Patagonia Marketing

Plan
Executive
Summary
Company Overview

 Patagonia is an American clothing company founded by outdoor enthusiast and climber Yvon Chouinard. It is
headquartered in Ventura, California.
 The company’s brand image is rooted in its dedication to environmental preservation and sensitivity. Its mission is
“build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the
environmental crisis” (Patagonia’s Mission Statement).
 Patagonia’s primary competitive advantage is its virtuous cycle of corporate social responsibility combined with high-
quality products that are worth the investment. The brand’s commitment to environmental preservation and
sustainability is evidenced by its goals, businesses practices, and supply and distribution processes.
 The brand does business sustainable, and ensures that each part of its operations lessens or eliminates negative
environmental impact. Patagonia understands that the fashion and textile industries are overrun and mass producing
at a rate that is unsustainable for the environment. Thus, they focus on educating consumers on the tangible and
intangible benefits of buying sustainably made clothing, although at a higher price.
  The SWOT analysis is a strategic planning technique that analyzes a firm’s
internal and external environments.
 SWOT stands for strengths, weaknesses, opportunities, and threats. This
analysis identifies a firm’s potential points of growth and decline, as well as
evaluates its resources and the potential impact from uncontrollable and
external factors.
 Strengths are what an organization does well, like its competitive
SWOT advantage. Weaknesses are inherent parts of the organization, and refer
to where it lacks, what can improve, etc. Opportunities are chances for
Analysis something good to happen, and are primarily external. Threats can
negatively affect the business, and should be anticipated before they arise.
 A SWOT analysis helps organizations reduce chances of failure by
understanding what is present, what is lacking, and staying ahead of
trends and potential threats to the business.
 Conducting a SWOT analysis is beneficial for firms because it is proactive,
not reactive. It is part of strategic planning and can help a firm distinguish
itself from its competitors and compete in the market successfully.
  Patagonia’s greatest strength is its brand reputation. The brand’s purpose-driven strategy is
increasing social consciousness about environmental protection and sustainability among
consumers.
 Targeting to a niche market, Patagonia appeals to those who are already environmentally
conscious and are willing to pay the price for high-quality products from a company that
aligns with its social values. This contributes to its high reputation, another strength.

Strengths and  Its heavy dependence on the United States retail market, though, is a weakness. This makes
the brand vulnerable to market changes and fluctuation.

Weaknesses  Another weakness, for some consumers, is its outspokenness in politics and social activism.
It was heavily critical of former president Donald Trump’s administration, which can alienate
some more conservative leaning customers.
 A low market presence is also a brand weakness, as it is primarily throughout the United
States with only two stores in Canada, and few others scattered throughout the world.
Patagonia’s limited presence can push consumers in its competitors’ direction because there
are no stores near them.
  Patagonia can strengthen its market presence and allow the company to capture
more customers. Even if it does not open more stores, it can strengthen its e-
commerce channels with targeted and geographic marketing and increase online
sales.
 With the world returning to a degree of normalcy during the COVID-19 pandemic, the
growing interest in outdoor sports in an opportunity for Patagonia to educate newly
Opportunities active individuals rather than selling to those who already participate in such.
 A persistent threat to Patagonia is its competition. Constant growth in the outdoor
and Threats industry, especially at lower price points, gives customers several options to choose
from. Similar brands with similar messaging but lower prices also create significant
competition for Patagonia.
 Though Patagonia makes every effort to source and create sustainably, the natural
products it uses are threatened by the effects of climate change. Wool, features, and
other materials are vulnerable to these effects, and their availability could become
more challenging due to flooding, droughts, deforestation, etc.
  The growing cycling apparel industry presents an opportunity
for Patagonia to expand its product line in an educational,
informative, and engaging way. An uptick in outdoor sport as
the pandemic lessens gives Patagonia the opportunity to
capture a new audience including active cyclists and those
wanting to try a new sport, perhaps with a renewed outlook
on life after more than a year in a socially distanced lockdown.
 Cycling apparel includes jerseys, shorts, coats, jackets, wind
Goals and coats, shirts, etc. Cycling apparel, much like climbing and
other sport apparel, are made to be lightweight, non-
Objectives irritating, and weather protective for its users. Creating
cycling apparel expands Patagonia's product line to include a
common and rising sport.
 Consumers are seeing cycling not only as a sustainable
transportation method, but also because of increased
consumer fitness and health awareness. Patagonia can build
upon its reputation as a sustainable company by creating
cycling apparel that is an investment into consumers' health
and environmental health.
  Patagonia’s strategy is based on demographic and
psychographic segmentation. Patagonia's target market
consists of men and women aged 18-45 years old, and are
active, outdoor enthusiasts, and even environmental
activists. They have a high disposable income, and are
unafraid to spend more money on high quality products
that will last and from brands that vow to protect the
environment. Patagonia and its customers share the
Segmentation belief of protecting and preserving the environment,
making them both socially responsible.
Analysis  Market segmentation is necessary, but also already
complete at Patagonia since it targets to a niche
consumer market. Its consumers are unique because of
their dedication to environmental protection and
preservation. Patagonia is a brand they can consciously
buy from with the confidence that their money went to a
socially responsible corporation.
Targeting Strategy

 Targeting is crucial in marketing. It directs a brand's strategic efforts to the people with whom it
will resonate most. Without targeting, branding messages and activities are meaningless. The
right audiences are not seeming them, and brands waste time, money, and other resources on
trying to gain as many consumers as possible, which is not a smart move. Targeting makes it
easier for brands' messages and activities to reach the right people at the right time and in a
meaningful way.
 Patagonia targets a specific set of consumers, not necessarily by sport, but by similar
characteristics that create community and camaraderie between consumers. A target market
shares similar demographics, psychographics, values, and behaviors, which rings very true for
Patagonia. Its target market understands the active and activist lifestyles of its consumers, and
targets its messages and strategies to those activities and their values. With consumers being
more intentional about their shopping during the pandemic, Patagonia is in a strong position to
create a new product line to capture consumers who are emerging from lockdown as different
people.
  Patagonia's new products will include cycling apparel for consumers. It
will include jackets, jerseys, shirts, shorts, tights, pants and accessories,
i.e. reflective vests, gloves, chafing prevention sticks and gel, sleeves,
leg and arm warmers, liner shorts, etc.
 The new cycling line will be available in Patagonia's brick and mortar
stores and its online website, like all of its products. Each sport has a
defined section for each sport, and cycling will be no different.
Introducing the cycling line into Patagonia's products will give it another
consumer group to reach at an important life stage or situation.
Marketing Mix  Promotion strategies for the new cycling line will include word of mouth
marketing, digital targeted marketing, and microfinfluencer marketing.
Patagonia will grow the product line with information from people most
similar to consumers. In the pandemic, showers are disillusioned with
corporate jargon and action, and want to learn about brands from the
people running them or working with them.
 Finally, its prices will use a promotional strategy, entering the market at
lower points to drum up excitement and interest in the brand's newest
product line in several years.
 Patagonia will pursue a relationship marketing strategy for
its new cycling product line. Several authors define the
process of relationship marketing as a process (Christopher
et al., 1992), a strategic organization, or as a set of
interactions and networks (Gummeson, 1994). Relationship
marketing, no matter the definition, is about building trust.
Patagonia has built its reputation as a trustworthy and
honest brand, which will carry into the marketing strategy
for its new cycling product line.
 In relationship marketing, an individual's brand loyalty is
driven by the brand's commitment to fulfilling its mission,
staying true to its vision statement, and providing high-
quality products and services that meet consumers' needs
and wants. These needs and wants inform marketing
strategy that directly answers consumers’ questions and
Marketing
fulfills their desires. Strategy
  The brand will be developed and supported with word of mouth and microinfluencer
marketing. Patagonia already uses the photos, videos, and other media of active
individuals to share on its social media platforms. Sweeping landscapes and aerial
shots of people performing extreme sports attracts consumers and makes them
desire the Patagonia branded experience. Patagonia can use micro influencers that
Branding cycle or bike outdoors to create branding for the cycling product line as one that has
changed lives because of the pandemic.

Strategy  Cycling has seen an unprecedented boom since the beginning of the pandemic, and
Patagonia would better position its cycling product line with people who have found
ways to entertain themselves, cope with losses and anxiety, and make the world a
better place environmentally. The implied promise of the brand is still making the
best products and doing no harm while creating them. Patagonia is an already
successful brand, and creating a cycling product line would serve its mission further.
 Patagonia emphasizes ”everything [we] make has an impact
on the planet” (”Environmental and Social Footprint”).
Environmental and animal welfare are core values for
Patagonia, and each part of its operations seeks to its
negative impact on the natural world. Ethical and
 This proposed plan aligns with Patagonia's existing corporate Corporate
social responsibility philosophy and code of ethics. It is a
company that champions environmental sustainability, Social
protection, and health. Cycling is an affordable, accessible,
and environmentally conscious activity with physical, mental, Responsibility
and environmental benefits. It is a socially distant way for
people to get around, reduce traffic jams, and reduce
greenhouse gas emissions, car wear and tear, etc.
Sales 2022 2023 2024
Clothing $139,742 $189,342 $199,016
Accessories $47,025 $52,020 $57,302

Financial Projections
  Other financial estimates in the marketing plan will include
production and distribution expenses, marketing expenses,
payroll, utilities, insurance, rent, etc. These are typical costs when
starting a business, but since Patagonia is already established, its
additional expenses will primarily incur outside of its brick-and-
Financials mortar stores.
 These financial measures will speak to the product line’s success
after its inception, and with Patagonia’s established success, the
brand is hopeful that the cycling line will be well received.
Responding directly to present consumer demand, Patagonia can
increase its financial earnings.
  Patagonia is a highly successful brand that can have continued
success with a new cycling product line. Creating this product
line opens doors of opportunity for the brand to grow, remain
successful and admired amongst outdoor sport enthusiasts, and
bring new consumers into its community of activists and
environmental protectionists. Patagonia is no stranger to
introducing new products or pushing the envelope to maintain
its corporate social responsibility and values, so creating this new
cycling product line would be another potentially successful
endeavor.
Conclusion  Its marketing mix and strategy will rely on relationship
marketing and use microinfluencers, word of mouth marketing,
and digital marketing to reach new consumers and make the
product line a success. According to the financial projections, it
will be slow to start and build, but there is great potential for
success. Its deep commitment to environmental sustainability
and protection helps the brand and creates its unique selling
proposition, something that will last through the brand's
entirety. This aids in Patagonia's relationship marketing and
relationship building abilities.
  Christopher, M., Payne, A., & Ballantyne, D. (2013). Relationship
marketing. Taylor & Francis.
 Environmental and social footprint. (n.d.). Retrieved June 1, 2021
from http://www.patagonia.com/company-info.html
 Gummesson, E. (2011). Total relationship marketing. Routledge.
 Michel, G. M., Feori, M., Damhorst, M. L., Lee, Y. A., & Niehm, L. S.
(2019). Stories we wear: Promoting sustainability practices with
References the case of Patagonia. Family and Consumer Sciences Research
Journal, 48(2), 165-180.
 Palmatier, R. W. (2008). Relationship marketing (pp. 1-140).
Cambridge, MA: Marketing Science Institute.
 Patagonia’s mission statement. (n.d.). Retrieved May 28, 2021 from
http://www.patagonia.com/company-info.html