Patagonia, Inc


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Patagonia, Inc

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