Answer to Question #183308 in Marketing for anousha arshaad

Question

“Get involved: Changing a life begins with a single step.” This sounds like a mandate from a nonprofit volunteer organization. But in fact, this is the motto of a for-profit shoe company located in Santa Monica, California. In 2006, Tom Mycoskie founded TOMS Shoes because he wanted to do something different. He wanted to run a company that would make a profit while at the same time helping the needy of the world. Specifically, for every pair of shoes that TOMS sells, it gives a pair of shoes to a needy child somewhere in the world. So far, the company has given away tens of thousands of pairs of shoes and is on track to give away hundreds of thousands. Can TOMS succeed and thrive based on this idealistic concept?

1. What trends in the marketing environment have contributed to the success of TOMS Shoes?

2. Did TOMS Shoes first scan the marketing environment in creating its strategy, or did it create its strategy and fit the strategy to the environment?

Answer 1

1.     What trends in the marketing environment have contributed to the success of TOMS Shoes?

Mycoskie came up with a new business model that combines both for-profit and not-for-profit philosophies. Mycoskie ensured poor children in different parts of the world benefit from its business which meant "one for one". TOMS uses cause marketing with their 'one on one' model where they promise to deliver a pair of free, new shoes to a child in need for every sale they make. It has acted as a great deal of corporate social responsibility encouraging the world to buy to support the needy children across the globe. TOMS shoes competitive strategy is to have their customers want to participate in the charitable act of buying TOMS shoes, showing them off, and environmental sustainability. The marketing campaign has helped the company attract new potential consumers and keep the consumers by interacting with them through social media, increasing the customer base, leading to TOMS Shoes' success.

2.     Did TOMS Shoes first scan the marketing environment in creating its strategy, or did it create its strategy and fit the strategy to the environment?

TOMS shoes (specifically Mycoskie) created the strategy and fit the strategy to the environment. The business environment welcomed the strategy as it appealed to many people well, noting that it benefited society. Again, it was well pushed in social media accruing full acceptance, thus creating an extensive customer base.