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). Factors influencing clothing interest and purchase intention: a study of Generation Y consumers in Malaysia. The International Review of Retail, Distribution and Consumer Research, 28(2), 174–189.
Global Women Sportswear Market Till 2026 Latest Industry Scenario, Trends, Restrain & Future Forecast | GAP, Hanesbrands, Mizuno Corporation, Adidas, NIKE. (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.
Research and Markets Adds Report: Sportswear Market. (2021). Entertainment Close-up, NA.