bombas marketing strategy

When a new team member joins Bombas, they become a part of the family, or hive, as the company would say. "It allows the brand to get engaged (participate) and activate (in a unique "Bombas" way) to both create impact and stand out in their brand category. Bombas built a successful eCommerce company selling a single type of product. Consider Bombas, a company that donates a pair of (well-designed, somewhat pricey) socks to homeless shelters with every pair sold. That approach allowed us to onboard new team members to keep the team lean, and not hire a bunch of people for channels that weren't yet proven out. Nick Westergaard is a strategist, speaker, educator, and author of Brand Now: How to Stand Out in a Crowded, Distracted World and Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. But whats nice about both of the items that theyve added to sales is that the number two most requested item in homeless shelters is underwear, and the number three is T-shirts. Bombas is not just selling high-quality socks, they are selling that amazing feeling you get about yourself when you help someone(emotions). But Ive increasingly become interested in looking at how firms will use pro-social aspects of their companies to attract consumers in. By focusing on a mission that affects their customers and their communities, the company has taken a mundane and utilitarian item and given it the ability to effect social change. ELIZABETH KEENAN: In this case, it seems to have been a good thing. ELIZABETH KEENAN: So, I first heard about Bombas actually from one of my students in class, several years back had mentioned that Bombas, they had worked for Bombas and understood what my interests were and thought that I would really like this company. BRIAN KENNY: Yeah, and maybe not only consumers these days, but employees too. ELIZABETH KEENAN: But my cold call was, how much would you pay for a pair of socks? At that point, there were 14,000 people that had complained to customer service. The venture firms want to mark up their books and if they can give you more funding or higher evaluation that allows them to go raise more capital.. Where homelessness might not affect a customer directly, supporting LGBTQ+ rights or donating to underfunded schools or a local womens shelter might. Four years ago, David Heath and Randy Goldberg learned what the most frequently requested item was at homeless shelters: socks. They wanted to sell socks with those properties. I recently asked her to share some of what she does to align Bombas brand pillars and corporate values. Not bad for a brand whose founders (David Heath and Randy Goldberg) started out just wanting their driving purpose to be getting socks to the homeless population. And socks, really themselves dont last very long, and sooner or later we have a hole in the heel or the toe and they fall apart. Since socks are a wear-through item, theres a lack of them at donation centers. Now, the case actually just debuted recently for the first time in class. Associate your business with a strong desire that the majority of your audience supports and help them fulfill it. BRIAN KENNY: So ,lets talk a little bit about the fact that theyve now started to look at branching into other product offerings. For example, Fab.com went bankrupt and Gilt Group sold for a fraction of what its last valuation was. In the process, theyve built a thriving, $50 million/year business. The first was to create superior socks, and the second was to support the homeless community. However, the cohort data for the customers who received that refund had almost two times higher lifetime value than the cohort who had a normal experience in Q4 that year. The lesson here is that crises provide an opportunity to double down on consumer relationships. They may adopt it over time and due in part to any number of pressures, whether external or internal that drive the need for focusing in on a mission-driven purpose. Last year they donated over 10,000 volunteer hours and hosted roughly 15 giving events per month with local partners in New York. Its a luxury item for over 640,000 people who experience homelessness in the U.S. annually.. bombas.com Top Marketing Channels. I saw one guy take his shoes off and on one foot he had wrapped a bandana around his foot and on the other, he'd literally wrapped his foot into a plastic bag to stop the boot from rubbing against it.. BRIAN KENNY: They feel good. How They Made Money is a publication thats focused on analyzing how rich individuals exactly generated their income. And what popped up was an organization called Hannahs Socks and Hannahs Socks donated socks. Socks are the number one most requested clothing item at homeless shelters, David Heath, cofounder and CEO of Bombas, tells We First. BRIAN KENNY: Do you think that this idea, this model of buy one, give one is going to become more prominent, particularly in a world where society is expecting a lot more of business? Basing your business model on philanthropy is a great way to garner attention from people who actively seek out opportunities to support a cause through mindful commerce. They haven't shipped my order. Then Business Insider did an article about it. Our guide covers the 4 P's of marketing and gives a breakdown of each step involved. In fact, actually, Ive, Ive spoken to a number of Bombas sock wearers just like you have, and interestingly enough, many of them didnt actually even know that they donated socks. The sock market hadnt really seen innovation in decades, so it offered a perfect opportunity for Bombas to stand out by creating a better product. But at least for Bombas customers, buying one pair of socks and donating a pair to someone in need makes them feel good. ELIZABETH KEENAN: No, they dont. BRIAN KENNY: And so, this is part of what the case identifies as the buy one, give one model. People started flooding customer service with questions about where their socks were. And were going to talk about that a little bit because they arent the cheapest. Do you think its because of the great material, high-quality cotton or merino wool? But in the case of TOMS, Warby and even Bombas, the items for the most part from the beginning, at least had been the same product they were selling, they would also then donate. ELIZABETH KEENAN: That is one way for growth, but it could be a risky approach for any company. Once they had their sock tech figured out, Bombasstill had to answer the question of whether socks for the homeless would be a mission that resonates with consumers the way glasses (Warby Parker) or shoes (TOMS) have been. Understanding that this is a grab and go type of product, they wanted to get pictures of these socks, the colors, and show the variety of socks that they had to sell and get those images out front. Do you think that the mission, and this would go beyond Bombas, but any firm that is focused on a purpose in this way, and that is built around a purpose, does that give them an edge in terms of attracting talent? They use these posts to engage with customers who share in their dedication to a social cause, as well as reinforce the feeling of charity that is tied to making a purchase through their service. Bombas: the preferred socks of True Believers. How did they turn an idea into a multimillion dollar social enterprise? The Bombas Marketing Team is responsible for bringing in new customers and growing their relationship to the company and its products. BRIAN KENNY: Yeah, its amazing. "It is especially so during times of rapid change in the world whichrequires employees and leaders within an organization to adapt and contribute in meaningful wayswhile still remaining true to who they are as a brand. The pandemic has also served to amplify Bombas' cause-marketing strategy. Theyve taken these values and transformed them into a $50 million business. Showing an internal focus on employee well-being supports the idea that Bombas truly cares. Your Next Move. He became incredibly depressed, as most people would, then turned to alcohol and eventually drugs, Bombas cofounder says. Yet in our inboxes, you'll remember we were all receiving marketing emails saying 'Here's our new spring collection,' or 'Get outside and stay active with our new X, Y, Z shoe.' My name is Brian Kenny, and youre listening to Cold Call on the HBR Presents Network. From the start, Bombas' co-founders knew an inspiring mission wouldn't be enough to drive sales. Today, Bombas requires all new hires to take 10 pairs of socks and hand them out to homeless people they meet within the first 2 weeks on the job. Bombas, a premium sock company that gives away a pair for every one it sells, has recently hit two major milestones: It exceeded $100 million in revenue in 2018 and has sold 20 million and given . And many of them stay because of the mission. Their plan was to design the ideal heel, a honeycomb arch support, a seamless toe, a blister tab, and stay-up technology. First, I was drawn in by their mission: for each pair of socks that Bombas sells, the brand donates a pair to the homeless. Find them on Apple Podcasts or wherever you listen. And I think Bombas has recognized that from the beginning, controlled growth has really served them well. In addition to diving into social issues, Heath conducted extensive product research. And you could see this controlled growth, both in their advertising and marketing, as well as in terms of product line expansions and extensions. Consumers are trying to find businesses that they can feel good about buying from. In the venture world thats like a bad word. Within the first day, theyd secured $30,000. Simple, concise and clear. Internal true believers naturally yield external true believers, and that's how brands become emotionally connected with their stakeholder audiences. And so they didnt really start to focus on sharing that story with the public until around 2016, when they created videos. Were now at more than 25M pairs donated and this video is still one of our best-performing pieces of creative. So maybe our listeners would want to hear a little bit more about other examples of firms that have adopted this model. Kate Huyett:One of the biggest ways that we've evolved is that we've expanded from just a few marketing channels - initially mostly Facebook and podcasts - to a broad range of channels. They decided to donate a pair of socks for every pair sold. ELIZABETH KEENAN: Absolutely. We've significantly built out our internal team - specifically, the actual channel management and creative teams because we ideate and produce the majority of our creative assets in-house. Abstract. Bombas Shopify-based Bombas began its DTC journey by selling socks. "2020 for Bombas was the year of what we call 'Brand Culture Thinking,'" says Keown. ELIZABETH KEENAN: So, one of the founders, David Heath had actually come across an infographic that indicated the number one requested item from homeless shelters is socks. This lens of Bombas' strategy shows the evolving role of marketers, particularly in an era of technological revolution and growing accessibility of data. As Bombas grows, so does its impact and aspirations. Marketing at Bombas. By 2021, it had become one of America's most visible. Bombas is also looking for new ways to give back, like getting involved in policy, opening homeless shelters and expanding into new product categories. And as the video educated me, that's the number one clothing item that those without homes need. And so that allowed us to get back to this conversation about ways of increasing willingness to pay in this space. How did they get people to even take that leap? ELIZABETH KEENAN: Absolutely. Today, it boasts 35,000 likes on Facebook, over 4,000 and 8,400 followers on Twitter, and Instagram respectively, and a popular Pinterestpresence. Whats one thing youd like them to remember? And so they felt like they could play in that space a little bit. Heath invested $18,000 of his own money to develop a minimum viable product (MVP). Bombas: helping in aerial flight. And so, the case, what it does is it centers around the companys success so far and the pace of growth that would best allow them to continue to effectively deliver on the two missions that they have moving forward. And I think the components that really matter will be the product and whether or not you can actually sell a high quality product at a price that allows the margin for you to make the donation and also to manage and control the growth of the donation side of your business. Harvard Business School assistant professor Elizabeth Keenan discusses the case, Bee-ing Better at Bombas. They did that by taking socks, a clothing item that's an afterthought for many people, and elevating them into something that customers would talk about with friends by attaching a social mission. When the team can talk honestly about the values their company promotes, it builds credibility and trust in the brand. Without the strong mission statement and value proposition, Bombas would not have been able to accomplish this. Talbot:To be a brand thats going to endure, that will be around for a long time, what kind of messages do you want your marketing to convey? To take advantage of the low prices, Bombas did some bargain brand-building on Facebook, Instagram, and other digital channels, shifting its messaging to talk about its charitable work--the. Socks are a small item but can have a big impact on someone's life.. Having employees that are truly engaged with the mission will add credibility to your brand. "When it came time to take action, we were just able to do a lot more of what we've already been doing, which is not only get socks and t-shirts to those in need, but then to team up with our partners who were reaching out to us, like Cleancult. ELIZABETH KEENAN: So, socks, generally, the commoditized socks that we think of that we buy multi-packs at times, theyre going for about a dollar to $2 a pair. My next question was, Once I get these products on everyone's feet, are they going to love it enough to come back? So were at a point where homelessness is increasing and access to resources, like donations and money have been decreasing because everybody is starting to pull inward and protect against this pandemic. You have the commercial side, and then you have the giving side. You are digital natives and you are the most diverse generation ever. And one thing that was really interesting that they said when we were talking was that it wasnt like they were trying to dramatically increase the cost of a car, this is something thats closer to the cost of a cup of coffee or lower. [CDATA[ ELIZABETH KEENAN: So, that moment, I think spoke to them and made them realize we may be onto something here. They turned to crowdfunding to find out. It's often a challenge for a marketer to weave both mission and product into the messaging. Partners dont always seek purpose. Siminoff and Bezos discovered they both put their email addresses on every product . But rather than going along, youve decided to take matters into your own hands and let your digital wallet do the talking. Without a company culture that actively and publicly demonstrates the companys professed values, their message would feel disingenuous. Huyett:We've focused as we talked about earlier on both product and mission. I know Ive talked to several people. One hint. The 4 P's of marketing are price, promotion, place, and productthe four key factors every marketer should use to guide their campaign strategy. The company also scales impact and builds community by hosting events and supporting team members to volunteer. After releasing a performance line and putting out related media, consumers value quality over purpose. Key 1: Bombas' story is their selling-point The story of Bombas is about more than just socks. So theyve donated like millions of socks. One-for-one brands workonly if customers buy into the cause. And by the middle of 2014, they had already sold $450,000 worth of socks. They keep costs down by limiting sizes and making larger orders. A great example of a time when purpose was more significant than product was when COVID-19 first hit. If you have any suggestions or just want to say hello, we want to hear from you. I guess that makes a lot of sense. The other thing they recognized is one of their core competencies was to figure out how to distribute supplies and items to those in need. The Bombas donation sock has features like ananti-microbial treatment and reinforced seams, designed in partnership with their giving partners. Do they also talk about the mission and the purpose of the company, or is that something that they let people discover? A successful crowdfunding campaign and media coverage fromShark Tankhelped amplify their message of social impact through one-for-one donation. And so dramatic increases in price for that type of product, they felt would work better than if they were working in a space where the base price of that product had started quite high already. According to the Harvard business review, When a company helps its customers to fulfill deep, often unconscious desires, the customers go from being fully satisfied to emotionally connected brand ambassadors. Your loyalty is reserved for brands that support social justice and economic equity, and those that give back to society in meaningful ways. You have high expectations of the role that business should play in the world, but by a margin of five to one, you just dont trust them to do it. Some of that money went to purchasing the first product run, some of it went to building a website. The hashtag can also be used to show the product in action, which builds a running social media stream of customers who are promoting their accomplishments while promoting the Bombas brand and mission at the same time. "Companies were trying to figure out what to do to boost business," says Heath. What kind of an impact does that have on them and how do they pivot in that space? Before I raised a single dollar of capital, I wanted to go out and prove market validation, the pragmatist says. BRIAN KENNY: Weve had a lot of cases on the show in the past about companies that have adopted a purpose. I have three pairs and Im constantly washing them because I want them available. Bombas built their community by first finding a cause that they were passionate about. When Randy Goldberg and David Heath heardthat socks were the number one requested item in homeless shelters, they had an idea: What if they could start a company that brought awareness to this issue and elevated socks from a fashion commodity to a fashion statement with a mission? So they have an amazing marketing strategy (business model) and high-quality socks, now what? And I dont say that in a pejorative way, I just say its a different approach. And to do that, they had to make a product that people would keep coming back to. And so Bombas became a resource for these other brands to help teach them, how do we start to distribute items. To meet their ambition, Goldberg and Heath foundedBombas, an eCommerce apparel company that uses theone-for-one business modelmade famous by TOMS Shoes. And once they raised that money, they started to create their first pairs of socks and sell them. Due to the unexpected surge in orders, their warehouse was around a week behind. The reason I love doing that is the local nature of our mission, which is really powerful. To drive purchases, the brand's marketing campaigns focus on the positive impact and quality of their product. And together they started doing some research into why socks are so limited in homeless shelters and whatnot. One of our giving partners in North Carolina said that in the four years we've given them socks they've been able to save enough money to send two kids from their community to college. The partnerships and ripple effects scale impact.

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