1.
THE NORTH FACE Athletic Footwear

2.
Competition <ul><li>Direct Competitors </li></ul><ul><ul><ul><li>Columbia </li></ul></ul></ul><ul><ul><ul><li>Nike </li></ul></ul></ul><ul><ul><ul><li>Adidas </li></ul></ul></ul><ul><ul><ul><li>Mizuno </li></ul></ul></ul><ul><ul><ul><li>Brooks </li></ul></ul></ul><ul><ul><ul><li>ASICS </li></ul></ul></ul><ul><li>Secondary Competitors </li></ul>

3.
Market Shares

4.
Ultra Marathon Mark and Mindy <ul><li> Activities </li></ul><ul><li>Hiking, mountain climbing, training </li></ul><ul><li>Sports events with friends </li></ul><ul><li>Music concerts, movies </li></ul><ul><li>Interests </li></ul><ul><li>Running in marathons </li></ul><ul><li>Enjoys being independent </li></ul><ul><li>Likes his/her job </li></ul><ul><li>Opinions </li></ul><ul><li>Always pushing themselves </li></ul><ul><li>Environmentally aware </li></ul><ul><li>Wants high performance products </li></ul>

5.
Features of Mark and Mindy <ul><li>Age: 25-45 </li></ul><ul><li>Family Life Style: Single </li></ul><ul><li>Income: $40,000-$60,000 </li></ul><ul><li>Occupation: Teacher, </li></ul><ul><li>part time summer job </li></ul><ul><li>Education: College or Graduate Social Class: Middle-Middle, Upper-Middle </li></ul><ul><li>Location: Suburbs, Rural </li></ul><ul><li>Frequency of use: Heavy </li></ul><ul><li>Brand loyalty: Genuine </li></ul>

6.
Up-and-Comers <ul><li>Y2: Young Achievers </li></ul><ul><li>C2: City Centers </li></ul><ul><li>Midscale Younger Singles </li></ul><ul><li>Second City Renters </li></ul><ul><li>Less than 35 </li></ul><ul><li>Professional, White Collar </li></ul><ul><li>High School/College </li></ul><ul><li>Use Internet for job search </li></ul><ul><li>Shape Magazine </li></ul>

7.
Product Positioning Perceptual Map • The North Face • Columbia Sportswear • ASICS • Brooks • Mizuno • Nike • Adidas Performance Comfort High Comfort Low Performance High Low

8.
Benefits Offered by Brand Brand Affordable Performance Durability Comfort Style The North Face 3 2 3 Columbia Sportswear 4 1 Nike 3 5 4 1 Adidas 1 5 4 Mizuno 5 2 3 2 2 Brooks 4 1 4 1 3 ASICS 2 5 5

9.
Target Market Discovery Grid Brand and Target Market Affordable Performance Durability Comfort Style Brand The North Face 3 2 3 Target Market Ultra-Marathon Mark & Mindy 5 3 2 1 4

10.
The Benefit Chain

11.
Benefit Segmentation

12.
Market Size and Sales Potential Cont. <ul><li>Heavy Users: 22,618,335 </li></ul><ul><li>Medium Users: 8,836,935 </li></ul><ul><li>Light Users: 1,893,627 </li></ul><ul><li>TOTAL: $33,348,897 </li></ul><ul><li>Total Sales Potential for Target Market: “ Ultra Marathon Mark and Mindy ” </li></ul>

13.
Consumer Decision Process Model Stimuli *Marketer *Nonmarketer (Promotion, W-O-M) External Search (Extensive) Exposure (Low, None) Attention (High, Medium) Comprehension (High) Acceptance (High, Medium) Retention (High, Medium, Low) Internal Search (Very) Memory (Product Knowledge Prior Experiences) (Adequate) Need Recognition (High) Search (Very) Pre-purchase evaluation of alternatives Brand purchased Consumption (Heavy) Post-consumption evaluation Divestment Dissatisfaction (Medium, low) Satisfaction (Performance, Comfort) <ul><li>Environmental Influences </li></ul><ul><li>Culture (H,M) </li></ul><ul><li>Social Class (M, L) </li></ul><ul><li>Personal Influences (H) </li></ul><ul><li>Family (L) </li></ul><ul><li>Situation (H, M) </li></ul><ul><li>Individual Differences </li></ul><ul><li>Consumer Resources (M) </li></ul><ul><li>Motivation and Involvement </li></ul><ul><li>Knowledge (H) </li></ul><ul><li>Attitudes (Positive) </li></ul><ul><li>Personality, Values, and Lifestyle (H) </li></ul>Ultra Marathon Mark and Mindy

14.
CONSUMER PROBLEMS <ul><li>Exposure: </li></ul><ul><li>Ultra-Marathon Mark & Mindy are not exposed to The North Face footwear line </li></ul><ul><ul><li>Introducing 93% of footwear this season </li></ul></ul><ul><ul><li>Few marketing initiatives have been put into place </li></ul></ul>

15.
Marketing Mix Solutions <ul><li>Exposure : </li></ul><ul><ul><li>Placement </li></ul></ul><ul><ul><ul><li>PROS </li></ul></ul></ul><ul><ul><ul><ul><li>Continuous updates on website </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In-store signage and fixtures </li></ul></ul></ul></ul><ul><ul><ul><li>CONS </li></ul></ul></ul><ul><ul><ul><ul><li>Website does not make direct sales </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Overwhelmed with abundance of in-store displays </li></ul></ul></ul></ul><ul><ul><li>Promotion : Public Relations </li></ul></ul><ul><ul><ul><li>PROS </li></ul></ul></ul><ul><ul><ul><ul><li>The North Face Endurance Challenge </li></ul></ul></ul></ul><ul><ul><ul><li>CONS </li></ul></ul></ul><ul><ul><ul><ul><li>Limited to ultra-elite athletes </li></ul></ul></ul></ul>

16.
Marketing Mix Solutions <ul><li>Exposure </li></ul><ul><ul><li>Promotion : Direct Selling </li></ul></ul><ul><ul><ul><li>PROS </li></ul></ul></ul><ul><ul><ul><ul><li>Education sales associates </li></ul></ul></ul></ul><ul><ul><ul><li>CONS </li></ul></ul></ul><ul><ul><ul><ul><li>Sales associates may misinform </li></ul></ul></ul></ul><ul><ul><li>Promotion : Advertising </li></ul></ul><ul><ul><ul><li>PROS </li></ul></ul></ul><ul><ul><ul><ul><li>Print advertisements in magazines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gift of purchase program </li></ul></ul></ul></ul><ul><ul><ul><li>CONS </li></ul></ul></ul><ul><ul><ul><ul><li>Advertisements not in preferred magazines </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Unlikely to purchase based on gift of purchase </li></ul></ul></ul></ul>