TOMS Put It’s Right Foot Forward
TOMS is an internationally known as a shoe company that matches every pair of shoes purchased with a new pair of shoes for children in need in a third world country, and this revolutionary concept is known as “One for One”.
The TOMS brand was created by Blake Mycoskie in May of 2006, and when he went on vacation to Argentina, he realized that the local polo players were wearing shoes called alpargatas. Alpargatas is a simple canvas shoe and he adopted this style. Because of the lack of shoes in developing countries, Mycoskie discovered that lots of children were running the roads barefooted. He decided to start the business that is able to dedicate to help other people, and for every pair of shoes sold, he would provide a new pair of shoes to the shoeless youth in developing countries. He also wanted to bring hope to the poor youth and solve a serious poverty with the benefit of his business. He built not only business but also a movement to the globe.
TOMS brand differentiated their business by implementing a selling strategy and establishing a “One for One” shoe sale with this contributing to corporate social responsibility. According to the textbook, social responsibility in international management involves “taking action to benefit society beyond the requirements of the law and the direct interests of the firm” like Mycoskie. As an economic view, the cost of the TOMS shoes is $40-$60 and customer actually do not mind this price. The idea of helping others from the purchases of a good is work, and this motivates well for some to be willing to part with their discretionary income. According to the textbook, TOMS shoes has given away two million pairs of shoes to children in need and following shoe distribution, “42% increase in maternal health care program participation and a 1, 000 student increases in enrollment”.
As a social view, the TOMS focus on marketing and use of social media wisely to build their brand innovative and unique. TOMS relies on social media sites and blog for their marketing and interaction with the public. According to the textbook, when the first “A Day Without Shoes” social media campaign is launched, the amount of donations and brand awareness is increased. This social media campaign allows TOMS is able to intimate connection with consumer broadly. Moreover, TOMS has created a blog to share their activities that help others which is less costly in comparison to the advertising. In conclusion, using social media for marketing is really nice. TOMS use social media successfully to create awareness to a vast audience with cost-effectively gets their message out. TOMS has also a positive brand image and relationship with their consumer because they have demonstrated great social responsibility as a company.
Moreover, TOMS is known as the pioneer of one-for-one giving companies. Lots of companies are now using the one-for-one TOMS business model to sell more products such as toothbrushes or blanket. For example, “Smile Squared” company which sells some travel journals and toothbrushes, for every pair of toothbrushes you buy from them, “Smile Squared” will donate a travel kit and also help fund wish trips to children facing life-threatening medical conditions. According to Mycoskie’s interview with Business Insider, consumers felt like they’re getting to be part of something more than just a transaction and intent to provide benefit to the consumer. While spending money on giving, the consumer also that they can influence other people. So what makes TOMS to a succeed? Since TOMS fits between social marketing and social media to aware consumer socially and internationally.
In my analysis of TOMS shoes, I realize that anyone can start their business to make their dreams come true. I found it interesting that Blake Mycoskie had started a laundry business for other students even in college. Giving back is a genius way to make a sizable profit off the product to third world countries, and TOMS came up with the one for one deal which was revolutionary to the business world. As a result, other businesses companies start to do the same and that is what makes Mycoskie such a great entrepreneur who gives to charity and at the same time make a profit even in harsh economic times.
