Running Head: PROMOTIONAL STRATEGIES

Compare and Contrast the Promotional Strategies

For Two
Outdoor Apparel Companies
BUS 508 Week 9 Assignment 3
By Michael Nunes
December 10, 2014
Professor Dr. D. Sykes

Compare and contrast the promotional strategies used by two (2) different companies for a
similar product within the category that you selected.

PROMOTIONAL STRATEGIES

The North Face is a leading supplier of reliable, and technically advanced outdoor sports
apparel, equipment and footwear. Similarly, Patagonia is well known as a producer of distinctive
outdoor sports clothing with an uprightly detailed environmental standard. North Face products
are priced competitively; all items come with a lifetime manufacturers warranty. Likewise, one
of the main competitive advantages Patagonia has is they provide reasonably priced, eco-friendly
and nontoxic products. North Face strives to build on its distinct competencies: product
reputation and differentiation, innovative product design and diversity, all of which have kept the
brand significant within the industry. (The NorthFace: Advertising Strategy Plan) On the other
hand, Patagonias promotional strategy for the brand and products sale is to preserve the world
for future generations to enjoy. Patagonia brand now attracts sports enthusiasts with a variety of
interest in outdoor sports. This extraordinary, cheerful lifestyle has come to represent what the
Patagonia brand is about, the desire for the outdoors and the mission of pleasure. (McCaskill &
Samuels) They accomplished this by having an environmental campaign called 1% for the
Planet and pledges 1% of sales to the preservation and restoration of the natural environment.
(Patagonia) Equally North Face is endeavoring to be a viable brand, using reprocessed
postconsumer and postindustrial waste goods. Also by refining technologies and decreasing the
use of severe chemicals and extra materials while protecting the product value. Additionally,
North Face has designed its promotional strategies around the idea of going above and beyond
consumers beliefs and making sure their products create a sense of gratification with the
knowledge that the product purchased can be trusted. Its continued reputation for superior
merchandises, performance and authenticity differentiates and exemplifies the brand and its
image. Primarily North Faces products can be found in sporting goods retailers and major
outdoor specialty retail stores in Europe, Asia, North and South America. The company uses its

PROMOTIONAL STRATEGIES

website to focus exclusively on sales promotions, which saves the company ongoing logistics
revenue and increases sales revenues. (The NorthFace: Advertising Strategy Plan) However,
Patagonias target markets are outdoor enthusiast and environmentally conscious people, and
customers that feel intensely obliged to buy products from an organization that stays devoted to
protecting the outdoors that they love. Furthermore, Patagonias brand distinctiveness is a solid
one with twenty-nine stores in seven countries, a substantial catalog business and a powerful
presence in numerous other retail outlets. (McCaskill & Samuels)
Recommend two (2) ways in which a company within the selected product group could use
marketing information to differentiate itself in the marketplace to gain an advantage over
its competitors. Provide a rationale to support your recommendations.
Patagonias strategy should include assessing the competitors by inviting customers to
compare and contrast similar competitors products to find out what they are offering to
differentiate their products. Patagonia would also need to understand the context in which
consumers make choices, their needs, interactive stimuli and the methods involved in selecting to
buy a product. Sometimes consumers will prefer an alternative to their product and accepting
why this is chosen can make known previously unconsidered product, positioning and promotion
issues and opportunities. (Tomlinson, 2009) Scanner Research could be used to garner this
pertinent marketing information. From a marketing standpoint, scans can also help Patagonia to
track the success of promotions and to establish linkages between products to gain a market
edge.
Another process that I would recommend is Customer Relationship Management (CRM).
CRM is managing the interactions with the customers and prospects by tracking their activities
including their response to all marketing and sales activities. It would also allow customer
service employees to see all communications with each buyer and their purchases. CRM would
allow Patagonia to figure out which customers are likely to be most profitable, or which are most

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liable to respond to a particular offer, and which can be retained. So an in-depth research of the
consumers purchasing patterns, whats important to them, and what influences their choices is
required. (Tomlinson, 2009) The research tool I would use to acquire this valuable marketing
information is Focus groups. Focus group participants discuss a companys products compared to
another companys products. By giving the focus group, a new product to try can help expose
perceptions into new or unmet desires, or difficulties that need to be overcome in order to
differentiate the product. Conversely, combining loyal and former customers in a focus group to
discuss whats good, bad or different about the product can disclose new considerations on
hurdles to usage. (Tomlinson, 2009)
Propose two (2) uses for consumer-oriented promotions that could assist a company in both
the short and long term for the product group that you selected. Provide a rationale for
your response.
The two consumer- oriented promotions that I would propose are value-added promotion
and sales promotions.
Value-added promotions such as bonus points toward future purchases and buy one item
and get a similar item for free would retain customers because customers would recognize the
effort you put out to win their business. You can also build strong affiliations with customers that
have enduring effects with promotions that add value to the customer purchase, unlike coupons
and seasonal discounts that are short-range. When combined with loyalty discounts, companies
can develop a long-standing approach to building customer confidence, raise their referral rate
and improve their brand identity. (Ray & Media)
Regular sales as a marketing promotion can affect the companys profits in the long run.
With regular discount sales, the company can expect increased sales during those times. The total
proceeds from the sales would upsurges the company's bottom line and take care of sluggish
phases of sales. When planning the annual budget, the company should take into account

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expected sales promotions that would bring in added sales. Customer-oriented promotions sales
can play a substantial role in improving profits as part of a long-term budgeting plan. (Ray &
Media)
Analyze the strategic manner in which the leading company in this product group has
made its pricing decisions by using one or more of the four (4) pricing objectives. Suggest
two (2) actions that other companies within the same product group may take in order to
differentiate themselves and gain a competitive advantage. Provide a rationale for your
response.
The North Faces products are competitively priced to ensure its position against its
competitors within the market segment as a product and brand that is unyielding for providing
the highest quality products. Their prices are high due to the quality of the products and the
positive reputation attached to the name. The high price due to quality is especially attributable
to North Faces new focus on sustainability. All North Face products come with the added value
of a lifetime manufacturers warranty, which is an assurance that the products are fully covered
to the original owner against deficiencies in materials and workmanship. Another part of The
North Faces pricing strategy is to be aware and understand their competitors strengths and
weaknesses because that enables them to build off of and maintain a competitive advantage to
position their products differently. (The NorthFace: Advertising Strategy Plan)
Major competitors, like Patagonia, and Columbia Sportswear, could sell comparable
products at a much lesser price, creating a competitive advantage based on price. A main
competitor like Patagonia has some fundamental strength to gain a competitive edge. Some
significant advantage for Patagonia would involve capitalizing on their customer service policies,
including those for returns and repairs which are second to none in the industry. (The NorthFace:
Advertising Strategy Plan) I would also recommend leveraging their mission statements that
convey over to distribution channels, marketing, products, and philanthropic causes to further

PROMOTIONAL STRATEGIES

enhance their competitive advantage. Since, Patagonias target markets are outdoor enthusiast and
ecologically mindful people, the customers would feel intensely obliged to purchase products
from a company that stays devoted to the protection of the outdoors that they love. (McCaskill &
Samuels)
Determine the most effective advertising medium for a company in the selected product
category. Support your response with two (2) examples of the effectiveness of the chosen
medium.
Internet and social media sites would be the most effective advertising medium for The
North Face marketing strategy. Social media and the Web are very inexpensive, deliver a high
level of reach, frequency and information. They can demonstrate the product and are targeted.
Social media would also promote brand awareness due to its viral nature and its ability to quickly
and easily spread The North Faces message. Companies that commit to regular publishing of
relevant information on social media sites can grow their base of customers, and have ongoing
interaction with them can also forecast an upward growth in awareness and sales. Having a wellbalanced web-site with links to the companys social media accounts like, Facebook, Tweeter
and Instagram can save advertising dollars by leveraging word- of- marketing from these social
media sites. (Chenry, 2013) Another reason would be to improve customer loyalty, in the age
when customers are only a click away from conducting business elsewhere, the importance of
increasing customer loyalty and lifetime value cannot be ignored. (Chenry, 2013) Zappos and
Patagonia are two companies that have been very successful by shunning traditional advertising
mediums and solely relied on social media sites for their marketing efforts. Social media have
been credited with their rapid growth in their respective industry. The two companies strong
presences on Facebook and Tweeter have allowed them to gain millions of followers and loyal

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customers globally. The far reach of social media sites has exceeded that of other advertising
mediums.

References
Chenry, P. (2013, December 4). Does Social Media Impact Ecommerce Sales? Retrieved
December 2, 2014, from www.practiclecommerce.com
McCaskill, T., & Samuels, M. (n.d.). Patagonia. Retrieved November 28, 2014, from
www.ncmccaskill.tripod.com
Patagonia. (n.d.). 1% for the Planet- Patagonia Outdoor Clothing and Gear. Retrieved
November 28, 2014, from www.patagonia.com
Ray, L., & Media, D. (n.d.). The Long-Term Effects of Consumer Oriented Sales Promotions.
Retrieved November 28, 2014, from Houston Chronicle: www.smallbusiness/chron.com
Ryan, K. (2014, July 31). The Bottom Line: Patagonia, North Face and the Myth of Green
Consumerism. Retrieved December 1, 2014, from www.groundwell.org
Singh, H. (2014). Fibre2Fashion. Retrieved November 26, 2014, from www.fibre2fashion.com
Staff, I. (n.d.). Conducting Online Market Research: Tips and Tools . Retrieved December 2,
2014, from www.inc.com
The NorthFace: Advertising Strategy Plan. (n.d.). Retrieved November 26, 2014, from
www.slidershare.net
Tomlinson, G. (2009, July 13). The Marketing Directors' Forum. Retrieved December 2, 2014,
from www.themarketingdirectors.wordpress.com

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