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Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore.

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Presentation on theme: "Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore."— Presentation transcript:

1 Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore

2 Overview Portland, brick-and-mortar location Portland, brick-and-mortar location Retail market strategy Retail market strategy –Mission statement –Target market –Retail mix Environmental Activism Environmental Activism SWOT analysis SWOT analysis Recommendations 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 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 Better/Bridge wholesale price zone –Higher quality = higher price Recent annual sales around $240 million Recent annual sales around $240 million

9 Patagonia Marketing Mix: Promotion/Communication Yvon Chouinard’s Book Yvon Chouinard’s Book –“Let My People Go Surfing” Highly accredited website Highly accredited website –25,000 visits daily –75,000 visits during holiday or sales –Brings in majority of sales 1% for the planet campaign 1% for the planet campaign Environmental grants Environmental grants In-store promotions 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 High-quality products Environmentally friendly business Environmentally friendly business –Manufacturing process –End products Reached active market segment Reached active market segment Low employee turnover Low employee turnover

15 Patagonia SWOT Analysis: Weaknesses Low employee turnover Low employee turnover Few customer loyalty incentives Few customer loyalty incentives Few high-performance finishes Few high-performance finishes Less fashionable apparel compared to competitors Less fashionable apparel compared to competitors Price Price

16 Patagonia SWOT Analysis: Opportunities Increase of online spending Increase of online spending Increase of environmental activism Increase of environmental activism Expand target market Expand target market Expand to new countries Expand to new countries

17 Patagonia SWOT Analysis: Threats Competition Competition –Columbia Sportswear –The North Face –Other REI brands Ageing target market Ageing target market –Changing activities, bodies

18 Patagonia: Recommendations Customer loyalty incentives Customer loyalty incentives –i.e. online promotions Adjust product lines Adjust product lines –fit standards Advertising Advertising –i.e. advertise eco-friendly products Offer customization Offer customization Increase performance materials, finishes Increase performance materials, finishes Idea generation 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- Langan, M. (2004, December 14). Ageing changes in body shape. VeriMed Healthcare Network. Retrieved November 14, 2006, from ency/article/003998.htm Manning-Schaffel, V. (2006, January 2). Patagonia: Happy Trails. Retrieved November 1, 2006, from 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 Patagonia. Retrieved November 1, 2006, from Patagonia Brings Website In-House (2006) Retrieved November 2, 2006, from 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 Water Girl. (2006). Activa. Retrieved November 2, 2006, from store.jsp?brandId=500035&brandName=Water%20Girl&id=cat280221.

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