YETI Holdings, Inc. (YETI)

Introduction

As the world becomes increasingly focused on health and wellness, the outdoor industry continues to experience rapid growth. In fact, the global outdoor market is expected to reach $18.9 billion by 2026, with a compound annual growth rate of 4.1%. This growth is driven by a variety of factors, including a greater emphasis on physical activity, heightened awareness of the benefits of spending time outdoors, and an increasing interest in nature-focused vacations and experiences.

One company that is capitalizing on this trend is YETI Holdings, Inc., a premium outdoor lifestyle brand that is dedicated to designing, manufacturing, and marketing high-quality products that resonate with outdoor enthusiasts and professionals alike. From coolers and drinkware to bags and accessories, YETI's innovative and durable products are designed to enhance customers' outdoor experiences and provide them with the tools they need to enjoy the great outdoors to the fullest.

With a commitment to product innovation, a strong brand reputation, and a multi-channel distribution strategy that includes direct-to-consumer sales, specialty retail partnerships, and strategic licensing agreements, YETI is perfectly positioned to capitalize on the growth of the outdoor industry and provide customers with the high-quality, durable products they need to enjoy their outdoor adventures to the fullest.

Key Partnerships

YETI's success is highly dependent on its Key Partnerships, which provide the necessary resources and expertise to manufacture and distribute its premium products. Manufacturing Partners: YETI works with a network of manufacturers to produce its various product lines, including coolers, drinkware, bags, and accessories. It relies on these partners for the production and assembly of its products, ensuring that they meet the highest quality standards before they are released to the market. Distribution Partners: YETI products are sold in various channels, including direct-to-consumer, wholesale, and retail. YETI partners with distributors across the globe to ensure that its products are available in different markets. These partnerships help YETI extend its market reach and increase sales. Marketing Partners: YETI works with marketing partners, such as advertising agencies, PR firms, and social media influencers, to promote its products and brand. These partnerships help YETI reach a wider audience and build brand awareness. Marketing partners also help YETI keep up with the latest trends and techniques in advertising and branding. R&D Partners: YETI partners with universities, research institutions, and other companies to develop new technologies and innovate its product lines. These partnerships help YETI stay ahead of the competition by continuously improving its product offerings. Certification Partners: YETI's products are certified by regulatory bodies and organizations to ensure they meet specific standards. YETI partners with these certification bodies to obtain the necessary certifications and comply with regulations, such as REACH, California Proposition 65, and FDA regulations. In conclusion, YETI's Key Partnerships play a crucial role in the success of the business. These partnerships provide the necessary resources, expertise, and support to manufacture, distribute, market, innovate, and certify its premium products.

Key Activities:

YETI Holdings, Inc. is a leading designer and marketer of outdoor lifestyle products such as coolers, drinkware, and bags. In order to successfully run its business, YETI must undertake various key activities that are essential for its operations. These key activities can be summarized as follows: 1. Research and Development: YETI invests heavily in research and development, which is one of its key activities. The company continuously strives to innovate and develop new products to meet the evolving needs of its customers. The company’s R&D team works tirelessly to test new materials, develop new designs, and improve the performance of its existing products. 2. Marketing and Advertising: To create brand awareness and attract customers, YETI engages in extensive marketing and advertising campaigns. The company uses various channels such as social media, television, print media, and sponsorships to reach out to its target audience. 3. Manufacturing: YETI’s manufacturing operations involve the production of high-quality products with strict adherence to quality control standards. The company has its manufacturing facilities in the United States and Asia. 4. Sales and Distribution: YETI’s sales and distribution network is one of its key activities. The company collaborates with distributors and retailers to sell its products in various regions. YETI also sells its products directly to customers via its website and flagship stores. 5. Customer Service: YETI understands the importance of providing excellent customer service. It has a dedicated team of customer support professionals who respond to customer queries promptly and provide assistance in case of any issues with the product. 6. Supply Chain Management: YETI has a robust supply chain management system in place that involves the sourcing of raw materials, inventory management, and logistics. The company works closely with its suppliers and logistics partners to ensure timely delivery of products to customers. In conclusion, YETI’s key activities encompass research and development, marketing and advertising, manufacturing, sales and distribution, customer service, and supply chain management. These activities are crucial to YETI’s success in the outdoor lifestyle products market.

Key Resources

Key resources refer to the essential assets that a company requires to create and deliver its products and services effectively. For YETI Holdings Inc., the following are the main key resources:

• Raw materials: As YETI manufactures high-quality outdoor products such as coolers and drinkware, raw materials like steel, aluminum, and plastic are crucial to ensure the durability and functionality of its products. The company sources these materials from reliable suppliers and manufacturers to maintain its reputation for quality.
• Manufacturing facilities: YETI owns modern and efficient manufacturing facilities in the United States, and these facilities utilize state-of-the-art technology that enables the company to produce high-quality products, reduce operating costs, and increase productivity. YETI also has an extensive global supplier network, enabling it to source raw materials and components from different parts of the world, ensuring that it meets demand for timely delivery.
• Technology: Technology is an essential resource for YETI since it enables the company to stay ahead of its competitors and produce innovative products. YETI invests heavily in research and development to ensure it remains a leader in product design, packaging, and logistics. The company uses technologies such as computer-aided design (CAD) and finite element method (FEM) to improve product design and reduce production costs.
• Intellectual property: As a company known for its innovative and high-quality products, YETI has an extensive portfolio of patents, trademarks, and other intellectual property assets. The company's intellectual property assets serve as a competitive advantage in the highly competitive outdoor industry, making it challenging for competitors to copy its products.
• Human resources: YETI has a highly skilled and experienced workforce. The company employs experts in product design, engineering, marketing, sales, and logistics. These professionals are instrumental in driving the company's growth and ensuring it maintains its reputation for quality outdoor products.

Value Propositions

YETI Holdings, Inc. is a leading manufacturer of premium outdoor products, including coolers, drinkware, bags, and outdoor gear. YETI's value propositions include:

• Durability: YETI products are built to withstand the toughest outdoor conditions, ensuring they can keep up with users' active lifestyles.
• Performance: YETI's products are designed to provide superior performance, from keeping drinks cold for days to providing ample storage space for outdoor gear.
• Quality: YETI uses top-quality materials and manufacturing processes to create products that are both functional and aesthetically pleasing.
• Brand reputation: YETI has built a strong brand reputation based on its commitment to quality, durability, and performance.
• Customization: YETI offers a variety of customization options for its products, allowing customers to create unique, personalized items.
• Customer service: YETI is committed to providing outstanding customer service, including fast shipping and hassle-free returns.

These value propositions are key to YETI's success in the outdoor industry, as they help the company differentiate itself from competitors and attract and retain customers who value high-quality, durable products. By continuing to innovate and improve its offerings, YETI can continue to build on its strengths and grow its customer base.

Customer Relationships

YETI prides itself on providing exceptional customer service and building strong, long-term relationships with our customers. We understand the importance of creating a positive customer experience, and our team is dedicated to meeting and exceeding our customers' expectations. To achieve this, we offer a variety of customer support channels, including email, phone, and live chat. Our support team is highly trained and knowledgeable, able to provide answers and solutions to any questions or issues our customers may have. We also engage with our customers through social media, regularly responding to comments and messages to build a sense of community around our brand. In addition to offering excellent customer service, we also prioritize maintaining a high level of product quality. Our products are built to last, and we stand behind them with a robust warranty program. Our customers know they can trust the reliability and durability of our products, which in turn strengthens their loyalty to our brand. Furthermore, we actively seek and incorporate feedback from our customers. We gather insights through surveys, focus groups, and online reviews to continually improve our products and customer service. This feedback loop allows us to stay attuned to our customers' wants and needs, and make adjustments as necessary to ensure their satisfaction. Overall, we prioritize building strong and lasting relationships with our customers by offering exceptional service, maintaining high product quality, and actively seeking and incorporating customer feedback.

Channels

YETI's products are sold through a variety of channels to reach its target market of outdoor enthusiasts, hunters, and fishermen. The following channels are used to distribute and sell YETI products:

• Retailers: YETI has partnerships with a wide range of retailers, from big-box stores like Bass Pro Shop and Cabela's to smaller specialty retailers like REI and Academy Sports. YETI products are sold in-store and online through these partnerships.
• E-commerce: YETI has its own e-commerce platform which offers customers a user-friendly experience to purchase products directly. Their website is available in multiple languages and with a user-friendly interface. They aim to reach their customer base directly within the comfort of their homes or offices.
• Collaborations: YETI has collaborated with a number of companies and organizations on branded products such as the National Parks and Seafoam product collections. These collaborations help expand YETI's reach to new customers who may not have heard of the brand before.
• Events: YETI sponsors and participates in outdoor events, festivals, and shows such as SXSW and the Austin City Limits Music Festival. Through these events, YETI is able to interact with customers and introduce them to their products.
• Social media: YETI uses social media channels such as Instagram, Twitter, and Facebook to promote their products, share customer photos, and engage with their customer base. Social media is an essential platform which provides a more personalized and direct approach for businesses to market and even directly interact with their customers.

All of these channels are important in reaching YETI's target market and expanding their customer base. By partnering with retailers, selling products directly through their e-commerce platform, collaborating with other companies or organizations, participating in events, and engaging with customers through social media, YETI is ensuring that their products are widely available to the customers who need them.

Customer Segments

YETI serves a wide range of customers with diverse needs in the outdoor and lifestyle industries. The following are the customer segments that we target:

• Outdoor enthusiasts: This segment includes individuals who enjoy hunting, fishing, camping, and other outdoor activities. They require high-quality and durable gear to withstand harsh outdoor conditions.
• Professional hunters and anglers: This segment includes individuals who are engaged in hunting and fishing as a profession. They require specialized gear that would enhance their performance and help them succeed in their endeavors.
• Boaters and water sports enthusiasts: This segment includes individuals who enjoy boating, kayaking, paddleboarding, and other water activities. They require gear that would keep their beverages and food cold and refreshing for extended periods.
• Construction and tradespeople: This segment includes individuals who are engaged in construction, plumbing, electrical, and other manual works. They require gear that would keep their food and drinks at their desired temperatures throughout the day.
• Corporate gifting and promotions: This segment includes corporate clients who seek to gift their employees or customers with high-quality and branded YETI products.

We also serve a niche market of customers who value high-quality and innovative products that stand the test of time. These customers are willing to pay a premium for YETI products, given the quality and value proposition that we offer.

Cost Structure

YETI Holdings, Inc. operates on a premium pricing model that reflects the high-quality materials and manufacturing processes used in the production of its products. The company incurs significant costs in the production and distribution process. Production Costs: YETI must incur costs for the production of its high-quality products. The company uses premium materials such as stainless steel, foam insulation, and rotomolded plastic. The costs associated with sourcing these materials, shipping them to production facilities, and the production processes themselves contribute to the overall production costs of YETI products. Distribution Costs: YETI distributes its products through its own branded stores and online platform, as well as through third-party retailers such as REI and Bass Pro Shops. The company incurs costs related to shipping, inventory management, and marketing to promote its products to retailers and consumers. Sales and Marketing Costs: YETI invests heavily in sales and marketing efforts to maintain its premium brand image and promote its products effectively. This includes costs associated with advertising, sponsoring events and athletes, social media campaigns, and other promotional activities. Research and Development Costs: YETI invests in research and development to continually improve its products and drive innovation in the industry. This includes costs associated with product testing, design, and hiring of engineers and product development specialists. General and Administrative Costs: YETI incurs general and administrative costs associated with running a large business. This includes costs such as rent, utilities, legal fees, and salaries for employees in departments such as finance, accounting, and human resources. To maintain its premium brand image and high-quality products, YETI incurs substantial costs throughout its production, distribution, marketing, and administrative activities. These costs are reflected in the premium pricing of YETI products.

Revenue Streams

YETI generates revenue through the following streams:

• Direct Sales: YETI sells its products directly to end-customers through its e-commerce website and retail stores. The company has also started selling its products through third-party online marketplaces like Amazon and dealerships.
• Indirect Sales: YETI's products are sold through wholesale distributors to retailers and dealers such as Bass Pro Shops, REI, and Academy Sports. The company has also partnered with outdoor sports retailers like DICK'S Sporting Goods and Cabela's to feature YETI products in their stores.
• Licensing: YETI grants licenses to third-party manufacturers and distributors to produce and sell products under the YETI brand name. This arrangement generates a royalty for YETI.
• Services: In addition to selling physical products, YETI offers repair and customization services to its customers directly through its website and retail locations.

Through these multiple revenue streams, YETI has established robust and diversified revenue streams that continue to grow year over year.

Conclusion

YETI Holdings, Inc. has a strong foundation for success with its durable and high-quality products that appeal to outdoor enthusiasts and a growing audience of lifestyle consumers. Through our unique marketing strategy, we aim to maintain our position as a premium brand and foster customer loyalty.

The Business Model Canvas has allowed us to identify key areas for growth and sustainability, including our supply chain, partnerships, and distribution channels. By continuing to cultivate these relationships and innovate our product lines, we can capitalize on market opportunities and remain competitive in the long-term.

• Through our direct-to-consumer sales channel, we can offer personalized shopping experiences and build stronger connections with our customers.
• Our partnerships with retailers and wholesalers allow us to reach a wider audience and increase our brand exposure.
• Our investment in research and development will allow us to create new products that meet the evolving needs and preferences of our target market.

In conclusion, YETI Holdings, Inc. is well-positioned to continue its growth trajectory and achieve long-term success. By leveraging our strengths and addressing key challenges, we can maintain our position as a top-performing brand in the outdoor and lifestyle markets.