Earthware Auditing Report Essay

6398 Words Apr 25th, 2015 26 Pages
earthwear annual report

company growth strategy EarthWear’s growth strategy has three elements. First, the Company attempts to increase sales by expanding its customer base and by increasing sales to existing customers through improved product offerings. Second, the Company seeks to generate additional sales by targeted mailings of special issues of its catalogs and by offering its products through its web site. Third, the Company is pursuing additional opportunities to expand its merchandising skills internationally.

Company History and operations
EarthWear Clothiers was founded in Boise, Idaho, by James Williams and Calvin Rogers in 1973 to make high-quality clothing for outdoor sports, such as hiking, skiing, fly-fishing, and
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The international business segment includes operations in Japan, Germany, and the United Kingdom, and various Internet sites. Catalogs mailed in those countries are written in the local languages and denominated in local currencies. In the spring of 2009, EarthWear launched local websites in each of these countries in their respective languages and currencies.

customer database A principal factor in the Company’s success has been the development of its own list of active customers. At the end of 2013 the Company’s mailing list consisted of about 21.1 million persons, approximately 7 million of whom were viewed as customers because they had made at least one purchase from the Company within the last 24 months. The Company routinely updates and refines the database before mailing catalogs to monitor customer interest as reflected in criteria such as the recency, frequency, dollar amount, and product type of purchases.
EarthWear believes that its customer database has desirable demographic characteristics and is well suited to the products offered in “the Company’s” catalogs. A survey conducted by the Company in the United States during 2012 indicated that approximately 50 percent of its customers were in the 35–54 age group and had median incomes of $78,000. The Company advertises nationally to build its reputation and to attract new customers. In 2012 an advertising campaign appeared in about 40 national magazines, as well as on

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