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... el of modern fashion. The North face is a very popular name in outdoor apparel and we feel that through implementing effective marketing strategies that this popularity will carry over to our sneaker line. The North Face/ Triple Divide Mid ($ 74. 95) This sneaker is made of prime Weather tuff waterproof leather built to keep the foot warm and dry through treacherous terrains. This sneaker offers an integrated webbing eyetoy lacing system that allows for a uniform, snug fit.
It has a Firm X- 2 midsole to add support and stability while maximizing comfort. The Triple Divide has a self-cleaning multi-dimensional lug design to provide maximum trail traction. The mid-cut of the sneaker provides additional ankle support. This product costs an average of seventy-four dollars and ninety-five cents. The North Face/ Triple Divide ($ 69. 95) This sneaker is designed primarily for lightweight trail activities.
The interior is lined with wicking material known as Drive designed to keep your feet drier. The nubuck leather uppers are partially seam sealed and constructed with a full tongue to create a barrier against most elements. The sneaker also has a full-length polyurethane midsole which is more durable than most and adds support and stability. This sneaker has an average cost of sixty-nine dollars and ninety-five cents.
The North Face/Sawtooth Ridge (79. 95) This sneaker has an all-terrain outsole matched with a dual density midsole that is engineered for both support and cushioning. The toe-box of the sneaker is composed of a rubber toecap for maximum protection. It is less flexible in the forefoot than most trail runners making it more useful on a rugged outdoor terrain. This sneaker costs sixty-nine dollars and ninety-five cents. The North Face/Kuna Crest ($ 59. 95) The Kuna Crest addresses the issues of stability, durability and all-terrain traction. It features a tight fit in the arch and heel to reduce slippage.
This sneaker also features a reinforced toe box, rubber toecap, and an innovative lug design for maximum traction. This sneaker is built upon synthetic leather with a breathable mesh upper, which maximize warmth and necessary circulation. The Kuna Crest costs about fifty-nine dollars and ninety-five cents. 2. 5 Keys to Development Diversification of distribution. Implementing effective marketing strategies to achieve maximum consumer awareness. Maintain competitive pricing levels.
Gain competitive edge by further developing patents and new modernizations to keep hold of technological dominance. 2. 6 Critical Issues North Faces sneaker line is currently achieving positive revenues, however we plan to take a capitalistic approach to maximize profits within the industry. North Face plans to branch out the distribution of our products to a larger line of retail distributors create for. We believe that effectively marketing our products to the general public will us a greater horizon of consumers, while also steering us towards achieving a greater share of the marketplace. We anticipate a highly profitable future, and plan to generate a new standard of sneaker for the entire industry for years to come. We plan to utilize our strengths in order to properly execute the necessary strategies to make the most out of all of our obtainable opportunities. 3. 0 Mission North Face is committed to offering the highest quality of sneaker at the most reasonable of prices.
Due to consumers recent interests, North Face is determined to provide highly functional, and technological performance-oriented products. North face is dedicated to achieve and preserve customer loyalty and deference through providing products for them, which are second to none. 3. 1 Marketing Objectives The North Face goal is to increase brand awareness by projecting a high quality, technically sophisticated, genuine image that may appeal to professional, and serious outdoor fanatics, as well as a much broader segment of consumers. 1. To become a fierce competitor, and to gain a greater hold of the total sneaker industries market share by maintaining 20 % of total sales annually. 2. To diversify distribution of products from specialty to all major retail sneaker stores within four years, which will account for 55 % of our total annual revenues. 3. To appreciate a 21 % increase in our total revenues to year prior. 4. To increase general consumer awareness of The North Face product line. 5.
To broaden the horizons as to the level of total person purchasing our products. 3. 2 Marketing Strategy Our Marketing strategies are built on a foundation designed to go above and beyond consumers expectations. We create synergy between employees in all of our business units in order to properly develop production strategies in order to ultimately gain a competitive advantage over our competitors. We recognize and capitalize on each of our distinctive competencies within the industry. North Face focuses on appropriately emphasizing short and long term objectives in order to bring our missions, objectives, and anticipations of the foreseeable future into a perfect dovetail. Target Market: Outdoor enthusiasts, health conscious individuals, and general sneaker consumers aged 5 - 75 Positioning: Highly innovative authentic performance sneakers, which promote comfort and performance, through state-of -the-art technologies which support agility, quality, and ergonomics. Price: Priced competitively in the marketplace, between $ 59. 95 and $ 105. 95.
Service: Technically superior products, capable of withstanding the most extreme conditions. Offer a fine union of style and comfort, through the fusion of design and technology, all for an equitable price. Sales Promotion: To develop sales promotions such as discounts and Reward points in order to enhance consumer awareness and loyalty. Advertising: Develop valuable campaigns through product distributors to heighten product awareness as well as to attract perspective customers. To campaign on the basis of style and quality to individuals who are not outdoor enthusiasts and who have not yet tried North Face products. Marketing Research: Plans to surveys and to produce survey analysis, to conclude effectiveness of our campaigning and overall satisfaction with our products. 3. 3 Financial Objectives 1.
Revenue of $ 298, 991, 000 by year-end to realize a growth rate of 21 % from prior year. 2. Total expenses incurred maintained at a maximum of 25 % of sales 3. 4 Target Marketing: Our three primary targets consist of the following: 1. Outdoor enthusiasts who find leisurely time to explore Mother Nature. This group is typically man and women between the ages of 18 - 35. This group derives much pleasure from our products, and holds a lot of trust in North Face. This group does not mind spending discretionary income on our sneaker products because they act as a luxury for them, in providing great comfort and protection for all of their active needs. 2.
Health conscious individuals whom are shopping for high quality exercise equipment to meet all of their workout needs. This group usually consists middle class men and women between the ages of 25 - 55 who are searching for new energy and health in their lives. 3. Our other consumers consist of all people ages 5 - 75 who are searching for a sleek stylish look, along with a comfortable feel in a sneaker. This group is limited in their loyalty to the brand, due to the vast level of competition within the industry. 3. 5 Positioning, and Marketing Mix The North Face is the leading designer, distributor, and marketer of technically sophisticated outdoor apparel and equipment. Over the past thirty four years, our company has built a strong and widely recognized reputation for high quality, innovative products, which has established The North Face as the worlds premier brand of outdoor apparel and equipment. We design and distribute a broad range of products all under The North Face brand and all backed by a lifetime manufacturer warranty.
Our products include high-performance outerwear, skiwear, tents, sleeping bags, backpacks, daypacks, and Tek-ware - a unique line of one hundred percent not cotton functional sportswear. Our reputation for quality, performance and authenticity differentiates and exemplifies our brand. Our ability to develop technically advanced and superior products, capable of withstanding the most extreme conditions is the reason why so many customers have chosen The North Face. The knowledge that the North Face has gained through their development process has allowed us to create hundreds of new products over the past several years that appeal to an increasingly wider consumer audience from extreme athletes to weekend athletes to the tranquil consumer. Our line of sneakers consists of highly advanced, comfortable shoes that are as appealing to the eye as they are the foot. We strive to meet the demands of the consumer.
We accomplish this not only by providing our products but also by aiming to stimulate active lifestyles for such a broad range of people. We provide top of the line products so that each time our customers make a purchase, they may return home with a sense of relief and the knowledge of knowing that they bought a name that they can trust. 3. 6 Marketing Research The North Face, Inc. , will continue to employ the most competent individuals, so that new innovations and technologies will always be prevalent in the North Face sneaker product line. We will continue to practice customer-first orientation, and we will forever strive to meet the demands of the consumers. Our company places much emphasis on consumer feedback, and thats is why we plan to conduct and formally analyze consumer surveys in order to determine the success of our marketing tactics, as well as to determine consumer product satisfaction. 4. 0 Financials, Budgets, and Forecasts Our marketing plan requires approximately 263, 903, 000 in total revenue for this year. By 2004, we plan to experience sale revenues of over 350 M. We are currently operating with total expenses maintained at 25 % of sales, and it is our goal to make sure that level of expenses is maintained for the foreseeable future.
our plan assumes the following: 1. Experience a growth rate of 21 % from newly built consumer interests, advertising campaigns, concerns for health, economic prosperity, increased population, and an increase in North Face brand loyalty. 2. Shifts in sales occur during the New Year time frame, as well as during the summer months. These changes of interests effect the P/L, however the effects are temperate 4. 1 Sales Forecast Revenues are expected to increase by a rate of 21 % by year-end.
There after, we anticipate a very similar rate of growth for the foreseeable future as resolute by our marketing objectives. A 5 % annual growth rate is expected to be observed for heath conscious individuals. A 7 % annual growth is expected to be observed for Outdoor Enthusiasts, and a 9 % increase in growth is expected for other consumers. Potential Sales Forecast 2000 2001 2002 2003 2004 Outdoor Enthusiasts $ 116, 754, 750 $ 124, 927, 583 $ 133, 672, 513 $ 143, 029, 589 $ 153, 041, 660 Health Conscious $ 52, 879, 400 $ 55, 523, 370 $ 58, 299, 539 $ 61, 214, 515 $ 64, 275, 241 Other $ 94, 268, 650 $ 102, 752, 829 $ 112, 000, 583 $ 122, 080, 636 $ 133, 067, 893 Total $ 263, 902, 800 $ 283, 203, 781 $ 303, 972, 635 $ 326, 324, 740 $ 350, 384, 794 4. 2 Expense Forecast North Face, Inc. , currently observes total expenses to cost a steady 25 % of total sales. Although we are anticipating high levels of growth, we recognize the importance of maintaining steady levels of expenses, and we plan to meet our objectives of maintaining a 25 % expense rate. 5. 0 Organization and Marketing Controls North Face Inc, is a publicly owned corporation, and is currently traded on the NASDAQ. Our objectives are only achievable by our executives, managers, and specialists effectively implementing all of our planned tactics.
We must be able to meet the needs of the market, and it is our objective to continue to offer products that excel beyond the expectations of the consumer. 6. 0 Performer Profit or Loss Statement Projected Sales 2000 2001 2002 2003 2004 Triple Divide Mid $ 63, 307, 020. 00 $ 76, 601, 494. 20 $ 92, 687, 807. 98 $ 112, 152, 247. 66 $ 135, 704, 219. 67 Triple Divide $ 73, 858, 190. 00 $ 89, 368, 409. 90 $ 108, 135, 775. 98 $ 130, 844, 288. 93 $ 158, 321, 589. 61 Sawtooth Ridge $ 42, 204, 680. 00 $ 51, 067, 662. 80 $ 61, 791, 871. 99 $ 74, 768, 165. 11 $ 90, 469, 479. 78 Kuna Crest $ 31, 653, 510. 00 $ 38, 300, 747. 10 $ 46, 343, 903. 99 $ 56, 076, 123. 83 $ 67, 852, 109. 83 Total $ 211, 023, 400. 00 $ 255, 338, 314. 00 $ 308, 959, 359. 94 $ 373, 840, 825. 53 $ 452, 347, 398. 89 Projected Expenses 2000 2001 2002 2003 2004 Promotion $ 2, 637, 792. 50 $ 3, 191, 728. 93 $ 3, 861, 992. 00 $ 4, 673, 010. 32 $ 5, 654, 342. 49 Advertising $ 5, 275, 585. 00 $ 6, 383, 457. 85 $ 7, 723, 984. 00 $ 9, 346, 020. 64 $ 11, 308, 684. 97 Maintenance $ 5, 275, 585. 00 $ 6, 383, 457. 85 $ 7, 723, 984. 00 $ 9, 346, 020. 64 $ 11, 308, 684. 97 Training $ 2, 637, 792. 50 $ 3, 191, 728. 93 $ 3, 861, 992. 00 $ 4, 673, 010. 32 $ 5, 654, 342. 49 Salary $ 2, 637, 792. 50 $ 3, 191, 728. 93 $ 3, 861, 992. 00 $ 4, 673, 010. 32 $ 5, 654, 342. 49 Freight-Out $ 5, 275, 585. 00 $ 6, 383, 457. 85 $ 7, 723, 984. 00 $ 9, 346, 020. 64 $ 11, 308, 684. 97 Property Tax $ 7, 913, 377. 50 $ 9, 575, 186. 78 $ 11, 585, 976. 00 $ 14, 019, 030. 96 $ 16, 963, 027. 46 Materials $ 15, 826, 755. 00 $ 19, 150, 373. 55 $ 23, 171, 952. 00 $ 28, 038, 061. 91 $ 33, 926, 054. 92 Other $ 5, 275, 585. 00 $ 6, 383, 457. 85 $ 7, 723, 984. 00 $ 9, 346, 020. 64 $ 11, 308, 684. 97 Total $ 52, 755, 850. 00 $ 63, 834, 578. 50 $ 77, 239, 839. 99 $ 93, 460, 206. 38 $ 113, 086, 849. 72
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Research essay sample on North Face Sixty Nine
