AMM 230:

16 March 2010

Cecily Arambula,

Taylor Bittner,

Elizabeth Burdman,

Amy Kremer,

Ariana Rendon,

Zenia Villa.

Promotion Plan®

SPRING 2010 1

Contents Introduction……………..….1 Target Market…………..….2-3 Competitors……………..…4-5 Comparison Matrix..............6 Competitors Conclusion…..7 Problem Statement……..…8 Promotion Solutions………..9

Introduction……………..….1 Target Market…………..….2-3 Competitors……………..…4-5 Comparison Matrix..............6 Competitors Conclusion…..7 Problem Statement……..…8 Promotion Solutions………..9

SPRING 2010 2

IntroductionOur intent was to

discover new promotional objectives for us at Patagonia to appeal more to their target market through analyzing their main competitors’ characteristics.

Our main goal at Patagonia was to use new advertising strategies that would create greater customer loyalty in their core target consumers and secondary market.

SPRING 2010 3

Primary Market Segment

Men and Women, ages 18-40

High income: $75,000-$100,000 Environmental Activists

Organic lifestyle Outdoor sports enthusiasts Invest in quality, eco-friendly

apparel Quality of apparel in the utility

rather than fashion trend(Patagonia 2010)

• Warm and cold weather states

• Developed countries

• Richer neighborhoods

• Rural versus urban areas

Geographic

•Educated

•Generations X and Y

Demographic

• Middle and Upper class•Active

lifestyle

Psychographic

BehavioralKnowledgeable of other brands, but prefer eco-friendly ones.

SPRING 2010 4

Secondary Market SegmentThe differences between

the primary and secondary market segment are mostly found in psychographic and behavioral segments.

Secondary market is less concerned with the environment and more with durable gear.

•Active lifestyle

•Health-conscious

•Young

Psychographic

•Less focus on wants, more on needs

•Brand-loyal

•Less concerned with environment, higher concern for durable gear

Behavioral

SPRING 2010 5

Competition Patagonia is a southern

California based outdoor sportswear brand, whose main focus is on the environment. They strive to make all gear and apparel with organic or recycled material. We donate to and partners with many organizations to promote environmental activism and conservation. We believe in using business to inspire solutions to

REI is an outdoor gear retailer who stocks the highest quality and eco-friendly products, and also have their own high-quality line. At REI, “[They] inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.” (REI 2010)

The North Face focuses on alpine outdoor gear, but offers a broad spectrum of high quality apparel. At the North Face “sustainability and conservation form the core of The North Face pledge to advance the well-being of the planet, its citizens and those who enjoy exploring it.” (North Face 2010)

ARC’TERYX focuses on producing the highest quality and most durable alpine gear and apparel, rather than focusing on environmental issues. “ARC‘TERYX strives to continually become more aware of and sensitive to the environmental impact of our business practices” (ARC’TERYX 2010)

Columbia is a widely available outdoor sportswear company who has developed the highest quality Omni-technology products. Columbia focuses on maintaining social and corporate responsibility, “[They] drive environmental efforts within [their] own facilities and in [their] operations, as well as in the field.” (Columbia 2010)

the enviro-mental crisis (Patagonia 2010).

SPRING 2010 6

____________________________________________________________________________________________________________________________________________

Consumer -Participate in wide variety of outdoor activities - Outdoors lover with an active lifestyle

Personality -Ec0-friendly lifestyle - Promotes the climate change effort and lives an eco-friendly lifestyle

-Involved in community and outdoors -Longs for quality and technologically advanced clothing ____________________________________________________________________________________________________________________________________________

What sets them - Offers a carbon-neutral travel service for consumers -Large focus on global climate change and awareness

Apart - Engaged in communities across the country - Offer wide variety of equipment, tents, sleeping bags etc.

- Enthusiastic workforce willing to assist customers; rated - Constantly using new technology to create more sustainable products

in 100 Best Companies to Work For by FORBES magazine - Series and Collections of activity-specific enhancing sportswear

____________________________________________________________________________________________________________________________________________

What they Use - ecoSensitive apparel and gear made from high percentage - Recycled materials in most product lines including apparel and

of recycled, rapidly renewable and/or organic fibers footwear; offer 100% organic cotton products ____________________________________________________________________________________________________________________________________________

You’ll Find… Widely accessible, Easily Available

Many Stores, Online and online outlet Few Stores and outlets nationwide, Online ____________________________________________________________________________________________________________________________________________

Quality Standards High Quality; 100% Satisfaction Guaranteed High quality, yet eco-friendly ____________________________________________________________________________________________________________________________________________

Making the World - Reducing carbon footprint; become climate neutral by 2020 -Partnered with many climate change organizations such as 350.org

A Better Place - constructing building with less environmental impacts and BICEP; created online site called Planet Explore

lower operating costs; LEED certified distribution center -Invests in renewable wind energy, offsets 100% of energy use in US

- Over 3.5 million dollars spend towards nonprofit organizations -Installed solar panels at Visalia plant, provides for 25% of energy use

in support of conservation and recreational access (REI 2010). (The North Face 2010).

SPRING 2010 7

___________________________________________________________________________________________________________________________________________________

Consumer “Outdoor athletes who are engaged in physically challenging - Outdoor sport and nature enthusiasts

Personality activities in the most severe alpine environments.” - Love exploring the great outdoors and getting involved in the

- Extreme sports enthusiast community

___________________________________________________________________________________________________________________________________________________

What sets them - Activity specific garments, ensures freedom of movement - Focus on community involvement, outdoor education, environmental

Apart - Prefers long-lasting quality over eco-friendly gear conservation

- Alpine environment based gear - Advanced Omni-tech products that keep the elements out

- Offers a membership card and collegiate apparel

___________________________________________________________________________________________________________________________________________________

What they Use - Highest performing and most durable materials - Range of Omni technology materials that keep UV rays off, water out,

available body heat in, and cool you down with thermal transfer technology

- Non-organic, Non-renewable resource products - Not committed to organic, some products contain small traces of organics

___________________________________________________________________________________________________________________________________________________

You’ll Find… Limited Availability Widely Available

Two stores in Canada, Online through other retailers Online, worldwide company stores and outlets, other retailers

___________________________________________________________________________________________________________________________________________________

Making the World - Striving to find eco-friendly high quality material - Focus on reducing upstream impact (energy & material usage), and

A Better Place - Recycle all paper waste, use 99.9% recycled paper responsibly managing downstream waste

- Use nonpolluting hydroelectric generating plants - Partner with many organizations including MercyCorp, the Skin Cancer

(ARC’TERYX 2010). Foundation, and the Conservation Alliance (Columbia 2010).

SPRING 2010 8

Target age

Price Range

Stores Advertising

Eco-Friendly

REI 18-30 $$ Many stores, online

Print media outlets

***

Northface 16-35 $$ Some stores, online

Word of mouth

**

Arc’teryx 18-25 $$$ Online, some retail stores

Special events

*

Columbia 20-40 $$ Many stores, outlets and online

Billboards **

Patagonia

18-40 $$$ Mostly online, few stores

Word of mouth

****

9

Brand Comparison Matrix

Eco-friendliness determined by a brand’s efforts to conserve the environment through organic and recycled fabrics, supporting environmental organizations, and reducing their carbon footprint. (On a Scale of 1-5)

SPRING 2010

The competitors use more efficient promotion tactics than Patagonia through special events, billboards, and catalogs.

We have a strong standing brand image in terms of environmental activism and eco-friendly products.

Our company is committed to efforts that better the environment and its inhabitants.

Our brand is just as economically successful as their competitors without spending significant amounts of money on advertising,

We aren’t acquiring new customers in the younger market segment, as their competitors are

In order to create an incentive among returning customers, we should create a reward system as their competitors do.

Patagonia versus Competition

SPRING 2010 10

Promotion objectives

Our company will target the younger generation as a future market segment.

By informing them now since they are the future care takers of our planet and when they settle into their careers, they will be able to afford the products.

Also, by offering a student discount card this will increase the likelihood that the younger segment will purchase our products.

We will utilize all possible media outlets that would effectively target the younger demographic.

The competitor analysis showed that in order to keep the attention of the younger market segment, Patagonia should increase brand awareness and expand accessibility to the product. Based on our primary research, the younger generation were not aware of Patagonia.

SPRING 2010

11

Solutions

• This will be achieved through student discounts, college vendors on college campuses, and special sporting events to attract a younger crowd

• They will also offer a student discount card made of recycled plastic to make affording our products easier

• Our proposed campaign will improve brand familiarity and loyalty among the Generation Y demographic.

The promotion plan will be to increase brand awareness amongst the younger demographic through a period of intense promotion

SPRING 2010 12

It is important to increase brand awareness among the Gen Y demographic because they currently more know about competitors, and are purchasing the types of products that we sell from other retailers instead of us.

Our company is more committed to the environment than any other outdoor brand, and by attracting a younger demographic, we can spread awareness and promote activism among this age group.

When generation Y becomes more economically stable with secure jobs, they will continue to take part in protecting the environment by purchasing the products we sell they once couldn’t afford.

Importance of Generation Y

SPRING 2010 13

Our promotional theme is “Spring for Green”, which will encourage youth to explore the outdoors.

The season will be spring, which is known for rebirth and youth

The green aspect of the theme will inspire environmental awareness in youth by using the color green as a metaphor for conservation as well as that will appeal to them.

The spring aspect of the theme promotes going outdoors and exploring nature and also directly relates to the spring season

The colors for our theme are bright and pastel hues of the colors found in nature, these promote both springtime and nature

Spring for Green

14

Promotion Theme

SPRING 2010 14

Theme Colors

Spring for Green

SPRING 2010 15

Print Media Ad

A “Spring for the…” series of 6 ads highlighting different areas of activities that we sell gear for. Includes fly fishing, hiking, yoga, surfing, and snowboarding.

Command headline urges being physically active, which the body copy has an implied suggestion.

Colloquial language attracts a younger target

Photography makes the ad more realistic and dramatic.

Ads printed on recycled paper which stays true to our core values of

environmentalism.

22SPRING 2010

Encourages the younger generation to be active and become one with nature

Heightens awareness of environmental conservation within the younger generation

Celebrating the arrival of spring.Increases the eco-friendly trend of organic

clothing amongst generation Y by showing that it can be used for outside activities.

Ad Analysis

23SPRING 2010

The Triple Threat Event

April 16 April 17 April 18

Amateur Snowboarding competition@ Lake Tahoe, CA

Trail Running competition@ Yosemite, CA

Surfing competition@ Huntington Beach, CA

Who will be there:

Musical guests include Linkin’ Park, Rise Against, and The Strokes

Patagonia Ambassadors will speak at the event.

Kashi will provide organic refreshments.

The Triple Threat Event is a series of three sporting competitions in a three day span. They will be open to the public to compete.

1st place for each event will win activity-specific gear, 2nd and 3rd places will win Patagonia gift cards

24SPRING 2010

Event Objectives

Encourages young people to be active and be one with the outdoors through fun competition.

Winners will receive Patagonia gift cards to discount and raise awareness about the brand for the younger segment.

We will have an apparel booth where the younger market will be given the opportunity to try and check out Patagonia gear.

25SPRING 2010

Plant a Tree, Get a Tee

Patagonia representatives will be on college campuses nationwide during student’s lunch hours to assist in planting trees.

Open to the public. Each person that plants a tree gets a free organic Patagonia tee.

Will occur April 22nd (Earth Day) from 11 am-1 pm. Whole Foods will cater with organic food. We will also have a booth selling our clothing for those who are

interested after wearing the organic t-shirts.

27SPRING 2010

Event ObjectivesThis is an institutional

event that will enhance the image of our company through a charitable cause.

This event is more about engaging the youth in planet conservation rather than selling clothes.

28SPRING 2010

The Triple Threat Event Scene

30SPRING 2010

Plant a Tree and Triple Threat Scene

31SPRING 2010

Media Kit The recycled cotton bag with the Patagonia logo on the Earth shows

that we put our Earth first. The shirt is an example of the organic cotton shirts that we will be

giving away at the tree planting event. The example of the student discount card will convey to student

newspapers how we are attempting to reach out to their market segment.

The energy saving light bulb helps to conserve our planet. We are including a seed packet to promote the Plant a Tree event.

32SPRING 2010

Media Kit Objective

The media kit will be distributed to Sports Illustrated, ESPN Weekly, Green Living Magazine, and college newspapers.

This will target all the important segments of the market: active, organic, students.

The media will be sent out a month before the sports event to create buzz in advance, and remind media outlets to advertise for our Earth Day event.

33SPRING 2010

The media kit will contribute to the promotional theme by showing it is easy for young people to get involved in conservation efforts.

By advertising in student newspapers, we will prove to students that our organic sportswear can help them in any outdoor activity.

The student discount card will convey that we are committed to their patronage.

Media Kit

34SPRING 2010

27

“We do not inherit the earth from our ancestors, we borrow it from our children.” –Native American Proverb

Words to live by

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Arc'teryx. (n.d.). Arc'teryx. Retrieved March 5, 2010, from http://www.arcteryx.com

Columbia Sportswear Mobile. (n.d.). Columbia Sportswear Mobile. Retrieved March 5, 2010, from http://www.columbia.com

Patagonia Outdoor Clothing, Apparel and Gear for Climbing, Hiking, Surfing, Running, Travel. (n.d.). Patagonia Outdoor Clothing, Apparel and Gear for Climbing, Hiking, Surfing, Running, Travel. Retrieved March 5, 2010, from http://www.patagonia.com

REI - Gear, Equipment and Clothing for a Lifetime of Outdoor Adventure and Stewardship.. (n.d.). REI - Gear, Equipment and Clothing for a Lifetime of Outdoor Adventure and Stewardship.. Retrieved March 5, 2010, from http://www.rei.com

The North Face. (n.d.). The North Face. Retrieved March 1, 2010, from www.thenorthface.com

References