TOMS Shoes An Audit of Brand Equity Colleen

TOMS Shoes An Audit of Brand Equity Colleen Ritchie. Rhianne Makovec. Anna Pitera. Kristina Gontcharova. Erin Bennett. Janet Yockers

AGENDA Brand Positioning • Target markets • POD and POP Brand Marketing Programs • Brand Architecture • Communication • Channels Program Analysis and Critique Recommendations

REVIEW OF TOMS EQUITY PYRAMID Resonance High Judgments -Moderate Performance - Low Feelings-High Imagery - High Salience-Very Low

BRAND POSITIONING TARGET MARKETS • 18 -24 years old • College students • Involves in social causes • Horizontal collective mindset • Youth and teens under the age of 18 • See college students as aspiration group • Drivers of the TOMS brand message Primary Target Market Secondary Market

BRAND POSITIONING POP AND POD Points of Parity Points of Difference • Intrinsic: Protective, self expression • Extrinsic: Common fabric and simplistic casual structure • Intrinsic: Sense of charitable satisfaction, self gratification • Extrinsic: The alpargatas shoe design TOMS Shoes

BRAND ARCHITECTURE/ PRODUCTS TOMS Branded House Line Extensions Brand Extensions Men and Women Classics Cordones Botas Wedding Women Glitters Misc. Sweatshirt Stickers T-Shirts TOMS Flags Youth Wedges Tiny Toms Cords Wrap boots Vegan Apparel Classics Glitters

CHANNELS Internet • Nordstorms • Nieman Marcus • Whole Foods • Urban Outfitters-Niche Upscale Mass Retailers Primary Source Channels Small Boutiques • 180 boutiques

COMMUNICATION WEB-BASED MARKETING Social Media • Facebook, Twitter, My. Space • Blogging communities • Fan Sites • Rich Text Media- You. Tube TOMS. com • Connected to social media • Polls and product reviews • Blogs, and discussion boards Web Advertising • Search engine marketing • Banner Ads through Google • Affiliate Partnership Program

TOMS KEY MARKETING ACTIONS 2010 Holiday Campaign AT&T Partnered “Style Your Sole” 2009 You. Tube Campaign “One Day without Shoes” 2010

2009 “ONE FOR ONE” VIRAL VIDEO CAMPAIGN Digital Media Campaign • Via. You. Tube and TOMS. com Message • Simple and easy to understand • Shows chain reaction from purchase of TOMS Aesthetic • Uses joyful music • Narrator is a young child, Ronnie Released During Holiday Season Goals: • Focused on giving • Explain “One for One” mission • Encourage consumers to get involved through purchasing TOMS as holiday gifts

EVALUATION 2009 “ONE FOR ONE” CAMPAIGN Feelings • Positive emotions, warmth joy • Gifting two pairs • Used playful, happy music Resonance • Viral sharing • Personal recommendations & TOMS advocates Resonance Judgments Feelings Imagery Performance Salience Critique • Continue utilizing viral video tactics

2010 “ONE-MILLIONTH SHOE” AT&T PARTNERSHIP http: //www. youtube. com/watch? v=Ay 7 xr. XBa 7 Zo Partnership with AT&T for nationally aired commercial Communications Cross- platform of traditional , mobile and web marketing Message • Shows Blake Mycoskie using a Black. Berry to talk about the one millionth shoe drop Giveaway Promotion • Consumers enter to win free prizes • Also partnered with location- based mobile technology service, Gowalla • Ran from August 16 th – August 29 th

EVALUATION AT&T “ONE-MILLIONTH SHOE” Salience • National US campaign • Increased breadth of audience reached Imagery • Partnership with AT&T Resonance • Sole Styler Promotion • Grand Prize Shoe Drop “This campaign allows TOMS to do something new and exciting that engages the members of our community and not only connects them to the brand” – Blake Mycoski Resonance Judgments Critique • Maintain/create partnerships for future milestones Feelings Imagery Performance Salience

2010 “ONE DAY WITHOUT SHOES” EVENT Occurred on April 9 th, 2010 250, 000 people walked without shoes Communications High presence in social media Campus and community events

EVALUATION “ONE DAY WITHOUT SHOES” Salience Resonance • Increased awareness via media coverage and buzz • Celebrity followers created extensive PR • Identification of the TOMS community • Relationship expression Resonance Critique • Maintain as annual, international event Judgments Feelings Imagery Performance Salience

2010 HOLIDAY CAMPAIGN Channel • Exclusive retail partnership with Nordstrom’s Communications • Social Media via. Facebook and Twitter • TOMS. com • Interactive online catalog Line Extensions • Women’s Wrap Boot • Women’s and Youth Glitters • Men’s Cordones Slip. On • Kids and Toddler Classic Slip-On

EVALUATION 2010 HOLIDAY CAMPAIGN Salience • Distribution at Nordstrom Imagery • Line extensions at premium price • Highlight: Women’s Glitters Resonance • Minimal effect on resonance • Social media in holiday purchase decision Critique • Continue seasonal extensions while exploring new channels Resonance Judgments Feelings Imagery Performance Salience

RECOMMENDATION 1: “COMFORT YOUR SOLE” Brand extension into accessory of shoe inserts • Sold online only • Portion of profits go to support “Friends of TOMS” • Discount and support materials for group events Able to design individual sole of shoes based on foot needs • Options for support, thickness, etc. Increase quality and performance as sources of equity Allows for Customization and self expression • Different prints to choose or white to decorate

RECOMMENDATION 2: FLAGSHIP STORES Distribution: Create new purchasing channel Increase salience Strategic positioning of stores in horizontal collective environments Extremely successful pop-up store in 2008 Beware of brand dilution

RECOMMENDATION 3: EXPANDED TARGET MARKET Increased Involvement in social media and charitable contributions Increased Purchasing Power Trend Following: Projected feeling of being “hip” 30+ Woman Bridge Gap between secondary youth market Target through: • Microsites • Featured user profile in advertisements Beware of brand dilution Maintain niche appeal

REVIEW OF TOMS EQUITY PYRAMID Resonance High Judgments -Moderate Performance: Low -> Moderate Feelings-High Imagery - High Salience: Very Low -> Moderate

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