Timberland experienced its first major financial loss in 1995 when it closed two U.S. manufacturing plants and laid off 540 employees. This damaged relationships with employees and shareholders. To rebuild trust, Timberland pledged $5 million to City Year and increased community service efforts. However, Timberland failed to clearly communicate the importance of these initiatives to key stakeholders. It implemented strategies like media campaigns and internal communications but did not thoroughly explain how community involvement would benefit the company's future. Timberland needed to transparently convey the value of service to rebuild relationships with employees, shareholders and the public.

1. B Y : C O D Y D U M M E R , M I C H E L L E M A Y A L L A N D V I C T O R I A K E N Y O N
Timberland Case Study

2. History
 1933: Abington Shoe Company became incorporated
 1953: Nathan Swartz buys half-interest in Abington
 1955: Swartz bought the remaining interest, and
welcomes his sons into the company
 1968: Nathan Swartz retires and hands the company
over to his sons
 1978: Abington Shoe Company is renamed The
Timberland Company
 1987: Timberland goes public
 1995: Timberland closes two U.S. Manufacturing plants,
records its first loss and shifts much of its production to
outsources

3. Core Point
 Timberland needed to communicate the importance
of community service involvement transparently to
each key public.

4. Background
 Timberland had experienced its first major financial
loss.
 Timberland closes two U.S. manufacturing plants
and lay-offs 540 people on June 28th, 1995.
 Boone, North Carolina and Mountain City, Tennessee
 Provided City Year with a $5 million pledge.

5. Employees

6. City Year

7. Shareholders

8. Mistakes in Timberland’s Communication
 Decision to implement community involvement was
emotionally charged.
 Poor communication of the importance of
community service to the future of Timberland.
 Not enough information provided to key publics.

9. Strategies/Tactics
 Media Relations Campaign
 Television/Radio Ads, Video News Releases involving
employee community service and Traditional Press Releases
 Internal Communications Campaign
 Posters, flyers, monthly newsletters, Brochures, emails and
personal letters, employee discussion groups and a 24-hour
hotline.

10. Recommendations
 Quickly implement the strategies and tactics
previously described.
 Thoroughly explaining the importance of community
involvement to key publics and why.

11. Remember…
 Timberland needed to communicate the importance
of community service involvement transparently to
each key public.
 http://www.youtube.com/watch?
v=trBukCR2WrI&p=D3B66EB0F346DCE2&playnex
t=1&index=9