Transcript Patagonia, Inc.

Patagonia, Inc.
Ellen Anderson
Jamie Pryse
Megan Gilmore
Overview
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Portland, brick-and-mortar location
Retail market strategy
– Mission statement
– Target market
– Retail mix
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Environmental Activism
SWOT analysis
Recommendations
Patagonia Portland Specifics
Nearest Location:
907 N.W. Irving St.,
Suite 100
Portland, OR 97209
Phone: (503) 525-2552
Fax: (503) 525-4944
Store Hours:
Monday – Friday: 10am-7pm
Saturday: 10am-6pm
Sunday: 11am-6pm
Closed:
Thanksgiving Day
Christmas Day
New Year's Day
Easter
Independence Day
Build the best product, do no
unnecessary harm, use business
to inspire and implement
solutions to the environmental
crisis.
–Patagonia's Mission Statement
Patagonia: Target Market
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Males & Females
– Ages 28 to 45
– Children younger than 12
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Independent/single or married
Personal income level $60,000 or higher
Lifestyle
– Active, outdoors/nature lovers, sports participation
– Concern for environment, sustainability,
conservation
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Recycle, carpool, purchase organic products
– Fashion v. quality
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Need high quality apparel for varying weather conditions,
less concerned with current trends
Patagonia Marketing Mix:
Product
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Designs, markets, distributes brands
– Patagonia, Lotus Designs, Water Girl
Lotus Designs –
high-quality paddling gear
 Water Girl –
high-quality women’s
apparel
inspired by water, nature
and outdoor
world
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Clothing, gear
accessories, luggage
Extensive research,
design
Patagonia Marketing Mix:
Product, continued
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First major retail
company to:
– switch to all
organic cotton
clothing
– use all non-toxic
dyes and materials
– make fleece made
from recycled
soda-pop bottles
Patagonia Marketing Mix:
Pricing
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Better/Bridge wholesale price zone
– Higher quality = higher price
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Recent annual sales around $240
million
Patagonia Marketing Mix:
Promotion/Communication
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Yvon Chouinard’s Book
– “Let My People Go Surfing”
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Highly accredited website
– 25,000 visits daily
– 75,000 visits during holiday or sales
– Brings in majority of sales
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1% for the planet campaign
Environmental grants
In-store promotions
Patagonia Marketing Mix:
Place/Location
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Privately held company
U.S., Europe, Asia, South America
– Portland
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Selective distribution
Limited marketing channel
– Stand alone stores and various retailers
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REI, Peak Sports, Scarlet Ibis Fly Shop
Use of catalog allows for wider demographic
Patagonia:
Environmental Activism
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1% For The Planet® organization
– at least 1% of sales or 10% of pre-tax profits –
whichever is more, to hundreds of grassroots
environmental groups all over the world
– over 25 million dollars in cash and in-kind grants
or donations thus far
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2005, launched Common Threads Garment
Recycling Program
– Customers return their worn out Capilene®
Performance Baselayers, Patagonia fleece,
Polartec® fleece from other manufacturers,
Patagonia organic cotton T-shirts for recycling
Patagonia:
Environmental Activism
Continued
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1989, Patagonia co-founded
The Conservation Alliance
– 70 member companies, each of which contributes annual
dues to a central fund
– donates 100 percent of membership dues to grassroots
environmental groups working to protect threatened
wildlands and biodiversity
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1993, created the Patagonia Employee Internship
Program
– employees leave jobs at Patagonia for up to two months
– work full-time for the environmental group of their choice
while Patagonia continues to pay employees’ salaries and
benefits
– environmental group gets them for free
Patagonia:
Environmental Activism
Continued
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Buildings, Reno Service Center, built 1996
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Motion censored lighting systems
100% recycled polyester carpet, plastic countertops
Old-growth tree free
Portions of office walls made from compressed field
straw, formaldehyde-free
– Efficient heating system, saves natural gas
Patagonia SWOT Analysis:
Strengths
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High-quality products
Environmentally friendly business
– Manufacturing process
– End products
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Reached active market segment
Low employee turnover
Patagonia SWOT Analysis:
Weaknesses
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Low employee turnover
Few customer loyalty incentives
Few high-performance finishes
Less fashionable apparel compared to
competitors
Price
Patagonia SWOT Analysis:
Opportunities
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Increase of online spending
Increase of environmental activism
Expand target market
Expand to new countries
Patagonia SWOT Analysis:
Threats
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Competition
– Columbia Sportswear
– The North Face
– Other REI brands
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Ageing target market
– Changing activities, bodies
Patagonia:
Recommendations
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Customer loyalty incentives
– i.e. online promotions
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Adjust product lines
– fit standards
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Advertising
– i.e. advertise eco-friendly products
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Offer customization
Increase performance materials, finishes
Idea generation
References
Greenleaf Publishing. (1999). Patagonia first ascents: finding the way toward quality of
life and work. Retrieved November 13, 2006, from http://www.greenleafpublishing.com/
Langan, M. (2004, December 14). Ageing changes in body shape. VeriMed Healthcare
Network. Retrieved November 14, 2006, from http://www.nlm.nih.gov/medlineplus/
ency/article/003998.htm
Manning-Schaffel, V. (2006, January 2). Patagonia: Happy Trails. Brandchannel.com.
Retrieved November 1, 2006, from http://www.brandchannel.com/
features_webwatch.asp?ww_id=259.
McClean, C. (2006, November 9). Changing the way of manufacturing: approach to
realize mass customization manufacturing. Retrieved November 15, 2006, from
http://www.nist.gov/sigmaxi/Posters04/qiao.html
Patagonia. Retrieved November 1, 2006, from Patagonia.com/.
Patagonia Brings Website In-House (2006) Radware.com. Retrieved November 2, 2006,
from http://www.radware.com/
content/company/customers/patagonia/Patagonia_cs.pdf
Perez, J. C. (2006, February 7). U.S. e-commerce sales to have brisk growth through
2010. IDG News Service. Retrieved November 14, 2006, from
http://www.networkworld.com/news/2006/020706-e-commerce.html
Water Girl. (2006). Activa. Retrieved November 2, 2006, from
http://www.activasports.com/act/brand/brandstore.jsp?brandId=500035&brandName=Water%20Girl&id=cat280221.