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1The North Face Surge II Transit backpack Plans Book

Jonathan Williams

Linfield College

May 26, 2015

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Situation Analysis

The Company:

The North Face Company was founded in 1968 by Douglas Tompkins and

Kenneth Klopp. The company is a subsidiary owned by the VF Corporation, which also

owns companies like JanSport and Timberland. According to The North Faces website,

the company is named after the most unforgiving side of a mountain the north face. The

North Faces mantra Never Stop Exploring is widely known among people who

exercise and explore the outdoors. The website mentions that they, Deliver an extensive

line of performance apparel, equipment and footwear. The North Face brand is

celebrated as the the first choice brand for the worlds most accomplished climbers,

mountaineers, extreme skiers, snowboarders, endurance runners and explorers (Our

Story). According to the VF Corporations 2013 annual report. In 2013, The North Face

company profited $2 billion and had a 35 percent increase in ecommerce. The company is

expected to reach an annual profit of $3.3 billion by 2017. The North Face also says on

its website that part of the companys mission is to have an unwavering commitment to

pursuing the limits of design, so that you can push your limits outdoors (Our Story).

The Product:

The Surge II Transit Backpack is one of The North Faces top rated

multifunctional backpacks by consumers and is an exclusive on their website. The

backpack costs $130 and customers can pick from nine colors and styles. A key feature

that sets this backpack apart from others like it, is its 17 inch laptop pocket that zips open

and lays flat so users dont have to use a separate bin at an airport when they are going

through TSA security. On the website, 99 percent of the reviewers of the product
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recommended it. The backpack by itself weighs a mere three pounds. Other features of

the backpack include its FlexVent injection-molded shoulder straps as well as its padded

air-mesh back panel. The backpack also comes with a lifetime warranty. It can be used

for many activities such as school, work, traveling and backpacking. The competitive

positioning of the product is that it is a product that is worth price and investment because

is a backpack that last customers a long time. The Surge II Transit can fulfill a variety of

customers needs, as it is a large backpack that can carry many things as well as be used

for a variety of purposes. Its durability is also a key aspect that sets it apart from similar

brands that might be less expensive.

Finding information for the annual sales of the Surge II Transit Backpack was

quite difficult. After using the chat feature with two different customer service

representatives from The North Face it became clear that the company did not want to

disclose that information. Morningstar investment research center, NetAdvantage,

LexisNexis and Business Insights: Global Gale database did not have information either

regarding the products annual sales volume or market share and ranking.

The Market:

Current customers of The North Face and the Surge II Transit Backpack include

active people who exercise often and engage in outdoor activities. The company focuses

on marketing its apparel, equipment and footwear to people who are skiers,

snowboarders, climbers, runners, hikers, backpackers and outdoor enthusiasts. According

to the VF Corporations webpage for The North Face, the company focuses on marketing

to the unique needs of its customers by using its Activity Based Model for marketing,

which focuses on four consumer segments including outdoor, performance, action sports
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and youth. The North Face is also increasing its international marketing efforts,

specifically in China, due to its outdoor terrain and the needs of its consumers for

equipment. The North Faces website explains that the companys retail stores are the

face of the brand. The retail stores bring the Activity Based Model to life by presenting

customers with the many products the company has in its stores for activities that are

suited to their interests. Largely, the companys marketing efforts are used to promote

outdoor participation by showing its customers in stores and online how they can go

outdoors while using some of their products.

SWOT Analysis:

The Surge II Transit Backpack has many attributes that make it a successful

product. The backpack is spacious and can be used for multiple purposes by its user. It is

durable and although it is more expensive than others like it, such as Nikes Ultimatum

Gear Graphic backpack priced at $110, The North Face brand is known for having

products that are durable and of high quality. Additionally, consumers may be more

inclined to purchase the Surge II Transit because it could be seen as a more high brow

product since The North Faces products are all of a higher quality than some of its

competitors. The versatility of the backpack is largely its biggest strength.

A weakness of the product is its cost. It is more expensive than most backpacks

are, which could cause customers to choose a different company to purchase their

backpack from. It is also a backpack that comes from a company that may not yet be well

known for its quality backpacks causing people to buy elsewhere. Visibility is a weakness

of the backpack that could be improved through advertising and endorsements to show

customers the versatility of the product as well as its durability and comfort.
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Opportunities for this product include showing customers through advertising that

this is a backpack for everyone, but more specifically for people who lead busy lives and

often carry a lot of things with them. The backpack is quite versatile as far as its purposes

go and can be marketed and advertised to a variety of audiences including hikers, college

students, workers and anyone who needs a durable, spacious backpack that can go with

them wherever they go. If advertised well, this backpack could be bought by audiences

who are interested in it for different uses, but all need a quality backpack to carry their

things in.

A threat for the Surge II Transit is its lack of visibility to consumers as well as that

it is not the only large, durable backpack. Nike and JanSport have many backpacks

similar to the Surge Transit II and are often cheaper than it. Its price, though not

outrageous, may be too much for customers who are college students or of a younger

audience. Advertising its durability, as well as its ability to hold many items and overall

comfort are key to getting people to consider buying it. Advertising it as a product that

everyone needs while pointing out some of its important differences that distinguish it as

higher quality backpack will also help get more people interested in purchasing the

backpack.
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Target Market Report

Primary Demand

The primary demand for backpacks in the United States is fairly high, but suffered

from a decline in sales after the 2008 recession. According to IBISWorld, corporations

that own backpack-selling companies have earned a total of $224 million in the past year.

That amount accounts for CambelBak Products LLC and the VF Corporation. The North

Face is also owned by the VF Corporation. That amount does not account for revenues

from Nike, Adidas or REI. A survey conducted in 2007 by JanSport reported that 58

percent of consumers own backpacks and that of those backpacks purchased, 61 percent

were bought on impulse, which shows that its a consumer good that is in high demand

(Horovitz, 2007).

Selective Demand

For the selective demand of The North Face, key features and benefits of the

Surge II Transit backpack are its durability, multipurpose uses, comfort and style, which

are all things people who reviewed the backpack or took the survey I did said they value

in a backpack. As a company, The North Face grossed 2 billion in 2013 according to the

VF Corporations 2013 annual report, showing that they are one of the top outdoor and

apparel brands.

Target Market

For my target market I am targeting male and female college students ages 18-30

who are physically active at some level. Demographically, the three segments I am

targeting are men and women, who are between the ages of 18-30 and are also college or

graduate students. Relevant behaviors concerning my target market are people who are
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physically active at some level and/or are people who multitask often and could benefit

from having a backpack that serves the needs of someone who would use it as a

multipurpose bag. For psychographics, I plan to target people who are achievers,

experiencers and makers. All of those types of psychographics fall into the self-

actualization part of the VALS pyramid. Benefits that most people in the target market

seek from purchasing a backpack are durability and style. From my target market survey

12 people said they value durability the most when purchasing a backpack, 12 said style,

8 said capacity and 5 said comfort. Notably, most people who took the survey also said

that they purchase a backpack that can be used as a multipurpose bag. Geographically,

people in my target market would be from the Northwest and would also be people who

go to college in an urban or rural area.

I chose this group as my target market because I know that college students are

busy people who often carry around many things with them and could benefit from

having a comfortable, durable backpack to store things in. I also chose this group because

everyone needs a backpack for something. I think this is a target market that The North

Face would profit from investing in because once students decide to purchase a backpack

from their company, its likely to last them a while and when they need a new one they

will probably buy another one from The North Face if they were satisfied with the first

one. This is a group of people The North Face should capitalize on because college

students are typically active people and are looking for a backpack that can serve all of

their needs. Marketing the Surge II Transit backpack to college students will be mutually

beneficial for the students since they could buy a quality backpack and for The North

Face as well. College students are deciding (if they havent already) what sort of brands
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they want to buy now that they are mostly on their own and dont have much buying

influence from their parents. College students are explorers in many ways, which is

something The North Face emphasizes highly in their products. I think many college

students would see the benefit of owning a North Face backpack if it was marketed and

advertised to them in a strategic way that made them realize why it would be a smart

purchase.

I found it useful to identify my target market by their behavioristic and

demographic segmentation. It made it easier to decide on a group of people who would

benefit (and see the benefits) of purchasing a North Face backpack based on their needs

and wants as an active college or graduate student.

Advertising Objectives

Through my advertising campaign for The North Face Surge II Transit backpack I

hope to achieve the following. My first objective is to get consumers to comprehend the

benefits and features of the Surge Transit II backpack. My second objective is to promote

conviction in college students [relevant to the price of the backpack] that the benefits and

features of it are worth the price through compelling evidence or testimonials. My third

objective is to create desire of the product through The North Faces slogan Never stop

exploring to show the target audience all that they can accomplish and do if they have

the backpack. I chose these as my objectives because of the opportunities this poses for

The North Face in gaining customers who are active and could benefit by having a

multifunctional backpack.
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Creative Brief for The North Face's Surge II Transit backpack ad

Client

The North Face and their Surge II Transit backpack

Problem/Opportunity

College and graduate students who are active, busy and carry around a lot of

things arent aware of the benefits and features of the Surge II Transit backpack that

would provide relief and enhance their day-to-day life.

Advertising Objectives

The first objective is to get consumers to comprehend the benefits and features of

the Surge Transit II backpack. The second objective is to promote conviction in college

students [relevant to the price of the backpack] that the benefits and features of the

backpack are worth the price through compelling evidence or testimonials. The third

objective is to create desire of the product through The North Faces slogan Never stop

exploring to show the target audience all that they can accomplish and do if they have

the backpack.

Through these objectives I want consumers in my target market to understand

why they need and would benefit from using the backpack. The ad should be able to

communicate that the backpack can be used for a variety of uses including school, work,

athletics, outdoor activities, traveling or any other activity a consumer would want to use

it for. It is also important to remind and make consumers aware that although many other

backpack brands can carry a lot of things, The North Faces Surge II is durable,
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comfortable, stylish and most importantly long lasting in use, which makes consumers

investment in it worth it.

Target Market

The target market for this product is male and female college and graduate

students ages 18-30 who are physically active at some level. Behaviors of this target

market include exercising, multitasking and walking or commuting to school or work.

According to the results from my target market survey, shared needs of people in this

target market are that they need a backpack that is durable and can be used as a

multipurpose bag. A shared attitude of people who took the survey was that if the

backpack is expensive but worth the price, they will buy it.

Brand Character

The Surge II Transit addresses the target markets shared needs and attitudes

because it is a backpack that can be used as a multipurpose bag, is durable and is worth

the price since it lasts for a long time. The product experience should make people feel

like they invested in a backpack that is worth the cost, comfortable and able to carry

many things. People should also feel cool since they have a stylish backpack. The Surge

II Transits personality is one that is adventurous, meant for people who want to achieve

and explore both academically and actively. The backpacks personality could also be

described as adaptive, aesthetically pleasing, sophisticated, multifunctional and a

backpack that is used by a leader.

Benefits:

The key benefits of this backpack that need to be communicated effectively are

that it is worth the cost because it durable and will last customers a long time, as it is
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made out of Hyper-durable ballistics nylon (Surge II Transit Backpack). It also addresses

customers need for having a backpack that is not only durable but also one that can be

used as a multipurpose bag, as it is note for its versatility in uses as a bag for outdoor use

or as storage for school or work supplies. Additionally, the backpack is stylish and

comfortable, which were attributes people who took the survey agreed were also

important and needed in a good backpack. To ensure comfort, the backpack has a padded

air-mesh back panel with Spine Channel and PE sheet to support the customers back and

to provide relief (Surge II Transit Backpack).

Advertising Approach

For this ad I think it is important to focus mainly on the backpack as being a bag

that can be used for multiple purposes so customers in the target market can identify with

it. The ad also needs to show that it is a backpack that everyone who is college and

between the ages of 18-30 needs because it will make their life easier by having a

backpack that is durable, comfortable and multifunctional. The ad campaign should

resonate with a variety of people in college, as some may not engage in physical activity

as much as others and some may focus mainly on academics.

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Creative Concept Explanation:

I chose to do a full-page magazine ad so customers can comprehend the benefits

and features of the backpack. I think it is important for an ad that shows a backpacks

features and benefits to have a lot of space so the reader can comprehend the ad and

understand why they should purchase the backpack. The ads headline A Backpack For

Every Need tells college and graduate students what the backpack will do for them. The

sub headline Never Stop Learning and Exploring with the Surge II Transit Backpack

strategically targets the target audience by telling them that this backpack will allow them

to keep learning and exploring as college and graduate students. The copy below the sub

headline will detail the benefits and features of the backpack and why it is worth the

price. The copy will be written persuasively so customers will gain a desire for the

product as well as comprehend why they need it.

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Media Plan

Audience Objectives

The target audience to reach with this advertising campaign is male and female

college or graduate students ages 18-30 who are physically active at some level.

Behaviors of this target audience include exercising, multitasking and walking or

commuting to school or work.

Message-distribution objectives

The desired message weight for this advertising campaign is 1 million people. The

geographic reach of the campaign includes the state of Oregon, Washington and Idaho.

According to the 2013 U.S. Census report, a combined total of 1 million men and women

ages 18-30 live in the three previously mentioned states. That number does not count

children, since it is specific to the target audiences age group. The North Face is an

international brand; however, many people in the Northwest tend to be customers of it,

which is why I am focusing on that geographic segment.

The starting date of the campaign will be July 30, 2015, and the ending date will

be November 27, 2015. This is the best time to have the campaign since students start

getting ready to go back to school by August and may invest in buying a new backpack

anytime during their fall semester. The ending date is significant because it is on Black

Friday, leaving the option open for students to purchase it right before Christmas.

Ad Frequency
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The desired average frequency of exposure to the ad is 8 times per audience

member. This is a large audience that would have many chances during the four-month

campaign period to see the ad.

Media Strategy

For a mixed-media approach, I chose to focus on print magazines and online and

print newspapers. In a magazine, there is more space on the page to build the products

image and to show its uses. Additionally, newspapers often come out frequently, making

it easier for customers to be exposed to the ad (2015, Arens, Schaefer, & Weigold). Most

college students dont watch or have TV, causing it to be a media vehicle that wouldnt be

as effective for this campaign as a print or online ad. Customers can also keep or cut out

the advertisement to save if they are interested in the product, whereas with TV they are

only exposed to it as often as the product is advertised.

College students are a hard group of people to reach through advertising, so I

decided to use many outlets and possible ways to reach them. I chose to advertise in

large, public-university student newspapers because students are more likely to see it in

there, since there arent as many publications at a university. I also decided to run my ad

on the student newspapers website, because if students see the ad online, they may be

more likely to go directly to The North Faces website to purchase the backpack.

Additionally, students who attend the University of Oregon are often physically active,

which makes it a great place to advertise to students who would likely purchase the

backpack.

I chose to place my ad in The Oregonian and The Seattle Times because they are

newspapers that have the most reach in their state. I could not find the advertising costs to
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run the ad on both of their websites, but I would plan to if their online rates were

available. Since my target audience is males and females ages 18-30 who are physically

active and in college or graduate school, I thought it would be a good idea to advertise in

two well regarded newspapers that most people in either state use to get their news. I also

know that a lot of college students like The Oregonian and/or The Seattle Times on

Facebook and could be exposed to the ad if they choose to read an article and the ad is on

the page they are reading.

I chose to run my ad in Sports Illustrated magazine because it is one of the few

magazines that college-aged men and women both read. I also think it is important for an

ad that shows a backpacks features and benefits to have a lot space so the reader can

comprehend the ad and understand why they should purchase the backpack.

In addition to all of the media vehicles I have already engaged in, if I were to go

further in reach for my geographic segment, I would advertise in Boise State Universitys

student newspaper, The Arbiter. I would also put an ad in Idahos main state newspaper,

the Idaho Statesman, which is based out of Boise, Idaho.

Positioning and Schedule of Insertion

For all of the newspapers I chose, the positioning is run of paper. For the

magazine ad in Sports Illustrated, it is run of book. However, it is geographically targeted

in the regional edition of the magazine for the Portland/Seattle area. For all of the

newspapers that the ad is placed on their online site, they are run of site as well.

For the student newspapers, the ad would run every other week starting in August

and ending around Thanksgiving in November so the students have plenty of chances to

be exposed to and comprehend the ad. For the state newspapers I am having the ad run 6
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times during the campaign. It would run twice in both the beginning of August and

September and once in the middle of October and November, since most students are

more likely to buy the backpack toward the beginning of their semester. For the ad in

Sports Illustrated, I would have it run once in August, twice in September and once in

both October and November. Since Sports Illustrated is a weekly magazine, I would have

the ad run toward the beginning of each month. Additionally, the ad would run on all the

newspapers websites and would stay up for the amount of time specified in the budget

table. I think the budget for this sort of a short ad campaign for a corporate company is

adequate, since The North Face made a reported $2 billion profit in 2013 (2013, VF Corp

Annual Report). All ad rates were found on the publications website. Estimated ad rates

for The Oregonian and The Seattle Times are from Media Brokers International.

Media Ad Cost per Number Total cost Audience CPM (or

Vehicle size/length insertion of for size (or CPP)

insertions schedule rating)

Daily 1/4v $329 10 $3,290 26,000 x $12.65

Emerald 5.04 x 5.9 (ever 10 =

U of O Full color other 260,000

Print week)
Daily Medium $500 4 months $2,000 859,000 x $5.82

Emerald Rectangle 4=

U of O 3,436,000

Online
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The Daily page $400 10 $4,000 45,213 x $8.84

UW Color (every 10 =

Print other 452,130

week)
10

The Daily Rail top $300 (Stays up $3,000 45,213 x $6.63

UW (300 x for 10 10 =

Online 250) weeks) 452,130

Seattle page $11,058 6 $66,348 1,800,000 $6.14

Times Color x6=

10,800,000

Sports Full page $298,800 5 $1,494,00 3,043,698 $98.17

x5=
Illustrated Color (weekly) 0 15,218,490

Magazine
The 1/4 page $6,548 6 $39,288 500,000 x $13.09

Oregonian Color 6=

3,000,000
Totals 51 $1,611,926 33,618,750

References
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Arens, W., Schaefer, D., & Weigold, M. (2015). Advertising (2nd ed.). NY: McGraw

Hill.

Census.gov. (n.d.). Retrieved from

http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=

qbkmk

Daily Emerald. (n.d.) Retrieved from http://www.dailyemerald.com/wp-

content/uploads/2015/03/EMERALD-rate-card-2014-2015.pdf

Horovitz, B. (2007, August 20). Backpacks: A new badge of cool. USA Today.

Retrieved from http://usatoday30.usatoday.com/tech/products/2007-08-19-

backpack_N.htm

IBISworld. (2015). Backpack & courier bag manufacturing in the US: Market research

report. Retrieved from http://www.ibisworld.com/industry/backpack-courier-bag-

manufacturing.html

Media Brokers International. (n.d.). Retrieved from

http://www.media-brokers.com/local-newspapers/ratecard/portland-oregonian-

431.aspx

Media Brokers International. (n.d.). Retrieved from

http://www.media-brokers.com/local-newspapers/ratecard/seattle-times-794.aspx

Our Story. (n.d.). Retrieved from http://www.thenorthface.com/en_US/ourstory

Sports Illustrated. (2015, May 1). Retrieved from

http://www.simediakit.com/files/SportsIllustratedMag/2015%20SI%20Rate%20C

ard.pdf
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Surge II Transit Backpack. (n.d.). The North Face. Retrieved from:

https://www.thenorthface.com/shop/surge-ii-transit-backpack

The Daily. (2015, January 1). Retrieved from

http://bloximages.chicago2.vip.townnews.com/dailyuw.com/content/tncms/assets/

v3/editorial/b/ba/bba14c30-d7ea-11e4-a9df6b53a8c59b05/551b0e1787

aac.pdf.pdf

The Oregonian. (2015, March 15). Retrieved from

http://www.oregonianmediagroup.com/business-solutions/digital-advertising/

The Seattle Times. (n.d.) Retrieved from http://mediakit.seattletimes.com

2013 VF Corp Annual Report The Northface Brand 2013 Financial Reporting. (n.d.).

Retrieved from http://reporting.vfc.com/2013/northface/index.html

VF Corporation - Press Releases. (n.d.). Retrieved from

http://www.vfc.com/index.php/news/press-releases?nws_id=9777F06A-7746-

000A-E043-A740E3EA000A

2013 VF Corp Annual Report The North Face Brand 2013 Financial Reporting. (n.d.).

Retrieved from http://reporting.vfc.com/2013/northface/index.html