PatagoniaPatagonia, , IncInc..

Ellen AndersonEllen Anderson

Jamie PryseJamie Pryse

Megan GilmoreMegan Gilmore

OverviewOverview

Portland, brick-and-mortar locationPortland, brick-and-mortar location Retail market strategyRetail market strategy

– Mission statementMission statement– Target marketTarget market– Retail mixRetail mix

Environmental ActivismEnvironmental Activism SWOT analysisSWOT analysis RecommendationsRecommendations

Patagonia Portland Patagonia Portland SpecificsSpecifics

Nearest Location:Nearest Location:907 N.W. Irving St.,907 N.W. Irving St.,Suite 100Suite 100Portland, OR 97209Portland, OR 97209Phone: (503) 525-2552Phone: (503) 525-2552

Fax: (503) 525-4944Fax: (503) 525-4944

Store Hours:Monday – Friday: 10am-7pmSaturday: 10am-6pmSunday: 11am-6pm

Closed:Thanksgiving DayChristmas DayNew Year's DayEasterIndependence Day

Build the best product, do no Build the best product, do no unnecessary harm, use unnecessary harm, use business to inspire and business to inspire and implement solutions to the implement solutions to the environmental crisis.environmental crisis.

––Patagonia's Mission Patagonia's Mission StatementStatement

Patagonia: Target Patagonia: Target MarketMarket Males & Females

– Ages 28 to 45– Children younger than 12

Independent/single or married Personal income level $60,000 or higher Lifestyle

– Active, outdoors/nature lovers, sports participation

– Concern for environment, sustainability, conservation

Recycle, carpool, purchase organic products– Fashion v. quality

Need high quality apparel for varying weather conditions, less concerned with current trends

Patagonia Marketing Patagonia Marketing Mix: ProductMix: Product Designs, markets, distributes brands

– Patagonia, Lotus Designs, Water Girl Lotus Designs – high-quality paddling gear Water Girl – high-quality women’s apparelinspired by water, nature and outdoor world

Clothing, gear accessories, luggage

Extensive research, design

Patagonia Marketing Patagonia Marketing Mix:Mix:Product, Product, continuedcontinued First major retail First major retail

company to:company to:– switch to all switch to all

organic cotton organic cotton

clothing clothing – use all non-toxic use all non-toxic

dyes and materialsdyes and materials– make fleece made make fleece made

from recycled from recycled

soda-pop bottlessoda-pop bottles

Patagonia Marketing Patagonia Marketing Mix:Mix:PricingPricing Better/Bridge wholesale price Better/Bridge wholesale price

zonezone– Higher quality = higher priceHigher quality = higher price

Recent annual sales around $240 Recent annual sales around $240 millionmillion

Patagonia Marketing Patagonia Marketing Mix:Mix:Promotion/CommunicatioPromotion/Communicationn Yvon Chouinard’s BookYvon Chouinard’s Book

– ““Let My People Go Surfing”Let My People Go Surfing” Highly accredited websiteHighly accredited website

– 25,000 visits daily25,000 visits daily– 75,000 visits during holiday or sales75,000 visits during holiday or sales– Brings in majority of salesBrings in majority of sales

1% for the planet campaign1% for the planet campaign Environmental grantsEnvironmental grants In-store promotionsIn-store promotions

Patagonia Marketing Patagonia Marketing Mix:Mix:Place/LocationPlace/Location Privately held company U.S., Europe, Asia, South America

– Portland Selective distribution Limited marketing channel

– Stand alone stores and various retailers REI, Peak Sports, Scarlet Ibis Fly Shop

Use of catalog allows for wider demographic

Patagonia: Patagonia: Environmental Environmental ActivismActivism 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

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:Patagonia:Environmental Activism Environmental Activism Continued Continued 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

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:Patagonia:Environmental Activism Environmental Activism ContinuedContinued Buildings, Reno Service Center, built 1996

– 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 Patagonia SWOT Analysis:Analysis:StrengthsStrengths High-quality productsHigh-quality products Environmentally friendly businessEnvironmentally friendly business

– Manufacturing processManufacturing process– End productsEnd products

Reached active market segmentReached active market segment Low employee turnoverLow employee turnover

Patagonia SWOT Patagonia SWOT Analysis:Analysis:WeaknessesWeaknesses Low employee turnoverLow employee turnover Few customer loyalty incentivesFew customer loyalty incentives Few high-performance finishesFew high-performance finishes Less fashionable apparel compared to Less fashionable apparel compared to

competitorscompetitors PricePrice

Patagonia SWOT Patagonia SWOT Analysis:Analysis:OpportunitiesOpportunities Increase of online spendingIncrease of online spending Increase of environmental Increase of environmental

activismactivism Expand target marketExpand target market Expand to new countriesExpand to new countries

Patagonia SWOT Patagonia SWOT Analysis:Analysis:ThreatsThreats CompetitionCompetition

– Columbia SportswearColumbia Sportswear– The North FaceThe North Face– Other REI brandsOther REI brands

Ageing target marketAgeing target market– Changing activities, bodiesChanging activities, bodies

Patagonia:Patagonia:RecommendationsRecommendations Customer loyalty incentivesCustomer loyalty incentives

– i.e. online promotionsi.e. online promotions Adjust product linesAdjust product lines

– fit standardsfit standards AdvertisingAdvertising

– i.e. advertise eco-friendly productsi.e. advertise eco-friendly products Offer customizationOffer customization Increase performance materials, finishesIncrease performance materials, finishes Idea generationIdea generation

ReferencesReferences

Greenleaf Publishing. (1999). Patagonia first ascents: finding the way toward quality of life and work. Retrieved November 13, 2006, from http://www.greenleaf-publishing.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, fromhttp://www.networkworld.com/news/2006/020706-e-commerce.html

Water Girl. (2006). Activa. Retrieved November 2, 2006, from http://www.activasports.com/act/brand/brand-store.jsp?brandId=500035&brandName=Water%20Girl&id=cat280221.