Marketing mix of

Timberland company

Written by:

Katarzyna Łazarz

Monika Maciaś
Elżbieta Pawlik

26.11.2013, Krakow

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1. Introduction

The history of "Timberland” is related to the person Nathan Swartz. Founder of the

brand. The dream of owning a shoe factory accompanied him throughout his adult life. In The

Abington Shoe Company worked 1918 years, passed during his career, so he knew about

making shoes like no one else. In 1952 Nathan Swartz bought a half interest in the Abington

Shoe Company in Abington, Massachusetts. In 1955 he bought the remaining interest in

Abington Shoe Company. The Swartz family introduced injection-molding technology to the

footwear industry. This revolutionary technology fused soles to leather uppers without

stitching, producing truly waterproof boots and shoes. In 1973 the company introduced the

first waterproof boot. Introduced at the beginning of the name "Timberlander" - "man of the

forest", yellow shoe thanks to the success of selling quickly began to operate on the market as

"Timberland". Year after year, the company is developing more and more. Extends the range

successively of: hand-sewn moccasins, boat shoes, women's wear and a line of exclusive

leather products. Enters new markets for example Italy then United Kingdom. Since 1989,

Timberland is starting to go into action charity. Began working with the organization City

Year, uniting people from all walks of life with one purpose: of social organization assisting

the needy, on a voluntary basis. Arises the idea of Path of Service- program listed in the

company's strategy, in which employees can spend 16 hours a year on full pay for social

work. Then increased to 40 hours per year. The company is developing. Bring to market new

technologies Active Comfort (ACT) for optimal cushioning and support feet for safety and

ventilation for improved comfort. And ACC , B.S.F.P. technology allowing for better traffic

control especially when walking on uneven ground. Timberland Company has received

numerous awards. Several times is highlighted by Fortune magazine in a ranking of the 100

best companies to Work. Precedence once in 1999. One of the 100 most socially engaged

companies in the report of Business Ethics Corporate Social Responsibility Report. In 2003,

Timberland ranks fifth on the list of "most desirable brand" Fortune magazine, the

manufacturers of clothing and of 50 best-managed companies production (Industry Week

Magazine). Attach importance to the credibility of your company and transparency for

investors, publish a list of the locations of all of its factories in the CSR .Timberland

Company also carries out activities to protect the environment. In 2004, as part of a strategy

of responsible business, Timberland has established the program relies on funding the

purchase of hybrid vehicles by employees. Timberland performs the action of planting trees

(4,000,000). The largest in 2010, performed the action of planting over a million trees in

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China. The campaign began planting trees contributed Greenpeace protest. The organization

accused the company that contributes to deforestation in Brazil. 65,000 accusing email inbox

Timberland went on. The company could not clearly deny so they started to plant trees. In

2008 First footwear manufacturer to commercialize Green Rubber™ technology. The

Timberland Company has partnered with Green Rubber Inc. to launch two new footwear

collections featuring outsoles made using recycled rubber from discarded tires. In 42% of

plastic rubber soles are processed. For the last few years Timberland put a special label on the

packaging (Nutritional Label), informing customers of how the product was created, how

much energy was used in the process, the number of factories Timberland percent of the

workforce that are children in factories (0%) and the number of operating hours for social

purposes by Timberland employees. The Swartz developed the company: 2010 Revenue was

$ 1.4 billion and they employ 5,600 people around the word. Mission one of Outside

Magazine's "Best Places to Work” is to equip people to make a difference in their world. They

do this by creating outstanding products and by trying to make a difference in the

communities where we live and work. So it is today.

2. Target market and target consumers

Target market

Timberland’s corporate headquarters are located in Stratham, New Hampshire.

Timberland also operates from offices in other parts of the world. Is manufacturer mainly of

footwear. The company sells products in over 100 countries, of which the largest recipient of

the American market, in Europe, the highest sales recorded in United Kingdom, Spain and

Germany.

Brand values

The Timberland brand is infused with an ethos of healthy living. It harnesses the

power of the outdoors and helps make it accessible to consumers by developing a full range of

premium footwear, clothing and accessories. This passion for the outdoors and the knowledge

that the outdoors has a transformational power to challenge and give people a new perspective

on the world has helped Timberland grow from a mere boot maker into a global lifestyle

brand. Ever since Timberland developed the first guaranteed waterproof boot, the company

has been committed to quality, durability, authenticity, value and performance, and to

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delivering the experience of 'the great outdoors' to its customers. The central pillar of

Timberland's long-term strategy is to provide value and innovation to consumers throughout

its entire product offering. A commitment to 'good business' is another vital part of the

Timberland brand. The company's core belief is that business can and should be a force for

positive change. It sees this 'business of business' being about responsibility, engagement,

partnership and positive change.

Target Customer

The company's core belief is that business can and should be a force for positive

change. Our customers are people who like get sporty in their spare time and people who

wants look casual. What differenties us in the marketplace is our attention to detail and

quality assurance rules that we adhere to at every stage on production.

3. Product policy

Timberland is a leading manufacturer of footwear, but also watches, glasses and

leather goods. Going by the brand name Timberland are two major product lines: Casual and

Outdoor Performance. Casual is a combination of chic and comfort, top quality materials and

innovative production technology. Outdoor Performance is a line for those who like to get

sporty in their spare time. If you are after comfort and safety, these leading technology

products are your best bet.

Innovations

Innovation was linked to Timberland's heritage. In 2005, CEO Jeff Swartz and COO

Ken Pucker hoped the Invention Factory, an advanced concept lab, would develop new

breakthrough products and reinvigorate the company's culture of innovation. Since the 1960s,

Timberland had relied on innovation, developing the world's first waterproof boot and, in the

1980s, category-defining boat shoes and day hiking boots. Creating variations of these core

products, along with expansion into apparel, had sustained Timberland's business for more

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than 30 years. Timberland's growth in the past six years was due to increased international

sales and new customer segments.

Earthkeeping

Earthkeeping is straightforward, practical, common sense. It means taking actions that

enable us to be good stewards of the earth. Earthkeeping is the way we make our products.

It’s using revolutionary breakthroughs like Green Rubber compound to make 42% recycled

rubber outsoles. Earthkeeping is using renewable energy in our facilities. Earthkeeping is the

more than three million we’ve planted around the world to help prevent desertification, reduce

drought, fight global warming and green our communities. Earthkeeping is how we take a

stand on issues that affect the environment, like climate change.

4. Pricing policy

Timberland emphasis on the quality of their products. The product range is not the

cheapest. There are products for everyone. Quality, recycling character shoes convinces

customers to buy them. Timberland’s boots are high-end sporting goods stores. Their price is

proportional to the quality. Company Timberland creating their own prices mixed strategies.

With the launch of new products used: skimming pricing and penetration pricing. Some

products from the new collection is offered in a high price, which after some time will

promotions. Others are put on the market at a promotional price. Boots new collection of

high-end sports shoes at a promotional price tempts customers. If you buy more than 600 zł

they can give you a loyalty card and you will have 5% discount for every time when you buy

something. They will send on your e-mail information about special promotion. In Stores

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Timberland held seasonal discount prices. In the autumn 2013 we can observe reduction

prices confection and accessories by 40% and 5% price reduction whole range of company’ s

products. In addition, Timberland offers when buying over the internet for free shipping.

Timberland’s biggest competition comes from Nike (NKE), who competes with Timberland

in the footwear and apparel department, although Nike’s outdoor division is not the

company’s main focus. Columbia Sportswear Company (COLM) directly competes with

Timberland over outdoors customers interested in hiking boots and outdoor apparel, as does

Wolverine World Wide (WWW). Nike footwear prices are lower than the prices of

Timberland shoes. Not that models with more than 100 zł. When it comes to clothing, the

situation is similar. Nike in terms of price wins the competition. Nike jacket costs 350 - 450

zł, while Timberland's more than 800 zł. Why do consumers choose more expensive product?

The quality and material of which Timberland manufactures its products convinces

customers. Hiking boots hammerhead companies: Timberland and Columbia Sportswear

Company are offered at similar prices. The situation is similar when it comes to comparing

the prices of the company Wolverine World Wide. Prices waterproof boots hammerhead these

companies are similar. Timberland competitors are also Camel Active and Jack Wolfskin.

Prices of the first of these are similar to the prices of producers' yellow boot ". The other

company has higher prices.

5. Distribution

Distribution and Location

Timberland company sells its products on all continents. It has its own stores in sixty

countries, including Poland. Brand Timberland is present in dozens famous footwear and

sports networks in the country. The company also has 13 independent brand stores

Timberland. In the nearest future it is planned to open more stores in the most prestigious

locations in Poland. Clothes and shoes are sold worldwide through the independent retailers,

better-class department stores and specialist sports shops. The products can also be purchased

through the website. These countries such as: Poland, USA, UK, France, Germany, Italy,

Spain to sell by mail order. In the country, the time shipment of goods is 24 hours. The

Company also has a network of its own Timberland Retail Outlets and Factory Outlets and

authorized retailers. Stores are located in major cities in the country (In Poland: Krakow,

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Warsaw) in shopping centre or in the center of town where there is a large movement of

people and easier to get a potential customer.

Merchandising

Shop window is mainly composed of mannequins dressed in the clothing sold and

shelves of shoes. But when we go to the store will be surprised interior décor. Shelves, floors,

tables, chairs, and even the walls are made of wood. All this makes the room seems like a

very warm, cozy and reminded rural small wooden hut. Store is divided into three categories:

clothes for women, men and children. Additional fourth category is exposure the new

collection in the central part of the shop (in the middle). Stretching along the walls, wooden

shelves with shoes. The light is very bright and illuminates the entire store. There are also

additional lamps that illuminate the merchandise on the shelves. In the entire shop you can

hear joyful music that makes shopping is more pleasant. Shop is decorated in colors of wood

and white.

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The main motive of which can be seen in stores is a tree, which refers not only to the logo, but

also to the ecological action carried out by the company.

Seasonal sales and discounts are promoted through posters placed in the shop window. Goods

covered by the discount laced on separate shelves and racks with the word "sales".

6. Communication with customers

The theory of the marketing mix also includes the promotion. It consists of elements

such as advertising, personal selling, sales promotion, public relations. The main motive of

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Timberland's ad is ecology and taking care of nature. The company uses these forms of

advertising like a billboard and TV spots.

Advertising posters suggest to potential customers that buy Timberland products, work

for the environment. They show a combination of shoes and wild nature as rocks or water.

The company is also your youtube channel, divided into two categories, for men and for

women. There are published short videos of the latest collection, the process of creating

clothes and run by ecological actions.

To contact the consumer has used the social media. Profile on facebook and twitter are

used to inform customers about new products and curiosities about this company.

Ads are also advertised in men's magazines, such as Men's Health, Logo, and fashion

magazines for women, for example, Fashion and Style.

To encourage their customers to buy the company's products, stores run sales

promotion. Price reductions depending on the particular promotion range from 20 to 60

percent. Twice a year the stores are carried out seasonal sales. Winter sales start after

Christmas and finish in March. Summer sales start in June and finish in September.

The company is trading through the Internet and sold on their websites clothes and

shoes. Shop Online has a very wide range of both women, men and children. It is mainly B2C

sales, and the consumer can order a product anywhere in the world. Delivery time in the

country in which the store is 24-48h depending on when you will order.

It is very important for the company is to develop a good relationship with the

environment. The main channel of these activities is the internet. The company is not only my

fanpage on social networks, but also a personal blog, where he describes in detail how their

actions on the environment and food aid someone in need. Consumers are encouraged to help

and making donations. On the blog I find a meter that is designed to count number of trees

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planted by the company Timberland. Their goal is within five years (2010-2015) 5 million to

plant trees. Now, after three years of activity has planted 4.2 million trees.

The company also takes care of internal relations. Twice a year the company's

employees, together with Their families, friends and volunteers join forces to make the world

a little better, doing charity work for the benefit of local communities and the enviromental. In

2005, 39 people worked for 351 hours socially. The 2007 initiative Involved already 184

people, doing enviromental work for 1472 hours altogether.

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7. SWOT analysis and competitive analysis

SWOT analysis

Competitive analysis

Competitive analysis in comparison with companies such as: Nike, Columbia Sportswear

Company, Wolverine World Wide, Camel Active , Jack Wolfskin. These companies produce

sportswear and hiking boots.

STRENGHTS

WEAKNESSES

 Timberland Company manufactures

leather shoes, but in compensation for the

nature supports protection of the

environment such as planting trees, and

the soles of recycling.

 No other company sells clothing does not

carry such a strategy to create the image.

 Timberland Shoes is more accessible on

goods Wolverine World Wide.

 Nike shoes are cheaper than

Timberland shoes, but compared to

the other competitors prices are at a

similar level.

 Shoes Timberland is less available

from Nike goods.

STRENGHTS

WEAKNESSES

 Ecology (sole of recycled materials,

creating the image of the company based on

of the protection of the environment)

 Quality

 Availability (Internet sales, network of

stores in 60 countries, licensed distributors)

 Offering the goods for children and adults

 Unique styles of footwear

 High prices

 Small number brand stores in Poland

(only 13)

OPPORTUNITIES

THREATS

 Growing interest in ecology

 Opening of new stores in big cities

 Increasing competition

 Economic crisis

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8. Conclusions and recommendations

The company from the beginning of its existence has built the image of friendly people and

nature. They took part in environmental campaigns and providing assistance to the needy such

as planting trees, Timberland 's employees can spend 40 hours a year on full pay for social

work. The same company logo is a symbol of the company strategy, because it is the tree.

With high quality products, the company has sold the satisfaction of customers. Over time,

introduced new technologies: waterproof boots, Active Comfort (ACT) technology for

optimal cushioning and support feet for safety and ventilation for improved comfort. And the

ACC, B.S.F.P. technology allowing for better traffic control especially when walking on

uneven ground. Everything to adjust their products to consumer preferences. The high price of

products means that customers of people are well-off.

The company sells its products in 60 countries. In Poland, possess 13 stationary stores. You

can purchase products through the web page, as well as in stores licensed distributors.

They say :

“As much as we love the planet, we realize that by making our products, we’re part of the

problem. We definitely want to be a part of the solution.”