And at that point they gained attention given the growth and they were invited to participate on Shark Tank. The process was so exciting. "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. And you can feel good about putting them on. David says that the donation doesnt actually require the company to substantially increase its margins. 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. The company also scales impact and builds community by hosting events and supporting team members to volunteer. Can Bombas Reach New Customers while Maintaining Its Social Mission? ELIZABETH KEENAN: Indeed, I am absolutely a customer. This helps drive the mission home for everyone involved, and solidifies Bombas as a socially conscious brand. Inside Bombas Marketing Strategy - Forbes And that means that you, my friend have leverage. Rather than having to "figure things out," who Bombas had become as a brand and culture led to a natural response. The top traffic source to bombas.com is Direct traffic, driving 46.32% of desktop visits last month, and Organic Search is the 2nd with 23.56% of traffic. to address the pandemic and "move the needle," Bombas was showing it was able to remain true to its brand purpose, Brand Culture, and sustainability. ELIZABETH KEENAN: Once they connected with Hannahs Socks, word of mouth spread relatively quickly, and the number of giving partners they had grew to a point where they had a waiting list. Bombas took the successful buy one, give one social impact model of companies like TOMS, Bixbee, WeWood, and Figs and applied it to socks. 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.. Heath invested $18,000 of his own money to develop a minimum viable product (MVP). Their R&D efforts led them to create an entirely different sock for donation, one that specifically meets the needs of people who dont have the privilege of washing their socks every day. Cleaning companies, bed linen companies and others reached out to them asking for advice on how to get product donations to the people that need them most. Liz, thanks for joining me today. It is the integration of impact, quality products, customer service and meaningful storytelling that allows brands to gain a competitive advantage. My name is Brian Kenny, and youre listening to Cold Call on the HBR Presents Network. How Bombas Built A $100 Million Brand By Giving Away Socks The year is 2013. Heath learned about how important socks were to homeless people in 2011. It was a nightmare. Heath says. "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. The other part of their strategy was in terms of their marketing. All In for Bombas' One-For-One. About Bombas one-for-one business | by What do you think about startups utilizing the Toms one-for-one business model for new ventures? Opinions expressed by Forbes Contributors are their own. Two coworkers David and Randy decide to start a sock company called Bombas after viewing this Facebook post: Socks are #1 requested item in homeless shelters. So Im looking at the pro-social consumer, but also now pro-social companies and the actions they take to attract those consumers. It never ceases to amaze me the big difference we can make, with just a pair of socks.. Bombas associated their brand with a great cause of "helping someone in need" which not only gives the customer a feeling of accomplishment about the purchase but also builds a positive brand. You and your peers hold the keys to 29 billion in purchase power and 333 billion in influence. After confirming that they had the community to support their cause, Bombas doubled down on their efforts. And they reached out and they called Hannahs Socks and asked, Do you want some socks? And they said, Wait a minute, youre just offering us socks for free? And they said, Yes. And so, that was one of their first giving partners, but it wasnt just a giving partner, it became a collaborator and they ended up sharing knowledge, important knowledge about the space of homelessness and the need for items like socks and what aspects and features of those socks would be important. ELIZABETH KEENAN: Absolutely. The mission, they figured, wont matter if the product is crap. Last year they donated over 10,000 volunteer hours and hosted roughly 15 giving events per month with local partners in New York. How do you get the socks into the hands of the people who need them? Relationships over transactions. Four years ago, David Heath and Randy Goldberg learned what the most frequently requested item was at homeless shelters: socks. As of late 2021, which is about the time of the case, they had crossed nearly 250 million in annual revenue, had 180 employees and had donated their 50 millionth pair of socks. BRIAN KENNY: How much, if any, of their motivation here also was to design a sock that could stand up against the conditions that homeless people encounter? They launched their first campaign on Indiegogo and within 24 hours, they made a jaw-dropping $150,000 in sales and a staggering $100 million in sales as of 2019. That kind of employee advocacy can carry more legitimacy than any traditional marketing from Bombas. When Bombas does a campaign about hitting a donation milestone, customers prioritize the giveback. And I think Bombas has recognized that from the beginning, controlled growth has really served them well. Customers and partners are encouraged to share their purchases or donations using the hashtag #BeeBetter (a reference to their name, which is derived from the Latin word for bumblebee). Bombas: the preferred socks of True Believers. The 4 P's of marketing are price, promotion, place, and productthe four key factors every marketer should use to guide their campaign strategy. [CDATA[ Crowdfunding: Introduce your mission and product with a fundraising campaign And so they didnt really start to focus on sharing that story with the public until around 2016, when they created videos. ELIZABETH KEENAN: That is one way for growth, but it could be a risky approach for any company. At. 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.. We've worked to reach customers across a wide variety of touch points and that's also meant that no single channel constitutes the majority of our spend, which sets us apart from some of our DTC peers. While the company is expanding, they plan to stay laser focused on comfort-based basics for the next several years, building on their mission and bottom line. Now, lets take a deeper look at Bombass strategy that made them millions and how you can do the same. Their product helps customers make an impact on a cause that they are passionate about. And companies like Bombas have found a way to do this that seems sustainable, where they can actually do well and do good at the same time. 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. Abstract. BRIAN KENNY: And so, this is part of what the case identifies as the buy one, give one model. 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. And so Bombas became a resource for these other brands to help teach them, how do we start to distribute items. This grows the network of like-minded people who share in the passion for social change and helps remind customers why theyve purchased from Bombas in the first place. Our goal was to create the most comfortable socks in the history of feet. In addition to online research, he did a lot of networking. They went on to make anappearance on Shark Tank, winning an investment from Daymond John, who put $200,000 into the company for 17.5 percent equity. Why is it that Bombas was able to outperform other companies in the same niche who have been in the business for longer than them? Our mission is the main driver of our success today.. As I mentioned earlier, nobody had innovated in the space of socks for quite some time. Without the strong mission statement and value proposition, Bombas would not have been able to accomplish this. Lead with your purpose. The act of sharing these accomplishments also reinforces the sense of happiness and achievement that purchasing a pair of Bombas socks provides. And that higher price allows us to do that. Buy one, donate one that was their motto. And contrast that then with TOMS and the way that they went to market, it felt like TOMS was much more out front about what they were doing. 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. They recognized that their cause could have a real impact on issue of homelessness by creating a product thatmet one of the most basic and important needs of that community. Socks are the number one most requested clothing item at homeless shelters, David Heath, cofounder and CEO of Bombas, tells We First. ELIZABETH KEENAN: It is, it is a different approach. In fact, some companies reached out to Bombas about co-branding products and asked if they could get a discount if they didnt donate a pair with every one sold. bombas.com Market Share, Revenue and Traffic Analytics | Similarweb Interestingly, the socks Bombas sells to the general public, are not the same ones they donate. Bombas Bombas was first introduced in 2013. They're not responding to us. The concept for the company came about after the founders learned that socks are the most requested item in homeless shelters. And by the middle of 2014, they had already sold $450,000 worth of socks. BRIAN KENNY: They feel good. Due to the unexpected surge in orders, their warehouse was around a week behind. Getting this buy-in from team members is important for a mission-based company like Bombas because they act as evangelists for the brand. I actually hadnt heard that term until I read the case. That would include things like moisture wicking properties, padded heels, seamless toe, arch support, and so on. Bombas 4Ps marketing strategy: Production Strategy: Bombas provided clients with the most comfortable socks. ELIZABETH KEENAN: So, Im not sure that the buy one, give one model will necessarily become the norm in the space of trying to do well and do good. 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. How did they turn an idea into a multimillion dollar social enterprise? And so theres partners and this seems to be a theme throughout all of the relationships they have with their giving partners is that these partners often become collaborators in helping them better understand the space that theyre trying to serve. ELIZABETH KEENAN: No, they dont. Everybody is handed socks at the beginning and told, go out and give these away and see what that experience is like, and theyre bought in from the beginning. A great example of a time when purpose was more significant than product was when COVID-19 first hit. BRIAN KENNY: Aha. BRIAN KENNY: Yeah. BRIAN KENNY: Right. And once they raised that money, they started to create their first pairs of socks and sell them. Thanks in part to a successful Indiegogo campaign (950% of goal raised) in September 2013 and an appearance on Shark Tank a year ago, Bombas has made strides in the specialty retail market. And we're able to donate product to a charitable organization they've got a tie to. After 30 days of the campaign, they reached $150,000. Without a company culture that actively and publicly demonstrates the companys professed values, their message would feel disingenuous. Everything looks simple and easy to analyze. They fostered a company culture of shared values and found ways to build the mission of giving back into everything they did. And maybe you can talk a little bit about that. How that looked for us is that one person on the team would do some initial testing and research around a channel, then if there was traction, we'd work with an agency to scale it. One-for-one brands workonly if customers buy into the cause. And you can actually leverage both to help the other. These social media posts, shares, and conversations all act as social proof of the values the brand promotes. So theyve focused in on the E-commerce space. David finally felt comfortable seeking outside funding and raised $1 million in seed financing from private investors. How They Made Money is a publication thats focused on analyzing how rich individuals exactly generated their income. The drive to solve those problems in real time motivated me., Before he started Bombas, Heath was, blindly focused on trying to make as much money as possible. Key 1: Bombas' story is their selling-point The story of Bombas is about more than just socks. And, like most companies with a charitable side, Bombas tends to tug atthe heartstrings every once in a while. Its important to Bombas that theyre helping their community regardless of its direct involvement with their brand mission. Be sure to rate and review us on any podcast platform where you listen. 1. When you're a one person show in the early days with no cash or resources, and the only time you have to work on it is from 6:00 P.M. until midnight and on weekends, you have to grind it out, the cofounder says. Specifically, they started with Facebook ads where they were featuring primarily pictures of their socks. BRIAN KENNY: Yeah, its amazing. 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. Your Next Move. And in fact, the name Bombas is Latin for bees, and its beehives and bees work together in concert. 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. 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. Not having access to socks presents health risks for homeless people. Im going to ask you to start by telling us whats the central issue of the case, and whats your cold call that you use when you start the case in the classroom? I want to talk about that a little bit later, and again, with the attitudes of gen Z and millennials in mind. Bombas has donated more than 5 million pairs of socks to over 2,500 shelters and organizations across the country. And at that point they created a video about their mission and the founding of Bombas and how it started. BRIAN KENNY: And certainly those are things that people cant donate and places that accept donations, cant take those as secondhand items. ELIZABETH KEENAN: So, that moment, I think spoke to them and made them realize we may be onto something here. "Brand Culture allows organizations like Bombas to more easily align who they are with what they do," says Keown. I had to focus on refining the product, the brand, the story and the mission, Heath recalls. Get our best content on ecommerce marketing in your inbox 2 times a week But these firms are different because they were founded for the purpose and its intrinsic to their DNA, right? There are low cost, bulk products like a 12-pack of Hanes socks for $10 at Costco. Then there are niche socks for hiking, running, cycling and other sports. We saw some of the highest open rates and engagement from those emails, because they were cutting through the noise. LinkedIn Accounts. 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. They wanted to sell socks with those properties. The Bombas marketing strategy is simple, building a great community that knows they are making a difference, selling premium quality clothing that people would die for, and solving major problems. If you have any suggestions or just want to say hello, we want to hear from you. BRIAN KENNY: So, theyre always promoting the socks themselves, the attributes of the socks. The pandemic only enhanced the need. I started giving out socks to homeless people on my way to and from work in New York City, Heath says. However, they also wanted very much to donate socks with those same properties. It all felt so incredibly tone deaf.". He became incredibly depressed, as most people would, then turned to alcohol and eventually drugs, Bombas cofounder says. I saw companies like TOMS and Warby Parker doing the 1-for-1 model and said, Maybe I can create a company where we donate socks.. // ]]> Posted by Bombas onTuesday, September 8, 2015. Balancing priorities of product and purpose: The two pillars of our company are a high quality product and a great mission, Bombas cofounder says. They already had a firm, they were selling a product or a service, and then they adopted a purpose as part of it and many of them have done a great job now providing for that purpose. As Heath toldGlamour,When we first started, I stopped to hand a man on the street a pair of socks, and he proceeded to take off his shoes and show me the make-shift socks he was wearing made out of plastic shopping bags and to tell me how crucial a fresh pair of socks were to him. For example, Fab.com went bankrupt and Gilt Group sold for a fraction of what its last valuation was. Harvard Business School assistant professor Elizabeth Keenan discusses the case, Bee-ing Better at Bombas. Does that not create a whole new set of challenges for them to face as they move into other product lines? So, this has been a great conversation, Liz. It takes longer to tell the mission side of the story and the mission side of the company. BRIAN KENNY: Elizabeth Keenan, thank you so much for joining me on Cold Call. And they gathered some information around the fact that often used socks are not donated to homeless shelters, or accepted for hygiene reasons. After hearing that socks were the number one most requested item in homeless shelters, the pair decided to do somethingneither had consideredbefore: start a sock company that helps donate to homeless shelters around the U.S. Product, price, place, and promotion. Bombas built their community by first finding a cause that they were passionate about. So, its consistent with what theyve done with socks. Socks are a small item but can have a big impact on someone's life.. The name Bombas came from Heaths partner Aaron Wolk and is derived from the Latin word for bumblebee bees. And then now that they are settled into a strategy, they focus primarily product type advertising for their social media. Theyve learned about the socks, but theres also a whole bunch of other items that they are now recognizing are critically important to homeless people. And at each major milestone, theyve continued to make these films. You are digital natives and you are the most diverse generation ever. And then he went and shared this with a friend and a colleague, Randy Goldberg. Since day one, we've focused on marketing profitably, which has served us well over the last few years. Bombas promotes their network of 1,200 giving partners through their website, as well as on social media. According toTriplePundit,research indicates that 80 percent of consumers are willing to buy a product from an unknown brand if it has strong social and environmental commitments, conscious consumerism is on the riseand this means [sic] that Bombas marketing strategy is likely to pay off.. ELIZABETH KEENAN: In this case, it seems to have been a good thing. Bywalking the walk, so to speak, theyre proving to customers that they truly believe in their social mission beyond just its marketing value. As Bombas grows, so does its impact and aspirations. Huyett:We are always thinking about how we can incorporate mission more into our marketing without diluting the message of the quality of our product. I dont know if thats a good thing or a bad thing. In addition to beingless time consuming than creating your own organic content, thishelps to build a stronger brand through affiliation with the brands whose content you share. Bombas Socks' Marketing Strategy Encourages Us to "Bee Better" For every pair of socks bought from this firm, another pair is given to a person in need. By the end of 2013, Bombas had reached $400,000 in sales. Bombas built a successful eCommerce company selling a single type of product. The direct to consumer apparel brand donates a pair of socks for every pair they sell. And this eventually became a launching point for discussion, when we were thinking about how do we actually push up consumers willingness to pay for socks. We actually have an opportunity here to be a voice for these partners to help highlight the fact that they have now started to lose out on donations, they are financially struggling and theres a greater need. They also needed to determine what role that mission should play in their marketing. Find them on Apple Podcasts or wherever you listen. The State of SMS Marketing in 2023 report is live! And many different companies have engaged in this space. In fact, that was around the time that they had finally donated their one millionth pair of socks. Talbot:What best practices for scaling the marketing has your team learned and implemented? Absolutely. This superior after-sale customer service is one way that Bombas creates customer value By utilizing the direct to consumer model theyre able to cut out the middle man. Bombas has experienced rapid growth and overarching success; however, there have been bumps in the road that tested the company. Theyve built aculture of volunteering and giving backto the community into their internal company values. Im your host, Brian Kenny, and youve been listening to Cold Call, an official podcast of Harvard Business School, brought to you by the HBR Presents network. They're out of business. They have a top-notch customer support team to ensure all customer queries are resolved immediately.They have an active presence on Facebook, Twitter, Pinterest, and Instagram. If they grow too quickly, then all of a sudden they have a much more complex issue, both in terms of managing product sales, as well as now managing multiple versions of donations to potentially thousands of giving partners. This focus on social issues helped Bombas connect with their customers and solidified their place as a mission-based eCommerce brand. ELIZABETH KEENAN: Well, they first tested the idea out by putting a crowdfunding campaign together in 2013, with the goal of raising about $15,000, and instead they raised $140,000. Its curious as to why they would adopt an approach that required them to sell a high priced product. And just the reaction alone of somebody looking at him and saying, how did you know, how did you know this is exactly what I needed, convinced him that this was an important space. I have three pairs and Im constantly washing them because I want them available. Bombas discovered that their donations create extra time and money for charities. And they were the leaders in this space, and in fact, some of the inspiration for the Bombas team to start their business. BRIAN KENNY: Wow. And curious to know to what extent that was true, he actually went out and bought some socks himself and started handing them out to those in need. And that will allow them to both sell their products and earn profits the way they need to be able to then support this mission. Before I raised a single dollar of capital, I wanted to go out and prove market validation, the pragmatist says. "Brand culture is so important for sustainable, whole brands," says Jimmy Keown, VP and Growth Strategy Director atBarkley. I don't believe you can build a successful brand on a mission alone. And so that allowed us to get back to this conversation about ways of increasing willingness to pay in this space. 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. This is a huge recruiting tool. Showing an internal focus on employee well-being supports the idea that Bombas truly cares. 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. This is how Bombas has been able to 'win inside to win outside,' even in 2020.". It actually starts with homelessness. And so, theyve tried to control that growth as much as possible with the vision and the goal of rather than growing the fastest, this is quoting Heath actually that rather than growing the fastest, to stay in the game the longest. Bombas secret towards becoming a 100 million dollar brand As we look at the Bombas business model and branding strategies used by Bombas. Todays corporate leaders realize that purpose is essential to starting and growing a business. When you know you have a product that fits the markets needs, its important to stick with it. After releasing a performance line and putting out related media, consumers value quality over purpose. And I think either approach could work, especially when you start with this dual mission. Eight years later, Bombas had established itself mostly through online marketing as a preeminent . BRIAN KENNY: Yeah. And many of them stay because of the mission. 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? One hint. We started getting people posting online, saying, Bombas is stealing our money. When the company. To drive purchases, the brand's marketing campaigns focus on the positive impact and quality of their product. Neumticas De Doble Diafragma Bombas Cuota De Mercado, Tamao Y Crecimiento Global En El Prximo Ao. In 2018, Bombas underestimated their growth in revenue by around 50%. People started flooding customer service with questions about where their socks were. In other cases, they donate other items that arent exactly comparable. This objective tends to come alive more easily in marketing strategy than in actual execution. The young founder graduated from Babson Colleges business school and his father was an entrepreneur. And so all three of these are on your body, you put them on. And according to research by McKinsey, you care deeply about the truth. In the past year, Bombas donated more than 40 million pairs of socks and shows no sign of slowing down. Companies Embracing Buy-One-Give-One Strategies: Warby Parker Bombas Socks are made of Peruvian pima cotton, which helps feet stay warm in winter and cool in summer, and include exclusive features such as a blister tab, a y-stitched heel, honeycomb support system for the arch of the foot, and "stay up" technology.
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