Stage 3
Project - Final Written Submission
Group 4b
The North Face
Executive Summary/Abstract
Introduction
The North Face was founded in 1966 in San Francisco, California by two hiking enthusiasts taking a chance on a dream. Douglas Tompkins and his then-wife, Susie Tompkins, sold their small, climber targeted, clothing brand to Kenneth “Hap” Klopp two years later. From a single storefront to a global brand, The North Face has enjoyed incredible success in their 50 years of existence. They produce high quality outdoor apparel, gear and footwear in countries all across the globe. The North Face is a market leader when it comes to technology and performance. It’s clothing and equipment lines are catered towards college students, climbers,
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Besides just being seen in typical shopping outlets, The North Face advertises its brand in many of the traditional ways. “The company advertises in consumer and trade publications, on national and local radio, on Internet and recently on television. It also participates in cooperative advertising on a shared cost base with major retailers and print media, radio, Internet and television. To cultivate its brand image, North Face sponsors various mountaineering expeditions and other special events, as well as sponsoring a number of athletes and other personalities (Grace, Estrada, & Kirubanandan, 2011). In 2016 they launched a Virtual Reality marketing campaign that led people through a virtual trip through Yosemite Park, Utah, this is a demonstration of their ability to utilize technology and always find a new way to reach consumers.
The North Face is a subsidiary of the VF Corporation. VF is one of the world’s largest apparel manufacturers with $7 billion in sales. This gives the company incredible financial flexibility, industry experience and management support. The North Face is also a market leader in innovation and technology. Two of their major innovations are Thermoball and Fuseform. Thermoball ushered in synthetic insulation that mimics the properties and the capabilities of dow, while Fuseform completely changed
Nike may be typically known for focusing a lot of gear solely on athletes; yet, it is not just for them. Nike’s objective
Lululemon is one of the Canada’s best retailers of technical athletic yoga apparel. Lululemon’s yoga inspired apparel is marketed under the two brand names Lululemon Athletica for more mature women and Ivivva Athletica for younger girls. Lululemon primary target customers are educated and hard working women, who understand the importance of healthy and active lifestyle. Majority of these women are Caucasian who are mainly urban and have higher income, since Lululemon is an expensive brand .Most of their products are design to offer fit, performance and comfort while incorporating both style and function. On another hand, American Apparel
Sales in hiking boots segment are growing and it’s even dominating over the mountaineering segment to reach 85% from their total sales.
V.F. Corporation (VF) designs, manufactures, distributes and markets lifestyle apparel, footwear, and accessories. The company offers jeanswear, outdoor and action sports clothing, imagewear, sportswear and contemporary brands. The company markets its products under famous brands namely, the North Face, Wrangler, Timberland, Vans, Lee, and Nautica, among others. It sells its products to specialty stores, department stores, national chains and mass merchants, as well as through direct-to-consumer channel consisting of VF operated stores and internet sites.
Advances of technology are allowing manufacturers to consider and create new styles of military apparel and accessories to assist warriors in future battles. Special Operations Command wants gear to support fighters in spaces they’ve not yet experienced. Climates such as the Arctic and jungles are environments where U.S. troops do not typically
In the athletic apparel industry, as in any industry, it is key to stay in touch with the current trends in order to keep your products relevant. With Lululemon focused on such a niche activity it will be important that they explore other markets within the sports apparel industry in the future so as to stay relevant. We can see the company’s first steps in doing just this when they recently introduced their men’s apparel line. A summary of the athletic apparel industry’s external environment are listed in Exhibit 1.
The North Face as an American outerwear company is the main competitor of Canada Goose among many premium jacket market.
Mountain Equipment Co-op (MEC) is a Canadian outdoor consumer operative. In 1972, “We help people enjoy the benefits of self-propelled wilderness-oriented recreation,” became MEC’s first ever mission statement. MEC started with a niche market approach, adopting a focus strategy. Unsurprisingly, to adapt and maintain competitiveness, the organization’s business strategy has slowly shifted; since then, MEC has transitioned from a focus strategy to a growth and cost leadership approach. Nevertheless, the fundamental corporate values that gained MEC’s success, such as brand association to outdoor lifestyle and environmental sustainability, remain seen today. MEC continues to grow and evolve to over 15
How Tesla, Under Armour, and Sonos Do Branding is a remarkable article I found that highlights how those three companies have separated themselves from their competitors through their unique advertising and promotion techniques. Promotion deals with how a company markets their products and communicates with their customers. The products these companies have created are innovative and unlike any of their kind. With the internet and media being such a dominant part in our society, these companies have found ways to capitalize and better promote their products. This article focuses on new terminology advertising guru David Jones thought up known as brandtech. Brandtech is a mix of branding and technology. One of the most
The North Face reached the maturity stage in their life cycle. The brand is well established and has a strong presence in the market. The sales are still fairly high. The products are still in demand but the company needs to make some effort to differentiate their products from the competitors. The North Face has to focus on maintaining their market share because new products entered the market and became very competitive. There are other outdoor lifestyle brands like Columbia, Mammut or Nike that started being considered valuable and more affordable. The North Face has to face the challenge of maintaining the market
The most serious threat to The North Face is Patagonia, as both companies target the more serious outdoor adventurers. But of the two outdoor apparel companies, The North Face is trendier and appeals to a younger market, particularly college students, and products are available in thousands of retail stores nationwide. Therefore, The North Face appeals to more of a mass-market. In comparison, Patagonia has a distribution strategy that requires the operation of a limited number of retail locations in areas where demand is not as popular for outdoor apparel. Moreover, Patagonia continues to target the same market and do not aspire to become a trendy brand that is similar to The North Face.
CIMA Mountaineering, Inc. is a company manufacturing in hiking and mountaineering boots for beginner to experience hikers. CIMA sales and profit had grown steadily within the last several years. However, CIMA growth is beginning to slow down as a result of foreign market and changing market. The company is under consideration of two marketing proposals, these two marketing proposals will discuss about marketing strategies for
The company motto is “Live the Dream” and they aim to fulfil their customers need and desire for comfortable clothes and equipment for travel and adventure sport. Kathmandu has described quality and performance as the key to their new design initiatives and they invest substantial resources that focuses on design, quality, technical development, merchandising and supplier management functions. They develop products that are
The North Face was founded in 1966. In 2000, after facing serious financial and distribution problems,
New Balance International was founded during the early 1990s specializing in orthopedic footware to improve the fit of their shoes. Today the company continues its founding values in a highly specialized niche business of providing athletic footware in a wide range of widths and sizes which distinguishes the product from its competitors. With the philosophy of “one size did not fit all,” New Balance expanded operation from the US and currently markets its product in 160 countries in six continents. New Balance Inc. first appeared in South Africa In 1976 when a Durban based company obtained a license to distribute the brand. Under this distribution plan the company held a very small percentage of