Toms Bedding Will Keep You Warm

Toms coffee business model

When I heard about Toms' new coffee line this week, and let me stress “heard about,” I thought to myself how the charity business model is really interesting and effective. Water for villagers with each pound of coffee purchased is a brilliant extension to the “donated pair of shoes with each purchase” business model.

They've picked basic product categories, with a portion of the market falling in a higher-margin, brand-sensitive segment, and disrupted the normal path to building strong brands. They are creating a sense of shared value with their customers to drive their business.

My assumption is that Toms is shifting the dollars spent by many businesses on marketing and selling to fund their charitable work. This allows them to focus on their core operations and value-generating activities, build loyal customers, carve out a unique position within their markets, and “do good” within various communities around the world.

Instead of media buys that shout louder than competitors in a noisy and crowded market place, they are letting their customers sell for them through word-of-mouth endorsements. Trendy Toms-wearing consumers are empowered with the knowledge that they are “doing good” for the world through their purchases.

First shoes, then eyewear, and now coffee. If they are successful with their line of coffee, what will be next? Toms bedding: 400 thread count set of sheets for you and a warm blanket for a family somewhere in the world.