Going Direct…Globally

Jay Custard, Global Online Marketing Director

Regarding Forward Looking Statements:

This presentation may contain forward-looking statements, estimates or projections that are based on our current expectations. Any such statements, estimates or projections are subject to risks and uncertainties that could cause the actual results and outcomes to vary materially from these statements, estimates and projections. These risks and uncertainties are discussed in our filing with the Securities and Exchange Commission (SEC) including, without limitation, the Crocs, Inc. Annual Report on From 10-K for the year ended December 31, 2009 and subsequent filings with the SEC prior to the date hereof. Crocs, Inc. undertakes no obligation to update its forward-looking statements upon the receipt of new information, future events or otherwise.

History

The Crocs Story

 Started as a "one shoe" company  First meaningful sales in 2002  Public offering February 8, 2006  Quickly established a well-recognized global brand

The Crocs Story

The Crocs Story

The Crocs Story

The Crocs Story | What Happened?

 A "Perfect Storm" - Crocs experiencing dramatic growth as recession hits  Growth outpaced supporting infrastructure, stressing service levels  Sudden economic downturn triggers decline in demand and increase in inventories  Downturn in business triggers need for cost and inventory realignment  Increasing number of imitators impacts sales in some markets  Brand dismissed by some as a fad

The Crocs Story | What Happened?

 A "Perfect Storm" - Crocs experiencing dramatic growth as recession hits  Growth outpaced supporting infrastructure, stressing service levels  Sudden economic downturn triggers decline in demand and increase in inventories  Downturn in business triggers need for cost and inventory realignment  Increasing number of imitators impacts sales in some markets  Brand dismissed by some as a fad

The Crocs Story | THE AFTERMATH  Large, loyal and passionate consumer base  Iconic brand status and high brand recognition  Worldwide distribution - 128 countries  Industry leader in injection-molded footwear design and production – Croslite  Love 'em or hate 'em, they are in the conversation!  Lack of Demand  Lack of access to the consumer through shrinking wholesale business

The Crocs Story | MAIN CHALLENGES

The Way Forward

The Crocs Story | THE WAY FORWARD  Get Access to the Consumer  Display the full breadth and depth of the product  Take it to the World

Re-enter the Conversation

Change the conversation…Make some Noise

One shoe phenomenon

Enduring footwear brand

Reinvigorate core business Re-introduce innovative view on footwear Rejuvenate expressive brand personality Leverage our unique technology story

Past Advertising Efforts

Heavy on sponsorships Event focus Predictable Indicative of “Supply-side” mentality Conversation happened with us on the sidelines looking in

Video

Marketing Overview

Be More Direct…

Why Go Direct?

• • •

Control our own destiny Guaranteed access to the consumer Display the full range of the product

• • • •

Huge opportunity across the globe Quick to market Close to the consumer Endless aisle

• Standardize systems • Ecommerce Platform • Analytics • Reporting

Standardize Operations and Marketing • • • • Built an internal digital ‘agency’ Extremely efficient structure Regions become sales and marketing hubs Leverage strategic vendor partnerships

Linkshare

• Our customers don’t think of their lives in terms of ‘channels’, neither should we. • Blur the line between online and offline…the customer doesn’t care how you do it, but they expect it.

Traditional Channel Structure

Online Wholesale

Retail

Go Forward Strategy

Online

Retail

Wholesale

Go Forward Strategy…Battles are won where there are points of intersection. Online

Retail

Wholesale

Buy Online, Pick up in store Online

Retail

Wholesale

Buy Online, Pick up in store Online

Drop ship programs

Retail

Wholesale

Buy Online, Pick up in store Online

Drop ship programs

Retail

Wholesale

Pay on Scan Sell thru Data

The New Customer Paradigm

 Customers are empowered as never before  They enjoy the lowest switching costs in the history of commerce  They have more options than ever before

Switching Gears

What we learned along the way

1. Listen to the consumer
• Analytics provides: • What • Where • When • How

• But what about the Why? – Surveys – Testing – Experimentation

2. Performance Based Marketing
• Are you leaving money on the table? • Understand your margins, determine your ROI/CPA and spend to your target. • Best pay-for-performance online tactics: – PPC – Affiliates – Pay-for-performance ad networks

3. Have a defined role for your website
• Is it a flagship store? • Is it a place to locate hard to find colors & sizes? • Is it a discount channel? • Is it MSRP only?

4. Build a robust customer database, capture at all touch points
• Events • Newsletters • Contests • Promotions • Point of Sale

5. Product is king. Treat your web store like a brick and mortar.
• Buy & forecast sales. • Utilize one of your retail buyers or hire your own. • Determine how you will dispose of excess inventory. • Inventory Turns, Out of Stock metrics.

6. Find ways to partner with your wholesalers and/or vendors.
• Share sell-through data • Analytical data by geography, etc. • Email templates/graphics/product imagery • Drop ship program

7. Consider outsourcing aspects of your ecommerce business.
• • • Fulfillment Customer Service Returns

8. Establish a pricing and promotions committee.
• Representatives from all channels. • Clear/defined process & escalation paths. • Rules of engagement.

9. Social Media isn’t a place for corporate PR.
• Be an active part of the conversation • Don’t act like a corporation…be authentic to the tool • Social is messy, and people are okay with it.

10. Mobile is the next great opportunity…that no one has figured out.
• Don’t wait on the sidelines • Look for opportunities now and test, test, test • Start small with a simple SMS program to understand your market

CHANNEL2010—Use it! jcustard@crocs.com @jay_custard

Sign up to vote on this title
UsefulNot useful