2. The North Face - Brand Analysis
I. Executive Summary ---------------------------------------------------------------------------------------- 4
II. Brand (Description)
Company Description & Brief History ------------------------------------------------------------------- 4
Brands Owned & Managed -------------------------------------------------------------------------------- 8
o Outerwear ----------------------------------------------------------------------------------------------- 8
o Footwear ------------------------------------------------------------------------------------------------- 9
o Equipment ----------------------------------------------------------------------------------------------- 10
o TNF Sustainable Journey ----------------------------------------------------------------------------- 10
Company Business Model ---------------------------------------------------------------------------------- 11
Sales ------------------------------------------------------------------------------------------------------------ 13
o Market Share ------------------------------------------------------------------------------------------- 14
Advertising & Customer Support ------------------------------------------------------------------------- 14
Brand Management & Structure ------------------------------------------------------------------------- 15
o Brand Management Conclusions ------------------------------------------------------------------ 18
III. Internal Brand Environment
Introduction ---------------------------------------------------------------------------------------------------- 18
Key Company Accomplishments (Internal & Community) ------------------------------------------ 19
Sustainability Partners -------------------------------------------------------------------------------------- 20
o Partnership Analysis ---------------------------------------------------------------------------------- 21
Employee Training & Moral -------------------------------------------------------------------------------- 21
Visit to North Face Retail Store (Part I) ----------------------------------------------------------------- 22
o Employee Interview ---------------------------------------------------------------------------------- 22
SWOT Analysis & Summary -------------------------------------------------------------------------------- 23
Research & Development ---------------------------------------------------------------------------------- 25
o Research, Design & Development Process ----------------------------------------------------- 25
o Product Technology ---------------------------------------------------------------------------------- 26
o Customer Surveys ------------------------------------------------------------------------------------ 28
o R&D Conclusion --------------------------------------------------------------------------------------- 30
IV. External Brand Environment
State of the Economy ---------------------------------------------------------------------------------------- 30
Selling Place ---------------------------------------------------------------------------------------------------- 31
o Retail Store Environment ---------------------------------------------------------------------------- 31
o The North Face Official Website ------------------------------------------------------------------- 33
o Third Party Retailers ---------------------------------------------------------------------------------- 34
o Expansion ------------------------------------------------------------------------------------------------ 35
Category Analysis --------------------------------------------------------------------------------------------- 36
Competitive Analysis ----------------------------------------------------------------------------------------- 36
o Patagonia ------------------------------------------------------------------------------------------------ 36
o Columbia Sportswear --------------------------------------------------------------------------------- 39
o Nike ------------------------------------------------------------------------------------------------------- 41
o SWOT Analysis ------------------------------------------------------------------------------------------ 44
o SWOT Summary ---------------------------------------------------------------------------------------- 44
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3. The North Face - Brand Analysis
V. Identity Interrogative
Prospect -- Customer Behavioral Groups ---------------------------------------------------------------- 45
o Demographics ------------------------------------------------------------------------------------------- 46
o Geographic Profile -------------------------------------------------------------------------------------- 46
o Behavioral Characteristics ---------------------------------------------------------------------------- 46
o Psychographics ----------------------------------------------------------------------------------------- 47
o Internal Research: Survey ---------------------------------------------------------------------------- 47
Brand Positioning ---------------------------------------------------------------------------------------------- 53
Strategic Personality ------------------------------------------------------------------------------------------ 53
Brand Identity Summary ------------------------------------------------------------------------------------- 53
Emotional Context ---------------------------------------------------------------------------------------------53
Brand Contact Summary ------------------------------------------------------------------------------------- 53
New Product Opportunities --------------------------------------------------------------------------------- 54
Visit to the North Face Store (Part II) --------------------------------------------------------------------- 55
VI. The “Brand Plan”
Brand Plan Overview & Objectives ------------------------------------------------------------------------ 58
Brand Strategies - How to Position the Brand ---------------------------------------------------------- 59
Brand Tactics --------------------------------------------------------------------------------------------------- 59
Brand Identity ------------------------------------------------------------------------------------------ 59
Brand Communications ------------------------------------------------------------------------------ 59
Brand Promotions ------------------------------------------------------------------------------------- 60
E-brand program --------------------------------------------------------------------------------------- 61
Brand Research ------------------------------------------------------------------------------------------------ 61
Brand Calendar ------------------------------------------------------------------------------------------------ 65
Brand Operations --------------------------------------------------------------------------------------------- 65
VII. Summary & Conclusions ------------------------------------------------------------------------------ 66
VIII. Addendums, Research, & Other Data ---------------------------------------------------------- 66
3
4. The North Face - Brand Analysis
I. EXCECUTIVE SUMMARY
The North Face, a subsidiary of the Vanity Fair Corporation, was founded in 1966 and opened
its first retail store in 1968. Headquartered in San Leandro, California, the company offers the
most technically advanced products in the market to accomplished climbers, mountaineers,
extreme skiers and explorers. The company's products are sold in specialty mountaineering,
backpacking, skiing retailers, premium sporting goods retailers and major outdoor specialty
retail chains.
The company outfits professional and amateur athletes and enthusiasts in high-quality,
technical outerwear. The North Face sponsors major events to maintain increase its public
profile. In 2010, The North Face sponsored the Ski Challenge, the Ultra Trail du Mont Blanc in
France and the Lavaredo Ultra Trail in the Italian Dolomite mountains.
Although the company filed for bankruptcy in the late 90's, in the last quarter of 2010 its profits
rose by around 20 percent, driven by sales in Asian markets and the high visibility of The North
Face brand during the Winter X-Games.
The North Face brand delivers high performance, quality and style. It has earned a reputation
as the ultimate, authentic outdoor brand. The company’s goal is to inspire outdoor enthusiasts
to get outside and explore more. Its slogan,”Never Stop Exploring,” has become in the mantra
of their athletes who are considered the core operating expense and leveraged across the
marketing and product strategies. They have enabled this brand to be what it is today.
Although The North Face Brand has achieved cult status among trendy outdoor enthusiasts,
there are a few areas in which they can still improve: product technology communications,
customer loyalty and expand product lines. In this company brand analysis, we will present a
comprehensive brand strategy, as well as tactics, to accomplish these goals.
II. THE BRAND (Description)
o Company Description & Brief History
The North Face is a wholly owned subsidiary of the VF Corporation, one of the world's largest
fashion apparel manufacturers, with $7 billion in sales. VF designs and produces a diverse
portfolio of clothing products for both the U.S. and international markets and owns an array of
well-known brands in several categories that are sold through a variety of retail sales channels,
including department, specialty, mass-merchant and discount stores.
VF is the leading maker of jeans in the United States, dominating about one-quarter of the
market with brands like Wrangler, Lee, Rustler and Riders. Approximately half of the
company's revenues come from just the sale of jeanswear. Intimate apparel, which includes
the Vanity Fair, Lily of France, Vassarette and Bestform brands, generates about 16 percent of
sales. Another 10 percent comes from marketing occupational apparel under the Red Kap,
Penn State Textile and Bulwark brands.
VF also sells children's playwear under the Healthtex and Lee brands, The North Face outdoor
apparel and equipment, and JanSport and Eastpak daypacks and bookbags. Other operations
include a chain of about 50 VF retail outlet stores located across the United States, selling a
wide range of company products. More than 80 percent of company revenues are derived
4
5. The North Face - Brand Analysis
domestically; the remainder primarily generated abroad in Europe. South America and Asia
contribute to a small portion of overall sales.
The company is dedicated to their retail partners because they believe in treating their
associates, colleagues and all those who serve in the course of doing business with the highest
levels of honesty, integrity, consideration and respect.
How the story of North Face begins…
The North Face legend begins on the beach
of San Francisco by 1966 when two hiking
enthusiasts opened a small mountaineering
retail store in San Francisco’s North Beach
neighborhood, at an altitude of 150 feet
above sea level. Since then, the company
has helped explorers to reach the most
unforgivable adventures to the heights of
the Himalayas.
The company was named “The North Face”
because in the Northern Hemisphere, the
north face of a mountain is generally the
coldest, iciest and the most difficult face to
climb. By that time, the company was
positioned as a retailer of high-performance
climbing and backpacking equipment.
Thereafter, in 1968, the company moved its
store to the other side of San Francisco Bay
and began designing and manufacturing in
the back of the store, its own brand of
technical mountaineering apparel and
equipment.
F.1. Kami Sernick, 2010 USATF Ultra Runner of the Year Award
In 1974 the Morning Glory tent was introduced, and in 1975 the Geodesic tent design replaced
the traditional A-shaped tent with introduction of the Oval Intention, which became a standard
for lightweight, high-performance tents. A sleeping bag was introduced in the same year and it
also became an industry standard.
In 1976, North Face began sponsoring expeditions to the most far-flung untouched corners of
the globe. This launched a proud tradition that continues in full force today and constantly
reinforces The North Face mantra of “Never Stop Exploring. Some of the most memorable
expeditions have been the Annapurna Expedition in Nepal in which a team of 13 American
women made an incredible ascent; touting the t-shirt slogan “A Woman’s Place is on Top.”
Another great expedition was in 1989 when the North Face spearheaded the Outdoor Industry
Conservation Alliance Trans-Antarctica Expedition. In this adventure, an international team of
cold weather hard-men made the first crossing of 4000 miles of the coldest continent during
seven months.
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6. The North Face - Brand Analysis
By 1992, The North Face Team begins with 8 extreme athletes who make the longest ascents
and descents in the most amazing and coldest paradises. Today, the company has a team of
more than 60 professional global athletes from around the world, which includes
snowboarders, skiers, rock climbers, mountaineers and endurance runners.
The brand maintains strong links
with the outdoor community
through its sponsored athlete
program. Athletes such as Lizzy
Hawker who recently won the Ultra
Trail Tour du Mont Blanc have
benefited greatly from the program.
F.2. Lizzy Hawker, Endurance athlete and 100km world champion.
In the early 1980s, The North Face was taking exploration to the outer limits of the ski world
and added extreme skiwear to its product line. By the end of the decade, the company became
the only supplier in the United States to offer a comprehensive collection of high-performance
outerwear, skiwear, sleeping bags, packs, and tents.
The North Face entered in the sportswear market in 1996, with the launch of Tekware, an
innovative collection of high-performance sportswear. The company launched its own line of
trekking and trail running shoes in 1999.
Despite the continuous growth of the brand, the company had a few stumbles a long the way;
for example, by the end of the 1980s the company was acquired by a holding company that,
five years later, filed for bankruptcy. It also becomes a major target for counterfeiters. The
brand was so trendy that its popularity skyrocketed, even further outside its target market.
Unfortunately, the trendiness led the company to face and alarming trend of counterfeit
products. In March 2006, the company won a judgment of over $1 million dollars in a New York
court against a family that was selling fake North Face jackets.
What ultimately saved the company was its strategy to enter the leisure apparel market in
the mid-1990s. The company’s status as a tent supplier to the U.S. Marine Corps also helped
boost its sales. It also has invested heavily in high-performance athletic events. For example,
“The North Face Endurance Challenge Series,” includes four regional events and one
championship event.
Other brand building initiatives have included innovative in-store kiosks, on which customers
can watch videos of expeditions. The company also launched an online magazine called Epic
that features photography and articles appealing to the people who are passionate about
backcountry sports.
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7. The North Face - Brand Analysis
Today, North Face is based in San Leandro, California. The facility is located near its corporate
sibling JanSport. JanSport is the world’s largest backpack maker, and together, both companies
manufacture nearly half of all small backpacks sold in the United States.
Additional information about The North Face® can be found on the company's website,
www.thenorthface.com.
F.3. Online Magazine
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8. The North Face - Brand Analysis
o Brands Owned & Managed
The North face is the world’s leader supplier of innovative an outdoor product specializing in
outerwear, footwear and equipment. The outerwear and equipment lines are catered towards
wilderness chic climbers, mountaineers, skiers, snowboarders, hikers, and endurance athletes.
F.4. TNF Mountaineers Team
The summit series is The North Face’s legendary mountain apparel and equipments range
aimed to hardcore athletes, mountaineers, alpinists and climbers. It has been exhaustively
tested in extreme weather conditions and terrain, in order to deliver the highest level of
performance, versatility, comfort and durability to its customers.
The North Face is constantly driving its research and development to use advanced materials
and produce innovative designs. One example of this is the GORE-TEX outwear technology to
deliver waterproof, windproof, and breathable fabrics. In Fall 2009, the line was re-launched to
introduce a higher level of quality and the next level of technical gear. The line also offers a
new color palette that refreshes the series and differentiates it from other The North Face
products.
GORE-TEX is a two-layer construction membrane that is
laminated to lightweight, strong nylon textiles to produce
garments that are extremely breathable, compressible,
and durably waterproof. Engineered with the most
rugged, most breathable, durably waterproof and
windproof fabrics. This technology helps the company to
meet the high demands of hardcore outdoor athletes.
(http://uk.thenorthface.com/technologies/outerwear/gore-tex-
outerwear-fabrics)
F.5. GORE-TEX outwear technology
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9. The North Face - Brand Analysis
Some products using this technology are the women’s Heathen jacket, men’s Primavera
Triclimate jackets, women and men’s pants and women’s Southerland jacket.
The company also offers an array line of the accessories, which includes gloves, beanies, caps
and scarves designed for any activity.
The North Face’s footwear products are ideal for everyday walks and high-altitude base camps
alike. They are ready to be worn in the most extreme cold weather. The company offers a
diversity of high-performance and innovative shoes for any weather conditions and lifestyle.
The products are filtered by color, size, TNF technologies and TNF types.
Most of these products are featured as durable, breathable and water-resistant, with
streamlined design and made of with the most innovative technology, such as the Snake Plate
and the Vapor Wick to appeal better the needs of outdoor athletes, differentiate the products
in the market and provide competitive advantages.
The Snake Plate consists of a forefoot plate that wind back and forth between the medial and
lateral sides of the foot. Because it is not one solid element, it is not as uncompromisingly rigid
from side to side and front to back. The result is a forefoot plate that allows the foot to do
what it is physiologically designed to do: flex, bend, and contort to changing terrain. At the
same time, the Snake Plate™ delivers rigidity where and when it is still needed. The thickness,
composition and size of the Snake Plate™ vary from style to style as appropriate.
On the other hand, Vapor Wick moves moisture and sweat away from the skin to the outer
surface of the fabric where it can readily evaporate. This process is accomplished by the
capillary action of hydrophobic fibers. Capillary action moves moisture and sweat in all
directions from where it is abundant (the user's skin) and transports it to areas of lesser density
(the fabric's outer surface). The removal and evaporation of sweat and excess moisture helps
to keep the skin dry and comfortable. (http://eu.thenorthface.com/technologies/footwear/snake-plate)
Today, there are 10 footwear items in the market using this formidable technology.
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10. The North Face - Brand Analysis
c) Equipment
The North Face has developed a sizable
number of equipment that satisfies the
needs of different activities such as climbing,
hiking, trek and travel, running and snow
sports. The brand has original and
ergonomic designs classified by color
family, size and TNF type and technology.
The products deliver exceptional
accommodation with the most innovative
of technical features. The product line
includes daypacks, sleeping bags, tents,
Tech packs and travel bags.
F.6. Mountaineer Athlete
The company develops five tech packs items using the X-Radial Suspension System, which
allows swaying motion and eliminates the additional burden of kinetic friction that packs
typically induce. This system brings more support and ventilation back panels that share the
same durable, shape retaining, and comfortable characteristics utilized in the North Face EVA
footwear line. (http://eu.thenorthface.com/technologies/equipment/x-radial-suspension-system)
Sustainability, innovation and high performance are the core features of the company brands.
The North Face counts with an assortment of items that makes easier the customer search to
satisfy their needs.
o TNF Sustainable Journey
The North Face has been coming out with more sustainable products like the recycled
polyester Denaly jacket. The company refers to sustainability as a journey and the brand
heritage. They are making products out of recycled materials or organic cotton and have very
strong sustainability initiatives and a platform to change how they people think, act and
operate.
For the company, product innovation involves using technologies and fabrics that continue to
provide the high performance that not only their customers are accustomed to, but also to
eliminate the use of harsh chemicals and excess materials. PrimaLoft Eco Insulation is a good
example of the type of environmental preferred ingredients the company uses to make their
products. In fall 2008, they transitioned the entire line of insulated boot collection to the
PrimaLoft Eco insulation that contains 50% recycled content. PrimaLoft Eco fibers are produced
from post-consumer products and post-industrial plastic waste.
In August of 2008, the company announced more green initiatives. One of them offset 100
percent all North American facilities’ energy use. The company also buys renewable energy
credits from Bonneville Environmental Foundation. It has also signed on with BlueSign, an
organization that helps the textile industry understand the chemical impact of the production
process.
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11. The North Face - Brand Analysis
The company is also supporting the Recreational Performance Outerwear Apparel Act, the
new legislation that supports consumers and promotes advanced U.S. textile technologies. We
will cover more about The North Face sustainability and conservation journey in the next
section.
o Company business model
The North Face business model supports
the individuality of their lifestyle brands,
each of which has their own
management team focused on their
consumers and customers. The
company wants its customers to take a
hike -- or take a stab at climbing Mount
Everest -- as long as they're packed with
its products.
F.7. The North Face USA store (the photo on the left)
The brand is sold through retailers in all channels of distribution from mass to department to
special retailers in USA and in international markets. TNF products are distributed in specialty
sporting goods stores in North and South America, Europe and Asia, throughout more than 250
namesake stores operated by third parties in Europe and Asia, some 50 company-owned
European and US outlets and on the internet. The company sells the products directly to
consumer over the website and other online partners.
Of the company’s total revenues, 30% are in international markets, primarily in Asia and 17%
are direct-to-consumer through TNF-operated retail stores and e-commerce sites (which
includes stores and internet sites in international markets).
Today, 16% of the products sold are
manufactured in TNF-owned
facilities and 84% are products
obtained from contractors, primarily
in Asia. A combination of TNF-
owned and contracted production
from different geographic regions
provides flexibility and a competitive
advantage in their product sourcing.
F.8. TNF channel of distribution and production plants.
11
12. The North Face - Brand Analysis
The company will continue to manage its supply chain from a global perspective and adjust as
needed to changes in the global production environment.
The North Face operates manufacturing facilities (primarily cutting, sewing and finishing)
located in Mexico, Central America, Poland and the Middle East. TNF purchases raw materials
from numerous domestic and international suppliers to meet scheduled production needs. In
some instances, TNF contracts the sewing of VF-owned raw materials into finished product
with independent contractors in the United States, Mexico and Central America.
Product obtained from contractors in the Western Hemisphere generally has a higher cost than
product obtained from contractors in the Far East but gives the company greater flexibility and
shorter lead times and allows for lower inventory levels.
All TNF-owned production facilities throughout the world, as well as all independent contractor
facilities that manufacture TNF-branded products, must comply with the company's Global
Compliance Principles. These principles, established in 1997 and consistent with international
labor standards, are a set of strict standards covering legal and ethical business practices,
workers' ages, work hours, health and safety conditions, environment sustainability or
standards, compliance with local laws and reputations.
The graphic below sums up the channel of distribution of the company:
F.9. TNF Channel of Distribution
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13. The North Face - Brand Analysis
o Sales information & Market Share
As it was mentioned in the company description, The North Face is owned by the VF
Corporation, which also owns the well-known brands Lee, Wrangler and Vans. VF doesn't
provide sales figures for its outdoor unit, and publishes only the division's revenues. The North
Face’s internal company policies don’t allow them to provide their financial information. For
the purposes of this project, the information is presented under the outdoor brand category.
Historically, V.F.'s revenue has largely been derived from its holdings in mass-market jeanswear
(e.g. Lee, Wrangler, and Rustler jeanswear), as well as intimate apparel. But as the company
sought out brands with higher growth prospects, it sold its intimate apparel unit and acquired
several luxury demin and sportswear lines. In addition to these higher-end brands, a significant
portion of the revenue is derived from the company's outdoor apparel holdings, which includes
brands such as Reef, Vans and the North Face.
For the full year of 2009, VF revenues were $7.2 million, down 6% from the total revenues of
$7.6 million in 2008. Between 2008 and 2009, net income declined from $603 million in 2008
to $458 million in 2009. The higher pension expense and foreign currency were the mains
causes that impacted earnings in 2009.
Despite the declines of 2009, the numbers look more positive for this year. VF expects 2010
revenue to rise by 3 to 4 percent as well as revenue growth in Asia to top 25 percent. The
company plans to increase its locations in China by 40 percent in this year.
The company plans to add $35 million in investment spending behind their strongest brands
and biggest opportunities for profitable growth, bringing the total increase in investment
spending in this year to approximately $85 million. These growth investments have been
targeted toward specific opportunities, including the following:
To launch The North Face first television advertising campaign in the U.S.
To enhance thenorthface.com consumer experience to drive market share gains in
Europe in order to reach new consumer segments.
To boost VF global product development and innovation platforms.
In the first half of 2010's fiscal year, the Outdoor & Action Sports businesses achieved
outstanding results. Revenues grew 10% with operating income and margin each reaching
record levels for the period.
13
14. The North Face - Brand Analysis
Global revenues of The North Face and Vans brands grew 9% and 20%, respectively. Total
revenues in the Americas businesses rose 11%, while international revenues were up 8%. Total
direct-to-consumer revenues for our Outdoor & Action Sports businesses rose 28% in the first
half, with double-digit growth in The North Face and Vans.
(“The North Face Apparel Corporation Facts”, http://www.ehow.com/facts_7397189_north-face-apparel
corporation.html#ixzz15b9P3kYh
In the second half of 2010, The North Face turnover also increased by 12% compared to the
same period in 2009. At the same time, VF International’s Action Sport brands (The North Face,
Vance & Lucy) jumped 13%. The profits raised by around 20% in the third quarter of 2010,
driven by sales in Asian markets, the high visibility of the North Face brand during the X-Games,
store sales gains, and new store openings.
In the article, “VF raises 2010 forecast, eyes acquisition”, Chief Financial Officer Robert Shearer
said VF was looking into possible acquisitions, especially in the outdoor and action sports
segments. He also mentioned that their gross margins in 2011 would be close to levels seen
this year, and its stock closed lower, although the apparel maker raised its forecast for 2010
and posted higher-than-expected quarterly profit.
(Phil Wahba, http://www.reuters.com/article/idUSTRE63T3ZL20100430?pageNumber=2)
o Market Share
Despite all the years of poor financial performance, The North Face brand has increased its
profits and revenues considerably in the last two years. The market share year to date is a
proof of the effective changes in its financial and marketing strategy that have helped the
company improve the management of its economic resources. The market share has increased
considerably from 0.4% in 2007 to 51.6% in 2010, leaving Nike and Columbia behind.
F.10. TNF Market Share results, 2010.
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15. The North Face - Brand Analysis
F.10. TNF Market Share results, 2010.
According to these graphics, the outdoor apparel sales were up because of the higher prices.
Retailers are less likely to discount and manufacturers are strictly enforcing minimum
advertised pricing agreements. Outdoor skirts, dresses and skorts also showed strong results
year-to-date.
The positive results from the brand during this year have encouraged the CEO, Steve Rendell,
to invest more money in the company for the next year and support new initiatives.
o Advertising and Customer Support
During 2009, The North Face advertising
and promotion spending was 4.6% of
Net Sales. 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 basis with major retailers in print
media, radio, internet and television.
TNF sponsor various sporting, and other
special events and sponsor a number of
athletes and other personalities. It
employs marketing sciences to optimize
the impact of advertising and
promotional spending and to identify
the types of spending that provide the
greatest return on its marketing
investments.
F.11. Dave Short’s Blog, TNF-sponsored athlete
15
16. The North Face - Brand Analysis
The company also participates in various retail customer incentive programs. Incentive
programs with retailers include discounts, allowances and cooperative advertising funds. It also
offers sales incentive programs directly to consumers in the form of rebate and coupon offers.
Sales incentives offers with retailers and, with consumers are recognized as sales discounts in
arriving at reported Net Sales (except that cooperative advertising reimbursements of
documented retailer advertising costs are reported as Advertising Expense, and free product
with purchase offers are reported in Cost of Goods Sold).
Internet websites are maintained for most of their product lines. Many of them are business-
to-consumer e-commerce sites where consumers can order products directly from TNF. Other
consumer websites provide information about its products and may direct consumers to its
wholesale customers where they can purchase its products. The company also operates several
business-to-business sites where its retail customers can order TNF products.
TNF employs a staff of in-store marketing and merchandising coordinators located in major
cities across the United States. These individuals visit customers' retail locations to ensure that
its products are properly presented on the merchandise sales floor and to inform the
customers' sales force about its products and related promotions.
F.12. The Red Flag Campaign, TNF Asia
16
17. The North Face - Brand Analysis
o Brand Management & Structure
The North Face has a formal brand management structure, consisting of 23 people including
vice-presidents, directors, managers, coordinators and brand analysts. In 2008, the company
announced changes in several key management positions, which were designed to support the
company’s turnaround strategy. Adam Ketcheson was appointed Vice President of Brand
Management, and he reports directly to the Vice President of Marketing, Aaron Carpenter.
Ketcheson, along with his team of 8 people have combined the efforts of the product
development and marketing departments to ensure that the company’s highly technical and
expedition-based tradition remains.
The North Face’s marketing and product management team is equipped to promote growth,
stability and the company’s traditional exploration-based heritage. The brand management
team is well prepared and many of them have extensive knowledge of the outdoor retail and
sportswear market. With their rich business and market knowledge, outdoor industry
experience and familiarity with The North Face’s core customers, the team has sustained the
company’s position as the industry and market leader.
The diagram of the company’s structure better illustrates the relationship between the brand
director and his subordinates.
F.13. TNF Brand & Product Structure
17
18. The North Face - Brand Analysis
In summary, the company’s operational functions are complex but they are well organized and
complete. The brands are segmented by product and market type, including: retail, online,
promotions, communications and product development. The main North Face manufacturing
plants have their own brand management structure which makes it easy for the headquarters
site to communicate and implement its marketing strategies. It’s also important that the
company standardizes the communication tools in all the sites, as well as customize its
advertising, to better fulfill its customer needs in any location.
III. INTERNAL BRAND ENVIRONMENT
o Company Culture and Environment
According to The North Face’s official website, “sustainability and conservation form the core of
The North Face pledge to advance the well-being of the planet, its citizens and those who enjoy
exploring it.” The commitment to sustainability is reflected throughout all the company
operations, everything from the product manufacturing to the employees on the sales floor—
so much that it’s truly a core component of the company’s brand culture.
The North Face has accomplished many successful sustainability initiatives, like reducing their
carbon emissions by installing a solar panel system in their distribution system, partnering with
other organizations like stopwaste.org to reduce operational waste, implementing a 100%
recycling policy and encouraging their employees to seek alternative modes of
transportation—all with the goal of creating a more sustainable environment.
F.14. TNF exploring the demand of backpacking, trekking and travel.
Their motto, “Never Stop Exploring” is a value deeply entrenched within the company and the
employees that work there. According to anonymous employee surveys on Glassdoor.com,
almost all of the employees cited the passion for the outdoor lifestyle as one of the benefits of
working for The North Face.
18
19. The North Face - Brand Analysis
The relaxed working environment and contribution to the community also topped the list. The
North Face “aspire[s] to enrich [their] communities and the environment in every place they do
business.”
The difference between The North Face and most companies that claim to be “socially
responsible,” is that The North Face actually follows through on their promise to their
community to be socially responsible in every aspect of their business, from their culture-
infused employee programs and energy efficient operations to their strategic partnerships with
organizations that share a similar mission and values.
Key Company Accomplishments
Community
Established 20 partnerships with philanthropic organizations with similar
environmental and social missions.
North Face employees work with local organizations to clean up beaches and
community parks, restore native wetlands, plant tree and remove invasive species in
appreciation for Earth Day.
Volunteers logged 700+ hours in 2008 and nearly 120 hours for the Save the Bay event
in the San Francisco Bay.
Developed an employee program that inspires employees to “Never Stop Exploring.”
Implements a fair labor code of conduct throughout all company operations.
Planet
EPA Green Power Partner: They offset 100% of their North American operations use
with wind energy through the Bonneville Environmental Foundation’s Green-e Climate
Certified Renewable Energy Credits.
Alternative Transportation Program: Developed a program that encourages
employees to commute via a carpool, mass transit, walking or biking.
Adopted the Outdoor Industry Association’s Sustainable Packaging Guidelines, which
allowed them to redesign their hangtags and shoeboxes, and ultimately reduced a
significant amount of electricity, water and paper resources.
Installed a solar panel system at their Visalia, CA distribution center and reduced
carbon emissions by an estimated 1300 metric tons per year. The system provides
about 25% of the facility’s energy requirement.
Based on a Stopwaste.org audit, made a commitment to reduce corporate
headquarter waste sent to landfills by 25% (in 2009) by redesigning office waste
system to include mixed recycling and organic, compostable waste.
Drinking Water Initiative: The North Face banned single-serving plastic water bottles
at their corporate headquarters.
Recycling: All paper and corrugated cardboard are recycled.
Commitment to use sustainable materials and recycled content
19
20. The North Face - Brand Analysis
The North Face company is a founding member of the Outdoor Industry Associations
Eco-Working Group, dedicated to developing tools that evaluate product life cycles
(and their impact on the environment.)
Sustainability Partners
Business for Innovative Climate & Energy Policy (BICEP), an
organization that works with key allies in the business
community and relevant members of Congress to pass energy
and climate change legislation.
Bonneville Environmental Foundation (BEF), a nonprofit
organization and key player in the carbon offset marketing.
Conservation Fund, Go Zero, a program that allows individuals,
corporations and communities to measure their carbon dioxide
emissions and learn helpful ways to reduce those emissions and
offset the remaining by planting trees.
EPA Climate Leaders, a voluntary EPA industry-government
partnership that works with companies to develop complete
climate change strategies.
Recurrent Energy, a leading solar power developer, and The
North Face are working together to increase the amount of solar
energy The North Face uses in the future.
Suntech Energy Solutions, one of California’s fastest-growing
providers of commercial and utility-scale solar power systems.
Stopwaste.org, an organization that provides waste audits for
corporations in Alameda County.
BD, help The North Face reduce the environmental emissions.
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21. The North Face - Brand Analysis
o Partnership Analysis
The North Face’s strategic partnership with a variety of socially responsible partners, focused
on the environment and sustainability, contributes to their overall brand character. They truly
follow through on their promise to the environment, and that integrity is something their
customer’s value. Without these partnerships and initiatives, The North Face is just another
“cause-washing,” “green washing” corporation.
Furthermore, it is rare to find a company so dedicated to their brand culture that they develop
programs to infuse the company culture within their employees and throughout all aspects of
their operations. The North Face has done an incredible job of developing a strong brand
culture through their employee volunteer and alternative transportation programs.
Employee Training and Morale
F.15. Employee Athletes
According to Glassdoor.com, employees enjoy the fringe benefits of working at North Face, the
50% employee discount, community involvement, the company commitment to sustainability,
and the pride of selling products for a market leader. Most employees enjoy working with their
colleagues, the relaxed teamwork-oriented atmosphere, and the outdoor lifestyle the company
promotes.
While all of the employees that left a review approve of company president Steve Rendall’s
leadership, most of them did not approve of the senior management and believe that there
should be a better system in place to evaluate senior management performance. A few
employees felt that great performance should be rewarded and would like more upward
mobility within the company.
The overall company culture is strong. It appears that most of the employees that left a review
believe in the company’s mission and values. Employees value the active outdoor lifestyle that
the North Face brand represents and their commitment to sustainability. Employees generally
enjoy working with their colleagues. It’s also a huge plus for employees to be working for a
market leader, a company that focuses on product quality and product innovation at its core.
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22. The North Face - Brand Analysis
There seems to be a huge opportunity on the side of the senior management to really work on
improving communication from the top down, help contribute to the growth of their
employees, give credit where credit is due and share accountability for performance.
Employee morale is never high when employees are forced to work with incompetent
managers.
Visit to North Face Store (Beverly Hills)
F.16. Beverly Hills Store
Our team visited the North Face retail store in Beverly Hills (on Beverly Dr.) and we chatted
with the assistant manager at that location. Here’s what we found out about the internal
culture:
Q. “What do you like most about working at The North Face?”
A. “Employees really like working here because we have the best products (quality wise);
we love the lifestyle, and the company culture. It’s really laid back and we all share a
love for the outdoors.”
Q. "What are the company's biggest strengths? And what are some things you would like to
improve?"
A. “We have a great marketing team and huge brand building efforts. One thing I would
like to see us push more would be to develop a more formal community outreach
program. Nike right down the street organizes weekly runs and their programs have
been really successful. And also Lululemon down the street organizes runs, yoga
sessions, and other weekly workouts. The North Face hasn’t really pushed the
community outreach that much, especially here in Beverly Hills where retail sales are
mostly a result of tourism activity.”
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23. The North Face - Brand Analysis
Our primary research confirmed our original findings that The North Face employees love the
company culture, its products and the lifestyle the company promotes. The North Face is
largely a lifestyle brand and its employees and customers love that their products reflect the
love for the outdoors and the environment.
SWOT Analysis
Strengths Opportunities
Strong brand (well known, especially with Improve internal culture
the outdoor community) Improve employee morale by giving more
Strong company culture feedback, welcoming contributions of
Huge focus on product technology (huge ideas from stuff (e.g. help to make
component of marketing/branding processes more efficient)
strategy) More training for senior management (&
Store experience (innovative kiosks, improve accountability)
friendly employees) Provide professional development for
Commitment to sustainability & the employees
community (The North Face Explore Fund) Increase community involvement and
– embedded throughout company outreach projects
Expand product offerings (e.g. cycling)
and sponsor athletes in those sports
Weaknesses Threats
Employee morale is low (both at the retail Competitors, like Patagonia, have a much
level and at the corporate level) stronger company culture, better benefits
Employees do not have high opinion of (i.e. in a way that can attract higher
management quality talent)
Products perceived as “too expensive” to Other competition, like Columbia
many people Sportswear is perceived as “more
Difficulty communicating technological affordable” and “better value”
innovation Knockoffs rampant in Asia (& also theft of
Community outreach efforts not as products) which impacts the brand
successful as other active lifestyle brands Involved in a frivolous lawsuit with “The
like Nike (e.g. running club) South Butt”
SWOT Summary
Strengths
The North Face’s biggest strength by far is a strong brand that resonates with the outdoor
community and their company culture, which is deeply rooted in a commitment to the
environment and sustainability. Another huge strength is their investment in research and
development in order to make the most high tech gear available.
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24. The North Face - Brand Analysis
Their investment paid off because according to our independent customer survey, most of the
respondents believed that The North Face offers the highest quality products. The store
experience is another plus. The environment inspires any visitor to go out in the world and
explore. It allows people to aspire for that lifestyle.
Weaknesses
On the outside looking in, The North Face seems like a powerful force to be reckoned with.
They are adventurous, rugged, and powerful. However, according to recent employee surveys
and our own independent customer surveys, there are a few issues to address. One of their
biggest weaknesses, according to Glassdoor.com, employee morale is low—both at the retail
level and at the corporate level—and employees generally do not have a high opinion of the
senior management.
Another problem that the company faces is that there’s a disconnect between their perception
of their own product and customers perception of their products. Their customers often
perceive their products as too expensive. Also, while most people think “quality” when they
think of The North Face brand, they don’t think “innovation” or “technology.” It could be that
there’s difficulty communicating these aspects of the brand to their customers or it could mean
that product technology might not be as important to their customers as other product
attributes like comfort and durability.
Lastly, community outreach efforts have been largely unorganized and unsuccessful. The
assistant manager at the North Face store in Beverly Hills lamented that community outreach
efforts at their store were not as successful as other active lifestyle brand, like Nike. Nike in
Beverly Hills has a very popular and successful running club.
Opportunities
There are plenty of opportunities to improve internal company culture. For example,
management can improve employee morale by giving more feedback to their employees and
welcome contributions to, for example, make processes more efficient. They could also
implement a 360-performance review, where a manager directs reports as well as peers,
review their performance. This way, managers are held more accountable to act with
transparency.
Other opportunities for The North Face include increasing local community involvement like
running clubs, hiking clubs, excursions and activities. Each retail store could also be encouraged
to develop its own regional volunteer programs. Lastly, since many of their current customers
(as indicated in the results of our customer survey) also participate in cycling or running, a huge
opportunity for the brand would be to expand their product offerings and sponsor the best
athletes in those sports.
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25. The North Face - Brand Analysis
Threats
The North Face’s biggest threats come in the form of competitors that target the same type of
customer. Patagonia, for example, has a much stronger company culture and they have better
benefits (Glassdoor.com). There’s more “unity” in the Patagonia brand. Another threat would
be lower priced competitors like Columbia Sportswear. According to the results of our own
survey, companies like Columbia Sportswear have lower prices and are therefore perceived as
“more affordable” and “better value” than The North Face.
A potential threat to the brand is the rampant counterfeiting in Asia, in addition to product
theft. If the counterfeit problem increases, the brand image risks erosion. People will think
less of the brand when they see it,
Research and Development
Research, Design and Development
Process
The North Face invests heavily on
research and development and
quality improvement. They believe
in integrating consumer research
with their product development.
And while The North Face sponsors
many top athletes, they don’t just
use their athletes for marketing
purposes—they use their athletes
for product development, to help
them test out new products and
improve the quality of these
products. They go through great
lengths to find out what their
customers want in their products.
These are some of the product
attributes that are examined:
comfort, whether products can
withstand varying weather
conditions, quality, durability and
F.17. Extreme mountaineering athlete product technology.
The R&D process undergoes four stages:
1. Research & Design – In this phase, The North Face Athlete Team try products and
provide feedback to the company, making suggestions on how to improve the
products, evaluate the product performance and product quality for future
improvements, and so on.
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26. The North Face - Brand Analysis
2. Advance Material Research & Development - The North Face works with leading
materials engineers in order to create the most “technically advanced fabrics” for
clothing and equipment. Their athletes have extremely high standards and will expect
nothing but the best. An example of a fabric they created is the GORE-TEX fabric,
which is very lightweight and intended for use at high altitudes.
3. Innovative Design & Construction – In this stage, the materials engineers put the
technology to the test. For example, The North Face engineers test out the resilience
of their tents by placing them in the back of a C130 plane. Needless to say, their tents
blow the competition away.
4. Laboratory Tested & Expedition Proven – The last step of the research and
development phase of a product includes sending out products to the field and put
them to a REAL test. They send the apparel and equipment on athlete expeditions to
see how prototypes perform in the real world. For example, they tested one of their
tents in the highest slopes on 7 different continents! After they receive feedback from
their athletes, they refine each product until it meets everyone’s seal of approval.
That’s real dedication to product development.
F.17. Extreme mountaineering athlete
o Product Technology
F.18. TNF Product Technologies
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27. The North Face - Brand Analysis
The North Face provides an extensive amount of product technology on their website. They
categorize product by benefits:
Waterproof & Breathable: Hyvent
Thermal Insulation (Goose Down Fill)
Thermal Fabrics: TKA Series, Polartec
Wind Protection: TNF Apex, Windwall
Moisture Management: VaporWick
Odor Management: Minerale, Cocona
Element Protection: Ultraviolet Protection, Durable Water Repellent
Fabric Technology: Pertex, Merino Wool, Nylon Ripstop, Pertex Eco
A few product technologies more in depth…
Hyvent: Hyvent is a “superior, waterproof, breathable technology utilizing a polyurethane
coating that consists of a tri-component, multi-layer formula for waterproof protection,
moisture permeability and durability.” Hyvent is used in men and women’s apparel and is ideal
for skiing and climbing.
VaporWick – VaporWick is a type of technology, made up of “specifically engineered, high-
performance fibers, yarn types, fabric constructions and finishes” that help remove moisture or
sweat evaporate quickly. It is used in men and women’s apparel.
Boa Lacing System: The Boa lacing system is use predominantly on their footwear and they’ve
also implemented in into their daypacks. This system is made with “replaceable, ultra high-
strength, stainless steel lace cables that slide easily through the patented elongated lace
guide.” This technology is renowned for its performance and durability in snow, water, and ice
and works like a suspension system.
F.19. Product Technology
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28. The North Face - Brand Analysis
Customer Surveys: The North Face distributes and collects customer surveys at all retail
locations.
F.20. Customer Research Survey in The North Face Store (Part I)
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29. The North Face - Brand Analysis
F.21. Customer Research Survey in The North Face Store (Part II)
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30. The North Face - Brand Analysis
In summary, The North Face implements a very comprehensive and advanced R&D program,
from engineering the perfect materials to creating the perfect product and from testing those
products out in real expeditions with real athletes to conducting customer research surveys.
The lengths they go through to develop and test their products are a testament to the kind of
lifestyle the company lives by.
IV. EXTERNAL BRAND ENVIRONMENT
o State of the economy
High-end brands with high profit margins are more or less insulated from dips in the economy.
While the recession has impacted the overall sales of The North Face products, according to
the assistant manager at the Beverly Hills location, they have been steadily growing the past
several years and continue to expand worldwide.
In 2009, The North Face opened eight new stores, and six more stores are scheduled to open
within the next year. They have stores all over Asia—Hong Kong, Korea, Japan—and they have
stores around South America and Europe.
F.22. Vanity Fair Corporation Stock Quote (December 2000-December 2010)
F.23. Dow Jones Industrial Average (December 2000-December 2010)
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31. The North Face - Brand Analysis
Comparing the trends in the Vanity Fair Corporation’s stock price versus the Dow Jones
Industrial average, we can see that while VFC stock prices tend to fluctuate with the overall
market, they aren’t as volatile.
According to the U.S. Securities Exchange and Commission (SEC) website, the Vanity Fair
Corporation (VF) acquired The North Face in 2000, so now The North Face is a wholly owned
subsidiary of VF. In 2000, right at the height of the dot com boom, VF stocks hovered around
$30-$40 per share. The stocks dipped a bit around September 11, 2001. However since VF
Corp acquired The North Face brand, its stock has steadily risen, where the company reached a
little over $90 per share at its highest point, right before the great recession in mid-2007. After
the stock market crashed the stocks dipped to a pre-recession price of $50-$60, and now the
stocks have almost reached a high again.
While most retail stores are still reeling from the weak economy, The North Face and Vanity
Fair Corporation have been doing really well since a low in January 2009, and they’ve been
growing steadily since they acquired The North Face in 2000. Their steady growth and
performance are a testament to the strength of their brand, especially since retail sales for
companies with weak brand identities have been lackluster over the past few years.
o Selling Place
From our primary research, via interviewing company
employees, we discovered that while they do operate
their own retail stores and sell directly to customers
online, they do most of their business through 3rd party
retailers. The North Face distributes their products to
thousands of wholesalers worldwide that then turn
around and sell the products directly to consumers. The
North Face also operates their own retail stores. There
are approximately 36 retail locations in the United States
F.24. The North Face, Beverly Hills
and dozens more worldwide. The North Face’s authorized
retailers include Sports Authority, EMS, Moosejaw Mountaineering, Urban Outfitters, Hudson
Trail Outfitters, Great Outdoor Provision, Mountain Gear and REI.
o Retail Store Environment
The North Face retail store environment is unlike any other. As you walk into the store, you
will feel like you’re walking into a store full of possibilities for adventure. Water cascades down
one side of the entrance. Each visual element of the store, from carved out entrance way, to
the rocks laid out next to the merchandise, to the setup of the tents—makes the adventurer
inside of me feel right at home. Interactive kiosks are placed at the end of each aisle so that
customers shopping in the store can experience the great outdoors in these videos, which
typically display extreme athletes engaging in their outdoor sports and excursions.
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32. The North Face - Brand Analysis
F.25. More pics of The North Face store in Beverly Hills
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33. The North Face - Brand Analysis
o Official Website
The North Face’s official website showcases the company’s athletes, from the snowboarders
and skiers to the divers and mountaineers. Web visitors can shop by equipment type, activity,
or product collection. The “Never Stop Exploring” blog features TNF athletes on their
adventures and expeditions, from big free wall free climbs around the world to the 3,000 El Cap
summit in Yosemite. The athletes record videos and write blog posts about their experiences.
The North Face is very much an aspirational brand. Their customers can aspire for the extreme
outdoor lifestyle that the company promotes, the “never stop exploring” lifestyle. The North
Face athletes can serve as role models and inspiration for their millions of customers. While
there is a huge emphasis on technological innovation and product quality, the images of
athletes and explorers on the website demonstrate what they can do with the actual products.
The hero in those stories is the athlete, not the product. The products allow them to explore
the depths of the world, and they help the athlete perform to the best of their potential
F.26. The North Face Official Web Site
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34. The North Face - Brand Analysis
F.27. “Never Stop Exploring” blog for North Face Athletes and Community
o Third Party Retailers (Online and Physical Retail Locations)
We conducted a quick Google search for the term “north face” and a number of 3rd party
retailers popped up in the results including: Macy’s, Zappos, REI, Backcountry.com, MooseJaw,
Travel Country, Outdoor Brand Shop and dozens of others.
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35. The North Face - Brand Analysis
F.28. Authorized Retailers via Google Search
F.29. Authorized Dealers and Vendors
o Expansion
The North Face is currently expanding worldwide. They are slated to open several more stores
internationally within the next year.
They are also expanding their target market to include other extreme action sports. This year,
they are sponsoring the Winter X-Games this upcoming snow season.
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36. The North Face - Brand Analysis
Category Analysis
The North Face belongs in the “outdoor apparel” category. According to a recent press release
from the Outdoor Industry Association, outdoor product retail sales only grew slightly from
the previous year—2.3% to be exact. They attribute the slow growth to “lingering weakness in
the economy and continued lack of consumer confidence.” In the past, outdoor retail products
were more of a luxury, than a necessity, so since the economy is still weak, customers are
buying on an “as-needed” basis versus a “want” basis.
The Outdoor Industry Association does expect an increase in sales as the winter months
approach and when people will be engaging in more winter sports. In fact, outdoor apparel
sales increased 44% between the first week of October 2010 and previous week. In the
Independent Outdoor Specialty channel, sales increased a mere 0.4% from the previous month.
In contrast, the economy has not impacted The North Face in the same way the outdoor
apparel industry as a whole has been affected. This is most likely due to the fact that The
North Face is a premium brand, targeting educated high-income individuals or young
professionals, ones that have not been impacted too much by the weak economy. They have
been opening up new stores despite the recession and only have plans to grow and expand.
Competitive Analysis
We are going to compare The North Face to the following three brands: Patagonia, Columbia
Sportswear and Nike. Patagonia and Columbia are in the same category of “outdoor” lifestyle
brands, whereas Nike targets a broader audience. Nike, however, has recently entered the
outdoor sportswear category with their “Nike 6.0” outerwear product line.
Patagonia
Mission Statement: “Build the best
product, do no unnecessary harm, use
business to inspire and implement
solutions to the environmental crisis.”
The mountaineer Yvon Chouinard’s founded Patagonia. Patagonia, like The North Face, is a
company that is deeply committed to preserving the earth and creating sustainable products.
In fact, in 1972, Yvon Chouinard developed the idea of “clean climbing” after he found that the
steel pitons Patagonia manufactured damaged rocks. He then developed aluminum chocks to
replace steel pitons. This is just one example of their deep commitment to preserving nature.
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37. The North Face - Brand Analysis
Core Value Proposition: Fabric technology (e.g. e-fibers, Gladiodor Garmet Odor Control,
Performance Baselayers); commitment to the environment and social responsibility.
Target Market: Slightly older market than The North Face group, serious about outdoor
adventure, socially responsible and committed to preserving nature
Brand Identity: “While actually a physical place, the name Patagonia also suggests an untamed
wilderness that transcends any one singular experience. In this way, the brand name is
aspirational for users seeking to interact with wild nature” (Patagonia Brand Analysis on
Slideshare.net)
Store Environment: They operate about 21 retail stores around the United States.
F.30. Screenshot of Patagonia Official Website
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38. The North Face - Brand Analysis
F.31. Patagonia Store
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39. The North Face - Brand Analysis
Columbia Sportswear
The Columbia Sportswear Company is
positioned directly against The North
Face and Patagonia. While the former
target the extreme outdoor adventurers,
Columbia Sportswear appeals more to
the casual outdoor enthusiast.
They believe that “the outdoors isn’t all about remote expeditions or climbing the world’s
highest mountains. Anyone can enjoy the outdoors.” They are definitely catering to a broader
crowd. Columbia Sportswear is sold in over 100 countries worldwide.
Core Value Proposition: Product technology, branded as the family of Omni technology,
focuses on comfort. Core technologies serve the following functions: thermal comfort, water
repellent, lightweight, advanced traction, sun protection, advanced evaporation, advanced
cooling, waterproof and breathable.
Target Market: The casual outdoor enthusiast
Brand Identity: “Family business gone global”
Store Environment: Of all the outerwear companies, Columbia Sportswear is the one that looks
and feels more like a traditional department store.
F.32. Columbia Sportswear Official Website
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40. The North Face - Brand Analysis
F.33. Screenshot of Columbia Sportswear Official Website and Retail Stores
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41. The North Face - Brand Analysis
o Nike
Nike is the world’s leading supplier of athletic
shoes and apparel. Each product line is
branded: Nike Golf, Nike Pro, Nike+, Air Jordan,
Nike Skateboarding, etc. Nike sponsors top
athletes from all over the world, from Tiger
Woods in golf and Roger Federer in tennis, to
Lance Armstrong in cycling.
Nike’s marketing and branding strategy is a key component to their huge success. They are
positioned as a premium brand and their core focus is on product design. Their swoosh logo is
one of the most recognizable logos in the world, and their “just do it” slogan is just as
recognizable.
Nike contracts with factories in developing countries like China, Indonesia, Vietnam and
Mexico. They have been found to violate minimum wage laws in some of these countries.
Also, because Nike manufactures product at such a large scale, their operations make a
negative impact on the environment.
Core Value Proposition: Footwear design, they work with athletes to design the best shoe for
athletes
Target Market: Nike targets the mainstream athletic crowd. They believe that “if you have a
body, you are an athlete.”
Brand Identity: athleticism, driven, competitive
Store Environment: Each Niketown store is a huge multi-level wonderland of athletic apparel.
F.34. Screenshot of Nike homepage on official website
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42. The North Face - Brand Analysis
F.35. Nike Union Square, San Francisco
F.36. Nike 5th Ave. New York City
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43. The North Face - Brand Analysis
F.37. Nike ID Store, London
F.38. Nike Downtown, London
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44. The North Face - Brand Analysis
o Competitor SWOT Diagram & Summary
Strengths Weaknesses Opportunities Threats
Product Product Line
Communicating Competitors
Technology, Expansion,
The North Face product seen as “better
Company Culture, Technology
technology value”
Trendy Branding
Product
Limited sales
Technology, Seek
channels could
Company Culture, partnerships
limit company Competitors
Patagonia Genuine with more
growth, not as more “trendy”
commitment to wholesalers and
accessible as
environment & retailers
other brands
social change
Product Not likely to All other
Columbia Create sub-
Technology, become a cult competitors are
Sportswear brands
family brand brand more popular
Plenty of small
Image problems, Can expand into
Global Brand, niche brands
Nike ran into troubles the outdoor
Market Leader with very loyal
with labor laws sportswear
followings
o Summary
Patagonia is the most serious threat to The North Face. Both companies target the serious
outdoor athletes and adventure seekers. The North Face is the trendy brand of the two, hugely
popular among college students and widely available nationwide in thousands of retail
locations. Thus, The North Face has more mass-market appeal. In contrast, Patagonia only
operates a handful of retail locations in areas that aren’t as populated, which is part of their
distribution strategy. Patagonia does not want to be a trendy brand.
The North Face’s marketing strategy focuses on the athlete, the potential of the athlete, the
athlete performing in TNF apparel and gear. In stark contrast to this strategy, Patagonia
focuses on the clothing, not the model. Patagonia places emphasis on fabric technology in
their marketing and only showcases the clothing on their website and catalogs. This is an area
where both companies can make an improvement. Since Patagonia is a lifestyle brand, their
images should inspire their target market and inspire them to explore the possibilities with
their amazing product technology.
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45. The North Face - Brand Analysis
And while The North Face invests heavily in research and development, their customers only
think about comfort and durability when they think about the brand. Thus, there’s opportunity
for The North Face to ramp up their product technology marketing efforts.
While TNF, Patagonia and Nike all have passionate fans, Columbia Sportswear is the company
least likely to develop a cult following because they target such a mass audience. Their goal is
to provide comfortable clothing to “anyone” which is a poor way of defining their customer
profile. The casual outdoor enthusiast is not something most people would be fervently
passionate about, nor would anyone be jumping at the chance to identify with that customer
profile. “The extreme outdoor athlete,” “mountaineer,” “world-class athlete”—those are
terms that people can get excited about.
Nike recently started an outdoor apparel product line, but it has not gained the traction their
other brands have gained, so we have yet to see if this brand will be a success. While they are
one of the most popular and well-known brands in the world, and although millions love them
because they sponsor some of the top athletes in the world, the company has run into host of
image problems. They manufacture abroad in developing countries and have been found guilty
of violating child labor laws in Vietnam, as well as contributing a large amount of damage to
the environment through their manufacturing operations. Nike has recently implemented new
programs to offset that negative impact, but people don’t perceive it as a genuine commitment
to the environment, since it was never part of their corporate culture or their company culture.
It seems to be something they’re doing because it’s “trendy.”
In sum, all four companies have incredibly strong company cultures and each has their own set
of strengths and weaknesses, as mentioned in the SWOT analysis. TNF and Patagonia are both
extreme active lifestyle brands, deeply committed to corporate social responsibility, the
environment and social change. Columbia Sportswear is a more family oriented company that
also cares about the nature preservation and enjoying the outdoors. Lastly, Nike, one of the
most celebrated brands in the world, is committed to designing the best shoes for athletes.
V. IDENTITY INTERROGATIVE
Prospect -- Customer Behavioral Groups
The North Face wants its customers to take a hike -- or take a stab at climbing Mount Everest --
as long as they're packed with its products. The customers range from normal people who
purchase branded clothing for simple activities such as running, biking and to great athletes
who take part in Olympics and other physical activities.
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46. The North Face - Brand Analysis
F.39. Fair labor and TNF people
Demographic Profile
The North face customers are usually
single middle-middle or upper-middle
class people, whose main occupation is
teaching or having part time summer
jobs. They are college or professional
customers between 25 to 45 years old.
Their income ranges between $40,000
to $60,000 dollars. They are consistent
users with heavy frequency of
purchase and conduct searches on the
Internet.
Geographic Profile
The North Face is located in major areas
like USA, London, Chile, Canada and
Australia, where the weather and place
conditions are optimal to practice
extreme activities including hiking,
mountain climbing and skiing.
Customers in these locations usually live
in suburbs or rural areas. They are
mostly physical active and take great
interest in these activities as part of their
F.40. Extreme athlete in 100 running marathon
life or trends.
Behavioral Profile
The North Face customers are interested in
running in marathons and they are
environmentally aware. They enjoy being
independent and typically purchase high
performance products. They are always pushing
themselves to the max.
F.16. Picture taken from the TNF online magazine
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47. The North Face - Brand Analysis
Psychographic Profile
The company targets prospect customers
who are trying to explore new locations via
outdoor activities like running. They are
generally people who are trying to fit in the
new environment or society. A great
majority of West Los Angeles residents, for
example, are into fitness.
F.41. Expedition in South America
We conducted a customer survey for current North Face customers. The survey consisted of
seven questions and 30 people responded to the survey. The results are as follows:
What kind of outdoor activities do you participate in?
Almost half of the respondents practice hiking, followed by running and biking. The company is
satisfying one of the activities that the market likes to do at most and its covering a little of the
running target but no the people that do biking; so this could be a good opportunity for TNF to
include another product line to its wide assortment of products.
What comes to your mind when you think of North Face?
With this question we measured the positioning of the brand: “What attributes comes first to
the customer’s mind, when they think of The North Face brand?” Most of the people associate
the brand with quality, outdoor gear and durability. This means that The North Face outdoor
clothing line is well positioned in the market mainly because of its quality. But it’s important to
mention that 7% of the people also think the brand is expensive. We are going to consider this
information in the Brand Plan section to make some suggestions about how to improve the
perception of the brand.
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48. The North Face - Brand Analysis
Reasons why you purchase North Face products and not other brands?
41% of the respondents usually buy the North Face products because of the quality of the
materials; 23% for the style and, 20% for the versatility. Once again, quality is considered the
core value of the brand that encourages the target market to buy.
What products do you buy most from North Face?
Jackets, backpacks and vests are the products that the respondents buy most from the channel
of distritubtion. Some of them, mentioned the winter clothing as another product that they
buy more. However, TNF clothing gear line is very extensive. For purposes of this analysis, we
disregard these responses and selected the answers that provided more detailed information.
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49. The North Face - Brand Analysis
According to the assistant manager of TNF store in Bervely Hills, the outdoor gear is the line
with the highest revenues (60%); so this survey confirm our findings.
How do you perceive The North Face customer service?
The customer service of the company is perceived as good by 60% of the respondents. This
result speaks very well about the company efforts in offering the right product at the right
place with the best service possible. Since the brand is in the category of service sensitive with
heavy competition; the company has developed an efficiently marketing strategy where
achieving the customer’s needs and, finding new ways to satisfy them have become in its main
objective.
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50. The North Face - Brand Analysis
Positioning
North Face faces competition with stores in the same category such as Patagonia, Columbia
Sportswear and to a lesser extent, Nike. They all offer good quality, high performance products
at a premium price and high-level of comfort. The North Face has positioned itself as offering
high quality, durable and sustainable products—products that have proven to last longer and
withstand extreme climatic conditions.
The perceptual map below shows The North Face product positioning based on its
performance and comfort. The chart of benefits offered by brand is another good source of
information, illustrating how the customers perceive TNF brand compared to its main
competitors on attributes such as affordability, durability and style.
In general, the principle benefit that customers see in The North Face brand is comfort
followed by performance. However, the brand is also perceived as unstylish and expensive.
Competitors like Columbia Sportswear are better rated in performance but it does not have the
same level of comfort that TNF and they are perceived as expensive and slightly durable.
Meanwhile Nike is perceived as the most durable brand with a high level of comfort, good
affordability but lacks performance for extreme sports. Mizuno is the brand with the highest
score whose core benefits are affordability and durability.
These graphics show useful information of the brand and its closest competitors. It helps us to
understand the perception of the brand in the costumer’s mind, as well as indentify which
benefits are the biggest opportunities of TNF. We will make some suggestions to the company,
in the Brand Plan, based on all our findings in the Identity Interrogative.
As customers, we feel committed to the brand and we would like to see it ahead of the
competition in all its product lines.
F.42. Product Positioning – Perceptual Map
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51. The North Face - Brand Analysis
F.43 Benefits Offered by Brand
The Target Market Discovery Grid chart shows the perception of the brand between the
company and the target market. There are some interesting differences that might be
influenced by the product line and the demographic and psychographic characteristics of this
market.
F.44. Target Market Discovery Grid
According to our survey, customers would buy products that
o Are good quality
o Supports their needs
o Is a trust worthy brand
o Most of them would like to be loyal customers to products that involve
physical activity like running shoes, winter jackets, etc.
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52. The North Face - Brand Analysis
Quality comprises a large part of The North Face’s brand equity and it is included in the mission
statement of the company. 56% of the respondents think that TNF products have excellent
quality, 23% rated them as “good quality” and the rest think they are “Ok.”
These answers demonstrate that the efforts of the company to communicate its core value
proposition of high quality have been successful. The marketing campaigns driven by the slogan
“Never Stop Exploring” and “We Never Stop Innovating” have spread the message of
innovation and durability to almost half of their customers.
Strategic Personality
Our research showed that The North Face is an active performance-oriented brand with an
adventurous personality. The brand’s life motto encourages their customers to push
themselves to the limit. Innovation and high performance are the core values that drive the
brand personality.
Brand identity summary
North Face has been creating high-performance, high sustainable and innovative apparel,
footwear and other accessories for intense outdoor activities, classy urbanites and other
outdoor enthusiasts. They all seem to seek the best, comfortable and high endurance products.
The brand is available in 3,000 retail locations around the world—the latest one is based at
Beverly Hills—and as stated by the chairman Ken Nisch, “As The North Face always has
discriminating wholesale distribution, its best-class positioning was an easy fit with the Beverly
Hills location.”
The company believes in creating new and exciting products to maintain long-term customer
relationships and keep their brand at a great and trustworthy position. And as they stand
strong by their motto ”Never Stop Exploring,” they have established a brand that provides a
sense of power and emotional connection. The technical aspects of their products gel well with
the emotional journey. Their store itself has a great blend of interior designing material from
all over the word; Indian wedding chests, contemporary decorations like stainless-steel
columns, all of this sum up to North Face being a combination of an emotional and tech-savvy
company that believes in providing the best.
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