Today our class visited VF corporation which was organized in 1889.
What is their mission?
VF’s people are the source of their success. They make their mission, “to grow lifestyle brans that excite customers around the world”, possible. They want to help people find the brand that fits their passion. They want you to do what you love while being yourself, being passionate, being innovative, being original, and being committed. Their goal is to make top quality products for their customers and continue to exceed the expectations of their customers.
Who are their customers?
Each of VF’s 30 plus brands offers something different to their customers. They are reaching new consumers all around the world. They have many different customers ranging from those looking for comfort to those seeking outdoor adventure. They have 3 marketing units. The first is Walmat, target, and K-mart, the second is Kohl’s, Sears, JC Penny and Macy’s, and the third is Tractor Supply and Boot Barn. There is difficulty with these markets because competitors do not want to hold and sell the same products as their top competitors. This is a challenge for VF but they continue to sell their 36 brands efficiently. Their biggest producer is Mexico at 22%, which allows them to reduce the cost of production and thus reduce the cost of the product. This keep their customers happy as they try to branch out to new demographics of customers.
What do their customers value?
While each of VF’s businesses is unique, all share a core respect for the individual and an appreciation of what each person can bring to the organization. VF encourages their customers to be passionate and do what they love. This enthusiasm is part of VF’s way of life. Innovation and active engagement make their brans leaders in the marketplace. The customers of VF not only value the top quality products but the atmosphere VF provides. They conduct businesses with the highest levels of honesty and integrity, and they foster a positive working environment based on creativity, collaboration and congeniality. VF is reducing their impact on the earth and this is a top priority in their global vision. They are committed to reducing their carbon footprint, reducing waste and increasing understanding and awareness of their sustainability goals. The customers also value the customer service as alpinist Conrad Anker said, “No other company has this level of interaction between athletes and designers. We’ll have an idea and the design team creates a prototype. Then we take it out on expeditions and give them real-time feedback to fine-tune it”. That is true customer service and the customer truly values it.
What are their results?
Whatever the passions and interests of VF’s associates are, they strive to create a work environment where everyone contributes to making their brands better. Their culture of mutual respect and integrity is one of the reasons why over 97% of their associates say they are proud to work for the company. Their competitive wages and excellent benefits, along with a wide variety of exciting career paths in locations across the globe, make it clear to see why so many talented people have chosen VF. VF associates share a deep commitment to diversity in people and ideas. This is why they have over 44,000 associates around the world. VF is a worldwide leader in branded lifestyle apparel, footwear, and related products. In 2012, VF revenues was $10.9 billion with an operating income of $1.5 billion. The five largest brands for VF are The North Face, Vans, Timberland, Wrangler, and Lee. The company is highly diversified with 25% of sales through e-commerce or owned stores, while 40% os sales are outside the United States. They have 1100 owned stores. VF produces 28% and sources 72%. They sell 450 million units annually across 36 brands. The company has 29 manufacturing facilities and nearly 1900 contractor facilities in 60 countries. The results of VF are impressive and they hope to continue on their path to success.
What is their plan?
Their goal is to continuously exceed the expectations of their customers, shareholders, and business partners. They continually find ways to improve their performance and generate bottom line results. Their plan is to remain innovative and provide next generation products to their customers. They want to continue to grow and expand their company to increase revenue. They have a future five year plan of focusing on core businesses, lifestyle brand extensions, direct-to-customers, new wholesale accounts and channels, and finding new customers. VF is a world leader in jeanswear and image wear. These companies are heritage brands with strong levels of profitability and cash flow but lower growth rates. This makes it harder for the company to expand but VF looks forward to a successful future of expansion and sales.
Follow
