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Patagonia, Inc

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  • 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: (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
  • 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 women’s
        • apparel
        • inspired by water, nature
        • and outdoor
        • world
    • Clothing, gear
    • accessories, luggage
    • Extensive research,
    • design
  • 7. Patagonia Marketing Mix: Product, 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 Mix: Pricing
    • Better/Bridge wholesale price zone
      • Higher quality = higher price
    • Recent annual sales around $240 million
  • 9. Patagonia Marketing Mix: Promotion/Communication
    • Yvon Chouinard’s 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 Mix: Place/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. Patagonia: Environmental 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. Patagonia: Environmental 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 Analysis: Strengths
    • High-quality products
    • Environmentally friendly business
      • Manufacturing process
      • End products
    • Reached active market segment
    • Low employee turnover
  • 15. Patagonia SWOT Analysis: Weaknesses
    • Low employee turnover
    • Few customer loyalty incentives
    • Few high-performance finishes
    • Less fashionable apparel compared to competitors
    • Price
  • 16. Patagonia SWOT Analysis: Opportunities
    • Increase of online spending
    • Increase of environmental activism
    • Expand target market
    • Expand to new countries
  • 17. Patagonia SWOT Analysis: Threats
    • Competition
      • Columbia Sportswear
      • The North Face
      • Other REI brands
    • Ageing target market
      • Changing activities, bodies
  • 18. Patagonia: Recommendations
    • 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/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/brand-store.jsp?brandId=500035&brandName=Water%20Girl&id=cat280221.