REI Brand Equity Recreational Equipment

REI Brand Equity

Recreational Equipment Inc. (REI) is the largest outdoor clothing and gear retailer in the United States. Besides named brands such as Adidas, Nike, Garmin, Banana Boat, and more, it does sell its own brands under REI or Novara. The brand equity of the REI brand is mainly in the design, quality, and customer service for its products and therefore the major part of the company's success.

While many companies are combining different products for different application and offer them to their customers, REI is focused only on the outdoor products and the customer base which are hikers, bicyclers, skiers, campers, and other outdoor enthusiast. The products are designed with the use of them in mind and durability which is appreciated by all of its customers. Quality for its products is also a major concern for REI and the company therefore tests its products thoroughly by people which are very much involved in all kinds of out-door activities. The majority of REI's customers, mainly members, know about the quality and the service the company offers for its products and the customer satisfaction it focuses on. The company also repairs gear, and it sells merchandise online and through occasional catalogs (NAI, 2010).

REI is a co-op retailer and has about 3.8 million members currently. This is a reliable customer base and would make it hard for any new entrance competitor to enter the market. Another major advantage is the fact that the company is seriously involved in the environment protection and clean-up. REI offers many options to its customers and members to participate in special events with the main focus on environmental protection.

REI also has a 100% satisfaction guarantee, meaning that no matter how long it has been, even if you have no receipt, you may still return a product if it does not meet your standards. REI also has the most extensive product testing out of any outdoor retailer, so every purchase from REI is a quality one (NAI2, 2010).

The company's competitive positioning through brand equity can be seen in the variety of specialized out-door gears and clothing which is offered for any sex, age, and activity type. The fact that REI is very environment oriented and emphasizes on this fact in its advertisement and catalogs very much can also be seen as a major advantage, since its customers are the real out-door enthusiast which see the environment as a main part of their lives. Also the company offers travel services around the globe for its members and customers which increases the brand awareness for its products.

Major competitors to REI are companies such as L.L. Bean Inc., Patagonia Inc., and the Sports Authority Inc. The competitive factors for REI are the way their mission statement holds true to this day: "We inspire, educate and outfit for a lifetime of outdoor adventure and stewardship." Furthermore, the way the company conducts its business and includes the environment in all its activities, from marketing to sales. REI also was one of the first companies using the Internet as an advertising and sales media, which was in the mid-90's.