Patagonia, Inc.

1
Patagonia, Inc.

• Ellen Anderson
• Jamie Pryse
• Megan Gilmore

2
Overview

• Portland, brick-and-mortar location
• Retail market strategy
• Mission statement
• Target market
• Retail mix
• Environmental Activism
• SWOT analysis
• Recommendations

3
Patagonia Portland Specifics

• Nearest Location
• 907 N.W. Irving St.,
• Suite 100
• Portland, OR 97209
• Phone [phone]
• Fax [phone]

Store HoursMonday Friday 10am-7pmSaturday
10am-6pmSunday 11am-6pm
ClosedThanksgiving DayChristmas DayNew Year's
DayEasterIndependence Day
4

• Build the best product, do no unnecessary harm,
  use business to inspire and implement solutions
  to the environmental crisis.
• Patagonia's Mission Statement

5
Patagonia Target Market

• 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

6
Patagonia Marketing Mix Product

• Designs, markets, distributes brands
• Patagonia, Lotus Designs, Water Girl
• Lotus Designs
• high-quality paddling gear
• Water Girl
• high-quality womens
• apparel
• inspired by water, nature
• and outdoor
• world
• Clothing, gear
• accessories, luggage
• Extensive research,
• design

7
Patagonia Marketing MixProduct, continued

• 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

8
Patagonia Marketing MixPricing

• Better/Bridge wholesale price zone
• Higher quality higher price
• Recent annual sales around 240 million

9
Patagonia Marketing MixPromotion/Communication

• Yvon Chouinards Book
• Let My People Go Surfing
• Highly accredited website
• 25,000 visits daily
• 75,000 visits during holiday or sales
• Brings in majority of sales
• 1 for the planet campaign
• Environmental grants
• In-store promotions

10
Patagonia Marketing MixPlace/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

11
Patagonia Environmental Activism

• 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

12
PatagoniaEnvironmental Activism 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

13
PatagoniaEnvironmental Activism Continued

• 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

14
Patagonia SWOT AnalysisStrengths

• High-quality products
• Environmentally friendly business
• Manufacturing process
• End products
• Reached active market segment
• Low employee turnover

15
Patagonia SWOT AnalysisWeaknesses

• Low employee turnover
• Few customer loyalty incentives
• Few high-performance finishes
• Less fashionable apparel compared to competitors
• Price

16
Patagonia SWOT AnalysisOpportunities

• Increase of online spending
• Increase of environmental activism
• Expand target market
• Expand to new countries

17
Patagonia SWOT AnalysisThreats

• Competition
• Columbia Sportswear
• The North Face
• Other REI brands
• Ageing target market
• Changing activities, bodies

18
PatagoniaRecommendations

• Customer loyalty incentives
• i.e. online promotions
• Adjust product lines
• fit standards
• Advertising
• i.e. advertise eco-friendly products
• Offer customization
• Increase performance materials, finishes
• Idea generation

19
References

• 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/med
  lineplus/
• 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_id259.
• 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/Posters
  04/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-co
  mmerce.html
• Water Girl. (2006). Activa. Retrieved November 2,
  2006, from http//www.activasports.com/act/brand/b
  rand-store.jsp?brandId500035brandNameWater20Gi
  rlidcat280221.