Essay About Rei’S Key Marketing Factors And Marketing Process

Marketing Process, Environment and Research
Marketing Process, Environment And ResearchApril ShepardBUS-FP3030 Unit 01a1Retail plays an important role in the economy of almost every country in the world as the interface between manufacturers and consumers. Retail has become a worldwide business.  “More than 1 billion consumers buy from retailers every day in department stores, specialty shops, supermarkets and over the Internet” (NRF, 2014, Para 7). The economic state is evaluated on many factors such as gasoline prices, employment or unemployment, housing market and home values, wages and income and lastly, are consumers saving or spending. Today, there is a retail tidal wave amongst the consumer world and they are not spending money as freely. Consumers are spending less which means few goods are being imported and less are being made. Recreational Equipment Inc. (REI) has done well considering the harsh economy over the last 5 years.  REI’s key marketing factors of the US economy, global economy, legal regulatory factors, and technology forces, have been instrumental to the overall success to the company’s growth. Retail is America’s largest private sector employer.  Retail drives the US economy and supports one out of every four jobs. The current global economy does not seem to be affecting REI. Over the last 75 years the company has had consistent growth. In fact, they have adapted from selling army surplus gear after WWII, to serving the needs of the baby boomer generation, and now the millennial generation.   “REI differs from the other sporting goods stores in their quality product selection, complements, and excellent brand promotions. These qualities enable REI to sell merchandising at a premium price level” (Feldman, 2007, Para 4). REI has a unique marketing strategy that focuses on product differentiation, social responsibility and a devotion to environmental sustainability.  One of the main reasons the company is so successful stems from the customer loyalty and passionate employees. This helps foster brand awareness and builds brand equity. Globally, retail is the third largest industry, impacting one in four jobs worldwide. Retail offers flexible employment. “More than 1 billion consumers buy from retail companies each day, with $13.2 trillion expected to change hands in 2015” (NRF, 2015). As retailers grow, traditionally they will grow internationally or globally. This becomes a risk to retailers because they have to be prepared for natural disasters, financial crises and political events across the world.  REI only has store operations in the US today. In 1998, REI attempted to go into the international market but failed due to customer price sensitively in its first market of Japan.  They do partner with factories throughout the globe.  Retail not only makes an important contribution to national economies worldwide but also ensures attractive prices for all income groups through competition that contributes to the stability of consumer prices.