TOMS - A Business Report
An analysis and evaluation of the critical success factors and marketing mix of TOMS Footwear Company
Page 3 - Introduction: Including Executive Summary, Research methods and Recommendations
Page 4 - About TOMS & the TOMS business model
Page 5 - The Critical Success Factors for TOMS
Page 6 & 7 - The Marketing Mix, its links with the Critical Success Factors and recommendations
Page 8 - References
The purpose of this report is to provide an insight into the footwear company TOMS' critical success factors (CSF's) and make recommendations for the company based on them. CSF's have become essential elements to strategic planning and no business can achieve consistent success without effectively adopting them, it is a term that describes a component that is essential for a company to succeed in its tasks. (Howell, M. 2009) The report will identify, analyse and evaluate TOMS' critical success factors (CSF's) on the basis of the market and marketing mix that surrounds the company. The marketing mix is defined as a set of controllable, tactical marketing tools that can be blended to produce the desired results within the target market. (Kotler, P. Et al, 2010). The report will then provide potential links between the factors of the marketing mix and the CSF's of TOMS, suggesting potential changes to the marketing mix and what the effects of the changes may be.
Research Methods The research methods undertaken in the report are secondary. The CSF's of TOMS I have presented come as a result of previous research carried out within a group project based on the company, in which we analysed the microeconomic and macroeconomic factors of TOMS, allowing us to present a list of critical success factors. Basic findings and Recommendations
The three key Critical Success Factors for TOMS I have chosen to look into are firstly for the company to expand into wider markets. Secondly is for TOMS to focus on their business ethics and their ethical procedures. The final CSF is the marketing and advertisement of TOMS. The recommendations are mainly based upon making changes to the factors of TOMS' marketing mix that link to its CSF's. Some of the factors, such as product, place, promotion and positioning can be changed slightly to aid in TOMS' CSF's and result in great benefits for the company. However I recommend that some of the factors of the marketing mix are not as vital for TOMS success as the others and therefore do not need to be changed as much.
TOMS originated from the word 'Tomorrow, which further originated from the 'Shoes for Tomorrow' Project. The company was founded in 2006 by Blake Mycoskie, who formed an idea whilst on vacation doing voluntary work. Mycoskie had noticed how many children in Argentina were without shoes, provoking him to sell his company for $500,000 and invest in TOMS. The company went on to sell 10,000 pairs of shoes in its first 6 months. By 2012 over 2million pairs of shoes had been donated in over 40 countries, with over 500 retailers selling them. (TOMS 2012)
TOMS is a for profit company, however they have a non-profit subsidiary, Friends of TOMS. The company designs and sells shoes based on the Argentine Alpargata design, as well as eyewear. The shoes are made from canvas or cotton fabric with a rubber sole and come in a variety of colours and styles. The business model is referred to as the 'One for One concept'. The slogan used by TOMS is 'One for One'. The model uses a word for mouth advocacy and the main focus for the business is based on corporate and social responsibilities. When TOMS sells a pair of shoes, a pair of shoes is given to an impoverished child. When TOMS sells eyewear, part of the profit is used to save or restore the eyesight for people in developing countries. TOMS also works with a large variety of charities and None...
References: TOMS (2013)
Blake Mycoskie, TOMS (2011)
How does the marketing mix link with the CSF 's?
TOMS Giving Report (2012)
Kotler, P.J., Armstrong, G.M., (2010). The Principles of Marketing, P 76 Pearson education Accessed 22nd April 2013
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