Karoo Trail (KT)
1. Karoo Trail (KT) is a manufacturer of technical hiking boots based in Cape Town, South Africa. It sells in South Africa and in eight export markets. All figures are in United States dollars ($).
2. KT sells the same boot, in the same packaging, in every export market. Its marketing is planned centrally in Cape Town, and the only element of the marketing mix that KT varies between markets is how much it spends there on advertising.
3. In four markets KT employs its own sales team and invoices retailers directly. In the other four it sells through a distributor, which buys from KT and resells to retailers. Table 1 shows sales revenue at the point of sale to retailers in every market. Where a distributor is used, the distributor keeps 40% of that revenue and KT receives the remaining 60%.
4. KT entered Chile in January 2025. Its Chilean distributor placed a single opening order worth $620000 in March 2025 to stock 90 outdoor stores. It has not placed a repeat order since.
5. For 2026 KT has agreed terms with a distributor in Canada and plans to spend $90000 on marketing there.
6. KT's marketing director told the board in December 2025: "Our export markets tell one story. Where we spend, we sell. The plan for 2026 is more of the same, in more countries."
Table 1: KT's export markets in 2025
| Export market | Year entered | Route to market | Import tariff on footwear (%) | Marketing expenditure ($000) | Export sales revenue ($000) |
|---|
| Namibia | 2019 | KT's own sales team | 0 | 18 | 320 |
| Botswana | 2020 | KT's own sales team | 0 | 24 | 395 |
| Kenya | 2021 | Distributor | 10 | 30 | 510 |
| Germany | 2021 | KT's own sales team | 8 | 36 | 640 |
| Portugal | 2022 | KT's own sales team | 8 | 42 | 700 |
| United Kingdom | 2023 | Distributor | 6 | 48 | 890 |
| Australia | 2024 | Distributor | 5 | 54 | 940 |
| Chile | 2025 | Distributor | 12 | 62 | 1 380 |
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