Brilliant Marketing?
Blake Mycoskie, the Founder of TOMS and also declared as the “Chief Shoe Giver” of TOMS has managed to create shared value. Initially, TOMS’ business model involved providing aid to third-world nations, but soon after, Mycoskie created the One-for-One model. This model states that for each pair of TOMS shoes sold, TOMS will donate one away. In addition, Mycoskie has even taken a step further to alleviate poverty by creating factories in Ethiopia, Haiti, and Kenya where TOMS will be the first footwear factory in Haiti (posted on HuffPost Live). TOMS has also expanded its business to produce and distribute eyewear, where the application of the One-for-One model still applies. When customers purchase eyewear from TOMS, they pay a doctor to diagnose and treat someone who cannot afford eye care, or they give a pair of glasses away.
This One-for-One model creates shared value for the company and also helps those in poverty, but in addition to shared value, the One-for-One model is also a brilliant marketing campaign (whether it was intended to be or not). One-for-One gives a positive corporate image for TOMS by relaying that it cares about those in poverty and actually takes action. Additionally, it allows consumers to feel like they have exercised a good deed by being philanthropic while gaining a new pair of comfortable shoes. In a way, this is corporate karma: caring and alleviating poverty has allowed Mycoskie to be named in Fortune’s 40 Under 40 list of top businessman (TOMS).
References:
http://live.huffingtonpost.com/r/segment/c-suite-toms-ceo-blake-mycoskie/5280f34478c90a2e7f0001b8
http://www.toms.ca/blakes-bio/l
http://sites.psu.edu/atrimbleenglish15/files/2013/09/toms-copy1.jpg