Aditya Anand 19P184

Anirudh Chauhan 19P186

Aarooshi Bansal 19P188
Priyam Dixit 19P209
Shefali Verma. 19P221
Vardaan Makhija 19P233
 • Paez is a summer casual footwear company
founded in Argentina in 2006 and
headquartered in Barcelona.
• The company manufactures a variety of
alpargatas, traditional Argentine canvas shoes

Case also known as espadrilles. 

• The shoes are sold mainly through its
Background wholesalers and distributors around the
world.
• The company is seeking to reposition itself to
compete against the well established first-
mover in the market, TOMS. 
 • To increase the brand’s retail footprint and
direct contact with customers:
In 2011, Paez opened its flagship stores in
Transitioning Buenos Aires & Barcelona
Explored avenues to open Paez-branded
from a Start- retail stores
Up to a Small Activated e-commerce sales on their
website
Company  • By 2015, the cofounders owned 76% of Paez;
the angel investors owned the remaining 24%
• Its competitor TOMS had strong presence in
UK and USA
• Europe was Paez’ home market, Portugal and
Spain together accounted for 64% of the
company’s European sales. 
SWOT ANALYSIS
 • Deep and strong Argentine cultural roots.
• Responsible to the local society, entrepreneurship and education.
Strengths • Toehold in Europe and Argentina markets.
• Paez is less-known and easier to reposition.

• Limited capital, human and sales resources.

• Product line is limited to alpargatas.
Weaknesses • Too many brand associations.
• Rely heavily on wholesale partners.

• Women’s footwear market favors feel and aesthetics than brand names.
• Global consumers stock a wide variety of shoes to reflect their freedom, desire and
Opportunities individuality.
• TOMS is criticized as “monetizing white guilt” and “hurting Argentine communities.

• TOMS could drive Paez out of the Europe and Argentina markets with its investments and
resources.
Threats • Distribution through wholesalers hinders direct study of customer demands and needs.
• Inflation cost and political factors can be major player for successful penetration into
different markets.
 • Paez can only focus on
optimizing its distribution
channels, product lines or brand
positioning one at a time with

KEY
limited resources.
• Paez needs to build its brand

ISSUES culture to asymmetrically

compete with industry Goliath–
TOMS in the long run.
• Paez doesn’t have a coherent
positioning strategy in place
BEST FIT
STRATEGY

3C MODEL
 Customer
• Relevant: The optimal
strategy should provide
value propositions that truly
meet the customers’ needs
and help them with their
jobs-to-be-done
• Resonant: The optimal
strategy should speak to the
customers with meaningful
narratives and help them
“achieve values they hold to
be important.”
• Realistic: The optimal
strategy should leverage
resources and culture capital
within Paez’s inventory along
with evidentiary support.
Company
• Feasible: The optimal strategy
shouldn’t be too far-fetched
from the current positioning.
Paez is limited to resources and
cannot overhaul its brand image
and start from scratch.
• Favourable: The optimal
strategy should have a higher
ROI. It should allow Paez to
capture more market share with
manageable costs
• Faithful: The optimal strategy
should be aligned with Paez’s
current operations and practices
Competitor
• Distinctive: The optimal strategy
should stress Paez’s point of
difference to set it apart from
other competitors.
• Defensible: The optimal strategy
should leverage Paez’s strengths
so that it is not easy for
competitors to replicate or
counter.
• Durable: The optimal strategy
should also benefit building
Paez’s brand culture in the long
term, since the competition from
TOMS and other competitors will
not end soon
 Strategies and Evaluation
Recommended Focus Evaluation Feasibility
Alternatives
Authentic Argentina Authenticity Positioning as authentic and legitimate leveraging its Optimal
Alpergata deep roots in Argentina culture, tradition,
craftsmanship and history
Fashion at a bargain Fashion, design, Lower price than TOMS with similar design Not optimal
price price
The Underdog Desired Levaraging the weakness of limited resources to Not optimal
marginality, appeal to Millennial and Baby Boomer consumers
brand who stand in opposition to big corporations.
community

An argentine lifestyle Coolness Fusion of function and fashion Optimal

brand with other
strategy
Brand for social good Social Fair trade, fair labor practices, education, minimal Not optimal
responsibility impact on environment
 •The combination of authentic Argentina
alpargata and Argentine lifestyle
•This strategy revolves around the company’s true
and Argentine cultural heritage.
Positioning Statement

Recommended For 18-35, simple, genuine, social and eco-

friendly women and men, Paez is the only brand
Strategy among all summer casual footwear brands that
offers simple, fun, and authentic Argentine
alpargata shoes. Because Paez is a true Argentine
company that cares about the culture, history,
and local community that inspire the making of
the alpargata shoes.
 Advantages of the
adopted strategy
• Paez has two main advantages that TOMS
can’t obtain:
I. Paez is a true Argentine company
II. alpargata shoes are from Argentina
• Thus the optimal brand positioning strategy
for Paez is to emphasize its authenticity and
Argentina roots
•  Leveraging authenticity and coolness as form
of distinction will create an advantageous
market white space for Paez.
• As Heath and Potter pointed out taste, status
and coolness are the central status hierarchy
in contemporary urban society.
Thank You