REI Marketing Environment Worksheet
List the current characteristics of each environmental factor as they relate to REI.

U.S. Economy
How does the current U.S. economy affect REI retail operations?

1. Though the U.S. economy is still in recovery from recession, outdoor equipment retailers, like REI, are still seeing a profit. These profits could be from the rise of survivalist or preppers, and they could also be that American are not sacrificing what they enjoy (Stienstra, T. 2013). “According to the Outdoor Industry Association of America, 140 million Americans make outdoor recreation a priority in their daily lives, and they spent $646 billion last year and created 6.1 million jobs (Stienstra, T. 2013).”

2. REI’s market is also effected by consumers’ income. With the recession and the slow rise of household incomes, people have less disposable income. This negatively impacts the sales for any business, the less money people have, the less they can spend. Paul Vigna writes in the Washington Post, that “wages overall are up since the recession’s start. The bad news: They’re down from the end of 2008, broadly flat over the past decade, and on an inflation-adjusted basis, wages peaked in 1973, fully 40 years ago.”

Legal and Regulatory Environment
What types of legal and regulatory forces affect REI in the U.S.?

1. REI states that many of their products come from sources around the world. REI has chosen to introduce its own factory Code of Conduct, and has joined forces with other groups that ensure that the products they receive from other countries are done so by responsible workplaces. In short REI values the importance of receiving products from ethically and environmentally conscious sources. (http://www.rei.com/stewardship/workplace.html)

2. REI must also abide by regulation set forth by the FDC, Federal Trade Commission, which has many bureaus one being the Bureau of Competition. The FDC protects the businesses as well as the consumers.

Socio-Cultural Forces
What types of social and culture trends affect REI?

1. REI’s provides products to consumers who enjoy outdoor activities, however they don’t necessarily cater to all outdoor activities. For example, Cabelas has products with an emphasis on hunting, where REI does not. The two consumer groups are both outdoor enthusiasts, but are both very different in their views and lifestyles.

2. The consumer’s values are also a factor that affects REI. People have become more aware of being healthy, environmentally aware, and they have become smart shoppers. Consumers are demanding, inquisitive, and discriminating (Lamb, Hair, McDaniel, 2012).

Technological Forces
What type of technology changes affect REI?

1. According to Lamb, Hair, and Mcdaniel’s MKTG 6, the recent economic factors have effected many businesses research and development departments.

2. REI is constantly improving in the area of being environmentally responsible, which includes putting new technology to work. According to REI’s website, they have a targeted approach to reduce their environmental impact, sustainable operations.

Competitive forces are also a part of the marketing environment, and we will review those in this unit’s second assignment.

References

About REI. (n.d.) Retrieved from http://www.rei.com/about-rei.html

Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). MKTG 6 (6th ed.). New York, NY: Cengage. ISBN: 9781133190110.

Stienstra, T. (2013) Outdoor Equipment Sales on the Rise. San Francisco Chronicle. Retrieved from http://www.sfgate.com/outdoors/article/Outdoors-equipment-sales-on-the-rise-4304980.php

Vigna, P. (n.d.) Best Indicator of the US Health is Wage Growth (or Lack Thereof). Washington Post. Retrieved from http://blogs.wsj.com/moneybeat/2013/04/16/the-best-indicator-of-u-s-health-is-wage-growth-or-lack-thereof/