Northfacebrand profile by Brenda

Andrew Zickmund Bill Keogh Introduction to Marketing 6 December 2013

1 Â

Integrated Marketing Communications Brand Choice: North Face Apparel Product Category: Outdoor & high performance gear Brand Attributes Brand name: North Face Brand quality: The overall quality is very good since they use new technology to differentiate themselves from other competitors, such as Columbia, Patagonia, Nike, and Eddie Bauer. Some of their technologies include: Thermoball which helps keep products insulated so consumers can stay warm, and FlashDry which helps accelerate evaporation to keep you dry (North Face). Industrial improvements are made every year and are adjusted accordingly. North Face products are even used by professionals who are experienced in outdoor recreations. Physical characteristics of the brand: • • • • • • • • • • • • • • •

Waterproof Breathable Wind Protection Moisture Management Sweat Removal Temperature Regulation Thermal Insulation Dry/Protected Light Weight Odor Management Element Protection Durable Comfortable Flexible Long-lasting

Brand strategy: The North Face positions themselves as a leading innovator in high performance apparel, equipment, and footwear. They separate themselves by offering high quality apparel that takes the environment into account. They also committed to providing consumers with outstanding customer service and strive to meet their every needs. (Business Insights: Essentials) 2

Brand image: The North Face has a personality of being highly adventurous and rugged. The brand image is seen as one that is perfect for the outdoors and can stand up to harsh weather in any climate. Not only is it suitable for harsh climates, it’s also perfect for everyday use. Consumers don’t need to climb a mountain to be able to wear North Face products. Although they’re a bold brand, they’re also concerned with being environmentally friendly (Business Source Complete) Brand reputation: “The North Face brand has grown from a single storefront to a respected global brand that generates over a billion dollars in annual sales in just over 40 years. Yet the fundamental mission remains unchanged: building the best gear for the outdoors, supporting the preservation of wild places, and inspiring a global movement of outdoor exploration.” (North Face) Brand price: Men • • • • •

Jackets & Vests $65-$1,379 Shirts & Tops $25-250 Pants & Shorts $30-$549 Accessories $15-$180 Shoes $45-475

Women • • • • •

Jackets & Vests $70-$599 Shirts & Tops $25-$130 Pants & Shorts $38-$549 Accessories $15-$180 Shoes $30-350

Boys • Jackets & Vests $75-$230

• • • •

Tops $20-$55 Bottoms $35-$110 Accessories $11-$50 Shoes $30-$85

Girls • • • • •

Jackets & Vests $65-$249 Tops $20-$90 Bottoms $35-$120 Accessories $11-$50 Shoes $30-$75

Toddlers • Jackets & Vests $35-$170 • Tops $30-$80 • Bottoms $25-$99 • Accessories $30 • Shoes $50-$60 Infants • • • • • •

Jackets & Vests $35-$90 Tops $35-$65 Bottoms $20-$55 Accessories $22-$35 Buntings $70-$130 Shoes $30

Brand core value: • Innovative fabric technology; partnered with W.L. Gore to create and help launch PacLite the most compressible, lightest weight GORE-TEX shell fabric available, weighing only 3.2 ounces per yard, ideal for outdoor expeditions (North Face) • Commitment to the environment and social responsibility; they reduce the environmental impact through the responsible management and selection of chemicals. • Dedicated to inspiring future generations to explore to the great outdoors. Brand logo and tag line: • The North Face logo is a red square, which depicts passion and courage. The name North Face is written in the logo with Helvetica Bold typeface in white to stand out against the intense red color. It has three half arches that are decreasing in size which are also in white. The North Face logo is also one of the highest counterfeited brands in the world.

• “The North Face logo features a slightly slanted quarter-circle with two lines marked inside it. It was created in 1971 by David Alcorn, a California-based graphic designer. The logo symbolizes the famous Half Dome, a giant granite dome in Yosemite National Park.” (EBSCO database) • “In 1997, the company adopted a new tag line: “Never Stop Exploring.” It reinforced the spirit of adventure that would continue to guide The North Face. (North Face) Brand design & packaging: • The fleece in the solid color Denali jackets contains 87% recycled content which is comprised entirely of post-consumer waste plastic bottles (North Face). • Products come in a recyclable cardboard box with North Face logo and embossed tagline • A company called Chen Design Associates redesigned the global packing of North Face to show the importance of the company's efforts of being more environmental friendly. • The packaging incorporates materials of 100% post-consumer waste • Prints with environmentally-friendly inks • Hang tags are attached to apparel to show the company’s conservation of water, trees, and energy, highlights the textiles that the product is made out of, and shows the products technology and versatility • Hangers on sandals to show and have the brand front in center when opened • Foot forms provide information about the shoes and replaces non-recyclable tissue previously used to stuff shoes. • Shoebox tissue is made out of 100% post-consumer recycled tissue paper. Source Used: Chen Design Associates Brand customer satisfaction/warranties: • Creates products that are innovative in product development. • Offers products for both male and females of all ages. • North Face products are under full warranty to the original owner against defects in both the materials and workmanship of the lifetime of the product, regardless of the age. • If a product has a defect even after extended use, they will repair free of charge, or replace it if necessary.

Brand equity: The enhanced value the North Face brand lends a product is that its wellknown and accepted. North Face is highly desired among young adults because it has become a trendy status symbol. They want to stay up on fashion styles and become a critical part of the person that purchases their products. The North Face brand appeals to consumers by providing top quality products that are also environmentally friendly. This allows customers to feel like they are helping a cause, such as saving the environment through the conservation of water, energy, and trees. Brand’s primary competitors: • Columbia Sportswear- provides high quality apparel, footwear, accessories and equipment for use in a wide range of outdoor activities by men, women and youth. It’s designed to keep the consumer warm or cool, dry and protected. • Patagonia- develops and markets clothing for a wide variety of outdoor sports, travel, and everyday clothing that is both innovate and environmentally conscious. • Nike- the world’s leading innovator in athletic footwear, apparel, equipment and accessories. • Eddie Bauer- provides the same products that North Face offers both online and in stores. They pride themselves on being innovative, having outstanding quality, and have a great appreciation of the outdoors. Even their tagline is similar: “Live Your Adventure”. • LL Bean- provides consumers quality apparel suitable for outdoor and recreational use. They offer customers the same type of products such as jackets, coats, sweaters, outdoor equipment etc. Consumer Buying Behavior Primary Target Audience: • • • • • • • • •

Single Male & female ages 25-45 College students and young professionals Middle to upper-middle class Income ranges from $40,000-$60,000 Athletic Independent Environmentally friendly Adventurous

Consumer Buying Decisions: • Who most influences the buying decision? The young college students /professionals • Who makes the final buying decision? The young college students/professionals would ultimately make the final buying decision. • Who makes the actual product purchase? The college graduates/young professionals are making their own buying decisions since they’re making between $40,000 $60,000 a year. They’re independent and don’t rely on their parents to support them financially anymore. Other Factors influencing consumer purchase: • Economic- if the economy isn’t doing well then many people won’t have enough money allotted to purchase North Face products at such a premium rate. • Technological- consumers tend to be more influenced when their favorite brands such as North Face come out with new technology for their products such as wind proof, breathable, and waterproof. • Competitive- other brands such as Columbia, Patagonia, Nike, and Eddie Bauer all offer similar products to North Face at a more affordable price. Consumers may purchase from these retailers, rather than spending a fortune on North Face apparel. • Environmental- due to their promise to be environmental friendly, consumers will be influenced to purchase since they feel like they’re getting a great product as well as helping a cause at the same time. Product Packaging • How does it provide product protection? The North Face brand offers a lifetime warranty to all consumers with all products under the North Face Umbrella. For example, if a zipper breaks off one of the coats, you can send it in and they will fix it free of charge. • How does it persuade consumers to buy? North Face uses cause-related marketing to influence buyers. This is when marketers-market products on either a social or environmental issue. For example, the North Face brand prides themselves on using sustainable material to produce and package their products. They are also advocates of environmental issues all over the world. • How does it provide marketing support? They offer consumers high performance apparel that can stand up to any conditions that the weather permits. It also provides consumers durability and allows them to purchase products that are environmentally responsible.

Pricing • Suggested retail price (what you pay): Men’s Denali jacket $199.99 • Product value (what you get): A warm jacket that has a mid-layer that is waterresistant through the technological advances. The jacket is fleece and remains incredibly breathable (North Face). • Product components/features: Zip-in-compatible integration with complementary garments from the North Face, abrasion-resistant shoulders, napoleon chest pocket, two secure-zip hand pockets, elasticbound cuffs and hem, hem cinch cord, and media pocket (North Face) • Product benefits (perceived or expected): The expected benefits that it offers is a long lasting product that will stand up to all weather conditions, lifetime warranty, environmentally friendly, innovative, differentiated products that don’t compare to competitors. The perceived benefits it provides is for consumers to feel like they’re staying up with the trends which allows them to “fit in” with every other North Face consumer loyalists. • Pricing set in relationship to the marketplace (at/below/above competition): Above competition • Pricing Strategy (market-skimming or market-penetration pricing): The North Face brand uses market-skimming or pricing that is set above other competitors. Product Distribution • Direct Distribution: • Direct mail catalogs- are sent out to consumers to show them new products for the upcoming season (e.g. fall catalog to showcase products for the winter) • Internet- customers can purchase everything from clothing to tents for camping • Retail stores- open for 40 years to bring innovate apparel and equipment to those who live life on the edge • Indirect Distribution: • Uses merchant middlemen • Retailers such as Dick’s Sporting Goods, Macy’s, Gander Mountain, Marshalls/T.J Maxx, and online at Amazon offer North Face products.

Product Promotion Advertising • Primary consumer selling message: Each consumer selling messages are different depending on the campaign • One example includes a campaign North Face tried back in 2010 in which they sent out mobile text messages when patrons got close to a North Face store. The primary consumer selling message was “Come buy a great product that is also very convenient” (New York Times) • The North Face 2012 Fall Print Ad Campaign out in magazines. They focused its fall campaign on launching the Meru Kit, a line of equipment and clothing we developed for a climb of the Shark’s Fin on Mount Meru. This underlying consumer message was “If these products are durable for even the toughest terrain & weather then they will be good enough for you. (Jimmychin.com) • Advertising selling message (tagline): “Never Stop Exploring” • Types of media used: • TV • Internet • Magazines • Other media types used: • Direct mail • Interactive media such as The North Face website • Social media such as Facebook, Twitter, YouTube, Pinterest, and their Never Stop Exploring blog • Total media expenditures in 2012 (and previous years 2008-2011): Information was not found; private Sources tried: Lexus Nexus, Business Source Complete, Advertising Red Book 2013, Business Insights: Essentials, Business Source Complete, Wall Street Journal, V.F Corporation annual reports Sales Promotion • Sales promotion techniques used: • They reduce the price of its products by sending out seasonal coupons which are placed in specific magazines and posted online to encourage people to buy.

• They add value by having online contests posted on the company’s site, Facebook and Twitter. The winner of the competition gets to sponsor the next local competition. Another competition started on November 11th and goes until December 29th, the contest is to take a photo or video that pertains to the weekly theme and includes the hashtag #neverstopexploring. If the winner is from the US they will receive a $300 gift card. If the winner is from Canada they get to choose any gear item of their choosing. (North Face) Public Relations • Methods of positive publicity used: • News releases to inform consumers about new technology innovations and how their working towards being more sustainable • Other public relations activities used: • Community relations: • The Breast Cancer Fund to support their goal of shifting the conversation from awareness to prevention. Instead of walking for a cure, the Breast Cancer Fund climbs mountains. (North Face) • Paradox Sports is a charitable organization that helps the disabled to become active participants in human-powered outdoor sports (North Face) • The American Mountain Guides Association (AMGA) is an educational non-‐‑profit that is dedicated to supporting the American mountain guiding and climbing instructor community. (North Face) • Sponsored events: • The Tour of France • Highlands Bike Tour in Florida • Palms Spring Tour in California • Cit2Run in Australia • Great North Run in United Kingdom • Ski Challenge • Ultra Trail du Mont Blanc in France • Lavaredo Ultra Trail in the Italian Dolomite mountains • X games

• Crisis management: • Customers were going online and complaining that the zippers on The North Face women’s parka coats because they were malfunction and kept breaking. Consumers were upset because they had just spent an upwards of $200-$300 dollars on the coat and failed to be maintainable as advertised. The North Face responded to this negative publicity by not only taking the parkas off the market and replacing the coats for the unsatisfied customers, they also implemented a better customer warranty. It allows patrons to send back products they are unhappy with and if the company can’t fix it they will send them brand new merchandise (North Face) Other Marketing Disciplines • Sponsorships and Events: The Endurance Challenge, a race available in five locations with seven different race distances. Gear Up + Get Out, an event that teaches future generations about nature and exploration. The North Face Speaker Series, a speaking engagement with guest speakers Alex Honnold and Peter croft, free soloist climbers that don’t use ropes. The speaker series will stream live on the North Face website. The last event is the Masters of Snowboarding tour in North America. (North Face) • Trade Shows: North Face participated in the IPSO 2013 show in Munich which their Alloy Jacket, from the Summit Series collection, was a winner in the outdoor section’s soft-shell category. They were also in attendance at the Outdoor Retailer and Snow Sports Industry of America Shows. (Business Source Complete) • Product Placement: The North Face brand is placed in the feature movie the Social Network (2010) & The Next Three Days (2010). (Brand Channel) SWOT analysis • Strengths: • Well-known brand. Most people see the logo and automatically know it’s a North Face product. • Innovative. Always coming up with new ways to differentiate themselves in the competitive marketplace. • Has great consumer efficacy. 11

• The North Face uses recycled material content wherever possible. Currently, about 15% of total material volume is recycled, accounting for about $150 million of product sold. (EBSCO database) • Very durable product, perfect for outdoor activities such as hiking, skiing, snowboarding, climbing, and biking. • Diverse products such as jackets, vests, shirts, hats, gloves, shoes, tents, bags, backpacks, luggage, etc. that fulfills all consumer needs. • Guaranteed customer satisfaction. For example, if products get damaged they are under a full lifetime warranty. • Weaknesses: • Expensive. Not a lot of people can afford their products, especially in this economy. • Most of their products are only available in limited colors. • Some women believe that their products are mostly male driven. • Their brand portrays an idea that their products are only suitable for people who participate in a wide variety of outdoor activities, leaving regular consumers discouraged from buying their products. • Their products are mostly seen and purchased during the fall and winter seasons. • Opportunities: • They could provide consumers with products that are appropriate for the spring and summer months. • Add more colors to their collections to appeal to more consumers. • Improve on keeping up with trends and what’s selling in the marketplace. • Show that the brand isn’t just for adventurous people, but also for average everyday people. • Create a greater women audience with products that appeal to them. • Threats: • Some people prefer to shop at Columbia Sportswear because it’s more affordable. • Grey Marketing has greatly affected the brand due to unauthorized distribution of their products. The North Face logo is also one of the highest counterfeited brands in the world. • The economic recession has affected consumer’s purchasing power since most people can’t afford a coat that’s worth upwards of a couple hundred dollars.