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Amy Birkett Brand Audit 2014
Mk12006 Brand Management;
Deborah Clewes
2
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.
3
“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
4
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
5
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
6
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].
8
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
9
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
10
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
11
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]
12
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
13
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
14
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
15
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?
16
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.
17
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.
18
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.
19
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