North Face

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Table of Contents
Executive summary3
Introduction3
Situation analysis4
Macro analysis4
Demographic4
Socio cultural4
Economics4
Technological5
Regulation5
Natural environments5
Micro analysis5
Industry assessment5
Market assessment6
Team domain6
Porters five forces analyses6
Rivalry among present competitors6
The threat of new entrants6
Bargaining power of buyers7
Bargaining power of suppliers7
Threat of substitute products7
Competition analysis7
Competitive advantage8
SWOT analysis8
Strength8
Weakness9
Opportunity9
Threats9
Skiwear industry attractiveness10
Marketing strategy10
Marketing objectives10
Promotion strategy11
Positioning11
Product decisions11
Product life cycle strategy12
Action plan12
Target market12
The 4 Ps12
Offensive warfare12
Budget13
Projected P&L13
Contingency plan13
Conclusion14
Reference15

Executive summary
The purpose of this report is study the strategy direction for The North Face (TNF) company and make market evaluation to enter into the skiwear industry. The report will review the company’s current performance in relation to the traditional outdoor equipment market and identify sustainable competitive advantage for the new product.

TNF brand image often have often been associated with outdoor sport, exercise and a healthy life style. It also has state of art in engineering of product design. These are the competitive edge and must be utilized in establishing the new market for skiwear.

Introduction
Started in 1966 in San Francisco, The North Face (TNF) is known as a high performance climbing and backpacking equipment manufacturing and distribution company. Through the 1970, the brand received increasingly popularity among outdoor athletes and began sponsoring expeditions to some of the most far flung, still largely untouched corners of the globe. Hence, The North Face mantra is Never Stop Exploring.

Situation analysis
Macro analysis
It is essential to evaluate the macro environment in order to assess the attractiveness of the market for TNF. The macro environment can be divided into six major components, demographic, socio cultural, economic, technological, regulatory, and natural environments (Walker, 2009).

Demographic
By being the market leader in the outdoor clothing and equipment segment having approximately 40 per cent of the market share, the company has a large contingent of established customer base. The age bracket of TNF’s target market could be ranging from young to middle aged customers. They vary from profession outdoor enthusiast, which is the strategic focus, to the more general camping publics.

Socio cultural
There is increasing momentum in the world of having a healthy life style, whereas hiking and skiing is considered as a suitable form of exercise.

Economics
The global financial crisis would have negative implication to the spending power of customers, not to a significant extent, but buyers would generally be more price and quality sensitive.

Technological
The technological advance could assist TNF in research and development which in turn engineer better quality product. It would help to promote brand awareness using mediums like the internet. Hence customer could be better informed about the range of products.

Regulation
The product must comply with the Consumer Safety Act. In addition, with globalized world economy, the trade barrier is lower for international expansion.

Natural environments
There is an increasingly awareness in the protection of natural environment, which are often manifested in customer enjoying the mother nature, which is favorable for the image of TNF, Never Stop Exploring.

Micro analysis
Industry assessment
1. Engineering - TNF has product which is best made for professional outdoor enthusiast, these products have high quality and design. 2. Brand reputation - TNF...
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