Felicia Hakala

Crocs Inc. - Marketing and Branding and

their Effect on Sales and Consumer Buying
Behavior

International Business
2021
VAASAN AMMATTIKORKEAKOULU
UNIVERSITY OF APPLIED SCIENCES
International Business

ABSTRACT

Author Felicia Hakala

Title Crocs Inc. – Marketing and Branding and their Effect on
Sales and Consumer Buying Behavior
Year 2021
Language English
Pages 62 + 1 Appendix
Name of Supervisor Teemu Myllylä

The aim of the study is to determine how marketing and branding strategies affects
Crocs’ sales as well as to evaluate and discuss how consumer perception of Crocs
influences their buying decisions. This topic was chosen as the author is someone
with a long-time interest in the Crocs themselves as well as their contradicting brand
reputation and reported sales figures.

The theoretical framework begins by explaining marketing and branding as well as

their key concepts, such as the marketing process, brand equity, identity and image.
The theory then concludes with the explanation of consumer buying behavior and
the decision-making process.

To implement the aim of the research, a literary research study was conducted,
which described how and why Crocs rose to success, fell, and became popular once
again as well as how they surpassed their previous success, highlighting the
importance of adapting marketing strategies to correctly suit the branding. A study
in the form of a questionnaire was also conducted in order to gather consumer
perceptions of Crocs and determine the factors that influence their purchase
decisions.

The research revealed that the originality, the quality of the design, and the comfort
of the product drives Croc’s success, regardless of their negative brand reputation.
While they may be considered ugly, it does not stop consumers from purchasing
Crocs.

Keywords marketing, branding, sales, consumer buying behavior,

Crocs
TABLE OF CONTENTS

ABSTRACT
1 INTRODUCTION .............................................................................................8
1.1 Thesis Background.....................................................................................8
1.2 Thesis Aim and Research Questions..........................................................9
1.3 Thesis Structure .........................................................................................9
1.4 Company Introduction: Crocs Inc. ...........................................................10
2 THEORETICAL FRAMEWORK...................................................................12
2.1 Marketing .................................................................................................12
2.1.1 Marketing Process; Strategies and Programs ...............................13
2.1.2 Marketing Mix .............................................................................14
2.1.3 Traditional vs. Digital Marketing .................................................16
2.2 Branding ...................................................................................................17
2.2.1 Brand Equity ................................................................................18
2.2.2 Brand Positioning and Positioning Statement ..............................20
2.2.3 Brand Identity ..............................................................................21
2.2.4 Brand Image and Reputation ........................................................22
2.3 Consumer Buying Behavior .....................................................................23
2.3.1 Buying Decision Process .............................................................24
3 RESEARCH AND METHODOLOGY ..........................................................27
3.1 Research Methodology and Data Collection ...........................................27
3.2 Reliability, Validity, and Limitations ......................................................28
4 RESEARCH RESULTS ..................................................................................30
4.1 Secondary Literary Research Findings ....................................................30
4.1.1 Marketing Strategies ....................................................................30
4.1.2 Branding Strategies ......................................................................33
4.1.3 Sales Figures and Trends .............................................................35
4.2 Primary Research Findings: Questionnaire Responses............................36
4.2.1 Demographic Background ...........................................................39
 4.2.2 Consumer Perception of Crocs ....................................................44
4.2.3 Crocs’ Consumer Buying Behavior .............................................50
4.2.4 Crocs’ Consumer Post-Buying Behavior .....................................53
5 CONCLUSION ...............................................................................................57
5.1 Discussion and Reflection........................................................................57
5.2 Suggestions for Future Research .............................................................58
6 RESOURCES ..................................................................................................60
APPENDIX ............................................................................................................64
 5

LIST OF FIGURES AND CHARTS

Figure 1 Classic Crocs clog with Jibbitz accessory (Crocs 2021) ................................. 11
Figure 2 The Marketing Process: Creating and Capturing Customer Value (Armstrong,
Kotler, 2015, 33) ............................................................................................................. 13
Figure 3 The Four Ps of the Marketing Mix (Kotler, Armstrong, 2011)....................... 16
Figure 4 David Aaker's Model of Components of Brand Equity (The Branding Journal,
2021) ............................................................................................................................... 19
Figure 5 Stages in the Consumer Decision Making (Solomon, 2009, 350) .................. 26
Figure 6 Balenciaga Collaboration Crocs (Crocs’ Instagram, 2017) ............................ 31
Figure 7 Crocs Annual Revenue 2005-2020 in billions of USD (Macrotrends) ........... 35
Figure 8 Google Searches for Crocs 2005-2020 (Google Trends, 2021) ...................... 36
Chart 1 Participants who own Crocs ............................................................................. 38
Chart 2 Participants who purchased their own Crocs ................................................... 39
Chart 3 Participants' age ................................................................................................ 40
Chart 4 Participants’ gender identification.................................................................... 41
Chart 5 Participants' geographical location ................................................................... 42
Chart 6 Types of Crocs owned by participants ............................................................. 43
Chart 7 Crocs' appearance influence on participants .................................................... 45
Chart 8 Crocs as "the ugliest shoes ever" ...................................................................... 46
Chart 9 Participants' opinion on "the ugliest shoes ever".............................................. 47
Chart 10 Participants’ standpoint on Crocs ................................................................... 48
Chart 11 Participants’ perception of consumer buying behavior .................................. 49
Chart 12 Consumer perspective on Crocs on social media ........................................... 50
Chart 13 Crocs' social media presence influence on participants ................................. 51
Chart 14 Most common reasons why participants bought Crocs .................................. 52
Chart 15 Where participants bought Crocs ................................................................... 53
Chart 16 Most common responses when participants wear Crocs ................................ 54
Chart 17 Participants' most valued aspects of Crocs ..................................................... 55
Chart 18 Participants' willingness to buy Crocs again .................................................. 56
 7

LIST OF APPENDICES

APPENDIX 1. Questionnaire
1 INTRODUCTION

A company’s reputation can either make or break them. In the case of this thesis, it is safe
to say that everyone knows what Crocs are, both as a product and a brand. The name itself
already evokes opinions in consumers’ minds; either positive, negative, or both. The main
drivers of a company’s reputation and their consumers’ buying behavior which will be
studied in this thesis are marketing and branding. Both of which are essential aspects to
consider when selling any type of product or service, including colorful foam clogs like
Crocs.

1.1 Thesis Background

At the time as this thesis was drafted, written, and researched, the world is going through
the coronavirus pandemic in which society is being forced to adapt to a new normal.
People were obligated to socially distance themselves from one another, and many must
work from home. Being at home all the time also means that comfort takes precedence
with regards to how people choose to dress, myself included. Casual attire, such as
sweaters, t-shirts, and sweatpants, replace suits and formal office wear. The same fate
also befalls footwear, where formal shoes are replaced by more comfortable options, such
as Crocs.

As the author of this thesis, I am personally interested in this topic because I remember
always owning a pair of Crocs. During my childhood as I grew out of the old Crocs every
year, there was always a pair to replace them in different bold and bright colors. They
became a staple in my summer outwear growing up. However, as time went on, I heard
Crocs being referred to as “ugly” increasingly frequently until it became the only way in
which Crocs were described regarding their appearance. Their reputation of being “ugly”
has not stopped me, however, from still buying and owning several pairs of Crocs and
wearing them often.
 9

1.2 Thesis Aim and Research Questions

The aim of this thesis is to determine why people still buy Crocs, regardless of their
current reputation as the “world’s ugliest shoe”. Sales have increased from 2019 to 2020
where more than 69 million pairs sold which amounted to over $1.4 billion in revenue
(Retail Inside Network, 2021), which means that Crocs’ reputation and current sales
contradict each other, why? Crocs’ sales curve was falling up until the last few years.
What has caused this change in consumer buying behavior? Does their reputation matter
to their consumers? Through the nature of this research, the aim is also to find out what
factors can cause such an increase in sales and how, also considering the current social
and economic situation during the coronavirus pandemic. How is Crocs benefitting from
a notorious reputation? How do trends affect consumer buying behavior with regards to
said negative reputation? How do marketing and branding strategies affect their sales and
reputation? To what does Crocs owe their success to?

With the thesis aim and these questions in mind, the main focused research questions this
thesis strives to answer are as follows:

1. How do marketing and branding strategies influence changes in Crocs’ sales?

2. What are consumers’ perceptions of Crocs and how does it affect consumers’
buying decisions?

1.3 Thesis Structure

Much like with other theses, this thesis will be broken down into several sections in which
the first starts with the introduction. The introduction is where the topic and aim of the
thesis are explained and where the company this thesis is researching is introduced. Most
importantly, the research questions to be researched and answered are placed in the
introduction. Following the introduction is the theoretical framework which goes on to
define and explain each of the terms and theoretical concepts which will be researched in
the later stages of the thesis, such as marketing, branding, and consumer buying behavior.

Once the theoretical framework is established, the following section, Section 3, goes on
to outline the research methodology which will be implemented in the thesis and provide
further explanation as to why the chosen research methods were selected. Not only will
Section 3 describe how the research data will be collected, but it will also evaluate the
reliability, validity, and the limitations of the research. Section 4, research results, will
present the data collected and describe the research findings. The final section is where
the conclusion is discussed and reflected upon and where suggestions for future research
are made.

1.4 Company Introduction: Crocs Inc.

Crocs Inc., now an international household name, are a casual footwear company
infamously known for their iconic foam clog shoes “Crocs.” The first pair of Crocs were
introduced to the market in 2002 by the company founders, Lyndon “Duke” Hanson and
George Boedecker Jr. and have since sold over 700 million pairs (Crocs 2021). The
original Crocs clogs, named after their signature crocodile snout design, have once been
labeled as one of the world’s “50 Worst Inventions” by Time Magazine (Time, 2010).
The iconic Crocs design has been trademarked and patented by the US Patent office, in
order to protect themselves from other companies that recreate their design and produce
counterfeit versions of their Croc. (Patent US6993858B2, 2006)

Although initially designed and intended for boat goers and owners, Crocs have appealed
to a wider range of consumers due to their anti-slip foam material, ventilation holes, and
adjustable strap that provides comfort and practicality. Popularly referred to as “sport
mode,” the ankle strap can be adjusted from on top of the shoes as slippers, to be placed
behind the ankle in order to secure them to the wearer’s feet, as seen in Figure 1. The
material in which Crocs are made of and the company has patented, Croslite, is a foam
resin which offers a sanitary solution to other “boat footwear” that absorb moisture and
odors (Patent US6993858B2, 2006). While the company’s namesake, the original Crocs
clog, remains their most popular product, they also offer a wide range of other footwear
such as flip flops, sandals, slippers, boots, and sneakers; all of which are made of the same
patented Croslite foam material.
 11

Figure 1 Classic Crocs clog with Jibbitz accessory (Crocs 2021)

In 2006, the company acquired Jibbitz, a manufacturer of accessories that snap into the
ventilation holes in Crocs shoes that allow their consumers to personalize their Crocs,
pictured in Figure 1. As a company, Crocs strives to provide continuous comfort with
each of their products as is evident in their mission and vision statements respectively:
“we work hard to make you comfortable in your own shoes,” and “we believe that comfort
is key to happiness, and our legendary Crocs comfort makes the world a happier place,
one pair of Crocs at a time. We are in tireless pursuit of new comfort technologies,
developing revolutionary materials that are lighter, softer, and more flexible than ever
imagined.” (Crocs, 2021)
2 THEORETICAL FRAMEWORK

2.1 Marketing

The tale of marketing is as old as time. Wherever something is being sold, it is also being
marketed, whether it is by large global profitable firms or small local non-profit
organizations. As consumers, we are constantly surrounded by marketing. From physical
advertisement posters in store windows to short ads played before YouTube videos. As
defined by Armstrong and Kotler, marketing is “the process by which companies create
value for customers and build strong customer relationships in order to capture value from
customers in return.” (Armstrong, Kotler, 2015, 33) Marketing is essentially a tool used
to connect companies to their consumers. Over time, marketing has changed and evolved
as the markets have developed. The definition of marketing itself has evolved from “the
management process which identifies, anticipates and supplies customer requirements
efficiently and profitably” to one that emphasizes that marketing creates value for their
customers rather just anticipating their requirements, or demands. (Palmer, 2004, 3)

While marketing is most recognizable as selling and advertising, there are many more
steps and processes involved. As explained by Kotler, marketing is often illustrated by a
floating iceberg; “[it] is what occurs below the waterline before the customers see
anything.” (Kotler et al, 2012, 6) In order to sell and advertise, companies must first
understand their consumers’ needs and wants which will then help them create a
customer-oriented marketing strategy in order to deliver customer value which eventually
leads to capturing value from customers creating profits and customer equity, as pictured
in Figure 2.
 13

Figure 2 The Marketing Process: Creating and Capturing Customer Value (Armstrong,
Kotler, 2015, 33)

2.1.1 Marketing Process; Strategies and Programs

As previously mentioned, the first step when creating and capturing customer value is
understanding the marketplace and customer needs and wants. For without understanding
their customers’ needs and wants, companies cannot successfully market their products
or services to them, and their efforts would go unnoticed by their potential consumers.
Whereas Armstrong and Kotler define a customer need as a state of deprivation, a
customer want is “the form human needs take as they are shaped by culture and individual
personality.” (Armstrong, Kotler, 2015, 34) Companies do so through researching their
customers and the marketplace in which they are selling as well as managing marketing
information and customer data. (Armstrong, Kotler, 2015, 57) This process is called
market research and is vital when understanding who companies are selling to.

The next phase is to design a customer-driven marketing strategy, or game plan, where
companies select what customers to serve through market segmentation and targeting.
(Armstrong, Kotler, 2015, 57) Market segmentation is the process in which the market is
divided into different segments of customers and targeting is the selection of which
customer segment to cater to. (Armstrong, Kotler, 2015, 37) These segments include
demographic, physiographic, behavioral, and geographic. Much like the previously
mentioned market research process, this step is fundamental for companies to identify
who they are selling their products or services to. Once the target customers have been
selected, then the value proposition, or “the set of benefits or values it [a company]
promises to deliver to consumers to satisfy their needs,” can be decided as well as how
companies differentiate and position themselves in the market. (Armstrong, Kotler, 2015,
37) This being an important step because it tells their consumers why they should buy
their product or service rather than the competition’s; it tells them why they are special
above all others.

As the marketing strategy is established, the following step is to construct an integrated

marketing program that delivers superior value. (Armstrong, Kotler, 2015, 57) This
process is done with the help of the marketing mix which will be explained in the
following section of this thesis. Once a marketing program is constructed, the opportunity
to build profitable relationships and create customer delight is developed. This is achieved
through customer-relationship management where companies build engagement and
strong relationships with their chosen customers as well as partner relationship
management where strong relationships with marketing partners are built. (Armstrong,
Kotler, 2015, 57) Completing all the aforementioned stages of the marketing process will
eventually lead to capturing value from customers which will generate profits and
customer equity. This in turn creates satisfied and loyal customers, captures customer
lifetime value, and increases market and customer shares. (Armstrong, Kotler, 2015, 57)

Whereas the marketing process is universal, the marketing plans and strategies can vary
considerably from product to product and company to company, even within the same
product and/or company. Each product or service is marketed differently based on who
they are intended for, their target market, whether a firm is marketing their products
directly to their individual consumers, business to consumer (B2C), or other businesses,
business to business (B2B). However, whenever marketers create marketing strategies,
they often, if not always, make use of the marketing mix.

2.1.2 Marketing Mix

The marketing mix is essential when developing effective marketing strategies. It is a set
of marketing tools used to help organizations achieve their goals by gaging the sought-
after consumer response within the target market. (Palmer, 2004, 19) It consists of
everything the firm can do to influence the demand for its product (Armstrong, Kotler,
 15

2015, 80) and is divided into four factors, the Four Ps: product, price, place, and
promotion.

• Product refers to the product [or service] being offered to the target market. The
factoring decisions included in the product are variety, quality, design, features,
brand name, packaging, and services.
• Price refers to the amount consumers are expected to pay for the product offered.
The factoring decisions included in the price are list price, discounts, allowances,
payments period, and credit terms.
• Place refers to where the product is made available to the consumers. The
factoring decisions included in place are channels, coverage, locations, inventory,
transportation, and logistics.
• Promotion refers to the actions taken to communicate the advantages of the
product and influence consumers to purchase it. The factoring decisions included
in promotion are advertising, personal, selling, sales promotion, and public
relations.

(Armstrong, Kotler, 2015, 80-81)

Figure 3 illustrates the Four Ps as well as the tools used under each P and how they relate
to the target market. While the marketing mix traditionally refers to the Four Ps, it can
also be explained using the Four Cs. By using the Four Cs as well as the Four Ps, the
customer’s perspective is also considered rather than just the marketer’s perspective.
Whereas in the Four Cs, customer solution is used in place of product, customer cost in
place of price, convenience in place of place, and finally communication replaces
promotion. Each of the Four Cs are to be considered while building a successful
marketing strategy with the Four Ps. (Armstrong, Kotler, 2015, 82)
Figure 3 The Four Ps of the Marketing Mix (Kotler, Armstrong, 2011)

2.1.3 Traditional vs. Digital Marketing

When the world shifted from the traditional to the digital, marketers in turn adapted to be
able to fully take advantage of the new online platforms that became available. By doing
so, they were able to reach a much larger market of Internet users. Regardless of the boom
in the digital marketing usage, however, traditional marketing remains an integral
marketing strategy still used by many companies today. The difference between the two,
is the medium in which they communicate their message to their target market. While
traditional marketing employs traditional channels such as television ads and other
printed media, digital marketing uses digital media. Whereas traditional marketing uses
posters, newspaper ads, and magazine ads, digital marketing applies the same material
digitally to websites and social media posts. (Bailey, 2019) As defined by the Merriam-
Webster dictionary, social media are “forms of electronic communication (such as
websites for social networking and microblogging), through which users create online
communities to share information, ideas, personal messages, and other content (such as
videos)” (Merriam-Webster Dictionary)
 17

To market digitally now, as 57% of the global population is said to make up the world’s
Internet users, companies set up their own social media accounts on different platforms,
such as Facebook, Instagram, YouTube, and even TikTok, among others. (Bailey, 2019)
Companies then use these accounts to post promotional content and other marketing
material. These posts can then be reached by over 7 billion users collectively on
Facebook, Instagram, YouTube, and TikTok. (Statista, 2021) They can also reach more
users through collaborating with one or more influencers, or “[people] who [are] able to
generate interest in something (such as a consumer product) by posting about it on social
media,” (Merriam-Webster Dictionary)

2.2 Branding

Much like marketing, branding is a crucial process that companies need in order to sell
their products or services to consumers as it also connects companies with their
consumers. Where marketing engages the consumer with the company, branding
maintains the current relationship they have with their consumers and keeps them
committed. Simply put, marketing drives sales while branding drives recognition and
customer loyalty. In order to do so, a company must first build their brand, “a name,
symbol, logo, design or image, or any combination of these, which is used to identify a
product or service and distinguish it from those of competitors.” (Kotler et al, 2012, 423)
A brand allows its consumers to easily identify it and recognize its value over its
competitors’. A powerful, recognizable, and well-marketed brand, however, creates
meaningful long-lasting images in the consumer’s mind.

As the aim of branding is to connect the brand to the consumer, branding plays two
important roles when prompting reactions from their consumers: functional and
emotional. The functional role of branding refers to how the performance, quality, and
benefits of the product or service is communicated to the consumer. (Kotler et al, 2012,
424) Functional branding assures consumers that the products or services they are
purchasing work well and fulfil what is promised of them and therefore upholds their
perceived value over other competitors. Moreover, the emotional role of branding sparks
an emotional reaction within the consumer which then aims to connect them emotionally
to the product or service itself, rather than its functionality. (Kotler et al, 2012, 424) The
stronger the connection with the consumer, the stronger the brand.

Whereas different marketing strategies are temporary, a company’s branding remains

unchanged throughout their “lifetime.” Successful branding is achieved using several
tools such as: brand positioning, brand identity, product branding, brand image, and brand
reputation, which will be explained in the following sub-sections. Branding is also
achieved by implementing advertising and communication techniques, sponsorships and
partnerships, in-store experiences, workspace experiences and management styles,
customer service, and pricing strategy. (The Branding Journal, 2021)

2.2.1 Brand Equity

When discussing a brand’s value, one refers to their brand equity; for brand equity
represents the value of a brand. (The Branding Journal, 2021) As defined by David Aaker,
brand equity is “a set of assets or liabilities in the form of brand visibility, brand
associations, and customer loyalty that add or subtract from the value of a current or
potential product or services driven by the brand.” (Aaker, 1991) Aaker further explains
brand equity by listing the five components of brand equity using the following model
illustrated in Figure 4.
 19

Figure 4 David Aaker's Model of Components of Brand Equity (The Branding Journal,
2021)

In Aaker’s model, he includes the following five component that play key roles within a
brand’s brand equity: brand loyalty, brand awareness, perceived quality, brand
association, and other proprietary assets. Brand loyalty ensures that consumers remain
loyal to the brand and dictates that consumers are driven to continue purchasing from the
brand rather than its competitors. Brand awareness refers to a brand’s recognizability
amongst its consumers, how it stands out to its consumers and to what extent. A brand’s
perceived quality centers around the public opinion of the brand’s quality product as well
as the brand itself. Brand association refers to the associations with the brand itself, the
connotations. Lastly other proprietary assets include patents, trademarks, and other
partner relationships. (The Branding Journal, 2021) (Aaker, 1991)

Brand equity affects how consumers view and associate the brand which, in turn, plays a
crucial role when driving their success. Establishing strong brand equity is key when
building a successful branding strategy and can be done with the help of brand
positioning, brand identity, and brand image. A company’s brand equity can then also be
reinforced with strategic marketing. (The Branding Journal, 2021)
2.2.2 Brand Positioning and Positioning Statement

As mentioned previously, brand positioning, brand identity, and brand image are key
concepts when referring to brand equity, or the value of a brand. Or as stated by Jay
Gronlund, “the brand positioning is the heart of marketing.” (Gronlund, 2013, 42) Brand
positioning expresses how a brand differentiates itself from its competitors, it is “the act
of designing the company’s market offering and image to occupy a distinctive place in
the mind of the target market” (Kotler et al, 2012, 359). The process of brand positioning
includes analyses of the target market, the competition, and the brand itself. Successful
brand positioning is established with the help of the positioning statement, a written
statement that summarizes the “blueprint of the brand” and includes the following
components: the target customers and their needs, the competitive framework, and the
brand’s benefit or promise. (Gronlund, 2013, 17)

The positioning statement is aimed at the target customer which is found in the market
research stage where the target market is discerned through segmentation as marketers
need to know who they are selling to. When discussing the target market and their needs,
said needs not only refer to their functional and physical needs, or why they need the
product, but also the customer’s emotional needs, why they did not know they needed the
product, thus creating a connection to the brand. Once again, the stronger the connection
between the consumer and the brand, the stronger the brand. By meeting all these needs,
marketers reach what is called “the sweet spot.” (Gronlund, 2013, 19) However, as the
customer wants and needs constantly change and evolve, marketers also need to adapt
accordingly.

The competitive framework part of the positioning statement refers to the points where
the target market and consumers are convinced that the brand is superior to the
competition and why as it “can help create the best potential image” of the brand.
(Gronlund, 2013, 21) Lastly, the benefit or promise the brand makes to its target market
and consumers is the most meaningful promise a brand can make, as it represents what
exactly is special about them and what makes them stand out amongst the competition.
“It is not what the product does, but what it does the consumer – how it resolves [their]
problem and ideally makes the customer feel.” (Gronlund, 2013, 25) Thus, with the
 21

positioning statements made up of these three components, the brand positions itself
within the target market as well as caters itself to the target market and further helps create
the brand identity and develops the brand image in the eyes of the consumer.

2.2.3 Brand Identity

With brand positioning in place, the company’s brand identity is then also established
within the target market. The brand identity is dependent on the brand positioning, as the
brand identity is built by the brand itself using information gathered during the brand
positioning process. It is the visual expression and representation of the brand, “the way
the company aims to identify or position itself in the eyes of the consumer.” (Gronlund,
2013, 3) (Kotler et al, 2012, 426) Said visual expression refers to the brand elements
including but not limited to: brand names, URLs, logos, symbols, characters, slogans,
jingles, websites, product or service design and features, signage, packaging, etc. Brand
elements are devices that are used to identity and differentiate the brand. These elements
need to be memorable, meaningful, likeable, transferable, adaptable, and protectable.
(Kotler et al, 2012, 432) When the elements of brand identity are applied also to a singular
product, it is referred to as product branding.

“The brand identities and its associations are amongst (the brand’s) most valuable assets.”
(Kotler et al, 2012, 431) However, when creating and managing their brand identities
companies need to keep some things in mind. Firstly, all accompanying marketing mix
activities must support the brand and the chosen brand elements. (Kotler et al, 2012, 432)
Secondly, other secondary brand associations need to be transferred to the brand
indirectly by linking it to other entities. (Kotler et al, 2012, 432) When tying an
association between the brand itself and other entities such as people, places, or things,
those entities will then reflect on the brand. The brand identity and all its elements need
to be consistent in order to create a cohesive visualization of the brand which is then easily
recognizable to the consumer in all its forms. “Brand identity should be diffused in
everything the company does.” (Kotler et al, 2012, 426)
2.2.4 Brand Image and Reputation

Once the brand identity is established, one can then delve into the brand image. While the
terms brand identity and brand image seem similar, the concepts are completely different.
The main difference between brand identity and brand image is perspective. Brand
identity is how the brand itself wants to be perceived by the consumers whereas brand
image is the subjective perception of the visual and verbal expressions of the brand from
its consumers. (Kotler et al, 2012, 426) The brand identity is controlled by the brand
while the brand image is not, it is the perceptions, views, and beliefs of the brand held by
the consumers themselves. “The brand image encompasses all ideas, opinions,
associations, and emotions a person can have with regard to a brand.” (Brand Trust, 2021)
The brand image, however, is based on the brand identity. The closer the brand image
matches with the wanted results from the brand identity, the more cohesive the branding
strategy, and the stronger the brand itself.

Brand image can fluctuate and change depending on several variables. It can vary across
the globe if its marketing is adapted to foreign markets, as different cultures view things
differently. Time is another variable that can affect brand image, as the market evolves
over time, so does its perceptions, views, and beliefs. Marketers must then adapt to the
market and make changes to their marketing and branding strategies accordingly.
Companies also need to monitor their word of mouth, or their reputation as it can greatly
improve or damage their brand image. (The Branding Journal, 2021) Brand reputation is
a concept that falls under brand image. With similar definitions they are often used
interchangeably. Just like brand image, brand reputation refers to the consumer’s
perception of the brand. However, the brand reputation refers to the opinions of the brand
held by the consumer when asked. The brand reputation is derived from the brand image
as well as the branded product or service itself. Customer-orientation is key as “the power
of the brand lies in what resides in the mind of the consumer.” (Kotler et al, 2012, 476 +
426)
 23

2.3 Consumer Buying Behavior

Consumer behavior, or “the study of the processes involved when individuals or groups
select, purchase, use of dispose of products, services, ideas, or experiences to satisfy
needs and desires,” is a process closely involved in the marketing and branding processes.
(Solomon, 2009, 33) Whereas both marketing and branding are amongst some of the
factors that can have an impact on consumer buying behavior, there are also other key
aspects that play a role and directly impact consumer buying behavior. Consumer buying
behavior is essentially divided into three segments: the study of culture, the study of social
groups, and the study of the individual. Culture, as defined by the Cambridge Dictionary,
is “the way of life, especially the general customs and beliefs, of a particular group of
people at a particular time” and is a fundamental influence on a person’s needs and wants.
(Cambridge Dictionary, 2021) Culture is the blueprint for human behavior and its values
and norms serve as its guidelines. Cultures are even be split into smaller sub-cultures as
the values of the same culture can vary vastly from area to area. (Kotler et al, 2012, 218)
The study of culture provides a thorough understanding of a group’s consumer buying
behavior as it notably affects a person’s thought processes and behaviors.

Another segment of consumer buying behavior, the study of social groups, refers to key
social factors such as reference groups, family, and social roles and statuses and how they
affect consumer buying behavior. “A person’s reference groups are all the groups that
have direct or indirect influence on their attitudes or behavior.” (Kotler et al, 2012, 221)
These reference groups can then also be divided into primary and secondary groups.
Primary groups include family, friends, neighbors, and co-workers, groups that people
interact with regularly and casually. Secondary groups include religious, professional,
and trade union groups that are more formal. Of the primary reference group, family is
the most influential when it comes to consumer buying behavior. Family can then also be
divided into two groups, the family of orientation and the family of procreation. The
family of orientation includes parents and siblings and have an indirect effect on
consumer buying behavior whereas family of procreation, the consumer’s spouse and
children, have a more direct influence on everyday buying behavior. A person has a
position in each of the social groups they belong to, and that position can be defined
through their role and status. Their role consists of the part they play in the group and
what corresponding activities they are expected to perform, and each role holds a status.
(Kotler et al, 2012, 221-223)

Lastly, the final segment of consumer buying behavior is the study of the individual itself,
of the buyer’s own characteristics. These characteristics being: the individual’s age and
stage in the life cycle, their occupation and economic circumstances, their personality and
self-concept, and their lifestyle and values. These characteristics have a direct impact on
consumer buying behavior as they come from the individual consumers themselves.
(Kotler et al, 2012, 223) By combining the three segments of consumer buying behavior,
the complete view of consumer behavior is formed. After understanding the processes
behind customer behavior, one can then begin to piece together the processes that lead to
a buying decision, or the buying decision process, which will be explained in the
following sections.

2.3.1 Buying Decision Process

Both the complex and the simple consumer buying decision process illustrated in Figure
5 begins with problem recognition. The problem can be triggered by internal or external
stimuli. Internal stimuli refer to a person’s basic needs: hunger, thirst, sex, among others,
and external stimuli refer to other stimuli a person may encounter within their
surroundings. With the problem being identified, in complex decision-making, the step
that follows is searching for information. The information search can be completed using
the following major information sources: personal sources, including family, friends,
neighbors, and acquaintances, commercial sources such as adverting, websites,
salespeople, dealers, packaging, and displays, public sources such as mass media and
other consumer-rating organizations, and lastly experimental sources where the consumer
handles, examines, or uses the product in question.

Once the information search is completed, the consumer then moves on to the evaluation
of alternatives where the consumer is trying to satisfy a need and is looking for certain
attributes and benefits from different product solutions. All the different options available
are then compared and contrasted in search of the suitable solution. This is called the
 25

consumer evaluation process. This process then leads to the purchase decision. The
consumer may have already established a preference amongst the products and brands
evaluated and may even form the intention to buy said preferred product or brand. When
executing the purchase decision, the consumer then decides on the following traits: brand,
dealer or seller, quantity, timing, and payment method. However, this is the stage where
the purchase decision and/or intention can be interrupted by either public opinions or any
other unexpected situational factors. Lastly, the final stage of the buying decision process
is the post-purchase behavior which includes post-purchase satisfaction, actions, use and
disposal. (Kotler et al, 2012, 239-245) However not all buying decisions follow the model
of consumer decision making. The amount of time and effort put into each decision can
vary depending on the complexity of the purchase. Some decisions are more important
than others, those of lesser importance can be made quickly or even instantaneously.
(Solomon, 2009, 350) Consumers often revert to previous decisions they have made, thus
reducing the actual time spent on each decision. (Solomon, 2009, 381) As also illustrated
in the simple decision-making process in Figure 5, the process jumps directly from
problem-recognition to the purchase decision.
Figure 5 Stages in the Consumer Decision Making (Solomon, 2009, 350)
 27

3 RESEARCH AND METHODOLOGY

3.1 Research Methodology and Data Collection

The aim of this thesis is to find out why people still buy Crocs, regardless of their current
reputation as the “world’s ugliest shoe” by answering the following research questions:

1. How do marketing and branding strategies influence changes in Crocs’ sales?

2. What are consumers’ perceptions of Crocs and how does it affect consumers’
buying decisions?

In order to answer the research questions above, a study will be conducted using both
primary and secondary research methods. Primary research methods are employed when
collecting primary data, or data that has been observed, experienced, or recorded by the
one conducting the research. There are four different ways primary data can be gathered;
through measuring numbers, observing and recording events, interrogation, and
participation. However, other sources that gather and interpret primary data from written
or non-written materials and surveys, called secondary sources, follow secondary
research methods. (Walliman, 2011, 69-70) When conducting secondary research,
however, it is important to assess the quality of the information provided. “The quality of
the (secondary) data depends on the sources and the methods of presentation.” (Walliman,
2011, 71) The study will begin with the conducting of secondary research in order to
answer the first research question asking how marketing and branding strategies influence
changes in Crocs’ sales. It will be a literary review of previously published information
and literature. Such information and literature will include any other research regarding
Crocs’ marketing and branding strategies conducted by other third parties or released by
the company itself as well as yearly financial records and any other published sales trends.

The information gathered from the secondary literary research will then be used as a basis
to create a questionnaire to gather primary quantitative data and secondary qualitative
data from individual consumers, or participants. Quantitative data refers to numerical data
which can then be analyzed using statistical techniques. As quantitative data is gathered
directly from the source, it is considered primary data. Whereas qualitative data, which is
data expressed words rather than numbers, is considered secondary data and requires
different analytical techniques. (Walliman, 2011, 71) Streefkerk suggests that quantitative
data and research is to be used to confirm or test something while qualitative data and
research is used in order to understand something. (Streefkerk, 2019) These results
gathered from the questionnaire will then be studied to answer the second research
question that asks the consumers what their perceptions of Crocs and how it affects their
buying decisions. The research results will also either confirm or contradict the results
collected from the secondary research answering the first research question. The
questionnaire itself will be divided into four sections. The first section establishes the
demographic background of the participants. Combining both multiple choice questions
and open-ended questions, the following three sections determine the respondents’
consumer perception of Crocs, Crocs’ consumer buying behavior and post-buying
behavior. The answers collected from the questionnaire will comprise of both quantitative
and qualitative data, as the questionnaire also includes open-ended questions to allow the
respondents to expand on their answers and provide deeper insight into their opinions.
Once all the accumulated data and research results from both the primary and secondary
research are collected, it will be evaluated to draw conclusions.

3.2 Reliability, Validity, and Limitations

When conducting research, it is crucial that the data collected is reliable and valid as it
indicates the quality of the research. If the data is reliable and valid, so is the research in
its entirety. Reliability refers to the consistency of the measurements of the research while
validity refers to the accuracy of the method of measurements used in research.
(Middleton, 2019) According to Walliman, secondary data is less reliable than primary
data. (Walliman, 2011, 69) Which emphasizes the importance of the use of both in this
research. The secondary data, collected through a literary search, was based on reliable
and valid sources. The primary research conducted by the researcher was collected in the
form of an anonymous questionnaire, which allowed for a larger pool of responses,
therefore reinforcing reliability of the results. The participants were all given the same
questionnaire with the same questions, with both pre-selected answers to choose from as
well as the opportunity to add their own answers.
 29

As the thesis was written and researched during the coronavirus pandemic while COVID-
19 continues to spread, the researcher was limited to online research methods when
conducting the primary research. This did not pose as much of a problem as the
questionnaire was shared online. However, the number of participants the researcher was
able to reach was limited to those who were willing to answer the questionnaire from the
different channels it was shared through.
4 RESEARCH RESULTS

4.1 Secondary Literary Research Findings

4.1.1 Marketing Strategies

While their previous marketing strategies have been flawed, Crocs have since learned
from their mistakes and have been able to develop and deploy a sound and successful
marketing strategy. When Crocs first rose to success in the early 2000s, they used other
well-known marketing techniques to bring in new consumers. Once they realized their
demand was increasing, Crocs decided to open several stores across the globe which
eventually ended up oversaturating the market and creating inventory problems. Their
biggest mistake, however, was taking the negative criticism they received too seriously.
Suddenly the look started to take precedence over comfort. They went against their
branding and started redesigning their iconic Crocs clog. They also started introducing
several new models and types of Crocs which ended up diluting the product range as they
were selling few of many different models. (Shivaranjani, 2021) Another aspect which
led to the initial fall of Crocs was the 2007-2008 financial crisis and the recession that
followed it. Those who were most affected by the crisis could no longer afford to spend
money on non-essential items, such as colorful rubber clogs like Crocs. Because of this,
the company then faced a $400 million loss. (Shivaranjani, 2021)

Things took a turn in 2014 when Crocs decided to invest $24.5 million in restructuring
their marketing strategy by reducing the number of stores and refocusing their product
line on the original concept of Crocs clogs. (Shivaranjani, 2021) However, the height of
Crocs’ turnabout took place after hiring their current CEO, Andrew Rees, in 2017. While
Crocs had partnered with celebrities and other brands in the past, their collaboration with
Balenciaga that released in October 2017 put them back on the map.
 31

Figure 6 Balenciaga Collaboration Crocs (Crocs’ Instagram, 2017)

They made headlines for their “$850 Platform Croc,” pictured above in Figure 6, that
went down the runway of Paris Fashion Week and sold out in a mere few hours after
being released for sale to the public. (New York Post, 2018) Since then, Crocs has taken
a “back to basics” approach with their marketing. They are fully aware of their reputation
of being “ugly” and instead of redesigning and adding more aesthetically appealing
models, they embrace their “ugliness.” Crocs knows that the public is divided where half
absolutely despise the brand based on the iconic clog and the other simply do not. They
stay true to their brand and therefore cater to the audience that love their products while
still involving those who do not. As stated by CEO, Andrew Rees, “our goal is not to
make haters love the brand, it is to exploit that extrinsic tension because creates
opportunity, it creates PR (public relations), create media, it creates interest. It creates a
whole lot that would cost you a fortune to buy in other ways.” Which proves that Crocs
aims for the shock value to spike interest from consumers. When asked about the subject,
CEO, Rees stated that “(a collaboration) needs to be a little controversial, but not too
controversial.”
As per Crocs’ 2020 annual report:

Each season, we focus on presenting a compelling brand story and experience for
our new product introductions as well as our on-going core products. We employ
social and digital marketing centered on showcasing our clog and sandal silhouettes
and our Jibbitz™ charms. We are growing our clog silhouette with new colors,
graphics, licensed images, embellishments, and accessories, such as Jibbitz™
charms, that allow for personalization. We are expanding our sandal offerings as
we pursue a greater share of a large market that currently has no clear global leader.
We are continuing to invest in designer, celebrity, and brand collaborations, as well
as celebrity brand ambassadors to raise consumer engagement with our brand.
(Crocs Annual Report, 2020, 4)

As part of their improved marketing strategy, Crocs strives to collaborate with other
strong brands and influential celebrities by launching special edition collections of Crocs
designed by their collaborators with varying colors and themes. By collaborating with
other brands and celebrities, such as Justin Bieber and Post Malone, among others, they
create powerful interest from their fans and followers. After seeing major success from
both collaborations, Crocs found that by collaborating with celebrities are true fans of the
brand, they add a higher degree of authenticity to the launch as the fans and consumers
do not need to question Crocs’ collaborators truly stand for the brand, as per McKinnon.
Not only does Crocs collaborate with celebrities with larger followings, but they also
collaborate with comparatively smaller influencers. When asked, Crocs’ president,
Michelle Poole, had the following to say regarding their collaborations with internet
influencers. “Influencer strategy is a really critical part of our marketing playbook. And
it has evolved…We think about our influencer strategy as a rich tapestry of interest and
affinities and geographies – and we stitch them together like a quilt.”

While collaborating with other brands and celebrities, Crocs’ main channel to promote
and market their collaborations, as well as their own brand, is social media, namely
Instagram and TikTok. Both increasing popular social media platforms to share photos
 33

and content. With the use of hashtags and other fun posts, Crocs boosts their online
presence and interaction with their consumers. They also use blockbuster films to
promote themselves and their products, such as the Marvel franchise, a $50 billion movie
franchise (Chmielewski, 2021). The main characters in at least three of Marvel’s recent
films can be seen wearing Crocs in at least one scene. These films being both Deadpool
movies, released in 2016 and 2018 respectively as well as the 2021 release of The Suicide
Squad. Whether through their own intentions or not, Crocs still gains from the usage of
Crocs in movies which then maximizes their exposure to potential consumers.

Another component to their improved marketing strategy is the limitation of distribution.

This strategy creates a fear of missing out that further drives consumers to buy their
products while they are available before they are too late. (McKinnon, 2021) This strategy
is then also combined with their collaborative strategy, marketing their collaboration
Crocs as “limited edition” Crocs and limiting their supply to boost interest and maximize
sales. As a response to the 2020 coronavirus pandemic that quickly took over the world,
Crocs launched “A Free Pair for Healthcare.” Which is a campaign that offered healthcare
workers on the front lines of the pandemic, a free pair of Crocs. As of November 2021,
the campaign has collectively donated over 900k pairs of Crocs to the front lines. (Crocs
2021) While, generous and civic-minded, the campaign also serves as a marketing
strategy.

4.1.2 Branding Strategies

Crocs’ branding has not changed significantly since its introduction to the market. Named
after their crocodile snout-like design, Crocs’ brand identity surrounds itself around the
crocodile. Their iconic logo, an anthropomorphic crocodile, or a croc as referred to
colloquially, physically represents the brand and is immediately recognizable to their
consumers. It also symbolizes the amphibious nature of the clogs themselves, as they are
waterproof and long living, or long-lasting. (Kwok, 2021) Their logo is printed on the
side buttons of all their products, as seen in Figure 1. Their brand name is also written on
the bottom of the shoes, leaving an impression of the brand on the wearer’s footprints.
Through its brand identity, Crocs has built a fun and cheerful brand personality. Such
brand elements include the logo and brand itself, the bright colored and patterned varieties
the shoes themselves are available in as well as their inclusion of Jibbitz charms that allow
and encourage the consumers to add their own personalized touch to their Crocs. Crocs
also appeals to their customers emotionally with their “come as you are” tagline which
encourages the consumers to feel comfortable and confident in their own shoes. They also
appeal to them rationally with their comfortable and practical design. (Kwok, 2021) Crocs
brands themselves, as well as their consumers, regardless of age, as young, stylish, and
confident while at the same time emphasizing their brand positioning. While they state
they are “made for everyone,” the nature of the brand identity suggests that their target
market is a younger demographic. Their competitive framework, or what sets them apart
from their competition, is their product itself, colorful customizable foam clogs. Their
brand benefit, or brand promise, is as their product, unique and comfortable.

However, while the brand identity cultivated by Crocs aims to associate itself positively
within its consumers’ minds, the brand image may differ. When asked about their iconic
2020 Kentucky Fried Chicken collaboration, Global Chief Marketing Officer, Terence
Reilly said “we know it’s always been a polarizing brand, but remember, when you are
polarizing, that is one side of the polarization that loves you.” This implies, however, that
the other side of the polarization have strong negative feelings about the brand, thus
emphasizing their negative brand image and reputation. As mentioned before, one of the
biggest mistakes that led to Crocs’ fall in 2008-2009 was going against their branding.
(Shivaranjani, 2021) Their marketing strategy no longer supported their branding
strategy. As per the company introduction, Crocs were not designed to look good, they
were designed purely as a practical and comfortable footwear solution. They know that
they are ugly, but now embrace it as part of their brand. The product description of the
original Crocs clogs states the following:

Classic Clog: Original. Versatile. Comfortable. It’s the iconic clog that started a
comfort revolution around the world! The irreverent go-to comfort shoe that
you’re sure to fall deeper in love with day after day. Crocs Classic Clogs offer
lightweight Iconic Crocs Comfort, a color for every personality, and an ongoing
invitation to be comfortable in your own shoes. (Crocs, 2021)
 35

This description further reinforces their branding as an “iconic clog” and a “go-to comfort
shoe” and to their consumers when they are purchasing Crocs.

4.1.3 Sales Figures and Trends

Crocs Annual Renenue 2005-2020 in billions of USD

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 7 Crocs Annual Revenue 2005-2020 in billions of USD (Macrotrends)

Figure 7 above is a graph that represents Crocs’ annual revenue between the years 2005
and 2020. The first peak in sales can be seen in 2007, where the annual revenue amassed
to $850 million. After which, as mentioned previously, Crocs’ sales begin to rapidly
decrease until it reaches a low of $650 million in 2009. From then on, the annual revenue
steadily increases until it dips slightly between 2014 and 2017 which then starts to
increase again in 2018, the same year that Crocs released their collaboration platform
Crocs with Balenciaga. The graph then ends where Crocs reached an all-time high of $1.4
billion in 2020, despite the coronavirus pandemic. This graph further proves that once
they implemented their new marketing strategy, they were able to reach a much larger
market, increasing popularity and maximizing sales and revenue.
Figure 8 Google Searches for Crocs 2005-2020 (Google Trends, 2021)

Numbers represent search interest relative to the highest point on the chart for the
given region and time. A value of 100 is the peak popularity for the term. A value
of 50 means that the term is half as popular. A score of 0 means that there was not
enough data for this term. (Google Trends, 2021)

Figure 8, above, represents a graph of Google searches, or “interest over time” as labeled
and explained by Google Trends, worldwide between January 1, 2005, and December 31,
2020. The first significant peak of 82 can be observed in June 2007 and following
significant peak 67 in June 2019. The highest amount of Google searches for Crocs in
recorded history can be seen in April 2020. While not as popular after June 2007, Crocs’
online interest remained steady. However, as proven before in Figure 7, continued interest
did not translate to continued sales and revenue, as their revenue began to plummet in
2008. The graph also shows fluctuation with highs in summer months and lows in winter
months in the northern hemisphere which is expected as the original Crocs clogs were
designed for warmer climates.

4.2 Primary Research Findings: Questionnaire Responses

Based on the information gathered from the secondary research about their updated and
improved marketing strategy, a questionnaire was created in order to determine what
consumers’ perception is of Crocs as well as how it affects their buying decisions. In
order to relate to the participants, the questionnaire itself was designed to appear
entertaining to the participants while still gathering valuable and interpretable data. This
approach was chosen to reflect the nature of the topic of Crocs and create more interest
 37

in answering the questionnaire as well as to maximize the number of responses. In order

to maintain the validity and reliability of the research, however, the questions and answers
were analyzed and presented professionally and academically.

The questionnaire was primarily shared online via different channels in order to reach the
maximum number of possible participants, beginning with the researcher’s personal
Instagram account where their followers had access to the questionnaire link. Next, the
questionnaire was shared on the online platform Reddit where users can share and discuss
topic-specific content on different threads. In order to maximize the number of responses,
the questionnaire was posted to Reddit threads listed below, where over, collectively, 7.8
million potential users had access to it.

• r/Crocs, followed by 6.5k users, which is a Reddit thread created by Crocs for
Crocs consumers to share photos, comments, and other Crocs-related posts.
• r/SurveyExchange, followed by 6k users, which, as the name suggests, is a thread
designed for exchanging surveys.
• r/teenagers, followed by 6.65 million users, which is a thread for teenagers to
share content.
• r/GenZ, followed by 53k users, which is a thread for Generation Z members to
share content.
• r/college, followed by 584k users, which is a thread for college and/or university
students to share content.
• r/shoes, followed by 345k users, which is a thread for sharing specifically shoe-
related content.
• r/samplesize, followed by 174k users, which is a thread designed for those who
need a varied sample size of participants for surveys, questionnaires, and polls.

Lastly, the questionnaire was also sent out from the administration via email to other
International Business students at Vaasa University of Applied Science.

After being available to the public for a week, the questionnaire collected a total of 145
responses internationally. The participants were asked whether they owned Crocs or not
and of the 145 collected responses, 110 replied that they did own a pair of Crocs and 35
who did not. As the aim of the study was to find out why people buy Crocs, only the
responses of those who own Crocs were analyzed. Upon interpreting the questionnaire
responses, however, it was found that of the 110 participants that did own Crocs, only
85% of them had purchased them themselves. Out of the total 145 collected responses
from the questionnaires, only 94 responses were left to be analyzed as the aim of the
research is to determine why consumers buy Crocs.

Do you own a pair or Crocs?

35, 24%

yes
no

110, 76%

Chart 1 Participants who own Crocs

 39

Participants who purchased their own

Crocs

16, 15%

purchased themselves
did not, were gifted

94, 85%

Chart 2 Participants who purchased their own Crocs

4.2.1 Demographic Background

The questionnaire began by establishing the participants’ demographic background to

create a further understanding of the participants and their responses to the questionnaire.
The participants were asked their age, gender identification, and geographic location. As
mentioned, they were also asked if they own a pair of Crocs and then of those who do,
they were asked what type of Crocs they own as well.
 How old are you?
2, 2%

6,
6% 13, 14%

18 or younger
12, 13%
19-25
26-30
31-40
21, 22% 41-50
40, 43% 51+

Chart 3 Participants' age

Of the participants surveyed, 57% of them are a part of the Generation Z, “Gen Z,” or
younger. Members of Gen Z are born between 1997 and 2012 putting them between the
ages of 9 and 24. Those who are “Millennials,” part of Generation Y, are born between
1981 and 1996 meaning they are currently between the ages of 25 and 39. (Kasasa, 2021)
35% of the participants surveyed were found to be Millennials. Finally, Baby Boomers
and members of Generation X are born between 1946 and 1980 putting them between the
ages of 41 and 75, making up the final 8% of the participants. (Kasasa, 2021) At 40%,
most of the participants were older members of Gen Z, between the ages of 19 and 25,
followed by younger Millennials, between the ages of 26 and 30, at 21%. This means that
these results confirm that Crocs’ updated marketing and branding strategies are reaching
their younger target demographic, as found in the secondary literary review. However,
as the author of the thesis is also within the age of 19 and 25 and the questionnaire was
shared with their Instagram followers and university peers, the abundance of participants
of similar ages is understandable. This can also be explained as the questionnaire was also
shared on Reddit threads titled r/GenZ, r/teenagers and r/college.
 41

How do you identify?

1, 1%
6, 7%

he/him
36, 38%
she/her
they/them

51, 54% other

Chart 4 Participants’ gender identification

The majority, 54%, of the participants identify themselves using she/her, or female,
pronouns. 38% of the participants identify themselves using he/him, or male, pronouns.
Whiles the remaining 8% identify themselves using they/them or other gender identity
pronouns, 7% and 1% respectively. Meaning that 7% of the participants do not identify
with either female or male pronouns and instead identify with gender neutral pronouns.
This could mean that Crocs appeal more to those who identify as females, and they are
then more likely to buy Crocs. However, Crocs are “unisex” shoes and have been
designed to cater to everyone, regardless of age or gender, as per their branding mentioned
earlier.
 Location
50
46
45

40

35

30 28

25

20

15

10 8 7
5
1 1 1 1 1
0
USA Finland UK Canada Denmark Mexico Spain Australia Nepal

Chart 5 Participants' geographical location

Most of the participants were located in the US, making up a total of 49%, followed by
the 30% living in Finland. As the questionnaire was shared through the researcher’s own
personal Instagram account as well sent directly to other students also studying at Vaasa
University of Applied Science, located in Finland, the large about of the respondents
living in Finland was expected. However, the overwhelming number of participants living
in the USA was unexpected but reasonable, as many online users are located in the USA.
A total of 57% of the participants were located in the Americas, 41% in Europe, and the
final 2% were located in Asia and Australia. Considering that the number of online users
in Asia vastly out-number those in the Americas in general, the fact that only 1% of the
participants was located in Asia is remarkable. However, it proves that there is a larger
number of American users than Asian users on the particular Reddit threads where the
questionnaire was posted.
 43

Assuming that you answered yes to the previous

question, what kind of Crocs are they?
90
81
80

70

60

50

40

30
22 20 19
20
9
10
3
0
original Crocs lined Crocs other collaboration platform Crocs fake "Crocs"
clogs Crocs

Chart 6 Types of Crocs owned by participants

The participants that answered that they did, in fact, own a pair of Crocs were then asked
to name what specific models they owned. They were given the following choices and
were asked to tick all that applied: original Crocs clogs, collaboration Crocs such as a pair
from a celebrity collection or any other limited-edition Crocs, platform Crocs, flip flop
Crocs, boot Crocs, faux-fur lined Crocs, as well as a blank space where they could add
any other model not motioned. The most popular Crocs owned amongst the participants
were the original Crocs clogs, their best-selling model; owned by 86% of the participants.
23% of the participants stated they owned lined Crocs, 20% owned collaboration or
limited-edition Crocs, and 10% owned platform Crocs. However, 21% of the participants
stated that they owned other types of Crocs including flip flops, boots, and as well as
other models. Amongst the 94 participants, three of them mentioned that they owned fake
“Crocs,” while not being the original Crocs, most counterfeit “Crocs” have very similar
designs, if not identical.
4.2.2 Consumer Perception of Crocs

The following section of the questionnaire focused on the consumers’ perception of

Crocs. The participants were asked their overall opinions of the design of the original
Crocs clog, as presented in Figure 1, in an open-ended question. While most responses
simply stated that they were comfortable and/or ugly, some had other comments. 20
responses commented on the comfort and 25 stated the were ugly, four even went as far
as to say they were hideous. One participant, however, described their “ugliness” as,
“They are so ugly they are actually cool.” This sentiment was also shared by eight other
participants, where they are aware that they are ugly, but enjoy the aesthetic regardless.
Another wrote the following: “They are ugly, certainly. But they are kind of like ugly dog
breeds, once you get into them you start thinking they are cute. Really, they are so
comfortable that the ugliness is worth it.”

13 participants also commented on the practicality and functionality of the design,

including the adjustable strap, six of them commenting that the design and material they
are made of allows for easy cleaning. One participant wrote, “I think is heavily oriented
in the functionality of the product, which is not a bad thing at all, actually I think that is
the reason they are so popular. The design is a ‘I do not care if you think I look bad, I feel
comfortable.’”
 45

Did their appearance have an impact on

your decision to buy them?

25, 27%
38, 40% no
yes, I do not like their appearance
yes, I like their appearance

31, 33%

Chart 7 Crocs' appearance influence on participants

When asked if the Crocs’ appearance had any impact on their decision to buy them, the
majority of the participants, a total of 60% of the participants stated that their appearance
did influence their decision to purchase Crocs. The remaining 40% stated that their
appearance did not influence them. Other aspects, such as comfort of the shoes, took
higher priority than appearance with regards to their decision to purchase them. The
majority of most age groups stated that they were not impacted by their appearance
including, 43% of the 19-25 age group, 50% of the 31-40 age group, 50% of the 41-50
age group, and 50% of the 51+ age group. Of those who were impacted by their
appearance to buy them, 27% of the participants stated that they were positively
influenced by their appearance. 33%, however, did say that they were negatively
influenced by their appearance, stating that they find the appearance disagreeable or ugly,
but still choosing to buy them regardless. The majority, 48%, of the 18 or younger age
group chose this option as well as 38% of the 26-30 age group and the other 50% of the
51+ age group. Which could mean that they either purchased them because of their “ugly”
appearance or despite of it.

Have you heard of Crocs being called "the

ugliest shoes ever?"

14, 15%

yes
no

80, 85%

Chart 8 Crocs as "the ugliest shoes ever"

As mentioned previously, Crocs has received a notorious reputation as being “the ugliest
shoes ever.” When asked if the participants were aware of their reputation, an
overwhelming 85% chose yes. Again, considering most of the the participants’ age and
how the survey was shared, the number of participants that were familiar with Crocs’
reputation of being “the ugliest shoes every” was expected. Of the 15% that were not
aware, most of them, 43%, were aged between 19 and 25. Those six participants that
make up the 43%, only constitute 13% of the entire age group surveyed, however.
 47

Do you, personally, agree with the

statement "ugliest shoes ever?"

19, 20%

yes
41, 44%
neither agree nor disagree
no

34, 36%

Chart 9 Participants' opinion on "the ugliest shoes ever"

When asked if they agreed with the statement “ugliest shoes ever” most of the
participants, 44%, did not agree while only the minority of 20% agreed that Crocs are, in
fact, the ugliest shoes ever. 36%, however, neither agreed nor disagreed with the
statement. All 19 participants that agreed with the statement, had all answered that they
had heard of their reputation in the previous question, 47% of them belonging to the 19-
25 age group. 76% of the 41 participants that did not agree with the statement had also
answered that they had heard of it. Of the 14 participants that had not heard of their
reputation as “the ugliest shoes ever,” 71% also did not agree with the statement, while
the remaining 29% did not agree or disagree.

The participants were then asked in an open-ended question what they associate with
Crocs. 36 of the responses included the word “comfort” in one way or another and another
11 their practicality and functionality. Which once again were the most common
responses. One participant wrote, “Not caring what anyone thinks and choosing comfort
for myself” while another wrote “guilty comfort.” Another 11 responses, however, also
mentioned the word “summer,” while only three of them mentioning them being ugly.
One participant even wrote “2008,” the year where Crocs reached their first peak in
popularity, as well as the year they started their downfall.

Have you always liked Crocs?

20, 21%

34, 36% yes

no
I did not before but now I do
I have no opnions

33, 35% 7, 8%

Chart 10 Participants’ standpoint on Crocs

The participants were then asked about their standpoint of Crocs where they were given
the following options to choose from: they have always liked Crocs, they have never liked
Crocs, they did not like them before but now do, or they have no significant standpoint
on whether they like or dislike Crocs. 36% of the participants stated that they have always
liked Crocs followed closely by another 35% of the participants stating they used to
dislike them but have since changed their opinions. Those participants who have changed
their opinions may have been influenced by Crocs’ return to popularity in recent years.
The minority of the participants, 8%, stated that they have always disliked Crocs, but they
still own at least one pair. Of those seven participants, 8%, four of them also agreed that
 49

Crocs are “ugliest shoes ever” and none of them disagreed. The final 21% of the
participants neither like nor dislike Crocs.

Would you agree that more people buy

Crocs now than they did before?

12, 13%

yes

49, 52% I don't know, I have not noticed

33, 35% no

Chart 11 Participants’ perception of consumer buying behavior

When asked if the participants had noticed if Crocs’ consumer buying behavior had
changed and more people were buying them than they did before, 52% said yes. Of the
remaining 48% of the participants who have not noticed an increase in consumer buying
behavior, 13% could confidently state they have not, while the other 35% could not say
for certain. These results suggest that Crocs’ increase in sales and popularity has become
noticeable enough to other consumers. However, these results are also relative, as they
are based on the respondents’ own experiences.
 Have you seen Crocs on social media?

12, 13%
29, 31%
yes, all the time
yes, but only a little bit
no

53, 56%

Chart 12 Consumer perspective on Crocs on social media

As Crocs’ new marketing strategy has been designed with the aim to reach a vast younger
demographic, their main channel to achieve their goal is through social media. By asking
the participants if they had seen Crocs on social media or not, the effectiveness of their
marketing reach can be determined. A combined total of 87% of the participants had,
indeed, seen Crocs on social media before. Of those 87%, 31% admitted to having
frequently noticed Crocs mentioned on social media while the other 56% less so. Of the
remaining 12 participants who had not seen them, 11, or 92% of them had either disagreed
or not noticed that the consumption of Crocs had increased.

4.2.3 Crocs’ Consumer Buying Behavior

Once the participants’ perception of Crocs was established, the following section of the
questionnaire asked the participants about their own buying behavior of Crocs.
 51

Would you agree that Crocs' social media

presence affected your decision to buy
them?

23, 24%

yes
no

71, 76%

Chart 13 Crocs' social media presence influence on participants

When asked if Croc’s social media presence affected their decision to purchase Crocs in
any way, 76% chose no while only 24% disagreed and chose yes. These results suggest
that the 24% of the participants that had been influenced by social media, purchased their
Crocs after the 2014 restructuring, when Crocs’ marketing strategy became focused on
social media, as it developed into a popular channel to market directly to consumers. To
follow up this question, the participants where then asked what influenced their purchase
if social media did not. Which provided an opportunity for the participants who had
answered no, to write what other factors influenced their purchase instead. This question
tied in with the following question in which the participants were asked why they
purchased Crocs.
 Why did you buy Crocs?

practicality, convenience 42

comfort 42

appearance (overall appearance, customization, and

19
uniqueness)

following the trend 8

affordability 8

other reasons 5

0 5 10 15 20 25 30 35 40 45

Chart 14 Most common reasons why participants bought Crocs

Once again, the most common answers provided by the participants were in more than
one way, referring to the practicality and comfort of Crocs when asked why exactly they
purchased Crocs. Where 42 participants mentioned the practicality or convenience of
Crocs, such as being easy to wear and clean due the design and material of the shoes, and
another 42 participants mentioned comfort. 19 participants referred to the overall
appearance of Crocs being the primary reason why they purchased Crocs, including
factors such as: the different color options, the ability to customize Crocs with Jibbitz
charms, and the uniqueness of their appearance. Eight participants indicated that the main
factor behind their purchase was the low price, or affordability. Another eight participants
simply stated that they were following the trend and decided to buy a pair for themselves
because of it. All eight participants who purchased Crocs to follow a trend were 40 years
old or younger. These results suggest that the main factors that influenced the surveyed
consumers’ decision to purchase Crocs revolved around comfort and practicality followed
by other factors related to the overall aesthetics. As many participants shared more than
 53

one reasons as to why they purchased their Crocs, each response was analyzed
individually, and all the reasons were accounted for.

Where did you buy your Crocs?

3, 3%

in-store
39, 42% online
52, 55%
other

Chart 15 Where participants bought Crocs

The following question asked the participants where they bought their Crocs; online, in
store, or through other channels. It assumes those who bought their Crocs in store most
likely purchased them during Crocs’ first boom between 2007 and 2008 where they were
readily available in stores across the globe and those who purchased them online most
likely did so during or around the second boom of 2020. 55% of the participants answered
that they purchased them in store, 42% bought them online, while the remaining 3%
acquired them through other channels.

4.2.4 Crocs’ Consumer Post-Buying Behavior

The following section of the questionnaire asked the participants about their post-buying
behavior and attitude towards Crocs. They were asked when and how often the wear them,
what they have come to value most about them since purchasing them, and lastly, if they
would buy another fair in the future.

When do you mostly wear your Crocs?

45
40
40

35

30
24
25

20

15 12
9 8
10

5
1
0
quick practical all the time casually at work/school around the house other
reasons

Chart 16 Most common responses when participants wear Crocs

When the participants were asked when or where they wear their Crocs most often, 43%
answered that they only wear them briefly for practical reasons to run quick errands. 26%
of the participants, however, answered that they wear their Crocs all the time and another
13% wear them casually. 10% wear them mostly at work or school and another 9% only
wear them at home. By combining those who wear them casually and at work or school,
then a combined total of 23% of the participants wear them for a significant amount of
time as well as those 9% who wear them at home.
 55

What do you value most about your Crocs?

other 2

design (holes, material, ankle strap "sport mode") 5

durability, quality 9

color, style 11

uniqueness, customization (Jibbitz charms) 13

practicality, convenience, easy to wear and clean 38

comfort 44

0 5 10 15 20 25 30 35 40 45 50

Chart 17 Participants' most valued aspects of Crocs

The participants were then asked what aspect they valued most about Crocs since their
purchase. Once again, many participants valued more than one aspect of their Crocs,
however, as the responses were analyzed individually, each aspect mentioned was
counted. To confirm the previous results once again, 44 participants mentioned comfort
and another 38 valued their practicality, convenience, and ease of use and cleaning. 13
participants wrote that they valued the uniqueness of Crocs’, including their ability to
customize their Crocs using Jibbitz charms and 11 participants valued the different colors
and styles of Crocs available. Nine participants mentioned the durability and quality of
their Crocs. Five participants discussed the design of the Crocs themselves. Elements such
as the placement and number of the ventilation hoes, the ankle strap that can be adjusted
from slippers to “sport mode” which supports the ankle and keeps the Crocs in place on
the wearers’ feet, as well as the Croslite material they are made of.
 Would you buy another pair?

7, 7%

17, 18%
yes
maybe
no

70, 75%

Chart 18 Participants' willingness to buy Crocs again

Lastly, with the previous questions in mind, the participants were asked if they would
consider buying another pair in the future. Out of 94 participants, 75% of them answered
that they would while 7% would not. These results indicate at least 70 of the participants
enjoy and value their Crocs enough to purchase another while. The remaining 18% simply
stated that they may or may not consider buying another pair in the future.
 57

5 CONCLUSION

5.1 Discussion and Reflection

To summarize, the aim of the thesis was to determine the factors that drive Crocs’ success,
despite their negative brand reputation of being the “world’s ugliest shoes” as well as the
current social and economic situation during the coronavirus pandemic. by answering the
following research questions:

1. How do marketing and branding strategies influence changes in Crocs’ sales?

2. What are consumers’ perceptions of Crocs and how does it affect consumers’
buying decisions?

With regards to the first question, Crocs’ marketing and branding strategies heavily
influence any changes in sales. As the research suggests, Crocs’ original marketing plan
“failed” as once they realized there was a potential market outside their intended
demographic of boat goers and other professionals, they turned and attempted to market
Crocs to the masses. The plan worked for a few years and brought them a lot of exposure
and success. However, over time, their strategy became less effective and eventually
stopped working all together in 2008 as they moved further and further away from their
branding and sales reached an all-time low in 2009 since their introduction. They failed
initially due to market oversaturation, dilution of their product range, the decision to
redesign their iconic products after receiving negative criticism and allowing their iconic
Crocs clog design to lose its individuality. While brands usually should listen to their
customers’ feedback and make changes accordingly, this did not work for Crocs. By
redesigning their iconic Crocs clogs and introducing other models, Crocs became just
another fish in a sea of footwear brands.

Once they “re-found” themselves and began to re-embrace their “spark” of originality
and uniqueness, or even their “ugliness,” Crocs found success again in 2018, 10 years
later, and have remained continuously successful as a niche product in a global market.
Against all odds, Crocs has also become even more successful since the coronavirus
pandemic, unlike other footwear brands or businesses in general. Crocs stays true to their
brand; iconic, yet comfortable. They are a niche brand while still appealing to the masses
in a new era where social media and trends have strong influences on consumers. They
found themselves successful in multiple key markets, not only in their original market for
those who needed practical and comfortable footwear solutions, but also within younger
Generation Z markets, as they are avid social media users and followers of social media
trends. 43% of the questionnaire participants were found to be older members of
Generation Z, aged between 19 and 25.

60% of the participants were impacted by Crocs’ overall appearance while purchasing
them, both positively and negatively. While 20% of the participants agree that Crocs have
earned their reputation as “the world’s uglies shoes,” the majority 44% disagree. When
asked, 52% of the participants had noticed an increase in consumer buying behavior. 87%
of them had also noticed Crocs mentioned on social media, in some way or another. 24%
of the participants were directly impacted by Crocs’ social media presence to purchase
them and eight participants admitted to following the trend of others around them and
online purchasing Crocs. These results, combined with the current sales figures, confirm
that while Crocs may have a negative brand reputation, it does not stop consumers from
purchasing from the brand. Overall, consumers are aware that Crocs are ugly, and either
buy them regardless of their “ugliness” or they simply do not prioritize their appearance
over other factors. When asked directly why they purchased Crocs, the top two factors
mentioned by the participants were the comfort and practicality of the shoes themselves
followed then by the overall appearance.

In conclusion, Crocs owes their success to their marketing strategy that supports their
original design and remains true to their brand. The originality and, most of all, the quality
of the design and the comfort of the product drives their success, regardless of their
reputation as “the world’s ugliest shoe.”

5.2 Suggestions for Future Research

After the primary study was concluded and analyzed, a few suggestions for future
research were realized. Firstly, there was a clear majority of participants belonging to one
age group. As the participants of the questionnaire were anonymous, such data cannot be
 59

controlled. Most of the participants were also located mainly in two countries, rather than
spread out internationally, as the research was limited to the pool of participants reachable
with the resources available to the researcher. For future research, a wider group of
participants with varying demographic backgrounds could be surveyed as it may impact
their opinions and, therefore, also impact the results.

Once the questionnaire results were finalized, 51 responses had to be omitted from the
study, which decreased the total number of responses substantially, from 145 to 94, as
mentioned previously. Of the omitted responses, 35 of the participants answered that they
did not currently own Crocs and the other 16 did not purchase them themselves. While
their opinions were interesting and valid, they were irrelevant to the research as it was
targeted, specifically, to Crocs’ current consumers. In future studies, to facilitate data
analysis, the potential respondents should be made aware of the target group and the
questionnaire itself should include a question that asks them whether they purchased their
own Crocs or not. The participants should have also been asked when they purchased
their Crocs. This would then differentiate those participants who recently purchased their
Crocs from those who purchased them during their first boom in popularity, years prior,
as their opinions may vary.
6 RESOURCES

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APPENDIX

1. First things first, how old are you? * Mark only one oval.
o 18 or younger 19-25
o 26-30
o 31-40
o 41-50
o 51+
2. How do you identify? * Mark only one oval.
o She/her
o he/him
o they/them
o other
3. Tell me where in the world you are *
4. More importantly, do you even own a pair or Crocs? * Mark only one oval.
o yes, of course, otherwise I wouldn't even be answering this thing
o nope, I just like torturing myself by answering surveys
5. Assuming that you answered yes to the previous question, what kind of Crocs are
they? *
Tick all that apply.
o original Crocs clogs
o collaboration Crocs (ex: a pair from a celebrity collection or any other
limited-edition Crocs)
o platform Crocs
o flip flop Crocs
o boot Crocs
o the ones that are fuzzy inside
o Other:
6. In your humble opinion, what do you think about Crocs' design? *
7. Did their appearance have an impact on your decision to buy them? * Mark only one
oval.
o yes, they're BEAUTIFUL I want one in every single color
o yes, they're HIDEOUS but I still bought them though
o nah, just here for the comfort
 65

8. What do you associate with Crocs? *

9. Have you heard of Crocs being called "the ugliest shoes ever?" * Mark only one
oval.
o Yup
o oh really? no, I just thought they looked cool and unique
10. Do you, personally, agree with the statement "ugliest shoes ever?" * Mark only one
oval.
o nope!
o mixed feelings, so I'm just gonna say maybe
o yes, definitely the biggest abomination in footwear
11. Have you always liked Crocs? * Mark only one oval.
o absolutely, I'm a true fan, they're my ride or die!
o nope, I've always hated them
o I used to hate them but now I've joined the other side and they're my
favorite shoes ever
o I have no opinions about Crocs
12. Would you agree that more people buy Crocs now than they did before? * Mark
only one oval.
o yeah definitely, I see people wearing them everywhere now
o dunno, haven't really noticed
o nope
13. Have you seen Crocs on social media? * Mark only one oval.
o yes, they're all over my feed!
o a lil bit here and there
o no, what even are Crocs?
14. Would you agree that Crocs' social media presence affected your decision to buy
them? * Mark only one oval.
o yes absolutely!
o nope, social media didn't play a role...I just needed some shoes, man
15. If social media didn't influence your purchase, what did?
16. Here's the money question: Why? Why did you buy Crocs? *
17. Where did you buy your Crocs? Mark only one oval.
o Online
o in-store
o other? Where else do people buy shoes nowadays?
18. When do you mostly wear your Crocs? * Mark only one oval.
o all the time
o at work because comfort
o casually to go with the fit (fit = gen z slang for outfit)
o I just throw them on when I need to walk the dog or pick up the mail
o Other:
19. What do you value most about your Crocs? *
20. This is the last question, I promise: Would you buy another pair? * Mark only one
oval.
o YES!
o yeah no...maybe?
o nah
67