Marketing report for TOMS

Monday 29th March 2010FAO: TOMS marketing, PR and events deparments

Rhiannon HeywoodJoelle Hickford

Shola HoodJenny Jokela

CONTENTS PAGE

1. Mission Statement2. Executive summary

3. Introduction4. Glastonbury Festival summary

7. WaterAid summary9. ‘Design your own’ summary

11. Mood boards14. Conclusions

17. Costing18. S.W.O.T analysis19 P.E.S.T analysis

20. Appendices22. Bibliography

MISSION STATEMENT

Our mission is to raise awareness of the TOMS brand and therefore in-crease public knowledge of the unique non-profit movement behind the brand. Our main aim is to bring TOMS to the U.K. in doing this we will increase brand awareness and knowledge of the ‘One for One’ move-ment globally. With the current market becoming ever more socially and ethically aware we plan to capitalise on this by launching the TOMS brand at Glastonbury Festival 2011 for the first time ever. We hope to educate potential customers about the brand as well as supplying the current growing demand for ethically and morally aware trends/fash-ion. As well as attracting the existing consumer we aim to increase our market and therefore increase sales. To fulfil this goal we will be col-laborating with WaterAid an official sponsor of Glastonbury. To produce limited edition water bottles displaying the merged TOMS/WaterAid logo to sell throughout the festival period. By doing this we are creating further awareness of the TOMS brand and also exposing the brand to the WaterAid consumer market.

EXECUTIVE SUMMARY

INTRODUCTION

TOMS shoes is an ethical fashion brand founded by Blake Mycoskie in 2006. The brands idea is named ‘One for One’, for every pair of shoes sold another pair is sent to a child in need. Since 2006 TOMS has given over 400,000* pairs of shoes to children in poverty. Although the brand already has a large fan base there is potential to increase awareness and promote the movement.Achieving this comes from exploring the TOMS customers and their reasons for purchasing, as well as their knowledge of the brands move-ment and where they purchase from must be considered. This information will be gathered from in store and Internet research as well as conducting surveys. Further research such as competitors and other brands alike will also be looked at. The promotion of the brand will be decided after this information is collected and analysed to produce the most appropriate and efficient method of development.

CONCEPT 1: GLASTONBURY FESTIVAL

The main body on the concept is to take TOMS to Glastonbury Festival 2011. The reasons for this are that Glastonbury has the highest festival capacity in the U.K, of 177,000 people. The festival, as well as it spon-sors, share ethically moral ideas like TOMS. By selling products at the festival, this will increase sales as well as awareness and therefore profit of the brand from the trucks. Products will be sold and merchandised through and inside a tipi.

About Glastonbury

-Largest Greenfeild festival in the U.K-Best known for contemporary music, also features dance, comedy, theatre, circus and many other acts.-In 2007 over 700 acts played on over 80 stages and the capacity expanded from 20,00 to 177,00-It is sponsored by Greenpeace, Oxfam and WaterAid

These are the 5 womans styles to be sold at the festival

These are the 5 mens styles to be sold at the festival

These are the 3 styles for youth to be sold at the festival

The prices featured below the shoes will be the selling price at the festival.

CONCEPT 2: WATERAID COLLABORATION

In addition to this concept there will be collaboration with WaterAid, a main sponsor of the festival. This will be in the form of producing and selling bottles of water at Glastonbury splitting the proceeds 50/50 be-tween the two brands.A combination of both brands logos will appear on the label for this product including websites and details about the cause. Water aid will be the main distributor of the product however it will also be available for purchase in the TOMS tipi and trucks.

About WaterAid-Transforms lives by improving access to safe water, hygiene and sanitation in the poorest of communities,-Work with local parteners who understand local issues and provide them with skills and support to help communities set up and manage practical and sustainable projects.-Continually make sure that the work they do is sustainable innovative, relevant and effec-tive.-Passionate champion of the role safe water improved hygiene and sanitation play in improv-ing health, education and reducing poverty.

CONCEPT 3: ‘DESIGN YOUR OWN’

‘Design you own’ is an exciting concept TOMS has, introducing this idea to `Glastonbury festival as a sub concept will give the opportunity for the customer to interact with the brand and have a personal experi-ence by creating a unique pair of TOMS. Free workshops of fifty people will be held three times a day for the three days will be hosted by three members of TOMS workers. Five styles of women, men and youth will be sold; the chosen styles will be based on the companies’ best sellers from the 2011 summer collection.

These are some photos from various ‘Design your own’ workshops at schools in Africa and Canada

CONCLUSION: GLASTONBURY FESTIVAL

Inevitably, awareness of the brand will increase due to the extraordi-nary attendance of the festival. If nearly all the 177.000 people are made aware of the movement or take an interest in the brand this then goes on to increase profit through online and in store sales. It works to have TOMS at Glastonbury because of the one thing all parties have in com-mon; they’re making a difference. TOMS is best suited to this festival because unlike others Glastonbury is the biggest, most ethical and best morally supported festival in the U.K. In the future there is potential for other festivals to take inspiration from this concept and work with TOMS to carry on the movement and continue promoting the brand.

CONCLUSION: WATERAID

WaterAid is a known sponsor of Glastonbury festival, this means that there is already a basis for the collaboration as they are already asso-ciated with the festival and understand how the festival works. TOMS previous collaboration success with Element shows TOMS is capable of working with other brands and producing a product, which is relevant to both brands. In the current market there has been an increase in high street collaborations with ethical organisations, fair trade being the most popular. It shoes from the research that 88% TOMS customers purchase the shoes for ethical reasons, therefore working with Wat-erAid is a great way to get involved with this new ethically based trend. This is an effective way of keeping TOMS existing customers as well as gaining new ones who are willing to buy into this market.At present this collaboration is only exclusive to Glastonbury and will end when the festival finishes, however there is a possibility for poten-tial TOMS collaboration with other fair trade organisations n the future. TOMS will receive 50% of the proceeds made from each water bottle sold; this will then circulate back into the funding of the brand.

CONCLUSION: ‘DESIGN YOUR OWN’

By looking at the brands history it has shown that this idea has been successful at past events.Introducing this idea to a large-scale event such as Glastonbury broad-ens its market by allowing all age groups to get involved. In doing this, the brand gains new customers by providing not only ethical but fash-ion products that are available for all ages.By getting people involved on a personal level it increases awareness of the movement and influences them to purchase TOMS in store and online therefore increasing profit. If this proves successfully during the festival there could be potential for it to be introduced onto the website as well as continuous ‘design your own’ parties in stores and at events.

COSTING

-Two trucks at £ 1190 -One Tipi with a capacity of 70 people £ 5,500-Cost of manufacturimg for bottle 1 pence x 70,000 bottles produced £70,000 TOMS staff normal wage+interns and volunteers free

Total £77,880

ESTIMATED SHOE SALES

-81,000 x £32 (average price for pair) £2.592,000 £2.592,000 -Costs £77.880

Total £2.514,120 £2.514,120 +Proceeds from water bottle sales £35,000

Total profit of £2.549,120

S.W.O.T ANALYSIS OF TOMS

Strength- The brand is well established and has been growing consistently since its launch in 2007.The product is sold at affordable prices and has an ethically and socially conscious purpose.The brand is successfully distributed by popular retailers (Topshop, Office and Schuh) as well as online.

Weakness- The brands website doesn’t provide in-depth information about the materials used.The brand is not distributed by enough U.K. retailers.The styles available for purchase in store are not as varied as online.

Opportunity- The changing tastes of consumers is an opportunity for the brand as the world is becoming more socially aware and ethically conscious when it come to fashion. New distribution channels, such as TOMS store would be a great opportunity for the brand.

Threats- Similar brands such as Fair Trade, People Tree and Oxfam all see clothing and shoes to benefit the developing world so these companies are competitors but none of them have the same ‘One for One’ movement as TOMS do, therefore not posing a major threat to the brand.

S.W.O.T ANALYSIS OF CONCEPTS

Strength- the brand will be collaborating with WaterAid, a successful and well-known organisation who are already an official sponsor of Glastonbury. The brand will be creating massively popular product, bottled water, along side the original product of shoes.

Weakness- there will only be one main site selling the product at the festival.

Opportunity- trading and promoting at Glastonbury consistently over the three days will give the brand the opportunity to engage with the vast amount of consumers as the festival has reached a capacity of up to 177,000 people

Threat- there will be various other brands and competitors trading at the festival which could potentially be a threat.

RECOMMENDATIONS

• Introduce it to Glastonbury Festival

• Collaborate with WaterAid

• ‘Design your own’ workshop at the festival