1. Ellen Anderson Jamie Pryse Megan Gilmore
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)
Fax: (503)
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
Langan, M. (2004, December 14). Ageing changes in body shape. VeriMed Healthcare Network. Retrieved November 14, 2006, from
ency/article/ htm
Manning-Schaffel, V. (2006, January 2). Patagonia: Happy Trails. Brandchannel.com. 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.com/.
Patagonia Brings Website In-House (2006) Radware.com. 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 IDG News Service. Retrieved November 14, 2006, from
Water Girl. (2006). Activa. Retrieved November 2, 2006, from