Ellen Anderson Jamie Pryse Megan Gilmore Patagonia, Inc. Ellen Anderson Jamie Pryse Megan Gilmore

Overview Portland, brick-and-mortar location Retail market strategy Mission statement Target market Retail mix Environmental Activism SWOT analysis Recommendations

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

Build the best product, do no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. –Patagonia's Mission Statement

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

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

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

Patagonia Marketing Mix: Pricing Better/Bridge wholesale price zone Higher quality = higher price Recent annual sales around $240 million

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

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

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

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

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

Patagonia SWOT Analysis: Strengths High-quality products Environmentally friendly business Manufacturing process End products Reached active market segment Low employee turnover

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

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

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

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

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.