Paez Case Solution

1. The criteria used for analysing the positioning statements are the 3C's framework, which analyses how well the positioning statements fit the company's resources, meet consumer needs, and do not overlap with the competition. 

In conclusion, Option 4: An Argentine Lifestyle Brand seems the best fit for the company as it allows the brand to build upon the know-how of the Argentine culture. Further, it also gives room if positioned along with values on the brand value pyramid to extend into other categories for growth. This growth would help in reinforcing the lifestyle image. It also propagates a consumption lifestyle where consumers will be able to build their whole lifestyle with Paez’s products to meet their ideal self. Further, the purchase behaviour being driven by feel and aesthetics allows the brand to introduce new fresh products i.e., product extensions. The twist elements will help them competing against TOMS as they’d be providing consumers with products that interest them and could be accommodated in their daily lifestyle. This lifestyle message will help in inspiring the consumers in terms of being independent, appreciating their lifestyle, and infusing a fun element within their lives.  

2. TOMS has crafted a unique business model for itself, which allows it to bank upon a social cause called 'One to One' mission. The company, through this mission, sold a basic product at a higher price point, portraying that the customer is donating the second pair of shoes for free to someone needy, whereas in actual he/she was buying two pairs of shoes. Despite this, TOMS had been successful in propagating this idea to the consumer who, under the false impression, felt good about purchasing these shoes as they believed that they were contributing towards a social cause.