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Patagonia

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by

Macey Brown

on 4 April 2014

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Transcript of Patagonia

Founded by Yvon Chouinard in 1973

Environmental Activism

Logo Significance



History
Company Overview
Marketing
Product Mix
Questions?
Promotion
Primary forms of promotion:
Instagram
Patagonia Website
Catalogs
Sponsor several pro athletes like:
Liz Daley- snowboarder
Kyle Theirmann- surfer

Surprisingly they don't advertise with commercials. They put out several videos on their YouTube channel instead, that advertise the specifics about their products.

Price
Place
Patagonia stores
Patagonia.com
Tyler's and Racquet and Jog
Several online sites:
backcountry.com
moosejaw.com

Product
Clothing
Everyday
adults
children
Outdoor
surfing
climbing
Accessories
shoes
backpacks
luggage
References
http://www.patagonia.com
http://www.businessweek.com/articles/2013-08-28/patagonias-buy-less-plea-spurs-more-buying
http://www.hbsp.harvard.edu
http://www.managementparadise.com/artice/848/swot-anaysis-of-patagonia
http://alexanderjin.files.wordpress.com/2011/12/patagonia-swot-analysis1.pdf
http://ncmccaskill.tripod.com/patagonia/marketingstrategy.html
http://www.opportunitygreen.com/green-business-blog/2011/01/27/what-makes-patagonia-the-coolest-company-on-the-planet-insights-from-founder-yvon-chouinard/
http://blogs.hbr.org/2011/10/patagonias-buy-less-campai/
http://digiday.com/brands/inside-patagonias-content-machine/
http://en.wikipedia.org/wiki/Patagonia_%28clothing%29
$16.00-$699.00

Accurate for the quality of products they offer
Patagonia put out this ad in 2011 that encouraged their customers to buy less and skip out on Cyber Monday. Due to this promotion their sales increased by 1/3 to $534 million. This is clearly an example of a good promotion.
Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
Patagonia's Mission Statement
Patagonia grew out of a small company that made tools for climbers.

Mountain climbing remains at the heart of a worldwide business that still makes clothes for climbing – as well as for skiing, snowboarding, surfing, fly fishing, paddling and trail running. (the silent sports)

Reason for Existence


A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet.

Their business activity – from lighting stores to dyeing shirts – creates pollution as a by-product.

Reason for Existence Continued

Grants, in-kind contributions, and non cash donations

Minimize environmental harm of its product processes

Think of itself as a role model for other organizations

Commitment to the Environment

“Earth Tax” Program
- at least 1% of sales or 10% of pre-tax profits – whichever is more, to hundreds of grassroots environmental groups all over the world
-they donated funds to causes that had no direct relationship to the business unlike other businesses

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

Environmental Activism

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 wild lands and biodiversity

Educate staff about issues related to the environment
- 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

Customer Service Center in Reno, built 1996
- Motion censored lighting systems
- 100% recycled polyester carpet, plastic
counter tops
- Portions of office walls made from
compressed field straw, formaldehyde-free
- Efficient heating system, saves natural gas

If Patagonia could show that it could be financially successful and committed to the environment, other organizations might be willing to make environmental commitments

Recommendations
Environmental Advocacy
-“Buy Less”
-“Birth to birth” model
-Donate 1% of sales/10% pre-tax profit

Social Responsibility
-Responsible Economy Program

Exclusivity
-Price
-Retail location




Marketing Strategy

Older Adults
-Afford the higher prices

Outdoor Enthusiasts
-Mountain Climbing Market

Socially Responsibly
-Environmentalists

Target Market

Expand to popular retailers
Maintain current price
Increased accessibility
Easier repairs
Market recycling program
Repairs
Recycle
Used clothing
Target young adult demographic
Ages 18-25
Every day use





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