crocs - going global digitally

8/9/2019 Crocs - Going Global Digitally

1/45

Going DirectGlobally

Jay Custard, Global Online Marketing Director


2/45

Regarding Forward Looking Statements:This presentation may contain forward-looking statements,

estimates or projections that are based on our current

expectations. Any such statements, estimates or projections

are subject to risks and uncertainties that could cause the

actual results and outcomes to vary materially from thesestatements, estimates and projections. These risks and

uncertainties are discussed in our filing with the Securities

and Exchange Commission (SEC) including, without limitation,

the Crocs, Inc. Annual Report on From 10-K for the year ended

December 31, 2009 and subsequent filings with the SEC priorto the date hereof. Crocs, Inc. undertakes no obligation to

update its forward-looking statements upon the receipt of new

information, future events or otherwise.


3/45

History


4/45

The Crocs Story

Started as a "one shoe" company

First meaningful sales in 2002

Public offering February 8, 2006

Quickly established a well-recognized global

brand


5/45

The Crocs Story


6/45

The Crocs Story


7/45

The Crocs Story


8/45

The Crocs Story | What Happened?

A "Perfect Storm" - Crocs experiencing dramatic growthas recession hits

Growth outpaced supporting infrastructure, stressing

service levels

Sudden economic downturn triggers decline in demandand increase in inventories

Downturn in business triggers need for cost andinventory realignment

Increasing number of imitators impacts sales in somemarkets

Brand dismissed by some as a fad


9/45

The Crocs Story | What Happened?

A "Perfect Storm" - Crocs experiencing dramatic growthas recession hits

Growth outpaced supporting infrastructure, stressing

service levels

Sudden economic downturn triggers decline in demandand increase in inventories

Downturn in business triggers need for cost andinventory realignment

Increasing number of imitators impacts sales in somemarkets

Brand dismissed by some as a fad


10/45

The Crocs Story | THE AFTERMATH

Large, loyal and passionate consumer base

Iconic brand status and high brand recognition

Worldwide distribution - 128 countries

Industry leader in injection-molded footwear design andproduction Croslite

Love 'em or hate 'em, they are in the conversation!

Lack of Demand

Lack of access to the consumer through shrinking wholesalebusiness


11/45

The Crocs Story | MAIN CHALLENGES


12/45

The Way Forward


13/45

The Crocs Story | THE WAY FORWARD

Get Access to the Consumer

Display the full breadth and depth of the product

Take it to the World


14/45

Re-enter the Conversation


15/45

Change the conversationMake some Noise

One shoe phenomenon Enduring footwear brand

Reinvigorate core business

Re-introduce innovative view on footwear

Rejuvenate expressive brand personality

Leverage our unique technology story


16/45

Past Advertising Efforts

Heavy on sponsorships

Event focus

Predictable

Indicative of Supply-side mentality

Conversation happened with us on the sidelines looking in


17/45

Video


18/45


19/45

Marketing Overview


20/45

Be More Direct


21/45

Why Go Direct?

Control our own destiny

Guaranteed access to the consumer

Display the full range of the product


22/45

Huge opportunity across the globe

Quick to market

Close to the consumer

Endless aisle


23/45

Standardize systems

Ecommerce Platform

Analytics

Reporting


24/45

Standardize Operations and Marketing

Built an internal digital agency

Extremely efficient structure

Regions become sales and marketing hubs

Leverage strategic vendor partnerships

Linkshare


25/45

Our customers dont think of their lives in terms of channels,

neither should we.

Blur the line between online and offlinethe customer doesntcare how you do it, but they expect it.


26/45

Online

RetailWholesale

Traditional Channel Structure


27/45

Online

Retail Wholesale

Go Forward Strategy


28/45

Online

Retail Wholesale

Go Forward

StrategyBattles are wonwhere there are points of

intersection.


29/45

Online

Retail Wholesale

Buy Online,

Pick up in

store


30/45

Online

Retail Wholesale

Buy Online,

Pick up in

store

Drop ship

programs


31/45

Online

Retail Wholesale

Buy Online,

Pick up in

store

Pay on Scan

Sell thru Data

Drop ship

programs


32/45

The New Customer Paradigm

Customers are empowered as never before

They enjoy the lowest switching costs in the history of

commerce

They have more options than ever before


33/45

Switching Gears


34/45

What we learned along the way


35/45

1. Listen to the consumer

Analytics provides:

What

Where

When

How

But what about the Why?

Surveys Testing

Experimentation


36/45

2. Performance Based Marketing

Are you leaving money on the table?

Understand your margins, determine your ROI/CPA and spend

to your target.

Best pay-for-performance online tactics:

PPC

Affiliates Pay-for-performance ad networks


37/45

3. Have a defined role for your website

Is it a flagship store?

Is it a place to locate hard to find colors & sizes?

Is it a discount channel?

Is it MSRP only?


38/45

4. Build a robust customer database, capture at all

touch points

Events

Newsletters Contests

Promotions

Point of Sale


39/45

5. Product is king. Treat your web store like a brick

and mortar.

Buy & forecast sales.

Utilize one of your retail buyers or hire your own.

Determine how you will dispose of excess inventory.

Inventory Turns, Out of Stock metrics.


40/45

6. Find ways to partner with your wholesalers and/or

vendors.

Share sell-through data

Analytical data by geography, etc.

Email templates/graphics/product imagery

Drop ship program


41/45

7. Consider outsourcing aspects of your ecommerce

business.

Fulfillment

Customer Service

Returns


42/45

8. Establish a pricing and promotions committee.

Representatives from all channels.

Clear/defined process & escalation paths.

Rules of engagement.


43/45

9. Social Media isnt a place for corporate PR.

Be an active part of the conversation

Dont act like a corporationbe authentic to the tool

Social is messy, and people are okay with it.


44/45

10. Mobile is the next great opportunitythat no one

has figured out.

Dont wait on the sidelines

Look for opportunities now and test, test, test

Start small with a simple SMS program to understand your

market


45/45

CHANNEL2010Use it!

[email protected]@jay_custard

crocs - going global digitally

Documents