A STUDY ON 4P’s

for
CROCS INC.
(Footwear manufacturing Company)

Submitted by:

Vishmita V
Roll Number: 26180
Batch & Academic Year: 26 & 2020-21

Subject: Marketing II

TERM II

Xavier Institute of Management and Entrepreneurship (XIME)

Bengaluru

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 CROCS INC.

Vision- “Everyone Comfortable In Their Own Shoes”

Tagline- “Come as you are”

 INTRODUCTION:
Crocs, Inc. is an American company, based in Niwot, Colorado, that manufactures and markets the
eponymous line of footwear, foam clog shoes.
These wild, wacky and wonderful clogs were born in 2002 by three innovators: Scott Seamans, Lyndon
Hanson, and George Boedbecker Jr. Boedbecker brought them all together as he knew Hanson in high
school and they both attended the University of Colorado. Furthermore, Seamans knew Boedbecker
through their shared love of sailing. So unsurprisingly, whilst all three were sailing in the Caribbean
they came across a new boating clog made by the Canadian Company: Foam Creations. They were
using a new material called Croslite. They discussed improvements and on returning home they quickly
acquired the rights to foam creations manufacturing process. It wasn't until 2004 Crocs completely
secured exclusive rights to the Croslite technology.
The three were a compatible trio, with Seamans tweaking the design, Boedbecker became CEO and
lined up investors whilst Hanson oversaw the operations. Through this process they made a really,
really, really comfortable shoe. The first Crocs style they launched was named 'the Beach'. Whilst the
outrageous clog may have been created on a sailing trip, it wasn't just boaters who wanted the bold,
comfy brand on their feet. Soon millions of people were buying them.
It didn't take long for a women's style to be introduced in 2003 named the 'Nile'. Then in October 2006,
they also purchased Jibbitz, a manufacturer of popular accessories that snap into the holes of Crocs
shoes. Afterwards Crocs continued to acquire various other companies in the footwear and fashion
industry to increase its brand and product range. These included a women's wedge range and some very
funky trainers. Just because they are a relatively young brand does not mean they have neglected social
responsibility. No, in fact the total opposite. In the past years Crocs have donated one pair of Crocs
shoes every minute. This is through the programme called 'Crocs Cares', in which three million shoes
have been donated to countries such as Kenya, Afghanistan, Cost Rica, Fiji and many less economically
developed countries.
Crocs are also very environmentally aware, having recently changed their packaging to save nearly
640,000 lbs of landfill waste. That is more than 900,000 crocs saved in waste. Furthermore, it only takes
1.6kwh of energy to make one pair of croc shoes.
In 2019, the global net revenue of Crocs amounted to approximately 1.23 billion U.S. dollars. In
contrast, the global net revenue amounted to 1.2 billion U.S. dollars in 2014.
So, the phenomenal Crocs seem unstoppable as just before their tenth anniversary they had sold more
than 200 million pairs in more than 90 countries, reaching sales revenues of $1 billion. Consequently, it

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seems the love and hate relationship of Crocs is here to stay as they continue expanding and developing
their range of clogs, sandals, shoes and boots.
Crocs have brilliantly carved out a niche for themselves through celebrity endorsements and
collaborations with the likes of Post Malone, Pleasures, Alife, and Balenciaga, and most recently with
the Justin Bieber x Crocs Classic Clog, which could very well prove to be the brand's biggest collab to
date.

Crocs have become a practical staple in households and professions, but not necessarily one loved for its
aesthetics. The company knows Crocs aren't the most head-turning piece of design, but they're certainly
fit for purpose; Crocs listens to its key consumers.

 Objectives:
All the strategies are designed to achieve certain SMART formulated short- and long term objectives.
All of the goals set fall under the wing of the company’s strategy.
Short Term:
1. Crocs retail store count should reach 200 by the end of November 2010
2. Increase in the number of retail stores selling crocs to 15,000 by the end of December 2010
3. Expand product line to carry 150 styles by the end of December 2010
4. Crocs Gators brand should have reached the commercialization phase and have at least 10 different
shoe offerings on the market by the end of December 2010.
Long Term (1+ Years)
1. Over the year 2011, Crocs should have 350,000 units of footwear sold
2. The value of a Crocs stock on the Nasdaq stock exchange should exceed $18 by the beginning of
January 2011
3. Expand product line to carry 350 styles by the end of December 2012

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4. Over the year 2012 Crocs should have a positive net income balance of 125 Million 5. Market share
of YOU by crocs should exceed 10% in the domestic female footwear market by the end of December
2012.

 Segmentation, targeting, positioning in the Marketing strategy of Crocs:

Crocs has always had a data-driven, customer-centric approach to marketing. Since its inception in
2002, Crocs experienced incredible growth worldwide, selling more than 200 million pairs of shoes in
more than 90 countries, and reaching $1 billion in revenue in 2011. Customers and transaction data grew
at breakneck pace, as well as the breadth and complexity of Crocs’ marketing activities.
In 2014, the Crocs marketing team was given the mandate to transform Crocs’ online business by
becoming less reliant on promotions and discounts. The team was excited by the opportunity to improve
Crocs’ profitability. At the same time, the marketing team knew plenty other companies that reduced or
eliminated promotions and were faced with customer dissatisfaction, increased churn, and shrinking
revenue.
Crocs use psychographic and demographic segmentation strategies with variables such as age, gender,
location, marital status and income groups so as in order to serve the changing needs of the consumers
in a better way.
Targeting strategy is used by the companies to understand that whether to have same products for all
consumers or different products for different customer groups. Crocs use differentiated targeting
strategy to target customers who look for casual styled footwear, those who look for mix and personal
look styles.
Positioning helps in understanding where the brand stands in the mind of the consumer. Crocs use
value-based positioning strategy to position itself as a brand offering comfortable and styled casual
footwear products which suit customer’s personality.

 Competitive Advantage of Crocs:

Focused Product Range: Crocs have limited number of product offerings such as clogs, sandals like flips
& slides in its product portfolio which is helping the company to be focused. It is one of the 10th largest
non-athletic brands globally.
Strong & integrated supply chain: It has sold more than 55+ million pairs last year through its
wholesale, 500+ company owned retail outlets and e-commerce websites. It closely works with its
logistics networks for operational efficiency and optimizing its distribution channel.
Association with celebrities: The Company have a strong presence in the social networking sites with
more than 5 million followers and the brand has been associated with celebrities such as Drew
Barrymore, John Cena, Yoona Lim and Henry Lau in the recent times.
Due to the presence of counterfeit products & high bargaining power of customers it is very difficult for
these players to sustain in the market. The industry is growing due to changing lifestyle, the growth of
the developing nations, the economics of the population & their migration from Rural to urban areas but
at the same time demand supply mismatch & idle inventory is resulting in shrinking margins of the
players in the industry.

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  CROCS STAYING AHEAD OF THE COMPETITION:
In 2002, Crocs, Inc. was founded. A rapid growth in demand of these ‘one of a kind’ shoes impressed
the whole industry. Most competitors viewed Crocs as an ugly shoe, which in turn would not appeal to
many customers. But, in various segments the shoe was very attractive due to their low weight, comfort,
slip-resistance and functionality. Especially in nursery, catering and boating huge demand arose.
Besides the fact that Crocs were used by professionals; after a short period of time, people considered
the anti-slip shoe as a fashion statement. The Croc product succeeded beyond the founders’ wildest
dreams and profit kept coming in. However, after four years the market started to saturate. Competitors
and customers thought of the Crocs to be a ‘one trick pony’. Although profits remained very high and
market share for Crocs was favorably, Crocs needs to prevent an expected decrease in both of these
aspects. Croc wants to tackle these problems and wants to ensure profits in the future. It faces several
intense challenges.
First of all, competitors find it easy to imitate the popular Crocs concept. Minor modifications can make
sure that Crocs’ patent is not offended. The imitators are mostly easily accessible and are less expensive.
How can Crocs make sure to maintain consumers and obtain the ones that have previously chosen for
the ‘imposter’ Crocs?
Second, Crocs faces severe competition from established competitors who run a more efficient
distribution system. Sketchers is one of the main rivals that enhance established distribution channels.
By doing so, they are able to take more in-store display spots. The limited distribution channel of Crocs
can keep a fair number of customers away.

 Competitor Analysis:
Comparing the results to its competitors, Crocs Inc reported Total Revenue increase in the 3 quarter
2020 by 15.66 % year on year.
The sales growth was above Crocs Inc 's competitors average revenue growth of 6.26 %, recorded in the
same quarter. With net margin of 17.11 % company achieved higher profitability than its competitors.

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DIRECT COMPETITION:

INDIRECT COMPETITION:

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Crocs is designed for broad appeal across income brackets, ages, and genders. Therefore, to decide on
the crocs competitors we had to made use of benefit segmentation which requires finding the major
benefits people look for in a product class. The principal elements of competition in the footwear
industry include brand awareness, product functionality, design, quality, pricing, customer service,
marketing and distribution. For the traditional Crocs clogs, the first two characteristics that stand out are
the weight and colors offered. Crocs stand out with 16 different colors offered for their crocs and a
weight of only 12ounce. The Price of crocs is not the lowest but on the lower half of all mentioned
brands. Crocs is the only brand that has not specified a target group and aims to reach all customer from
4 to 104 years.
Crocs can find itself in the average price range but has the most employees, which indicates the
operational force and size of the company. Most competitors try to recreate the croslite material with
Polyurethane, however only crocs can offer shoes with this material. For the water orientated Ocean
Minded brand, Quicksilver is its main competitor due to their bigger size and larger brand awareness.
Quicksilver is also featured in many retail stores and has greater store presence. With the exception from
Olukai, the sustainable lifestyle flip flop brand is in the higher price segment and will have to compete
on delivering better products than the competitors. Again, the lightweight and durable Croslite material
distinguishes ocean minded from the rest.
YOU by crocs is facing the biggest competition with numerous brands offering shoes for the female
footwear segment. However, YOU customers will have a strong attitude towards the importance of
comfort in combination with style. Competition will be on price, quality, brand awareness, brand equity
and design. Biggest competitors that have this same emphasis are Clarks, sketchers and aerosoles.
Sketchers currently has an advantage in established distribution channels, where the Sketchers brand has
taken the in-store display spots in all major retailers.
Looking at the competitors for the Bite brand, Columbia Sportwear Company has the largest product
diversion of all, it is a experienced company with long established well-selling products. However, Teva
and Keen only sells shoes and are thus more intense competition for Bite. Teva’s product line
correspondences the most with Bite’s product line. Keen only has tough and somewhat nicer looking
shoes.
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For Crocs accessory items, Jibbitz is facing little competition. There are various brandless products on
the market but not of decent size to compete fully with crocs. One of the few products sold that do have
a brand on them are from Zig-A-Roo’s which offers their products mainly on Ebay.
Other than the brands named, the market has become filled with more and more “imposter “crocs. These
imitators provide more accessible products at a third of the crocs store price. However, strong customer
loyalty makes state no other shoe can replace their crocs.

 Croc’s core competencies:

1. Croslite material was revolutionary; so was the design.
2. Crocs has a revolutionizing supply chain: produce based on customer demand, no huge lead
time. This model allowed retailers to place smaller pre-books and to order within a season.
3. Supply chain is vertical: They brought supply chain, warehousing, and raw material in-house.
4. They increased their manufacturing sites
5. Could move molding machines and molds between production locations to match demand.
6. They diversified into new product bases, while still keeping the advantage by using Croslite.
7. Focused equally on both small and large retailers
8. Word of mouth marketing

How do they exploit their competencies in the future?

1. Vertical integration – Acquire more warehousing and distribution, raw material production,
molding machines etc: Improve supply chain further. The supply chain of the organization is
vertically integrated. This vertical integration enables the organization to fulfill the needs of the
consumers in a more effective and fast manner. In addition to that, the organization does not stop
its product range on a single product, instead it kept on producing various products that can be
used for a number of purposes, such medical or collegiate.
2. Growth by acquisition – Acquire small companies whose products can be leveraged using
Croslite
3. Growth by product extension – Develop new product categories; enter new markets. Disney was
a hit; do more such licensing projects.
Much of the company’s growth was made possible by a highly flexible supply chain which enabled
Crocs to build additional product within the selling season. The normal model used within the fashion
industry was to take orders well in advance of each selling season, and produce to those orders, with
relatively little additional production. If demand was far in excess of this production, there would be
stockouts and the company would lose the ability to capture revenue for that season. The product might,
or might not, be in fashion the following year, when production would again be based on pre-season or
ders.
The organization was able to generate 847 Million dollars in terms of revenues and168 million dollars in
terms of profits in the year 2007, only six years after the launch of its products. After the generation of
such huge amount and attainment of great success, the organization, unfortunately, move away from the
blue ocean strategy and avoided the very basic foundations that led the organization towards great
success.
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The organization kept on attaining tremendous rates of growth on the basis of its wide array of products.
The success of the organization primarily depends on the formula of Croslite. Croslite is a light, low
cost and flexible material, which is being used in the products of the organization. Another important
critical success factor of the organization is its highly flexible supply chain.

 Product segmentation:
Crocs are made in a variety of styles and colors. The Classic styles are available in more than 20 colors;
most other styles are produced in a palette of four to six colors or two-color combinations. Thus, there
are different styles for each season.
Crocs also sells other fashion accessories. Jibbitz are decorations that can be clipped to the ventilation
holes in the shoes. These include designs, mainly aimed at children, which feature Disney characters.
The company has also released a line of purses in a variety of colors.
In 2008, the company entered the golf shoe marketplace, acquiring golf shoe manufacturer Bite
Footwear. A Croc-styled pair of golf shoes, the Ace, was introduced.
In 2020, in response to the coronavirus pandemic, the company launched "A Free Pair for Healthcare"
offering healthcare workers a free pair of the comfort shoes. Additionally, Crocs sent out 100,000 pairs
of shoes to hospitals to be distributed to staff.

According to the American Apparel and Footwear Association, the shoe market in the U.S. can be
segmented by six different product classes:
1. Men’s athletic footwear
2. Children’s athletic footwear (Incl sneakers & outdoor/hiking boots) (Incl sneakers &
outdoor/hiking boots)
3. Women’s footwear
4. Men’s footwear (Incl. dress & casual footwear) (Incl. dress & casual footwear)
5. Children’s footwear
6. Women’s athletic footwear (Incl boys, girls, infants, & toddlers) (Incl sneakers & outdoor/hiking
boots)
Crocs footwear product range is divided into 3 categories: everyday, style and sport.
With the initial introduction of the popular Beach and Cayman models from the everyday category,
Crocs started in the Women’s, Men’s and Children’s footwear segment. Through its style category,
which includes various dress shoes, Crocs is present in the Women’s Footwear and Men’s Footwear
segment.
Crocs expanded its Croslite products to include a variety of new styles and products and have extended
product reach through the acquisitions of new brands Jibbitz, YOU, Bite and Ocean Minded.
With the acquiring of Jibbitz, which produces unique charms specifically suited to fit into Crocs shoes,
Crocs expanded into the Children’s footwear market. Though Ocean Minded, which produces sandals
primarily for the beach, action and adventure market, Crocs deepened its presence in the Women’s,
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Men’s and Children’s footwear segment. By way of acquiring Bite, a manufacturer of performance
shoes and sports sandals sold worldwide in five categories, including, golf, adventure, healthy lifestyle,
travel and watersports, Crocs within the sports category added the Athletic Footwear segment for
Women, Men and Children to its target market.
Closing out is YOU by Crocs™, a women’s fashion line that combines the comfort of Croslite with
fashionable styles, which strengthens crocs position in the Women’s Footwear segment.
Crocs boasts the footwear as being ideal for casual wear, as well as for professional and recreational
uses such as boating, hiking, hospitality and gardening. Crocs expanded its product line to 25 models in
2006, over 250 models in 2007 and over 270 models in 2008, including Ocean Minded, YOU by
Crocs™ and Bite footwear models.
In addition to footwear products, Crocs markets a line of branded apparel and other accessory items that
are intended to increase awareness of the Crocs brand.
Product Line and Product Mix:
Initially, Crocs started by introducing original clogs. The wide public that thinks of Crocs, mainly
considers these vitally coloured shoes. However, through the years, the company has expanded in
various directions. Apparel, accessories and gear were all introduced to utilize the new, successful
technology called Croslite. In this way, we imposed product line stretching. The new items are
noticeably different.
The Crocs product range is divided into three categories: everyday, style and sport.
The everyday product range is composed of fully molded products, which are closest to our core
products and targeted widely to several distribution channels. The style product range consists of more
fashionable silhouettes targeted towards higher-end department stores. The sport product range includes
sport inspired products that offer a Crocs point of view for active end uses like boating, walking, and
hiking.

 Conclusion:
Crocs Product Line Segment:
1. Crocs Everyday Women’s, Men’s and Children’s footwear
2. Crocs Style Women’s Footwear and Men’s Footwear
3. Jibbitz Children’s Footwear
4. Bite Women’s Footwear and Men’s Athletic Footwear
5. Ocean Minded women’s, Men’s and Children’s footwear
6. YOU by Crocs™ Women’s Footwear

 Demographics:
Crocs didn’t focus on particular demographics or segments. It designed for broad appeal across income
brackets, ages, and genders. However, several factors that influence the operations of Crocs are
changing.
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  Social and Cultural Impression:
Crocs took on some cultural icon status as lifestyle/attitude Brand, where people either love it or they
hate it.
One the one hand, Crocs shoes have become all the rage for all ages. Websites such
aslittlerubbershoes.com, formerly known as crocfans.com, keep hold of all celebrities that wear crocs
and the developments around the crocs company. Crocs, Inc has an advantage over imitators with its
customer loyalty. These True Friends with high customer loyalty claim that no other shoe can replace
their crocs.
The shoe itself attracts attention and when this attention is expressed the owners communicate their
passion and loyalty for the brand. On the other hand, IHateCrocs.com is dedicated to the elimination of
Crocs. They believe that Crocs are just a fad of an obviously unfashionable nature. Especially the males
and teenagers, who tend to assign big value to design, fashion and style, have rejected to wear crocs.
The footwear is designed for broad appeal across income brackets, ages, and genders.

 Psychographics:
Brand Ruggedness Lifestyle
Like to play outside
Comfort shoes & Easy to clean
Attitude: Comfort over looks
Although recent design improvements might have slickened up the look of crocs, the main factors
behind its success are the light weight and comfort of the shoe.

LittleRubberShoes.com came up with 10 Reasons why to wear Crocs:

1. Nothing is softer or more comfortable
2. Ultra-hip, Italian styling with molded foot support
3. They are hardly there (less than 6oz.)
4. Slip resistant
5. Air ventilation ports keep your feet cool
6. Sterilized in water and bleach
7. Non-marking soles
8. Easy to maintain
9. Resistant to bacteria and odor
10. Water and sand pass through air vents

 Core Customer Value:

Crocs wanted to solve various problems for customers concerning the shoe industry. First of all, they
wanted to provide a comfortable, light weight pair of shoes. Especially nurses and employees who spent
most of their day on their feet seek these items. Secondly, the non-slip sole would keep both working

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people, as well as recreational users safer. At last, Crocs offers a shoe that lasts long and can be worn
during all seasons in a year.

 Product:
The Crocs clogs feel nearly weightless. This is because it is made of Croslite, a closed cell resin
material. This particular material enables the shoe to mould to your own feet. The soles are non-marking
and slip resistant. The front of the shoe (toe box) includes holes that ensure ventilation.
In order to keep Crocs attached to your feet, a heel strap is placed at the back of the shoe. Concerning
their clogs, they added the brand Ocean Minded.

They have translated their core competencies in this product, by emphasizing comfort and durability.
Ocean Minded consists out of sandals for men and women. Crocs, Inc. also created a line called YOU
by Crocs. This product mainly targets fashionable women.

Crocs is well-known for its unique clog style shoes, which accounts for more than 45% of its footwear
sales.

Still, comfort is the key aspect of this item, although style and ‘sexyness’ are elements that are built on
strongly. Another item that has been added is Bite. Bite has become a wholly subsidiary of Crocs Inc. in
2007. The officially patented Croslite technology was put to practise in this shoe as well. By adding a
golf shoe to their product mix, they entered another market (sports). At last, the company decided to
produce apparel items as well. It exists out of Jibbitz and t-shirts. Jibbitz are the items that can be placed
on the Crocs clogs, as an additional fashion item. T-shirts include several prints with the Crocs logo.

1. Sells its products under 5 broad categories, and each of these serves as separate product lines. All
of its products are sold under the brand name of.
2. Sells products with a lot of variety available, which allows customers to select the product
variety that best suits them.
3. Sells products that are highly differentiated, with various features offered to customers that
competitors don’t offer. Its products are therefore considered to be unique.
4. Its products are perceived to be of higher quality than that of competitors. Therefore, customers
are willing to pay a higher price for these.
5. Sells products that are famous for its traditional design that is also practical for customers to use.

 Augmented Product
Crocs introduced a few additional consumer services. If the customer is not satisfied, it can return their
item within 60 days. Compared to other manufacturers, this number is fairly high. The item needs to be
in a resalable condition though and can only be returned if unworn. Crocs are also covered by a 90 day
warranty, which means that if one of the items is damaged before the end of this period, they offer a
new, similar product. Customer service also replaces broken straps and ‘rivets.
When you return an item because it wasn’t quite right using the return process on a purchase done
through the crocs online channel, you’ll receive a $5 credit toward your next purchase at crocs and
Crocs will ship it to you for free

 Price:
Croc inc. uses a Value-based pricing, which is setting a price based on buyers’ perceptions of value
rather than on the seller’s cost. Assess customer Set target price Determine Design product to needs and
value to match costs that can deliver desired perceptions customer be incurred value at target price
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perceived value. Many shoe makers will push the base selling price of trendy shoes upwards. Crocs,
however, wants their product to be accessible to many people, so the base price point for their shoes is
$30. People desire the simple and advantages of the Croc shoes and are therefore willing to pay the 30
dollars.
However, the problem is that there are a lot of imitations crocs offered in stores. Where the ‘’real’’
Crocs cost around 30 dollars, these imitations cost around 5 dollars. Crocs does not ‘’utilize incentives
to retailers that offer sales promotions’’, thus Crocs does not sale its shoes for a cheaper price than 30
dollars. Idea behind this decision is that Crocs want to maintain its image as a premium mix of quality
and comfort.

1. Price Crocs existing pricing strategy is one that supports a “value-for-money” image. Itis
priced slightly lower than its competitors. However, it best represents the value and quality
of the product. Crocs footwear range from $30 to $100 and is generally affordable for
teenagers to working adults in Singapore.
2. Unit sales ‐ footwear 46,900 35,300 36,800Avg selling price n/a $ 18.35, $ 16.60
3. Sales ‐ Jibbitz (in $000s) $ 67,500; $ 47,200; $ 25,200
4. Price Breakdown– Core: $29.99-$49.99
5. Casual & Active: $34.99-$89.9
6. Style: $39.99-$140.00
7. Rubber boots as low as $39.9
8. Leather boots as high as $140.00, $29.99, $39.99, $140.00
9. Average price range is from $300 to $500
10. Flips range from $200-$300
11. Sneakers range from $600-$800
12. Boots range from $900-$1200

The current pricing strategy to set the price level that follows is a competitive based pricing strategy.
This is because the data on competitors is easily available due to a large number of competitors that
exists within the industry.
It also takes costs into consideration to set prices for a few products for which either information is not
available on competitors, or are costlier to make,
sells its products at a higher price than competitors. This is because it offers more features, and the high
price makes up for these.
It currently uses product bundle pricing as well, where products are bundled together and sold at prices
lower than the total of individual items.
It also uses an optional product pricing strategy for certain products, where it offers a price for the base
product and separate prices for the accessories that come along with it.
It charges a greater price for the products it sells online. This is because delivery costs have been
included in the price of the product.
Has fixed the prices of the final product.
Channel members; retailers and wholesalers, buy the product at a lower price and earn through their
own margins.

 PLACE:

Globally, Crocs has more than 500 retail locations and continues to grow. Their headquarters is situated
in Niwot, Colorado, United States. There are 26 stores in Hong Kong.

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For retail customers, Crocs changed the game by allowing them to order the game by allowing them to
order as few as 24 pairs and stock them in a matter of week, not months.

For consumer customers, Crocs designed a broad and extensive distribution system so its shoes were
available in a variety of retail outlets from specialty stores to department stores and large shoe store
chains. Crocs discouraged overstocking and the subsequent clearance sales allowing consistent pricing
in the long run.

Crocs bypass the traditional distribution models of competitors and instead adopt a distribution model
with similarities to Just-in-time-management. Rather than having retailers order large quantities months
in advance, Crocs has allowed retailers to order as few as 24 pairs of shoes. This strategy prevented the
problem of overstocking and having to sell Crocs on clearance.

This way, Crocs is able to fulfill customer needs by delivering current popular styles and colors quickly
to customers. Crocs is currently sold by over 11,000 retail stores. Croc uses a Vertical marketing system
(VMS) to act as a unified system and deliver products to the customers. Croc integrates successive
stages of production and distribution under single ownership.

Thus, Crocs owns the entire production process.

With this concept, Croc is not relying on others in order to produce the Croc shoe which allows Crocs to
take their company to the next level. With this being said, the past has shown problems with the addition
the online web-shop for crocs footwear. Other retailers, not under the Croc flagship, feel disadvantaged
and in response to Crocs online distribution decide to sell the lower-priced alternatives or products of
crocs their competitors instead.

 Distribution Channels:
Crocs customers are located in many countries worldwide, however the majority of sales are in the
USA.
The competition is heating up with new brands entering the footwear industry one of them is Sketchers.
Sketchers uses another type of retailers, while Crocs uses the more specialty product retailers, Sketches
and its “Cali Gear” captured all the major retailers and has easily taken the in-store display in these
stores. Although Crocs achieved a lot of success in expanding its product lines
Crocs Inc. sells its products through two marketing channels:
1. The first is where it sells directly to its customer through its online website. The second is where
it sells to wholesalers who then sell to different retailers located all over the country. These then
sell to its customers.
2. Crocs has its products presented with over 500 retailers throughout the country. It follows an
intensive marketing strategy where it tries to include its products on as many retailers as
possible. This ensures that its products are available to customers easily in different parts of the
country.

The company has a substantial number of online sales with frequent traffic on its websites. In order to
run its online operations, has partnered with numerous delivery service providers in order to provide
timely deliveries.

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It follows an omni-channel distribution system where it has integrated its online and offline stores to
allow customers easy access to its products.
has a network of over 500 suppliers that provide it with the raw materials needed for production. It has
developed a close working relationship with its suppliers allowing the company to work with them to
innovate and introduce new and attractive features on its products.

1. Wholesale Channel – 61% of sales

2. Crocs Retail Channel – 29.5% of sales
3. Crocs.com – 9.5%

 Promotion:

Crocs uses multiple media channels to promote its products. It uses traditional media, which includes an
advertisement on television and radio. This is beneficial due to its large reach and ability to attract a
large number of people. It uses online and social media advertising, which is cheaper and beneficial due
to the increasing usage of the internet.

It advertises on various social media platforms with a focus on YouTube, Facebook and Twitter due to
the high monthly usage of these. It has over one hundred thousand likes or customer following on these
pages, which are exposed to frequent content uploaded by.

Crocs undergoes various sales promotion taking part in various trade exhibitions and events around the
year. It is also involved in personal selling, with a large sales force to increase its presence in retail
stores. And it uses a percentage of sales method to determine the promotions budget for the year.

Method: Crocs used creative merchandising (out-of-box displays) and word-of-mouth marketing to
build buzz and momentum without having to spend as much as traditional manufacturers on advertising
or paying celebrities for endorsement.

Mascot: Key feature of promotions was Croslite in animated form as a lovable, kind-hearted foamy
friend of the feet.

Above-the-line: Crocs advertises their products through media such as prints in magazine and
newspapers.

Below-the-line: Crocs uses in-shop and shop-front activities/promotions and display boards to promote
to passing customers. They also promote their products through EDMs, DMs, and Facebook.

Relatively small advertising budget

Crocs: 5.58% of Sales ($44.1 million) spent on advertising
In 2019, Crocs' global marketing expenses amounted to approximately 83.2 million U.S. dollars. In
2017, the company spent around 59.1 million U.S. dollars on marketing. Crocs' global revenue
amounted to around 1.23 billion U.S. dollars in 2019.

Print advertisements:
1. InStyle Magazine– Internet advertisements

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 2. YouTube– Social media
3. Facebook,
4. Twitter
5. Little to no television advertising

In March of 2020, the shoemaker listened to loyal customers and responded with $40M worth of free
shoes, a move that nurtured brand love and trust, an executive said during an Advertising Week panel.
The Free Pair for Healthcare initiative soon followed, and in under two months, Crocs had donated
860,000 pairs — valued at $40 million, according to the brand's Head of Global Marketing Heidi
Cooley. By listening to customers at the onset of the coronavirus pandemic, Crocs was able to adapt and
spur 52.4% growth in e-commerce revenue in Q2, growth that was also driven by store closures and an
uptick in consumer desire for athleisure

Crocs Campaign:
The campaign of Crocs includes TVC, digital play, social media, banner ads, print media and contents.
Here are the campaigns-

1. “Come As You Are”

The concept of this campaign is built on the insight that it is not easy to judge others. The brand wanted
to understand the ability of customers by sharing the feelings of another through this campaign. The
campaign includes 30 seconds video starring the brand its brand ambassadors, in the spot they say
‘Come As You Are’ to the consumers and celebrate the difference. The company is seeking to make a
direct-to-consumer marketing campaign that can engage the consumers in the time of changing their
buying patterns.

2. “Find Your Fun”

The company launched this campaign in an effort to rekindle the excitement of using their popular
shoes. This ad featured the outline of a clog shoe in a variety of ways such as in fireworks display,
swimming pool and an island. The company stated that it has spent many million dollars on advertising
and it will grow in the future for the continuation of connecting consumers with the company. Croc’s
VP of global marketing, Terence Reilly said that without border and language we can show you clog
anywhere and people will come to know exactly what it is. The campaign reignites and reintroduces the
classical styles of shoes and the campaign is also used to showcase unexpected styles.

Small retailers played an important role in the enhancement of growth and productivity of the
organization. They contributed significantly to the revenue of the organization. In addition to that, they
also created a marketing buzz of the organization and played an influential role in establishing the
brand. In addition to that, they also provided the organization with the feedback and test marketing for
the new products

 Packaging:
Crocs offers a different direction and feel when it comes to packaging. Crocs stays away from the
conventional shoe boxes but instead, displays all its shoes on hangers. Thus, Crocs retail shops usually
do not have a store room to store their stock as all shoes are displayed outside.
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  Positioning/ Repositioning:

Crocs actually has a very large range of target audiences, whether they are adults, teenagers or children.
On the overall, Crocs shoes are categorized as casual because of the fun shape of the shoes and the
bright colour.

In this positioning graph, the competitors all lies on the casual side of the graph as many manufacture
shoes for hiking, sports and beach activities. This shows that Crocs can move towards the direction of
formal. However, they do not move towards the younger side as the main target is teenagers and young
adults.

 THE RISE, FALL AND RISE OF CROCS:

In an ironic turn of events, the brand’s long lasting and sturdy designs eliminated the need to purchase
another pair - even after multiple years - thus leading to a gradual decline in sales overall. When
production eventually caught up, the demand due to the aforementioned reasons had declined and the
company was left with a large surplus of product with no one wanting to buy it. Struck by the economic
downturn, the company incurred major losses and stood on the verge of bankruptcy.

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It was when John Duerden was appointed at the helm in 2009 that Crocs started demonstrating a gradual
comeback. Leading with a strategy that was strikingly original, Duerden began the company's
resurrection by, interestingly, closing down factories around the world - cutting nearly a third of the
company’s work force and simultaneously getting rid of all the excess dead stock. He shelved a majority
of the brand's apparel line and high-end women’s shoes and, in a stroke of sheer genius, turned them
into archives instead.
Having restructured and rebranded Crocs, Duerden’s tenure came to end early in 2010 after getting the
company afloat and on the slow rise to profitability. The company began growing at a rapid pace after
John McCarvel was appointed CEO. McCarvel opened back up retails stores across the globe and
pitched for new scopes of products apart from the classic clog silhouettes such as boots, heels, flats, and
even croc sneakers in an attempt to be established as a “four-season” brand. By 2014 Crocs had finally
regained their stance in the industry with statistics showing searches for the brand had increased by 32%
each month.
It was only after Andrew Rees took the reign in 2017 that the resurfaced fame and rise of Crocs saw an
exponential and steady growth. Rees re-centered the focus to ‘clog reverence and sandal awareness’,
along with a change in the marketing strategy, by targeting the Gen Z, one of the biggest markets to
cater to.
Working towards steering out of the simple functional shoe genre, Rees encouraged collaborative
campaigns with brands like Christopher Kane, Balenciaga and many more, while also tapping artists and
other creative enterprises. The brand also partnered with UNICEF, donating 5000 pairs of crocs to the
underprivileged sect of society, building on the sympathetic bridge with the audience.

Crocs have been promoted from being named ‘one of the 50 worst inventions’ to having uber successful
collaborations with some of fashions big league names. The company has served as a blank canvas to
brands and celebrity icons such as Chinatown Market, Pleasures, Justin Bieber, Bad Bunny, Post
Malone and even fast-food chain KFC, driving up their traction more than ever before. Take a look at
some of these notable collaborations below.

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