Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore.
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Transcript of Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore.
PatagoniaPatagonia, , IncInc..
Ellen AndersonEllen Anderson
Jamie PryseJamie Pryse
Megan GilmoreMegan Gilmore
OverviewOverview
Portland, brick-and-mortar locationPortland, brick-and-mortar location Retail market strategyRetail market strategy
– Mission statementMission statement– Target marketTarget market– Retail mixRetail mix
Environmental ActivismEnvironmental Activism SWOT analysisSWOT analysis RecommendationsRecommendations
Patagonia Portland Patagonia Portland SpecificsSpecifics
Nearest Location:Nearest Location:907 N.W. Irving St.,907 N.W. Irving St.,Suite 100Suite 100Portland, OR 97209Portland, OR 97209Phone: (503) 525-2552Phone: (503) 525-2552
Fax: (503) 525-4944Fax: (503) 525-4944
Store Hours:Monday – Friday: 10am-7pmSaturday: 10am-6pmSunday: 11am-6pm
Closed:Thanksgiving DayChristmas DayNew Year's DayEasterIndependence Day
Build the best product, do no Build the best product, do no unnecessary harm, use unnecessary harm, use business to inspire and business to inspire and implement solutions to the implement solutions to the environmental crisis.environmental crisis.
––Patagonia's Mission Patagonia's Mission StatementStatement
Patagonia: Target Patagonia: Target MarketMarket 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
Patagonia Marketing Patagonia Marketing Mix: ProductMix: Product Designs, markets, distributes brands
– Patagonia, Lotus Designs, Water Girl Lotus Designs – high-quality paddling gear Water Girl – high-quality women’s apparelinspired by water, nature and outdoor world
Clothing, gear accessories, luggage
Extensive research, design
Patagonia Marketing Patagonia Marketing Mix:Mix:Product, Product, continuedcontinued First major retail First major retail
company to:company to:– switch to all switch to all
organic cotton organic cotton
clothing clothing – use all non-toxic use all non-toxic
dyes and materialsdyes and materials– make fleece made make fleece made
from recycled from recycled
soda-pop bottlessoda-pop bottles
Patagonia Marketing Patagonia Marketing Mix:Mix:PricingPricing Better/Bridge wholesale price Better/Bridge wholesale price
zonezone– Higher quality = higher priceHigher quality = higher price
Recent annual sales around $240 Recent annual sales around $240 millionmillion
Patagonia Marketing Patagonia Marketing Mix:Mix:Promotion/CommunicatioPromotion/Communicationn Yvon Chouinard’s BookYvon Chouinard’s Book
– ““Let My People Go Surfing”Let My People Go Surfing” Highly accredited websiteHighly accredited website
– 25,000 visits daily25,000 visits daily– 75,000 visits during holiday or sales75,000 visits during holiday or sales– Brings in majority of salesBrings in majority of sales
1% for the planet campaign1% for the planet campaign Environmental grantsEnvironmental grants In-store promotionsIn-store promotions
Patagonia Marketing Patagonia Marketing Mix:Mix:Place/LocationPlace/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
Patagonia: Patagonia: Environmental Environmental ActivismActivism 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
Patagonia:Patagonia:Environmental Activism Environmental Activism Continued 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
Patagonia:Patagonia:Environmental Activism Environmental Activism ContinuedContinued 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
Patagonia SWOT Patagonia SWOT Analysis:Analysis:StrengthsStrengths High-quality productsHigh-quality products Environmentally friendly businessEnvironmentally friendly business
– Manufacturing processManufacturing process– End productsEnd products
Reached active market segmentReached active market segment Low employee turnoverLow employee turnover
Patagonia SWOT Patagonia SWOT Analysis:Analysis:WeaknessesWeaknesses Low employee turnoverLow employee turnover Few customer loyalty incentivesFew customer loyalty incentives Few high-performance finishesFew high-performance finishes Less fashionable apparel compared to Less fashionable apparel compared to
competitorscompetitors PricePrice
Patagonia SWOT Patagonia SWOT Analysis:Analysis:OpportunitiesOpportunities Increase of online spendingIncrease of online spending Increase of environmental Increase of environmental
activismactivism Expand target marketExpand target market Expand to new countriesExpand to new countries
Patagonia SWOT Patagonia SWOT Analysis:Analysis:ThreatsThreats CompetitionCompetition
– Columbia SportswearColumbia Sportswear– The North FaceThe North Face– Other REI brandsOther REI brands
Ageing target marketAgeing target market– Changing activities, bodiesChanging activities, bodies
Patagonia:Patagonia:RecommendationsRecommendations Customer loyalty incentivesCustomer loyalty incentives
– i.e. online promotionsi.e. online promotions Adjust product linesAdjust product lines
– fit standardsfit standards AdvertisingAdvertising
– i.e. advertise eco-friendly productsi.e. advertise eco-friendly products Offer customizationOffer customization Increase performance materials, finishesIncrease performance materials, finishes Idea generationIdea generation
ReferencesReferences
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, fromhttp://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.