De La Salle University Ramon V. Del Rosario College of Business Management and Organization Department
THE NORTH NORTH FACE FACE CASE ANALYSIS ANALYSIS Submitted in artial !ulfilment of t"e Re#uirements in M$%&'&M Mar(eting Management
To: To:
Ms. Regina Dy
By:: By
Lim) Rapunzel *ra+e %.
, -pril /0& FACTS
%"e 1ort" !a+e 2%1!3) is t"e 4orld ’ s premier supplier of aut"enti+) innovative and te+"ni+ally advan+ed outdoor apparel) e#uipment and foot4ear. 5ts produ+ts are spe+ially made and targeted for mountaineering) ba+(pa+(ing) s(iing retailers) sporting and outdoor goods retailers. 5t "as attained t"e reputation of being a "ig" performan+e) #uality) outdoor brand. %1! is a subsidiary of t"e Vanity Vanity !air 2V!3 Corporation) 4as founded in 0677. 5ts first retail store 4as 4as establis"ed in 0678 at San Leandro) California) US-. Company Background
V! Corporation Corporation is a global apparel and foot4ear foot4ear +ompany +ompany founded in 0866 at *reensboro) *reensboro) 1ort" Carolina. -t present) V! Corporation is a 90 billion apparel and foot4ear po4er"ouse) as 4ell as) a global leader in t"e said industry. 5t "as a 4ide range and an international portfolio of brands and produ+ts. 5ts diversified business model is +lassified into five produ+t +ategories: Outdoor and -+tion Sports) ;eans4ear) Sports4ear) Contemporary Brands and 5mage4ear. Outdoor and -+tion Sports +ategory +omprises of
Smart>ool ool)) %imbe %imberla rland) nd) Lu+y Lu+y. %"e ;eans4 ;eans4ear ear The North Face) Reef) +ategory in+ludes famous brands su+" as >rangler) Lee ;eans) Rustlers) , !or -ll Man(ind) /?) C"i+ and Ro+( Republi+. Sports4ear se+tion +onsist of 1auti+a and $ipling U.S. >"ile , for -ll Man(ind) "en Doug %omp(ins) a passionate s(ier) and "is 4ife Susie opened a s(i and +amping gear storefront at San !ran+is+o 1ort" Bea+".
5n 0678) %1! begins manufa+turing. $ennet" “ @ap”$lopp a+#uired %"e 1ort" !a+e and s"ifted its fo+us from retailing a variety of produ+ts to designing and manufa+turing outdoor gears under %"e 1ort" !a+e brand. %"e first produ+tion fa+ility 4as s#ueezed into t"e ba+( of %"e 1ort" !a+e store in Ber(eley. @ap also "ired "is friend from Standford Business s+"ool to run t"e fa+tory and laun+" a 4"olesale business. %"ereafter) several outdoor produ+ts are developed and +li+(ed on t"e mar(et.
%"e 1ort" !a+e) as an outdoor and a+tion sports brand) aims to +ontinually inspire outdoor ent"usiasts to get outside and eAplore more 4it" its position “ 1ever Stop
%"e 1ort" !a+e "ilippines is under t"e rimer *roup of Companies. %"e rimer *roup is founded in 068&. -(in to V! Corporation) rimer *roup is engaged in t"e retail and distribution of premium +onsumer brands in outdoor) travel) foot4ear) fas"ion) 4ellness and urban lifestyle. %"e +ompany "as a diverse portfolio of produ+ts and servi+es. Under t"e Outdoor Category of its brand portfolio is %"e 1ort" !a+e. -t present) %"e 1ort" !a+e is among a mong t"e most 4ell(no4n brands of outdoor apparel ap parel and gears in t"e "ilippines. "ilippines. -lt"oug" -lt"oug" it "as a variety variety of produ+ts) produ+ts) %1! ba+(pa+(s ba+(pa+(s are among t"e soug"t after ba+(pa+(s to bot" eApert and amateur mountaineers) "i(ers) ba+(pa+(ers and even =ust for lig"t travel or s+"ool. 5ts ba+(pa+( produ+ts are divided into t4o: daypa+(s and t"e te+"ni+al pa+(s. %"e latter +ater mostly for t"e "eavyusers) professional and at"letes. STATEMENT OF THE PROBLEM
>"at s"ould %"e 1ort" !a+e do in order to address t"e t"reat of substitute produ+ts su+" as Deuter) Columbia) atagonia and Bro4n %re((er OBJECTIVES
offer more affordable ba+(pa+(s • %o offer • %o develop #uality produ+ts at t"e least possible +ost
bran ds su+" as Columbia) Deuter) Deu ter) Bro4n %re((er %re((er in terms of pri+e • %o +ompete 4it" ot"er brands +on sumer (no4ledge on #uality # uality and te+"nologi+al innovation • %o address t"e la+( of +onsumer
AREAS OF CONSIDERATION/ASSMPTIONS TNF’ ! "ra#$ %&a'e a#$ #a&e reca(() reca(() >"en +anvassing for a ba+(pa+( to be used mostly for
travel or mountaineering) %1! is often t"e first brand t"e pop into one ’ s mind. Several outdoor ent"usiasts and bloggers also re+ommend buying %1! ba+(pa+(s for amateur travellers be+ause it is lig"t4eig"t) "ig"#uality and durable. Resear+" and intervie4 revealed t"at 4"en !ilipinos are as(e as(ed d abou aboutt %"e %"e 1ort 1ort" " !a+e !a+e)) some some asso asso+i +iat ate e it 4it" 4it" “ sports” ) “ for +lim +limbi bing ng a moun mountai tain n” ) ba+(pa+(ing” )“ t"e only brand 5’ m familiar 4it" t"at sells "i(ing ba+(pa+(s ba +(pa+(s” )“ travel” )“ bags” . “
TNF a! the !tat*! !y&"o() Resear+" and intervie4 also s"o4ed t"at %1! is a status symbol in
t"e "ilippines. %o some people %1!’ s #uality and user +ompatibility only +omes in se+ond to its brand name. TNF %! co%#e$ a! o+er,r%ce$) %"ere a #uite a fe4 mountaineering eAperts 4"o s"ared t"at %1!
is overra overrated. ted. -lt"ou -lt"oug" g" t"ey agree t"at t"at t"e #uality #uality is indeed indeed impres impressiv sive) e) t"ey t"in( t"at it is unne+essary to spend a "uge amount of +as" 4"en t"ere are ot"er options. >"ile some t"in( t"at %1! ba+(pa+(s are great investment) ot"ers prefer buying t4o ba+(pa+(s 4it" only one %1! ba+(pa+( pri+e. >"en an amat amateur eur loo(s loo(s for for an outdo outdoor or gear gear or Chea,er Chea,er a(ter# a(ter#at% at%+e! +e! a#$ !*"!t% !*"!t%t*t t*te!) e!) >"en ba+(pa+() t"ere are also some 4"o suggests %1! as t"e best investment. @o4ever t"ere are a fe4 4"o suggests t"at 4"en su+" ba+(pa+( 4ill not be used often) ot"er brands su+" as Columbia) Deuter or even lo+al brand) Bro4n %re((er) are more affordable alternatives. Some people 4ere as(e as(ed d of 4"at 4"at t"ey t"ey t"in( t"in( 4"en 4"en t"ey t"ey "ear "ear t"e t"e 4ord 4ord %"e %"e 1ort" 1ort" !a+e) !a+e) t"ey t"ey repl replie ied d 4it" 4it" “ too eApensive” )“ t"ere are +"eaper ba+(pa+(s” )“ loo( for a fa(e %1! bag instead” .
SE-MENTATION. TAR-ETIN- AND POSITIONIN-
Market Segmentation Segmentation
5t is important for a +ompany to initially segment its mar(et before identifying its target +onsumer mar(et. Maret !e'&e#tat%o# %! the ,roce!! o0 $%+%$%#' the &aret %#to !e+era( 'ro*,! "a!e$ o# 0actor! !*ch a! $e&o'ra,h%c. 'eo'ra,h%c. ,!ycho'ra,h%c a#$ "eha+%o*ra( 0actor!)1 Se'&e#tat%o# 2%(( a((o2 TNF to ha+e a "etter *#$er!ta#$%#' o0 %t! &aret a#$ to "e a"(e to !er+e th%! &aret e3ect%+e(y) Th%! ,a,er co#c(*$e! that TNF &aret !e'&e#t! are $e&o'ra,h%c. ,!ycho'ra,h%c a#$ "eha+%o*ra()
De&o'ra,h%c !e'&e#tat%o# $%+%$e! the co#!*&er! %#to !e+era( 0actor! !*ch a! a'e. 'e#$er. 0a&%(y !%4e. %#co&e. occ*,at%o#. re(%'%o#. !oc%a( c(a!!. #at%o#a(%ty. race a#$ &ore) O#e rea!o# $e&o'ra,h%c +ar%a"(e! are !o ,o,*(ar 2%th &areter! %! that they they’ re ’ o0te# a!!oc%ate$ 2%th co#!*&er #ee$! a#$ 2a#t!) 5 Th%! &aret !e'&e#t %! "roa$ that %t "eca&e ea!y to &ea!*re a#$ %t co+er! a(&o!t a(( ty,e! o0 co#!*&er!)
1 Lar s e,N.( 2010) .Mar k e tSegment :Af r ame wor kf ord et er mi ni ngt her i g htt ar ge tc ons umer s .BA.B t hes i s . Aa r hu sSc ho ol o fBu si ne ss .Uni v e r s i t yi nAa r hu s,Den ma ma r k .
TNF tar'et! the *,,erc(a!! *,,erc(a!! co#!*&er &aret) &aret) TNF e6*%,&e#t a#$ tech#%ca( tech#%ca( "ac,ac! $o #ot co!t (e!! tha# P7.888) Th*!. the co&,a#y’ co&,a#y ’ ! $e&o'ra,h%c !e'&e#t co&,r%!e! o0 !oc%a( c(a!!e! A a#$ B) Moreo+er. the co&&o# $e&o'ra,h%c o0 TNF are o0te# yo*#' &e# a#$ 2o&e#) Mo!t o0 the& are !,ort! a#$ o*t$oor e#th*!%a!t!. &ay they ,ro0e!!%o#a(! or a&ate*r!) The !eco#$ o#e %! the ,!ycho'ra,h%c ,!ycho'ra,h%c !e'&e#tat%o# 2here%# the "*yer! "*yer! are $%+%$e$ %#to 'ro*,! "a!e$ o# ,!ycho(o'%ca(/,er!o#a(%ty tra%t!. (%0e!ty(e or +a(*e!) TNF cater! &o!t(y to co#!*&er! 2ho %#cor,orate or try to %#cor,orate e9erc%!e a#$ o*t$oor act%+%t%e! %#to the%r $a%(y (%+e!. *#(%e &o!t ,eo,(e 2ho (%+e a !e$e#tary (%0e!ty(e) The co&&o# ,er!o#a(%t%e! o0 TNF TNF’ ! tar'et co#!*&er! are o*t$oor a#$ 0*#(o+%#' ,eo,(e. ’ act%+e. a$+e#t*ro*! a#$ h%'h %# e#er'y) e#er'y) Ath(ete! are a(!o tar'et co#!*&er!)
Market Targeting
%"e +ompany’ s target mar(et are adventurous) outdoorloving) a+tive individuals. %"ese individuals ta(e eAer+ise) travel and eAploration seriously t"at t"ey are 4illing to invest in gears 4"i+" are durable and of "ig" #uality to fit t"eir lifestyle. %"is paper +on+ludes t"at %1! applies a +ombination of mass mar(eting and ni+"e mar(eting.
Ma!! &aret%#'. a(!o ca((e$ *#$%3ere#t%ate$ &aret%#'. a((o2! the ,ro$*ct to "e !o($ to the "roa$e!t #*&"er o0 "*yer! +%a &a!! $%!tr%"*t%o#) Th%! ty,e o0 &aret%#' create! a (ar'e &aret at a (o2 co!t) ;h%(e. #%che &aret%#' create! a ,ro$*ct 2h%ch tar'et a !,ec%
Kot l er ,P.&Kel l er ,K. L.( 2012) .Ma r k e t i n gMa n ag e me me n t .NewJ er s ey :Pr ent i c eHal l . 2
I# 1==>. TNF a$o,te$ the ta' (%#e “ Ne+er Sto, E9,(or%#'” E9,(or%#' ” ) The co&,a#y re%#0orce$ the !,%r%t o0 a$+e#t*re that 2o*($ co#t%#*e to '*%$e The North Face) Face) The “ Ath(ete Te!te$” e!te$ ”
ta' (%#e a(!o e&er'e$ %# the !a&e year) year) TNF a$o,t! a# %#te#!%+e re!earch a#$ $e+e(o,&e#t to !,ec%
It! re!earch a#$ $e+e(o,&e#t tea& !e#$ o*t e6*%,&e#t a#$ o*t2ear ,rototy,e! 0or ath(ete! to try %# r%'oro*! a#$ rea(t%&e
Maret%#' M%9 Product
TNF ha! a 2%$e ra#'e o0 !,ort! a#$ o*t$oor a,,are( a#$ e6*%,&e#t 2h%ch cater! to "oth &e# a#$ 2o&e#) It! ,ro$*ct! ra#'e! 0ro& T!h%rt!. ?acet!. ,a#t! a#$ !hoe! to e6*%,&e#t! !*ch a! "ac,ac!. te#t! a#$ the (%e)
Th%! ,a,er ho2e+er 0oc*!e! o# TNF "ac,ac!) Per*!%#' thro*'h "(o'! a#$ co#$*ct%#' co#$*ct%#' %#ter+%e2!. %t a,,ear! that a TNF "ac,ac %! o#e o0 the &o!t & o!t !o*'ht a0ter ,ro$*ct! o0 the !a%$ co&,a#y) co&,a#y) It a,,ear! that TNF $oe!# ’ t o#(y o3er a "ac,ac "*t o#e 2%th 0eat*re!
Price
TNF "ac,ac! are #otor%o*! 0or "e%#' too e9,e#!%+e) Mo!t o0 %t! "ac,ac! ca# 'o a! (o2 a! P7.888 a#$ a! h%'h a! P15.888 ,(*!)
Place
TNF %! the (ea$%#' tech#%ca( "ac,ac "ac,ac "ra#$ %# the Ph%(%,,%#e &aret) It! It! ,ro$*ct! are are a+a%(a"(e at +ar%ety o0 &a((! &a( (! %# Metro Ma#%(a a#$ ,ro+%#ce! #at%o#2%$e) The Pr%&er -ro*, Ph%(%,,%#e! ,o!te$ %# %t! 2e"!%te the $%3ere#t !tore "ra#che! (ocat%o#! o0 The North Face Face "ra#$) The!e are the 0o((o2%#': PHILIPPINES: NCR
%@< 1OR%@ !-C< S@-1*R5L- L-E- M-LL %@< 1OR%@ !-C< SM M-LL O! -S5%@< 1OR%@ !-C< *LOR5<%%- F %@< 1OR%@ !-C< SM M<*-M-LL %@< 1OR%@ !-C< SM 1OR%@ 1 C<1%
%@< 1OR%@ !-C< SM 5LO5LO %@< 1OR%@ !-C< SM C
Promotion
TNF %! +ery &*ch act%+e act%+e o# %t! ca&,a%'# to 'et %#+o(+e$ %#+o(+e$ o*t$oor!) TNF Ph%(%,,%#e! %!
2e((#o2# 0or %t! year(y Brea A(( Bo*#$ar%e! Tra%( Tra%( R*##%#' Cha((e#'e) It a(!o a( !o ho!t! !e+era( e+e#t! !*ch a! the -reat Ca&, O*t. Se+e# S*&&%t! P%(%,%#a! Co#6*er Yo*r Se+e# S*&&%t!. Da+ao ;a(( C(%&"%#' Co&,et%t%o# a#$ the (%e)
;%th !oc%a( &e$%a. TNF "ra#$ %! co+ere$ *#$er the Pr%&er -ro*, o0 Co&,a#%e! 2e"!%te) TNF a(!o ha! %t! +ery o2# Face"oo ,a'e The North Face PH) The North Face Face Ph%(%,,%#e! Fa# Fa# Pa'e 2a! a(!o create$ "*t F%(%,%#o o*t$oor e#th*!%a!t!) A(tho*'h TNF Ph%(%,,%#e! %! #ot "%' o# !oc%a( &e$%a !*ch a! 'ett%#' %#+o(+e$ %# other !%te! !*ch a! T2%tter T2%tter or I#!ta'ra&. %t a(rea$y atta%#e$ atta%#e$ a "ra#$ reca(( "eca*!e o0 the act%+%t%e! act%+%t%e! the "ra#$ %! %#+o(+e$ %#) THEORETICAL FRAME;ORS FRAME;ORS
Despite its strong reputation and brand re+all) it +annot be disregarded t"at t"ere are many players in t"e ba+(pa+( industry. 5t is ne+essary to understand and study t"e fa+tors influen+ing a business operation. %"is paper 4ill apply orter ’ s !ive !or+es Model of Competition fo+us on Substitutes in relation to 1agle and @olden er+eived Substitutes
North Face
Ph%(%,,%#e! Force!
Porter’ ! F%+e A,,(%cat%o#
Threat of New Entrants
%"e in+reasing number of ne4 startup +ompetitors is t"e biggest t"reat fa+ed by establis"ed small and medium businesses.' 1e4 players industry be+omes a t"reat to eAisting +ompetitors be+ause of t"e possibility t"at t"ey +an de+rease t"e mar(et s"are of t"e eAisting players. >"en t"e entry barriers are lo4 in a profitable industry) it 4ill be easier for ne4 players to enter t"e mar(et.
3 T or r anc e,J .( 2014) .Gr o wi ngnumberofs t ar t upc ompe t i t or si sbi g ges tt hr eatt obus i n es s es .Re .R al Bu s i n es s . Ret r i ev edf r om:ht t p: / / r eal bus i nes s. c o. uk / ar t i c l e/ 27360gr owi ngnumber of s t ar t upc ompet i t or s i s b i gges t t hr eat t obus i nes ses.
ursuant to
Threat of Substitute Products
Consumers are pri+e sensitive. %"ey +an s"ift to variety of alternatives 4"i+" +an provide t"em 4it" t"e same #uality produ+t at a lo4er pri+e. %"is paper see(s to relate t"is spe+ifi+ subse+tion
of orter ’ s Model to 1agle and @olden’ s er+eived Substitutes
F%'*re 5: Na'(e a#$ Ho($e# Perce%+e$ S*"!t%t*te! E3ect A,,(%cat%o#
Accor$%#' to Na'(e a#$ Ho($e#. B*yer! are &ore ,r%ce !e#!%t%+e the h% 'her the ,ro$*ct’ ,ro$*ct’ ! ,r%ce re(at%+e to the ,r%ce! o0 the "*yer!’ "*yer! ’ ,erce%+e$ !*"!t%t*te!) The !a%$ a*thor! e&,ha!%4e$ that ,erce,t%o# +ar%e! a&o#' co#!*&er! a#$ ,*rcha!e !%t*at%o#!) Th*!. the threat to TNF %! the co#!*&er #ot%o# that they ca# 'et the !a&e "ac,ac 6*a(%ty at a# a3or$a"(e ,r%ce 2%th other "ra#$!)
Threat of Bargaining Power of Customers
5n relation to 4"at 4as dis+ussed earlier) +onsumers are pri+e sensitive. %"ey +an s"ift from one produ+t to anot"er at t"eir li(ing and most +ompanies 4ill try to (eep up 4it" t"eir preferen+es. !ortunately for %1!) t"e +ompany doesn’ t "ave to ad=ust to +onsumer bargaining po4er in relation
4 Hi nt er huber ,A.( 2003) .T owar dsv al uebas edpr i c i n g—Ani nt e gr at i v ef r ame wor kf ordec i s i onmak i ng. I ndus t r i al Mar k et i ngMa nagementSc i enc eDi r ec t .Re t r i v edf r om: ht t p: / / www. quar t e t f es t . c a/ doc ument s / 12170 / 13 . __Hi nt er huber ___T owar ds _v al uebas ed_pr i c i ng. pdf
to its #uality. eople go to %1! be+ause of its brand name and t"e "ig" performan+e produ+t t"at it "as to offer.
Threat Thre at of Suppliers Suppl iers ’ Bargaining Barga ining Power
%1!’ s ra4 materials are imported sin+e it is a large US +ompany 4it" different manufa+turing plants 4orld4ide. Suppliers are t"e sour+es of ra4 materials) ma+"inery) servi+es. servi+es. >it"out t"e suppliers) a +ompany 4ill be for+ed to manufa+ture its o4n ra4 materials 4"i+" 4ill re#uire eAtra time and eApenses. %1! doesn’ t "ave to 4orry be+ause it is) as reiterated) a su++essful +ompany 4it" a number of plants. %"us) it "as +ontrol of its ra4 materials. 5t also develops its o4n fabri+s 4"ere its resear+" and development team +ome up 4it" durable and "ig" performing fabri+s for its apparel and e#uipment ba+(pa+(s. ndustry !i"als
Competition 4ill eventually lead to pri+e 4ars) advertising +ompetitions) introdu+tion of ne4 produ+ts. %"ere are only a fe4 4ell(no4n outdoor) "i(ing and mountaineering ba+(pa+( brands in t"e +ountry su+" as Deuter) Columbia) atagonia and even t"e lo+al brand) Bro4n %re((er. %re((er. 5n t"e "ilippine mar(et) resear+" and intervie4 s"o4ed t"at t"e %1! "as t"e strongest brand re+all and t"e largest brand. 5n relation to 4"at 4as mentioned above) t"ese industry rivals be+ome a t"reat only 4"en t"ey are +onsidered as substitutes from t"e %1! produ+ts.
S;OT ANALYSIS ANALYSIS HEL PF UL
S%R<1*%@S I N T E R N A L
HARMF UL
><-$1
·
Strong brand reputation
·
·
%e+"nologi+al %e+"nologi+al innovations. %1! "as a strong Resear+") Design and Development %eam %eam
1i+"e mar(et. %1! fo+uses on sports and outdoor apparel and gears.
·
%oo eApensive
·
rovides environment friendly) friendly) #uality and durable produ+ts
· %1! is big on mar(eting and promotions t"roug" its organized outdoor a+tivities.
OOR%U15%5
·
%@R<-%S · Co*#ter0e%t%#' ,ro$*ct! %! ra&,a#t %# the Ph%(%,,%#e! a#$ %# A!%a
year /0F.
R N A L
· Sa&e !o*rce !tate! that tra+e( a#$ to*r%!& %#$*!try %! ,ro
*ro4ing interest of +onsumers in outdoor a+tivities su+" as "i(ing and ba+(pa+(ing.
ALTERNATIVE CORSES OF ACTION ACA 1:
#eep the current current market market $Class $Class % and B& but introduce introduce and launch launch a more affordable affordable
product line'
%"is option 4ill allo4 %1! @ to (eep its eAisting mar(et sin+e it is already su++essful on its o4n. C*!to&er! ha+e a re0ere#ce ,r%ce 2he# there are &a#y !*"!t%t*te!. a! (o#' a! the o3er%#' %t %! 2%th%# that ra#'e a#$ acce,ta"(e) Maret%#' ca# %#*e#ce 2h%ch ,ro$*ct! co#!*&er! 2%(( co&,are yo*r! 2%th)
Resear+" s"o4ed t"at t"ere is "ig" t"reat of substitute to %1! produ+ts be+ause of its immense +ost. -s mentioned) %1! are sometimes +oined as overpri+ed and some people suggest t"at one +an get t"e same #uality at a lo4er pri+e 4it" Deuter. %"us) t"is option 4ill allo4 %1! to +ater to a 4ide range of +onsumers 4it"out sa+rifi+ing its #uality. Pr os T ob ea bl et opr o v i d emor eaff or d ab l epr o du ct s wi t houts ac r i fi ci ngi t squal i t yandex i s t i ngmar k et
ACA 2:
Cons Re qu i r esex t en si v er e se ar c ha ndt i me
Communicate Communicate effecti"ely to the consumers the importance of technological technological inno"ations
and (uality'
er"aps t"e problem is 4it" la+( of +onsumer (no4ledge on t"e value of t"e produ+t’ s #uality) t"us t"ey are not 4illing to s"ell out "uge amounts of +as". @o4ever) t"is option suggests advo+a+y. 5t is important to +ommuni+ate to its mar(et bot" professionals and amateurs t"at you get 4"at you pay for ” . %"roug" mar(eting mar(eting and advertising) advertising) %1! +an gradually gradually emp"asize “ t"at its produ+ts are +onsidered investments) and t"at durability and #uality stomps pri+e. Pr os
Cons
Qu i c kan de as ys ol ut i o n.I tc anb ed on et hr o ugh mar k et i ng,adv er t i s i ngandc ons t antc ommuni c at i on
Noa s s ur a nc et h ats u c hc o mm mmu ni c a t i o nwi l l b ea s u c c e s s
wi t hi t sc on s ume rma r k e t
ACA 3:
Tap Tap into the lower C and ) consumer market'
%"is option re#uires a +"ange in %1!’ s entirety 4"i+" is #uite diffi+ult sin+e %1! @ is =ust a retailer in t"e -sian mar(et. "ilippines is a developing +ountry. %"e masses are greater in number t"an t"ose in t"e Class - and B mar(et. %o delve into t"is mar(et 4ill eApand %1!’ s range of +onsumers sin+e its produ+ts 4ill be more a++essible to anyone and everyone. %"is "o4ever 4ill re#uire %1! to loo( for more +"eaper ra4 materials and no assuran+e t"at its goal
and #uality 4ill be t"e same. Pr os
Cons
TNFPhwi l l b ea bl et oc at ert oawi der an geo f c o ns ume r san di twi l l b emo r ea cc e ss i b l et oa ny o ne a nde v e r y o n e
Thepos s i bi l i t yofs ac r i fi c i ngi t squal i t yf ori t spr i c e.I t mi ghtdi v er tf r om i t svi s i onofpr ov i di ngf orc omf or t , qual i t yanddur abi l i t y .
RECOMMENDATION
%"is paper re+ommends re+ommends to adopt -C-C- 0: $eep t"e +urrent mar(et but introdu+e a ne4 and more affordable produ+t line. %"is 4ay not"ing "as to be sa+rifi+ed. %1! doesn’ t "ave to give up its original +on+ept and ob=e+tive. 5t 4ill =ust laun+" an affordable %1! produ+t line 4it"in t"e range of 8// to ///.
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REFERENCES Aboutt hePr i merGr oup.( n. d. )I nPRI MERGr oupofComp mpani es.Ret r i ev edApr i l 6,2015, f r om: ht t p: / / www. pr i mer g r p . c om/ t he pr i me r gr o up. h t ml AboutVF .( n. d) .I nv fWeFi tYourLi f e.Re t r i e v edMa r c h3 0,2 01 5,f r o m:ht m: t p: / / www. v f c . c om/ about omoni t orI nt er nat i onal .Ret BagsandLuggageI ndus t r yPhi l i ppi nes .( n. d. )I nEur r i ev edApr i l 2,2015, f r om:ht t p: / / www. eur omoni t or . c om/ bags andl uggagei nt hephi l i ppi nes / r epor t Equi pment .( n. d. )I nTh eNo r t hFa c e.Ret r i ev edApr i l 2,2015,f r om: ht t p: / / t henor t hf ac e. hk / c ol l ec t i ons / equi pment Hi nt er huber ,A.( 2003) .T owar dsv al uebas edpr i c i ng A Ani nt egr at i v ef r amewor kf ordec i s i on— ma k i n g.I ndus t r i al Mar k e t i ngManagementSc i enc eDi r ec t .Re t r i v edf r om: ht t p: / / www. quar t e t f es t . c a/ doc ument s / 12170/ 13. __Hi nt er huber ___T owar ds _v al uebas ed_pr i c i ng. pdf Kot l er ,P.&Kel l er ,K. L.( 2012) .Mar k et i ngManageme ment .Ne wJ er s ey :Pr ent i c eHal l . Lar s e,N.( 2010) .Mar k e tSegment :Af r ame wor kf orde t er mi ni ngt her i ghtt ar g etc ons umer s .BAt hes i s .Aar husSc hool ofBus i nes s .Uni v er s i t yi nAar hus ,Denmar k .
OurBr ands .( n. d) .I nv fWeFi tYourLi f e.Re t r i e v edMa r c h3 0,20 15 ,f r om: ht t p: / / www. v f c . c om/ br ands T es t edi nt heLab.Pr ov enonEx pedi t i on.( n. d) .I nTh eNo r t hFa c e.Ret r i ev edApr i l 2,2015,f r om: ht t p: / / t henor t hf ac e. hk / pages / r es ear c hdev el opment TheNor t hFac e.( n. d) .I nv fWeFi tYourLi f e.Ret r i ev edApr i l 2,2015,f r om: ht t p: / / www. v f c . c om/ br ands / out door / t henor t hf ac e TheNor t hFac eBr anc hes .( n. d. )I nPRI MERGr oupofComp mpani es.Ret r i ev edApr i l 6,2015,f r om: ht t p: / / www. pr i mer gr p. c om/ Br and_page/ t nf _pop. ht ml T or r anc e,J .( 2014) .Gr owi ngnumberofs t ar t upc ompet i t or si sbi gges tt hr eatt obus i nes s es .Re al Bus i nes s .Ret r i ev edf r om:ht t p: / / r eal bus i nes s. c o. uk / ar t i c l e/ 27360gr owi ngnumber of s t ar t upc ompet i t or s i s b i gges t t hr eat t obus i nes ses. T r av el andT our i s mI ndus t r y .( n. d. )I nEur omoni t orI nt er nat i onal .Ret r i ev edApr i l 2,2015,f r om: ht t p: / / www. eur omoni t or . c om/ s ear c h?t x t Sear c h=t r av el +i ndus t r y
