Crocs Marketing Analysis

1704 words (7 pages) Essay

1st Jan 1970 Marketing Reference this

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Crocs plan to continue to operate leases abut their retail stores. They want to reduce the cost so they also continue to assess the possibilities of cost reduction. Their assessment of possibilities of cost reduction will involve an evaluation of contracts for sponsorships, operating lease contracts and other contracts that require future minimum payments resulting in fixed operating costs. Any changes to these contracts may require stop the supply of fees or other charges in advance that could cost large numbers of money.

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(From 2010 annual report) NEED A WEB SITE CITATION

Their strategy is to maintain a flexible, globally diversified, low-cost manufacturing base. They believe that if they follow this strategy they can minimize production costs, increase overall operating efficiencies and make production and development times short. Their internal manufacturing capabilities help them to change production quickly as they need and respond to orders for high demand models and colors flexibly throughout the year, while outsourcing allows them to take advantage of the efficiencies and cost benefits of using contracted manufacturing services. They also contract with third-party manufacturers to produce certain of footwear styles or support their internal production processes.

(From 2010 annual report) NEED A WEB SITE CITATION

Crocs has its own standards of comfort, functionality and style. They want to enhance the awareness of the Crocs brand in the international arena. They set international goals in product design and development. They decide to create and introduce new and innovative footwear products in accordance with their standards of comfort, functionality, and style. We believe that we can think out a variety of different design ideas on a cost-efficient basis and evaluate trends more quickly by introducing outside sources to the design process. We devote to continuing to contribute to important resources to product design and development to sustain our commitment to innovation, execute our growth strategy and drive our global brand.

(company.crocs.com/news…/crocs-on-the-catwalk/ – United States)

1.” Our return to first quarter profitability underscores the resiliency of Crocs as a brand and as a company,” commented John McCarvel, President and Chief Executive Officer. “Revenues improved across all channels and across each region this quarter driven by strong customer reception to our products. We also turned a critical corner in our wholesale channel this quarter, where revenues were up in all regions for the first time in more than a year. Margins also improved as we benefited from our cost-savings initiatives undertaken in 2009. Our strategy to return to profitable growth in 2010 has not changed and this positive start to the year positions us well to execute against that plan.” (Crocs, Inc.2010 first Quarter Financial Results) (1.http://company.crocs.com/news-releases/crocs-inc-reports-2010-first-quarter-financial-results/)

2.”We are very pleased with our second quarter results, which show further strengthening of our global wholesale and consumer direct businesses” commented John McCarvel, President and Chief Executive Officer. “We believe sales are being driven by product innovation, improved service, and brand building initiatives as well as new distribution from the expansion of our company-operated stores and key wholesale accounts.  Importantly, our updated business model is generating enhanced profitability and higher cash flow.  We are encouraged with our recent performance and believe we have the right strategies in place along with the balance sheet strength to capitalize on the global opportunities still in front of us.” (Crocs, Inc.2010 Second Quarter Financial Results)

(2.http://company.crocs.com/news-releases/crocs-inc-reports-2010-second-quarter-financial-results/)

3.”Our improved operating results continued to be driven by growing consumer demand for our expanded product assortment.  After a strong summer selling season we began shipping significantly more of our back-to-school and fall products to our global network of wholesale accounts and distributors versus a year ago. We witnessed similar trends in our consumer direct channel where weekly sell-through rates of our new products exceeded internal projections. Our sales performance year-to-date has been very encouraging and helped fuel the significant increase in our spring / summer 2011 backlog.” (Crocs, Inc.2010 Third Quarter Financial Results)

(3.http://company.crocs.com/news-releases/crocs-inc-reports-2010-third-quarter-financial-results/)

4.”We had a good fourth quarter that concluded a year in which we achieved profitability in all four quarters for the first time since 2007,” said John McCarvel, President and Chief Executive Officer. “We reengaged the consumer during 2010 through great product and more effective marketing and merchandising programs. Our recent performance demonstrates we are succeeding at generating new demand and evolving into a year round brand as we continue to diversify our product line.  At the same time, we’ve made important investments in our operating platform to support our multi channel growth strategy and drive efficiency. Looking ahead, our backlog is up 57%, with all regions posting strong increases. We’re very pleased with the brand strength reflected in these future orders and we see continued potential for profitable expansion of our business.”(Crocs, Inc.2010 Forth Quarter Financial Results)

(4.http://company.crocs.com/news-releases/crocs-inc-reports-2010-third-quarter-financial-results/)

1. They believe it is their responsibility to give back to the communities in which they do business .This goal was accomplished, because they have donated millions of Crocs shoes to those in need in both the local and global communities they serve.

(1.2010 annual report )

2. They hope outsourcing allows them to take advantage of the efficiencies and cost benefits of using contracted manufacturing services. They also contract with third-party manufacturers to produce certain of footwear styles or support their internal production processes. This goal was accomplished for the reason that during the years ended December 31, 2010, 2009 and 2008, approximately 61.0%, 62.6% and 76.5% of net revenues, respectively, were derived from sales through the wholesale channel which consists of sales to distributors and third-party retailers. Wholesale customers include national and regional retail chains, department stores, sporting goods stores and family footwear retailers, such as Nordstrom, Journeys, Dillard’s, Dick’s Sporting Goods, The Sports Authority, The Forzani Group, Famous Footwear, DSW and Xebio, as well as on-line retailers such as Zappos, Amazon and Shoebuy.com.

(2.http://www.gurufocus.com/news_print.php?id=123815)

The company has policies on ethics and social responsibility. They believe that giving back has always been part of its culture, which said by John Carve, Crocs President and Chief Executive Officer. If some people or families suffer from big problems, they believe it is their responsibility to pay back to the communities in which they do business. Donating shoes has become the usual way they are able to help those in need throughout the world. Through Crocs Caressm , the company wants to make positive effect on the environment, employees and local and global communities.

(http://company.crocs.com/news-releases/crocs-inc-reaches-milestone-of-more-than-2-5-million-shoe-donations/)

For example,December 20, 2010, Crocs, Inc announced that the company has donated more than 2.5 million pairs of shoes as part of its Crocs Caressm corporate social responsibility program. Before the announcement, a donation of 20,000 pairs of shoes this week has sent to a number of Colorado nonprofits. They provide humanitarian aid to children and families in need as well as relief and development to under-privileged communities worldwide. Hundreds of USO (United Service Organizations) service members and their families, as well as low income families in Denver thought it a welcomed surprise this holiday season.

Crocs regularly partners with a variety of local and global non-profits, including UNICEF, Brother’s Brother Foundation and Feed the Children.

(http://company.crocs.com/news-releases/crocs-inc-reaches-milestone-of-more-than

-2-5-million-shoe-donations/)

1. Crocs has excellent management team, Charlie Johnson recently filled the newly created Global Creative Director position and Chris Ladd is serving as the VP of Global eCommerce. As we know, Charlie Johnson is famous and experienced in the footwear industry. He will lead to a strategic global adjustment of all crocodiles, including product design, marketing and sales of innovative efforts. Now he use the visual effect of integrating all brands, including retail commodities, advertising, mobile marketing and other creation element is responsible. Besides Charlie Johnson, Chris Ladd will spearhead efforts to enhance Crocs’ global internet business. Before he was the manager of Rebook international, a brilliant manager, which can bring Crocs a lot of business. Both of them are the core characters of Crocs. (1.http://company.crocs.com/our-company/management-team/)

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2. In terms of Crocs organization structure, the supply chain was in three stages. First crocs purchase the manufacturer of the product to have proprietary rights to the raw materials. Second, Crocs use contract manufacturers in different countries. Third, Crocs decided to bring some global operations which had been contracted out in house.  This was accomplished by developing company-owned manufacturing sites and warehouses located in strategic areas depending on need Value Chain.

(

2. http://www.oppapers.com/essays/Crocs-Organizational-Structure/538096)

The structure does follow the strategy.

Crocs plan to continue to operate leases abut their retail stores. They want to reduce the cost so they also continue to assess the possibilities of cost reduction. Their assessment of possibilities of cost reduction will involve an evaluation of contracts for sponsorships, operating lease contracts and other contracts that require future minimum payments resulting in fixed operating costs. Any changes to these contracts may require stop the supply of fees or other charges in advance that could cost large numbers of money.

(From 2010 annual report) NEED A WEB SITE CITATION

Their strategy is to maintain a flexible, globally diversified, low-cost manufacturing base. They believe that if they follow this strategy they can minimize production costs, increase overall operating efficiencies and make production and development times short. Their internal manufacturing capabilities help them to change production quickly as they need and respond to orders for high demand models and colors flexibly throughout the year, while outsourcing allows them to take advantage of the efficiencies and cost benefits of using contracted manufacturing services. They also contract with third-party manufacturers to produce certain of footwear styles or support their internal production processes.

(From 2010 annual report) NEED A WEB SITE CITATION

Crocs has its own standards of comfort, functionality and style. They want to enhance the awareness of the Crocs brand in the international arena. They set international goals in product design and development. They decide to create and introduce new and innovative footwear products in accordance with their standards of comfort, functionality, and style. We believe that we can think out a variety of different design ideas on a cost-efficient basis and evaluate trends more quickly by introducing outside sources to the design process. We devote to continuing to contribute to important resources to product design and development to sustain our commitment to innovation, execute our growth strategy and drive our global brand.

(company.crocs.com/news…/crocs-on-the-catwalk/ – United States)

1.” Our return to first quarter profitability underscores the resiliency of Crocs as a brand and as a company,” commented John McCarvel, President and Chief Executive Officer. “Revenues improved across all channels and across each region this quarter driven by strong customer reception to our products. We also turned a critical corner in our wholesale channel this quarter, where revenues were up in all regions for the first time in more than a year. Margins also improved as we benefited from our cost-savings initiatives undertaken in 2009. Our strategy to return to profitable growth in 2010 has not changed and this positive start to the year positions us well to execute against that plan.” (Crocs, Inc.2010 first Quarter Financial Results) (1.http://company.crocs.com/news-releases/crocs-inc-reports-2010-first-quarter-financial-results/)

2.”We are very pleased with our second quarter results, which show further strengthening of our global wholesale and consumer direct businesses” commented John McCarvel, President and Chief Executive Officer. “We believe sales are being driven by product innovation, improved service, and brand building initiatives as well as new distribution from the expansion of our company-operated stores and key wholesale accounts.  Importantly, our updated business model is generating enhanced profitability and higher cash flow.  We are encouraged with our recent performance and believe we have the right strategies in place along with the balance sheet strength to capitalize on the global opportunities still in front of us.” (Crocs, Inc.2010 Second Quarter Financial Results)

(2.http://company.crocs.com/news-releases/crocs-inc-reports-2010-second-quarter-financial-results/)

3.”Our improved operating results continued to be driven by growing consumer demand for our expanded product assortment.  After a strong summer selling season we began shipping significantly more of our back-to-school and fall products to our global network of wholesale accounts and distributors versus a year ago. We witnessed similar trends in our consumer direct channel where weekly sell-through rates of our new products exceeded internal projections. Our sales performance year-to-date has been very encouraging and helped fuel the significant increase in our spring / summer 2011 backlog.” (Crocs, Inc.2010 Third Quarter Financial Results)

(3.http://company.crocs.com/news-releases/crocs-inc-reports-2010-third-quarter-financial-results/)

4.”We had a good fourth quarter that concluded a year in which we achieved profitability in all four quarters for the first time since 2007,” said John McCarvel, President and Chief Executive Officer. “We reengaged the consumer during 2010 through great product and more effective marketing and merchandising programs. Our recent performance demonstrates we are succeeding at generating new demand and evolving into a year round brand as we continue to diversify our product line.  At the same time, we’ve made important investments in our operating platform to support our multi channel growth strategy and drive efficiency. Looking ahead, our backlog is up 57%, with all regions posting strong increases. We’re very pleased with the brand strength reflected in these future orders and we see continued potential for profitable expansion of our business.”(Crocs, Inc.2010 Forth Quarter Financial Results)

(4.http://company.crocs.com/news-releases/crocs-inc-reports-2010-third-quarter-financial-results/)

1. They believe it is their responsibility to give back to the communities in which they do business .This goal was accomplished, because they have donated millions of Crocs shoes to those in need in both the local and global communities they serve.

(1.2010 annual report )

2. They hope outsourcing allows them to take advantage of the efficiencies and cost benefits of using contracted manufacturing services. They also contract with third-party manufacturers to produce certain of footwear styles or support their internal production processes. This goal was accomplished for the reason that during the years ended December 31, 2010, 2009 and 2008, approximately 61.0%, 62.6% and 76.5% of net revenues, respectively, were derived from sales through the wholesale channel which consists of sales to distributors and third-party retailers. Wholesale customers include national and regional retail chains, department stores, sporting goods stores and family footwear retailers, such as Nordstrom, Journeys, Dillard’s, Dick’s Sporting Goods, The Sports Authority, The Forzani Group, Famous Footwear, DSW and Xebio, as well as on-line retailers such as Zappos, Amazon and Shoebuy.com.

(2.http://www.gurufocus.com/news_print.php?id=123815)

The company has policies on ethics and social responsibility. They believe that giving back has always been part of its culture, which said by John Carve, Crocs President and Chief Executive Officer. If some people or families suffer from big problems, they believe it is their responsibility to pay back to the communities in which they do business. Donating shoes has become the usual way they are able to help those in need throughout the world. Through Crocs Caressm , the company wants to make positive effect on the environment, employees and local and global communities.

(http://company.crocs.com/news-releases/crocs-inc-reaches-milestone-of-more-than-2-5-million-shoe-donations/)

For example,December 20, 2010, Crocs, Inc announced that the company has donated more than 2.5 million pairs of shoes as part of its Crocs Caressm corporate social responsibility program. Before the announcement, a donation of 20,000 pairs of shoes this week has sent to a number of Colorado nonprofits. They provide humanitarian aid to children and families in need as well as relief and development to under-privileged communities worldwide. Hundreds of USO (United Service Organizations) service members and their families, as well as low income families in Denver thought it a welcomed surprise this holiday season.

Crocs regularly partners with a variety of local and global non-profits, including UNICEF, Brother’s Brother Foundation and Feed the Children.

(http://company.crocs.com/news-releases/crocs-inc-reaches-milestone-of-more-than

-2-5-million-shoe-donations/)

1. Crocs has excellent management team, Charlie Johnson recently filled the newly created Global Creative Director position and Chris Ladd is serving as the VP of Global eCommerce. As we know, Charlie Johnson is famous and experienced in the footwear industry. He will lead to a strategic global adjustment of all crocodiles, including product design, marketing and sales of innovative efforts. Now he use the visual effect of integrating all brands, including retail commodities, advertising, mobile marketing and other creation element is responsible. Besides Charlie Johnson, Chris Ladd will spearhead efforts to enhance Crocs’ global internet business. Before he was the manager of Rebook international, a brilliant manager, which can bring Crocs a lot of business. Both of them are the core characters of Crocs. (1.http://company.crocs.com/our-company/management-team/)

2. In terms of Crocs organization structure, the supply chain was in three stages. First crocs purchase the manufacturer of the product to have proprietary rights to the raw materials. Second, Crocs use contract manufacturers in different countries. Third, Crocs decided to bring some global operations which had been contracted out in house.  This was accomplished by developing company-owned manufacturing sites and warehouses located in strategic areas depending on need Value Chain.

(

2. http://www.oppapers.com/essays/Crocs-Organizational-Structure/538096)

The structure does follow the strategy.

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