Patagonia and Its Sustainability

The biggest environmental hazard in the production of fashion industry is the pollution of water resources: rivers, lakes, seas, and oceans. Humanity cannot exist without fresh water; according to statistics, the amount of CO2 emissions from the textile industry exceeds that from all international air travel and shipping. More than a billion tons are emitted annually; air pollution in the light industry is 1 percent of other industries (Berg et al., 2020). Mostly, compounds such as sulfur dioxide, carbon monoxide, and to a lesser extent, nitrogen oxides, acetates, and gasoline enter the air.

Clothing is made from fabrics and fabrics from fibers. Cotton is a cheap plant fiber from which most clothing is made. To create textiles, you need a lot of cottons, and for it, in turn, a lot of water. In order for cotton to grow faster, many farmers grow not organic but genetically modified cotton. Another environmental problem has been the disposal of unwanted clothes in landfills and the burning of textiles, and this problem is getting worse every year. Every second, between 7.6 and 10 cubic meters of tissue is ejected or burned, creating up to 1.2 billion greenhouse gases annually (Berg et al., 2020). Then according to Berg et al., more than 500,000 tons of unrecycled textiles end up in the world’s oceans, and this is even more than plastic (2020). It will take a hundred years for the tissues to decompose.

The global fashion market segment includes clothing, footwear, accessories, jewelry, etc. The main segment is clothing, which occupies 75% of the world market. Fast fashion is the main and main enemy of ecology (Granskog et al., 2020). The new business model is pushing society to consume more and more by creating artificial demand for marketing gimmicks and selling short-lived products. The system of fast fashion tries to push a person to the fact that by acquiring a new thing, they will be happy.

Before the coronavirus pandemic, the fashion industry was experiencing an unprecedented boom. It was global, it developed rapidly, but now it has stopped. Clothing manufacturers have realized that it is necessary to approach production consciously. In particular, to produce less and create comfortable jobs for workers in developing countries with acceptable wages, as well as to create eco-friendly clothes that would be worn longer. Designers and fashion houses must be socially responsible when releasing their collections, as well as when selling and remanufacturing them. Covid-19 has affected the release of new clothes and threatened the launch of fashion weeks. The world may be left without new trends, but what is important is that environmental friendliness, high-quality production, and processing have become the main trend, and masks and gloves have become new trends in difficult times.

Patagonia and its Responsible Business

Technically based in the US, Patagonia is a privately held company that manufactures expensive, high-quality outerwear and equipment for climbers, bikers, skiers, snowboarders, and surfers. But its leaders have been actively proving to the whole world for five decades that the main activity is to preserve the environment. Businesses should save the planet is the Patagonia slogan (Patagonia, n.d.).

This company was founded in California by climbing enthusiast Yvon Chouinard. In the 1960s, he invented rock pitons that would not damage “natural” mountain surfaces and began marketing them for $1.5 apiece, promoting “pure mountaineering” (Patagonia, n.d.). This voluntary eco-tax was expanded by Yvon Chouinard into a non-profit corporation called “1% for the Planet” (Patagonia, n.d.). Since 2002, this organization, using Patagonia as an example, has convinced many other companies to join the planetary movement and donate over $250 million (Patagonia, 2020).

In 2019, Patagonia received the UN’s highest environmental award, Champions of the Earth, in the Entrepreneurial Vision category for its commitment to the environment. The UN noted that Patagonia managed to qualitatively implement an environmental approach to business (Patagonia n.d.). And its financial success reveals consumers’ desire for companies to take the lead in combating climate change and environmental degradation.

Patagonia is one of the world’s leading companies in the production of equipment for extreme sports and outdoor recreation. Patagonia began in a small garage where company founder Yvon Chouinard made one-off equipment for amateur rock climbers. Even then, Chouinard realized how destructive business could be for the environment and the whole planet (Patagonia, n.d.). He transferred the firm environmental principles to Patagonia – the company follows them every day.

Chouinard is sure that as soon as people violate the natural balance, they get a dessert. This applies to absolutely everything on earth, including the production of any goods. At some point, humanity can upset the balance at the planetary level. The concept of sustainable business from Patagonia is as follows. It is necessary not only not to cause unnecessary harm to the planet, but also to use business as a tool and example in solving environmental problems (Patagonia 2020). The company’s in-house scientists have established the essence of the economic benefits of untouched nature, expressed in climate regulation, soil formation, nutrient cycling, as well as fuels, food, fibers, and medicines derived from wild species. It exceeds the benefits from the industrial exploitation of these same lands hundreds of times – and this is according to conservative estimates.

Then, realizing how much production affects the environment, the company performed a life cycle analysis of the four main types of fibers from which products are made: wool, polyester, nylon, and cotton. It turned out that natural materials during production cause even more harm to the planet than artificial ones – this is due to unscrupulous animal husbandry and the industrial method of cotton production. Today, about 25% of all types of insecticides used and 10% of pesticides are sprayed over industrial cotton fields (Patagonia, 2020). Patagonia switched to organic cotton for clothing after realizing the dangers of growing cotton industrially.

Moreover, having found out that neon paints are toxic, the company began to use other types of dyes, carefully checking the degree of their potential harm to humans. Most Patagonia clothing is made from recycled materials such as nylon and polyester. Recycled polyester comes from recycled plastic bottles. From polyester, Patagonia produces warm jackets and comfortable fleece jackets, with each jacket saving 1 liter of oil. The firm admits that we are the last generation that has a chance to see the real untouched nature.” This is what motivates the Patagonia CEO to use sustainable solutions in business development. 90% of the goods we buy in stores end up in the trash in 60-90 days (Patagonia, 2020). Unfortunately, such consumption is more and more damaging to the planet. However, thanks to companies like Patagonia, people’s awareness is getting higher.

It seems reasonable to finish this section with shedding light on the company’s employer-employee relations. There has been no evidence that would show Patagonia’s irresponsible practices in terms of working conditions. The firm pays the necessary attention to its corporate social responsibility and transparently reveals its attainments and activities in this vein in its annual reports.

Risks

At this point, it would be reasonable to state that Patagonia – in terms of conducting responsible business affairs – does not seem to have any limitations. It dedicates a plethora of its practices to maintaining ecology and impacts the whole industry to act in a similar way. However, the company is still facing a number of risks that may be formulated as follows. First, the corporation’s goods are composed of natural materials such as leather and wool, making it extremely sensitive to climate change. Due to extended flooding and drought, obtaining these basic resources can be increasingly difficult (“New shocking facts,” 2019). Second, it is a looming recession – states are experiencing a cyclical downturn. People cut back on non-essentials like Patagonia’s products during hard financial times. Third, the retail industry has been on the decrease for the previous five years, which has been hastened by Covid-19. The company’s profitability and long-term viability are threatened by the downturn. The following waves of the virus might put its income and earnings at risk more.

Recommendations

In order to become even more adherent to the UN sustainability goals, the following recommendations can be given for Patagonia. Outdoor gear shoppers prefer to purchase online, which presents a potential for the brand to expand. Hence, the firm can make better use of e-commerce platforms to boost online sales. This will address the risk of decline of the retail industry, as well as assist in reducing the necessity to use physical facilities, diminishing adverse effects on ecology. Then, Patagonia expanded its product line to include outdoor clothes and other outdoor-related items. The product range may be broadened to include daily clothing, sportswear, and used clothing. Such an approach will increase profits and provide opportunities for more partnerships to enhance sustainability worldwide.

References

(2019). Oxfam.

Berg, A., Magnus, K.-H., Granskog, A., & Lee, L. (2020). . McKinsey & Company.

Granskog, A., Laizet, F., Lobis, M., & Sawers, C. (2020). . McKinsey.

Patagonia. (2020). .

Patagonia. (n.d.).

Patagonia Company’s Possible Customer Profile

Introduction

Nowadays, women are more involved in sports than ever. According to the Research and Markets Adds Report: Sportswear Market (2021), the demand for women’s sportswear is experiencing rapid growth. Besides, in the Middle East, the attitude to women’s sports is changing, which also creates the basis for a new market. The Global Women’s Sportswear Market Till 2026 Latest Industry Scenario, Trends, Restrain & Future Forecast (2020) reports that the most popular brands in this segment are Nike, Adidas, Puma, Asics, Ralph Lauren Corporation, Hanes, and others. An understanding of a possible customer profile will help Patagonia to find a proper segment in this market.

Possible Customer Profiles

A customer profile helps to concentrate on the needs of customers and to understand the potential target audience for the product. Besides, the channels used by certain types of customers can help to understand where it is possible to place the advertisement. Creating groups dedicated to the product, launching contests, and other sales promotion offers also should be done after determining the key platforms preferred by the customer.

The First Profile

The potential customer for Patagonia women’s sportswear is a woman living in a big city aged from 18 to 35. This is the age when people are the most physically active and adventurous enough to explore the globe. Thus, a possible customer should be an active woman who enjoys trips and regularly travels in the countryside or in more distant locations such as mountains or forests. As for the challenges that such a person can face, these are the bad weather conditions that can occur on trips. The Patagonia product has been developed to solve this problem. Besides, the customer can face the problem of universal clothing that could be worn both in the gym and during traveling. The product perfectly fits this need. The customer can actively use such channels as Facebook and Instagram to share photos and to get some information concerning traveling and a healthy lifestyle.

The Second Profile

The second potential customer is a woman actively involved in sports. She can actually be more aged, as people over 35 do sports, too. However, the most involved sector of the audience would be from 18 to 35. Such a person lives in a big city, where it is important to wear stylish sports clothes. Besides, a person from a big city tends to differentiate clothes and buy separate outfits for different purposes. Therefore, a challenge occurs which can be solved by Patagonia products. The channels are the same as for the first profile. However, it is also possible to use Tik-Tok placement, as young people prefer this channel, and this is a relatively new and not saturated platform.

The Third Profile

The key demographics for the third customer would be the same as for the first two ones. As long as this is women’s sportswear, it should be a young woman’s. The key psychographics, although, are different, as the third customer is more concentrated on environmental issues. The Patagonia product is environmentally friendly, which is a great argument for people who want to reduce their carbon footprint. Thus, among the challenges, such potential customer faces there are the issues of using recycled and recyclable materials that can be worn for many years. The preferred channels are Facebook, Instagram, and YouTube, as these can be the sources of information on healthy lifestyles and environmental issues.

Conclusion

Thus, women sportswear market is a growing one, since the popularity of sport among women increases. A possible customer of Patagonia sportswear is a young woman who is interested in sports, travelling, and environmental issues. The product can be useful for everyone who cherishes comfort and style and at the same time leaves an active life. The main channels that can be used for promotion are Facebook, Instagram, and YouTube.

References

. (2020). M2 Presswire, NA. Web.

. (2021). Entertainment Close-up, NA. Web.

The Most Effective Market Strategy for Patagonia

Patagonia is a retailer for activewear, and their products range from gear to sleeping bags and tents. Essentially, they provide all the necessary clothing and gear for activities related to nature. Patagonia is usually more highly-priced than other sports-related brands due to the fact that the materials and production of their products are of premium quality. Additionally, they are environmentally conscious and make sure their products are sustainable and durable. Currently, they are within the clothing and sportswear market. Though they do not sell all types of gear and equipment for outdoor sports, they do provide some essentials such as sleeping bags, blankets, and other usually textile-related products.

Though they currently involve customers both interested in outdoor activities and eco-conscious clients, their pricing is not affordable for many. As such, they may be able to diversify their approach by creating lines of products within a more low-priced range. In order to penetrate the environmentally friendly and sustainable market, Patagonia can employ advertising and product creation that prioritizes the high quality of their products. For product development, it would be possible for Patagonia to implement more modern technology in clothing production while maintaining limited harmful by-products of the process. Patagonia is a leader of quality within the market of clothing and can add to the market development by collaborating with like-minded creators and firms.

The most effective strategy is likely to be market development with the involvement of eco-friendly creators and firms. This is largely due to the fact that Patagnoa is respected by consumers and other producers alike due to their non-traditional approach and prioritizing of the environment and the customers (Deshmukh, 2021). As such, this creates an opportunity for Patagonia to effectively engage with the community that has constructed within their market in order to both develop their own products and the market as a whole.

Work Cited

Deshmukh, Rohan. “Patagonia’s purpose-driven Marketing Strategy.” The Strategy Story, Web.

Strategic Marketing of Patagonia Women’s Outdoor Clothing

Introduction

The given marketing strategy is aimed at the promotion of outdoor clothing for women produced by Patagonia company. The strategy includes such points as a mission statement, objectives, product and target market description. Besides, such aspects are analyzed as the pricing strategy, promotion channels, competitors, and customer relationship management. Thus, the product is analyzed from different aspects that allow for introducing it to the market successfully.

Product

Patagonia clothes for women are water- and wind-proof and can be used both for sport activities and everyday life. One feature of this product is that it is wind- and waterproof. This feature is transformed into the benefit of the possibility of involving in various outdoor activities in any weather. In other words, customers are able to walk, do sports, or perform other tasks outdoors regardless of whether it is sunny, windy, or rainy, so the weather will not interfere with their plans. The second feature is that the product is made of recycled materials using technologies with reduced carbon emissions. The benefit of this feature is that it allows customers to reduce their environmental impact and become conscientious citizens.

Objectives and Mission Statement

Mission Statement

The product is high-quality outdoor clothing made of recycled materials. So, the mission statement for this product could be as follows: “To help people live an active life no matter what the weather is like; to promote the health of both customers and the environment.”

Thus, the mission statement reflects the audience, which is presented by active young women. Besides, it explains what the company do – it promotes a healthy lifestyle and cares about the environment. The statement also describes the way the company does it. Patagonia it possible to engage in physical activities in any weather.

Marketing Objectives

In this report, marketing objectives for one year are analyzed. The first marketing goal would be to increase brand awareness by launching a social media campaign on Twitter and Facebook. An increase in brand awareness would be demonstrated by at least a 50% increase in organic web searches by the end of the year. The second goal is to decrease the turnover rate by 15% in six months by establishing a customer loyalty program. The third goal is to increase sales by 10% over one year by building relationships with customers on social media.

The product does not need any serious testing as long as it is already based on the best practices of other Patagonia products. Besides, it is not a high-tech product that would demand a series of technological tests. Thus, the product is ready to go to the market, which makes the goals and deadlines achievable.

Target Market

The target audience for Patagonia clothing is formed mostly, active young women. The main players in the market are Nike, Adidas, Puma, and others. Nowadays, the market is growing, as long as there is a trend for sportswear. People start to wear sneakers and sports clothes not only to gyms but also in everyday life. Besides, such trends as feminism and the protection of the environment make people wear comfortable and recyclable clothes. Patagonia offers a product that fully follows this trend.

A customer profile of a potential customer needs to be analyzed in order to understand the segments of the target market. It also helps to concentrate on the needs of customers and to understand the potential target audience for the product. Besides, the channels used by certain types of customers can help to understand where it is possible to place the advertisement. Creating groups dedicated to the product and launching contests and other sales promotion offers is also should be done after determining the key platforms preferred by the customer.

The potential customer for Patagonia women sportswear is a woman living in a big city aged from 18 to 35. This is the age when people are the most physically active and adventurous enough to explore the globe. Thus, a possible customer should be an active woman who enjoys trips and regularly travels in the countryside or in more distant locations such as mountains or forests. As for the challenges that such a person can face, these are the bad weather conditions that can occur in trips. The Patagonia product has been developed to solve this problem. Besides, the customer can face the problem of universal clothing that could be worn both in the gym and during traveling. The product perfectly fits this need. The customer can actively use such channels as Facebook and Instagram to share photos and to get some information concerning traveling and a healthy lifestyle.

The most involved sector of the audience would be from 18 to 35. Such a person lives in a big city, where it is important to wear stylish sports clothes. Besides, a person from a big city tends to differentiate clothes and buy separate outfits for different purposes. It is also possible to use Tik-Tok placement, as young people prefer this channel, and this is a relatively new and not saturated platform.

Competition

The Global Women’s Sportswear Market Till 2026 Latest Industry Scenario, Trends, Restrain & Future Forecast (2020) reports that the most popular brands in this segment are Nike, Adidas, Puma, Asics, Ralph Lauren Corporation, Hanes, and others. According to the type of sportswear, different companies lead in different segments. For example, Lululemon is heading the segment of yoga pants. Victoria’s Secret specializes in the field of underwear, also producing underwear for sports. Nike and Adidas have a wide range assortment, which includes women’s outfits. Thus, they are the main competitors of Patagonia, as long as they The market volume was estimated at $148,757 in 2020. It has the potential to grow up to $216,868 by 2025. Thus, it is a growing market as long as nowadays women are involved in sporting activities more than ever. According to the Research and Markets Adds Report: Sportswear Market (2021), the demand for women’s sportswear is experiencing rapid growth. Besides, in the Middle East the attitude to the women’s sport is changing, which also creates the basis for a new market.

Core Strategy

The strategy should be based on the marketing objectives described above. The first objective includes increasing brand awareness. It can be achieved by improving the advertisement campaigns. The company should take part in different events promoting its brand. Besides, it can use the services of YouTube and Tik-Tok bloggers, paying them for wearing the brand’s clothes. The basic platform for advertising campaigns should be the internet. It is explained by the popularity of e-commerce, especially in the context of a pandemic.

The second objective is to decrease the turnover rate by 15% in six months by establishing a customer loyalty program. The program can include discount cards for customers and special sales for them. Introducing certificates can also be useful, as long as Patagonia is an expensive brand and people would like to receive it as a gift. The third goal is to increase sales by 10% over one year by building relationships with customers on social media. It can be done through more active involvement in social net activity. The official group of the company should be more active and inform the customers about the product’s features and further discounts. Besides, the information about the environmental features of the product should be published, as long as it gives the customer understanding of the reasons for the product’s high price.

Marketing Mix

Communication and Promotion

For this product, different advertising strategies can be applied. The main platform for advertisement placement should be the internet, which includes different social nets and websites. For example, advertisements can be placed on YouTube, Facebook, Twitter, and Instagram. As long as the target audience is young, TikTok can also be involved, as is used mostly by young people. The advertisements can contain links to an online shop of the company. Besides, outdoor advertisement can be used, such as the placement of banners and posters in trading centers, subways, and other popular places. TV can also be involved, although it seems not so effective for reaching the right audience. Besides, there can be created a system of discounts; for example, if a person attends a gym and takes there a Patagonia flyer, they can buy the product with a discount. Besides, the company can be involved in different sporting events and competitions as a sponsor in order to promote its product. A system of bonuses for customers can also be used; for example, if a person buys one product, the second one can be offered with a discount. Besides, loyalty cards can be used to make the customer return to the shop.

Price

Patagonia products are not cheap, as long as the brand positions itself as the one producing environmentally friendly clothes of high quality. An average jacket by Patagonia costs around $300. Accessories, such as hats, cost around $50 (Patagonia, 2021). Thus, the customers should be explained what they are paying for. In the case of women’s outdoor clothing, high price is built up from different factors. First of all, it provides decent conditions for the workers. Second, it is connected with technologies that involve improving greenhouse gas emissions. According to the company’s philosophy, cutting the price leads to overconsumption. Thus, high prices should be presented not as a disadvantage but as an advantage that helps to save the environment.

Channels of Distribution

Three basic channels of distribution include direct-to-consumer wholesale and retailer sales. Besides, reverse logistic channels, the internet, and dual distribution are also popular. The channel of distribution is chosen according to the type of product. Patagonia produces its goods at several manufacturing facilities, retailing them at 70 stores in different countries, including Japan, South Korea, the Netherlands, Argentina, and others. Thus, it has its own chain, including both manufacturing and distribution. Following its mission and values, the company pays special attention to the distribution process in order to reduce the volume of transportation. Patagonia’s logistics are developed to be environmentally and socially conscious. Thus, for the company, it is important that the manufacturing sites are built closer to the suppliers and customers. It allows for reducing the costs of shipping goods from distant locations. During the period of the pandemic, for some customers, it is important that they can buy outfits without leaving their homes. Patagonia provides them with such an opportunity, as the company has an online shop. Thus, the distributor center in Nevada, with a net of 70 retailers and e-commerce are the main distribution channels for the company. For women’s outfits, they could also be effective, considering the type of goods.

Customer Relationship Management

Customer relationship management, or CRM, is an effective tool for controlling the customer’s preferences and organizing business processes. Analytical CRMs could be used for analyzing the data concerning sales and customer behavior. Based on this information, some correlation can be discovered between the location of distribution points, marketing strategies, and sales volume. Such a system could also help to differentiate the assortment range in order to better fit to the customers’ demands. All these features can be used in the given marketing strategy. Analyzing the customer’s behavior can be useful for increasing their loyalty and for understanding which online platforms they use. It can improve the advertisement strategy by placing the advertisements on the most popular sites.

Conclusion

Thus, the women’s sportswear market is a growing one since the popularity of sports among women has increased. A possible customer of Patagonia sportswear is a young woman who is interested in sports, traveling and environmental issues. The product can be useful for everyone who cherishes comfort and style and at the same time leaves an active life. The main channels that can be used for promotion are Facebook, Instagram, and YouTube.

References

Cham, T. H., Ng, C. K. Y., Lim, Y. M., & Cheng, B. L. (2018). . The International Review of Retail, Distribution and Consumer Research, 28(2), 174–189.

. (2020). M2 Presswire, NA.

Ojala, O. (2018). The effect of brand values on consumer behavior: The case of outdoor clothing industry [Unpublished bachelor’s thesis]. Turku University of Applied Sciences.

Patagonia (2021). How clean are your clothes? Patagonia. Web.

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Human Resource Policies and Practices: A Case Study of Patagonia

Patagonia places a premium on cognitive success and physical well-being and gives staff flexible work hours. Since most firms adhere strictly to schedules, this perk confers a significant level of prestige in the company. After one year of employment, Patagonia permits workers to take 60 paid vacation days (Coyoteprof, 2019). These days allow laborers to devote time to grassroots action and environmental causes. Patagonia has a center for child development, and the great value of this benefit is that workers have families depending on them. The company permits parents to concentrate on their tasks while guaranteeing their children’s safety (Coyoteprof, 2019). This bonus is commendable because some parents cannot find someone to monitor their children. In addition, this benefit allows parents to place their children in secure places.

A candidate hired by Patagonia must be passionate, socially responsible, and honest. These characteristics promote longevity and high morale in the company. The mentality of the employees is a direct reflection of the organization. Patagonia’s features show consumer satisfaction is prominent in the company. These characteristics support the concept that a company’s internal affairs reflect the external goals of the company. The candidates commit to enhancing themselves, which improves the company – as such, being passionate about the product creates loyalty among the employees (Coyoteprof, 2019). Patagonia’s strategy is to satisfy the employees and to develop an all-inclusive work environment.

Patagonia’s mission is distinct from other businesses because it emphasizes internal issues. Patagonia’s objective is to operate a socially and environmentally responsible business. This is because the organization places a focus on superior merchandise and service effectiveness. Patagonia prioritizes product durability and the development of items that can withstand the test of time. The enterprise believes replica products should produce the same impression as the original (Coyoteprof, 2019). In addition, the company values specific features like social integration, which is distinguished by its high morality and devotion to adequate corporate financing. The company I work for has its mission centered upon providing consumers with high-quality products at considerably low prices, unlike other firms that charge higher costs for premium goods.

Reference

Coyoteprof. (2019). [Video]. YouTube. Web.