Toms Shoes
TOMS SHOES
Case Study #2
Submitted by
Muriah Kalblinger
Prepared for
Professor Don Looney
Black Hills State University
March 25, 2013
I. Major promotional and marketing strategies used The major promotional and marketing strategies used by TOM Shoes are cause-related marketing strategies and word-of-mouth. TOM Shoes’ customers, employees, interns, and students engage in significant word-of-mouth advertising as well as marketing itself through events, DVD screenings, and social media. TOMS Shoes believes that word-of-mouth advertising is one of the most effective forms of marketing because many consumers believe it to be more trustworthy than corporate advertising.
II. Pros and cons of a for profit model versus a non-profit model The philanthropic for profit model allows for a sustainable continuous business to help children all over the world in need because of the profit it is able to turn. It also allows for interns to strengthen his or her resumes with an updated work summary of the experience they gained at TOMS. The interns are also provided with guidance on future development career goals. The philanthropic for profit model however, may make people in poor countries dependent upon the good will of others rather than creating opportunities for them to better themselves. As a for profit business, TOMS will constantly have to balance the financial aspects of its for-profit business with the humanitarian elements of its philanthropic organization. It will be necessary for TOMS to monitor business activities such as factory compliance, sustainability, finances, and even its Shoe Drop operations in order to maintain appropriate business conduct. The company will also need to innovate at a constant. With consumer tastes constantly changing, TOMS must remain vigilant regarding new designs and products. The risks of outdated styles and designs plague the fashion industry. Therefore, TOMS must remain proactive in managing these risks to
Case Study #2
Submitted by
Muriah Kalblinger
Prepared for
Professor Don Looney
Black Hills State University
March 25, 2013
I. Major promotional and marketing strategies used The major promotional and marketing strategies used by TOM Shoes are cause-related marketing strategies and word-of-mouth. TOM Shoes’ customers, employees, interns, and students engage in significant word-of-mouth advertising as well as marketing itself through events, DVD screenings, and social media. TOMS Shoes believes that word-of-mouth advertising is one of the most effective forms of marketing because many consumers believe it to be more trustworthy than corporate advertising.
II. Pros and cons of a for profit model versus a non-profit model The philanthropic for profit model allows for a sustainable continuous business to help children all over the world in need because of the profit it is able to turn. It also allows for interns to strengthen his or her resumes with an updated work summary of the experience they gained at TOMS. The interns are also provided with guidance on future development career goals. The philanthropic for profit model however, may make people in poor countries dependent upon the good will of others rather than creating opportunities for them to better themselves. As a for profit business, TOMS will constantly have to balance the financial aspects of its for-profit business with the humanitarian elements of its philanthropic organization. It will be necessary for TOMS to monitor business activities such as factory compliance, sustainability, finances, and even its Shoe Drop operations in order to maintain appropriate business conduct. The company will also need to innovate at a constant. With consumer tastes constantly changing, TOMS must remain vigilant regarding new designs and products. The risks of outdated styles and designs plague the fashion industry. Therefore, TOMS must remain proactive in managing these risks to