Timberland Case Analysis

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Category: Business and Industry

Date Submitted: 10/04/2013 05:29 AM

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Timberland, commonly identified as a New England heritage outdoor lifestyle brand, now seems to be connected to off-target associations. Throughout the last decade, hip hop stars have urbanised this traditional brand and created an erosion of Timberland’s identity. In the eyes of the executive Steve Centrillo: “This is a path to disaster, because you just can’t create it.” However, some opportunities have arisen for the brand if it could capitalise on the growing presence of sports and urban appeal in fashion brands, according to Ken Downing. Some executives already feel comfortable with the brand’s alternative image. As it currently stands, Timberland’s consumers could be divided into three segments. The first one is the consumers who want to wear comfortable boots in urban area. As Mr Jopson for the FT stated: “for many of the people who wear Timberland boots, the only line of topography that figures in their daily lives is deeply unnatural: a grimy underground subway track”. This group is the main buyer of Timberland who seldom go on outdoor adventure. The second one is the outdoor enthusiasts who need high-quality shoes. To build a brand image of providing a sturdy outdoor boot, Timberland should adhere to what it does best and continue developing its technology to satisfy the demand. The third one is the fashionable consumers who want some trendy elements on their rugged shoes. There is a big market in this area and Timberland’s sales have boosted by its absorption into the urban chic market.

Currently Timberland’s faith is at the hands of VF Corporation who acquired the brand in June 2011 for a whopping $2,3 billion. VF Corporation is no stranger to transforming category brands into their own segmentation of lifestyle brands. They have successfully translated the 37 brands in the portfolio into "lifestyle groups" - jeanswear, sportswear, outdoor and imagewear. The overall aim is to place Timberland within one of these lifestyle realms and although the...