Crocs Company Essay

I pee chosen crocs society to make the report that requi wild in my first assessment. I adopt this high society because I am interested to make analysis rough this company. In my opinion this company is unique. base on (Wikipedia crocs), Crocs, Inc. is a skid manufacturer founded by 3 friends Scott Seamans, Lyndon Duke Hanson, and George Boedecker, Jr. They produce and dish a foam clog design acquired from a Quebec company called Foam Creations. The shoe had originally been authentic as a spa shoe. The first model produced by Crocs The Beach was unveiled in 2002 at the Ft. Lauderdale Boat Show in Florida, and interchange out the 200 pairs produced at that time.After a capacious success selling the 200 pair of Crocs the Beach spa shoe, George realize the potential and try to go beyond the 200 pair. Every pair of Crocs fit outs is from a material called Croslite. Croslite is a do from the companys PCCR (Proprietary Closed- cellular phone Resin). It is not plastic nor rubb er and it is a closed-cell in nature and anti-microbial (eliminates that stand odor). The special secure Closed Cell Resin (PCCR) warms and woolyens with your body heat and molds to your feet. The Crocs European styling of the orthotic heel, built-in arch support, and tarsal kick downstairs position your feet for ultimate foot con resole and health.Say No to Painful Shoes and Hallo crocsCrocs, Inc, a orbit leader in innovative mundane foot interrupt for men, women and children, celebrated its 10th anniversary in 2012. Crocs twirl several distinct shoe rollions with more than 300 four-season footwear styles. solely Crocs shoes feature Croslite material, a proprietary, revolutionary technology that gives each pair of shoes the soft, gentle, lightweight and odor-resistant qualities that Crocs fans know and love. Crocs fans Get Crocs Inside both pair of shoes, from the iconic clog to raw sneakers, sandals, boots and heels. Since its inception in 2002, Crocs has sold more t han 200 one million million million pairs of shoes in more than 90 countries around the world. The provoker celebrated reaching $1 one thousand thousand in annual gross revenue in 2011. merchandising Concept view as 4 elements that briefly rationalise what the marketing concept is Customers Orientation, Competitor Orientation, Inter-functional Coordination and internet Orientation. In Crocs Inc. Marketing concept is implemented to tending the physical composition identify and give the customer pauperization and want while to a fault trying to achieve their organisational goals. I will explain more about the marketing concept that become been applied by Crocs Company.Customer OrientationThis Customer Orientation is aroundly about how the physical composition understands their core customers, their send buyers and their consumers in the industries. This people play a great part to them in creating the ideal growth to the optimum valued. Based on the Crocs mission statem ent Bring profound comfort, fun and innovation to the worlds feet . Crocs do their research what customer deficiency and want. They value their customer toward comfort, fun and innovation footwear. They treat their customer so much give that they make their shoes according to what customer want in their feet.Crocs have made research and collect various types of information that may dish up them to satisfy their customer require. That why Crocs have made various types of shoes that cater to all their customers need. The Croslite material that make it possible. Crocs delimitate Croslite as Ergonomic, lightweight, easygoing and odor resistant. Who ever thought that having an ugly shoe can make our feet heart absolutely relax? Well, Crocs did and it was a success. Crocs shoes do not nevertheless give absolute comfort deal different shoes or stylish appearance but it gave more. No more foot odor, no more aching feet, no more heavy shoes and say Hello to better Healthy Shoes.(cr ocs, 2013)Crocs have launched an advertisement called Feel The Love by Crocs. In the television commercial for Crocs footwear, the actress corroding black high-heel shoes enters an apartment building and with tired climbs a flight of stairs. When she opens the door, two small red animated characters based on the Crocs original clog model, with stubby arms and legs and blinkingventilation holes representing eyes, scuffle toward her like puppies. The characters cling to her ankles and then, as she sits on the couch to read her mail, they remove her shoes, massage her feet, and then cutting off a new style of Crocs flats onto her feet. Meet Croslite, says a voice over toward the end and lastly says the loyal, loving, good-for-you technology, in every pair of Crocs.It was a great TV commercial that shows how Crocs understand their core customer, buyers and consumers needs and wants. Crocs knows that most of us will have a tiring day and it is a hassle to passing play back home with an uncomfortable shoes. The advertisement wanted to deliver that Crocs is the ideal footwear to wear anytime anywhere. also that, another example of Crocs is Customer orientation is developing a shoe called Crocs Prepair Flip that focus on Athletic like runners and cyclists, etc. The flip-flop enhance recovery after athletic activity and so help confuseder vigour exertions can provide an improved opportunity for blood flow and deteriorate relief, creating greater recovery potential after a hard sporty activities.This doesnt focus on the athletics but to the customers that like to do sports. This shows that rather than they focus on general customer need them also specific to certain group of customer needs. Like in this Crocs Prepair case, they focus on the brisk runners, cyclist or other types of sports that might causes almost of feet damage like fatigue or muscle exertions. Crocs have proven that they argon Customer Orientation governance.(crocs, 2013)Competitor orientat ionCompetitor Orientation path an organization that watch at how its competitors be able to satisfy their buyers, customer or consumers. The organization should collect information about their competitor dodge and in the same time making their competitors as their benchmark for either short term or long term marketing strategy. Crocs chew over competitor is Deckers, NIKE and Timberland. This major footwear provokers have been around for many decade compared to Crocs that is consider as a baby in this Industries. But, to compare the success of crocs to them is actually same. The thing that makethese other competitor different from Crocs is they have the draw and well-known to the world.Crocs have collected some information of their competitor. Based on an article found from the meshing called The Strategic Move of Crocs, Inc, 2009, Crocs have identified their competitors and what their competitors are doing in the industries. Crocs also realize that the global day-by-day fo otwear and apparel is a highly agonistic industry. Every competitor is competition with each others. In relating Crocs with its Competitor, I will be development Nike to make comparisons with crocs.(HOOVERS)Well-known Brand NameNike began in the 1971 sold its functional running shoes to the jogging set, but then quickly spreaded its offerings to allow all athletes in virtually every sport. The shoes were customized to handle the rigors of the individual sport. Nike also expanded its verge to be fashionable and cool to wear even when its wearers werent sweating. Compare Crocs and NIKE, NIKE has been in the global effortless footwear and apparel industry since 1964. It is not surprising if Crocs has a long way to go and brass instrument many problems before they are on par with the well-known large companies around the world like Nike.But the potential is very good as Crocs is appear as category-dominant shoes. Even both are different in age but both dis people of colorations are equally well known to the customers. Who in the world does not know Nike or Crocs? Both have carved a name their brand name in the mind of the customers when they think about shoes.(NIKE,Inc)Inter-functional coordinationInter-Functional Coordination means the people in the organizational that help in developing a marketing plan to achieve the organizational goals and satisfy the customer need and wants. The cooperation in spite of appearance the individual in the organization plays a part in this Marketing concept. In 2007, Crocs acquirement a Designer/manufacturer of sandals for beach/action sports called Ocean Minded. In the acquisition, Ocean Minded is introduced by Crocsand helping Ocean Mind to boost up their merchandise. Ocean Minded mission statement is To hold up the global leader in sustainable lifestyle footwear, apparel and accessories whilst ensuring that the four pillars of the Ocean Minded brand Quality, Authenticity, Responsibility and Community resonate thro ughout our company, products, associates and actions.This brand helps Crocs to boost up their friendly responsibilities toward their employees, their organization, the customer, the environment and to the world. Crocs, Inc. and its founders pass to live the Ocean Minded lifestyle by actively leading beach clean-ups, and supporting and educating customers on the importance of leaving the ocean and all waterways in better precedent than when they were found. Thus this shows that not only Crocs is Inter-functional coordination but also a responsible organization that wanted to help another brand that sole purpose to keep the world a better place.(crocs, 2013)Profit orientationProfit orientationProfit Orientation means a term used to describe a business that operates under the primordial objective of making money. Although most commercial enterprises have some form of good orientation to impress employees to maximize revenues, the most successful producers also incorporate a custo mer orientation into their corporate ism to protect the companys reputation and facilitate client gaiety with its products. (BusinessDictionary)Profit Oriented organization means a business that main objective to generate profit. There are ways an organization may achieve the greatest profit for their organization while still giving the customer the satisfaction of their products.In Crocs Inc, the company wanted to make money by selling their clog shoes to the customers. Crocs Inc also have some ways to be Profit OrientationCheapest Marketing StrategyCrocs were able to build its brand and build momentum with word-of-mouth marketing without conventional high advertising costs. Crocs Inc started their name by using the cheapest way of Marketing.Word-of-mouth marketing (WOMM), also called word of mouth advertising, is an unpaid form of promotion literal or written. In which satisfied customers tell other people how much they like a business, product, service, or event. Word-of-mout h is one of the most credible forms of advertising because people who dont stand to elevate personally by promoting something put their reputations on the line every time they make a recommendation.(Word-of-mouth marketing, 2013)This strategy is the cheapest way to spread the word about Crocs Brand to the world. Crocs use the social network to market and promotes their product toward their potential customer. Thus, they save up a lot by not having an expensive advertisement or building a billboard that might cost them a lot. Cutting costCosts were bring down by the elimination of standard box packaging for individual pairs of shoes. They were also decreased by the lessening of stock-keeping units (fewer styles, sizes, etc) and by the use of inexpensive plastic resin material compared to leather and other fabrics. In addition, the plastic resin material allowed Crocs to lower manufacturing costs because the product could be made faster and cheaper using nip molding machines compa red to traditional labor intensive methods. This speedy production, also made it possible for Crocs to revolutionize the traditional ply chain approach and make its shoes available to a liberal range of retailers and consumers within weeks, not months.By lowering the cost, Crocs can obtain larger amount of profit. This is a great tonus toward not only to the organization profit margined but helping the other brand realize that Crocs have better ways of managing it cost. This show that Crocs uses the cheapest Marketing Strategy to promote it product, uses the Cheapest distribution Channel to sell their product and cut unnecessary cost to obtain larger amount of profit. Crocs are genius ways of profit orientationorganization.Marketing process consist of 4 step Situation Analysis, Marketing Strategy, Marketing mixing Decision and Implementation and Control. Situation AnalysisSWOT AnalysisStrengthIn Croc Inc, they give not just comfort but by created a material called Croslite, that technologically design to gives each of Crocs Shoe comfort, softness, lightweight, non-marking and odor-resistant. If we think back, Crocs have eliminates most of the problem that we suffer about shoes. When we buy a shoe, we seek comfort, soft and stylish. Plus I always have a problem with new shoe that languish my feet when I wear it the first time. Well with crocs, they no more painful shoes. The Croslite material ensures that Crocs will never hurt our feet when we wear it. Plus with Crocs, there is no more feet odor. They satisfied the most of customers needs, desires and chance in one material. The product design also unique with many shapes that is very interesting. The equipment casualty also reasonable based on the material that crocs use to create the product. The product very comfortable and stylish. weaknessCrocs does not have a diversified product offering beyond footwear, which causes revenues to be seasonal (since most of their footwear is worn in summer) and also very cyclical (dependent on consumer spending and performance of the retail sector). Demand for Crocs Classic shoes has been declining over time (from 30% of total sales in 2007 to 16% in 2009) as they transition to a mature product and therefore, revenues are contingent upon the success of new models and fads. Crocs has poor IT systems and depends on manual processes which are not efficient or scalableOpportunitiesCrocs has the ability to expand through growth in direct to consumer sales and internet sales. Given Crocs success internationally, they can conserve expanding abroad by reaching untapped markets. In addition, its possible that the Crocs fad is in a different part of the fashion trend cycleabroad and Crocs can even take favour of further growth in countries where it already has a presence. Lastly, there is an industry movement towards more comfortable and casual shoes, so Crocs has the opportunity to attract new consumers by highlighting the benefits of Croslite.Threats The product of Crocs increase in counterfeit product and highly competitive market. Highly competitive market for example Crocs have to competitive with NIKE. Some retailer with more product differentiation. Decrease in consumer spending resulting from global economic condition poor publicity escalator incidentMarketing StrategyThe marketing strategy for Crocs is the different target of customer. They do not only focus to one type of customers. Crocs has defines their customers and what they need from Crocs.A) Kids.The Kids which comprised their 23% revenue of sales in 2009, is the number one customers for Crocs. Kids love their Crocs shoes because Crocs comfort, easy-on, easy-off style, bright colors and customizable Jibbitz accessories make them ideal for kids. And their low price point and broad size range make them ideal for parents on a reckon with fast-growing children. Crocs Inc introduced a fall kids collection for school. Kids do love Crocs shoes and they wanted to wear th em all over even to school. That why this falls collection comes with a School Approve symbolisation. This School Approve symbol comes with meaning of features of closed toes, enclosed heels and non-marking soles that meet typical school dress code. Now kids can wear Crocs everywhere even in school.B) Women.77% of Crocs sales in 2009 were from products geared towards adults, and suspect that the majority of those sales are to women. Continued focus on understanding the needs of this segment as well as effectively marketing to it. Crocs introduce the Feel the Love campaign seems to focus on female protagonistsMarketing liquefy DecisionProductThe Product that provided by Crocs is a brand new type of casual shoe, it is a clog that partly a shoe and a part sandal. This clog shoe is fun, whimsy, brightly-colored, comfortable and lightweight with perfect balance of functional address. Crocs Inc provides various types of shoes for women, men, girls and boys. The clog like shoe look ugl y at first but with the appealing bright colors that the come with, it catches the buyers and customers. The bright color catches the attention of customers to try it on. Well, the materials that Crocs shoe made from actually make it far. The special Patented Closed Cell Resin (PCCR) warms and softens with your body heat and molds to your feet. The material eliminates all the shoes problem that we have in life. That what sold it worldwide. The wonder shoes.PricingCroc wanted their product is accessible to many people so their base price point is RM90. They also eliminated a standard box packaging for individual pair of Crocs shoes. This step help them to lower their cost as well decrease their stock keeping unit. empowerWhen we say The Place in Marketing Mix, there may explain how providing the product at a place which is snug for consumers to know. Crocs evolves their distribution in retail by having each stores in every shopping complex, malls and even streets worldwide. But, re cently they reduce on retail magnification and focus on others distribution strategies like having Crocs Kiosk and Online Crocs Shop. All the distribution strategies that implemented by Croc is focusing on the customers convenient to purchase a Crocs Shoes. There are now no boundaries in distribution.PromotionLast in Marketing Mix is The Promotion, it represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as advertising, public relations, personal selling and sales promotion. In Crocs Inc., they started their marketing strategies in having a Word-To-Mouth Marketing that is an unpaid form of promotion whereby it may be in oral or written form. It created a buzz that will make other peoplesatisfaction toward the clog shoe to another person. Crocs Inc spend less in promotion because of the word-to-mouth marketing that is the cheapest way of promotion. When the word get out, the make up ones mind people like celebrities like Al Pacino, Faith Hill and Paris Hilton were seen wearing the clogs shoes and with their social class influence the other people to wear one clog shoes.Even US president Bush wear one and he actually loves the clogs shoes. Other than using this word-to-mouth marketing, Crocs Inc also do some discounts, promotion online and public relations. Define marketing and related it with Crocs Inc understand us how Marketing works. It is more than sell and Advertising a product. The major focus is the Customer Satisfaction towards a product. That why a study have been made and a strategies like The 4Ps Marketing Mix is developed. It is to understand more how marketing works.The companys growth strategy includes1- distributing new and internally developed products through a wide range of channels e.g department stores, specialty footwear stores, sporting goods and outdoor retailers and Cocs website 2- acquisition of small footwear companies e.g Foam Creations in June 2004, Fury and EXO in October 2006, Jibbitz in December 2006, Ocean Minded in February 2007 and routine in August 2007. 3- expansion into global markets with products distributed through more than 8000 international retail stores sold in about 90 countries. The company was able to realize high margins on its products due to high economies of dental plate and shift to third party operated facilities (83% of third-party manufacturers in China, Bosnia, Vietnam and Romania). The company faces a lot of challenges.4- Crocs core competencies are supply chain management and small-retailer level marketing, just in time distribution. Croc has used its core competencies to build a brand familiarity and popularity and to distribute new models and accessories in mid-season. Their supply chain management has helped the company to create a stronger maturity map for their products, and to extend the maturity map through marketing How could Crocs exploit their core compe tencies in the future? Consider the following alternatives a.Further vertical integration into materials a.Growth by acquisitionb.Growth by product filename extension(Bogari, 2009)My recommendation Crocs have to focuses more on the shoes. Crocs should refocus its entire organization (design, manufacturing, and marketing) on the unique appeal of its shoes. Realign the distribution model in U.S. We believe that Crocs should reduce its focus on retail expansion and instead recommend migration to the model that has proven Reduce retail store presence. Crocs should carefully evaluate the returns on existing stores, and suspend plans to open new stores. For those stores that are not in key geographic areas and that are not strong performance.