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Marketing Plan By:

Caitlin OConnor
Lauren Dearman
Lisa Benway
Nick Russo
Joe Sabatino IV

April 21, 2015


Illinois State University Marketing 338
Dr. Kaufman

I.

Table of Contents
I.

Table of Contents

II.

Executive Summary

III.

Situational Analysis
1. External Analysis

2. Competitive Situation

3. Customer Analysis

Opportunity & Issue Analysis (SWOT)

10

V.

Goals & Objectives

12

VI.

Marketing Strategies

IV.

1. Primary Target Market

12

2. Secondary Target Market

13

3. Marketing Mix

14

4. Contingency Plan

17

VII.

References

18

VIII.

Appendices
A. Aggregate Market Factors

19

B. Photos of Product & Competitors

20

C. Competitive Analysis

21

D. Value Chain Analysis

24

E. Survey

25

F. Perceptual Map Comparing Other Attributes

31

G. Repositioning Maps

32

H. Financial Strategy

34

I.

37

First Blush Retail Displays

J. Promotional Implementation Timeline

38

K. Script and storyboard _____________________________________________ 39

II.

Executive Summary
Within the past decade, the clothing and footwear industry has grown roughly 10% each year [1]. With the

industry predicted to grow to $211.5 billion U.S. dollars by 2018, it is important for companies who are in the industry
to grow and make moves to put themselves above their competition [2]. Timberland has been a major competitor in the
clothing and footwear industry and continues to grow. Their green initiatives have put them above their competition in
terms of green facilities.
Timberland is now creating an eco-friendly line of boots. One boot in particular is called the Earthkeeper.
Made of recycled and reused materials, the Earthkeeper boot is made for the adventurer who truly cares about nature.
Timberlands main strategy when producing the product was to introduce a new product that uses recycled material and
helps reduce their carbon footprint. With little to no competition in the sustainability area of the product, we focused on
products that were similar in style, price, and company awareness, meaning we chose companies that made boots that
people wear.
Marketing analysis, comprised of surveys and interviews, showed that the current customers perceptions of
Timberland and their competitors. Price and style were revealed to be the most important aspect of the product when it
came to the purchasing decision. The marketing analysis also revealed who our primary and secondary target market
are: Primary Market is males and females between the ages of 18-35 middle to upper class people who are eco-minded
and active/outdoors oriented, focusing on males. Our secondary market are the males and females who are 18-35,
middle to upper class, but focus on the style aspect of the products. Our surveys and interviews have shown us that there
are a select few that care only about the style and not about the sustainability.
Considering the target market is between the ages of 18-35 and making <$15,000-$30,000 per year, the
primary objectives for our marketing campaign are to increase awareness of the Earthkeepers footwear. With increasing
the advertising and promotional budget, they will not only focus on the durability and quality of the premium boot, but
also emphasize the many ways they contribute to reducing the overall impact on the environment. In addition,
Timberland will increase educating their target market on the different sustainable aspects of the premium boot as well.
Educating consumers on the differentiated product will in turn lead to an increase in brand awareness. Furthermore, the
increased brand awareness will lead to acquiring all available market share within the premium footwear industry. The
marketing mix is primarily responsible for generating brand awareness. With that, the various advertising and
promotional tools that will be utilized are coupons, in-store displays, billboards, and commercials.
III.
1.

Situational Analysis
External Analysis
A. Aggregate Market Factors
1) Timberland is a company that manufacturers footwear and clothing with an outdoor lifestyle
appearance. They are well known for their casual and outdoor footwear collections. The Timberland
community takes pride in giving back to the community through volunteer organizations as well as
producing sustainable product lines. The industry that Timberland falls under is the fashion industry,
however, considering the broadness of the industry, in this analysis it will be broken down further into
the footwear industry. Aggregate market factors determine the attractiveness of a product category.

a.

In the footwear industry, in 2012 the outdoor footwear segment had the largest dollar sales
growth at 10% while only holding 11% of the market share for the entire footwear industry
(nps.com). The opportunity for growth in outdoor footwear is clearly available given the
statistics but also, because there is an increase in the trend of consumers buying sustainable
products. Consumers lifestyles are changing and they are seeking products that relate to
their values. The footwear industry is predicted to grow in value by 2018 at a worth of

$211.5 billion U.S. dollars. [2]


b. $20 billion U.S. dollars of consumer spending in the U.S. is done on footwear [3]. A total of
29,360 shoe stores are available to consumers [3]. These stores provide a variety of footwear
such as, dress, casual, outdoor, and athletic. With seasonal changes occurring in different
parts of the U.S. the product life cycle can vary. (Refer to Appendix A, Figure 1 to see a
break down.)
B. Industry Analysis
The fashion industry is a multibillion-dollar industry that serves a purpose to provide consumers with
apparel in a variety of styles. To be more specific in the industry a Porters Five Forces Analysis will be
done on the Footwear segment. This industry analysis will show the competitors, threats of new entrants,
suppliers, buyers, and threat of substitutes in this segment of the fashion industry. The objective of doing
five forces analysis is to examine how profitable and successful a company could be in a certain industry.
1) Threat of New Entrants
The barriers to entry in the footwear and apparel industry are, the initial investment, high exit costs,
and brand loyalty. The average initial investment to start an apparel line averages at $30, 834 [4].
This price goes into advertising, marketing, overhead costs, etc. Marketing is very important in this
industry because many customers have brand loyalty. They are comfortable with their current brands
so switching would be a factor that new entrants would have to think over before entering. While the
price to enter is not too high it is still a risk to put thirty grand on the line to enter into an industry that
is seeing a decline in profit margins [5]. The new entrant will also have to consider the exit costs is
things go bad. Depending on how much they have put into the company the exit costs could be
relatively high. The overall threat of new entrants is moderate-to-low.
2) Threat of Substitutes
The threat of substitutes for this industry is considered relatively high. Footwear is readily available
at many stores such as department stores like Macys or Sears. However, these department stores
carry the footwear brands that are being considered competitors. These substitutes are also more
convenient because they offer a variety of brands and product lines. Another example of a substitute
is the Sketchers brand. The price is cheaper and the look is very similar.
3) Bargaining Power of Suppliers
The bargaining power of suppliers is relatively low in this industry. This is due to the fact that many
footwear manufacturers outsource their production so the availability of suppliers is greater.
However, given that many companies have been called out over the years for the terrible work
conditions in their outsourcing factories, it is now important for footwear manufacturers to ensure the
safety of their factory workers. If the conditions are not up to standards they can be called out.
4) Bargaining Power of Buyers

The bargaining power of buyers in the footwear industry is moderate to high. This is because there
are many available substitutes and competitors in the market so consumers have a variety of options
to choose from. Switching costs are also low in this industry. Consumers can switch from one brand
to another with nearly no negative impact except to the brand not chosen. However, brand loyalty is
something that greatly impacts whether consumers have power or not. If a consumer is used to only
buying one brand of shoes and the price goes up, then it is likely they will pay the price difference.
Consumers also can do more research on the Internet before making a footwear purchase. There are
consumer reviews online and they also can see the options before making one decision.
5) Competitive Rivalry
The rivalry in this industry would be considered high. The concentration in the footwear industry is
low, meaning there are many firms competing for the market share.

Many manufacturers are

outsourcing their production making the labor costs is low and easily available for more companies to
do as well. However, the number of footwear manufacturers is predicted to decline from 919 to 882,
which would make the concentration increase and lower the rivalry in the industry [5]. The rivals in
this industry would be Timberland, Uggs, Clarks, and Fryes.
(Refer to Appendix B, Figure 1 to see photos of the product and competitors)
C. Environmental Analysis
Timberland has a growing market with their product line, Earthkeepers. This is a sustainable product that
is providing the company with an edge they need against competitors, however, this is one product among
the many they offer. Timberland must consider the environmental analysis such as, political, economic,
social, and technological factors.
1) Political/Regulatory
a. Many concerns about Carbon Dioxide emissions into the atmosphere through factories.
b. Many concerns about recycling waste and converting to sustainable materials.
c. Concern about fair and safe workplace condition in outsourcing production.
2) Economic
a. American stocks and bonds have rose in value, making investors and companies grow [6].
b. Decrease in the price of oil could lead for more road trips for camping, hiking, outdoor trips.
c. A rise in emerging global markets such as Brazil, Russia, and South Africa account for 50%
of the worlds GDP [7].
3) Social
a.

Increase in online shopping. All companies are expected to have an online presence for their

b.

target market.
Increase in Green and Smart products. Green products are sustainable and smart products

have the ability to track information and resources.


4) Technological
a. Innovating to Zero having buildings and products become carbon neutral [8].
b. The idea to make one, sell one will grow due to the Internet. Businesses will be able to sell to
the developing and developed markets [8].
A Product Attribute and Features Matrix is provided in Appendix C Figure 1 with information on the benefits, retail
price, material, and style-look for each boot.
2.

Competitive Situation
The competitors in the footwear industry are Timberland, Frye, Clarks, and Uggs. All four offer a variety of shoes,
boots, and apparel for men, women, and children. Timberland specializes in an outdoor apparel and footwear style.

The products from all four competitors fulfill similar product related needs, yet the brand name and look say a
different story.
A. Products and Strategies
1) Timberland
a) Product- Earthkeepers is a sustainable product line that Timberland offers. The sole of the
boot is made up of recycled rubber, 50% recycled PET, and 100% organic cotton laces [9].
b) Price- The price is offered at $180 U.S. dollars [9].
c) Promotion- Timberland promotes their responsibility that they take care of their
customers and environment. They offer free shipping on orders of $100 or more. They also
offer customers to sign up using their email to receive special offers and information on new
arrivals [9].
d) Placement- Timberlands headquarters are located in Stratham, New Hampshire. They
have their137 locations of their own stores in the U.S., Canada, and the U.K. They also sell
worldwide to retailers, department stores, and sports stores [9].
2) Frye
a) Product- The Tyler Lace Up is a laced boot that is equipped with soft leather outside and
lining the boot. They are of high quality and need to be taken care of to keep in shape [10].
b) Price- The price is offered at $318 U.S. dollars [10].
c) Promotion- Frye offers free shipping and returns. Customers can also sign up with their
email to receive offers [10].
d) Placement- Fryes headquarters are located in New York. They have four of their own
stores and sell their products to department stores such as Nordstrom [10].
3) Clarks
a) Product- Clarks offers a boot called the Rockie Top GoreTex. This product is waterproof
and comfortable and offers the option to remove the foot bed cushions while the sole still
provides a shock absorbent benefit [11].
b) Price- The price is offered at $170 U.S. dollars [11].
c) Promotion- Clarks offers free shipping and returns daily. They also offer an email sign
up list [11].
d) Placement- Clarks headquarters are located in Somerset, England. They sell worldwide
and also have a variety of their own store locations [11].
4) Uggs
a) Product- Huntley Canvas is a limited edition boot that Uggs offers for men. They have a
rubber outsole and wool sock cover. They are made of suede so up keeping of the boot if it is
worn in snow or rain is very important [12].
b) Price- The price is offered at $180 U.S. dollars [12].
c) Promotion- Uggs also offers free shipping and return everyday. As well as an email sign
up list to send information to consumers [12].
d) Placement- Uggs headquarters are located in Goleta, California. They sell worldwide to
over 130 countries [12].

Appendix C, Figure 2 that provides a competitive situation breakdown of each product.)


B. Financial Position
Timberland was founded in 1973 and has continued to grow financially and geographically. Its niche target
market is being targeted more and more due to the changes in social trends and the attractiveness to growing
businesses. Timberland has many investors who have gotten them to where they are today and as the
innovation is increasing in this industry it is important for Timberland to not fall behind and continue spending
part of their budget into research and development [13].
1) Potential Growth: Timberland has much potential growth through innovation and expansion.
The footwear industry will always be in demand, but the production and materials that go into the
product will change overtime. The global footwear industry is projected to grow throughout the
next five years. This is an opportunity for Timberland to determine where and how they can
sustain a competitive advantage over their competitors [13].
2) Competitor Comparison: Timberland competes with the companies Frye, Clarks, and Uggs. All
four have similar products and target similar niche markets. The Frye Company has prices that
are higher than the others with a majority of their products made from leather with a southwestern
style. Timberland consumers are seen as having an outdoor and adventurous lifestyle while
providing products that can uphold these adventures. Clarks are rather dressier but also provide
similar products. Uggs are known more for their comfort and warmth. Of all four Uggs seems to
be the target of most boycotts due to the wool material many of their boots and shoes are made
with. Timberland has a more innovative feel and also expresses how strongly they feel about
their Corporate Responsibility. For this niche target market that is important because much of the
market is concerned with the production of their goods and the effects the goods have after they
are no longer of use [13].
D.

Value Chain Analysis: Timberland focuses on ways to create their products with processes and materials
that cause less harm to the environment. Timberland excels in the ways they give back. Their service
commitment has proven highly valuable in developing strong, lasting relationships with business partners
and other brand stakeholders. They have a corporate CRS Program and have just celebrated their 1
million hour of global community service as a company. The other area that Timberland excels in is
reducing the impact on the environment with the different materials they are using to make their products.
Just a few examples are the SensorFlex technology, which provides enhanced comfort and stability on
any terrain [13]. They also use Green Rubber which is recycled material used in Timberland footwear
that is made with 42% recycled rubber sourced from post-industrial latex manufacturers [13]. Green
Rubber material is used in the outsoles of millions of shoes and boots each year. Cordura EcoMade fabric
another example of something they use, which is made from 100% of recycled PET and constructed
using high tenacity fiber technologies that results in a fabric that is four times stronger than typical cotton
without compromise to softness [13]. To go along with all the ways they are reducing their impact,
Timberland introduced a Nutrition Label on its footwear packaging, detailing the companys
environmental impact to make it easy for the consumers to see what they are buying [13]. (Refer to
Appendix D for a visual description of Timberlands Value Chain Analysis)

3. Customer Analysis
In regards to the product, the defined market segment is middle to upper class individuals seeking premium footwear.
The individuals placed within this market segment are both males and females between the ages of 18-35. From recently
collected data, the individuals that partook in the survey were students at Illinois State University. Therefore, the college
students average yearly income ranged from >$15,000-$30,000 per year. The students are categorized in the middle to
upper class segment because; their parents are the primary purchasers, meaning the product is commonly purchased as a
gift. The non-college students (i.e. parents) average yearly income ranged anywhere from $30,000-$75,000 per year. In
addition, the individuals are mainly concerned with price and style.
The following six steps were taken to gather the accurate data needed to formulate a Perceptual Map, which
consisted of the Target Audience and where Timberland currently stands:
A. Step One: In order to gather accurate and credible data, interviews were properly conducted with individuals
that fit the criteria required for the products target market. In addition, there were 10 individuals that were
interviewed, all being relevant candidates for the target market. The interview consisted of 5 males and 5
females, ranging from the ages of 18-35. Once the results were calculated, the market segment acknowledged
several attributes that are deemed important regarding premium footwear:
1. Manufacturer has good reputation
2. Price
3. Comfort
4. Style
5. Sustainability
Furthermore, the 10 individual interviews helped in defining the key products that strongly compete with the
Timberland Eathkeepers Rugged Original Leather Boot. After reviewing the data, Timberlands primary
competitors are: Uggs Boots, Frye boots, and Clark boots. The 3 products contain similar attributes that the
Timberland boots are also attributed.
B. Step Two: Once the appropriate information was collected from the one-on-one interviews, a survey was
formulated to acquire opinions and beliefs about general footwear, which was done by asking a screening
question. Once the screening question was properly answered, the other questions were formulated to acquire
appropriate information on the products main competitors, important qualities/ attributes, and basic
demographics. (For more in-depth information on the survey, it can be found in Appendix E)
C. Step Three: The survey was handed to 30 individuals within the target audience. With that, the 15 males and
15 females were given the opportunity to anonymously state their opinion on premium footwear. In addition,
the Timberland boots were compared and contrasted to Uggs boots, Frye boots, and Clarks boots. The targeted
consumers had an opportunity to rate each product on its reputation, price, comfort, style, and sustainability.
The individual surveys were calculated utilizing many different measures. Many of the questions were
based off of a -3 to +3 scale. For instance, if -3 was chosen by 1 of the 30 participants, that signifies that the
product fails to withhold that specific strength. In contrast, if a +3 was chosen, that signifies that the product
strongly possesses that specific strength. In addition, participants also had the opportunity to rate each attribute
amongst all competing products by assigning 100 points across 5 areas based on the individuals perception
and opinion. Once all of the information was collected and averaged, the statistics were then used to indicate
which of the 5 attributes is most important and vital.

D. Step Four: Once all of the surveys were calculated and tallied up for all competing products, Uggs boots rated
the highest among all competing products in comfort. The Timberland Earthkeepers rated the highest in price,
brand reputation, and sustainability among all other products. Furthermore, Frye boots had the highest rating in
the style attribute. Lastly, Clarks boots tied with the Earthkeepers in terms of sustainability. After sourcing that
information, the participants were later required to identify the desired attributes among the 5. In summation,
the 2 most important attributes were price and style. The results of the survey can be seen below: *Products
attributes in bolded red text are the winners
Premium Footwear
Reputation
Uggs Boots
1.70
Earthkeeper Boots
2.10
Frye Boots
2.03
Clarks Boots
2.01
All competitor products, including the

Price
Comfort
Style
1.57
2.2
2.00
2.98
1.3
1.47
1.05
-2
3.0
1.15
1
2.65
Timberland boots, were accurately placed on

Sustainability
-1
0
-2
0
a perceptual map. This

perceptual map in particular compared the two most important attributes, which were price and style. In
addition, there are other perceptual maps that compare the remainder of the attributes. (The other perceptual
maps can be found on Appendix F). Below is the 4 competing products position in regards to the 2 desired
attributes:

E. Step Five: After reviewing the competing brands position, it appears that only 2 of the 4 brands strongly
possess at least one quality that the customer deems important. For instance, the Timberland Earthkeepers
dominated all brands in terms of a good price. The Frye boots strongly possessed the style attribute, but failed
in the price category. Next, both Uggs and Clarks boots were in a similar position, but lacked in both of the
important attribute fields. In regards to the Timberland Earthkeepers, it is vital that they withhold a position
where they are strong in both style and price to form a competitive advantage over their competitors.
Timberland can overcome their competitors by:
1. Keeping their perceived price where it is currently at, but change their perceived style where
consumers find it more desirable. Moving the product to the right horizontally will do this. (Refer to
Appendix F, Figure 2.)

F. Step Six: For Timberland to successfully reposition itself, they will need to formulate a marketing strategy that
will generate awareness on their new or modified boot style. For the marketing strategy to successfully achieve
this repositioning, it will need to focus on promoting the Earthkeepers new or modified style and how it is
unique among their many competitors. This marketing effort will not only positively warp the consumers
current perception of the product, it will also enable consumers to look at the other products Timberland
manufactures and sells, which will generate brand loyalty and eventually lead to a temporary or sustainable
advantage.
IV. Opportunity and Issue Analysis (SWOT)
A SWOT analysis was conducted to determine the current and possible future position for the Timberland Company for
the clothing and boot industry. There will be two SWOT analyses: one for the company, and one for the Earthkeepers
Product. Timberland was found to have the following Strengths, Weaknesses, Opportunities and Threats: All SWOT
information found on Datamonitor SWOT analysis for The Timberland Company.
A. Strengths:
1) Multiple retail formats. The company sells its products through retailers and franchisees. The company
also sells their clothing on different e-commerce sites. Selling in the US and UK through retailers and ecommerce sites is a major strength for the company [14].
2) Increasing margins. Increasing margins show that the company is growing sales wise and revenue wise.
Increasing margins increase shareholders confidence and the companys market position will also
improve [14].
3) Sustainability measures improve the companys image. Reducing their carbon footprint by cutting back
on resources, recycling, and reusing has been a major focus for Timberland. They have plants that use
solar panels that create roughly 60% of their energy needs.
B. Weaknesses:
1) Product recall may affect Timberlands image. Recalling footwear can leave a lasting mark on the
marketplace. Having to consistently recall products can show a lack of following protocol or complying
with safety standards [14].
2) Dependence on independent manufacturers increases risks. Most of the parts of their products are
outsourced. The company itself, in 2009, on produced roughly 10% of their products. With a limited
number of partners, there is a high risk of falling behind on orders and put Timberland in financial risk
[14].
C. Opportunities:
1) Expansion into mature and emerging markets. The footwear industry is a massive and growing market.
There is growth in the US markets and the UK markets. Even with a small proportion of this growing
market is captured; it will enhance Timberlands market position [14].
2) Online retail sales in the US are expected to grow. Online sales are continually on the rise across the
globe and Timberland hopes to capture some of those online sales [14].
D. Threats:

10

1) Intense competition and threat of new entrants. Since the market place has such room to grow, there is
constantly a threat of new competitors or the threat of current competition can change their prices to push
Timberland out of the market [14].
2) Imported leather footwear from China and Vietnam. Timberland manufactures (10%) and sources (90%)
a majority of its products outside the US form countries like China, India, Vietnam, and Malaysia.
Accordingly, the company is subjected to the risks of doing business abroad, including foreign currency
exchange rate risks, import restrictions, anti-dumping investigations, political or labor disturbances,
expropriation and acts of war [14].
SWOT Analysis for Earthkeepers
A. Strengths:
1. Timberland is a well-established footwear company with a strong product line and strong following.
With established sales in multiple countries and marketplaces makes it easy to sell the new products
[15].
2. Already a very green company and has been using recycled and reusing products for years.
B. Weaknesses:
1. High prices for products will deter new customers from purchasing the new eco-friendly product
2. Dependence on independent manufacturers increases risks. Most of the parts of their products are
outsourced. The company itself, in 2009, on produced roughly 10% of their products. With a limited
number of partners, there is a high risk of falling behind on orders and put Timberland in financial risk
[15]
C. Opportunities:
1. New markets emerging. With customers trying to be more eco-friendly and leave less of a carbon
footprint, customers will turn to a company who has been reducing their footprint and reusing the
2.

proper material to make a better product.


Online retail sales in the US are expected to grow. Online sales are continually on the rise across the

globe and Timberland hopes to capture some of those online sales [15].
D. Threats:
1. Intense competition and threat of new entrants. Since the market place has such room to grow, there is
constantly a threat of new competitors or the threat of current competition can change their prices to
2.

push Timberland out of the market [15].


Losing current customer base by appealing too much to new customers. Forgetting about their loyal
following.

V. Goals and Objectives


1.

Marketing: Timberland is a well-established boot manufacturer, but it is still important for their
Earthkeepers campaign to be seen and different than their regular ads. Their competition is also well
established, but they do not have the same strategy as Timberland, which gives Timberland an edge.
Timberlands strategy is to reduce their carbon footprint and create a more eco-friendly boot. It will be
important for Timberland to hold on to their current customers while still expanding and gain new
customers for their product line.

2.

Financial: The goals for Timberland are to increase profits by increasing sales. As before mentioned, in
2012 the outdoor footwear segment had the largest dollar sales growth at 10% while only holding 11% of

11

the market share for the entire footwear industry [1]. Also, the footwear industry is predicted to grow in
value by 2018 at a worth of $211.5 billion U.S. dollars [2]. If Timberland can become the leader of this
growth; they will see an increase is sales, which will correspond with an increase of profits.
VI. Marketing Strategies
A. Primary Target Market: For our primary target audience Timberland Earth Keepers should be advertised
as a great durable outdoor boot that is eco-minded and easy on the environment.
1. Gender: Timberland Earth Keepers should be target towards both male and females. While they
should be targeting both genders, males are the more dominant gender for the primary audience. From
our survey results 12 out of 15 were males who have purchased timberlands or plan on buying them in
the future. The focus is for people who enjoy spending time outdoors, which can easily be both males
2.

and females.
Age: Our target market is focusing on those of ages 18 to 35 years old. Once young adults start
growing up and maturing a little more they start to become more mindful and more educated on the
environment and the issues around it. Generally, individuals in their twenties and up are
knowledgeable about the negative impacts humans can have on the environment and some become
very involved in green efforts and have value that tie them to be more eco-minded. This is also and
age group at a time in individuals lives where they are still young and very active, where after the age

3.

of 35 you may slow down on outdoor activates due to many things such as work, family, health, etc.
Income: The target income for Timberlands would be individuals of the upper-middle class to the
upper class. Timberland Earth Keepers are a moderately priced shoe in terms of name brand shoes.
Different Timberland shoes can range from around $100 - $200. Although, when compared to nonname brand shoes, these are quite a bit more expensive then something you could get from a Wal-

4.

Mart or Target.
Lifestyles: The lifestyle of our target market is people who are active and people who are ecominded. We are focused on people who are outdoor enthusiasts and may enjoy activates like hiking,
traveling, outdoor labor, etc. These are people who not only love being outdoors but also care about
their environment due to their love of nature. These people are people who care about eco friendliness

in a company and who do their part in reducing their impact on the earth.
B. Secondary Target Market: For Timberland Earth Keepers secondary target market they should focus on
people who are looking for a great durable shoe that is also stylish and fashionable.
1. Gender: Timberland should be targeting both male and females but this time the focus is on the
females who are the more dominant gender. According to our survey results 3 out of 15 females said
2.

they care about style when buying shoes and 10 males noted that they cared about style.
Age: The age range being focused on is people of 18-35 years old. Young adults generally care about
their style due to things like social pressure and influences. Those around the ages of 18 and up may
develop a more mature style and have the resources to afford Timberlands shoes. People in their
twenties and thirties start to develop a style as an identity and care about their appearance as part of

3.

their identity.
Income: The income levels being focused on for the secondary audience is people of the low-middle
class to upper class. When individuals buy based on style or name brand, they are generally willing to

12

pay a little more. Whether they believe the shoe is expensive or not, if they find value in that name
4.

brand consumer are willing to find the money to pay for it.
Lifestyles: The lifestyle of our target market here are people who value a good brand and want
something they believe looks good and feels good. The description of a pair of Mens Earthkeepers
Original Leather Boots on the Timberland website was as follows, Earth Keepers havent sacrificed
quality or rugged good looks to make these boots eco-conscious. Their classic style and durable
performance speak for themselves over seasons of wear [13]. This states that Timberland knows their
customers care about the look and style of the products that they are buying as well as the product
being eco-friendly. The people in this market are focused on things like brand names, what other think
of their appearance, social influences of current trends, etc.

C. Marketing Mix:
1. Product/Product Line: Packaging The Timberland Company has had a commitment to sustainability
for the past 40 years and believes that as a business they can create a positive impact on the world. This
belief follows into everything that Timberland does and produces including their packaging. Since 2007
the Timberland Company have been making their footwear boxes from at least 80% post consumer
recycled packaging cardboard and 100% recycled materials The boxes use no chemical glues and only
soy-based inks to print labels. There is a message inside the box that reads, what kind of footprint will
you leave?, and then a call to action for them after the purchase [16]. Each Outdoor Performance shoe
comes in a reusable take-in, take-out biodegradable waste bag. Purchasers of the shoes also have the
option to reuse and fill the footwear boxes with donations and ship them to non-profit organizations.
Currently, The Timberland Companys biggest competitors are Uggs and Clark.

Clarks packaging

consists of 95% recycled material while Uggs uses 100% recycled materials as well for their boxes. As far
as Timberland they have made big steps to reduce their carbon footprint and create packaging with as little
environmental impact as possible. Although for the most part Timberland should keep their packaging
strategy the same, there are a couple suggestions to make:
1. Find a way to cut materials used in production for the boxes
2. Switch to biodegradable bags completely instead of boxes
2. Pricing Strategy: For Timblerland Earthkeepers the company should use both a competition pricing
strategy and a cost based pricing strategy. A competition pricing strategy is when a company sets a price
in comparison with competitors, they can either price it above, below, or the same. Cost based pricing is
when the firm takes into account the cost of production and distribution and then decide on a mark up that
reaches their target profit.
Currently Timberland Earthkeepers are priced between $140 and $155, this is right between their two
biggest competitors prices [9]. Clarks boots range in the $60-$80 price while Ugg boots range in the
$170-$210 area. This puts Timberland Earthkeepers in the center, which is right where they should be
when taking into consideration the boot, target audience, and quality. In order to maintain a competitive
advantage as well and appeal in the boot they need to price the boot just right. Earthkeepers are new,
innovative, practical, and high quality. The materials used to make the boots are more costly than

13

materials used to make less eco-friendly boots, which is understandable when there is a reflection in the
selling price of the boots.
3.

Promotion: The budget for all promotional tools was determined by examining the companys selling
expenses. The budget for promotions was $25,682,000, with around 55% towards advertising, 25%
towards Promotions and 10% towards the Contingency Plan. Appendix H, Figure 1 depicts the Pro-Forma
Income Statement for The Timberland Company. Appendix H, Figure 2 and Figure 3 depict the
Advertising and Promotional budgets, respectively.
a. Sales Promotions/Display: In order to increase sales and brand awareness it is suggested that the
following changes be made to the current promotion and display strategies:
i. Coupons -- Since the Earthkeeper line is still fairly new and given the cost of the boots may be
seen as slightly pricey due to the brand name/quality boot, Timberland should offer a promotional
coupon. This coupon should be given when consumers go to the website and enter in their email
information. An email will then be sent to the consumers with the coupon and below it a
recommended boot and its nutrition label. The coupon in the email will offer $15 off the
purchase of their first pair of Timberland Earthkeepers and an addition $25 off on any second
purchase of Earthkeepers. This will allow timberland to gain access to some consumer information
while getting the consumers more interested in trying a pair of boots for a discounted price. The
estimated cost for the coupons are $15 x 20,000 people + $25 x 2500 people = 362,500
ii. In-Store Display As seen in Appendix I, Figures 1-3, Timberland currently displays their shoes
in very unique and appealing ways throughout their stores. The one thing that the displays are lacking
is a sign that draw attention to which shoes are which. Because Earthkeepers are a new product of
Timberland it would be a great idea for Timberland to draw attention to the new boots. Otherwise
potential consumers may not even realize that these boots are made differently and could influence
their purchase decision if a display is made available to demonstrate this. A larger sign displaying the
Earthkeepers name along with a new product mention and some information about how the shoes are
made and benefits associated with them is what will be on the displays. New displays will be made
monthly in order to have new signs for consumers to see every month for a year in order to maintain a
new fresh image for the boots. Signs 12x12 cost approximately $1.68 per display. In order to have
enough signs for stores selling Timberland Earthkeepers the final costs are as shown below:
*Replaced Monthly (12 Times a Year): $1.68 per display
$1.68 x 67 stores * 12 changes per year = $16,128
b. Sales Force: It will be very important for any sales force of Timberland Earthkeepers to be educated in
the product and also persistent in promoting the sale of the product as well. It is very likely that
consumers coming into a store selling Timberland Earthkeepers are unaware of the product and the
benefits of it. Timberland should ensure that any retailer of their boot has made sure the staff is educated
in the boot so they are able to relay the information to potential customers. They should also be
consistently promoting the boot and encouraging customers to check it out when they come into the store.
If a pervious purchaser of a Timberland boot comes in it is important to maintain a positive relationship

14

with them and encourage them to keep purchasing from Timberland boots. This can really improve both
sales and awareness of the boot. Sales force should be doing all of these things everyday year-round.
c. Advertising: In order to gain awareness and increase sales of Timberland Earthkeepers it will be
imperative for the company to have an integrated marketing communications campaign that embodies all
aspects of the companys image and message. In order to do that, all parts of the campaign should be
integrated in the colors, pictures, logo, message, and text type included in the ads. The message that
Timberland will be relaying is that their product is high quality, environmentally friendly and practical.
The following media vehicles have been chosen to reach the primary and target markets of Timberland
Earthkeepers:
i. Billboards Billboard advertisements should be placed in locations with high concentrations of
authorized retailers and factory outlets that sell Timberland boots. There are a high density of store in
places Denver where billboards would be an ideal location because of the city aspect and the high
amount of forest and national parks throughout Colorado [13]. Billboards are a great way to reach
commuters and travelers and have a good reach potential when in the right locations. The campaign
will include 75 billboards every other month in high-density area where retail and outlet stores are
also nearby for a total of 12 months [17]. The advertising costs for the billboards will be: 75
billboards per month x 6 months x $1,200 per billboard= $540,000.
ii. Commercial - Timberland does not currently have a commercial to advertise their Earthkeepers
boot. Therefore we created an informative commercial that goes along with the guidelines of the
campaign. The commercial begins with explaining the problems with not using materials that are
environmentally friendly, then shows the boot itself and discusses the benefits of have an Earthkeeper
boot. The commercial was made to appeal to our target and primary audiences, it is entertaining but
also informative which was our goal in creating it. Because we made the commercial the costs of
creating the video was zero, the only costs associated with the commercial are the airing costs. The
commercial will be aired three months of the year, August, September, and October. Those months
are chosen because fall is a popular time for consumers to be outside and also the time when they are
buying boots for the winter months. The commercial will air on popular adult family-friendly
channels because Timberland is a family-oriented company and our target audience will be watching
those channels. The cost of airing a one-minute ad is $100,000. Therefore to air the ad for three
months, twice a day, on twice a week, on two different stations the total costs come to $9,600,000.
This was a big part of the advertising budget but it is also one of the best ways to reach our target
market and gain awareness as well as inform consumers about the product. The link for the
commercial is listed below:
https://www.youtube.com/watch?v=K7QRpBZjk4k
4. Place/Distribution
The Timberland Company is currently a global leader in the design, engineering and marketing of
premium-quality footwear. The companys footwear is sold in leading department and specialty stores as
well as Timberland retail stores throughout North America, Europe, Asia, Latin America, South Africa and

15

the Middle East [18]. Earthkeepers are sold in department stores such as Macys, Nordstrom, and Lord &
Taylor.

They are also sold at popular sporting good stores such as Dicks Sporting Goods.

The

Timberland Companys biggest competitors, Uggs and Clarks boots are sold at department stores as well
but only Uggs distribution can compete with Timberlands. They are sold at all the same stores as
Timberland; therefore if Timberland boots allowed their boots to be distributed by one more major retailer
it could really put them ahead of the competition.
One retailer that neither company has shoes sold at is Sports Authority. This is another large sporting
good store that could allow the availability and sales of the boots to grow even larger. Timberland
Earthkeepers are a high quality boot so Timberland should make sure their distributors and retailers are
associated with higher quality products so they can maintain their image. That is why Sports Authority
would be a great company for Timberland to allow to sell their boots.
D. Contingency Plan:
The marketing plan for Timberland will be routinely reviewed and evaluated for the first ten months after
the plans implementation. If the current plan doesnt go as followed, Timberland should focus on
switching to a new advertising method. Therefore, the contingency plan will take the following actions in
hope to avoid future problems. The following actions are as followed:
1.

Focus on other media outlets: Focusing on other media outlets will only come into play if the
current media practices are lacking in generating the desired brand awareness for the Timberland
Earthkeepers. In addition, the other media outlet alternative would be to target the young

2.

demographic by converting their traditional media platform into a more digital platform.
Intensify sustainability aspect of advertising: Since more and more individuals are becoming
environmentally conscious, Timberland should differentiate their product from the following
competitors by focusing primarily on the sustainability of the Earthkeepers product. Therefore,
Timberland should increase education about company practices that make them ecofriendly.

For this marketing plan to successfully achieve all required objectives, proper steps and measures will be
appropriately dealt. To reinstate what was previously mentioned earlier, the objective of this particular
campaign is to generate awareness about the Timberland Earthkeepers footwear. Although Timberland
faces many competitors, it is clear they have an upper hand being that they are a sustainably operated
company. Furthermore, it is vital that the Timberland Earthkeepers style and material changes as the latest
trends do.

16

VII.

References

[1]

"Footwear Industry Statistics." Statistic Brain RSS. N.p., n.d. Web. 15 Apr. 2015.

[2]

Gentry, Matthew. "Displays, Sales, and In-Store Search in Retail Markets." Matthew Gentry. 1 Sept. 2012.
Web. 22 Apr. 2015."

[3]

"Store Locator." Store Locator. Web. 22 Apr. 2015.

[4]

"The Cost of Starting Up a Retail Shop." Inc.com. N.p., n.d. Web. 15 Apr. 2015.

[5]

"Shoe & Footwear Manufacturing in the US: Market Research Report." Shoe & Footwear
the US Market Research. N.p., n.d. Web. 15 Apr. 2015.

[6]

Irwin, Neil. "Five Surprising Economic Trends in 2014, and What They Mean for 2015." The New York Times.
The New York Times, 01 Jan. 2015. Web. 15 Apr. 2015.

[7]

"6 Big-picture Economic Trends That Could Affect Your Wallet." 6 Big-picture Economic Trends That Could
Affect Your Wallet. N.p., 04 Sept. 2014. Web. 15 Apr. 2015.

[8]

"The 10 Social And Tech Trends That Could Shape The Next Decade." Forbes. Forbes Magazine, n.d. Web. 15
Apr. 2015."

[9]

Men's Earthkeepers Original Leather 6-Inch Boots | Shop at Timberland. (n.d.). Retrieved April 16, 2015.

[10]

TylerLaceUpMen_Boots_CasualsTheFryeCompany.(n.d.).RetrievedApril15,2015.

[11]

RockieTopGoreTexBlackLeather.(n.d.).RetrievedApril15,2015.

[12]

UGGOfficial|Men'sHuntleyCanvasFootwear|UGGAustralia.com.(n.d.).RetrievedApril15,2015.

[13]

Timberland Community | Earthkeepers Collection. (n.d.). Retrieved April 16, 2015.

[14]

Wagner, Nancy. Small Business. Demand Media. Web. 22 Apr. 2015.

[15]

SWOT Analysis (2010): 1-9. Business Source Complete. Web. 5 Apr. 2015.

[16]

GreenBizz, S. Timberland Introduces New Packaging Initiative GreenBizz, 26 Jan. 2006. Web. 15 Apr. 2015

[17]

Lamar Advertising Company." Billboards, Digital Displays, Transit Advertising Locations & Prices. Web. 22
Apr. 2015.

Manufacturing in

[18]
Research and Markets: The Timberland Company - Strategy and SWOT Report." Research and Markets: The
Timberland Company. Business Wire, 6 Mar. 2012. Web. 22 Apr. 2015.

17

[19]

Youth Stewards. (n.d.). Household Waste - Thats Garbage! Retrieved April 15, 2015, "SWOT Analysis."
Timberland Company.

[20]

Time Lapse Photography: Apple Rotting. (2011, September 29). Retrieved April 15, 2015.

VIII. Appendices
APPENDIX A: Aggregate Market Factors
Figure 1:

Percentage of Market Share per Category

19%
Dress

Casual

19%
Outdoor

12%

49%

Source: IBIS World

18

Athletic

APPENDIX B: Photos of Product and Competitors


Figure 1:

Product Name
Clark- Rockie Top GoreTex

Picture

Frye- The Tyler Lace Up

Timberland- Earthkeepers

Ugg- Huntley Canvas

19

APPENDIX C: Competitive Analysis


Figure 1: Product Attribute and Feature Matrix

Feature

Timberland

Clarks

Frye

Ugg

Benefits

Eco-friendly
Four season wearable

Waterproof
Outdoor

N/A

Seam Sealed to protect


against elements

Retail Price

$180

$170

$370

$180

Material

Leather, Cotton, and


Rubber

Leather, Rubber, and


Textile

Leather

Suede and Wool

Style-look

Rugged

Rugged, casual

Antique Look

Urban Warrior

Sources: http://www.timberland.com/
www.uggaustrailia.com
www.clarks.com
www.thefryecompany.com
Figure 2: Competitive Situation Table

Company
Timberland

Product
Earthkeepers is a
sustainable
product line that
Timberland
offers. The sole
of the boot is
made up of
recycled rubber,
50% recycled
PET, and 100%
organic cotton
laces.

Price
The price is
offered at
$180 U.S.
dollars.

20

Promotion
Timberland
promotes
their
responsibilit
y that they
take care of
their
customers
and
environment.
They offer
free shipping
on orders of
$100 or
more. They
also offer
customers to

Placement
Timberlands
headquarters
are located
in Stratham,
New
Hampshire.
They have
their137
locations of
their own
stores in the
U.S.,
Canada, and
the U.K.
They also
sell
worldwide to

sign up using
their email to
receive
special offers
and
information
on new
arrivals.

Frye

The Tyler Lace


Up is a laced
boot that is
equipped with
soft leather
outside and
lining the boot.
They are of high
quality and need
to be taken care
of to keep in
shape.

The price is
offered at
$318 U.S.
dollars.

Clarks

Clark offers a
boot called the
Rockie Top
GoreTex. This
product is
waterproof and
comfortable and
offers the option
to remove the
foot bed cushions
while the sole
still provides a
shock absorbent
benefit.

The price is
offered at
$170 U.S.
dollars.

Uggs
Huntley Canvas
is a limited
edition boot that
Ugg offers for
men. They have a

The price is
offered at
$180 U.S.
dollars.

21

retailers,
department
stores, and
sports stores.

Frye offers
free shipping
and returns.
Customers
can also sign
up with their
email to
receive
offers.

Fryes
headquarters
are located
in New York.
They have
four of their
own stores
and sell their
products to
department
stores such
as
Nordstroms.
Clarks
Clarks
offers free
headquarters
shipping and
are located
returns daily. in Somerset,
They also
England.
offer an
They sell
email sign up
worldwide
list.
and also
have a
variety of
their own
store
locations.
Ugg also
offers free
shipping and
return
everyday. As
well as an
email sign up

Uggs
headquarters
are located
in Goleta,
California.
They sell
worldwide to

rubber outsole
and wool sock
cover. They are
are made of
suede so up
keeping of the
boot if it is worn
in snow or rain is
very important.

list to send
information
to
consumers.

22

over 130
countries.

APPENDIX D: Value Chain Analysis


Value Chain Analysis

Technology Development Green Rubber, SensorFlex technology providing


enhanced comfort and stability on any terrain, Cordura EcoMade
Procurement partnership with tire manufacturer Omni United to create tires
that are the first tires purposely designed to be recycled into footwear outsoles
Inbound
Logistics
98% of
Timberlands
footwear
leather volume
was sourced
from a silveror gold-rated
tannery

Operations
Timberland
footwear
incorporate
s recycled,
organic or
renewable
materials.

Outbound
Logistics
Sold worldwide
through
Timberlands
own retail
locations and
web site, as
well as
independent
retailers, bettergrade
department
stores, and
athletic
specialty stores.

23

Marketing &
Sales
-Industry first
Nutrition
Label
chronicling
the
companys
environmenta
l impact.
- Best Then.
Better Now.
Ad campaign

Service
- Spend
generous
amounts of
time giving
back to
communities
Commitment
to a greener
climate
-Recycle old
timberlands
when
dropped off
or shipped to
store

Margin

Firm Infrastructure Timberlands service commitment has proven highly


valuable in developing strong, lasting relationships with business partners and
other brand stakeholders, Timberlands commitment to an environmentallysustainable design philosophy, Corporate CRS program
Human Resource Management Through the Path of Service, Committed to
being an equal opportunity organization, supplier sustainability team,
empowering employees through financial literacy

APPENDIX E: Survey

Footwear Survey
Hello, my name is [_____]. I am an ISU student working on a Strategic Marketing
Management class project. The intent of this survey is to gather data to ultimately help
understand consumer preferences in regards to footwear.
The responses will be completely anonymous, which means you do not need to
provide any personal information.
This interview includes just a few questions and will take about 5 minutes to
complete. Do you have a few minutes to spare? I would greatly appreciate your
participation.
Screeners:
Do you wear boots?
Please check the brands you are familiar with.
Ugg Boots

Clark Boots

24

Frye Boots

Timberland Boots

Price
1.When you think of Frye Boots, how would you rate price?
-3
-2
-1
Not very Good

3
Very Good

Do not Know

2. When you think of Timberland Boots, how would you rate price?

25

-3
-2
-1
Not Very Good

2
3
Very Good

Do not Know

3. When you think of Ugg Boots, how would you rate price?
-3
-2
-1
Not Very Good

2
3
Very Good

Do not Know

4. When you think of Clark Boots, how would you rate price?
-3
-2
-1
Not Very Good

2
3
Very Good

Do not Know

Comfort
5. When you think of Frye Boots, how would you rate the comfort?
-3
-2
-1
0
Not Very Comfortable

3
Do not Know
Very Comfortable

6. When you think of Timberland Boots, how would you rate the comfort?
-3
-2
-1
0
Not Very Comfortable

3
Do not Know
Very Comfortable

7. When you think of Ugg Boots, how would you rate the comfort?
-3
-2
-1
0
Not Very Comfortable

3
Do not Know
Very Comfortable

8. When you think of Clark Boots, how would you rate the comfort?
-3
-2
-1
0
Not Very Comfortable

3
Do not Know
Very Comfortable

Style
9. When you think of Frye Boots, how would you rate the style?
-3
-2
-1
Not Very Stylish

3
Do not Know
Very Stylish

10. When you think of Timberland Boots, how would you rate the style?

26

-3
-2
-1
Not Very Stylish

3
Do not Know
Very Stylish

11. When you think of Ugg Boots, how would you rate the style?
-3
-2
-1
Not Very Stylish

3
Do not Know
Very Stylish

12. When you think of Clark Boots, how would you rate the style?
-3
-2
-1
Not Very Stylish

3
Do not Know
Very Stylish

Sustainability - Sustainable products are those products that provide environmental, social
and economic benefits while protecting public health and environment over their whole life
cycle, from the extraction of raw materials until the final disposal.
13. When you think of Frye Boots, how would you rate the sustainability?
-3
-2
-1
0
Not Very Sustainable

3
Do not Know
Very Sustainable

14. When you think of Timberland Boots, how would you rate the sustainability?
-3
-2
-1
0
Not Very Sustainable

3
Do not Know
Very Sustainable

15. When you think of Ugg Boots, how would you rate the sustainability?
-3
-2
-1
0
Not Very Sustainable

3
Do not Know
Very Sustainable

16. When you think of Clark Boots, how would you rate the sustainability?
-3
-2
-1
0
Not Very Sustainable

3
Do not Know
Very Sustainable

Brand Image
17. When you think of Frye Boots, how would you rate their brand image?
-3
-2
-1
Negative Brand Image

3
Do not Know
Positive Brand Image

27

18. When you think of Timberland Boots, how would you rate their brand image?
-3
-2
-1
Negative Brand Image

3
Do not Know
Positive Brand Image

19. When you think of Ugg Boots, how would you rate their brand image?
-3
-2
-1
Negative Brand Image

3
Do not Know
Positive Brand Image

20. When you think of Clark Boots, how would you their brand image?
-3
-2
-1
Negative Brand Image

3
Do not Know
Positive Brand Image

21. Please assign 100 points across the following 5 areas based on their importance when you
purchase new boots. The total of all answers will equal 100 points. For example, if each has equal
importance, each would receive 20 points.
____ Brand Image
____ Price
____ Comfort
____ Style
____ Sustainability

22. What is your age group?


14-19 years old
20-29 years old
30-39 years old
40-49 years old
50 years old & Above
23. Gender?
Female
Male
I choose to not respond
24. What is your yearly income?
Under $15,000
$15,000 - $30,000

28

$31,000 - $45,000
$46,000 - $60,000
$61,000 - $ $75,000
$76,000 - $90,000
$91,000 & Above
25. Do you buy boots online or in-store or shop both?
Online
In-Store
Both

26. If you do shop online for boots, do you use any product attributes to narrow field? If so, please
check all that apply.
Best Sellers
Price
Brand
Style
I do not apply filters
I do not shop online
27. Please, provide a brief list of stores you consider when buying boots.
Thank you for taking the time to complete our survey in the most accurate way possible.

29

APPENDIX F: Perceptual Map comparing other Attributes


Perceptual Map Comparing Reputation & Comfort

LEGEND
X

Frye Boots

-2

Clarks Boots

.867

Earthkeepers
Ugg Boots

1.3
2.2

2
2
2.1
.89

30

APPENDIX G: Repositioning Maps


Figure 1: Repositioning by increasing Comfort

LEGEND

Frye Boots

-2

Clarks Boots

.867

Earthkeepers
Ugg Boots

1.3
2.2

2
2
2.1
.89

31

Figure 2: Repositioning by increasing Style

LEGEND

Frye Boots
Clarks Boots
Earthkeepers
Ugg Boots

1
2

1.2
1.5

32

APPENDIX H: Financial Strategy


Figure 1: Pro Forma Income Statement
Sales
Less: Cost of Goods Sold
Gross Margin
Less: Selling Expense
Less: General, Administrative Expense
Operating Income
Less: Income Tax
Net Income

$38,387,000
- 2,066,000
$36,321,000
- 25,682,000
116,000
$10,523,000
- 5,850,000
$4,673,000

Price Markups
1.

Retail Price: $180 per pair

2.

Retailers Price: $156.52 per pair = $180/1.15(15% retailer markup)

3.

Distributors Price: $142.29 per pair = $156.52 /1.10 (10% Distributor markup)

4.

Cost to Manufacture: $118.58 per pair = $142.29/1.20(20% manufacturer markup)

Timberland Financial Information: The Timberland Company does not disclose their financial information for their
advertising budget. Therefore using the Income Statement and examining competitors as well as the footwear industry
determined our budget.
1.

Selling, General & Administrative Expenses: They spend 7% of sales on selling, general, and
administrative expenses.

2.

Market Sales: The Footwear Industry brings in $48 billion annually

3.

Market Share: 266,667 units = 2.9% market share out the 25,893,365.7 shoes sold/year. ($100/unit
avg.)

4.

Sales: $38,387,000 = 213,261 units * $180/pair of boots

5.

Cost of Goods Sold: $25,288,489.38 = 213,261 units * $118.58 (Manufacturers Cost)

6.

Percentage of Selling Expense: 13.2% = [2/3 * Selling Expense (6.6%) * 2]

7.

Selling Expenses: $5,067,084 = $38,387,000 * 13.2%

8.

Percentage of General, Administrative Expense: 3.3% = 1/3 * Selling Expense (6.6%)

9.

General, Administrative Expense: $1,266,771 = $38,387,000 * 3.3%

10. Income Taxes: 44% of Operating Income

33

Figure 2: Advertising Plan & Budget

Advertising
Type

Specific
Vehicle

Frequency

Space

Total Cost

Commercial

Television

3 months
during fall
season 2 a
day/2 x
week/on 2
family
oriented
stations

1-minute ad

$9,600,000
($100,000 per
national ad)
67% of Total
Budget

(air
nationally)
Billboards

75 Billboards
in major cities

6 Months
(every other
month)

Full Billboard

$540,000

(12 X 25)

3.8% of Total
Budget

Total Cost

$10,140,000
72% of total
budget

Advertising Budget = 55% of Selling Expenses


= 55% ($25,682,000)
= $14,125,100

34

Figure 3: Promotional Plan and Budget


Promotion Type Outlet

Frequency

In-Store
Displays

Replace with $1.68


new
design display
monthly

Footwear
Stores

Cost To Design Cost To execute


and Produce
per $16,128 (800
displays
annually)
.25% of Total
Budget

Coupons

E-mail

If
consumer N/A
signs up for emails

Total
Promotion Cost

$362,500
5.6% of Total
Budget
$378,628
5.9% of Total
Budget

Promotional Budget = 25% of Selling Expenses


=25% ($25,682,000)
=$6,420,500

35

Appendix I: Timberland Retail Displays


Figure 1: All In-Store Displays are from Timberland Stores

Figure 2:

Figure 3:

36

Appendix J: Promotional Implementation Timeline


Months
Used:

Jan. Feb. Mar. Apr. May June July Aug


.

Sep. Oct. Nov. Dec.

Advertising:
Commercial
Billboard

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Promotion:
In-Store
Displays
Coupons
Sales Force
Key:
: Not used that month
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: Being used that month

Appendix K: Script and Storyboard


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Figure 1: Video Script


30 seconds of decomposing apple
Facts about plastic and rubber
DID YOU KNOW.
Plastic water bottles 450 years to decompose.
And it takes a Rubber boot sole-50-80 years to decompose
But there is is one company
who is changing the way they make their products
5 second black screen. Have you figured it out yet?
(boot kicks out bottle and non decomposable boot)
25 seconds explaining the benefits of and facts about the boots. Over an image of the boots
Facts:
Use environmentally conscious materials made by eco-conscious companies
Uses 100% recycled PET linings (what plastic bottles are made of)
42% recycled rubber soles minimize landfill waste
organic cotton (77% recycled)
organic leathers
silver rated status for industry leading water, waste, and energy management from the Leather
Working Group
So, what are you waiting for?
Still image of product logo

Figure 2: Video Storyboard


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