Inspiring Marketing Strategy: Patagonia

“We’re a part of nature, if we destroy it, we destroy ourselves.”

- Yvon Chouinard, Founder of Patagonia

For my first assignment, in my Brand Management course, I was asked to analyze Patagonia Canada. I am going to bring this assignment to life, and describe how understanding the brand is important to develop a successful company.

Patagonia is an apparel company playing in the premium outdoor performance wear industry. Initially, I was not intrigued by this assignment (sorry prof if you're reading this) ... however, as I began my research and with every click on the website, I grew more and more inspired by this company.

Let me share:

Early on in my research, I became aware that Patagonia is perceived as an extremely environmentally conscious company.

Was this perception a marketing ploy or the true identity?

I made it a goal to reveal the truth.

Advised by my professor, I decided to take a look inside the store instead of being a typical millennial and devoting all my efforts to the web. As I stepped into Patagonia on King St. in Toronto, I looked up to the biggest and most centralized photo in the store: a magnificent image of an ice climber in Norway. I noticed the climber in this photo was wearing an Arc’teryx jacket, the competitor! Shocked - I inquired with the store manager who told me: “the image is just so rad, we didn’t care about the jacket, we had to share this”.

Instantly, I felt the connection people have with Patagonia. I realized it sincerely is inspired by the world, not by sales. Patagonia doesn’t only talk the advocate talk, but it walks the walk, too.

Back to the assignment, what is it about Patagonia that has made it so successful.

In an external analysis, I found it's participating in an increasingly competitive market. With trends like e-commerce adding to the threats of new entry and athleisure, which is blurring the lines between sportswear and fashion wear. As well, the more consumers are aware of environmental issues and the impact of corporations, the more being 'green' will give a company a competitive advantage (specifically, if it is still priced the same as the non-environmental product).

Using Aaker's Strategic Market Management text, I segmented Patagonia's target market into 4 groups. I like to call them the Extreme Achiever, the Leisure Nature Lover, the Athlete in the ‘burb and the Environmentalist. Although all of these segments are shopping at Patagonia for benefits like quality apparel made in an environmentally responsible manner, I segmented them based on differentiating features. For example, the Extreme Achiever needs the most durable product that won't break when he's hanging from a mountain thousands of feet in the air; on the other hand, the Leisure Nature Lover may be seeking benefits like trendiness. By understanding the benefits sought by each segment in the target group, you can more effectively share your message in a way that will resonate with these segment.

Knowing your customers is essential to make sure you're communicating your message in the most meaningful way.

Now that we have developed the segmentation of Patagonia's shoppers, let's understand its brand.

We know, even before in-depth research, that a love of nature is intertwined in every aspect of this business. It is also known for its innovative and highly functional extreme sports wear. We are developing an understanding of who this company is.

Patagonia is creating product to prepare each consumer for adventure.

In relating this back to our segmentation, the consumers adventure may be a walk in the ravine behind his/her house, a b-ball game in the city, or a 214-day mountain climbing excursion. If Patagonia can provide products useful to all of these segments, while staying true to the identity, it will see success.

What is its identity? We have started to see it develop throughout the research. We know it is definitely an environmental company. We know that it is an innovative company. And we know that it is an adventurous company.

But what else?

Through my research, I have found that some other associations with Patagonia are customer orientated, transparent, and inspirational. This is shown through a ‘landing’ store and online chat system which has extremely knowledgeable staff, who WANT to help you. They are completely transparent about mistakes they have made and seem to genuinely want to do right. Patagonia is inspirational in effort put to educating people as to why we should love and respect the earth and the actions they are taking to make a difference. The communication efforts are shown on a small scale, like tags in the t-shirts; inviting environmental groups to host their meetings in the store (free of charge) to huge marketing campaigns centered around environmental awareness.

Well, we have looked how it is perceived by consumers, but what is Patagonia's message?

Mission: to develop durable, simple, multi-functional product that is easily reusable. To use marketing and employees to educate as many people as possible about the environmental crisis. Core Values: Quality product that is perfect for outdoor activity, developed in a fully sustainable manner. Brand Purpose: “Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis”[i].

Patagonia wants to encourage minimalist behaviour to give customers the ability to purchase more responsibly.

It delivers this message in everything it does. The customer is never confused about WHO Patagonia is, and WHAT it is trying to achieve.

Patagonia leverages the fact that they have a clear identity to deliver their messages in a way that is meaningful to each target segment. This encourages bonds with potential consumers and increases their likelihood to shop with Patagonia (... not that Patagonia wants that - see: Don't Buy This Jacket).

To answer my original question: what is it about Patagonia that has made it so successful.

The clear identity of Patagonia easily related to its mission. If a business can truly recognize its core reason for existing, the heart and soul that drives the company, then it will be prepared for major success. The employees, consumers and potential consumers can easily know who Patagonia is, what it stands for, and what it is trying to accomplish. This makes it easy for people to align their values with the company and become loyal consumers who will drive your businesses growth!

[i] Patagonia. (2017). Patagonia. Retrieved from www.patagonia.ca

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