The North FaceStrategic Analysis - Overview

The North FaceCompetitive Landscape

StrengthHigh brand recognition and solidified leader in category

Utilizing Facebook to connect with local retail users

Broad product selection

OpportunityRetail providing controlled touch-points for the brand

Providing new media tools for customers

Youth market still developing

Social outreach through new media continuing to grow

WeaknessSize can sometimes hurt (large corporation perception versus “the little guys”)

Sustainability of TNF not seen/publicized as much as other companies

Products sold at competitive locations

ThreatsOverall category declining

Consumer spending down

Season ending, winter season is strong season

situation

Belonging Independence

Sta

bili

tyC

ha

ng

e

The Innocent

The Regular Guy

The Caregiver

The Ruler

The Sage

The Explorer

The Rebel

The Outlaw

The LiberatorThe Magician

The Hero

The Jester

The Creator

competition

competition

The North Face

REI Columbia Marmot Arc’Teryx Patagonia Mountain Hardware

Outdoor Research

Eddie Bauer L.L. Bean

Headquarters St. Laurant, Quebec, CA

Seattle, WA Portland, OR Santa Rosa, CA

North Vancouver, BC, CA

Ventura, CA Richmond, CA

Seattle, WA Bellview, WA Freeport, ME

Held Public, subsidiary

Private Public Public Private, subsidiary

Private, subsidiary

Public, subsidiary

Private Private Private

Year Founded

1968 1938 1938 1974 1991 1973 1993 1983 1920 1912

Employees 500 10,000 3,136 120 400 300 160 100 9000 5,400

Annual Sales $2,742M $1005M $1,244 n/a n/a n/a n/a n/a $1023M $1500M

Products Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel, Outdoor equipment

Apparel

AOR Factory Design Labs

BBDO Borders Perrin Norrander / White Horse

**unknown** Unlimited Vision

*none* in-house

Borders Perrin Norrander/ White Horse

**unknown** Mullen Idea City

MEDIA SPENDING

$12m $27m $32m **unknown** **unknown** **unknown** **unknown** **unknown** **unknown** $40m

Positioning/Distrobution

Focused on four categories: outdoor, action sports, performance athletics and youth, retail

General outdoors, retail. Co-op provides community, as well as REI Adventures providing group tours

Mid-level performance outdoor clothing, retail.

2 retail outlets, otherwise wholesale, with Pro sponsorship and direct sales

High performance outdoor gear through technological innovations and highest caliber components, wholesale

wholesale, catalog. Focused on Word of Mouth and profit coming as a low priority

High performance outdoor gear, wholesale

Small, dedicated to the right solution, it has to work or we won’t make it, wholesale

retail, catalog. Very old company that provides legendary products and support

retail, catalog. Proud to guarantee everything forever, no matter what.

Brand Personality

Anyone can go outdoors, and do what they want

Socially conscious, “the underdog”

Built well, priced well. Legendary.

We’re with you till the end. Wherever you go.

Extreme technology at the extreme high end

Human. Kind. Thoughtful. “I Give Back”. Reassuring.

Only the best, built for the adventurer not the casual climber

Research through testing, designed by adventure

Classic outdoors.

We back it up, forever. Outdoors is our soul, quality products guaranteed

Message Never Stop Exploring®.

Gear Up for the Great Outdoors

Tested Tough Marmot for Life

The Finest Products Possible

Committed to the Core

Performance Elevated

Designed by Adventure

Original Expedition Outfitters

Guaranteed. You Have Our Word.

Other Notes Owned by VF Corporation, huge in-store POP presence, except at REI locations, newer retail stores built for the brand, not for sales

Co-op foundation builds loyalty through membership. Dues ($25 for life) account for over $1m in annual revenue

First to license Gore-Tex

Parent Company is Amer Sports of Finland

Parent Company is Lost Arrow, no ad agency of record, only print ads (when needed) in non-mainstream magazines, no outdoor or tv. counting on word of mouth

Owned by Columbia

Lab Rat program encourages/facilitates trials of new equipment by customers who provide feedback on performance. Also, has lifetime guarantee on all products

High dollar value big purchases

+$1,000/yr

Many options forhigh-end gear

(tent and parka purchasers)“I live in the outdoors”

TNF is popular becausethe products work.

Period.

The Extremists arethe high end users, the ones that spend

thousands on tents.Theymay be what the others

aspire to be

Value

Barrier

Comm. Objective

Medium dollar value Consistent purchases,

$500/yr

Choosing for fashion andgoing outside. Price is comparatively higher“I like the outdoors”

TNF will help when youeventually want to go

outside and play

The casualists are thebrand loyalists. They

Choose TNF because theyrely on TNF. THey are

Not the outdoor zealots,but the casual adventurers

Low dollar value occasional purchases

$200/yr

Choosing for fashion andthe IDEA of going outside.

Image choice, not price based,“why go outside?”

TNF will help if you doeventually want to go

outside and play, or at least make you look like it

The Wishers are those whochoose to portray their

ruggedness spirit even withtheir school bag. More

urban and younger than therest, not sold on outside yet

Why?

Tent every 2 years,parka every 3

years, 10 other items throughout the year

Coat every 3 years, 5 other items

throughout the year

No tents, no Parkas, just backpacks,

sweatshirts, maybe 3 y/r

consum

er

The North FaceBrand Architecture

action

Brand Foundation

Brand Champion

Consumer Insight

Key Benefit

Why Benefit is Believable

Product(s)

Brand Promise

Backpacks, Coats, Clothing, Tents, other outdoor gear

Assets

Red

Half domes

Survive Life’s Roughest Challenges

Delivers

RuggednessProtection

Style

alwaysStrong

ReliableOutgoing

Excited for change, and the next challenge. It could be school, it could be life, it could be outdoors. They are the movers, the shakers, and the difference makers.

Confidence comes from experience. TNF will help you survive every experience.

The North Face provides confidence through any element

The North Face, named after the harshest side of a mountain, is based on the principle of letting you experience it, learn from it and explore beyond it. TNF provides gear for the outdoors, and the every day

that will help you show your adventurous spirit, but also let the external forces of the world know that you’re ready for any challenge.

action

The North FaceCreative Brief

creative

What’s Wrong?

Who are we Trying to Reach?

What do they need us to say or do?

What action can we communicate?

Where is the conversation?

How do we know we Can do something?

Mandatories

The North Face is a leader in the world of outdoor gear, but not everyone goes outside yet.

People who think the idea of the outsides is engaging, but don’t participate often. They needmore protection from classmates than rain. Younger by nature, they take on every day challenges and need the confidence to do so successfully. We’re looking for the 16-28 aged man,and woman.

Help me get outside, help me conquer my fears.

We’ve got your back. Whether it’s in a classroom or on the side of a mountain.

It’s a social topic. Through social and traditional means, specifically to engage and inform.Through Facebook, Twitter, YouTube instructional videos, targeted print ads in other-than-outdoor magazines as well as outdoor advertising.

The half-domes. Red is important.

By analyzing the competitive landscape, realizing the potential sales of this category of casual user

and creating an opportunity for them to go beyond casual user into the category of adventurer.

How do we know we did something?By engaged customers through online media; fans,

followers, subscribers and readers. By sales increases in our target demographic, and

relative expanding market of our more casual gear.

action

The North FaceMedia Plan

arena

arena

Urban Adventures

arena

Traditionally Untraditional

arena

Socially Savvy

Questions