Marketing Strategy and SWOT Analysis of Yeti

YETI is an Austin-based brand that has given America an incredible entrepreneurial success story. From coolers to stainless steel drinkware to stylish apparel, they are a top pick guaranteed to impress. They continue to make a great impression in the luxury product market. Yeti is most famous for its incredibly insulated and durable coolers. If you are searching to maintain ice for multiple days, Yeti offers a 45-liter cooler. It is a must-have for a weekend camping or a semi-hike. So, what is so special about Yeti? This blog will uncover Yeti’s general marketing, from their mission and vision, archetype, SWOT analysis, and chosen segment. 

The mission and vision statements of Yeti.

The mission statement of Yeti is as follows:

“To build the cooler, we’d use every day if it existed.”

Yeti strives for the highest level of excellence in every product they make, aiming to give people top-quality products that can improve their lives. They take great pride in the quality of their goods, so customers can be sure they are getting the best.

The founding team behind Yeti has been there, too, experiencing the one-too-many letdowns of inferior coolers and outdoor accessories. That is why they set up the shop to provide reliable, trustworthy products with real value for your hard-earned money. It offers items from sturdy designs that can hold their own in all kinds of adventurous scenarios to guarantees of the highest standards and the peace of mind that your provisions are safe. Yeti is passionate about ensuring you can explore and enjoy to the fullest.

Let us discuss the vision of Yeti below.

At Yeti, they bring you the best of the outdoors with world-class products that have been tested in even the harshest conditions. Their goal is to provide unforgettable experiences and make every journey special. Their team of experts works hard to ensure that their items can withstand any outdoor adventure, so you can concentrate on making the most of your time in nature. So join Yeti on the journey ahead and make some truly remarkable memories.

Founded in 2006, this company has made it its mission to provide long-term solutions for any outdoor cooler needs. Their vision is to ensure your needs are met and you get nothing but the best out of the market. When it comes to their goals, they know exactly where they want to go and what they need to do to get there.

Yeti’s vision statement concentrates on making your outdoor experiences worth your time. 

Next up, we are going to discuss the positioning plan of Yeti.

To do that, let us briefly examine this Instagram post. 

This picture aims to create an inviting atmosphere where you will focus on the product and the general idea. We are witnessing a casual friends’ gathering where everyone uses some Yeti product.

The first photo shows a heating mug placed on a dinner table. The second photo proves this is a gathering as somebody else uses a dry lemon piece to add a nice cinnamon drink to a Yeti cup. 

In the third photo, we see a different picture of a woman passing along the delicious-looking cinnamon drink in the perfect Yeti mug to a friend. In the last shot, we watch the friend pick up the mug. 

The hashtag of the post shows that wilderness is where Yeti products are most suitable. 

This post is simply advertising a new Yeti product. However, we can gather much more from it than solely what it is marketing.

The inevitable use in nature and the general aim of Yeti already give us a massive hint about the company.

Secondly, these people are aiming to face new experiences, whether it be somewhere in the wild or at the side of the road. It has to be closely intertwined with nature. 

Lastly, this product also speaks about your individuality. You carry the drink you enjoy the most to keep it warm and cozy in your bag and use it on the go. 

We need no more to unravel that the archetype that Yeti belongs to is the Explorer. 

What do we know about this archetype?

Desire: the latitude to discover who you are via investigating the globe​

Aim: to partake in a more profitable, more genuine, more fulfilling lifestyle

Strategy: journey, strive and encounter fresh experiences, run from entanglement and lethargy

These are the messaging levels of the archetype:

Level One: Estrangement, discontentment, perturbation, thirst, lethargy​

Level Two: striking the open lane, going out into the wilderness, investigating the planet​

Level Three: pursuing your own identity, to individuate, to evolve into becoming fulfilled​

Level Four: articulating originality and individuality

The Explorer archetype is an excellent fit for your brand if: 

• Your product makes people feel unrestricted, unorthodox, or pioneering.
• Your item is solid and sturdy or is suitable for service in nature, on the route, or in hazardous surroundings or occupations.​
• Your product can be bought from the internet, a catalog, or another alternative source.​
• Your creation allows people to communicate their uniqueness.
• People can consume and buy your product “on the go.”
• You strive to distinguish your brand from a triumphant Regular Guy/Gal or another conventional brand.​
• Your company owns an Explorer culture.

Yeti’s SWOT Analysis.

Strengths

Affordability and outstanding quality: YETI is excellent for those who want quality cooling products but want to save money. You can be assured of good quality for an affordable price! YETI is incredible because its low-cost operational structures help keep production costs down, meaning you do not have to pay top dollar for these excellent products. Plus, the company makes a lot of profit from its fantastic creations.

Significant profits: YETI has been super successful over the years, with healthy profits and a ton of reserves in the bank. Not to mention the large asset base they have built up, which gives the company extra security. With all this, YETI can easily invest in exciting new projects.

Utilization of automation: Using automation in YETI’s production enables them to allocate their resources while decreasing costs efficiently. It also helps maintain the quality of the goods they produce and can be tailored to quickly meet market demands since they can easily scale up or down.

Fantastic staff: YETI has poured immense resources and effort into training its staff, resulting in an incredibly skilled and enthusiastic workforce. Furthermore, YETI’s team members come from various educational backgrounds and cultures, giving them a unique perspective and allowing them to bring creative and diverse solutions. Beyond that, they hire professional specialists to manage, analyze, and recommend strategies to ensure YETI runs smoothly.

General uniqueness: YETI has a range of patents and trademarks that give it unique exclusivity, meaning no competitors can knock off or reverse engineer YETI products.

Brilliant online presence: YETI boasts an incredibly easy-to-use, interactive website and millions of social media followers, making them a digital powerhouse. Customers are highly engaged, response times are quick, and online reach and traffic to the website are steadily increasing.

Broad product range: YETI has a fantastic range of products, from mugs to ice chests. With its many outlets, retailers, and resellers, its distribution reach is vast and way ahead of its competition.

Preferred by various individuals: YETI may be a new name on the block, but they have quickly become a household favorite due to their exceptional products. Everyone knows and loves YETI, especially their target audience.

Weaknesses

Saving finances on research: Despite their products maintaining exceptional quality, YETI is spending less on research and development than some competitors. This could be detrimental to their market share if their competitors manage to bring out more innovative products.

Shipping and manufacturing challenges: CEO Matt Reintjes shared some forward-looking insights with investors that YETI may face supply chain issues in 2022. YETI’s coolers rely on Chinese production, so they must be shipped by container vessels to the US. Unfortunately, delays are likely, as the Chinese government has imposed lockdowns in some areas.

Huge pay on rent: Rather than owning their properties outright, YETI opts to rent them out, which can be a significant expense for the company. This means that paying rent adds to their operational costs.

Lower levels of assets: YETI’s ability to meet its urgent financial responsibilities is below the industry norm. Moreover, there are more current liabilities than assets, meaning YETI could have liquidity difficulties later.

Continuous insufficient cash flow: It can be easy to overlook proper financial planning regarding cash flows, resulting in needing more cash on hand and unplanned borrowing.

Numerous failed integrations and mergers: YETI has unfortunately faced a few merger and integration issues and even had to recall a product. Though such events may seem daunting, they do not necessarily have to damage YETI’s brand and reputation.

High employee turnover rate: Despite YETI’s generally positive work atmosphere, the company has recently seen a high employee turnover rate. The organization must dedicate time, money, and resources to training and developing new employees. Unfortunately, a decrease in employee morale due to company politics has contributed to the lack of skilled and qualified talent, putting YETI at risk.

Narrow product scale: A handful of YETI products dominate the market, while the others have minimal market share. This leaves YETI vulnerable as they depend heavily on these few products, opening them up to possible external threats.

Low-quality budget: Despite YETI’s excellent product quality, their low-quality control budget compared to their competitors may lead to products of lesser quality, which could damage their reputation and brand.

Opportunities

E-commerce widespreadness: The extraordinary rise in e-commerce, which was everyone’s favorite way to shop throughout the COVID-19 pandemic, is an excellent opportunity for YETI; a chance for them to expand and add another way to sell their goods: through an online store.

The new social media networks: Besides Facebook, Instagram, Twitter, and YouTube, YETI can also jump on the latest trend with social media platforms like Tiktok. It would take little effort to hire creative production, social media, and content management teams to create and share some great stuff with their followers. Of course, with YETI being all about having an adventure outdoors by fishing, hiking, and other activities, there is bound to be some pretty awesome content, so it is worth the effort.

New technological developments: The fantastic advances in manufacturing, computer, automation, the internet, and other technologies are helping so many departments in so many ways. For example, automated machines can make top-notch, long-lasting products more affordable. Also, thanks to the computer and internet, businesses can gather valuable data to boost customer relations and marketing success. 

More people can buy it: Thanks to a boost in average household income, consumer spending in the country has increased. This is excellent news as it means that more people, even those who previously could not afford it, can now buy YETI products. This may open up new markets for the company.

Environmentally friendly items: At YETI, they take responsibility for the planet seriously. They do more than create better products for the environment to meet customer demand. They also take advantage of government subsidies to make these items more accessible.

Expanding to more countries: Moving into other countries offers YETI incredible opportunities, not only to experience something new but also to have access to new markets.

Threats

Developing competitors: Businesses are now developing or embracing exciting new technologies to transform their production, operations, marketing, customer service, and more. Customers who have had a positive experience with such technologies will be drawn to these businesses.

Competitors stealing market share: As competitors such as Otterbox, Hydro Flask, ORCA, and RTIC introduce excellent but more reasonably priced products, YETI’s market share could be affected. Lower prices could also mean less profit for YETI. If they choose to stay with their current pricing structure, they could risk their position in the market.

Political uncertainties: YETI’s planned development could stumble with changing government regulations and political tensions. Unstable financial and economic conditions and fluctuating interest rates can complicate things, possibly harming the company’s performance and incurring added costs.

Fluctuating exchange rates: If YETI chooses to grow its business worldwide, there are several complications to watch out for, such as changing currency values, tighter international trading regulations, increasing fuel prices, compliance standards, etc.

Changing customer needs: YETI is regularly challenged to keep up with the ever-evolving requirements of its consumers, which can sometimes take time to manage. Keeping current with the market’s preferences can stretch their operations, finances, marketing efforts, and more.

The segment that Yeti has chosen to target. 

Once again, nature is a massive aspect of this video. We are following two people on their numerous adventures in the desert, under the rain, in the ocean, in snowy mountains, etc. 

The music and family vibes provide an inviting aura, making the viewers believe that nature is the perfect place to feel at home because it is everybody’s ultimate home. 

So what can we gather here? 

The first hint is that every shot in this video was extraordinary, outstanding, and fun.

And the second hint is that people spend time in this ad with their loved ones.

With that being said, the segment that Yeti has chosen to target is Sharers.

What do we know about Sharers?

Lifestyle and values: 

Sharers love to ensure their life is fun and full of adventure, risk, and variety. Without it, life would be boring. Therefore, they want the home to b cozy, the cooking to be tasty, and the family to be loved and cared for. Time in the kitchen with family and friends is often highly valued, and Sharers do not mind spending a bit extra on healthy, high-quality foods. Shopping around at different stores is also a great pastime that usually culminates in a few thoughtful purchases, although if they like something, they may have to snatch it up.

Sharers strive for both personal fulfillment and financial security. They keep track of their progress based on how much money they make. Additionally, they care for their bodies; this maintains their attractive look and emotional health. Sharers invest in stylish clothing and like to keep a healthy physical lifestyle.

Attitude towards shopping: 

Sharers are shoppers of luxury brands who have a loyal relationship with their favorite companies. However, they also like to broaden their horizons by trying new ones, not only out of curiosity but because it is also exciting. 

They love shopping, keeping up with the trends, and exploring; it is a fun hobby they can enjoy with their families. When it comes to buying luxury items, they do their research and look for the best deals and discounts available.

Other interesting facts:

• Enjoy fixing something, renovations, furniture construction, etc.
• They adore watching films and entertaining themselves with magazines.
• Periodically will consume books about cooking, wellness, gardening, and place of residence. 
• Occasionally they will eat at pubs or fast food restaurants. 
• If a cultural occasion interests them, they will view it on TV. 
• They do not typically go away; instead, they scroll on social media. 
• They love learning about celebrity buzz and stay away from economics and politics; they also love watching TV to escape reality.
• Are moderate radio consumers
• New technological gadgets make them uneasy because they have not remained updated on technology development.

And that wraps up the blog focusing on the various marketing aspects of Yeti. We spoke about its mission, vision, archetype, SWOT analysis, and targeted segment. For more blogs like this, please stop by our main website, where we regularly update our feed with something new.