Lpm004 Canada Goose Presentation-Mia Tracy Riki

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Lpm004 Canada Goose Presentation-Mia Tracy Riki

The premise: conduct a multiphase brand audit in order to identify problems facing a brand of choice and provide realistic solutions. My team discovered, analyzed and summarized the brand’s current situation (competitive frame, key branding elements, and positioning). We conducted in-depth interviews with target market consumers to identify brand associations and assessed their strength using a laddering technique. We developed, fielded and analyzed a survey that probed brand challenges, Consumer-Based Brand Equity, and the team’s brand development recommendations. Lastly, we compiled our findings in a final report and presented an executive summary to the class. The result: our team scored the highest in the class, even scoring a perfect 100 on our presentation.

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As producer of outdoor cloth Patagonia considers the environment as their most important stakeholder in their decision-making. Their environmental efforts go far beyond required law and impose extra costs on their customers. As to basic economic logic providing environmental quality beyond required law will put a company in a competitive disadvantage. Patagonia’s vision is environmental conservation and restoration. They consider their purpose of being in building the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. Patagonia wants to compete in the market by pursuing an environmental differentiation strategy. Patagonia’s key tactics in providing value for their stakeholders are summarized under the so-called ‘Product Lifecycle Initiative’. This initiative is a holistic commitment to lengthen the product lifecycle and reduce landfill waste. Those tactics can be categorized into what Patagonia refers to as: Reduce, repair, reuse and recycle. To reduce their customers consumption Patagonia heavily invests into R&D to produce the most durable garments. In addition, they only use organic and recycled garments to reduce the footprint of their products. Patagonia offers a free repair service for all of their products for the whole product life. Furthermore, they offer a second market where consumers can resell their used products. Patagonia encourages their customers to return Patagonia products instead of throwing them away so that they can recycle them correctly. Patagonia provides a lot of value to the environment. This value needs to be captured via the consumers. Hence, the environmental quality they provide needs to find a willingness to pay among the customers. Some, but few people buy Patagonia products for altruistic reasons because they know that buying Patagonia products will do good to the environment. Patagonia bundles the public good of environmental quality, which is difficult to charge the customer for, with the private good being product quality. They do this by constantly communicating environment friendliness together with quality. Hence, consumer value environmental friendliness for the implicit quality Patagonia offers. Another aspect to buy their products is environmental prestige. Most importantly, however, environmentalism resonates with their customer values as Patagonia’s customers, as buyers of outdoor wear, usually love the nature. The fact that environmentalism is deeply integrated into their business model makes their engagement credible and difficult to imitate by competitors. As the case of Patagonia shows basic economic logic has its limits when it comes to environmental differentiation strategies. A company can serve the environment as main stakeholder as long as it is able to capture those values perceived by the environment by finding willingness at the consumer to pay for those environmental qualities.

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