The report presents the marketing plan of Crocs Shoes. The report presents the situation analysis, SWOT analysis, market segments, alternate marketing strategies, marketing mix and marketing strategies, long term and short term projections and conclusion.
Challenges
Crocs is offering innovative casual footwear for people of all ages. However recession has influenced the sales of the company. Moreover, with the increasing competition in the market, the company is facing different challenges. Currently, to draw on the prospects present in the global economy, the organisation aims to extend its activities to other countries. In order to boost its revenue, the organisation also aims to expand into the current markets.
Situation Analysis
Since 2002, the business has been rising at a quick rate. The business has extended its activities to 125 nations (Cross b). With the company’s rising revenue, the company was successful in increasing its market share. The company’s revenue and profitability are presented in the chart below:
(Nichols)
The company’s earnings were impacted by the crisis, as the company reported a substantial rise in revenues and income from 2006 to 2007. However, from 2007 to 2009, the company’s revenues decreased. From 2009 and onwards, the revenue and profitability of the business have been growing.
For people of all ages, including women, men and infants, the brand provides casual footwear. The organisation has sold over 200 million pairs of footwear so far (Cross a). Some of Crocs’ biggest rivals are Deckers Outdoor Corp. and Steven Maddan (Sharma). The accompanying picture displays the profits of the three businesses;
(Sharma)
The organisation has been expanding its programmes internationally. The business has used numerous tactics, including joint partnerships and acquisitions, to draw on prospects in the global industry. For eg, to extend its activities, the firm acquired Jibbitz, Ocean Minded, Tidal Exchange, Fury and others.
Swot Analysis
Strengths
- The company has been successful in expanding its operations in the global market in a very short time.
- The sales of the company in European, Asian and American markets have grown drastically (Novinson). These are important markets for footwear. Thus it is one of the major strengths of the company.
Weaknesses
- The company does not have rich history in comparison to some of its competitors.
- There are still a large segment of potential customers that are not aware about the quality of Crocs shoes and footwear as well as the range of products Crocs is offering.
- The company is operating in different markets however it has not been successful in all the markets.
Opportunities
- The industry is expected to grow further. It is estimated that the value of the footwear industry would be $211.5 billion by 2018 (Sharma)
- Growth in the Asian countries is expected to be the highest. Estimated growth in Asian countries is 30.1%. The European market is the next most profitable market for footwear (Sharma)
Threats
- Recession influenced the sales of the company. Therefore economic condition of the company could influence the sales of the company in the future as well.
- Competition in the global market offers significant threat to the company.
Alternative Marketing Strategies
It is important for Crocs to improve the brand awareness. It has been identified that the company is relatively new in the market and many potential customers do not recognize the offerings and quality of the products of the company.
Marketing Strategies
Product
The company offers a range of casual products for people of all ages. It is important for the company to slightly modify the products considering the cultural needs and values of the society.
Price
Crocs need to modify the prices according to the consumer purchasing power in different global market to further increase its sales.
Place
The company has presence in 125 countries (Cross a). However, it is important for the company to expand its retail stores in different countries to further increase the sales.
Promotion
Promotion in the next few years will be important for the company’s future. In the minds of clients, the business wants to raise brand recognition and show a better brand profile. Therefore the task of promotion would be important.
Long and Short Term Projections
In the short term, Crocs need to start promoting its offerings by using different tools such as billboards, social media marketing, online marketing including Google Adwords and others. This would allow the organisation to raise brand recognition and to show a positive picture of the business. This short-term tactic would also be beneficial in bringing further consumers to the company’s discount store and website. In the long run, the company needs to increase its retail outlets as this will help in increasing the sales of the company. In the long run, the company should be able to report a revenue growth of 30% annually. Therefore the sales would be around $2 billion by 2015.
Conclusion
The report has presented a brief marketing plan of Crocs. This marketing plan has analyzed the market and has presented important marketing strategies that can be significant for the success of the company in the global market.
Works Cited
- Nichols, Chris. Crocs: Buy Stock in the Slip-On Shoemaker, Analyst Says. Yahoo! Finance, Oct. 2012. 22 Apr. 2014. https://finance.yahoo.com/blogs/the-exchange/crocs-buy-stock-slip-shoemaker-analyst-says-215807359.html
- Sharma, Sharda. Can Crocs Turn Its Business Around?. The Motley Fool, Jan, 2014. Apr. 22. 2014. 2014. https://www.fool.com/investing/general/2014/01/22/can-crocs-turn-its-business-around.aspx
- Novinson, Eric. Crocs and the International Shoe Market. The Motley Fool, Mar. 2012. Apr. 22. 2014. https://beta.fool.com/enovinson/2012/03/10/crocs-and-international-shoe-market/2738/
- Crocs a. Fact Sheets. 2013. 22 Apr. 2014. <https://company.crocs.com/fact-sheets/>
- Cross b. Overview. 2013. 22 Apr. 2014. https://investors.crocs.com/phoenix.zhtml?c=193409&p=irol-irhome