Understanding the Marketplace and Consumers
TOMS Shoes "Get involved: Changing a life begins with a single step." in fact, this
on how TOMS executes its strategy within the constar'
ing marketing environment. After viewing the video featuring TOMS Shoes, ans\'.: lowing questions about the marketing environment:
This sounds like a mandate f rom a nonprofit volunteer organization. But
the motto of a for-profit shoe company located
Santa Monica, California. ln 2006, Tom Mycoskie founded TOMS Shoes because he wanted to do something different. He wanted to run a company that would make a profit while at the same tlme helping the needy of the world. Specifically, for every pair of shoes that TOMS sells, it gives a pair of shoes to a needy child somewhere in the world. So far, the company has given away tens of thousands of pairs of shoes and is on track to give away hundreds of thousands. Can TOMS succeed and thrive based on this idealistic concept? That all depends
1. What trends in the marketing environment have co...
to the success of TOMS Shoes?
Did TOMS Shoes first scan the marketing environme.creating its strategy, or did it create its strategy and'.strategy to the environment? Does this matter? ls TOMS' strategy more about serving needy childrer : about creating value for customers? Explain.
COMPANYCASC AirAsia: The Sky's the Limit
Low-cost carriers (LCCs) provide an alternative for price-sensitive business and leisure travelers to maintain their travel plans at lower costs. AirAsia, AsiaS leading airline, was established with the dream of making air travel possible for everyone and it is now one of the world's best low-cost airlines. AirAsia was the first airline in Asia to introduce the budget, nofrills airline concept. lt was founded in 2001 by CEO Tony Fernandes and his three partners when their company, Tune Asia Sdn Bhd, bought the fledgling AirAsia, a Malaysian government-linked airline. Since then, the growth of this LCC has been the envy of many. lt started with two old Boeing 737s serving the domestic market in Malaysia. Today it is a publicly listed company boasting a large fleet of aircrafts flying to over 61 domestic and international destinations. It flies 108 routes and operates over 4OO flights daily from hubs located in Malaysia, Thailand, and lndonesia. AirAsia is widely known as the " Ryanair" of the Far East as it focuses on providing convenient and affordable air travel for the mass middle-class market. ln 2001, the domestic market was dominated by the national carrier, Malaysia Airline System (MAS), whose high prices created a pent-up demand for low-cost air travel. AirAsia offered savings of up to 60 percent compared to MAS' prices, and indeed, the compa ny s tagline, " Now everyone can f ly, " tru ly ref lects the company's promise to its customers.
corporate culture, encouraging pilots to cook breakfast ' ,r'l neers each quarter to thank them for looking after thet' : As CEO, Fernandes ensures that he is accessible to all hrs , giving them his mobile telephone number. Air travel in Asia is heavily regulated, but Fernandes ha. : a crucial role in lobbying for its deregulation. ln mid-2003, :. des engaged the support of the former prime minister of l'.'. Tun Dr. Mahathir Mohamad, to network with neighborir : tries in an effort to develop an open-skies agreement. Sir':=' ., Indonesia, lndia, Thailand, and Singapore have qranteci .rights to AirAsia. Although it has limited resources, AirAsia has been able:_ its customers' needs by collaborating with partners. For ins..' appoints authorized travel aqents to cater to travelers who ."- .' comfortable with making their bookings over the Internet. l', . ,,r without credit cards can also pay for their tickets by cash di :- *, liance Bank branch in Malaysia. With the right partners and a strong marketing strategy fc: llr on the promise of low fares and good brand...