The North Face Case Study

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THE NORTH FACE Mariam Shahab, Laura Robertson, Stephanie McKillop, Jessica Schlesinger

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Transcript of The North Face Case Study

Page 1: The North Face Case Study

THE NORTH FACE

Mariam Shahab, Laura Robertson, Stephanie McKillop, Jessica Schlesinger

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Methodology

• Secondary Research: MRI, Mintel, Online data bases

• Twenty-Question survey with 40 respondents

• Two focus groups with a total of 10 participants

• Five in-depth interviews

• Observation : Consumers shopping at both the North Face store and REI

•Internal Intelligence - 1 Manager and 2 part time employees were interviews

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The North Face Consumer: The Basics

• Educated, College Graduates

• 25-54 years old

• Married, with children of all ages

• Lead active lifestyles

• Watches the Discovery Channel

• The most important factors in deciding to buy outerwear are style, latest technology, and the brand

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The Focus Groups

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• “My zipper fell off my jacket like 2 years after I bought it, and frankly it was totally my fault. I brought it to the store and they sent me a completely new one for free.”

• A lot of people buy the gear but don’t actually do the stuff [the outdoor activities].

• “A TNF user would have a GPS for their car but pretend they didn’t have it.”

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In-depth Interviews

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• “If North Face was a person, he would definitely be a tool with his collar popped, drinking a light beer."

• “When I want to buy a NF, I research the product on its website. It’s not an impulse buy, but a well thought out purchase product because it’s going to last forever.

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Survey Responses

• Most frequent adjectives used in describing TNF: Durable, Warm, Comfortable, Boring, and Masculine

• Benefits of owning a North Face: Lasts long, and warmth

• Things about the North Face consumers do not like: Price

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Consumer’s Perception of The North Face and its Competitors

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Key Insights:

• There are two kinds of customers:• Professional Climbers and Outdoor Enthusiasts -

the primary and targeted consumers of TNF. Use the gear in practice.

• “Brand Hitchers” : Consumers that wear active wear without participating in the activity the apparel was designed for. They use the product for general, everyday climate protection.

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TNF: Strengths

• Innovative Product Design

• Brand Equity - well known and accepted

• Product Reputation & Quality

• Sustainability - pledges to “advance the well-being of the planet and its citizens”

• Product Diversity- Casual Apparel, Equipment, Outwear, Footwear, and more.

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TNF: Weaknesses

• Focused, Niche Industry - difficult to grow with a limited amount of customers

• High Price-Point

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TNF: Opportunites

• Kiosks• Online Communities• Possibility of future government contract for tents as

a longtime supplier for the US Marine Corps• Children’s Clothing- 8% sales increase between now

and 2013• Women Audience• Family Emphasis• Fashion Meets Performance

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TNF: Threats• Competition - Status customers are quick to move with a

change in trends. Relatively low barriers to entry and smaller specialty companies frequent the market

• Possibility of Major Shifts in Consumer Tastes and Preferences - Consumers demanding more value for their dollar and are quick to move if an item falls short of expectation

• Possibility of Breakthrough in Product Design Not Developed by TNF

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TNF Relationship With Consumers

• Functional: Products that last forever are a good investment and are effective. The store is a one stop shop.

• Emotional: Trusted, professional reputation, go-to adventure brand, guaranteed

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The Creative Brief

• Business Challenge - To differentiate the brand between competitors that specialize and those which are all-inclusive.

• Communication Objectives: To capitalize on the opportunity of appealing to families as consumers while maintaining the element of self-fulfillment through outdoor activities.

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Brand Essence

Rational - The premiere outerwear brand that will take you from the streets to the top of a mountain.

Emotional- Confidence in this high-involvement buy because of its reputation: intense, exploring, energy, legitimate, familiar

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Target Audience

Professional Climbers and Outdoor Enthusiasts heads-of-households

• Busy Schedules - One-stop-shop convenience fits their lifestyle.

• Consumes all types of media with emphasis on internet usage

• Busy lives, but make time for each other. Enjoy family vacations

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Key Insight

Owning TNF product causes consumers and their families feel more motivated because of the brand’s legitimacy toward active and adventurous lifestyles.

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The Big Idea

To reinforce TNF’s image as the leading, all-inclusive, adventure brand by extending its outdoor and active lifestyle to include the whole family.

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Motivating Support Points

•TNF is dedicated to being the most innovative in product development.

•TNF offers products for all age groups for varying skill levels.

•Life-time guarantee

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Current Response

“The North Face is a great supplier of gear and apparel for me as an outdoor enthusiast”

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Desired Response

“The North Face has the best quality products which are a good investment for entire family so that we can be active together.”

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Executional Considerations

•Keep current tagline and image style to avoid alienating current consumer base.

•Multi-media, focus on online and non tradition mediums