in January 2006, and met a woman
who was volunteering to deliver shoes to children. Mycoskie offered to help and has cited
the shoe distribution experience, and the many shoeless children he encountered, as the
birth of his idea for his eventual company.
He decided to develop a type of alpargata (a simple canvas slip-on shoe that is popu- lar in
Argentina)for the North American market, with the goal of providing a new pair of free
shoes to youth of Argentina and other developing nations for every pair sold.According to
Mycoskie, Bill Gates encouraged him by saying that the lack of shoes was a major contrib-
utor to diseases in children.
Upon returning to the U.S., Mycoskie sold the online driver education company that he
was running for $500,000 to finance Toms Shoes.
The company name is derived from the word “tomorrow,”and evolved from the origi- nal
concept, “Shoes for Tomorrow Project.” Mycoskie initially commissioned Argen- tine
shoe manufacturers to make 250 pairs of shoes. Sales officially began in May 2006.After
an article ran in the Los Angeles Times, the company received order requests for nine
times the available stock online, and 10,000 pairs were sold in the first year. The first batch
of 10,000 free shoes were distributed in October 2006 to Argentine children.
In 2007, the company launched its first annual “One Day Without Shoes” event, which
encouraged participants to go shoeless for one day in order to raise awareness about the
impact shoes can have on a child’s life. The event has had corporate spon- sors such as
AOL, Flickr, and the Discovery Channel.
In October 2007, Toms Shoes received the People’s Design Award, as determined by an
online popularity contest by the Cooper-Hewitt, National Design Museum
By 2011, over 500 retailers carried the brand globally and in the same year, Toms launched
its eyewear line.By 2012 over two million pairs of new shoes had been given to children in
developing countries around the world. The Daniels Fund Ethics Initia- tive at the Univer-
sity of New Mexico has described the company as an example of social entrepreneurship.
The company launched TOMS Roasting Co. in 2014, and with each purchase of TOMS
Roasting Co. coffee, the company works with other organizations to provide 140 liters of
safe water (equal to a one week supply) to a family in need that lives in a coffee- producing
region. In 2015, TOMS Bag Collection was launched to help contribute to advancements
in maternal health. Purchases of TOMS Bags help provide training for skilled birth atten-
dants and distribute birth kits containing items that help women practice safe childbirth.
“One for One”
Toms’ business model is known as the “one for all con-
cept” model, which is referring to the company’s prom- ise to deliv-
er a pair of free shoes to a child in need for every sale of their retail
product.TToms responded to this criticism by moving 40% of its
supply chain for shoe donation to countries they actively give in.
Toms pres- ently manufactures shoes in Kenya, India, Ethiopia and
Haiti.
According to the “one for one” campaign put forth by Toms, they
will match each shoe sold and donate them to impoverished societ-
ies or those in need. Although Toms intentions are amiable, some of
their actions car- ried out may have a negative impact on the locals
receiving the aid.
Shoe donations made by Toms help fight foot disease like Podoco-
niosis, however, the shoe offerings often take away from local shoe
businesses. The donations may save lives in the short run, but will
eventually cause the demise of others, as shoe shops run dry and
income becomes scarce. In retrospect, the concept is great, howbeit
the “one for one” strategy could use some revi- sions; some short
term and some long term.
A free Toms flag which is provided by Toms during a purchase of
their shoes.
Though locals would favor for immediate shoe offer- ings, it would
be advantageous in the long run for Toms to establish a link be-
tween local shoe shops and their company. Personally, I think Toms
should continue their “one for one” business model with slight re-
visions and variations. Toms should use their model and provide
raw shoe materials, with little assembly required, to the shoe shops
and get the workers to construct the final product. By paying the
local shoe shops owners the sum of money saved from producing
the shoes in a Toms factory, there would be no loss in profit directly
to Toms. Instead, the act will generate more income in the society
while creating employment and fighting foot diseases.
Toms Shoes could also use their profits to micro- finance small
businesses and/or provide education. Any of these actions will help
the little people of the world step up and make an immense impact
“One Day Without Shoes”
In 2007, Toms introduced their One Day Without Shoes campaign. In this, they chal- lenged
the world to go for one day without shoes to spread awareness for the 300 million kids around
the world who have no other choice to rough the streets barefoot day by day. These kids are
vulnerable to infection and often fall ill and are unable to attend school or do anything else.
This campaign gained widespread popularity worldwide. There were 3,000+ events held in
over 50 companies such as Japan, Canada, Philippines, New Zealand, Greece and many oth-
ers. 500+ campuses partici- pated from all 50 US states. The hashtag #WithoutShoes trended
on twitter. Celebri- ties from all over the world were also promoting TOMS and the move-
ment. The move- ment became more and more popular year after year from 2007-2014. Fi-
nally, in 2015, TOMS took the One Day Without Shoes Campaign to a whole new level. They
were interested in turning the awareness they were spreading into actual donations that could
make a real difference. So, they implemented a new strategy. In 2015, from May 5th- May
21st, TOMS challenged the masses to go barefoot for one day, insta- gram a picture of it with
the hashtag #WithoutShoes. Celebrities such as P!nk, Jeff Bridges, and James McVey all par-
ticipated in the event and helped spread aware- ness. This campaign ended up contributing a
new pair of more than 265,000 shoes to kids in need in the developing world. On Facebook,
over 21 thousand interactions were made about One Day without Shoes.
Evaluation
TOMS did an excellent job in performing this campaign. Not only are they marketing their
product and getting their brand exposure, they are also helping children in need in doing so.
The campaign is so great that they’ve done it every year since 2007, and with each year, more
and more people participate. TOMS, as a whole company, is fantastic in how they go about
their work. With already giving a shoe to a child in need each time someone makes a pur-
chase of a pair, it’s hard to believe TOMS can do more. But with this project, it helps increase
publicity and awareness for the topic, without striving away from it’s original message. All in
all, the TOMS One Day Without Shoes campaign is a complete success and it will continue to
be. With helping give impoverished children all over the world a pair of shoes, it also brings
communities and people together as essentially ONE.
Micro-Environment
The company has a a laid back and low key man- agement approach, Blake attributes this to
having strong management team. The entire company from its founder to the employees are
out on the field staying in touch with the communities, this enables the company to meet its
goal of running a for profit business that will sustain its philan- thropic venture.
Suppliers- are requires to certify that the materials used in the production are obtained in
accordance to the company’s social responsibil- ity in all operations. With natural, organic
and Vegan material. Tom’s also ensures that suppliers produce the entire production is in ac-
cordance with all applicable laws in the countries they do business in. The suppliers must also
comply with Tom’s policies including the prevention of slavery and human trafficking within
the supply chain.
Marketing Intermediaries - shoes are available in over 30 coun- tries. they are avail-
able for purchase at Nordstroms, Urban Outfitters and small retail stores as well as web base
stores. Toms now has 2 flagship stores one in Austin Texas and Venice Italy. The manufactur-
ing companies are in Ethiopia, China and Argentina.
Publics:
Financial: The company is privately owned.
Media - the company has no marketing budget and relies on word of mouth and social media.
General: responds well to social consumerism and social media. Toms has a very involved
customer base. The company keeps them well informed. They help fund philanthropic ven-
tures. since the initial research they have started “coffee for you water for all.
Macro-Environment
Demographic:
socially responsible consumer men and woman and children
Economic:
the shoes range in price from $40-$60, the consumers don’t tend to mind the price.
The idea that others are benefiting from the purchase of a good is motivation enough for
some to be willing to part with their discretionary income
The company is showing growth- they are expanding their product line and are involved dif-
ferent philanthropic ventures
Technology:
The company relies on social media sites and company blog for marketing and inter-
action with the public.
Social Culture:
Toms has a positive image and relationship with consumers because it has demon- strated
great social responsibility as a company
Natural Environment:
They ensure that all aspects of production use natural or organic materials
Political:
There are those who believe that the action of giving in impoverished communities
creates an economic stagnation by reducing the communities’ innate desire to become self
sufficient and productive but for toms there is no foreseen political issues as of now.
SWOT Analysis
Strengths
-“One for One” campaign is great, it
provides a product that is useful, afford- able and for each piece of product sold someone in need gets a bene-
fit. The philanthropic business venture is strong.
-Toms responds well to criticism
-Toms dedication to philanthropic ven- tures by helping and identifying areas where there may be needs and
actually encourage others to start acting on compassion shows the company’s desire to be in the business of
giving back while running a profitable busi- ness.
-Tom’s target market is adequately tar- geted the generation identifies with being socially responsible.
-The Companies constant communica- tion with the consumer through social media has proven that their
lack of mar- keting budget is not an issue. It means more money spent on philanthropic ven- tures.
-The shoes are available at different retail stores, including two flag ship stores, but predominantly they rely
on web-base sales and ship the merchan- dise for free.
Opportunities
-Because there will always be a need for
philanthropic ventures and Toms has done such an amazing job at identifying niche products and adapting
there prod- uct line accordingly they have opportu- nities to grow.
With the strong web-base sales and continued communication with the con- sumers they have the potential
to reach international markets and expand.
Weaknesses
-The need for a marketing budget, it would
not hurt if they dedicated money to adver- tising it would give them more exposure and create awareness of
the product.
-The Materials used in production are mostly natural, organic and Toms demands that their supplier use this
in the produc- tion of the shoes. This would be an issue if for some reason the producers had limited access of
the materials affecting the pro- duction process and profits.
- Other products available on the market are similar to the Toms products.
-Price of shoe
-Quality and Protection
-Ineffectiveness of one for one
-Selling false positivity to customers (charitable giving could be more effective)
Threats
-Strong criticism has led some to have a
strong opposition to Toms business strat- egy. There are those who believe that the money spent on the shoes
could be put to better use. A negative image can hinder the work Toms is trying to accomplish.
-Allegations the one for one program is religiously biased
-Tanking economy in relation to prices
-Lack of TV presence
Weaknesses as Opportunities
Weakness are define in marketing as areas that need improvement. Something can definitely
both a weakness and an opportunity. One example would be TOMS lim- ited product line
when the company first came out. They only had one style of shoe now known as the “clas-
sic” style. This was a weakness for the company because in comparison with more established
brands like Sketchers they did not have as many products or as much diversity. TOMS turned
this into an opportunity by creat- ing more styles of shoes for its customers and therefore cre-
ating more product diversity.
Target Audience
The target audience is young creative trend setters who are socially aware or are interested
in becoming social active.This is really important because they are socially aware and
willing to spread the message of TOMS Shoes, thus they will help support the mission
statement.Thanks to its huge amount of followers, especially on Twitter, TOMS has a
great pool of social activists who share the company’s values and spirit.
-Primary: college students, 19 to 24 years old, both males and females. Trend setters,
socially active. Express individuality through sports, drawing, music, dance or charity
work.
-Secondary: high school students, 14-18, both males and females. Trend setters.
Important to spread message of TOMS and pass on trend to others.
Mission and organizational objec-
tives of TOMS
Mission
Mission statements are essential to any company because they are meant to guide the business activity and
ensure that every aspect of the business a single mission. This is extremely important because it assists in the
decision making pro- cess, creates a uniform, organized business, and ensures a clear image.
For TOMS Shoes, this mission statement, which you will find throughout the whole company’s struture, its
spirit and its goals, is:
Organizational objectives
The following assesses how successfully TOMS’ objectives flow from its mission statement:
Aims/goals:
The goal of TOMS Shoes is to donate shoes (also eye wear since 2011) to children and people in need around
the world, specifically in Argentina, Ethiopia, Nepal and more than 40 other countries. TOMS had given
away over one million pairs of shoes by September 2010. Clearly this goal directly follows the mission state-
ment of TOMS, and based on the numbers, it seems that TOMS is successfully living out this goal.
Social Responsibility:
Another important objective of any business is its social responsibility. TOMS capitalizes on this area, using
their social
and ethical objectives as a marketing technique:
“When you incorporate giving into your business, your customers become your mar- keters,” Mycoskie men-
tioned once. TOMS Shoes has been a great archetype
of a profitable company with a social agenda sewn right into the thread of its busi- ness model. Customers
have latched on to the company and its mission and have done more for the brand than any advertising cam-
paign ever could. This fits their mission statement,
since the entire mission is socially and ethically driven.
Methodology
Below are the three pillars of TOMS’ strat-
egy: charity, participation, and individual- ity:
Charity
Socially conscious brands have seen a steady
growth over the last decade.
Up until now, consumers’ interaction with cor-
porate charity was a beneficial calculation.
The nonprofit sector and corporate phi- lan-
thropy departments are
traditionally separated from the profit side
of business. A growing part of the economy Participation
is responding to increasing demands to inte-
grate charity into product lines. TOMS uses TOMS, like many modern busi- nesses, has a
cause-integration; positive social change is tiedsolid social media following: more than
to the 500.000 twitter follower, 280,000 Facebook
profit motive. Research has proven that cus- fan page, and a lot of user-generated content is
tomers will rather choose a company that provided through- out YouTube. So, in addi-
supports a cause than another com- pany not tion to 24/7 online social media interaction,
focussing on that. TOMS’ fans get to participate in an annual
“One Day Without Shoes move- ment”. An es-
In addition to Third World shoe drops, TOMS timated 250.000 people went food-commando
shoes are made from hemp and recycled bot- to understand the misery of shoe-less children,
tle parts, mandate fair wages and sound labor joining with countless high-profile celebrities.
conditions from oversees manufactures, and
even have a line of vegan-friendly shoes.
Risk Management- TOMS shoes
TOMS shoes’ Enterprise Risk Management (ERM):
Due to my research for this blog I came to the conclusion that TOMS shoes com- pany
does not possess such ERM yet.
This might be the reason of TOMS shoes’ young history in doing business. The com- pany
was found in 2006.
However, I created a draft plan that highlights key events and actions that TOMS shoes
company should consider in starting an ERM initiative. The draft is not intended to be viewed
as a complete plan;
furthermore,I believe it reflects useful information as a basis to start the ERM initia- tive for
TOMS shoes company within 7 carefully described steps:
ERM initiative:
Thus, those are the three most significant risks/problems TOMS shoes has to face by now:
Better understand the problem: The Toms website points out that those children without
shoes are at risk of contracting hook worms and suffering from other debilitating injuries and
diseases. But a new pair of shoes alone will not eradicate hookworm or protect thousands
living in landfills from harm. Toms needs to find out what will. There are surely more cost-ef-
fective, enduring solu- tions that will help those in need not only cover their feet, but also be
able to afford shoes and other necessities that improve quality of life in the long term.
Create a solution, not a band-aid: Toms has donated more than 1 million shoes to date. But to
what end? Rather than asking “How many shoes can we give away?” Toms should be trying to
figure out “How many lives can we change?” One statistic cited by the company is that there
are 30,000 people living in one landfill in the Philippines. For these individuals and families, a
free pair of cloth shoes is nice, but bare feet may be the least of many challenges they face on a
day-to-day basis, none of which will be resolved by a pair of Toms. It’s the difference between
a quick-fix and a cure.
Innovate business models, not marketing campaigns: The buy-one, give-onemodel is clev-
er, simple, and consumer-friendly. But the real impact of busi- nessoften comes behind the
scenes and without the sheen of a marketing campaign. Toms should ask: How can we use
the whole of our business--including our jobs, our supply chain, our market penetration--to
make a difference? Oliberté Shoes company, for instance, is really on to something with
their approach, in which they manufacture shoes in developing countries and provide an
economic boost where it’s needed most.