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BY TIMBERLAND
ASCENT
ILLUSTRATED MARKET REPORT
EFMM 6003MAJOR PROJECT AND CAREER PLANNING
GEMMA ROBYN THEOBALD	 1200910
2
3
EXECUTIVE SUMMARY				5
INTRODUCTION					9
1. THE PROPOSAL				 13
- COMPANY OVERVIEW				 15
- OUTLINE OF NEW PRODUCT			 19
- UNIQUE SELLING POINT			 21
- ANSOFF MATRIX				 23
2. THE MARKETING MIX				 25
- PEOPLE					 27
- DEMOGRAPHICS				 28
- SPENDING POWER				 29
- MARKETING TYPOLOGIES			 30
- PSYCHOGRAPHIC PROFILE			 35
- BUYING ATTITUDE				 36
- TARGET MALE CONSUMER			 38
- TARGET FEMALE CONSUMER			 40
2.2. PRODUCT					43
- PRODUCT OVERVIEW				 44
- MATERIALS					 46
- DESIGN AND MANUFACTURE			 48
- INSPIRATION					 50
- PRODUCT CONCEPT				 51
- MEN’S PRODUCT				 52
- WOMEN’S PRODUCT				 53
- CAD RANGE PLAN				 54
- SOURCING					 64
- SUSTAINABILITY				 66
2.3. PRICE					69
- PRICING POLICY				 70
- PRICING ARCHITECTURE			 71
- PRICE BAND MATRIX				 72
2.4. PLACE					75
- DISTRIBUTION STRATEGY			 76
- STOCKISTS					 77
- OMNI-CHANNEL RETAILING			 78
- FLAGSHIPS					 79
- CONCESSION				 80
- CLIMBING WALLS				 81
- E-TAIL					 82
2.5. POSITION					85
- PRICE STYLE MATRIX				 86
- PRICE BAND MATRIX				 88
- COMPETITOR ANALYSIS			 90
- COMPETITOR EVALUATION			 92
2.6. PROMOTION					95
- LOGO DEVELOPMENT				 96
- INTEGRATED MARKETING STRATEGY		 97
- BRAND DNA PYRAMID			 98
- SWING TICKETS				 100
- PACKAGING					 101
- LABELLING					 102
- EXPERIENTIAL RETAILING			 104
- CONCESSIONS				 105
- VISUAL MERCHANDISING			 106
- E-COMMERCE				 107
- DIGITAL CAMPAIGNS				 108
- PR ACTIVITY					 109
- TARGET MEDIA				 110
- BRAND AMBASSADORS			 112
- MEN’S PRINT CAMPAIGNS			 114
- WOMEN’S PRINT CAMPAIGNS			 116
- SOCIAL MEDIA				 118
- FILM CAMPAIGN				 120
- LAUNCH EVENT				 121
- MY ASCENT APP				 122
2.7 PERSUASION				125
3. BUSINESS PLAN				 129
- ESTIMATED SALES				 130
- ESTIMATED MANUFACTURING COST		 131
- INTAKE MARGIN				 132
- MARKETING COST				 133
- CAPITAL INVESTMENT			 134
- PROJECTED PROFIT/LOSS			 136
4. SWOT ANALYSIS				 139
5. CONCLUSION					145
BIBLIOGRAPHY					149
APPENDICES					153
4
5
EXECUTIVE SUMMARY
6
7
This report has been commissioned to detail the launch of a new sub-brand from outdoor retailer, Timberland. Primary research has shown
that consumers no longer associate Timberland as an outdoor brand, rather just a fashion label like many others on the high street. Although
extremely profitable and successful as a fashion brand, the company have lost some of their outdoor heritage along the way.
"I used to love Timberland and bought many shoes and jackets from there, now it’s all a bit too fashion conscious and the quality doesn’t seem
as good."
To entice these consumers back, whilst still retaining the success of their new ventures within the fashion market place, Timberland Ascent
was crafted. The sub brand will target people with a love for the outdoors, including rock climbers, trekkers, mountaineers, and even existing
customers who can turn professional outdoor gear to trends seen on the streets of urban cities. This is a great opportunity for Timberland to
capitalise on both the casual wearer and extreme climber.
Timberland have strong knowledge of manufacturing apparel and operate a number of factories across the world, they are also a well known and
respected brand in both the outdoor and fashion industry. This venture will help to increase both profits and brand awareness further.
Primary research has shown that consumers are willing to spend more on a quality product especially if it is sustainable. The outdoor market
puts a lot of effort into protecting the environment their consumers explore, therefore sustainability along with good working ethics will convince
consumers to buy into the Ascent brand. Innovation is key for outdoor brands; consumers want the latest when it comes to technical fabrics and
design. Timberland Ascent will use specialised Hyvent technology, Gore-Tex, and 100% traceable goose down in their products.
The target consumer for Timberland Ascent is male and females between the ages of 25-34. Mintel predicts an 8% rise across this age group
and consumer research shows that they have now become the main clothes shoppers with Mintel’s consumer research showing that 96%
have purchased garments in the last 12 months, the highest rate of all age groups (Mintel, 2014). This suggests that it is the optimum time for
Timberland to pursue this endeavour. As it is targeted to both men and women, the new product will cater need for both sexes keeping in mind the
brand philosophy: "Our mission is to equip people to make a difference in their world." (Timberland, 2015)
Timberland Ascent will send out a consistent brand message across both traditional and non-traditional marketing platforms and will use
different promotional methods to reinforce each other. These will include a number of channels including; digital marketing, public relations,
visual merchandising, and brand ambassadors, all detailed in this report.
8
9
INTRODUCTION
10
11
The aim of this report is to justify why Timberland should introduce a new sub-brand specialising in rock climbing, trekking and mountaineering.
Fundamental areas of research have been highlighted throughout the report with evidence coming from both primary and secondary research.
Primary research included a variety of techniques; quantitative research was conducted in the form of questionnaires, (which were sent out
online through social media, emails, and also printed to take to specific locations for consumers to complete) and qualitative research through
interviews with industry experts, a small focus group, and store visits to existing Timberland stores and competitors. Secondary research was
predominantly collated through Mintel, LSN: Global, and Timberland’s current website. This is extended research conducted over a two-month
period following that of the initial research process to find a gap in the market. Research focused on the Timberland brand and what consumers
wanted to see from the collection.
Limitations to primary research included the small size of the focus group, lack of females interviewed compared to males, and, that the majority
of climbers spoken to largely climbed at indoor walls rather than outside in extreme conditions. The quality of solid and published secondary
research in some areas also proved difficult, as there are not many reports available explicitly for the outdoor industry. Accurate business planning
was challenging due to the lack of sources that provided evidence of true manufacturing and marketing costs, therefore educated guesses had
to be made resulting in a lack of genuine figures to the report.
Further research can be found in the background research pack to support this proposal.
12
13
1. THE PROPOSAL
14
1.1 Company Overview
15
COMPANY OVERVIEW
"Our mission is to equip people to make a difference in their world. We do this by
creating outstanding products and by trying to make a difference in the communities
where we live and work while doing it." - Timberland
16
60%revenue outside
of the U.S. in 2013
$2.3Brevenue expected in 2017
300factories worldwide
- The VF Corporation
17
Timberland, founded in 1952 by Nathan Swartz is a
retail chain offering stylish, rugged apparel, footwear &
accessories for men, women & children. It originated as
an American manufacturer and retailer of specialised
hiking boots. The brand introduced injection-molding
technology to the footwear industry. This revolutionary
technology fused soles to leather uppers without
stitching, producing truly waterproof boots and shoes.
Timberland became well-known in the 1980’s for its
iconic Yellow Boot which is still popular today and a big
fashion trend. In 1988 Timberland entered the men’s and
women’s clothing and accessories market.
Timberland was acquired by the VF Corporation in 2011.
As of 2012, Timberland’s sales revenue reached $1.7
billion and is projected to increase to $3.1 billion by the
end of 2019. (VF Corporation Full Year Results)
$1.7 BILLION
SALES REVENUE
18
85
34
18
stores in the U.S.
stores in the UK
stores in Canada
"The Timberland brand has a rich history of
designing and engineering some of the world’s
most iconic footwear, apparel and accessories for
the outdoor lifestyle. Yet the brand stands for more
than New England ingenuity and great-looking,
well-crafted, innovative products. It also stands
for environmental and social responsibility, for
being a caring corporate citizen and an engaging
place to work — qualities that also make the brand
a natural fit with VF." - The VF Corporation
19
OUTLINE OF NEW PRODUCT
Primary research has shown that consumers no longer associate Timberland as an
outdoor brand, rather just a fashion label like many others on the high street. Although
extremely profitable and successful as a fashion brand, the company have lost some
of their outdoor heritage along the way.
"I used to love Timberland and bought many shoes and jackets from there, now it’s all
a bit too fashion conscious and the quality doesn’t seem as good."
Ascent proposes to entice these consumers back to the Timberland brand whilst still
retaining the success of their new ventures within the fashion market place. The sub
brand will target people with a love for the outdoors, including rock climbers, trekkers,
mountaineers, and even existing customers who can turn professional outdoor gear to
trends seen on the streets of urban cities.
Quality is key when it comes to the collection, product will be made from highly
technical fabrics, designed for practicality as well as style, and most of all, responsibly
sourced.
20
21
UNIQUE SELLING POINT
Timberland’s Ascent collection will be designed in-house by a team of experienced
designers with the aid of outdoor professionals and brand ambassadors. Primary
research has shown that customers are more likely to buy a product if someone they
respected or admired was part of the design and manufacturing process. "If you had
a well known climber on board it would definitely make me more likely to buy as they
know first hand what you need and what works for the sport and conditions".
FabricswillberesponsiblysourcedandclothingethicallymadeinsomeofTimberland’s
existing factories with the ‘Accepted’ rating, this means "The factory has no serious
safety, health, or labor issues and is certified to produce VF or related licensed products
for 12 months, at which time an annual review is necessary to maintain an ‘Accepted’
rating (Timberland, 2015).
More information regarding supplier sustainability and worker engagement can be
found in the CAD Range and Sourcing pack.
22
ANSOFF MATRIX
Timberland is already in the outdoor industry, however this is mainly for their footwear
and in recent years their clothing range has become more casual and fashion forward.
Therefore the Ascent range sits in the Product Development category of the Ansoff
Matrix as pictured to the right..
Timberland have strong knowledge of manufacturing apparel and operate a number of
factories across the world, they are also a well known and respected brand in both the
outdoor and fashion industry. This is a great opportunity to increase both profits and
brand awareness further.
23
NEW MARKET
NEWPRODUCT
EXISTING MARKET
EXISTINGPRODUCT
MARKET PENETRATION
DIVERSIFICATION
MARKET DEVELOPMENT
PRODUCT DEVELOPMENT
24
25
2. THE MARKETING MIX
26
27
PEOPLE
Timberland Ascent’s target consumer sits within early Generation Y; these older
millennials "have much greater freedom to adjust their spending to match their
resources. Few have children or ageing parents to worry about, and even fewer have
to service a mortgage taken out at the peak of the pre-crash housing boom."” - Mintel
This lack of responsibility means that millenials are more likely to spend money on
luxury items such as new clothes, an expensive meal, or book a holiday. Socialising
is very important and many lead busy social lifestyles, all of which ties in with the
concept of Timberland Ascent.
28
DEMOGRAPHICS
8.3%
Males 25-34FEMales 25-34
7% 97%
"Three in ten females are willing to spend more on well-made clothes that will
last longer.
Predicted fall in female unemployment will mean women have more
disposable income to spend on clothes.
Increase in male employment – The number of employed men is set to
increase over the next five years and this will benefit the sector as those in
full-time work are the most active shoppers." - Mintel 2014
25-34 year olds have become the main clothes shoppers, with Mintel’s
consumer research showing that 96% have purchased garments in the last
12 months, the highest rate of all age groups.
Amongst both sexes, this age group shows below-average interest in sales
and special offers meaning that they are prepared to pay full price for clothes
they like." - Mintel 2014
94%
29
SPENDING POWER
Although youth unemployment is still relatively high, graduate salaries have fallen, and people are leaving
university with an ever-growing level of debt. Millennials remain extremely positive about their financial
situation, 33% of younger Millennials and 40% of older Millennials said that they were at least a little better
off. It’s the only generation that, on balance, feels that their finances have improved over the last year. It
shows that confidence is as much about an individual’s stage of life and their expectations as it is about
the broader financial situation. - Mintel 2015
Taking this into careful consideration shows that this age group are likely to have increased spending
power, they are confident with their financial situation, have less financial responsibility than their
generation X counterpart (with many not yet having a mortgage or family to support), and socialising
remains at the forefront of their lives.
30
MARKETING TYPOLOGIES
31
NEW VALUE SEEKERS NU TREKKERS ATHENA WOMAN
32
"New Value Seekers are practical
when it comes to shopping.
They tend to buy when they need
things, and prefer to shop online
or go direct to a brand rather than
shop at big box retailers. None of
them are particularly aspirational
when it comes to clothing –
window-shopping barely exists
in their worlds. ‘I don’t really go
shopping any more,’ says Ai.
Those who are more inclined to
shop move easily between high
and low fashion. H&M basics
might be accompanied by casual
designer clothing from Paul
Smith or pieces from showrooms
such as The News in SoHo, New
York." - LSN Global
NEW VALUE SEEKERS
33
NU TREKKERS
"Seeking an outdoor escape from urban
life, or simply re-engaging with the city
through new activities, a new wave of
hikers, walkers, bikers and marathon
runners are trekking through life and
seeking a challenge outside of their daily
lives.
Nu Trekkers, aged in their late 20s and early
30s, have grown out of social activities
that revolve around drinking and partying.
They are seeking a more meaningful hobby
that will proactively improve their health
and lifestyle.
Traditional and longstanding brands
are popular, along with newer names
providing good quality, durable clothing
and equipment for this consumer." - LSN
Global
34
ATHENA WOMAN
"Career success and increased
spending power are giving rise to
a new breed of highly educated,
affluent and entrepreneurial
woman. These women exude
a positive ‘alpha’ spirit, which
is empowering rather than
aggressive, and collaborative rather
than competitive. They seek new
products and services that place
emphasis on fitness, wellbeing, and
mind-body strength to fuel their
hectic lives and help them achieve
their end goals. In this She-conomy,
shrinking and pinking it will no
longer suffice. Prepare yourself for
the rise of the Athena woman.
They are active women and feel
more capable of achieving their
goals when they know they look
physically strong." - LSN Global
35
PSYCHOGRAPHIC PROFILE
INNOVATORS
EARLYADOPTERS
EARLYMAJORITY
LATEMAJORITY
LAGGARDS
9% 21% 28%36% 6%
NU TREKKERS NEW VALUE SEEKERSATHENA WOMAN
The key marketing typologies that build up the Timberland
Ascent consumer each adopt current trends at different times.
The curve demonstrates the life cycle of fashion collections and
how they dilute through each adopter. Most of the tribes fall into
the early adopter category. This is due to their need for the latest
technologies when it comes to outdoor and fitness, financial
power, and social lifestyle.
The Athena Women are quickest to embrace new trends as they
are the most social network-savvy, have increased spending
power, and love to shop online. Nu Trekkers are big spenders
when it comes to purchasing outdoor gear, "traditional and
longstanding brands are popular, along with newer names
providing good quality, durable clothing and equipment." - LSN
Global.
The New Value Seekers are more practical when it comes to
shopping, they only tend to buy things when they need them
and are not heavily influenced by trends. "None of them are
particularly aspirational when it comes to clothing – window-
shopping barely exists in their worlds." - LSN Global. As a result
of the trend adoption pattern, different items in the Ascent
collection will appeal to different tribes.
36
BUYING ATTITUDE
EMOTIONAL RATIONAL PATRONAGE
Consumers will make an informed
decision before buying the product.
They will look into the quality,
ethics, and price of the product
before committing to buy.
Consumers will create an emotional
attachment to the product and brand,
this is usually created through clever
marketing strategies as consumers will
aspire to create their own connections
with Timberland Ascent.
Existing consumers will continue
to buy the brand out of loyalty and
new consumers will be created due
to the brands heritage and history
as a trusted retailer.
37
38
Sam is 32 years old, he lives in Tunbridge Wells, Kent, less than an hours train journey into Central
London.
He works as a freelance videographer creating short documentaries and works as a cameraman
for ITV. Travelling is a big part of his job which takes him across the world filming in many different
locations each year.
Sam is an avid climber, he climbs 3-4 times a week at his local indoor centre and loves to climb
outdoors whenever he can depending on his work load, and the weather. Bowles Rocks, a popular
outdoor climbing destination is just a 15 minute drive away from Sam’s three bedroom house which
he shares with his fiancé, Jess.
Sam takes pride in his fitness and appearance and leads a healthy lifestyle. He buys men’s grooming
products and enjoys both shopping in stores and online. On the weekends he likes to have a drink at
the local pub with his climbing friends or go out for meals with his fiancé.
Money is spent on two activity filled holidays each year either skiing in the Alps, or climbing in
different countries. He likes to buy clothing from brands such as Patagonia, All Saints, French
Connection and Timberland. He buys all of his climbing equipment from DMM.
TARGET MALE CONSUMER
39
"Style and fitness important to me, I like to buy from outdoor brands such as Patagonia
and Timberland."
40
Katie is 26 years old, she lives in Elephant and Castle, London with her boyfriend
Alex and works as a lifestyle journalist for InStyle magazine.
Katie mainly climbs indoors as an alternative way of keeping fit rather than
going to the gym. She is a member of The Arch Climbing Wall in Bermondsey
and goes three times a week.
Along with climbing, Katie also enjoys yoga and playing tennis. She loves going
on short, active breaks to Center Parcs and goes on holiday abroad once a year.
She has just booked a two week holiday to Thailand with her boyfriend.
Katie sits within the C1 NRS social grade and tries to add to her savings each
month. She likes to spend money on going out with friends, eating out, books,
and clothes. She is fashion conscious and buys clothing from Whistles, French
Connection, Tommy Hilfiger, and Cos.
TARGET FEMALE CONSUMER
41
"I climb to keep fit and to socialise with friends, fashion is important to me and I tend to buy clothes
at high street brands rather than outdoor brands. I feel that outdoor retailers are not fashion forward
enough, especially in womenswear."
42
43
2.2. PRODUCT
44
PRODUCT OVERVIEW
‘Timberland Ascent’ will launch its first collection in Spring/Summer
2016. With a focus on trekking, climbing, and mountaineering, the
product will be durable, breathable, flexible, and of high quality. The
Timberland brand prides itself on being sustainable and ethical, this
has continued to be of the upmost importance when developing the
new range; not only this, as a recently popular fashion brand, style
remains a vital part of the design process.
Targeted to both men and women, the new product will cater need
for both sexes keeping in mind the brand philosophy: "Our mission
is to equip people to make a difference in their world."
45
46
MATERIALS
Fabrics in the Timebrland Ascent collection will first and foremost be
responsibly sourced. Specialised materials with new technologies will be a
vital part in the selection and production of fabrics.
HyVent Tech, a waterproof material with breathable technology that utilises
a polyurethane (PU) coating that consists of a tri-component, multi-layer
formula for waterproof protection, moisture permeability and durability will
be a key material used throughout the collection. (Taunton Leisure, 2014)
100% traceable goose down will also be used in product for unbeatable warmth
and quality.
Timberland also partners with Bluesign technologies which works at each
step in the textile supply chain to approve chemicals, processes, materials
and products that are safe for the environment, safe for workers and safe for
the end customers.
Other specialised materials including Gore-Tex and Thermoball will also be
used throughout the Ascent collection.
For more information, please see the CAD Range Plan and Sourcing pack.
47
48
DESIGN & MANUFACTURE
Timberland’s Ascent collection will be designed in-house by a team of
experienced designers with the aid of outdoor professionals and brand
ambassadors. Primary research has shown that customers are more likely to
buy a product if someone they respected or admired was part of the design
and manufacturing process. "If you had a well known climber on board it
would definitely make me more likely to buy as they know first hand what you
need and what works for the sport and conditions".
Clothing will be ethically made in some of Timberland’s existing factories with
the ‘Accepted’ rating, this means "The factory has no serious safety, health,
or labor issues and is certified to produce VF or related licensed products
for 12 months, at which time an annual review is necessary to maintain an
‘Accepted’ rating.” - Timberland.
More information regarding supplier sustainability and worker engagement
can be found in the CAD Range Plan and Sourcing pack.
49
50
INSPIRATION
51
PRODUCT CONCEPT
Timberland’s Ascent collection aims to be a leader in outdoor apparel with
the latest fabric technologies and design. Product will be practical and will
suit an array of outdoor conditions. At Timberland we pride ourselves as an
innovator of style as well as technology, therefore the Ascent collection will be
both functional and stylish.
Outdoorwear is becoming increasingly popular on the streets of urban cities,
with many consumers purchasing specialised clothing to wear day-to-day.
This is a great opportunity for Timberland to capitalise on both the casual
wearer and extreme climber.
Apparel will have a focus on the latest trends when it comes to colour and
shape, this will make it stand out amongst its competitors and draw a range
of customers into stores.
52
MEN’S PRODUCT
53
WOMEN’S PRODUCT
54
CAD RANGE PLAN
The AW 16/17 range for Timberland Ascent has 36 lines, 15 for men, 15 for women, and 6
accessories. These products come in a selected range of colours to provide the consumer
with options and is manufactured from high quality fabrics.
For more information please see the CAD Range Plan and Sourcing Pack and Appendix.
55
MEN’S COLLECTION
MEN’S SANDERS JACKET
WITH HYVENT
WATERPROOFTECHNOLOGY
£480
MEN’S STORM JACKET
WITH HYVENT
WATERPROOF TECHNOLOGY
£540
MEN’S KNOX GILET
WITH HYVENT
WATERPROOF TECHNOLOGY
£145
MEN’S CRAG MID-LAYER JACKET
WITH HYVENT
WATERPROOF TECHNOLOGY
£100
56
MEN’S CHANCE
LAKE SHORT
£55
MEN’S TREKKER
LIGHTWEIGHT TROUSER
£70
MEN’S PARAMOUNT TROUSER
£170
MEN’S DUAL POINT
ALPINE PANTS
£85
57
MEN’S BOSTON CREW JUMPER
£85
MEN’S KENNEDY OXFORD SHIRT
£60
MEN’S CARTER FRONT
POCKET HOODIE
£80
MEN’S SWIFT CREW TEE
£25
58
MEN’S CONWAY LONG SLEEVE TEE
£40
MEN’S SPENCER BASELAYER TIGHTS
£40
MEN’S BOLT BASELAYER TOP
£30
59
WOMEN’S COLLECTION
WOMEN’S HILBURY JACKET
WITH HYVENT
WATERPROOFTECHNOLOGY
£320
WOMEN’S JOSEPHINE JACKET
WITH HYVENT
WATERPROOF TECHNOLOGY
£270
WOMEN’S CARA GILET
WITH HYVENT
WATERPROOFTECHNOLOGY
£120
WOMEN’S NATALIE JACKET
WITH HYVENT
WATERPROOF TECHNOLOGY
£70
60
WOMEN’S FLOW VEST
£22
WOMEN’S ESME CREW TEE
£20
WOMEN’S KRISTIN
LONG SLEEVE CREW TEE
WITH FRONT POCKET
£45
WOMEN’S CLEO SHIRT
£50
61
WOMEN’S FAYE MERINO WOOL
ROLL KNECK JUMPER
£70
WOMEN’S MIA HIGH WAISTED
LIGHT-WEIGHT SHORTS
£65
WOMEN’S GEORGIA GOOSE
DOWN SKIRT WITH HYVENT
WATERPROOFTECHNOLOGY
£110
WOMEN’S TREKKER
LIGHTWEIGHT TROUSER
£75
62
WOMEN’S BARTON BASELAYER TIGHTS
£35
WOMEN’S PARAMOUNT TROUSER
£80
WOMEN’S DUAL POINT ALPINE SUIT
£190
63
ACCESSORIES
TimberlandAscentwillalsohaveasmallrangeofaccessories,
from large hiking rucksacks, to small chalk bags. These
come in a range of colours that feature in both the men’s
and women’s collection. For the full accessories collection,
please see the CAD Range and Sourcing Pack.
64
SOURCING
Fabrics will be responsibly sourced and clothing ethically made in some of Timberland’s existing factories that
hold the ‘Accepted’ rating, this means "The factory has no serious safety, health, or labor issues and is certified to
produce VF or related licensed products for 12 months, at which time an annual review is necessary to maintain an
‘Accepted’ rating.
While Timberland owns and operates a factory in the Dominican Republic, the remaining manufacturing facilities
where our products are made are owned by third-party contract manufacturers and suppliers. We don’t control the
practices of factories that we don’t own, but we do insist they comply with our Global Compliance Principles. This
helps to ensure that every facility creates high-quality products in a way that respects the environment and the
human rights of the people who make them.
Timberland products are therefore produced in approximately 375 factories per year, all factories may not have
produced for the entire 12 months. As a result, Timberland has approximately 300 active factories (on average) at
any given time. - (Timberland, 2015)
65
66
SUSTAINABILITY
Timberland puts as much recycled content as possible into product design and works to ensure
these choices are cost effective.
As an outdoor brand, Timberland have always gone to great lengths to make gear that lasts for a
long, long time. And because they value the outdoors, they strive to do it in a way that’s sustainable.
Timberland encourage their product creation teams to choose environmentally-conscious materials
like Green Rubber™ material made from recycled rubber that would otherwise go into landfills,
recycled PET (the stuff plastic bottles are made of), and organic content.
Add to all that craftsmanship and old-fashioned Yankee ingenuity and you’ve got Timberland’s
product philosophy.
Timberland use 78,3% of renewable, organic or recycled materials of all its footwear shipped and
approximately 36,7% in its apparel for the year 2013. (Timberland, 2015)
67
68
69
2.3. PRICE
70
PRICING POLICY
Market-orientated prices will be used to appeal to consumers, this means setting a price based
upon analysis of competitors and research from Timberland’s target market. Premium pricing
will be taken into account, (setting the price just above the competition) to establish the range
as a high quality product with longevity. Prices will be similar to key competitors such as The
North Face and Patagonia, as product will be on a similar technical level.
The entry price for Timberland Ascent will sit at £15 for small accessories such as socks and hats
with the exit price being as high as £550 for a coat. The average price of casual items such as
shirts and tops will sit in line with key competitors such as Jack Wolfskin, The North Face, and
Patagonia.
71
PRICING ARCHITECTURE
MEN’S COLLECTION WOMEN’S COLLECTION
BASIC BASIC
MEDIUM MEDIUM
PEAKPEAK
This pricing architecture visually shows the entry and exit prices for the Timberland Ascent Collection. Outdoor coats
with specialised materials have the highest price point as they are the most expensive to produce and are the essence
of the collection. At the lower end of the scale is small accessories such as hats and t-shirts.
ENTRY ENTRY
EXIT EXIT£540 £320
£18£20
£145 £120
HILBURY
CARA
LEAHTOMMY
KNOX
STORM
72
PRICE BAND MATRIX
MEN’S COLLECTION
WOMEN’S COLLECTION
ENTRY PRICE EXIT PRICEMID PRICE
£600£0 £300 £400 £500£200£100
This chart highlights the lead-in, mid point, and exit prices
for the Timberland Ascent collection.
As previously mentioned, prices will sit in line with
key competitors and will be set to match consumer
expectations as established from primary research. This
research has shown that men are more likely to spend
more on an item than women, especially on long lasting,
durable piece such as a winter coat. "If it was something
that I would wear a lot and had to cope with all weather
conditions then I would definitely spend more money on it."
To target a wider set of the market, prices will start
at as little as £15 for a hat and will reach up to £550 for
premium coat. Research has shown that up to 42% of male
consumers would spend up to £500 for a coat that had
specialist materials and 34% of women up to £300 max.
(Based on a survey of 100 people)
73
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75
2.4. PLACE
76
DISTRIBUTION STRATEGY
CONSUMER CONSUMER CONSUMER
RETAILER RETAILER
WHOLESALER
The collection will be distributed to
existing Timberland stores across the UK.
A large portion of the collection will be
allocated through Timberland’s top-stores
in London, including their Regent Street
flagship, and popular shopping centres
such as Bluewater and The Bullring. The
rest of the collection will be allocated to
the remaining stores listed on the right
with 20% of the collection being sold
online.
Timberland Ascent will share an exclusive
wholesale account with Ellis Brigham who
will stock the collection in 10 of their top
performing stores.
= TOP STORE
77
STOCKISTS
REGENT STREET FLAGSHIP
144 Regent Street
London
W1B 5SQ
WESTFIELD LONDON
Westfield Shopping Centre
Ariel Way, Unit 2141-2143
London
W12 7GF
WESTFIELD STRATFORD
Westfield Stratford City
2 Montfichet Road
Olympic Park
London
W15 2JU
BRENT CROSS
Brent Cross Shopping Centre
Price Charles Drive
London
NW4 3FP
KINGSTON
The Bentall Centre
Wood Street
Kingston Upon Thames
KT1 1PT
MANCHESTER
Trafford Centre
48 Peel Avenue (Service Yard 4)
Lancashire, Manchester
M17 8AA
YORK
87 Low Petergate
York
Y01 7HY
LIVERPOOL
The Met Quarter
34 Whitechapel Unit 27
Liverpool
L1 6DA
BATH
Southgate Shopping Centre
Bath
BA1 1AP
BLUEWATER
Unit L126, Lower Guild Hall
Bluewater
Greenhithe
DA9 9SN
GLASGOW
91 Buchanan Street
Glasgow
G1 3HF
BELFAST
Unit 2 Capital House
Upper Queen Street
Belfast
BT1 6LS
DUBLIN
31 South Anne Street
Dublin 2
IE
SELFRIDGES CONCESSION
Selfridges
400 Oxford Street
London
W1A 1AB
WHOLESALE ACCOUNT
ELLIS BRIGHAM
(10 UK Stores)
E-TAIL:
Timberland.co.uk
READING
The Oracle Shopping Centre, Unit 2
17 Kings Road
Reading
RG1 2AG
MILTON KEYNES
Intu Milton Keynes
47 Midsummer Place
Buckinghamshire
MK9 3GB
CAMBRIDGE
4 Petty Cury
Cambridge
CB2 3NE
BIRMINGHAM
Midlands Bullring Centre
BSU2 Upper Level
Birmingham
B5 4BG
SHEFFIELD
Meadowhill Shopping Centre
61 High Street
Sheffield
S9 1EN
78
OMNI-CHANNEL RETAILING
Timberland stores across the UK, including the Regent Street Flagship store in
London, concessions in leading department stores, partnerships with climbing
walls across the country, and e-tail options create the ultimate omni-channel
experience.
Consumers are able to access the brand through a number of different platforms
which will increase brand awareness and drive sales.
79
FLAGSHIPS
Timberland’s flagship store on Regent Street, London has recently gone through
a great transformation, the re-designed store employs cutting-edge design to
remind customers of the brand’s history and even includes a timeline feature
on one of the walls.
This is a great store to showcase the Ascent Collection and it will offer the full
range in a wide range of sizes and limited edition colours.
80
CONCESSION
Timberland will introduce a new concession in Selfridges on Oxford Street to increase brand awareness and
promote the exclusivity of the brand. The Ascent collection will be a predominant feature with products from
the top end of the pricing architecture available to buy in-store. Ascent campaign images will also be part of
the concession visual display to promote the new range.
81
CLIMBING WALLS
Timberland Ascent will create partnerships with a number of UK climbing walls, including: The Arch Climbing
Wall (Bermondsey, London), Boulder Brighton (Brighton), Craggy Island (Sutton and Guildford), White Spider
(Tolworth), and Nottingham Climbing Centre (Nottingham). These partnerships will help to increase brand
awareness and build respect for the new brand amongst the climbing community. For the first week of
launch, these locations will offer a 10% discount on apparel for members of the centre.
Having the range available in climbing centres will generate sales directly from the targeted market.
82
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83
MENHOME > > COATS AND JACKETSASCENT >
ASCENT DOWN JACKET
HYVENT WATERPROOF TECHNOLOGY
£140
JUST LANDED
ICON
ASCENT
MEN
COATS AND JACKETS
MID LAYERS
BASE LAYERS
TROUSERS AND SHORTS
COATS AND JACKETS
MID LAYERS
BASE LAYERS
TROUSERS AND SHORTS
WOMEN
ACCESSORIES
HATS, GLOVES AND SCARVES
PACKS AND CHALK BAGS
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85
2.5. POSITION
86
PRICE STYLE MATRIX
Competitors for Timberland range from well known global brands such as The North Face and
Patagonia, to smaller brands such as PrAna. These brands specialise in the outdoor industry and
have a particular focus on rock climbing and mountaineering within their product offering and
branding. They are relatively high priced due to the performance technology in their products,
however still appeal to their target consumers.
The Price Style Matrix on the right demonstrates Timberland Ascent’s positioning within the market.
The collection will sit alongside brands such as The North Face and Jack Wolfskin with the product
aiming to be more fashion forward than the likes of Patagonia and PrAna.
87
PRICE HIGH
PRICE LOW
FASHIONCLASSIC
88
PRICE BAND MATRIX
The North Face and Patagonia have very similar price points for their products, they both
produce highly technical clothing and the prices of these items reflect this. Their technical
clothing goes up to over £500 however they also offer casual apparel which although is
much cheaper than their exit price, it is still expensive to casual high street retailers. Both
brands sell cheap accessories such as socks, hats, and scarves at a much lower price
point to make it accessible to a wider range of consumers.
Jack Wolfskin clothing is slightly more affordable than the likes of The North Face or
Patagonia as they are a newer company, only established in 1981. The North Face and
Patagonia produce highly techincal clothing for extreme sports including mountaineering
and skiing. These three brands have relatively high price points and sit at the upper end of
the high street. Like The North Face and Patagonia, Jack Wolfskin offer small accessories
at a lower price points to attract a wider range of consumers and to persuade add on sales.
PrAna are the lowest price of these competitors however this is because they produce a
limited amount of technical clothing as they focus on climbing in warmer climates and
yoga.
89
£570£12.99 £200
£550£15 £220
£325£120£8
£150£85£15
ENTRY PRICE EXIT PRICEMID PRICE
90
The North Face brand was established in 1968, in Sanfrancisco
by Kenneth Hap Klop and Douglas Tompkins. The two had
founded a climbing equipment store in 1966 which they
renamed two years later. The idea of The North Face originated
after a hiking trip on the Eagle Mountain in Minnesota. The
north face of a mountain in the northern hemisphere is
generally the coldest, iciest and most formidable route to
climb.
To start, the store only offered highly selected merchandise
targeted to climbers and backpackers. By the 1980s, skiwear
was added, followed by camping equipment.
Today, The North Face is a wholly owned subsidiary of the VF
Corporation. - (The North Face, 2015)
Patagonia is a clothing company, focused mainly around
high-end outdoor clothing. The company’s roots are in
clothing for rock and alpine climbing, originally producing
climbing equipment under the name Chouinard Equipment
(now known as Black Diamond Equipment). In the 1970’s they
started selling clothing; today they now offer a diverse mix
of apparel targeted towards climbers, skiers, surfers, and
others. - (Patagonia, 2015)
Though Patagonia is considered to be a sport-specific
apparel manufacturer, some of the company’s most popular
products are general apparel. Patagonia fleeces, rain jackets,
and coats are some of the most widely-worn products in the
outdoor apparel industry.
91
"Jack Wolfskin is a German-based producer of outdoor wear
and equipment that was founded in 1981 and is now owned by
the American company The Blackstone Group. The company
claims to be one of the biggest suppliers of outdoor products
and at the same time most successful franchiser in the
German specialist trade market of sports equipment. Their
products include mountain and leisure clothing, footwear,
rucksacks, sleeping bags, and tents.
Thebrandispopularnotonlyamonghikersandmountaineers
but predominantly worn in everyday situations; Jack Wolfskin
clothes and accessories are fashionable amongst urban
Germans Wilderness chic." - (Jack Wolfskin, Wikipedia, 2015)
PrAna is a premium clothing company offering sustainable
apparel for yoga, climbing and outdoor lifestyle enthusiasts. It
was founded in 1992 by Beaver Theodosakis and his wife Pam
who started prAna in their garage in Carlsbad, California.
They sewed the first pieces themselves and labelled them
with tags from homemade recycled paper. The clothes were
originally shipped in fruit boxes they gathered from the local
grocery store. - (Prana, 2015)
Columbia Sportswear Company have purchased PrAna for a
$190 Million Cash Transaction in late 2014. - (Columbia, 2014)
92
COMPETITOR EVALUATION
Looking into the key competitors that Timberland Ascent will face, it is clear
that although they are all extremely successful, they still face a number of
problems. These range from being too accessible, to not accessible enough,
not being fashion forward especially in their womenswear departments, and
being too expensive. This provides opportunity for a new brand to fill the gap,
offering fashion forward outdoor-wear at a considered price point.
For a detailed evaluation on these competitors, please see Appendix 6.
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95
2.6. PROMOTION
96
LOGO DEVELOPMENT
Primary research has shown that consumers already have a great awareness of the current Timberland
logo and feel that it represents the brand well. It was initially questioned whether a secondary logo for
the Ascent collection was necessary. Further research established that consumers felt a new logo that
related to the Ascent concept which still kept the essence of the Timberland brand would be a great
way to entice both new and existing customers to the collection.
After researching famous brand logos and other outdoor retailers, the logo for Timberland Ascent was
created. The core structure of Timberland’s existing logo, including the tree and iconic colour was
retained and mountains were added to bear relevance to the collection.
97
INTEGRATED MARKETING STRATEGY
Timberland Ascent will send out a consistent brand message across both traditional and non-traditional
marketing platforms and will use different promotional methods to reinforce each other. These will
include a number of channels including; digital marketing, public relations, visual merchandising, and
brand ambassadors. For more details, please see the Integrated Marketing Strategy Pack.
98
BRAND DNA PYRAMID
The Brand DNA Pyramid to the right makes evident the key
associations that certify the brand.
99
ESSENCE
POSITIONING
PHYSICAL BENEFITS
ATTRIBUTES
EMOTIONAL BENEFITS
VALUES
PERSONALITY
What is the brands USP?
Why the benefits are true
What are the key ingredients?
What Timberland does for the consumer
It makes them...
What Timberland gives the consumer
It makes them feel...
What the Timberland consumer believes in
Who is the Timberland consumer?
Who do they aspire to be like?
Premium, Quality, Innovative, Durable, Enduring and
Functional Products
"Our mission is to equip people to make a difference in their world. We do this
by creating outstanding products and by trying to make a difference in the
communities where we live and work while doing it." - Timberland
High Quality
Sustainable
Responsibly Sourced
Tested
Durable and Functional
Protected
Warm
Flexible
Confident
Confident
Strong
Achievement
Quality
Performance
Success
Innovation
Active
Daring
Adventurous
Explorers
100
SWING TICKETS
ASCENT
TIMBERLAND
MEN’S STORM JACKET WITH HYVENT
WATERPROOF TECHNOLOGY
SIZE MEDIUM
CHARCOAL GREY
PRICE: £540
OUT
FOR AN
ADVENTURE
Fabric Description: Nylon plain weave
Fabric Composition: 100% nylon
Outershell Description: Hyvent®
waterproof technology lamination
Centre Back Length: 27"
Lightweight waterproof
Funnel neck
2 waterproof front pockets
ASCENT
101
ASCENT
www.timberland.co.uk/ascent
PACKAGING
ASCENT
www.timberland.co.uk/ascent
www.tim
berland.co.uk/ascent
102
LABELLING
Each product in the Ascent collection will have branded buttons, zips, and labels. Each label
is individual to the item with care instructions and fabrics listed in detail. These additional
details show that the product is an original Timberland Ascent piece and highlights the quality
and design of each item.
103
By Timberland
T
IMBER
LAND
ASCE
NT
CARE INSTRUCTIONS
Close zipper before wash
Machine wash cold
Wash separately
Only non-chlorine bleach when needed Tumble
dry low Cool iron when needed
Do not iron trim and decoration
Do not dry clean
Fabric Composition: 100% nylon
Outershell Description: Hyvent® waterproof
technology lamination
104
EXPERIENTIAL RETAILING
To stand out amongst their competitors, experiential retailing is key for Timberland.
In-store shopping is enhanced with interactive interfaces where consumer can
browse online for products that may not be in stock, virtually try on items, and
interact with social media. Bespoke laser cutting machines are a key feature
allowing consumers to personalise their goods, all of which come together to create
a unique experience for each individual consumer.
105
CONCESSIONS
Timberland’s concession design will match that of existing stores, wood
flooring, brick walls, and black metal fixtures. Ascent campaign images will
also be an integral part of displays to promote the new sub-brand.
106
VISUAL MERCHANDISING
Visual merchandising in existing Timberland stores and Timberland
concessions will incorporate a climbing theme throughout. Climbing
equipment will be used in creative ways around the shop with ropes and
quickdraw used for displays and to hang items of clothing. Fixtures will also
include wooden and black metal materials to give a rustic and heritage feel,
linking to the current theme of Timberland stores.
107
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The Timberland Ascent collection will be sold through the existing website under a new
sub-section. Upon the first two weeks of the launch, it will be featured on the home page
of the website and customers will be able to click through to it instantly.
108
DIGITAL CAMPAIGNS
ASCENT
To promote the launch of Timberland Ascent, digital billboards around towns and cities across the UK
will feature aspirational images of climbers with the Ascent logo in the corner of the ad. The idea is to
catch the eye of passers by and make them question what brand the advertisement is for. These ads will
also be featured on the London Underground, buses, bus stations, and overground train stations. These
will be seen daily by commuters, tourists, and many passers by.
109
PR ACTIVITY
ASCENT
ASCENT
Timberland Ascent will use PR to create brand awareness and generate sales. This will include events, free
gifts to customers when they purchase goods and, celebrity gifting. They will also have online and in-store
competitions to generate brand interest. Apparel will be given to professional climbers for free to help promote
the new range to potential consumers. Timberland Ascent will also support charities such as Climbers Against
Cancer and will support climbing wall charity events to help generate a good brand image. They will be present at
UK trade shows such as the Outdoor Adventure and Travel Show to make other outdoor retailers and consumers
aware of their new sub-brand.
110
TARGET MEDIA
Although the Timberland Ascent is predominantly aimed at the outdoor consumer, it may also
follow the likes of other outdoor brands such as The North Face and Canada Goose which have
become popular fashion pieces. Therefore print campaigns will be targeted to a range of male and
female magazines including fashion magazines, climbing specific publications, health magazines,
and free supplements such as The Evening Standard magazine, Shortlist, and Stylist.
111
112
BRAND AMBASSADORS
Research has shown that consumers would be more likely to buy into a brand if a well known climber
was associated. They wanted these ambassadors to have a say throughout the design process as they
are more likely to know what consumers want, as in theory, they are the consumer.
Brand Ambassadors for Timberland Ascent include:
Leah Crane
Shauna Coxsey
Tommy Caldwell
Kevin Jorgeson
For more information, please see Integrated Marketing Pack.
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114
MEN’S PRINT CAMPAIGNS
To the right is an example of one of the men’s print campaigns which will be featured
in a number of UK magazines, this helps the brand reach a wider audience and become
respected within the outdoor and fashion industry.
Research has shown that men pay more attention to campaigns that are shocking and
inspirational as they are eye catching and captivating to the viewer. This particular
campaign image features brand ambassadors Tommy Caldwell and Kevin Jorgeson on
their legendary ascent of El Capitan’s Dawn Wall.
115
ASCENT
116
WOMEN’S PRINT CAMPAIGNS
To the right is an example of one of the women’s print campaigns which will be featured in a
number of UK magazines, this helps the brand reach a wider audience and become respected
within the outdoor and fashion industry.
The main concept of the women’s print campaign is to show that women are just as strong
as men and it sets out to inspire other women who perhaps have never tried climbing before.
117
ASCENT
118
SOCIAL MEDIA
119
Social media will be a predominant feature within the
marketing strategy of Timberland Ascent. Research has
shown that almost all consumers (90%) access at least
one social network more than once a day, and feel that it is
a good way to interact with brands they ‘like’ and ‘follow’.
Campaign images will be shared on a variety of social
platforms such as Instagram and Facebook. Lifestyle
images will also be used to connect with consumers on a
personal level.
With the rise of viral videos, video marketing will be a
predominant feature on all platforms with sneak peaks
into Timberland’s feature documentary and more.
120
FILM CAMPAIGN
#MYASCENT
EXCLUSIVE VIDEO
As part of the main marketing strategy for the Ascent launch, Timberland have partnered with a number of climbers
and film makers to come up with a feature length documentary. This film includes accounts of some of the most
difficult climbs in the world with the world’s best climbers. Sneak previews and trailers will be released on the
Timberland website during the run up to launch and the film fully released online the day of launch.
121
LAUNCH EVENT
#MYASCENT
EXCLUSIVE VIDEO
Timberland will host a special launch event at their flagship store on Regent Street. Industry professionals
will be invited along with brand ambassadors, famous climbers, press, climbing wall members, and existing
Timberland customers.
The event will include an exclusive screening of the ‘My Ascent’ documentary, the day before it is made public on
the Timberland website. A special competition including an in-store climbing wall will also be a feature point for
guests to win product from the collection. Drinks, canapés, a live DJ, and a free gift.
122
MY ASCENT APP
My Ascent
My Ascent
Running alongside the launch of the collection will be
the ‘My Ascent’ app. This will be a free app available to
all smart phone users. Mobile technology, especially
mobile marketing is now essential to any brand and
by having their own specialised app puts Timberland
ahead of their competitors.
The app appeals to both the casual consumer who
wants to look at the latest collections and the active
climber who can track their progress and read featured
new stories.
For more information on the ‘My Ascent’ App, please
refer to the Integrated Marketing Pack.
123
My Ascent
INTRODUCING TIMBERLAND
ASCENT
ENTER
My Ascent
MY ASCENT
Create Account
E-mail
Password
My Ascent
AW16/17 LOOKBOOK
MY ASCENT
FEATURED
124
125
2.7. PERSUASION
126
BRANDING DESIGN AMBASSADORS	 QUALITY
Persuasion will be achieved through each of the key headings above. Having a consistent brand image will make it recognisable to consumers and each design will
be unique to Timberland Ascent providing consumers with style and function, something that has been a key focus from the findings of primary research. Brand
ambassadors will be a key form of persuasion as consumers look up to and relate to these figures, they trust them and therefore will trust the brands they associate
themselves with. Quality is an important factor for Timberland Ascent, especially the company started out producing equipment which must be of the best quality, and
the new apparel range will be no different.
127
SUSTAINABILITY ETHICS INNOVATION ASPIRATION
Research has shown that consumers are willing to spend more on a quality product especially if it is sustainable. The outdoor market puts a lot of effort into protecting
the environment their consumers explore, therefore sustainability along with good working ethics will convince consumers to buy into the Ascent brand. Innovation is
key for outdoor brands, consumers want the latest when it comes to technical fabrics and design. Timberland Ascent will use specialised Hyvent technology, Gore-Tex,
and 100% traceable goose down in their products. One of the main persuasion features for Timberland Ascent is their own consumer’s aspiration. They aspire to achieve
and want to own the best gear and clothing to help them along the way.
128
129
3. BUSINESS PLAN
130
ESTIMATED SALES
YEAR 1
£6,498,876
YEAR 2
£18,550,263
TOTAL ESTIMATED
SALES
OVER 2 YEARS
£25,049,139
The estimated sales for Timberland Ascent have been worked out
by estimating the number of products sold per-item-per-week, (as
researched through existing brands sales of product) multiplied by
the amount of stockists, multiplied by the number of weeks in-store.
This has been based on the AW16/17 range running through 16 weeks
as seen in Appendix 3, 4, & 5. The figure above are based on sales
over 16 months as the collection does not launch until September
2016.
It is estimated that the SS17 range will generate higher sales as it is
a longer selling season. The largest proportion of sales is predicted
to come from the men’s collection, followed by women’s, and lastly
accessories. 20% of sales will come from online.
MEN’S
£14,338,821
WOMEN’S
£8,382,638
131
ESTIMATED MANUFACTURING COST
YEAR 1
£5,952,749
YEAR 2
£5,952,768
TOTAL ESTIMATED
COST
OVER 2 YEARS
£11,905,517
Manufacturing costs for Timberland Ascent are estimated to be
the same, if not similar over the first two years. The collection will
not launch until September 2016, therefore the range will still be
generating brand awareness throughout 2017. Depending on the
success of Timberland Ascent in the UK, it is proposed that the
range will become available first in the US, and then other regions
after three years. Manufacturing costs will then rise as more stock
will need to be produced and distribution costs will grow.
RAW
MATERIALS
DISTRIBUTION WAGES &
SALARIES
ADMIN
COSTS
PATENTS &
LICENSING
132
INTAKE MARGIN
AVERAGE MARGIN
69%
MEN’S RANGE
69%
WOMEN’S RANGE
66%
ACCESSORIES
71%
133
MARKETING COST
YEAR 1
£3,122,300
YEAR 2
£904,550
TOTAL COST
OVER 2 YEARS
£4,026,850
MY ASCENT
APP
DIGITAL
MARKETING
PRINT MEDIA
CAMPAIGNS
BRAND
AMBASSADORS
CONSUMER
EVENTS SPONSORSHIP
ASCENT
WEBSITE
Marketing is a fundamental investment for Timberland Ascent, it
is important to generate strong brand awareness and brand image
to persuade consumers to buy the product and therefore generate
sales. The key promotion costs include The My Ascent App, Digital
Marketing, and Print Media Campaigns, these costs are broken
down fully in Appendix 2.
£12,500 £37,250 £332,000 £1,483,000 £220,000 £29,000 £42,000
(INCLUDING DATA ANALYSIS)
- See Appendix 3
134
CAPITAL INVESTMENT
YEAR 1
£9,075,049
YEAR 2
£6,857,318
TOTAL NEEDED
OVER 2 YEARS
£15,932,367
The total capital investment required for this venture is £15,932,367
(calculated over 2 years). This includes both manufacturing and
marketing costs as laid out in Appendix 2.
135
$971,895,000
CASH & EQUIVALENTS
Timberland is solely owned by the VF Corporation,
a company who own over 30 brands specialising in
Outdoor & Action Sports, Jeanswear, Imagewear,
Sportswear and Contemporary Brands. In 2014 their
total sales revenue exceeded $12bn. Timberland is one
of the corporation’s best performing brands with sales
reaching $1.7bn in 2013, and projected to hit $3bn by the
end of 2019. - (VF Corporation, Full Year Results, 2014)
The VF Corporation’s full year results (see appendix for
details) shows that the company have $971,895,000
in cash and equivalents. This alongside strong
performance year on year, and the amount of money
they contribute to investments suggests that they
would fund this project solely through their own means.
136
PROJECTED PROFIT/LOSS
YEAR 1 PROFIT
£-3,304,485
YEAR 2 PROFIT
£11,692,945
TOTAL PROFIT
£8,388,460
Taking into account total manufacturing and marketing costs, the
total projected profit for Timberland Ascent after the first two years
(16 months of trading) is just over £8.3million. This is a reasonable
profit considering the high marketing costs associated with the
launch and only trading for 4 months in the first year. This is a figure
that will increase further as the Ascent range gains more awareness,
moves into new territories, and continues to produce innovative,
high quality products.
By generating press around the Timberland brand and drawing
more customers into their stores, Timberland as a whole may also
see increased profits as a result of the Ascent launch.
137
138
139
4. SWOT ANALYSIS
140
STRENGTHS
- Timberland is a well-known and trusted brand
- Research has proven there is a demand for this endeavour
- The range will be fashion forward as well as functional
- There is a rise in the targeted age group of 25-34-year-olds
- It is priced alongside competitors
- High quality products
- A focus on sustainability and ethics will persuade consumers to buy
- Great brand ambassadors
- Strong integrated marketing and PR strategies
141
WEAKNESSES
- High distribution costs transporting product from the manufacturers to the UK
- Not being produced in the UK
- Climbing is a very niche market
- It will only launch in the UK for the first 2 years
- It will be expensive to make the product sustainable and ethical
- It takes away merchandising space away from existing Timberland product
- High marketing costs
- Timberland have not manufactured clothing products of this nature before
- Lead times will be long as product is coming from abroad
142
OPPORTUNITIES
- Creating a sub-brand will create higher sales revenue
- Making it available in more UK stores
- Expansion into the global marketplace if it is successful in the UK
- Attracting a wider range of consumers to the brand
- If climbing becomes an Olympic sport sales may rise
- The popularity of climbing increasing
- Making a childrenswear range
- Sponsoring more athletes and events
- Partnerships with climbing equipment companies
143
THREATS
- Competitors such as The North Face, Jack Wolfskin, and Patagonia
- Not having direct mountaineering/climbing experience
- Distribution not being delivered on time
- The changing exchange rates
- The economic climate changing with another potential recession
- Cost of manufacturing rising as countries become more developed
- Web survers going down during busy periods
- Consumers not liking the product
- If demand grows too quickly supplies will not be able to keep up
disappointing consumers
144
145
5. CONCLUSION
146
Timberland Ascent has the potential to become a leading brand in outdoorwear. The product
and the ethics behind it is the heart of the brand, the collection has been meticulously
designed to meet consumer needs and, to top it off, looks good. Issues of sustainability,
the environment, and worker ethics have become increasingly important in the fashion
industry, especially in recent years. This will continue to be paramount when designing
future collections. Timberland Ascent understand that these issues are important to their
consumers who care about the world in which they explore, and put them at the forefront
when creating their product. This ensures that they sit alongside competitors such as
Patagonia, who are known in the outdoor industry for their commitment to the environment,
and with strong marketing campaigns, Timberland Ascent has the opportunity to challenge
these brands.
A strong marketing campaign is crucial for the success of this venture and Timberland
has covered all areas. From digital marketing, PR, print campaigns, and inspiring brand
ambassadors, Timberland Ascent have created a strong integrated marketing strategy that
is sure to entice consumers, and will build respect amongst existing players in the outdoor
market. This marketing however comes at a high cost and is a risk if sales are not as high
as anticipated. Opposing this is that advertising could create a surge in demand for product
and Timberland factories may not have the capacity to keep up with orders and distributing
product on time.
If successful in the UK, Timberland Ascent has great prospect to expand into other markets,
such as the US and Asia, where they already have a strong brand following. As the brand
achieves popularity there is opportunity for collaborations, charity involvements and
expanding the product offering. As the popularity of climbing increases and the potential
for it to become an Olympic sport, Timberland Ascent has a heightened chance of being a
notable, go-to climbing brand.
147
148
149
BIBLIOGRAPHY
150
151
For list of illustartion please see separate book.
Columbia (2014) ‘Columbia Sportswear Company Completes Acquisition of prAna Lifestyle Apparel Brand’ [online] at http://investor.columbia.com/releasedetail.
cfm?ReleaseID=851790 (Accessed on 4/03/15)
Jack Wolfskin (2015) ‘Jack Wolfskin’ [online] at www.jack-wolfskin.co.uk (Accessed on 4/03/15)
LS:N Global, (2009) ‘Nu Trekkers’ in LS:N Global [online] at https://www.lsnglobal.com/tribes/article/4061/ nu-trekkers (Accessed on 24/02/15)
LS:N Global, (2014) ‘The New Value Seekers’ in LS:N Global [online] at https://www-lsnglobal-com.ucreative.idm.oclc.org/tribes/article/16565/the-new-value-seekers (Ac-
cessed on 24/02/15)
LS:N Global, (2014) ‘Athena Woman’ in LS:N Global [online] at https://www-lsnglobal-com.ucreative.idm.oclc.org/tribes/article/8319/athena-woman (Accessed on
24/02/15)
Mintel. (2014) ‘Consumers and the Economic Outlook: Quarterly Update - UK - October 2014’ [online] at http:// academic.mintel.com/display/720990/ (Accessed
on 24/02/15)
Mintel. (2015) ‘Consumers and the Economic Outlook: Quarterly Update - UK - February 2015’ [online] at http://academic.mintel.com.ucreative.idm.oclc.org/dis-
play/715686/ (Accessed on 24/02/15)
Mintel. (2014) ‘Menswear – UK - March 2014’ [online] at http://academic.mintel.com/display/679715/ (Accessed on 24/02/15)
Mintel (2014) ‘Womenswear – UK - May 2014’ [online] at http://academic.mintel.com/display/679833/ (Accessed on 24/02/15)
Patagonia (2015) ‘Patagonia’ [online] at www.patagonia.co.uk (Accessed on 24/02/15)
Prana (2015) ‘Prana’ [online] at www.prana.com (Accessed on 24/02/15)
The North Face (2014) ‘The North Face’ [online] at www.thenorthface.com (Accessed on 24/02/15)
Taunton Leisure (2015) ‘The North Face Hyvent’ [online] at http://www.tauntonleisure.com/the-north-face-hyvent/f76?ca1=276&sc1=8&br1=10&p=2 (Accessed on
18/03/15)
Timberland, (2015) ‘Timberland Responsibility’ [online] at http://responsibility.timberland.com (Accessed on 9/03/15)
Timberland, (2015) ‘Timberland’ [online] at http://www.timberlandonline.co.uk (Accessed on 9/03/15)
VF Corporation. (2015) ‘VF Reports 2014 Fourth Quarter and Full Year Results; Announces Outlook for 2015’ [online] at http://www.vfc.com/news/press-releases?n-
ws_id=0EF80514-889E-6030-E053-A740E3EA6030 (Accessed on 12/03/15)
VF Corporation. (2014) ‘VF CORPORATION 2013 ANNUAL REPORT PDF’ [online] at http://reporting.vfc.com/2014/ (Accessed on 12/03/15)
Wikipedia. (2015) ‘Jack Wolfskin’ [online] at http://en.wikipedia.org/wiki/Jack_Wolfskin (Accessed on 24/02/15)
152
153
APPENDICES
154
APPENDIX 1:VF CORPORATION FULL YEAR RESULTS
155
156
Month
Manufacturing Costs
Total Marketing Costs
Sales Revenue
Profit / Loss
Website
Social Media
Campaign Launch
New Logo Design
Print Media Campaign
Sponsorships
Data Analysis
My Ascent App
Direct Marketing
Visual Merchandising
Feature Documentary
Brand Ambassadors
Consumer Events
Digital Marketing
Total Mktg Costs
Capital Investment
Profit / Loss
LAUNCH MARKETING BUSINESS PLAN (Year 1)
MarketingCosts
Jan Feb March April May
0 541,159 541,159 541,159 541,159
0 0 11,000 14,500 13,500
0 0 0 0 0
0 -541,159 -552,159 -555,659 -554,659
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 1,000 0
0 0 1,000 1,000 1,000
0 0 0 0 0
0 0 0 2,500 2,500
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 10,000 10,000 10,000
0 0 0 0 0
0 0 0 0 0
0 0 11,000 14,500 13,500
£9,075,049.0
-£3,304,485.0
LAUNCH MARKETING BUSINESS PLAN (Year 1)
June July August Sept Oct
541,159 541,159 541,159 541,159 541,159
114,500 272,000 1,067,450 1,058,700 295,250
0 0 0 1,694,850 1,593,150
-655,659 -813,159 -1,608,609 94,991 756,741
0 2,500 2,500 2,500 1,000
0 0 200 200 0
0 0 500,000 500,000 0
0 0 0 0 0
1,000 250,000 500,000 500,000 250,000
0 0 2,000 2,000 2,000
1,000 1,000
2,500 2,500 2,500 2,500 1,000
0 0 250 500 250
0 1,000 20,000 0 0
100,000 5,000 0 0 0
10,000 10,000 10,000 10,000 10,000
0 0 0 10,000 0
1,000 1,000 30,000 30,000 30,000
114,500 272,000 1,067,450 1,058,700 295,250
LAUNCH MARKETING BUSINESS PLAN (Year 1)
Nov Dec Totals
541,159 541,159 5,952,749
132,950 146,950 3,122,300
1,523,401 1,687,475 6,498,876
849,292 999,366 -3,304,485
500 500 9,500
200 200 800
2,000 2,000 1,004,000
0 0 1,000
100,000 100,000 1,704,000
2,000 2,000 10,000
1,000 1,000 4,000
1,000 1,000 18,000
250 250 1,500
1,000 10,000 32,000
0 0 100,500
10,000 10,000 100,000
0 5,000 15,000
15,000 15,000 122,000
132,950 146,950 3,122,300
LAUNCH MARKETING BUSINESS PLAN (Year 1)
APPENDIX 2:LAUNCH MARKETING BUSINESS PLAN
157
Month
Manufacturing Costs
Total Marketing Costs
Sales Revenue
Profit / Loss
Website
Social Media
Campaign Launch
New Logo Design
Print Media Campaign
Sponsorships
Data Analysis
My Ascent App
Direct Marketing
Visual Merchandising
Feature Documentary
Brand Ambassadors
Consumer Events
Digital Marketing
Total Mktg Costs
Capital Investment
Profit / Loss
LAUNCH MARKETING BUSINESS PLAN (Year 2)
MarketingCosts
Jan Feb March April May
496,064 496,064 496,064 496,064 496,064
130,200 38,850 33,850 28,850 30,850
1,695,320 1,496,582 1,500,145 1,534,125 1,495,345
1,069,056 961,668 970,231 1,009,211 968,431
250 250 250 250 250
200 100 100 100 100
0 0 0 0 0
0 0 0 0
100,000 0 0 0 0
2,000 2,000 2,000 2,000 2,000
1,000 1,000 1,000 1,000 1,000
500 250 250 250 250
250 250 250 250 250
1,000 10,000 0 0 0
0 0 0 0 0
10,000 10,000 10,000 10,000 10,000
0 0 5,000 0 2,000
15,000 15,000 15,000 15,000 15,000
130,200 38,850 33,850 28,850 30,850
£6,857,318.0
£11,692,945.0
LAUNCH MARKETING BUSINESS PLAN (Year 2)
June July August Sept Oct
496,064 496,064 496,064 496,064 496,064
29,850 30,850 316,850 43,850 29,850
1,540,074 1,500,222 1,581,092 1,532,150 1,489,125
1,014,160 973,308 768,178 992,236 963,211
250 250 250 250 250
100 100 100 100 100
0 0 0 0 0
0 0 0 0 0
1,000 1,000 250,000 0 1,000
2,000 2,000 10,000 2,000 2,000
1,000 1,000 1,000 1,000 1,000
250 250 250 250 250
250 250 250 250 250
0 1,000 10,000 0 0
0 0 0 0 0
10,000 10,000 10,000 10,000 10,000
0 0 5,000 0 0
15,000 15,000 30,000 30,000 15,000
29,850 30,850 316,850 43,850 29,850
LAUNCH MARKETING BUSINESS PLAN (Year 2)
Nov Dec Totals
496,064 496,064 5,952,768
29,850 160,850 904,550
1,497,083 1,689,000 18,550,263
971,169 1,032,086 11,692,945
250 250 3,000
100 100 1,300
0 0 0
0 0 0
1,000 125,000 479,000
2,000 2,000 32,000
1,000 1,000 12,000
250 250 3,250
250 250 3,000
0 5,000 27,000
0 0 0
10,000 10,000 120,000
0 2,000 14,000
15,000 15,000 210,000
29,850 160,850 904,550
LAUNCH MARKETING BUSINESS PLAN (Year 2)
158
Range Plan for Timberland Ascent
STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total
£ Cost achieved quantity Cost Margin
STORM GREY £540.00 £173.80 67.81% 550 £95,590.00 £297,000.00 67.81%
BLUE £540.00 £173.80 67.81% 400 £69,520.00 £216,000.00 67.81%
SANDERS YELLOW £480.00 £159.40 66.79% 500 £79,700.00 £240,000.00 66.79%
RED £480.00 £159.40 66.79% 500 £79,700.00 £240,000.00 66.79%
KNOX GREY £145.00 £52.30 63.93% 1110 £58,053.00 £160,950.00 63.93%
BLUE £145.00 £52.30 63.93% 800 £41,840.00 £116,000.00 63.93%
YELLOW £145.00 £52.30 63.93% 500 £26,150.00 £72,500.00 63.93%
CRAG RED £100.00 £32.50 67.50% 1300 £42,250.00 £130,000.00 67.50%
BLUE £100.00 £32.50 67.50% 1300 £42,250.00 £130,000.00 67.50%
BOSTON GREY £85.00 £18.90 77.76% 1600 £30,240.00 £136,000.00 77.76%
RED £85.00 £18.90 77.76% 1600 £30,240.00 £136,000.00 77.76%
Total Retail
APPENDIX 3:ASCENT MEN’S CAD RANGE PLAN
159
STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total
£ Cost achieved quantity Cost Margin
KENNEDY RED CHECK £60.00 £16.20 73.00% 2000 £32,400.00 £120,000.00 73.00%
BLUE CHECK £60.00 £16.20 73.00% 2000 £32,400.00 £120,000.00 73.00%
CHANCE YELLOW £55.00 £17.40 68.36% 500 £8,700.00 £27,500.00 68.36%
RED £55.00 £17.40 68.36% 1100 £19,140.00 £60,500.00 68.36%
BLUE £55.00 £17.40 68.36% 1100 £19,140.00 £60,500.00 68.36%
CONWAY RED £40.00 £12.00 70.00% 2200 £26,400.00 £88,000.00 70.00%
BLUE £40.00 £12.00 70.00% 2200 £26,400.00 £88,000.00 70.00%
CARTER GREY £80.00 £21.50 73.13% 1700 £36,550.00 £136,000.00 73.13%
BLUE £80.00 £21.50 73.13% 1600 £34,400.00 £128,000.00 73.13%
SWIFT GREY £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20%
RED £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20%
BLUE £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20%
SPENCER GREY £40.00 £13.90 65.25% 1100 £15,290.00 £44,000.00 65.25%
Total Retail
BOLT GREY £30.00 £10.40 65.33% 1100 £11,440.00 £33,000.00 65.33%
160
BOLT GREY £30.00 £10.40 65.33% 1100 £11,440.00 £33,000.00 65.33%
ALPINE RED £170.00 £52.60 69.06% 300 £15,780.00 £51,000.00 69.06%
PARAMOUNT GREY £85.00 £26.70 68.59% 1200 £32,040.00 £102,000.00 68.59%
RED £85.00 £26.70 68.59% 1200 £32,040.00 £102,000.00 68.59%
TREKKER BLUE £70.00 £21.50 69.29% 1200 £25,800.00 £84,000.00 69.29%
YELLOW £70.00 £21.50 69.29% 800 £17,200.00 £56,000.00 69.29%
TOTAL £3,995.00 £1,269.60 69.39% 37,460 £1,017,853.00 £3,324,950.00 69.39%
161
Range Plan for Timberland Ascent
STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total
£ Cost achieved quantity Cost Margin
HILBURY PURPLE £320.00 £111.80 65.06% 800 £89,440.00 £256,000.00 65.06%
JOSEPHINE OFF WHITE £270.00 £98.40 63.56% 800 £78,720.00 £216,000.00 63.56%
RED £270.00 £98.40 63.56% 500 £49,200.00 £135,000.00 63.56%
CARA OFF WHITE £120.00 £41.20 65.67% 1200 £49,440.00 £144,000.00 65.67%
RED £120.00 £41.20 65.67% 1200 £49,440.00 £144,000.00 65.67%
NATALIE RED £70.00 £21.50 69.29% 550 £11,825.00 £38,500.00 69.29%
PURPLE £70.00 £21.50 69.29% 550 £11,825.00 £38,500.00 69.29%
FLOW GREY £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27%
RED £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27%
OFF WHITE £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27%
Total Retail
APPENDIX 4:ASCENT WOMEN’S CAD RANGE PLAN
162
STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total
£ Cost achieved quantity Cost Margin
ESME GREY £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00%
RED £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00%
OFF WHITE £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00%
KRISTIN GREY £45.00 £17.40 61.33% 550 £9,570.00 £24,750.00 61.33%
PURPLE £45.00 £17.40 61.33% 550 £9,570.00 £24,750.00 61.33%
CLEO RED CHECK £50.00 £14.00 72.00% 1100 £15,400.00 £55,000.00 72.00%
PURPLE CHECK £50.00 £14.00 72.00% 1100 £15,400.00 £55,000.00 72.00%
FAYE GREY £70.00 £22.50 67.86% 850 £19,125.00 £59,500.00 67.86%
OFF WHITE £70.00 £22.50 67.86% 850 £19,125.00 £59,500.00 67.86%
MIA OFF WHITE £65.00 £20.90 67.85% 1000 £20,900.00 £65,000.00 67.85%
WITH PRINT
GEORIGIA GREY £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27%
Total Retail
OFF WHITE £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27%
BARTON GREY £35.00 £12.40 64.57% 1100 £13,640.00 £38,500.00 64.57%
163
OFF WHITE £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27%
BARTON GREY £35.00 £12.40 64.57% 1100 £13,640.00 £38,500.00 64.57%
ALPINE RED £190.00 £64.10 66.26% 280 £17,948.00 £53,200.00 66.26%
TREKKER GREY £75.00 £26.70 64.40% 1000 £26,700.00 £75,000.00 64.40%
RED £75.00 £26.70 64.40% 1000 £26,700.00 £75,000.00 64.40%
PARAMOUNT GREY £80.00 £25.50 68.13% 1000 £25,500.00 £80,000.00 68.13%
OFF WHITE £80.00 £25.50 68.13% 1000 £25,500.00 £80,000.00 68.13%
TOTAL £2,516.00 £853.60 66.19% 24,380 £657,108.00 £1,943,800.00 66.19%
164
Range Plan for Timberland Ascent
STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total
£ Cost achieved quantity Cost Margin
YOSEMITE BLUE £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21%
RED £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21%
GREY £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21%
ORIGINAL PURPLE £85.00 £23.90 71.88% 600 £14,340.00 £51,000.00 71.88%
RED £85.00 £23.90 71.88% 800 £19,120.00 £68,000.00 71.88%
GREY £85.00 £23.90 71.88% 1000 £23,900.00 £85,000.00 71.88%
VENTURE YELLOW £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50%
PURPLE £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50%
RED £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50%
TOMMY BLUE £20.00 £5.40 73.00% 1000 £5,400.00 £20,000.00 73.00%
GREY £20.00 £5.40 73.00% 1200 £6,480.00 £24,000.00 73.00%
LEAH PURPLE £18.00 £5.10 71.67% 1000 £5,100.00 £18,000.00 71.67%
RED £18.00 £5.10 71.67% 1000 £5,100.00 £18,000.00 71.67%
Total Retail
STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total
£ Cost achieved quantity Cost Margin
TOTAL £826.00 £241.20 70.98% 10,950 £156,660.00 £539,750.00 70.98%
Total Retail
APPENDIX 5:ASCENT ACCESSORIES CAD RANGE PLAN
165
Looking into the key competitors that Timberland Ascent will face, it is clear that although they are all
extremely successful, they still face a number of problems. These range from being too accessible, to not
accessible enough, not being fashion forward especially in their womenswear departments, and being
too expensive. This provides opportunity for a new brand to fill the gap, offering fashion forward outdoor-
wear at a considered price point.
One thing they all excel in is their commitment to the environment. As retailers, which specialise in the
outdoor industry, it is important they do all they can to protect the world their customers love to explore.
This is something that will be a key focus for Timberland Ascent as it is highly respected amongst
consumers and is already an important factor within Timberland’s company culture. Being a sustainable
company isn’t cheap, however with current issues relating to global warming and other environmental
problems becoming an increasing concern in the world, it is important that any company setting out to
create new products recognise this.
Social media and marketing campaigns is an area where all of these competitors thrive, however with
the growing rate of technology and new social media platforms, they need to do all they can to keep up
the pace especially if they want to target younger consumers.
Timberland is already great example of a brand that has managed to attract a wider consumer through
clever marketing and celebrity endorsement, it is no longer just seen as an outdoor brand but a key
player in the fashion market place. Although this has been extremely successful and the new range can
take inspiration from this, they need to ensure they are respected as a quality outdoor retailer as well as
a successful fashion brand.
PrAnaisdefinitelyacompanytowatchoutforoverthecourseofthenextfewyears,theirrecentacquisition
from Columbia could increase their popularity and create a much stronger brand awareness throughout
the UK making them hot competition for Timberland Ascent.
APPENDIX 5:COMPETITOR EVALUATION

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BA (Hons) Fashion Management and Marketing - Final Major Project

  • 1. 1 BY TIMBERLAND ASCENT ILLUSTRATED MARKET REPORT EFMM 6003MAJOR PROJECT AND CAREER PLANNING GEMMA ROBYN THEOBALD 1200910
  • 2. 2
  • 3. 3 EXECUTIVE SUMMARY 5 INTRODUCTION 9 1. THE PROPOSAL 13 - COMPANY OVERVIEW 15 - OUTLINE OF NEW PRODUCT 19 - UNIQUE SELLING POINT 21 - ANSOFF MATRIX 23 2. THE MARKETING MIX 25 - PEOPLE 27 - DEMOGRAPHICS 28 - SPENDING POWER 29 - MARKETING TYPOLOGIES 30 - PSYCHOGRAPHIC PROFILE 35 - BUYING ATTITUDE 36 - TARGET MALE CONSUMER 38 - TARGET FEMALE CONSUMER 40 2.2. PRODUCT 43 - PRODUCT OVERVIEW 44 - MATERIALS 46 - DESIGN AND MANUFACTURE 48 - INSPIRATION 50 - PRODUCT CONCEPT 51 - MEN’S PRODUCT 52 - WOMEN’S PRODUCT 53 - CAD RANGE PLAN 54 - SOURCING 64 - SUSTAINABILITY 66 2.3. PRICE 69 - PRICING POLICY 70 - PRICING ARCHITECTURE 71 - PRICE BAND MATRIX 72 2.4. PLACE 75 - DISTRIBUTION STRATEGY 76 - STOCKISTS 77 - OMNI-CHANNEL RETAILING 78 - FLAGSHIPS 79 - CONCESSION 80 - CLIMBING WALLS 81 - E-TAIL 82 2.5. POSITION 85 - PRICE STYLE MATRIX 86 - PRICE BAND MATRIX 88 - COMPETITOR ANALYSIS 90 - COMPETITOR EVALUATION 92 2.6. PROMOTION 95 - LOGO DEVELOPMENT 96 - INTEGRATED MARKETING STRATEGY 97 - BRAND DNA PYRAMID 98 - SWING TICKETS 100 - PACKAGING 101 - LABELLING 102 - EXPERIENTIAL RETAILING 104 - CONCESSIONS 105 - VISUAL MERCHANDISING 106 - E-COMMERCE 107 - DIGITAL CAMPAIGNS 108 - PR ACTIVITY 109 - TARGET MEDIA 110 - BRAND AMBASSADORS 112 - MEN’S PRINT CAMPAIGNS 114 - WOMEN’S PRINT CAMPAIGNS 116 - SOCIAL MEDIA 118 - FILM CAMPAIGN 120 - LAUNCH EVENT 121 - MY ASCENT APP 122 2.7 PERSUASION 125 3. BUSINESS PLAN 129 - ESTIMATED SALES 130 - ESTIMATED MANUFACTURING COST 131 - INTAKE MARGIN 132 - MARKETING COST 133 - CAPITAL INVESTMENT 134 - PROJECTED PROFIT/LOSS 136 4. SWOT ANALYSIS 139 5. CONCLUSION 145 BIBLIOGRAPHY 149 APPENDICES 153
  • 4. 4
  • 6. 6
  • 7. 7 This report has been commissioned to detail the launch of a new sub-brand from outdoor retailer, Timberland. Primary research has shown that consumers no longer associate Timberland as an outdoor brand, rather just a fashion label like many others on the high street. Although extremely profitable and successful as a fashion brand, the company have lost some of their outdoor heritage along the way. "I used to love Timberland and bought many shoes and jackets from there, now it’s all a bit too fashion conscious and the quality doesn’t seem as good." To entice these consumers back, whilst still retaining the success of their new ventures within the fashion market place, Timberland Ascent was crafted. The sub brand will target people with a love for the outdoors, including rock climbers, trekkers, mountaineers, and even existing customers who can turn professional outdoor gear to trends seen on the streets of urban cities. This is a great opportunity for Timberland to capitalise on both the casual wearer and extreme climber. Timberland have strong knowledge of manufacturing apparel and operate a number of factories across the world, they are also a well known and respected brand in both the outdoor and fashion industry. This venture will help to increase both profits and brand awareness further. Primary research has shown that consumers are willing to spend more on a quality product especially if it is sustainable. The outdoor market puts a lot of effort into protecting the environment their consumers explore, therefore sustainability along with good working ethics will convince consumers to buy into the Ascent brand. Innovation is key for outdoor brands; consumers want the latest when it comes to technical fabrics and design. Timberland Ascent will use specialised Hyvent technology, Gore-Tex, and 100% traceable goose down in their products. The target consumer for Timberland Ascent is male and females between the ages of 25-34. Mintel predicts an 8% rise across this age group and consumer research shows that they have now become the main clothes shoppers with Mintel’s consumer research showing that 96% have purchased garments in the last 12 months, the highest rate of all age groups (Mintel, 2014). This suggests that it is the optimum time for Timberland to pursue this endeavour. As it is targeted to both men and women, the new product will cater need for both sexes keeping in mind the brand philosophy: "Our mission is to equip people to make a difference in their world." (Timberland, 2015) Timberland Ascent will send out a consistent brand message across both traditional and non-traditional marketing platforms and will use different promotional methods to reinforce each other. These will include a number of channels including; digital marketing, public relations, visual merchandising, and brand ambassadors, all detailed in this report.
  • 8. 8
  • 10. 10
  • 11. 11 The aim of this report is to justify why Timberland should introduce a new sub-brand specialising in rock climbing, trekking and mountaineering. Fundamental areas of research have been highlighted throughout the report with evidence coming from both primary and secondary research. Primary research included a variety of techniques; quantitative research was conducted in the form of questionnaires, (which were sent out online through social media, emails, and also printed to take to specific locations for consumers to complete) and qualitative research through interviews with industry experts, a small focus group, and store visits to existing Timberland stores and competitors. Secondary research was predominantly collated through Mintel, LSN: Global, and Timberland’s current website. This is extended research conducted over a two-month period following that of the initial research process to find a gap in the market. Research focused on the Timberland brand and what consumers wanted to see from the collection. Limitations to primary research included the small size of the focus group, lack of females interviewed compared to males, and, that the majority of climbers spoken to largely climbed at indoor walls rather than outside in extreme conditions. The quality of solid and published secondary research in some areas also proved difficult, as there are not many reports available explicitly for the outdoor industry. Accurate business planning was challenging due to the lack of sources that provided evidence of true manufacturing and marketing costs, therefore educated guesses had to be made resulting in a lack of genuine figures to the report. Further research can be found in the background research pack to support this proposal.
  • 12. 12
  • 15. 15 COMPANY OVERVIEW "Our mission is to equip people to make a difference in their world. We do this by creating outstanding products and by trying to make a difference in the communities where we live and work while doing it." - Timberland
  • 16. 16 60%revenue outside of the U.S. in 2013 $2.3Brevenue expected in 2017 300factories worldwide - The VF Corporation
  • 17. 17 Timberland, founded in 1952 by Nathan Swartz is a retail chain offering stylish, rugged apparel, footwear & accessories for men, women & children. It originated as an American manufacturer and retailer of specialised hiking boots. The brand introduced injection-molding technology to the footwear industry. This revolutionary technology fused soles to leather uppers without stitching, producing truly waterproof boots and shoes. Timberland became well-known in the 1980’s for its iconic Yellow Boot which is still popular today and a big fashion trend. In 1988 Timberland entered the men’s and women’s clothing and accessories market. Timberland was acquired by the VF Corporation in 2011. As of 2012, Timberland’s sales revenue reached $1.7 billion and is projected to increase to $3.1 billion by the end of 2019. (VF Corporation Full Year Results) $1.7 BILLION SALES REVENUE
  • 18. 18 85 34 18 stores in the U.S. stores in the UK stores in Canada "The Timberland brand has a rich history of designing and engineering some of the world’s most iconic footwear, apparel and accessories for the outdoor lifestyle. Yet the brand stands for more than New England ingenuity and great-looking, well-crafted, innovative products. It also stands for environmental and social responsibility, for being a caring corporate citizen and an engaging place to work — qualities that also make the brand a natural fit with VF." - The VF Corporation
  • 19. 19 OUTLINE OF NEW PRODUCT Primary research has shown that consumers no longer associate Timberland as an outdoor brand, rather just a fashion label like many others on the high street. Although extremely profitable and successful as a fashion brand, the company have lost some of their outdoor heritage along the way. "I used to love Timberland and bought many shoes and jackets from there, now it’s all a bit too fashion conscious and the quality doesn’t seem as good." Ascent proposes to entice these consumers back to the Timberland brand whilst still retaining the success of their new ventures within the fashion market place. The sub brand will target people with a love for the outdoors, including rock climbers, trekkers, mountaineers, and even existing customers who can turn professional outdoor gear to trends seen on the streets of urban cities. Quality is key when it comes to the collection, product will be made from highly technical fabrics, designed for practicality as well as style, and most of all, responsibly sourced.
  • 20. 20
  • 21. 21 UNIQUE SELLING POINT Timberland’s Ascent collection will be designed in-house by a team of experienced designers with the aid of outdoor professionals and brand ambassadors. Primary research has shown that customers are more likely to buy a product if someone they respected or admired was part of the design and manufacturing process. "If you had a well known climber on board it would definitely make me more likely to buy as they know first hand what you need and what works for the sport and conditions". FabricswillberesponsiblysourcedandclothingethicallymadeinsomeofTimberland’s existing factories with the ‘Accepted’ rating, this means "The factory has no serious safety, health, or labor issues and is certified to produce VF or related licensed products for 12 months, at which time an annual review is necessary to maintain an ‘Accepted’ rating (Timberland, 2015). More information regarding supplier sustainability and worker engagement can be found in the CAD Range and Sourcing pack.
  • 22. 22 ANSOFF MATRIX Timberland is already in the outdoor industry, however this is mainly for their footwear and in recent years their clothing range has become more casual and fashion forward. Therefore the Ascent range sits in the Product Development category of the Ansoff Matrix as pictured to the right.. Timberland have strong knowledge of manufacturing apparel and operate a number of factories across the world, they are also a well known and respected brand in both the outdoor and fashion industry. This is a great opportunity to increase both profits and brand awareness further.
  • 23. 23 NEW MARKET NEWPRODUCT EXISTING MARKET EXISTINGPRODUCT MARKET PENETRATION DIVERSIFICATION MARKET DEVELOPMENT PRODUCT DEVELOPMENT
  • 24. 24
  • 26. 26
  • 27. 27 PEOPLE Timberland Ascent’s target consumer sits within early Generation Y; these older millennials "have much greater freedom to adjust their spending to match their resources. Few have children or ageing parents to worry about, and even fewer have to service a mortgage taken out at the peak of the pre-crash housing boom."” - Mintel This lack of responsibility means that millenials are more likely to spend money on luxury items such as new clothes, an expensive meal, or book a holiday. Socialising is very important and many lead busy social lifestyles, all of which ties in with the concept of Timberland Ascent.
  • 28. 28 DEMOGRAPHICS 8.3% Males 25-34FEMales 25-34 7% 97% "Three in ten females are willing to spend more on well-made clothes that will last longer. Predicted fall in female unemployment will mean women have more disposable income to spend on clothes. Increase in male employment – The number of employed men is set to increase over the next five years and this will benefit the sector as those in full-time work are the most active shoppers." - Mintel 2014 25-34 year olds have become the main clothes shoppers, with Mintel’s consumer research showing that 96% have purchased garments in the last 12 months, the highest rate of all age groups. Amongst both sexes, this age group shows below-average interest in sales and special offers meaning that they are prepared to pay full price for clothes they like." - Mintel 2014 94%
  • 29. 29 SPENDING POWER Although youth unemployment is still relatively high, graduate salaries have fallen, and people are leaving university with an ever-growing level of debt. Millennials remain extremely positive about their financial situation, 33% of younger Millennials and 40% of older Millennials said that they were at least a little better off. It’s the only generation that, on balance, feels that their finances have improved over the last year. It shows that confidence is as much about an individual’s stage of life and their expectations as it is about the broader financial situation. - Mintel 2015 Taking this into careful consideration shows that this age group are likely to have increased spending power, they are confident with their financial situation, have less financial responsibility than their generation X counterpart (with many not yet having a mortgage or family to support), and socialising remains at the forefront of their lives.
  • 31. 31 NEW VALUE SEEKERS NU TREKKERS ATHENA WOMAN
  • 32. 32 "New Value Seekers are practical when it comes to shopping. They tend to buy when they need things, and prefer to shop online or go direct to a brand rather than shop at big box retailers. None of them are particularly aspirational when it comes to clothing – window-shopping barely exists in their worlds. ‘I don’t really go shopping any more,’ says Ai. Those who are more inclined to shop move easily between high and low fashion. H&M basics might be accompanied by casual designer clothing from Paul Smith or pieces from showrooms such as The News in SoHo, New York." - LSN Global NEW VALUE SEEKERS
  • 33. 33 NU TREKKERS "Seeking an outdoor escape from urban life, or simply re-engaging with the city through new activities, a new wave of hikers, walkers, bikers and marathon runners are trekking through life and seeking a challenge outside of their daily lives. Nu Trekkers, aged in their late 20s and early 30s, have grown out of social activities that revolve around drinking and partying. They are seeking a more meaningful hobby that will proactively improve their health and lifestyle. Traditional and longstanding brands are popular, along with newer names providing good quality, durable clothing and equipment for this consumer." - LSN Global
  • 34. 34 ATHENA WOMAN "Career success and increased spending power are giving rise to a new breed of highly educated, affluent and entrepreneurial woman. These women exude a positive ‘alpha’ spirit, which is empowering rather than aggressive, and collaborative rather than competitive. They seek new products and services that place emphasis on fitness, wellbeing, and mind-body strength to fuel their hectic lives and help them achieve their end goals. In this She-conomy, shrinking and pinking it will no longer suffice. Prepare yourself for the rise of the Athena woman. They are active women and feel more capable of achieving their goals when they know they look physically strong." - LSN Global
  • 35. 35 PSYCHOGRAPHIC PROFILE INNOVATORS EARLYADOPTERS EARLYMAJORITY LATEMAJORITY LAGGARDS 9% 21% 28%36% 6% NU TREKKERS NEW VALUE SEEKERSATHENA WOMAN The key marketing typologies that build up the Timberland Ascent consumer each adopt current trends at different times. The curve demonstrates the life cycle of fashion collections and how they dilute through each adopter. Most of the tribes fall into the early adopter category. This is due to their need for the latest technologies when it comes to outdoor and fitness, financial power, and social lifestyle. The Athena Women are quickest to embrace new trends as they are the most social network-savvy, have increased spending power, and love to shop online. Nu Trekkers are big spenders when it comes to purchasing outdoor gear, "traditional and longstanding brands are popular, along with newer names providing good quality, durable clothing and equipment." - LSN Global. The New Value Seekers are more practical when it comes to shopping, they only tend to buy things when they need them and are not heavily influenced by trends. "None of them are particularly aspirational when it comes to clothing – window- shopping barely exists in their worlds." - LSN Global. As a result of the trend adoption pattern, different items in the Ascent collection will appeal to different tribes.
  • 36. 36 BUYING ATTITUDE EMOTIONAL RATIONAL PATRONAGE Consumers will make an informed decision before buying the product. They will look into the quality, ethics, and price of the product before committing to buy. Consumers will create an emotional attachment to the product and brand, this is usually created through clever marketing strategies as consumers will aspire to create their own connections with Timberland Ascent. Existing consumers will continue to buy the brand out of loyalty and new consumers will be created due to the brands heritage and history as a trusted retailer.
  • 37. 37
  • 38. 38 Sam is 32 years old, he lives in Tunbridge Wells, Kent, less than an hours train journey into Central London. He works as a freelance videographer creating short documentaries and works as a cameraman for ITV. Travelling is a big part of his job which takes him across the world filming in many different locations each year. Sam is an avid climber, he climbs 3-4 times a week at his local indoor centre and loves to climb outdoors whenever he can depending on his work load, and the weather. Bowles Rocks, a popular outdoor climbing destination is just a 15 minute drive away from Sam’s three bedroom house which he shares with his fiancé, Jess. Sam takes pride in his fitness and appearance and leads a healthy lifestyle. He buys men’s grooming products and enjoys both shopping in stores and online. On the weekends he likes to have a drink at the local pub with his climbing friends or go out for meals with his fiancé. Money is spent on two activity filled holidays each year either skiing in the Alps, or climbing in different countries. He likes to buy clothing from brands such as Patagonia, All Saints, French Connection and Timberland. He buys all of his climbing equipment from DMM. TARGET MALE CONSUMER
  • 39. 39 "Style and fitness important to me, I like to buy from outdoor brands such as Patagonia and Timberland."
  • 40. 40 Katie is 26 years old, she lives in Elephant and Castle, London with her boyfriend Alex and works as a lifestyle journalist for InStyle magazine. Katie mainly climbs indoors as an alternative way of keeping fit rather than going to the gym. She is a member of The Arch Climbing Wall in Bermondsey and goes three times a week. Along with climbing, Katie also enjoys yoga and playing tennis. She loves going on short, active breaks to Center Parcs and goes on holiday abroad once a year. She has just booked a two week holiday to Thailand with her boyfriend. Katie sits within the C1 NRS social grade and tries to add to her savings each month. She likes to spend money on going out with friends, eating out, books, and clothes. She is fashion conscious and buys clothing from Whistles, French Connection, Tommy Hilfiger, and Cos. TARGET FEMALE CONSUMER
  • 41. 41 "I climb to keep fit and to socialise with friends, fashion is important to me and I tend to buy clothes at high street brands rather than outdoor brands. I feel that outdoor retailers are not fashion forward enough, especially in womenswear."
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  • 44. 44 PRODUCT OVERVIEW ‘Timberland Ascent’ will launch its first collection in Spring/Summer 2016. With a focus on trekking, climbing, and mountaineering, the product will be durable, breathable, flexible, and of high quality. The Timberland brand prides itself on being sustainable and ethical, this has continued to be of the upmost importance when developing the new range; not only this, as a recently popular fashion brand, style remains a vital part of the design process. Targeted to both men and women, the new product will cater need for both sexes keeping in mind the brand philosophy: "Our mission is to equip people to make a difference in their world."
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  • 46. 46 MATERIALS Fabrics in the Timebrland Ascent collection will first and foremost be responsibly sourced. Specialised materials with new technologies will be a vital part in the selection and production of fabrics. HyVent Tech, a waterproof material with breathable technology that utilises a polyurethane (PU) coating that consists of a tri-component, multi-layer formula for waterproof protection, moisture permeability and durability will be a key material used throughout the collection. (Taunton Leisure, 2014) 100% traceable goose down will also be used in product for unbeatable warmth and quality. Timberland also partners with Bluesign technologies which works at each step in the textile supply chain to approve chemicals, processes, materials and products that are safe for the environment, safe for workers and safe for the end customers. Other specialised materials including Gore-Tex and Thermoball will also be used throughout the Ascent collection. For more information, please see the CAD Range Plan and Sourcing pack.
  • 47. 47
  • 48. 48 DESIGN & MANUFACTURE Timberland’s Ascent collection will be designed in-house by a team of experienced designers with the aid of outdoor professionals and brand ambassadors. Primary research has shown that customers are more likely to buy a product if someone they respected or admired was part of the design and manufacturing process. "If you had a well known climber on board it would definitely make me more likely to buy as they know first hand what you need and what works for the sport and conditions". Clothing will be ethically made in some of Timberland’s existing factories with the ‘Accepted’ rating, this means "The factory has no serious safety, health, or labor issues and is certified to produce VF or related licensed products for 12 months, at which time an annual review is necessary to maintain an ‘Accepted’ rating.” - Timberland. More information regarding supplier sustainability and worker engagement can be found in the CAD Range Plan and Sourcing pack.
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  • 51. 51 PRODUCT CONCEPT Timberland’s Ascent collection aims to be a leader in outdoor apparel with the latest fabric technologies and design. Product will be practical and will suit an array of outdoor conditions. At Timberland we pride ourselves as an innovator of style as well as technology, therefore the Ascent collection will be both functional and stylish. Outdoorwear is becoming increasingly popular on the streets of urban cities, with many consumers purchasing specialised clothing to wear day-to-day. This is a great opportunity for Timberland to capitalise on both the casual wearer and extreme climber. Apparel will have a focus on the latest trends when it comes to colour and shape, this will make it stand out amongst its competitors and draw a range of customers into stores.
  • 54. 54 CAD RANGE PLAN The AW 16/17 range for Timberland Ascent has 36 lines, 15 for men, 15 for women, and 6 accessories. These products come in a selected range of colours to provide the consumer with options and is manufactured from high quality fabrics. For more information please see the CAD Range Plan and Sourcing Pack and Appendix.
  • 55. 55 MEN’S COLLECTION MEN’S SANDERS JACKET WITH HYVENT WATERPROOFTECHNOLOGY £480 MEN’S STORM JACKET WITH HYVENT WATERPROOF TECHNOLOGY £540 MEN’S KNOX GILET WITH HYVENT WATERPROOF TECHNOLOGY £145 MEN’S CRAG MID-LAYER JACKET WITH HYVENT WATERPROOF TECHNOLOGY £100
  • 56. 56 MEN’S CHANCE LAKE SHORT £55 MEN’S TREKKER LIGHTWEIGHT TROUSER £70 MEN’S PARAMOUNT TROUSER £170 MEN’S DUAL POINT ALPINE PANTS £85
  • 57. 57 MEN’S BOSTON CREW JUMPER £85 MEN’S KENNEDY OXFORD SHIRT £60 MEN’S CARTER FRONT POCKET HOODIE £80 MEN’S SWIFT CREW TEE £25
  • 58. 58 MEN’S CONWAY LONG SLEEVE TEE £40 MEN’S SPENCER BASELAYER TIGHTS £40 MEN’S BOLT BASELAYER TOP £30
  • 59. 59 WOMEN’S COLLECTION WOMEN’S HILBURY JACKET WITH HYVENT WATERPROOFTECHNOLOGY £320 WOMEN’S JOSEPHINE JACKET WITH HYVENT WATERPROOF TECHNOLOGY £270 WOMEN’S CARA GILET WITH HYVENT WATERPROOFTECHNOLOGY £120 WOMEN’S NATALIE JACKET WITH HYVENT WATERPROOF TECHNOLOGY £70
  • 60. 60 WOMEN’S FLOW VEST £22 WOMEN’S ESME CREW TEE £20 WOMEN’S KRISTIN LONG SLEEVE CREW TEE WITH FRONT POCKET £45 WOMEN’S CLEO SHIRT £50
  • 61. 61 WOMEN’S FAYE MERINO WOOL ROLL KNECK JUMPER £70 WOMEN’S MIA HIGH WAISTED LIGHT-WEIGHT SHORTS £65 WOMEN’S GEORGIA GOOSE DOWN SKIRT WITH HYVENT WATERPROOFTECHNOLOGY £110 WOMEN’S TREKKER LIGHTWEIGHT TROUSER £75
  • 62. 62 WOMEN’S BARTON BASELAYER TIGHTS £35 WOMEN’S PARAMOUNT TROUSER £80 WOMEN’S DUAL POINT ALPINE SUIT £190
  • 63. 63 ACCESSORIES TimberlandAscentwillalsohaveasmallrangeofaccessories, from large hiking rucksacks, to small chalk bags. These come in a range of colours that feature in both the men’s and women’s collection. For the full accessories collection, please see the CAD Range and Sourcing Pack.
  • 64. 64 SOURCING Fabrics will be responsibly sourced and clothing ethically made in some of Timberland’s existing factories that hold the ‘Accepted’ rating, this means "The factory has no serious safety, health, or labor issues and is certified to produce VF or related licensed products for 12 months, at which time an annual review is necessary to maintain an ‘Accepted’ rating. While Timberland owns and operates a factory in the Dominican Republic, the remaining manufacturing facilities where our products are made are owned by third-party contract manufacturers and suppliers. We don’t control the practices of factories that we don’t own, but we do insist they comply with our Global Compliance Principles. This helps to ensure that every facility creates high-quality products in a way that respects the environment and the human rights of the people who make them. Timberland products are therefore produced in approximately 375 factories per year, all factories may not have produced for the entire 12 months. As a result, Timberland has approximately 300 active factories (on average) at any given time. - (Timberland, 2015)
  • 65. 65
  • 66. 66 SUSTAINABILITY Timberland puts as much recycled content as possible into product design and works to ensure these choices are cost effective. As an outdoor brand, Timberland have always gone to great lengths to make gear that lasts for a long, long time. And because they value the outdoors, they strive to do it in a way that’s sustainable. Timberland encourage their product creation teams to choose environmentally-conscious materials like Green Rubber™ material made from recycled rubber that would otherwise go into landfills, recycled PET (the stuff plastic bottles are made of), and organic content. Add to all that craftsmanship and old-fashioned Yankee ingenuity and you’ve got Timberland’s product philosophy. Timberland use 78,3% of renewable, organic or recycled materials of all its footwear shipped and approximately 36,7% in its apparel for the year 2013. (Timberland, 2015)
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  • 70. 70 PRICING POLICY Market-orientated prices will be used to appeal to consumers, this means setting a price based upon analysis of competitors and research from Timberland’s target market. Premium pricing will be taken into account, (setting the price just above the competition) to establish the range as a high quality product with longevity. Prices will be similar to key competitors such as The North Face and Patagonia, as product will be on a similar technical level. The entry price for Timberland Ascent will sit at £15 for small accessories such as socks and hats with the exit price being as high as £550 for a coat. The average price of casual items such as shirts and tops will sit in line with key competitors such as Jack Wolfskin, The North Face, and Patagonia.
  • 71. 71 PRICING ARCHITECTURE MEN’S COLLECTION WOMEN’S COLLECTION BASIC BASIC MEDIUM MEDIUM PEAKPEAK This pricing architecture visually shows the entry and exit prices for the Timberland Ascent Collection. Outdoor coats with specialised materials have the highest price point as they are the most expensive to produce and are the essence of the collection. At the lower end of the scale is small accessories such as hats and t-shirts. ENTRY ENTRY EXIT EXIT£540 £320 £18£20 £145 £120 HILBURY CARA LEAHTOMMY KNOX STORM
  • 72. 72 PRICE BAND MATRIX MEN’S COLLECTION WOMEN’S COLLECTION ENTRY PRICE EXIT PRICEMID PRICE £600£0 £300 £400 £500£200£100 This chart highlights the lead-in, mid point, and exit prices for the Timberland Ascent collection. As previously mentioned, prices will sit in line with key competitors and will be set to match consumer expectations as established from primary research. This research has shown that men are more likely to spend more on an item than women, especially on long lasting, durable piece such as a winter coat. "If it was something that I would wear a lot and had to cope with all weather conditions then I would definitely spend more money on it." To target a wider set of the market, prices will start at as little as £15 for a hat and will reach up to £550 for premium coat. Research has shown that up to 42% of male consumers would spend up to £500 for a coat that had specialist materials and 34% of women up to £300 max. (Based on a survey of 100 people)
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  • 76. 76 DISTRIBUTION STRATEGY CONSUMER CONSUMER CONSUMER RETAILER RETAILER WHOLESALER The collection will be distributed to existing Timberland stores across the UK. A large portion of the collection will be allocated through Timberland’s top-stores in London, including their Regent Street flagship, and popular shopping centres such as Bluewater and The Bullring. The rest of the collection will be allocated to the remaining stores listed on the right with 20% of the collection being sold online. Timberland Ascent will share an exclusive wholesale account with Ellis Brigham who will stock the collection in 10 of their top performing stores. = TOP STORE
  • 77. 77 STOCKISTS REGENT STREET FLAGSHIP 144 Regent Street London W1B 5SQ WESTFIELD LONDON Westfield Shopping Centre Ariel Way, Unit 2141-2143 London W12 7GF WESTFIELD STRATFORD Westfield Stratford City 2 Montfichet Road Olympic Park London W15 2JU BRENT CROSS Brent Cross Shopping Centre Price Charles Drive London NW4 3FP KINGSTON The Bentall Centre Wood Street Kingston Upon Thames KT1 1PT MANCHESTER Trafford Centre 48 Peel Avenue (Service Yard 4) Lancashire, Manchester M17 8AA YORK 87 Low Petergate York Y01 7HY LIVERPOOL The Met Quarter 34 Whitechapel Unit 27 Liverpool L1 6DA BATH Southgate Shopping Centre Bath BA1 1AP BLUEWATER Unit L126, Lower Guild Hall Bluewater Greenhithe DA9 9SN GLASGOW 91 Buchanan Street Glasgow G1 3HF BELFAST Unit 2 Capital House Upper Queen Street Belfast BT1 6LS DUBLIN 31 South Anne Street Dublin 2 IE SELFRIDGES CONCESSION Selfridges 400 Oxford Street London W1A 1AB WHOLESALE ACCOUNT ELLIS BRIGHAM (10 UK Stores) E-TAIL: Timberland.co.uk READING The Oracle Shopping Centre, Unit 2 17 Kings Road Reading RG1 2AG MILTON KEYNES Intu Milton Keynes 47 Midsummer Place Buckinghamshire MK9 3GB CAMBRIDGE 4 Petty Cury Cambridge CB2 3NE BIRMINGHAM Midlands Bullring Centre BSU2 Upper Level Birmingham B5 4BG SHEFFIELD Meadowhill Shopping Centre 61 High Street Sheffield S9 1EN
  • 78. 78 OMNI-CHANNEL RETAILING Timberland stores across the UK, including the Regent Street Flagship store in London, concessions in leading department stores, partnerships with climbing walls across the country, and e-tail options create the ultimate omni-channel experience. Consumers are able to access the brand through a number of different platforms which will increase brand awareness and drive sales.
  • 79. 79 FLAGSHIPS Timberland’s flagship store on Regent Street, London has recently gone through a great transformation, the re-designed store employs cutting-edge design to remind customers of the brand’s history and even includes a timeline feature on one of the walls. This is a great store to showcase the Ascent Collection and it will offer the full range in a wide range of sizes and limited edition colours.
  • 80. 80 CONCESSION Timberland will introduce a new concession in Selfridges on Oxford Street to increase brand awareness and promote the exclusivity of the brand. The Ascent collection will be a predominant feature with products from the top end of the pricing architecture available to buy in-store. Ascent campaign images will also be part of the concession visual display to promote the new range.
  • 81. 81 CLIMBING WALLS Timberland Ascent will create partnerships with a number of UK climbing walls, including: The Arch Climbing Wall (Bermondsey, London), Boulder Brighton (Brighton), Craggy Island (Sutton and Guildford), White Spider (Tolworth), and Nottingham Climbing Centre (Nottingham). These partnerships will help to increase brand awareness and build respect for the new brand amongst the climbing community. For the first week of launch, these locations will offer a 10% discount on apparel for members of the centre. Having the range available in climbing centres will generate sales directly from the targeted market.
  • 82. 82 E-TAIL INTRODUCING TIMBERLAND JUST LANDED ICON MEN WOMEN KIDS ASCENT SALE BLOG SIGN IN MY ACCOUNT CUSTOMER SERVICES STORES NEWSLETTER SUBSCRIPTION ASCENT SHOP NOW
  • 83. 83 MENHOME > > COATS AND JACKETSASCENT > ASCENT DOWN JACKET HYVENT WATERPROOF TECHNOLOGY £140 JUST LANDED ICON ASCENT MEN COATS AND JACKETS MID LAYERS BASE LAYERS TROUSERS AND SHORTS COATS AND JACKETS MID LAYERS BASE LAYERS TROUSERS AND SHORTS WOMEN ACCESSORIES HATS, GLOVES AND SCARVES PACKS AND CHALK BAGS INTRODUCING TIMBERLAND ASCENT SHOP NOW FREE STANDARD DELIVERY AND RETURNS
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  • 86. 86 PRICE STYLE MATRIX Competitors for Timberland range from well known global brands such as The North Face and Patagonia, to smaller brands such as PrAna. These brands specialise in the outdoor industry and have a particular focus on rock climbing and mountaineering within their product offering and branding. They are relatively high priced due to the performance technology in their products, however still appeal to their target consumers. The Price Style Matrix on the right demonstrates Timberland Ascent’s positioning within the market. The collection will sit alongside brands such as The North Face and Jack Wolfskin with the product aiming to be more fashion forward than the likes of Patagonia and PrAna.
  • 88. 88 PRICE BAND MATRIX The North Face and Patagonia have very similar price points for their products, they both produce highly technical clothing and the prices of these items reflect this. Their technical clothing goes up to over £500 however they also offer casual apparel which although is much cheaper than their exit price, it is still expensive to casual high street retailers. Both brands sell cheap accessories such as socks, hats, and scarves at a much lower price point to make it accessible to a wider range of consumers. Jack Wolfskin clothing is slightly more affordable than the likes of The North Face or Patagonia as they are a newer company, only established in 1981. The North Face and Patagonia produce highly techincal clothing for extreme sports including mountaineering and skiing. These three brands have relatively high price points and sit at the upper end of the high street. Like The North Face and Patagonia, Jack Wolfskin offer small accessories at a lower price points to attract a wider range of consumers and to persuade add on sales. PrAna are the lowest price of these competitors however this is because they produce a limited amount of technical clothing as they focus on climbing in warmer climates and yoga.
  • 90. 90 The North Face brand was established in 1968, in Sanfrancisco by Kenneth Hap Klop and Douglas Tompkins. The two had founded a climbing equipment store in 1966 which they renamed two years later. The idea of The North Face originated after a hiking trip on the Eagle Mountain in Minnesota. The north face of a mountain in the northern hemisphere is generally the coldest, iciest and most formidable route to climb. To start, the store only offered highly selected merchandise targeted to climbers and backpackers. By the 1980s, skiwear was added, followed by camping equipment. Today, The North Face is a wholly owned subsidiary of the VF Corporation. - (The North Face, 2015) Patagonia is a clothing company, focused mainly around high-end outdoor clothing. The company’s roots are in clothing for rock and alpine climbing, originally producing climbing equipment under the name Chouinard Equipment (now known as Black Diamond Equipment). In the 1970’s they started selling clothing; today they now offer a diverse mix of apparel targeted towards climbers, skiers, surfers, and others. - (Patagonia, 2015) Though Patagonia is considered to be a sport-specific apparel manufacturer, some of the company’s most popular products are general apparel. Patagonia fleeces, rain jackets, and coats are some of the most widely-worn products in the outdoor apparel industry.
  • 91. 91 "Jack Wolfskin is a German-based producer of outdoor wear and equipment that was founded in 1981 and is now owned by the American company The Blackstone Group. The company claims to be one of the biggest suppliers of outdoor products and at the same time most successful franchiser in the German specialist trade market of sports equipment. Their products include mountain and leisure clothing, footwear, rucksacks, sleeping bags, and tents. Thebrandispopularnotonlyamonghikersandmountaineers but predominantly worn in everyday situations; Jack Wolfskin clothes and accessories are fashionable amongst urban Germans Wilderness chic." - (Jack Wolfskin, Wikipedia, 2015) PrAna is a premium clothing company offering sustainable apparel for yoga, climbing and outdoor lifestyle enthusiasts. It was founded in 1992 by Beaver Theodosakis and his wife Pam who started prAna in their garage in Carlsbad, California. They sewed the first pieces themselves and labelled them with tags from homemade recycled paper. The clothes were originally shipped in fruit boxes they gathered from the local grocery store. - (Prana, 2015) Columbia Sportswear Company have purchased PrAna for a $190 Million Cash Transaction in late 2014. - (Columbia, 2014)
  • 92. 92 COMPETITOR EVALUATION Looking into the key competitors that Timberland Ascent will face, it is clear that although they are all extremely successful, they still face a number of problems. These range from being too accessible, to not accessible enough, not being fashion forward especially in their womenswear departments, and being too expensive. This provides opportunity for a new brand to fill the gap, offering fashion forward outdoor-wear at a considered price point. For a detailed evaluation on these competitors, please see Appendix 6.
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  • 96. 96 LOGO DEVELOPMENT Primary research has shown that consumers already have a great awareness of the current Timberland logo and feel that it represents the brand well. It was initially questioned whether a secondary logo for the Ascent collection was necessary. Further research established that consumers felt a new logo that related to the Ascent concept which still kept the essence of the Timberland brand would be a great way to entice both new and existing customers to the collection. After researching famous brand logos and other outdoor retailers, the logo for Timberland Ascent was created. The core structure of Timberland’s existing logo, including the tree and iconic colour was retained and mountains were added to bear relevance to the collection.
  • 97. 97 INTEGRATED MARKETING STRATEGY Timberland Ascent will send out a consistent brand message across both traditional and non-traditional marketing platforms and will use different promotional methods to reinforce each other. These will include a number of channels including; digital marketing, public relations, visual merchandising, and brand ambassadors. For more details, please see the Integrated Marketing Strategy Pack.
  • 98. 98 BRAND DNA PYRAMID The Brand DNA Pyramid to the right makes evident the key associations that certify the brand.
  • 99. 99 ESSENCE POSITIONING PHYSICAL BENEFITS ATTRIBUTES EMOTIONAL BENEFITS VALUES PERSONALITY What is the brands USP? Why the benefits are true What are the key ingredients? What Timberland does for the consumer It makes them... What Timberland gives the consumer It makes them feel... What the Timberland consumer believes in Who is the Timberland consumer? Who do they aspire to be like? Premium, Quality, Innovative, Durable, Enduring and Functional Products "Our mission is to equip people to make a difference in their world. We do this by creating outstanding products and by trying to make a difference in the communities where we live and work while doing it." - Timberland High Quality Sustainable Responsibly Sourced Tested Durable and Functional Protected Warm Flexible Confident Confident Strong Achievement Quality Performance Success Innovation Active Daring Adventurous Explorers
  • 100. 100 SWING TICKETS ASCENT TIMBERLAND MEN’S STORM JACKET WITH HYVENT WATERPROOF TECHNOLOGY SIZE MEDIUM CHARCOAL GREY PRICE: £540 OUT FOR AN ADVENTURE Fabric Description: Nylon plain weave Fabric Composition: 100% nylon Outershell Description: Hyvent® waterproof technology lamination Centre Back Length: 27" Lightweight waterproof Funnel neck 2 waterproof front pockets ASCENT
  • 102. 102 LABELLING Each product in the Ascent collection will have branded buttons, zips, and labels. Each label is individual to the item with care instructions and fabrics listed in detail. These additional details show that the product is an original Timberland Ascent piece and highlights the quality and design of each item.
  • 103. 103 By Timberland T IMBER LAND ASCE NT CARE INSTRUCTIONS Close zipper before wash Machine wash cold Wash separately Only non-chlorine bleach when needed Tumble dry low Cool iron when needed Do not iron trim and decoration Do not dry clean Fabric Composition: 100% nylon Outershell Description: Hyvent® waterproof technology lamination
  • 104. 104 EXPERIENTIAL RETAILING To stand out amongst their competitors, experiential retailing is key for Timberland. In-store shopping is enhanced with interactive interfaces where consumer can browse online for products that may not be in stock, virtually try on items, and interact with social media. Bespoke laser cutting machines are a key feature allowing consumers to personalise their goods, all of which come together to create a unique experience for each individual consumer.
  • 105. 105 CONCESSIONS Timberland’s concession design will match that of existing stores, wood flooring, brick walls, and black metal fixtures. Ascent campaign images will also be an integral part of displays to promote the new sub-brand.
  • 106. 106 VISUAL MERCHANDISING Visual merchandising in existing Timberland stores and Timberland concessions will incorporate a climbing theme throughout. Climbing equipment will be used in creative ways around the shop with ropes and quickdraw used for displays and to hang items of clothing. Fixtures will also include wooden and black metal materials to give a rustic and heritage feel, linking to the current theme of Timberland stores.
  • 107. 107 E-COMMERCE INTRODUCING TIMBERLAND JUST LANDED ICON MEN WOMEN KIDS ASCENT SALE BLOG SIGN IN MY ACCOUNT CUSTOMER SERVICES STORES NEWSLETTER SUBSCRIPTION ASCENT SHOP NOW The Timberland Ascent collection will be sold through the existing website under a new sub-section. Upon the first two weeks of the launch, it will be featured on the home page of the website and customers will be able to click through to it instantly.
  • 108. 108 DIGITAL CAMPAIGNS ASCENT To promote the launch of Timberland Ascent, digital billboards around towns and cities across the UK will feature aspirational images of climbers with the Ascent logo in the corner of the ad. The idea is to catch the eye of passers by and make them question what brand the advertisement is for. These ads will also be featured on the London Underground, buses, bus stations, and overground train stations. These will be seen daily by commuters, tourists, and many passers by.
  • 109. 109 PR ACTIVITY ASCENT ASCENT Timberland Ascent will use PR to create brand awareness and generate sales. This will include events, free gifts to customers when they purchase goods and, celebrity gifting. They will also have online and in-store competitions to generate brand interest. Apparel will be given to professional climbers for free to help promote the new range to potential consumers. Timberland Ascent will also support charities such as Climbers Against Cancer and will support climbing wall charity events to help generate a good brand image. They will be present at UK trade shows such as the Outdoor Adventure and Travel Show to make other outdoor retailers and consumers aware of their new sub-brand.
  • 110. 110 TARGET MEDIA Although the Timberland Ascent is predominantly aimed at the outdoor consumer, it may also follow the likes of other outdoor brands such as The North Face and Canada Goose which have become popular fashion pieces. Therefore print campaigns will be targeted to a range of male and female magazines including fashion magazines, climbing specific publications, health magazines, and free supplements such as The Evening Standard magazine, Shortlist, and Stylist.
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  • 112. 112 BRAND AMBASSADORS Research has shown that consumers would be more likely to buy into a brand if a well known climber was associated. They wanted these ambassadors to have a say throughout the design process as they are more likely to know what consumers want, as in theory, they are the consumer. Brand Ambassadors for Timberland Ascent include: Leah Crane Shauna Coxsey Tommy Caldwell Kevin Jorgeson For more information, please see Integrated Marketing Pack.
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  • 114. 114 MEN’S PRINT CAMPAIGNS To the right is an example of one of the men’s print campaigns which will be featured in a number of UK magazines, this helps the brand reach a wider audience and become respected within the outdoor and fashion industry. Research has shown that men pay more attention to campaigns that are shocking and inspirational as they are eye catching and captivating to the viewer. This particular campaign image features brand ambassadors Tommy Caldwell and Kevin Jorgeson on their legendary ascent of El Capitan’s Dawn Wall.
  • 116. 116 WOMEN’S PRINT CAMPAIGNS To the right is an example of one of the women’s print campaigns which will be featured in a number of UK magazines, this helps the brand reach a wider audience and become respected within the outdoor and fashion industry. The main concept of the women’s print campaign is to show that women are just as strong as men and it sets out to inspire other women who perhaps have never tried climbing before.
  • 119. 119 Social media will be a predominant feature within the marketing strategy of Timberland Ascent. Research has shown that almost all consumers (90%) access at least one social network more than once a day, and feel that it is a good way to interact with brands they ‘like’ and ‘follow’. Campaign images will be shared on a variety of social platforms such as Instagram and Facebook. Lifestyle images will also be used to connect with consumers on a personal level. With the rise of viral videos, video marketing will be a predominant feature on all platforms with sneak peaks into Timberland’s feature documentary and more.
  • 120. 120 FILM CAMPAIGN #MYASCENT EXCLUSIVE VIDEO As part of the main marketing strategy for the Ascent launch, Timberland have partnered with a number of climbers and film makers to come up with a feature length documentary. This film includes accounts of some of the most difficult climbs in the world with the world’s best climbers. Sneak previews and trailers will be released on the Timberland website during the run up to launch and the film fully released online the day of launch.
  • 121. 121 LAUNCH EVENT #MYASCENT EXCLUSIVE VIDEO Timberland will host a special launch event at their flagship store on Regent Street. Industry professionals will be invited along with brand ambassadors, famous climbers, press, climbing wall members, and existing Timberland customers. The event will include an exclusive screening of the ‘My Ascent’ documentary, the day before it is made public on the Timberland website. A special competition including an in-store climbing wall will also be a feature point for guests to win product from the collection. Drinks, canapés, a live DJ, and a free gift.
  • 122. 122 MY ASCENT APP My Ascent My Ascent Running alongside the launch of the collection will be the ‘My Ascent’ app. This will be a free app available to all smart phone users. Mobile technology, especially mobile marketing is now essential to any brand and by having their own specialised app puts Timberland ahead of their competitors. The app appeals to both the casual consumer who wants to look at the latest collections and the active climber who can track their progress and read featured new stories. For more information on the ‘My Ascent’ App, please refer to the Integrated Marketing Pack.
  • 123. 123 My Ascent INTRODUCING TIMBERLAND ASCENT ENTER My Ascent MY ASCENT Create Account E-mail Password My Ascent AW16/17 LOOKBOOK MY ASCENT FEATURED
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  • 126. 126 BRANDING DESIGN AMBASSADORS QUALITY Persuasion will be achieved through each of the key headings above. Having a consistent brand image will make it recognisable to consumers and each design will be unique to Timberland Ascent providing consumers with style and function, something that has been a key focus from the findings of primary research. Brand ambassadors will be a key form of persuasion as consumers look up to and relate to these figures, they trust them and therefore will trust the brands they associate themselves with. Quality is an important factor for Timberland Ascent, especially the company started out producing equipment which must be of the best quality, and the new apparel range will be no different.
  • 127. 127 SUSTAINABILITY ETHICS INNOVATION ASPIRATION Research has shown that consumers are willing to spend more on a quality product especially if it is sustainable. The outdoor market puts a lot of effort into protecting the environment their consumers explore, therefore sustainability along with good working ethics will convince consumers to buy into the Ascent brand. Innovation is key for outdoor brands, consumers want the latest when it comes to technical fabrics and design. Timberland Ascent will use specialised Hyvent technology, Gore-Tex, and 100% traceable goose down in their products. One of the main persuasion features for Timberland Ascent is their own consumer’s aspiration. They aspire to achieve and want to own the best gear and clothing to help them along the way.
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  • 130. 130 ESTIMATED SALES YEAR 1 £6,498,876 YEAR 2 £18,550,263 TOTAL ESTIMATED SALES OVER 2 YEARS £25,049,139 The estimated sales for Timberland Ascent have been worked out by estimating the number of products sold per-item-per-week, (as researched through existing brands sales of product) multiplied by the amount of stockists, multiplied by the number of weeks in-store. This has been based on the AW16/17 range running through 16 weeks as seen in Appendix 3, 4, & 5. The figure above are based on sales over 16 months as the collection does not launch until September 2016. It is estimated that the SS17 range will generate higher sales as it is a longer selling season. The largest proportion of sales is predicted to come from the men’s collection, followed by women’s, and lastly accessories. 20% of sales will come from online. MEN’S £14,338,821 WOMEN’S £8,382,638
  • 131. 131 ESTIMATED MANUFACTURING COST YEAR 1 £5,952,749 YEAR 2 £5,952,768 TOTAL ESTIMATED COST OVER 2 YEARS £11,905,517 Manufacturing costs for Timberland Ascent are estimated to be the same, if not similar over the first two years. The collection will not launch until September 2016, therefore the range will still be generating brand awareness throughout 2017. Depending on the success of Timberland Ascent in the UK, it is proposed that the range will become available first in the US, and then other regions after three years. Manufacturing costs will then rise as more stock will need to be produced and distribution costs will grow. RAW MATERIALS DISTRIBUTION WAGES & SALARIES ADMIN COSTS PATENTS & LICENSING
  • 132. 132 INTAKE MARGIN AVERAGE MARGIN 69% MEN’S RANGE 69% WOMEN’S RANGE 66% ACCESSORIES 71%
  • 133. 133 MARKETING COST YEAR 1 £3,122,300 YEAR 2 £904,550 TOTAL COST OVER 2 YEARS £4,026,850 MY ASCENT APP DIGITAL MARKETING PRINT MEDIA CAMPAIGNS BRAND AMBASSADORS CONSUMER EVENTS SPONSORSHIP ASCENT WEBSITE Marketing is a fundamental investment for Timberland Ascent, it is important to generate strong brand awareness and brand image to persuade consumers to buy the product and therefore generate sales. The key promotion costs include The My Ascent App, Digital Marketing, and Print Media Campaigns, these costs are broken down fully in Appendix 2. £12,500 £37,250 £332,000 £1,483,000 £220,000 £29,000 £42,000 (INCLUDING DATA ANALYSIS) - See Appendix 3
  • 134. 134 CAPITAL INVESTMENT YEAR 1 £9,075,049 YEAR 2 £6,857,318 TOTAL NEEDED OVER 2 YEARS £15,932,367 The total capital investment required for this venture is £15,932,367 (calculated over 2 years). This includes both manufacturing and marketing costs as laid out in Appendix 2.
  • 135. 135 $971,895,000 CASH & EQUIVALENTS Timberland is solely owned by the VF Corporation, a company who own over 30 brands specialising in Outdoor & Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. In 2014 their total sales revenue exceeded $12bn. Timberland is one of the corporation’s best performing brands with sales reaching $1.7bn in 2013, and projected to hit $3bn by the end of 2019. - (VF Corporation, Full Year Results, 2014) The VF Corporation’s full year results (see appendix for details) shows that the company have $971,895,000 in cash and equivalents. This alongside strong performance year on year, and the amount of money they contribute to investments suggests that they would fund this project solely through their own means.
  • 136. 136 PROJECTED PROFIT/LOSS YEAR 1 PROFIT £-3,304,485 YEAR 2 PROFIT £11,692,945 TOTAL PROFIT £8,388,460 Taking into account total manufacturing and marketing costs, the total projected profit for Timberland Ascent after the first two years (16 months of trading) is just over £8.3million. This is a reasonable profit considering the high marketing costs associated with the launch and only trading for 4 months in the first year. This is a figure that will increase further as the Ascent range gains more awareness, moves into new territories, and continues to produce innovative, high quality products. By generating press around the Timberland brand and drawing more customers into their stores, Timberland as a whole may also see increased profits as a result of the Ascent launch.
  • 137. 137
  • 138. 138
  • 140. 140 STRENGTHS - Timberland is a well-known and trusted brand - Research has proven there is a demand for this endeavour - The range will be fashion forward as well as functional - There is a rise in the targeted age group of 25-34-year-olds - It is priced alongside competitors - High quality products - A focus on sustainability and ethics will persuade consumers to buy - Great brand ambassadors - Strong integrated marketing and PR strategies
  • 141. 141 WEAKNESSES - High distribution costs transporting product from the manufacturers to the UK - Not being produced in the UK - Climbing is a very niche market - It will only launch in the UK for the first 2 years - It will be expensive to make the product sustainable and ethical - It takes away merchandising space away from existing Timberland product - High marketing costs - Timberland have not manufactured clothing products of this nature before - Lead times will be long as product is coming from abroad
  • 142. 142 OPPORTUNITIES - Creating a sub-brand will create higher sales revenue - Making it available in more UK stores - Expansion into the global marketplace if it is successful in the UK - Attracting a wider range of consumers to the brand - If climbing becomes an Olympic sport sales may rise - The popularity of climbing increasing - Making a childrenswear range - Sponsoring more athletes and events - Partnerships with climbing equipment companies
  • 143. 143 THREATS - Competitors such as The North Face, Jack Wolfskin, and Patagonia - Not having direct mountaineering/climbing experience - Distribution not being delivered on time - The changing exchange rates - The economic climate changing with another potential recession - Cost of manufacturing rising as countries become more developed - Web survers going down during busy periods - Consumers not liking the product - If demand grows too quickly supplies will not be able to keep up disappointing consumers
  • 144. 144
  • 146. 146 Timberland Ascent has the potential to become a leading brand in outdoorwear. The product and the ethics behind it is the heart of the brand, the collection has been meticulously designed to meet consumer needs and, to top it off, looks good. Issues of sustainability, the environment, and worker ethics have become increasingly important in the fashion industry, especially in recent years. This will continue to be paramount when designing future collections. Timberland Ascent understand that these issues are important to their consumers who care about the world in which they explore, and put them at the forefront when creating their product. This ensures that they sit alongside competitors such as Patagonia, who are known in the outdoor industry for their commitment to the environment, and with strong marketing campaigns, Timberland Ascent has the opportunity to challenge these brands. A strong marketing campaign is crucial for the success of this venture and Timberland has covered all areas. From digital marketing, PR, print campaigns, and inspiring brand ambassadors, Timberland Ascent have created a strong integrated marketing strategy that is sure to entice consumers, and will build respect amongst existing players in the outdoor market. This marketing however comes at a high cost and is a risk if sales are not as high as anticipated. Opposing this is that advertising could create a surge in demand for product and Timberland factories may not have the capacity to keep up with orders and distributing product on time. If successful in the UK, Timberland Ascent has great prospect to expand into other markets, such as the US and Asia, where they already have a strong brand following. As the brand achieves popularity there is opportunity for collaborations, charity involvements and expanding the product offering. As the popularity of climbing increases and the potential for it to become an Olympic sport, Timberland Ascent has a heightened chance of being a notable, go-to climbing brand.
  • 147. 147
  • 148. 148
  • 150. 150
  • 151. 151 For list of illustartion please see separate book. Columbia (2014) ‘Columbia Sportswear Company Completes Acquisition of prAna Lifestyle Apparel Brand’ [online] at http://investor.columbia.com/releasedetail. cfm?ReleaseID=851790 (Accessed on 4/03/15) Jack Wolfskin (2015) ‘Jack Wolfskin’ [online] at www.jack-wolfskin.co.uk (Accessed on 4/03/15) LS:N Global, (2009) ‘Nu Trekkers’ in LS:N Global [online] at https://www.lsnglobal.com/tribes/article/4061/ nu-trekkers (Accessed on 24/02/15) LS:N Global, (2014) ‘The New Value Seekers’ in LS:N Global [online] at https://www-lsnglobal-com.ucreative.idm.oclc.org/tribes/article/16565/the-new-value-seekers (Ac- cessed on 24/02/15) LS:N Global, (2014) ‘Athena Woman’ in LS:N Global [online] at https://www-lsnglobal-com.ucreative.idm.oclc.org/tribes/article/8319/athena-woman (Accessed on 24/02/15) Mintel. (2014) ‘Consumers and the Economic Outlook: Quarterly Update - UK - October 2014’ [online] at http:// academic.mintel.com/display/720990/ (Accessed on 24/02/15) Mintel. (2015) ‘Consumers and the Economic Outlook: Quarterly Update - UK - February 2015’ [online] at http://academic.mintel.com.ucreative.idm.oclc.org/dis- play/715686/ (Accessed on 24/02/15) Mintel. (2014) ‘Menswear – UK - March 2014’ [online] at http://academic.mintel.com/display/679715/ (Accessed on 24/02/15) Mintel (2014) ‘Womenswear – UK - May 2014’ [online] at http://academic.mintel.com/display/679833/ (Accessed on 24/02/15) Patagonia (2015) ‘Patagonia’ [online] at www.patagonia.co.uk (Accessed on 24/02/15) Prana (2015) ‘Prana’ [online] at www.prana.com (Accessed on 24/02/15) The North Face (2014) ‘The North Face’ [online] at www.thenorthface.com (Accessed on 24/02/15) Taunton Leisure (2015) ‘The North Face Hyvent’ [online] at http://www.tauntonleisure.com/the-north-face-hyvent/f76?ca1=276&sc1=8&br1=10&p=2 (Accessed on 18/03/15) Timberland, (2015) ‘Timberland Responsibility’ [online] at http://responsibility.timberland.com (Accessed on 9/03/15) Timberland, (2015) ‘Timberland’ [online] at http://www.timberlandonline.co.uk (Accessed on 9/03/15) VF Corporation. (2015) ‘VF Reports 2014 Fourth Quarter and Full Year Results; Announces Outlook for 2015’ [online] at http://www.vfc.com/news/press-releases?n- ws_id=0EF80514-889E-6030-E053-A740E3EA6030 (Accessed on 12/03/15) VF Corporation. (2014) ‘VF CORPORATION 2013 ANNUAL REPORT PDF’ [online] at http://reporting.vfc.com/2014/ (Accessed on 12/03/15) Wikipedia. (2015) ‘Jack Wolfskin’ [online] at http://en.wikipedia.org/wiki/Jack_Wolfskin (Accessed on 24/02/15)
  • 152. 152
  • 154. 154 APPENDIX 1:VF CORPORATION FULL YEAR RESULTS
  • 155. 155
  • 156. 156 Month Manufacturing Costs Total Marketing Costs Sales Revenue Profit / Loss Website Social Media Campaign Launch New Logo Design Print Media Campaign Sponsorships Data Analysis My Ascent App Direct Marketing Visual Merchandising Feature Documentary Brand Ambassadors Consumer Events Digital Marketing Total Mktg Costs Capital Investment Profit / Loss LAUNCH MARKETING BUSINESS PLAN (Year 1) MarketingCosts Jan Feb March April May 0 541,159 541,159 541,159 541,159 0 0 11,000 14,500 13,500 0 0 0 0 0 0 -541,159 -552,159 -555,659 -554,659 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,000 0 0 0 1,000 1,000 1,000 0 0 0 0 0 0 0 0 2,500 2,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,000 10,000 10,000 0 0 0 0 0 0 0 0 0 0 0 0 11,000 14,500 13,500 £9,075,049.0 -£3,304,485.0 LAUNCH MARKETING BUSINESS PLAN (Year 1) June July August Sept Oct 541,159 541,159 541,159 541,159 541,159 114,500 272,000 1,067,450 1,058,700 295,250 0 0 0 1,694,850 1,593,150 -655,659 -813,159 -1,608,609 94,991 756,741 0 2,500 2,500 2,500 1,000 0 0 200 200 0 0 0 500,000 500,000 0 0 0 0 0 0 1,000 250,000 500,000 500,000 250,000 0 0 2,000 2,000 2,000 1,000 1,000 2,500 2,500 2,500 2,500 1,000 0 0 250 500 250 0 1,000 20,000 0 0 100,000 5,000 0 0 0 10,000 10,000 10,000 10,000 10,000 0 0 0 10,000 0 1,000 1,000 30,000 30,000 30,000 114,500 272,000 1,067,450 1,058,700 295,250 LAUNCH MARKETING BUSINESS PLAN (Year 1) Nov Dec Totals 541,159 541,159 5,952,749 132,950 146,950 3,122,300 1,523,401 1,687,475 6,498,876 849,292 999,366 -3,304,485 500 500 9,500 200 200 800 2,000 2,000 1,004,000 0 0 1,000 100,000 100,000 1,704,000 2,000 2,000 10,000 1,000 1,000 4,000 1,000 1,000 18,000 250 250 1,500 1,000 10,000 32,000 0 0 100,500 10,000 10,000 100,000 0 5,000 15,000 15,000 15,000 122,000 132,950 146,950 3,122,300 LAUNCH MARKETING BUSINESS PLAN (Year 1) APPENDIX 2:LAUNCH MARKETING BUSINESS PLAN
  • 157. 157 Month Manufacturing Costs Total Marketing Costs Sales Revenue Profit / Loss Website Social Media Campaign Launch New Logo Design Print Media Campaign Sponsorships Data Analysis My Ascent App Direct Marketing Visual Merchandising Feature Documentary Brand Ambassadors Consumer Events Digital Marketing Total Mktg Costs Capital Investment Profit / Loss LAUNCH MARKETING BUSINESS PLAN (Year 2) MarketingCosts Jan Feb March April May 496,064 496,064 496,064 496,064 496,064 130,200 38,850 33,850 28,850 30,850 1,695,320 1,496,582 1,500,145 1,534,125 1,495,345 1,069,056 961,668 970,231 1,009,211 968,431 250 250 250 250 250 200 100 100 100 100 0 0 0 0 0 0 0 0 0 100,000 0 0 0 0 2,000 2,000 2,000 2,000 2,000 1,000 1,000 1,000 1,000 1,000 500 250 250 250 250 250 250 250 250 250 1,000 10,000 0 0 0 0 0 0 0 0 10,000 10,000 10,000 10,000 10,000 0 0 5,000 0 2,000 15,000 15,000 15,000 15,000 15,000 130,200 38,850 33,850 28,850 30,850 £6,857,318.0 £11,692,945.0 LAUNCH MARKETING BUSINESS PLAN (Year 2) June July August Sept Oct 496,064 496,064 496,064 496,064 496,064 29,850 30,850 316,850 43,850 29,850 1,540,074 1,500,222 1,581,092 1,532,150 1,489,125 1,014,160 973,308 768,178 992,236 963,211 250 250 250 250 250 100 100 100 100 100 0 0 0 0 0 0 0 0 0 0 1,000 1,000 250,000 0 1,000 2,000 2,000 10,000 2,000 2,000 1,000 1,000 1,000 1,000 1,000 250 250 250 250 250 250 250 250 250 250 0 1,000 10,000 0 0 0 0 0 0 0 10,000 10,000 10,000 10,000 10,000 0 0 5,000 0 0 15,000 15,000 30,000 30,000 15,000 29,850 30,850 316,850 43,850 29,850 LAUNCH MARKETING BUSINESS PLAN (Year 2) Nov Dec Totals 496,064 496,064 5,952,768 29,850 160,850 904,550 1,497,083 1,689,000 18,550,263 971,169 1,032,086 11,692,945 250 250 3,000 100 100 1,300 0 0 0 0 0 0 1,000 125,000 479,000 2,000 2,000 32,000 1,000 1,000 12,000 250 250 3,250 250 250 3,000 0 5,000 27,000 0 0 0 10,000 10,000 120,000 0 2,000 14,000 15,000 15,000 210,000 29,850 160,850 904,550 LAUNCH MARKETING BUSINESS PLAN (Year 2)
  • 158. 158 Range Plan for Timberland Ascent STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total £ Cost achieved quantity Cost Margin STORM GREY £540.00 £173.80 67.81% 550 £95,590.00 £297,000.00 67.81% BLUE £540.00 £173.80 67.81% 400 £69,520.00 £216,000.00 67.81% SANDERS YELLOW £480.00 £159.40 66.79% 500 £79,700.00 £240,000.00 66.79% RED £480.00 £159.40 66.79% 500 £79,700.00 £240,000.00 66.79% KNOX GREY £145.00 £52.30 63.93% 1110 £58,053.00 £160,950.00 63.93% BLUE £145.00 £52.30 63.93% 800 £41,840.00 £116,000.00 63.93% YELLOW £145.00 £52.30 63.93% 500 £26,150.00 £72,500.00 63.93% CRAG RED £100.00 £32.50 67.50% 1300 £42,250.00 £130,000.00 67.50% BLUE £100.00 £32.50 67.50% 1300 £42,250.00 £130,000.00 67.50% BOSTON GREY £85.00 £18.90 77.76% 1600 £30,240.00 £136,000.00 77.76% RED £85.00 £18.90 77.76% 1600 £30,240.00 £136,000.00 77.76% Total Retail APPENDIX 3:ASCENT MEN’S CAD RANGE PLAN
  • 159. 159 STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total £ Cost achieved quantity Cost Margin KENNEDY RED CHECK £60.00 £16.20 73.00% 2000 £32,400.00 £120,000.00 73.00% BLUE CHECK £60.00 £16.20 73.00% 2000 £32,400.00 £120,000.00 73.00% CHANCE YELLOW £55.00 £17.40 68.36% 500 £8,700.00 £27,500.00 68.36% RED £55.00 £17.40 68.36% 1100 £19,140.00 £60,500.00 68.36% BLUE £55.00 £17.40 68.36% 1100 £19,140.00 £60,500.00 68.36% CONWAY RED £40.00 £12.00 70.00% 2200 £26,400.00 £88,000.00 70.00% BLUE £40.00 £12.00 70.00% 2200 £26,400.00 £88,000.00 70.00% CARTER GREY £80.00 £21.50 73.13% 1700 £36,550.00 £136,000.00 73.13% BLUE £80.00 £21.50 73.13% 1600 £34,400.00 £128,000.00 73.13% SWIFT GREY £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20% RED £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20% BLUE £25.00 £6.20 75.20% 2000 £12,400.00 £50,000.00 75.20% SPENCER GREY £40.00 £13.90 65.25% 1100 £15,290.00 £44,000.00 65.25% Total Retail BOLT GREY £30.00 £10.40 65.33% 1100 £11,440.00 £33,000.00 65.33%
  • 160. 160 BOLT GREY £30.00 £10.40 65.33% 1100 £11,440.00 £33,000.00 65.33% ALPINE RED £170.00 £52.60 69.06% 300 £15,780.00 £51,000.00 69.06% PARAMOUNT GREY £85.00 £26.70 68.59% 1200 £32,040.00 £102,000.00 68.59% RED £85.00 £26.70 68.59% 1200 £32,040.00 £102,000.00 68.59% TREKKER BLUE £70.00 £21.50 69.29% 1200 £25,800.00 £84,000.00 69.29% YELLOW £70.00 £21.50 69.29% 800 £17,200.00 £56,000.00 69.29% TOTAL £3,995.00 £1,269.60 69.39% 37,460 £1,017,853.00 £3,324,950.00 69.39%
  • 161. 161 Range Plan for Timberland Ascent STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total £ Cost achieved quantity Cost Margin HILBURY PURPLE £320.00 £111.80 65.06% 800 £89,440.00 £256,000.00 65.06% JOSEPHINE OFF WHITE £270.00 £98.40 63.56% 800 £78,720.00 £216,000.00 63.56% RED £270.00 £98.40 63.56% 500 £49,200.00 £135,000.00 63.56% CARA OFF WHITE £120.00 £41.20 65.67% 1200 £49,440.00 £144,000.00 65.67% RED £120.00 £41.20 65.67% 1200 £49,440.00 £144,000.00 65.67% NATALIE RED £70.00 £21.50 69.29% 550 £11,825.00 £38,500.00 69.29% PURPLE £70.00 £21.50 69.29% 550 £11,825.00 £38,500.00 69.29% FLOW GREY £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27% RED £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27% OFF WHITE £22.00 £7.20 67.27% 1100 £7,920.00 £24,200.00 67.27% Total Retail APPENDIX 4:ASCENT WOMEN’S CAD RANGE PLAN
  • 162. 162 STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total £ Cost achieved quantity Cost Margin ESME GREY £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00% RED £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00% OFF WHITE £20.00 £6.20 69.00% 1100 £6,820.00 £22,000.00 69.00% KRISTIN GREY £45.00 £17.40 61.33% 550 £9,570.00 £24,750.00 61.33% PURPLE £45.00 £17.40 61.33% 550 £9,570.00 £24,750.00 61.33% CLEO RED CHECK £50.00 £14.00 72.00% 1100 £15,400.00 £55,000.00 72.00% PURPLE CHECK £50.00 £14.00 72.00% 1100 £15,400.00 £55,000.00 72.00% FAYE GREY £70.00 £22.50 67.86% 850 £19,125.00 £59,500.00 67.86% OFF WHITE £70.00 £22.50 67.86% 850 £19,125.00 £59,500.00 67.86% MIA OFF WHITE £65.00 £20.90 67.85% 1000 £20,900.00 £65,000.00 67.85% WITH PRINT GEORIGIA GREY £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27% Total Retail OFF WHITE £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27% BARTON GREY £35.00 £12.40 64.57% 1100 £13,640.00 £38,500.00 64.57%
  • 163. 163 OFF WHITE £110.00 £34.90 68.27% 400 £13,960.00 £44,000.00 68.27% BARTON GREY £35.00 £12.40 64.57% 1100 £13,640.00 £38,500.00 64.57% ALPINE RED £190.00 £64.10 66.26% 280 £17,948.00 £53,200.00 66.26% TREKKER GREY £75.00 £26.70 64.40% 1000 £26,700.00 £75,000.00 64.40% RED £75.00 £26.70 64.40% 1000 £26,700.00 £75,000.00 64.40% PARAMOUNT GREY £80.00 £25.50 68.13% 1000 £25,500.00 £80,000.00 68.13% OFF WHITE £80.00 £25.50 68.13% 1000 £25,500.00 £80,000.00 68.13% TOTAL £2,516.00 £853.60 66.19% 24,380 £657,108.00 £1,943,800.00 66.19%
  • 164. 164 Range Plan for Timberland Ascent STYLE SKETCH FABRIC COLS SIZES RRP Actual Margin Total Total Total £ Cost achieved quantity Cost Margin YOSEMITE BLUE £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21% RED £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21% GREY £145.00 £43.20 70.21% 450 £19,440.00 £65,250.00 70.21% ORIGINAL PURPLE £85.00 £23.90 71.88% 600 £14,340.00 £51,000.00 71.88% RED £85.00 £23.90 71.88% 800 £19,120.00 £68,000.00 71.88% GREY £85.00 £23.90 71.88% 1000 £23,900.00 £85,000.00 71.88% VENTURE YELLOW £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50% PURPLE £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50% RED £20.00 £6.30 68.50% 1000 £6,300.00 £20,000.00 68.50% TOMMY BLUE £20.00 £5.40 73.00% 1000 £5,400.00 £20,000.00 73.00% GREY £20.00 £5.40 73.00% 1200 £6,480.00 £24,000.00 73.00% LEAH PURPLE £18.00 £5.10 71.67% 1000 £5,100.00 £18,000.00 71.67% RED £18.00 £5.10 71.67% 1000 £5,100.00 £18,000.00 71.67% Total Retail STYLE SKETCH FABRIC COLS SIZES RRP Margin Total Total Total £ Cost achieved quantity Cost Margin TOTAL £826.00 £241.20 70.98% 10,950 £156,660.00 £539,750.00 70.98% Total Retail APPENDIX 5:ASCENT ACCESSORIES CAD RANGE PLAN
  • 165. 165 Looking into the key competitors that Timberland Ascent will face, it is clear that although they are all extremely successful, they still face a number of problems. These range from being too accessible, to not accessible enough, not being fashion forward especially in their womenswear departments, and being too expensive. This provides opportunity for a new brand to fill the gap, offering fashion forward outdoor- wear at a considered price point. One thing they all excel in is their commitment to the environment. As retailers, which specialise in the outdoor industry, it is important they do all they can to protect the world their customers love to explore. This is something that will be a key focus for Timberland Ascent as it is highly respected amongst consumers and is already an important factor within Timberland’s company culture. Being a sustainable company isn’t cheap, however with current issues relating to global warming and other environmental problems becoming an increasing concern in the world, it is important that any company setting out to create new products recognise this. Social media and marketing campaigns is an area where all of these competitors thrive, however with the growing rate of technology and new social media platforms, they need to do all they can to keep up the pace especially if they want to target younger consumers. Timberland is already great example of a brand that has managed to attract a wider consumer through clever marketing and celebrity endorsement, it is no longer just seen as an outdoor brand but a key player in the fashion market place. Although this has been extremely successful and the new range can take inspiration from this, they need to ensure they are respected as a quality outdoor retailer as well as a successful fashion brand. PrAnaisdefinitelyacompanytowatchoutforoverthecourseofthenextfewyears,theirrecentacquisition from Columbia could increase their popularity and create a much stronger brand awareness throughout the UK making them hot competition for Timberland Ascent. APPENDIX 5:COMPETITOR EVALUATION