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Amy Birkett Brand Audit 2014

Mk12006 Brand Management;

Deborah Clewes

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Contents

1. Title page 2. Contents 3. Introduction 4. Internal audit: Brand positioning 5. : Visual identity 6. : Marketing mix 7. Continued, 8. Continued, 9. Continued, 10. External audit: PESTEL 11. Continued & Brand insight 12. Brand image, competitor

analysis 13. Continued & customer analysis 14. Summary: SWOT 15. Brand challenges,

recommendations.

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“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

–Patagonia's Mission Statement Patagonia.com, (2014). Patagonia Outdoor Clothing & Gear | Free Shipping On $75+ . [online] Available at: http://www.patagonia.com/us/home [Accessed 3 Nov. 2014].

Patagonia is a company who’s main aim is to provide equipment for outdoor sports people who partake in sports such as climbing, skiing, snowboarding, surfing, fly fishing, paddling and running. However, alongside providing high quality sportswear, Patagonia abides by a high quality CSR policy and also have a tremendous sense of preservation of the environment and work to keep as green as possible in many different ways including only using recycled polyester in their clothes and organic cotton only to reduce the use of pesticide insensitive cotton.

:Appendence B

Appendence A

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Internal audit:

Brand positioning:

Patagonia is a very individual brand for what it is putting forward to its market.

This is due to the fact that everything they do is done with the forethought of

being sustainable and environmentally friendly. This differs from its competitors

such as ‘North Face’ or ‘Helly Hanson’ who concentrate more on the image of the

customer who purchases their products, whereas Patagonia is concentrated on

the image the clothes portray of their policy’s and idealisms.

However this can mean that their band comes across to consumers as a bit in

your face as to why they aren’t doing more for the environment or maybe even

makes the consumers feel bad for buying clothes from other companies who

don’t have the forethought of sustainability. This may mean that consumers

simply ignore the brand in its entirety meaning less revenue for Patagonia.

Fowler, Stephen J., and C. Hope. "Incorporating sustainable business practices into company

strategy." Business strategy and the Environment 16.1 (2007): 26-38.

:Appendence C

Patagonia offer clothing that is

sourced in a fair trade and

environmentally friendly

environment

Outdoors

Active

Professional

Well - being

Fair trade

Trendy

Good material

Made to

high quality

Bold logo

Clear cut

Strong

Practical

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Visual identity:

Patagonia’s visual identity within their market comes across as environmentally

friendly whilst also emulating an allure of high quality sports gear to rival the

quality of company’s such as NIKE and NORTHFACE.

However some consumers may find the prices extraordinarily

steep some may even say the products are over priced. Some consumers may

also say that the style of the clothes is not appealing enough for the younger

generation. Because of the need to be practical some of the clothes are not the

most flattering and could seen are only aimed at an older generation of early 30’s

upwards. .

Carbon Creative, (2011). Visual Identity Design - Corporate Identity Brand - Carbon Creative.

[online] Available at: http://www.carboncreative.net/services/branding/visual-identity/

[Accessed 3 Nov. 2014].

editor, E. (2014). Patagonia Clothing: Made Where? How? Why?. [online] The Cleanest Line.

Available at: http://www.thecleanestline.com/2012/04/patagonia -clothing-made-where-how-

why.html [Accessed 3 Nov. 2014].

:Appendence D

:Appendence E

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Marketing mix:

PRODUCT

Patagonia offer quality outdoor sports wear for the individual who has a passion

for being outdoors and experiencing the full effects of mother nature on their

surroundings. They offer not only the obvious sporting goods such as trainers

and tops but also insulation layers, underwear, technical packs (sport specific,

e.g. if you do climbing this will contain carabiners and other climbing

parinifalier) their products differ from that of company’s such as ‘Nike’,

‘Northface’ and ‘Helly Hanson’ because of Patagonia’s corporate social

responsibility policy. This sets them aside from their competitors because of the

compassionate approach they take to marketing, producing and selling of their

products.

However whilst their approach to their brand is individual it means that the

prices of their products can be very steep. This to due to the extra work they put

into making sure the product is made in environmentally friendly surroundings

as possible.

Bonin, Yamuna Sandrine. "Spirituality: A key Factor to Achieve Sustainability Through the

Empowerment of Compassionate/Altruistic Managers."Purushartha: A Journal of

Management Ethics and Spirituality 5.1 (2012).

PRICE

Whilst Patagonia are a company who value a strong CSR policy, relating to being

economically friendly as well as striving to create a fair work place for everyone

employed by them, be that store manager or a factory workers. An aspect of the

company that some people may alternatively find unfair is the pricing of the

products. The price of a men’s t-shirt can range from £30 - £70. Women’s are £25

- £85. The high pricing is obviously due to the in-depth process of creating the

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clothes in line with the CSR policy whilst also trying their best to not pollute the

environment in which they make the clothes. Implementing these policy’s such

as their ‘factory work place code of conduct.’

Claudio, Luz. "Waste couture: environmental impact of the clothing industry. “Environmental

Health Perspectives 115.9 (2007): A449.

PLACE

Patagonia is a global brand. They have an international website that ships to 29

counties throughout Europe, Austria, Belgium, Bulgaria, Cyprus, Czech Republic,

Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy,

Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal,

Romania, Slovenia, Slovakia, Spain, Sweden, Switzerland and UK.

The fact that they can reach such a vast amount of customers to provide them

with their product only broadens their fan base. If they only delivered within the

USA, they may not be seen as such a phenomenon and would definitely not be as

successful as they currently are.

However it could be said that whilst Patagonia is a global brand who sell all over

the world, the main proportion of the advertising goes on in America. This means

that it is not as widely purchased in the UK. From this it is easy to see that there

is obviously a gap in their advertisement. For example, they could a new

advertisement relation to being ready for British weather with a new line of rain

proof wear

Confino, J. (2013). Patagonia plans global campaign for responsible capitalism . [online] the

Guardian. Available at: http://www.theguardian.com/sustainable -business/blog/patagonia-

campaign-responsible-capitalism [Accessed 25 Nov. 2014].

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PROMOTION

One of Patagonia’s more memorable product promotions is their ‘Don’t buy this

jacket’ campaign. It revolves around informing consumers that their products

(specifically jackets) create 2 thirds of their own weight in waste after creation.

By trying to deter customers from buying their products they are filling the

consumer with trust for the company because they no longer see them as a greed

filled, remunerative, materialistic organisation. They see them as a honest and

wholesome clothing brand who want to make the world a better place.

However similarly to the problem that Patagonia suffers

within the ‘place’ aspect of their advertising, this is also apparent within the

promotion of their product.

Primary research into the promotion of Patagonia in the UK

I conducted a YES/NO survey about Patagonia and their ‘don’t buy this jacket

campaign. I asked 20 randomly selected persons;

1) Have you ever heard of the clothing brand Patagonia?

2) Do you own any Patagonia products?

3) Have you ever heard of a promotional campaign by Patagonia called

‘Don’t buy this jacket’?

The results have been displayed in a bar graph below:

Appendicie F

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From the above research it can be said that in the UK people generally are not

informed enough about Patagonia and what it does as a company or for the

environment .

Pardot, (2013). What Marketers Can Learn from Patagonia's Risk iest Ad Campaign Ever -

Pardot. [online] Available at: http://www.pardot.com/ideas/marketers-learn-patagonias-

riskiest-ad-campaign/ [Accessed 7 Nov. 2014].

0 5 10 15 20

Heard of 'Don’t buy this jacket'

Own a patagonia product

Heard of patagonia

No

Yes

Appendice G

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External audit:

PESTEL

INFUENCES IMPACT, IMPLICATION

P There is the obvious issue of

increased taxations on shipping

into America from the factories

over seas. This will affect

Patagonia hugely due to many of

the work houses where the

clothes are made are outside of

America and all the clothes are

shipped from America.

To make a profit on their products

Patagonia would need to increase

prices even higher. This would mean

that they might lose out on more

consumers who will be unable to afford

the products due to many feeling that

the products are already highly priced.

E Patagonia obviously takes the

influences of sustaining the

environment whilst also creating

quality clothing very seriously.

However what do Patagonia plan

to do with their product if

sustainability of the external soon

becomes irreversible.

With the current environmental

climate at the stage that it is at

with global warming, soon will

there be any reason to put work

into sustaining environment if

there is not environment to

sustain?

If Patagonia did not participate in such

strong environmental viewpoints or

strategies they would not have such an

individual selling point as a company.

The fact that they care so deeply about

the treatment of the environment and

their workers is what sets them apart

from market leader such as North Face.

S Patagonia’s influence on the

social environment around them

is to try and make the consumers

It could be said that this sensible

approach to the social environment

means that Patagonia attracts an older

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feel good for buying their

products. They want to

implement a feeling of self worth

and goodness around their

products rather than just fashion.

audience and lacks the flare and

entirely lack lustre cool of Northface

and Animal. Patagonia could been seen

to be simply trying too hard, and this is

what is repelling the younger

consumer.

T Patagonia use a material in many

of their clothes called GORE-TEX.

This is a lightweight, waterproof,

breathable fibre, which is perfect

for outdoor sports where space

and weight are important such as

rowing or cycling.

Because of using this state of the art

material, Patagonia have the upper

hand against their competitors as

GORE-TEX is the most appropriate

material for them specifically to use

due to the fact that it is

environmentally friendly and operates

via a similar CSR policy to Patagonia.

E Manufacturing in large quantities

to reduce off cuts and wastage.

By doing this Patagonia are reducing

their impact on the environment even

further. They are also back up their

implementation of the CRS policy,

therefore increasing their consumers

trust in the company.

L Ensuring fair and legal labour

practises throughout the work

factories and supply chain of

Patagonia.

By doing this Patagonia are showing

their publics a physical example of how

they are a company that do good and

who aren’t just a big corporate

company focused on profits. They care

about their employees rather than just

the ‘big men’ of the company, they are

looking out for the ‘small people’.

DE BONO, S. I. L. V. I. O., and STEPHANIE JONES. "ORGANIZATIONAL DEVELOPMENT

AND CHANGE." Leadership, Change and Responsibility(2008): 112.

Patagonia.com, (2014). Patagonia Fabric: GORE-TEX® Paclite® Technology. [online]

Available at :http://www.patagonia.com/eu/enIT/%20/eu/enFR/ [Accessed 5 Dec. 2014]

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Patagonia.com, (2014). Patagonia Fabric: GORE-TEX® Paclite® Technology. [online] Availableat:http://www.patagonia.com/eu/enIT/%20/eu/enFR/%20/eu/enGB/%20/eu/enCH/%2

0/eu/enGB/%20/eu/enCH/%20/eu/enAT/%20/eu/enRO/ [Accessed 5 Dec. 2014].

Brand insight-

Patagonia, going forwards is only going to continue to grow in popularity as the

earth gets further and further into this environmental crisis. Their CSR policy

that aids environmental friendliness will only become more appreciated by the

public therefore driving them towards Patagonia products.

Having analysed Patagonia in a SWOT analysis in the summary, the conclusion

can be drawn that Patagonia appeals to those who have a strong feeling of care

towards the environment and how what they do as an individual affects it.

De Chernatony, Leslie. From brand vision to brand evaluation: the strategic process of growing and strengthening brands. Routledge, 2010.

INSIGHT

“The most important right we

have is the right to be responsible.” – Gerald Amos

BRAND IDEA Making sure that everything they do related back to CSR policy of environmental friendliness.

BENEIFITS AND TRUTHS People gain a feeling of self worth when they buy Patagonia. Also the don’t buy this jacket campaign makes people feel less pressure to buy the clothing, they only buy it because they really want to.

PERSONALITY Practical, environmental, caring, expensive, colourful, fun, responsible, inspiring, innovative.

ACTION 1 - New advertising campaign. 2 - New line of jackets 3 - Advertising via television 4 - Branching out to a new

consumer base, children?

Taylor (2006) Brand Vision APPENDICIE H

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Brand image -

Competitor analysis –

The primary competitors of Patagonia are companies such as North Face,

Regatta and Helly Hanson. Some of the key purchase factors within the product

market are their use of GORE-TEX material to heighten the quality of their

products and they’re in depth and powerful CRS policy, which is implemented

into every aspect of the company. The reason people purchase the Patagonia

product instead of a product from North Face would be for a feeling of self worth

and doing good. Compared to Northface where the reasons that people buy that

product is because it is simply the most well known and a very ‘cool’ brand to be

associated with. To increase and improve the market share Patagonia need to

Not the market leader therefore not the first brand that would come to mind however they have strong brand loyalty, once a consumer has started buying with Patagonia it will be the brand they always go to.

Consumers have a strong loyalty to this brand, whilst the brand also has a strong engagement within wit work with the environment.

Patagonia implements feeing’s of self worth and definite social approval due to the pricing and the CRS policy.

Patagonia are not a company shaped around making profit, they are a company shaped around protecting the environment we have . that is the image that they put out to the public.

The quality of the Patagonia product is one of the highest in the market due to the fair trade wage and policy they implement into their workhouses. Their strong CSR policy also means their credibility is practically unwavering

The main purpose of Patagonia clothing is to be durable and reliable and their style and design is consistent with their line.

APPENDICIE I

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consider larger advertising campaigns that span to a broader audience. Coming

across to the younger generation of teenagers to young adults will increas e the

growth of the company hugely.

Hausman, Jerry, Gregory Leonard, and J. Douglas Zona. "Competitive analysis with

differenciated products." Annales d'Economie et de Statistique (1994): 159-180.

Customer analysis –

The main customers of Patagonia are ages between 25-50. They are generically

active within the outdoor sports sector, ie climbing, cycling and hiking. These

people are choosing Patagonia because they think that it is the best product for

their activity. This may be because they have purchased Patagonia products

before and they have worked well or it may be due to research into the different

brands they are able to purchase and decided Patagonia is best for them, or it

might be because they feel strongly about protecting the environment and this is

something that Patagonia champion.

Upshaw, Lynn B. Building brand identity: A strategy for success in a hostile marketplace. Vol. 1. New York, NY: Wiley, 1995.

Appendice J

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Summary:

SWOT

STRENGTHS WEAKNESSES OPPERTUNITYS THREATS

High quality

Fashionable and

aesthetically

pleasing

Makes you feel

good for wearing

it due to the CRS

involvement

Fairness for the

factory workers

who make the

clothes.

High prices

Not very popular

in UK, mainly

USA.

People may use

it as a substitute

to Northface

rather than

going to

Patagonia first

Broaden their

market by

selling via

online retailers

(amazon?)

Promote more

within the UK

to increase

their fan base

here.

If company’s

such as

Northface

implemented the

same kind of

CSR that

Patagonia did

how would they

set themselves

apart?

What is the

prices soon

become simply

too high for

consumers to

purchase in the

current credit

climate we are

in? How would

Patagonia

continue to pay

their workers a

fair wage and

still make a

profit?

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Brand challenges –

Patagonia incurs many challenges within their brand including lack of promotion

outside of the US, and being held back from consumers under the age of 30 due

to their brand image.

The lack of the promotion outside of the US leaves a large gap in their market for

consumers from the UK. The UK has a growing popularity of outdoor ventures

and sports therefore would be a great market for Patagonia to target.

Being held back from the market of young adults 15-25 could be said to be

damaging to the company’s outward going image within consumers. The

younger generation are those that will be taking forward Patagonia’s emphasis

on environmental protection so targeting them would be beneficial for them.

De Chernatony, Leslie, Malcolm McDonald, and Elaine Wallace. Creating powerful brands. Routledge, 2011.

Recommendations

Over the next three years a strategic change that Patagonia could make to

improve and maintain brand equity would be to improve advertising outside of

the US. Bringing television advertisements to the UK would hugely improve their

consumer base overseas. For example, televising the ‘Don’t buy this jacket’

campaign could be hugely beneficial for Patagonia.

A tactical approach to improving and maintaining brand equity would be to latch

onto a popular well-known brand of a similar quality to Patagonia, for example

Barbour. Barbour is an incredibly popular outdoor sports brand in the UK and by

becoming their partner; Patagonia would be able to gradually up consumer’s

knowledge of their brand and what they stood for in the UK via Barbour. By

being a partner, Patagonia may be able to offer more deals and discounts

therefore lowering their price bracket and appealing to a wider consumer pool.

Finally to refer back to the SWOT analysis of Patagonia, I could be said that the

main focus points for the company should be trying to lower the prices to appeal

to more customers and more advertisement outside of the USA. The

recommendations above address both of these weaknesses and enable Patagonia

to improve on them going forward.

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REFRENCES

Patagonia.com, (2014). Patagonia Outdoor Clothing & Gear | Free Shipping On $75+ . [online]

Available at: http://www.patagonia.com/us/home [Accessed 3 Nov. 2014].

Fowler, Stephen J., and C. Hope. "Incorporating sustainable business practices into company strategy." Business strategy and the Environment 16.1 (2007): 26-38.

Carbon Creative, (2011). Visual Identity Design - Corporate Identity Brand - Carbon Creative. [online] Available at: http://www.carboncreative.net/services/branding/visual-identity/

[Accessed 3 Nov. 2014].

editor, E. (2014). Patagonia Clothing: Made Where? How? Why?. [online] The Cleanest Line. Available at: http://www.thecleanestline.com/2012/04/patagonia -clothing-made-where-how-why.html [Accessed 3 Nov. 2014].

Bonin, Yamuna Sandrine. "Spirituality: A key Factor to Achieve Sustainability Through the Empowerment of Compassionate/Altruistic Managers."Purushartha: A Journal of Management Ethics and Spirituality 5.1 (2012).

Claudio, Luz. "Waste couture: environmental impact of the clothing industry. “Environmental Health Perspectives 115.9 (2007): A449.

Confino, J. (2013). Patagonia plans global campaign for responsible capitalism . [online] the Guardian. Available at: http://www.theguardian.com/sustainable-business/blog/patagonia-

campaign-responsible-capitalism [Accessed 25 Nov. 2014].

Pardot, (2013). What Marketers Can Learn from Patagonia's Risk iest Ad Campaign Ever - Pardot. [online] Available at: http://www.pardot.com/ideas/marketers-learn-patagonias-riskiest-ad-campaign/ [Accessed 7 Nov. 2014].

DE BONO, S. I. L. V. I. O., and STEPHANIE JONES. "ORGANIZATIONAL DEVELOPMENT AND CHANGE." Leadership, Change and Responsibility(2008): 112.

Patagonia.com, (2014). Patagonia Fabric: GORE-TEX® Paclite® Technology. [online] Available at :http://www.patagonia.com/eu/enIT/%20/eu/enFR/ [Accessed 5 Dec. 2014].

Patagonia.com, (2014). Patagonia Fabric: GORE-TEX® Paclite® Technology. [online] Availableat:http://www.patagonia.com/eu/enIT/%20/eu/enFR/%20/eu/enGB/%20/eu/enCH/%20/eu/enGB/%20/eu/enCH/%20/eu/enAT/%20/eu/enRO/ [Accessed 5 Dec. 2014].

De Chernatony, Leslie. From brand vision to brand evaluation: the strategic process of growing and strengthening brands. Routledge, 2010.

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De Chernatony, Leslie, Malcolm McDonald, and Elaine Wallace. Creating powerful brands. Routledge, 2011.

Upshaw, Lynn B. Building brand identity: A strategy for success in a hostile marketplace. Vol. 1. New York, NY: Wiley, 1995.

Hausman, Jerry, Gregory Leonard, and J. Douglas Zona. "Competitive analysis with differenciated products." Annales d'Economie et de Statistique (1994): 159-180.

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APPENDIX A - http://fontsinuse.com/uses/2052/patagonia-logo-and-t-shirts

B - http://www.fastcoexist.com/1678676/patagonia-asks-its-

customers-to-buy-less

C - Keller, K (2013) Strategic Brand Management Ch. 8 & Debbie

Clews, week 3 lecture slides on ‘External environment’

D - https://pntbound.wordpress.com/sponsors/patagonia-logo/

E - http://explorethepearl.com/place/patagonia/

F - http://sites.psu.edu/ank5283/2013/09/17/dont-buy-this-

jacket/

G – N/A Graph created in excel from primary research conducted by

myself.

H – Taylor 2006, Brand vision.

I - http://www.value-chain.org/brand-equity-pyramid/

J - http://www.gregglee.biz/ftp/student/Marketing/page_63.htm