Free TREW Gear: Is Amazon the Trail to Growth? Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-12-03

Harvard Case - TREW Gear: Is Amazon the Trail to Growth?

"TREW Gear: Is Amazon the Trail to Growth?" Harvard business case study is written by Jim Lecinski, Helena Bouchez. It deals with the challenges in the field of Marketing. The case study is 22 page(s) long and it was first published on : Jun 23, 2022

At Fern Fort University, we recommend that TREW Gear leverage Amazon's platform to expand its reach and drive growth, while simultaneously building its own direct-to-consumer (D2C) channel. This strategy will allow TREW to capitalize on Amazon's vast customer base and established logistics network while maintaining control over its brand image and customer relationships. This approach will involve a multi-pronged strategy encompassing strategic product selection, targeted marketing, and a robust customer experience strategy.

2. Background

TREW Gear is a young, innovative outdoor apparel company based in Bozeman, Montana. Founded by a passionate group of outdoor enthusiasts, TREW has garnered a loyal following for its high-quality, functional, and stylish clothing. The company faces a significant challenge in scaling its business and reaching a wider audience. While its direct-to-consumer website generates sales, it struggles to compete with larger, established brands on a national scale.

The case study focuses on the company's decision to explore Amazon as a potential growth channel. The main protagonists are:

  • Tim Blixseth: TREW's founder and CEO, passionate about the brand and its mission.
  • Matt Blixseth: Tim's brother and TREW's COO, focused on operational efficiency and profitability.
  • The TREW Team: Dedicated to creating high-quality outdoor apparel and growing the brand.

3. Analysis of the Case Study

This case study presents a classic dilemma faced by many small businesses: how to balance growth with brand control. To analyze this situation, we can apply a framework that considers both internal and external factors:

Internal Analysis:

  • Strengths:
    • Strong brand identity and loyal customer base.
    • High-quality, innovative products.
    • Dedicated and passionate team.
    • Strong focus on sustainability and corporate social responsibility.
  • Weaknesses:
    • Limited marketing budget.
    • Lack of brand awareness outside its core customer base.
    • Limited resources for large-scale distribution and logistics.
    • Dependence on a single sales channel (direct-to-consumer).

External Analysis:

  • Opportunities:
    • Growing demand for outdoor apparel.
    • Increasing popularity of online shopping.
    • Amazon's vast customer base and established logistics network.
    • Potential for brand expansion into new product categories.
  • Threats:
    • Intense competition from established brands.
    • Price pressure from online retailers.
    • Potential for brand dilution on Amazon.
    • Dependence on Amazon's platform and policies.

SWOT Analysis: This analysis highlights that TREW has a strong foundation but needs to address weaknesses and capitalize on opportunities to achieve sustainable growth.

Marketing Analysis:

  • Target Market: Outdoor enthusiasts, active individuals, and fashion-conscious consumers who value quality and sustainability.
  • Marketing Strategy: TREW's marketing strategy should focus on building brand awareness, engaging with the target audience, and driving sales through a multi-channel approach.
  • Brand Positioning: TREW should position itself as a premium, sustainable outdoor apparel brand that offers high-quality, functional, and stylish products.

Financial Analysis:

  • Pricing Strategy: TREW needs to carefully consider its pricing strategy on Amazon to remain competitive while maintaining profitability.
  • Cost Structure: The company should analyze its cost structure to identify areas for optimization and ensure profitability on Amazon.
  • Growth Metrics: TREW should track key metrics such as sales growth, customer acquisition cost, and customer lifetime value to measure the effectiveness of its Amazon strategy.

Product Analysis:

  • Product Selection: TREW should carefully select products for Amazon based on market demand, profitability, and brand alignment.
  • Product Differentiation: The company should highlight its unique features and benefits to differentiate itself from competitors on Amazon.
  • Product Lifecycle Management: TREW should monitor product performance on Amazon and adjust its product portfolio accordingly.

4. Recommendations

TREW should implement a multi-pronged strategy to leverage Amazon's platform for growth while maintaining brand control:

1. Amazon Strategy:

  • Strategic Product Selection: Focus on high-demand, profitable products that align with TREW's brand identity and target market.
  • Pricing Strategy: Offer competitive pricing while maintaining profitability. Consider Amazon's 'Fulfillment by Amazon' (FBA) program to streamline logistics and potentially offer Prime eligibility.
  • Marketing and Advertising: Utilize Amazon's advertising platform to reach a wider audience and drive sales. Experiment with different ad formats and targeting options.
  • Customer Experience: Provide excellent customer service, respond promptly to inquiries, and address any issues efficiently.

2. Direct-to-Consumer (D2C) Strategy:

  • Website Enhancement: Improve the user experience on TREW's website, optimize for search engines, and offer seamless online shopping.
  • Content Marketing: Create engaging content that showcases TREW's brand story, products, and values. Utilize social media platforms to connect with customers.
  • Email Marketing: Build an email list and use targeted email campaigns to nurture customer relationships and promote new products.
  • Loyalty Programs: Implement a loyalty program to reward repeat customers and encourage brand advocacy.

3. Brand Management:

  • Brand Consistency: Maintain a consistent brand message and image across all channels, including Amazon.
  • Brand Storytelling: Share TREW's story and values with customers to build emotional connections and foster brand loyalty.
  • Customer Relationship Management (CRM): Invest in a CRM system to manage customer data, personalize communications, and enhance customer experience.

4. Innovation and Product Development:

  • Product Innovation: Continuously develop new products that meet evolving customer needs and market trends.
  • Sustainability: Maintain a commitment to sustainable practices throughout the product development and manufacturing processes.
  • Technology Integration: Explore the use of AI and machine learning to optimize product development, marketing, and customer service.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: Leveraging Amazon's platform aligns with TREW's growth objectives while maintaining its commitment to high-quality, sustainable products and brand values.
  2. External Customers and Internal Clients: The strategy addresses the needs of both external customers seeking convenient access to TREW's products and internal clients (TREW team) seeking growth and profitability.
  3. Competitors: The strategy acknowledges the competitive landscape and aims to differentiate TREW through its brand identity, product quality, and customer experience.
  4. Attractiveness: The strategy is expected to drive significant sales growth, increase brand awareness, and enhance profitability.

Assumptions:

  • TREW can successfully adapt its products and pricing strategy for Amazon's platform.
  • Amazon's platform will continue to grow and provide a valuable channel for reaching new customers.
  • TREW can maintain its brand identity and values while selling on Amazon.

6. Conclusion

By implementing a strategic approach that leverages Amazon's platform while building a robust direct-to-consumer channel, TREW Gear can achieve sustainable growth while maintaining brand control. This strategy will allow the company to capitalize on the opportunities presented by the online marketplace while staying true to its core values and customer base.

7. Discussion

Alternatives not selected:

  • Solely relying on Amazon: This approach would risk brand dilution and dependence on Amazon's platform.
  • Abandoning Amazon: This would limit TREW's potential for growth and reach.

Risks:

  • Brand Dilution: TREW needs to carefully manage its brand image on Amazon to avoid dilution.
  • Competition: The competitive landscape on Amazon is intense, and TREW needs to differentiate itself to succeed.
  • Dependence on Amazon: TREW should not become overly reliant on Amazon and should continue to develop its own D2C channel.

Key Assumptions:

  • TREW's products will resonate with Amazon's customer base.
  • TREW can successfully manage its logistics and fulfillment on Amazon.
  • Amazon's platform will remain a viable growth channel for TREW.

8. Next Steps

  1. Develop a detailed Amazon strategy: This should include product selection, pricing, marketing, and customer service plans.
  2. Create a dedicated team: This team should be responsible for managing TREW's Amazon presence.
  3. Launch a pilot program: Start with a limited product selection on Amazon to test the waters and gather data.
  4. Monitor performance: Track key metrics to measure the effectiveness of the Amazon strategy.
  5. Continuously improve: Based on performance data, refine the Amazon strategy and make adjustments as needed.

By taking these steps, TREW Gear can successfully leverage Amazon's platform to drive growth while maintaining brand control and achieving its long-term objectives.

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Case Description

Chris Pew, an expert backcountry skier, was a founder and the CEO of 12-year-old TREW Gear, a premium niche brand for technical backcountry ski apparel. TREW Gear's products--snow bibs, jackets, pants, and accessories--were selling well through independent and specialty retailers and direct to consumers on trewgear.com. Heavy on Pew's mind, however, was how to continue growing the business, particularly the question of whether he should start selling TREW products on Amazon.com. Would TREW's presence on the behemoth US-based e-commerce platform help the company grow, long-term? Shorter-term, would selling on Amazon deliver the 20% increase in revenues his investors wanted to see by the end of the year? And if Amazon wasn't the best choice, what distribution strategy should he embrace?

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