laurendearman.weebly.com€¦ · web viewmarketing plan by: caitlin o’connor. lauren dearman....

Marketing Plan By:Caitlin O’Connor

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 2

II. Executive Summary 3

III. Situational Analysis

1. External Analysis 3

2. Competitive Situation 6

3. Customer Analysis 8

IV. Opportunity & Issue Analysis (SWOT) 10

V. Goals & Objectives 12

VI. Marketing Strategies

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. First Blush Retail Displays 37

J. Promotional Implementation Timeline 38

K. Script and storyboard _____________________________________________ 39

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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.

Timberland’s 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 s 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. Situational Analysis

1. 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,

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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. Consumer’s 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 Porter’s 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 Macy’s 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 Sketcher’s brand. The price is cheaper and the look is very similar.

3) Bargaining Power of Suppliers

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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 world’s GDP [7].

3) Social

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

target market.

b. 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- Timberland’s 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].


c) Promotion- Frye offers free shipping and returns. Customer’s can also sign up with their

email to receive offers [10].

d) Placement- Frye’s 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

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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].


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].


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

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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 company’s

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 Timberland’s 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 product’s 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

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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, Timberland’s 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 product’s 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 individual’s 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 Price Comfort Style Sustainability

Uggs Boots 1.70 1.57 2.2 2.00 -1

Earthkeeper Boots 2.10 2.98 1.3 1.47 0

Frye Boots 2.03 1.05 -2 3.0 -2

Clarks Boots 2.01 1.15 1 2.65 0

All competitor products, including the Timberland boots, were accurately placed on 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 product’s position in regards to the 2 desired

attributes:

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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 Earthkeeper’s

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 Earthkeeper’s, 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 Earthkeeper’s 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:

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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 e-

commerce 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 company’s market position will also

improve [14].

3) Sustainability measures improve the company’s 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 Timberland’s 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:

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.

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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

proper material to make a better product.

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 [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

push Timberland out of the market [15].

2. 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.

Timberland’s 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

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

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the future. The focus is for people who enjoy spending time outdoors, which can easily be both males

and females.

2. 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

of 35 you may slow down on outdoor activates due to many things such as work, family, health, etc.

3. 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 non-

name brand shoes, these are quite a bit more expensive then something you could get from a Wal-

Mart or Target.

4. Lifestyles: The lifestyle of our target market is people who are active and people who are eco-

minded. 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

they care about style when buying shoes and 10 males noted that they cared about style.

2. 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

their identity.

3. 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

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

brand consumer are willing to find the money to pay for it.

4. 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 Men’s Earthkeepers

Original Leather Boots on the Timberland website was as follows, “Earth Keepers haven’t 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

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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 Company’s biggest competitors are Uggs and Clark. Clark’s 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]. Clark’s 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

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 company’s 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.

14

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 it’s ‘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 12”x12” 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

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 company’s 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.

15

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 company’s 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 the Middle East” [18]. Earthkeepers are sold in department stores such as Macy’s, Nordstrom, and

Lord & Taylor. They are also sold at popular sporting good stores such as Dick’s Sporting Goods. The

Timberland Company’s biggest competitors, Uggs and Clark’s boots are sold at department stores as well

but only Uggs distribution can compete with Timberland’s. 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.

16

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 doesn’t 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

demographic by converting their traditional media platform into a more digital platform.

2. 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.

17

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 Manufacturing in 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] Tyler Lace Up - Men_Boots_Casuals - The Frye Company. (n.d.). Retrieved April 15, 2015.

[11] Rockie Top GoreTex Black Leather. (n.d.). Retrieved April 15, 2015.

[12] UGG® Official | Men's Huntley Canvas Footwear | UGGAustralia.com. (n.d.). Retrieved April 15, 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.

[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.

[19] Youth Stewards. (n.d.). Household Waste - That’s Garbage! Retrieved April 15, 2015, "SWOT Analysis." Timberland Company.

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

18

VIII. Appendices

APPENDIX A: Aggregate Market Factors

Figure 1:

18%

46%

11%

18%

Percentage of Market Share per Cat-egory

Dress Casual

Outdoor Athletic

Source: IBIS World

APPENDIX B: Photos of Product and Competitors

19

Figure 1:

APPENDIX C: Competitive Analysis

20

Product Name PictureClark- Rockie Top GoreTex

Frye- The Tyler Lace Up

Timberland- Earthkeepers

Ugg- Huntley Canvas

Figure 1: Product Attribute and Feature Matrix

Feature Timberland Clarks Frye UggBenefits Eco-friendly

Four season wearableWaterproofOutdoor

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.comwww.clarks.comwww.thefryecompany.com

Figure 2: Competitive Situation Table

Company Product Price Promotion PlacementTimberland 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.

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

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

Timberland’s 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.

21

http://www.thefryecompany.com/

http://www.clarks.com/

http://www.uggaustrailia.com/

http://www.timberland.com/

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.


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

Frye’s headquarters are located in New York. They have four of their own stores and sell their products to department stores such as Nordstrom’s.

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.


Clark’s offers free shipping and returns daily. They also offer an email sign up list.

Clark’s headquarters are located in

Somerset, England. They sell

worldwide and also have a

variety of their own

store locations.

Uggs

Huntley Canvas is a limited

edition boot that Ugg offers for

men. They have a 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.


Ugg also offers free shipping and return everyday. As well as an email sign up list to send information to consumers.

Ugg’s headquarters are located in Goleta, California. They sell worldwide to over 130 countries.

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APPENDIX D: Value Chain Analysis

Value Chain Analysis

Firm Infrastructure – Timberland’s service commitment has proven highly valuable in developing strong, lasting relationships with business partners and other brand stakeholders, Timberland’s commitment to an environmentally-sustainable design philosophy, Corporate CRS program

MarginHuman Resource Management – Through the Path of Service™, Committed to

being an equal opportunity organization, supplier sustainability team, empowering employees through financial literacy

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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 Timberland’s footwear leather volume was sourced from a silver- or gold-rated tannery

Operations Timberland footwear incorporates recycled, organic or renewable materials.

Outbound Logistics Sold worldwide through Timberland’s own retail locations and web site, as well as independent retailers, better-grade department stores, and athletic specialty stores.

Marketing & Sales -Industry first Nutrition Label chronicling the company’s environmental 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

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.

24

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

❏ Frye Boots

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❏ Timberland Boots

Price 1.When you think of Frye Boots, how would you rate price?

-3 -2 -1 0 1 2 3 Do not KnowNot very Good Very Good

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

-3 -2 -1 0 1 2 3 Do not KnowNot Very Good Very Good

3. When you think of Ugg Boots, how would you rate price?


4. When you think of Clark Boots, how would you rate price?


26

Comfort 5. When you think of Frye Boots, how would you rate the comfort?

-3 -2 -1 0 1 2 3 Do not KnowNot Very Comfortable Very Comfortable

6. When you think of Timberland Boots, how would you rate the comfort?


7. When you think of Ugg Boots, how would you rate the comfort?


8. When you think of Clark Boots, how would you rate the comfort?


Style 9. When you think of Frye Boots, how would you rate the style?

-3 -2 -1 0 1 2 3 Do not KnowNot Very Stylish Very Stylish

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


11. When you think of Ugg Boots, how would you rate the style?


12. When you think of Clark Boots, how would you rate the style?


27

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 1 2 3 Do not KnowNot Very Sustainable Very Sustainable

14. When you think of Timberland Boots, how would you rate the sustainability?


15. When you think of Ugg Boots, how would you rate the sustainability?


16. When you think of Clark Boots, how would you rate the sustainability?


Brand Image 17. When you think of Frye Boots, how would you rate their brand image?

-3 -2 -1 0 1 2 3 Do not KnowNegative Brand Image Positive Brand Image 18. When you think of Timberland Boots, how would you rate their brand image?

-3 -2 -1 0 1 2 3 Do not KnowNegative Brand Image Positive Brand Image 19. When you think of Ugg Boots, how would you rate their brand image?

-3 -2 -1 0 1 2 3 Do not KnowNegative Brand Image Positive Brand Image 20. When you think of Clark Boots, how would you their brand image?

28

-3 -2 -1 0 1 2 3 Do not Know

Negative Brand Image 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 $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.

29

❏ 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.

APPENDIX F: Perceptual Map comparing other Attributes

Perceptual Map Comparing

Reputation & Comfort

30

LEGEND X Y

Frye Boots -2 2

Clarks Boots .867 2

Earthkeepers 1.3 2.1

Ugg Boots 2.2 .89

APPENDIX G: Repositioning Maps

Figure 1: Repositioning by increasing Comfort

31

LEGEND X Y

Frye Boots -2 2

Clarks Boots .867 2

Earthkeepers 1.3 2.1

Ugg Boots 2.2 .89

Figure 2: Repositioning by increasing Style

32

LEGEND X Y

Frye Boots 3 1

Clarks Boots 3 1

Earthkeepers 2 1.2

Ugg Boots 1.5 1

APPENDIX H: Financial Strategy

Figure 1: Pro Forma Income Statement

Sales $38,387,000

33

Less: Cost of Goods Sold - 2,066,000Gross Margin $36,321,000Less: Selling Expense - 25,682,000Less: General, Administrative Expense - 116,000Operating Income $10,523,000 Less: Income Tax - 5,850,000Net Income $4,673,000

Price Markups

1. Retail Price: $180 per pair

2. Retailer’s Price: $156.52 per pair = $180/1.15(15% retailer markup)

3. Distributor’s 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 (Manufacturer’s 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

Figure 2: Advertising Plan & Budget

34

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

(air nationally)

1-minute ad $9,600,000

($100,000 per national ad)

67% of Total Budget

Billboards 75 Billboards in major cities

6 Months (every other month)

Full Billboard

(12’ X 25)

$540,000

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

35

Figure 3: Promotional Plan and Budget

Promotion Type

Outlet Frequency Cost To Design and Produce

Cost To execute

In-Store Displays

Footwear Stores

Replace with new design monthly

$1.68 per display

$16,128 (800 displays annually)

.25% of Total Budget

Coupons E-mail If consumer signs up for e-mails

N/A $362,500


Total Promotion Cost

$378,628


Promotional Budget = 25% of Selling Expenses

=25% ($25,682,000)

=$6,420,500

Appendix I: Timberland Retail Displays

36

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

Figure 2:

Figure 3:

Appendix J: Promotional Implementation Timeline

37

Key:

: Not used that month

- - - : Being used that month

Appendix K: Script and Storyboard

38

Months Used:

Jan. Feb. Mar. Apr.

May June July Aug.

Sep. Oct. Nov. Dec.

Advertising:

Commercial

Billboard

- - - - - -

- - -

- - - - - -

- - -

- - - - - -

- - -

- - -

- - - - - -

- - - - - -

- - -

Promotion:

In-Store Displays

Coupons

Sales Force

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 bootsFacts:Use environmentally conscious materials made by eco-conscious companiesUses 100% recycled PET linings (what plastic bottles are made of)42% recycled rubber soles – minimize landfill wasteorganic cotton (77% recycled)organic leatherssilver 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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