MARKETING OBJECTIVES
Based on current market standing, The North Face resides as the third largest shareholder for outdoor
goods with a 16% share. With the top two shares belonging to Columbia Sportswear with a
commanding share of 20% and Jarden Corporation with a 17% take of the whole. For the coming year
we plan to increase our market share by 3% overtaking that of Jarden, a Fortune Five Hundred Company
based out of Rye, New York. With the new share acquisition of 3%, The North Face not only assumes the
second highest share, but also strategically places The North Face (a VF Corporation subsidiary) within
striking distance of the market leader Columbia Sportswear, based out of Portland, Oregon. The 3% gain
will be attributed to our new marketing objective, in which we will market to young upper middle class
families. By means of new advertising campaigns through electronic and print based media. We feel
that with this campaign being implemented early January 2012 and completed no later than January
2013, we will attain our projected 3% gain and assume our position as number two in Outdoor Wear.
Upon completion, The North Face will assume a highly competitive second place position and set its
sights on the market leader Columbia Sportswear 20%.
TARGET MARKET
The primary target market chosen for this campaign would be young, upper-middle class families. The
heads of these households fall between the 25-34 age ranges. According to the MRI data, these are the
second heaviest users of The North Face brand. Moreover, the largest percentage of brand users’
ethnicity is Caucasian. The heads of these families are also college educated and employed. These
families would have an upper-middle class socio-economic status, given that the brand falls under one
of the pricier sportswear options. In addition, married individuals are some of the heaviest users of The
North Face brand, and targeting those with children has the potential to increase the sales of The North
Face junior’s line. A target market that embodies all of these characteristics would create a balance of
paying attention and catering to a large portion of users while still leaving room for growth.
Age
Gender
Ethnicity
25-34
Male
Female
Caucasian
Education
Level
College
Job Status
Employed
Economic
Class
Uppermiddle class
Marital
Status
Married
Children
Yes
ADVERTISING OBJECTIVES
To accomplish our marketing objectives, we created advertising objectives to raise brand awareness, to
encourage brand switching and maintain customer relations. Raising brand awareness includes a
stimulation of desire, appealing to target audiences with brand preference and boosting their intent to
buy. This will directly encourage brand switching by appealing to our primary market. The North Face
will also remind existing customers and maintain their customer base by advertising nationally. The
rationale behind a national campaign is that we must support our nation-wide market, distribution and
sales.
POSITIONING STATEMENT
The North Face is the best sportswear for young, upper-middle class families due to its quality,
durability, and performance. The rationale for this positioning statement is that it encompasses all of
the elements included in the campaign: the target market and all of the attributes of the brand. A
campaign built around this positioning statement will ensure that all marketing and advertising
objectives are met consistently.
CREATIVE OBJECTIVES AND STRATEGIES
The overall idea chosen for this campaign is that if The North Face is good enough for elite mountain
climbers and outdoor sportsmen, it is good enough for you and your family. Focusing on the durability
and high quality of the goods would be the best way to reach the chosen target market. An idea for a
proposed television commercial would be something like this: A group of men are nearing the peak of
one of the world’s tallest mountains. They’re all bundled up and are hauling some of the best mountain
climbing gear. The narrator is describing the conditions of the terrain, such as mountain height and
temperature. Then the camera zooms in on The North Face logo on one of the climber’s jackets. When
the camera zooms out, the screen shows a little boy wearing a similar The North Face jacket. The
announcer goes on to explain that if elite outdoorsmen trust the brand, then you can trust it too.
GEOGRAPHIC OBJECTIVES
To accomplish our geographic goals and to reach our target market, we created a national advertising
campaign. We decided to focus our efforts toward colder climates such as the western and northern
regions of the United States. In addition, we will be campaigning in the areas around the 8 North Face
flagship stores in the United States. These stores are located in 8 of the Top 25 DMA markets, so it is
vital to advertise frequently in these areas.
SHCEDULING OBJECTIVES
We will implement a flighting schedule. The North Face’s sales usually decline during the warmer
months of the year, we will focus our advertising efforts throughout the months prior to and during the
fall and winter seasons.
PROMOTIONAL BUDGET
The allocated Advertising budget for The North Face is $10,000,000 dollars (USD). The following graph
demonstrates the projected budgets allocation of advertising dollars per medium (Special Interest
Magazines, Cable TV, Spot TV, Internet website, Social Media, and Email) expressed as a percent of the
whole ($10 Million).
Advertising Budget Jan-Dec
2012
Email
Social
Network
7%
1%
Internet
Website
28%
Syndicated
TV
12%
Special
Interest
Magazine
24%
Cable TV
17%
Spot TV
11%
PROMOTIONAL MIX
The North Face adheres to a multi-pronged approach to their promotional mix utilizing both printed
based media and viral marketing. As far as viral marketing, The North Face was one of the top brands
honored by outdoor USA Magazine 2010 Social Media Awards (Trans-world Business, 2011). The awards
were given to outdoor brands who most successfully harnessed the power of modern day social
networking. Facebook ranked their top ten most “liked” pages with The North Face coming in at the
number two spot with an estimated 698,817 likes, and was ranked number one by Twitter with 23,264
followers. With this being said it is apparent that we are heavily versed in viral marketing. This being a
market we see a lot of potential in, we plan on having a slight increase in the electronic media
advertising for the coming year. We hope to attain both the number one spot for Twitter and Facebook
alike.
The North face also allocates a significant portion of their budget to print based media such as
magazines, regular print ads, and its monthly catalogue. The free catalog generates stable returns for
the VF Company, but The North Face is becoming very proficient with all types of electronic media. For
it reaches a larger specific target audience and in relation to the catalogue is more cost efficient. With
the profits for the print based media remaining constant. The North Face is allocating lots of time and
money to electronic media. Which we expect should result in a boost in our market share by year-end.
MEDIA SELECTION
1. Television
Television is an ideal medium to reach a mass audience. Approximately 99% of the households in the
U.S. own a television. In average, the U.S. (Lane et al) household television viewing is over 8 hours daily.
(Lane et al) Studies show that American citizens spend more time watching TV than listening to the radio
and reading newspapers. (Lane et al) The main advantage of television is the appeal to its audience’s
senses with the combination of images, motion, and sounds.
1.1. Network Television
Even though the cost of Network TV is expensive, it is worth to allocate part of our budget to it
because of its large reach. Network television provides programming to different TV stations and
providers. The largest TV Networks in the United States are ABC, CBS, NBC and more recently, Fox.
The pricing of new network shows is very high but it also depends in a large part on their placement
in the network schedule. (Lane et al)
Strategy:
We are aware that programs that follow proven hits have high probability of success so we will be
advertising during those shows. Moreover we will be looking for those shows that are in between
two popular returning programs such as Desperate Housewives during daytime and primetime. This
strategy will allow us to target a large audience without necessarily having to pay the amount of
money that advertising during the main popular show costs. The reason for advertising during
daytime is because it is likely that children and their mothers are watching TV during this part of the
day.
1.2. Cable Television
Households with cable television are more likely to have disposable income which fits our target
market socio-economic status of upper-middle class. Also cable television can appeal to niche
audiences with similar demographic characteristics and interests such as a passion for sports
and outdoor activities. (Lane et al) Cable’s penetration is 65% of 310,840,000 US TV households.
(Nielsen Business Media) In average, the amount of time spent watching cable TV per week is
38.35 hours per household. (Nielsen Business Media)
Strategy:
Cable TV has a relatively low cost and tends to build frequency by reaching the same targeted
audiences over a long period of time. (Lane et al) Approximately 30% of 127,544,000 cable TV
owners, fall into our target market’s age group. (Nielsen Business Media) In order to reach
young adults and children, we will heavily cover cable networks that account for a large percent
of family viewership and special interest that relates to our target audience during the first six
months of the campaign. Then, we will start using cable TV advertisements in October,
November, and December. The networks with a large family viewership percentage being
covered are Nickelodeon, Disney Channel, Cartoon Network, and ABC Family. We will also utilize
ESPN 2, The Outdoor Channel and Fit TV in order to target our customers by special interests.
Viewership percent of Cable TV
networks
80
60
40
20
0
Age group 25-54
HH with children
Nielsen Business Media
80
Viewership percent by special
interest
60
Age Group
25-54
40
20
0
ESPN 2
Outdoor Channel
Fit TV
Nielsen Business Media
1.2 Spot Television
Even though spot television is an extremely competitive market, it avoids that waste circulation
of Network TV. It would be effective to advertise The North Face during local weather reports
and sports news.
Strategy
Spot TV will be used in areas of the country with low brand awareness to increase the share of
voice of The North Face. The message will be clear and simple and will ideally make the
consumer relate our brand to technological innovation and quality. We will use daytime of Spot
TV and Primetime Spot TV.
Cost Per Thousand Homes Trend (30-second unit)
Nielsen Business Media
1.3 Television Syndication
Off network syndication reruns have already built-in audiences and can reach predictable
demographic segments. (Lane et al) This segment of the TV industry is a good option for our
brand because our target market involves young adults who are likely to watch shows that they
used to watch in earlier stages of their lives. Another advantage of reruns is the known content.
Young parents do not have to worry about inappropriate unexpected content while they watch
TV around their children.
Strategy
Syndication Television will be effective in reaching young parents. According to Nielsen Business
Media, 43% of adults fall into the age group 18-34 (which includes our 25-34 target market).
Syndication Television will be used constantly throughout the year. We will advertise our brand
during prime access shows that are likely to be viewed by young adults such as “Seinfield”,
“Friends”, “Everybody Loves Raymond”, and “That’s 70’s Show”. Another show that we are
interested in is “Lost” because it appeals to an “adventurous” kind of audience. These shows
have a high percentage of Household TV coverage as well as high ratings. (Nielsen Business
Media)
Frequency and Rating
6
5
5
4
5
5
4.2
3.9
3
5
4.2
3.3
Times per week
2
2.5
Rating
1
Hours per day
0.5
1
1
0.5
0.5
0.5
0
Friends
Lost
King of Queens
Seinfield
Who wants to
be a millionaire
Shows chosen
Nielsen Business Media
2. Special interest magazines
Advertising in magazines allow companies to reach narrowly targeted audiences. (Lane et al) An
important advantage of this medium is its portability and repeated exposure. Magazine’s strong visuals
allow companies to show their products, enhance brand awareness, and deliver memorable messages.
(Lane et al) Furthermore, subscribers of special interest magazines reflect a high socio-economic level
which is a characteristic of our target market. Most extreme sports and outdoor activities require
professional and expensive equipment. Magazines are also an effective medium to drive consumers to
look for information related to the company and its products.
Strategy
We will utilize five different magazines that reach markets with interests in sports, fitness, and other
outdoor activities: ESPN, Fitness, Outdoor Life, Sporting News and Skiing. Even though some of these
magazine titles have little circulation, their audience represents a group of potential customers because
they are already interested in the goods that companies like The North Face provide. We will advertise
in Magazines from January to June and during the months of October, November and December which
are the months prior to winter season. The following graph reveals the frequency and reach of the
selected magazines.
TITLE
ESPN The Magazine
Fitness
Outdoor Life
Sporting News
Skiing
Nielsen Business Media
ISSUES PER YEAR
26
12
10
52
7
CIRCULATION
2,108,000
1,536,000
925,000
700,000
400
3. Internet
Internet usage keeps rising, it is quick and easily available. It offers interactivity that is useful to engage
the consumer with the brand. The internet is mostly used by younger generations with higher education
and higher incomes. Young market segments tend to spend more time using the internet than any other
medium. (Lane et al) The internet has become a source to generate direct sales rather than just
advertising.
3.1. Internet Targeted Sites
Strategy
The North Face products and stores will be advertised on websites that relate to our products.
Our display ads will consist of banners with static images of our products that link to our
website. The images will call the customer’s attention and once they navigate to our website
they will be able to search for more information that will potentially lead to a purchase. This is
an excellent medium for branding.
3.2. Company’s official website
These days it is essential that every company has its own website. Official websites have more
credibility among consumers and are an ideal medium for product information, sales,
stockholder relations and current company news.
Strategy
Our website strategy will consist in informing customers about our products and company in
order to promote a purchase decision. Our website will have a link to look at our products and
their prices online with a “check out” option. Besides providing the site, we will be in charge of
keeping all the information and products availability up to date constantly every week. Through
our website we will also offer online discounts once a week as long as the customers fill out a
survey.
3.3. Social Networks
As of today, the average time spent per person on social networks is about 5.5 hours per
month. 47 % of adults who use the internet use social networking sites (Graphics.ms) 73% of
teenagers and young adults are members of at least one social network (Graphics.ms). As a
brand, having a presence on the most popular social networks has become a requirement.
There are over 1.5 million businesses with active pages on Facebook. (Graphics.ms) 11% of
American adults who use the internet have a twitter account.
Unique visitors per month
Twitter
10%
Linkedin
7%
Myspace
23%
Facebook
60%
(Graphics.ms)
Strategy
Having a company profile in the most used social networks will increase our share of voice and
market share because our customers will be in frequent contact with our company. We will
create a company profile in each of the social networks described above. Having a company
profile will require updating information constantly and responding to consumers’ needs, and
questions. Through our company’s profile page, we can also show our products and have
information about the technological aspects of our products.
3.4. E-mail
In order to maintain our market share, we will obtain email addresses from previous online and
in-store customers and advertise to them throughout the year. It is a good way to keep a
market that already has an interest in the brand’s products.
Strategy
We will use a pulsing strategy sending two emails per month to each customer throughout the
year but we will increase the number of emails during the winter season and Christmas
holidays. Given the high quality of our products, it is unlikely that consumers make purchases
too frequently so one email every two weeks will not bother customers but will increase brand
awareness and share of voice.