Patagonia LOHAS Community Marketing Plan Proposal Heath Ross, Mark Susor, Francis Ukpolo Benedictine University August 18, 2014 Table of Contents Title Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Company Summary, Business Model and Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Product Introduction & Description & Target Market . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Strategic Initiatives (Goals) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Situation Analysis / Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Market Dynamics, patterns, including seasonality, sustainability . . . . . . . . . . . . . . . . . . 11 Customer – demographics, market segment, target markets, needs, buying decisions. . 12 Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Positioning Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Target Market(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Strategic Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Strategies/Tactics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Marketing Program (Marketing Mix) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Place . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Promotion – Internet Marketing Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Pricing, Positioning and Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Financial, Budgets, Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Sales Forecast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Website Presence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Privacy/Security Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Monitor Your Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Product Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Company Summary, Business Model and Strategy Patagonia is a firm unlike any other; its focus is not just about making a profit. Its founder, Yvon Chouinard has created an outdoor and equipment company that looks to make an impact on how we approach consumption and sustainability. Chouinard’s leadership has allowed Patagonia to become an iconic brand that stands for living a better life by taking care of the earth and acting as a moral compass that both companies and consumers can follow. Patagonia, founded in 1972, has utilized its direct-mail catalogs to sell outdoor clothing and equipment, but more importantly to promote the organizations support toward causes like genetically modified food, overfishing, and putting the earth first. What’s makes Patagonia’s message unique is that it voiced these issues when it was not popular to do so; Chouinard let it be known that the earth cannot survive based on today’s consumption practices and there was and is a need to put the earth first and develop a sustainable business model that recycles and reuses materials. (Casey, 2007). In terms of product, “Patagonia has scaled the peak of the outdoor apparel and accessories business. The company designs and markets rugged clothing and accessories to mountain climbers, skiers, surfers, and other extreme sports enthusiasts and environmentalists who are willing to pay for the Patagonia brand and its environmental ethic. Besides its signature Patagonia line (for outdoor gear and apparel), the company also sells items from sister companies Lotus Designs (paddling gear), Water Girl (women's sportswear), and Great Pacific Iron Works (retails outdoor gear and apparel). Patagonia, owned by Lost Arrow Corporation, sells these items, as well as luggage, through specialty retailers, a catalog, website, and its own stores” (Hoover’s, 2014). Patagonia’s uses an environmental differentiation strategy built on a vision of environmental conservation and restoration, and a foundation of values that include quality, integrity, environmentalism, not bound by convention, and Zen philosophy. Patagonia’s mission statement is “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” (Patagonia, 2014). The business model supporting the strategy relies on innovation with its processes, product and services, and business model. Innovation allows the company to create value through operational excellence, customer intimacy, product leadership, and environmental stewardship. Customer perceive value from excellent quality and service, and the good feeling that results from doing business with Patagonia. Patagonia is able to capture value via profits, growth and market share. Patagonia’s new CEO (Chief Executive Officer), Rose Marcario describes this model as follows: “Patagonia is built on the principle of living an examined life and I think that permeates into the company culture. Anything we’re doing, any product that we’re building, we examine the supply chain and look at the impacts of that chain on the environment. We look for ways to innovate so that it has less impact on the environment and that requires a lot of self-reflection. And, I think, the company culture is really built on that principle and the result of that is a better product that people feel better about buying” (Kasperkevic, 2014). Patagonia is launching an organic product line intended to support sustainability within the apparel industry and attract the LOHAS Community consumer; they are the “future of your business and also the future of progressive social, environmental and economic change in this country” (LOHAS, 2014). This particular product line will focus on two of the identified segments with the LOHAS Community; they represent a $52 billion of the $290 billion LOHAS market: Eco Tourism and Natural Lifestyles. The campaign is designed to accomplish two high-level goals. First to grow the organic apparel line within Patagonia’s product and service portfolio, and two, to develop a relationship with the LOHAS Community that can be leveraged to promote sustainability and increase social change philanthropy. By 2014, Patagonia’s organic apparel intends to capture $52 million of the LOHAS Community Eco Tourism and Natural Lifestyle consumer spend in 2014 in the US. Moreover, the Patagonia’s organic apparel will sell $104 million of organic cotton apparel in 2015, $156 in 2016 and $208 in 2017. The website traffic sources will measure promotional activities to ensure efforts are directed toward websites with the highest response rates. For instance, we will obtain Patagonia organic cotton apparel and LOHAS Community as a Google level one category hits for 90% of all users that search for designated tags. Such strategy will ensure Patagonia’s exposure to a large audience base in the US LOHAS Community. The fourth metric will monitor web traffic by state and the goal will be to obtain a 10% conversion in each state versus total clicks. Our strategy and tactics include monitoring sales trends and effectiveness of the marketing campaign on a weekly basis. Furthermore, by incorporating Patagonia organic cotton apparel success stories into online marketing programs, Patagonia will achieve consistent development monthly. Additionally, Patagonia will work closely with Google to attain advertising space, gain level one category hits for Patagonia organic cotton apparel or LOHAS Community, and offer various types of incentives to attract customers. And finally, Patagonia will work with Social Media channels by contributing inducements. Patagonia organic cotton apparel is expected to capture a significant portion of the LOHAS Eco Tourism and Natural Lifestyle market. Its break-even chart indicates 249,091 units sold would be required to breakeven and the product’s 2014 sales forecast surpasses this with a target of 472,727 providing a profit of $16.6 million. Patagonia’s ability to significantly improve customer satisfaction by providing organic cotton products that protect and sustain the environment, while enhancing the consumers outdoor lifestyle separates it from everything else currently available in the market! However, in addition to that, Patagonia’s ability to provide a platform for social philanthropy is really what will blow the competition out of the water! Depending on its wearer, Patagonia’s organic cotton apparel will enrich eco travel, augment natural lifestyles and enrich the feeling provided by taking concrete steps to sustain the environment, protect the earth, and most importantly facilitate a living a healthier lifestyle. Situation Analysis / Market Research Market dynamics, patterns including seasonality, sustainability The Market dynamics represented by the organic cotton retail segment is best described by worldwide double digit growth with tremendous opportunities to expand and leverage a consumer that is looking for products that are sustainable and whose manufacturing processes protect the environment. According to the 2012 and Preliminary 2013 U.S. Organic Cotton Production & Marketing Trends: The number of facilities becoming certified to GOTS [Global Organic Textile Standard] increased 11 percent to surpass the 3000 mark in 2012, growing from 2,714 facilities in 2011 to 3,016 facilities in 2012, according to the GOTS International Working Group. The U.S. ranks 13th with the number of GOTS-certified facilities increasing from 40 to 44 facilities from 2011-2012. The increased adoption of GOTS is in part the result of rising awareness of U.S. organic textile policy which requires companies claiming their organic fiber products are “organic” to be certified either to GOTS or the U.S. Department of Agriculture National Organic Program’s standards. GLOBAL SUPPLY AND DEMAND According to Textile Exchange, approximately 637,563 bales of organic cotton were produced on 783,094 acres around the globe in 2011-2012. India grew the most, followed by (in order of rank) Turkey, China, Tanzania, the United States, Mali, Peru, Uganda, Egypt, and Burkina Faso. However, the organization notes that due to the conflict in Syria (which typically ranks second or third in world organic cotton production), no figures were available for that nation. Textile Exchange reports that nearly three quarters of the world’s organic cotton is produced in India, with just over 11% coming from Turkey, about 6% from China, 5% from Tanzania. The U.S. produces just over 1% of the global supply of organic cotton, with all other countries producing less than a percent of the total supply. GROWTH CONSTRAINTS The weather conditions affecting supply are discussed above. However, there are additional factors limiting the supply of U.S. organic cotton at this time. The primary constraint for domestic cotton production in the U.S. is the particular combination of weather and geographical conditions necessary to make this crop thrive. The area must receive enough rain to germinate the cotton, but not so much as to create undue weed pressure. Once sprouted, cotton prefers warm, dry weather during its relatively long growing season. Organic cotton requires a killing frost to defoliate the plant prior to harvest. These periods of deep cold also help to keep pest pressure to a minimum in organic cotton fields. These conditions describe a relatively limited geography in the U.S., and as noted in this report and others, annual weather conditions must cooperate for the crop to succeed. Lack of commercial availability of organic seeds is a major factor inhibiting the growth of U.S. organic cotton. Growing cotton organically also involves overcoming pressures faced by all cotton farmers, but made more difficult by the constraints of the organic regulations. These pressures include weeds, drought conditions and the presence of common pests such as the boll weevil. Compounding these difficulties, little work is being done to improve cottonseed through traditional breeding techniques. 2012 and Preliminary 2013 U.S. Organic Cotton Production & Marketing Trends A final, less tangible, constraint to organic cotton production in the U.S. is the culture among farmers. In areas where organic farming is established and somewhat successful, it can be easier for organic farmers to coexist with conventional neighbors. In predominantly conventionally-farmed regions, organic growers can face skepticism and pressure from neighbors, family members and suppliers. AREAS OF OPPORTUNITY U.S. organic cotton growers responded that they could further benefit from the development of the following resources: 1. Marketing efforts to increase consumer demand for U.S.-grown organic cotton 2. Market development to encourage better gate pricing 3. Improved awareness of GOTS label within the U.S. market 4. Agricultural advances to assist with weed control 5. Continued improvements to crop insurance 6. Cotton seed varieties better suited to growing conditions 7. Streamlined administrative process for the organic grower 8. Tax credits, certification cost share and other financial incentives to encourage organic production (Organic Trade Association, 2014) The good news is that Patagonia should see a reduction in organic cotton prices as future economies of scale are achieved in the marketplace. At the same time, more and more retailers are moving toward organic cotton as part of their product portfolio to ensure they meet the demands of an environmentally conscious consumer. This will lead to a more competitive marketplace for Patagonia and dictate an evolving marketing plan that leverages Patagonia’s leadership in sustainability. Customers – demographics, market segments, target markets, needs, buying decisions According to Chouinard, although Patagonia’s clothing sales are robust, Patagonia exists not only to make money, but to “prove that it’s possible to do the right thing for the planet and still make a profit. After all, there is no business to be done on a dead planet.” In 1996, Patagonia introduced an organic cotton line to their spring collection with three goals in mind; to sell the line successfully, to influence the rest of the apparel industry to use organic cotton, and to encourage growth in organic cotton farming. The quality of organic cotton is not only equal to or better than conventionally grown cotton, its methods support biodiversity and healthy ecosystems, improves the quality of soil and often uses less water. However, growing cotton organically takes more time, requires more knowledge and skill, and, incurs high costs. . Following the recession in 2007, Patagonia partnered with EBay to introduce their second green initiative: The Patagonia Common Threads Partnership. The Common Threads Partnership Store brings together pre-owned clothing from Patagonia, maker of durable, high-quality outdoor apparel, and eBay, the world's largest marketplace. This storefront is the first time a retail brand has worked with eBay to encourage customers to buy and sell their used products. Patagonia’s Organic Cotton line will focus on our higher-end consumers. Our target market will be males and females between the age range of 35 – 54, with an income level of $100,000/year and above. According to Nielsen’s PRIZM segmentation, this group would be classified as the “Winner’s Circle”. They are the wealthy suburbanites who are big spenders who like to travel, ski, and engage in outdoors activities. The price point for organic cotton is high due to manufacturing cost, and we feel this product would speak best to consumers who have flexibility in their spending. Customers from the ‘Winner’s Circle’ demographic enjoy outdoors activities, and they need quality apparel that are designed to fit their lifestyle. In order to meet those needs, Patagonia will promote its outdoors apparel to this demographic; with the goal of communicating the quality and durability of our product to this group. The demographic for the Common Threads Partnership with eBay, will primarily focus on low-mid level income consumers ranging from age 25-44. Nielsen’s PRIZM classifies this group as the “Shotguns & Pickups”. People from this demographic tend to be working-class with large family households; they live in small homes in rural areas and are ethnically diversity. Consumers from the ‘Shotgun & Pickups’ demographic need low cost solutions, in order to meet their needs. We will offer free shipping on Patagonia’s website as well as offer a wide range of overstocked items for a discounted price. Product Established in 1972, Patagonia is an outdoor-clothing company known for its green business model and innovative clothing designs. Under the leadership of its founder and resident philosopher, Yvon Chouinard, Patagonia has grown from humble beginnings to a $414 million enterprise. The Patagonia organic cotton line relates to the LOHAS (Lifestyles of Health and Sustainability) market by altering their products to fit the standards set by the LOHAS Community which are to offer products that are organic, not harmful to the environment, fair-trade certified, energy-efficient, and eco-friendly. The organic cotton line was introduced in 1996 with three goals in mind, to sell the line successfully, to influence the rest of the apparel industry to use organic cotton, and to encourage growth in organic cotton farming. The quality of organic cotton is equal to or better than conventionally grown cotton, yet organically grown methods support biodiversity and healthy ecosystems, improve the quality of soil and often use less water. Growing organically takes more time, requires more knowledge and skill, and, for now, costs more. The LOHAS market community currently use other organic cotton apparel offered by competitors like Columbia and North Face, etc. Customers often fall victim to green washing by major brands, but Patagonia plans to actually give customers the ability to contribute to the company’s vision of environmental sustainability by encouraging customers to reduce waste, and recycle rather than purchase new product. Patagonia has done so by lunching a green initiative called the Patagonia Common Threads Partnership with eBay. The Common Threads Partnership store brings together pre-owned clothing from Patagonia, maker of durable, high-quality outdoors apparel, and eBay, the world's largest marketplace. This storefront is the first time a retail brand has worked with eBay to encourage customers to buy and sell used products. Going green and being more sustainable is a common trend in today’s world that consumers are aware of. The target market for Patagonia focuses on the LOHAS Community “Personal Health” and “Natural Lifestyles” market segments. Patagonia’s organic products will best serve individuals from the following demographic: • Male & Female, Ages 25 – 55 • Income level $50,000+ • Lifestyle: Active, Adventurous, Outdoors/Nature savvy, interested in Natural, organic products, shops at Whole Foods or organic grocery store, social change philanthropy. SWOT Analysis Patagonia’s organic cotton apparel line for the LOHAS Community is entering its first year of production.  The product has been well received and marketing will be key in the development of the brand, product awareness as well as grow the customer base.  Patagonia’s Organic Cotton Apparel offers several benefits such as serving the growing social consciousness around the environment while providing quality outdoor wear for the natural lifestyle enthusiast. Strengths Top quality and long lasting products Environmental friendly Leaders in ethical business practice Strong brand presence Weaknesses Expensive product line due to high quality and manufacturing process. No loyalty programs. Limited models, styling, and outdated trends compared to competitors Opportunities Introduce more models Keep up with newest trends Ship to more countries Increase brand awareness Threats Competition from more popular brands (Columbia Sgm, North Face) Positioning Statement The positioning statement for Patagonia in the LOHAS Community North American market is: “For the sustainability conscious consumer, Patagonia Organic Cotton and Common Threads program will manufacture high quality, functional apparel in a manner that is environmentally aware and recyclable. Patagonia Organic Cotton and Common Threads program is designed to do less harm to our planet, while still offering our consumers the same great quality that they have become accustomed to. Our organic cotton line of products promises to not only meet the users expectation, but to exceed it while at the same time helping you contribute to the sustainability of our planets resources.” Competition The competition in the multi-billion dollar industry of outdoor apparel and gear is very high. There are the large well-known brands such as The North Face, Columbia, Champion, and Ellesse, and then there are the lesser known brands such as Helly Hansen, Mammut, and others. All of these companies account for a share of the market. For the purposes of this marketing campaign the companies that Patagonia will be matched up against are The North Face, Columbia, and Recreational Equipment Incorporated (REI). First, it’s important to understand who our competition is and what they offer, as well as how they differ from Patagonia. The North Face The North Face brand has been around since 1966 when it started out in San Francisco as a store front selling high-end ski and camping gear (The North Face, 2014). While their beginning is somewhat like that of Patagonia, in that they started out as single location shops created by an outdoors enthusiast, their current makeup is very different. The North Face went on to be bought out by VF Enterprises, the same apparel giant that owns Wrangler and Lee jeans, Nautica, JanSport, Timberland, and a bunch of other apparel brands. Another important similarity between North Face and Patagonia is that they are both very active in the LOHAS community with their sustainability efforts in product manufacturing and their supply chain. They both have a commitment to conservation as evident in their co-creation of the Conservative Alliance in 1989 along with REI and Kelty. While Patagonia has the Common Threads Partnership that focuses on the concept of reduce, repair, reuse, and recycle, The North Face has their Clothes the Loop program. Both programs involve recycling by encouraging the consumer to deposit their old gear in recycling bins located at the stores. Where these two differ at is their corporate structure and the freedom or constraints that they contain. With The North Face, because they are part of a publicly traded company they have stockholders and a parent company to answer to. This type of structure can keep a company from taking more risks, it can also delay their ability to make major operational changes. On the other hand with Patagonia being a privately held company they have a bit more freedom and less red tape to go through for decisions regarding major operational changes such as converting to using only organic cotton. It’s this type of freedom and flexibility that has allowed Patagonia to become a leader and innovator in creating sustainable outdoor apparel. Columbia Sportswear Columbia Sportswear is a company that started out small in 1938 when Paul and Marie Lamfrom bought a small hat company and changed the name to Columbia Hat Company. Like The North Face they are also currently a publicly traded company, however unlike North Face, they were not bought out by a larger company. In fact Columbia was the one doing the buying out when they bought Sorel Footwear in 2000, and then Montrail Footwear and Pacific Trail clothing in 2006 (Columbia Sportswear, 2014). Currently the company is chaired by Gert Boyle, daughter of the founders, and her son Tim Boyle serving as the president and CEO. While Columbia does have sustainability policies, such as using water-based adhesives for footwear, recycling polyester, and a synthetic fabric dying process, most of their activity seems to be focused on sustainability in their operational facilities. They reuse boxes for shipping, installed energy management systems at one of their distribution centers, promote green office practices, and use renewable energy at their headquarters. While all good steps toward sustainability, they do not appear to be as committed or have as widespread practices as Patagonia. Recreational Equipment Inc. (REI) REI started up in 1938 by Lloyd and Mary Anderson as a co-op that brought in a group of climbers to share gear and equipment. It wasn’t until 1956 that they actually became known as REI and incorporated as a non-profit consumers’ cooperative (REI, 2014). They are also one of the members of the Conservative Alliance with Patagonia. Like Patagonia, The North Face, and Columbia Sportswear the founders were avid outdoors people. However, there are some major differences between Patagonia and REI. Unlike any of the others discussed, REI’s business structure is different in that people can buy a membership for $20 and that makes them a member of the cooperative. The membership entitles them to refunds each year based on what they spent that year at REI. Another major differentiation between REI and Patagonia is that REI is more of a retailer than manufacturer. They actually purchase the vast majority of their products from a variety of wholesale vendors. The problem with this is that they actually have less control over the sustainability practices of those vendors and their supply chain, than if they manufactured the products themselves. This is a major disadvantage when placed against Patagonia and marketed to the LOHAS community. Each of these three other companies have some operational structure differences which can affect the timeliness of decisions as well as the magnitude. However, what might be the biggest difference between Patagonia and the competition is that Patagonia doesn’t just sell the idea of sustainability, but they live and breathe it as a company. They encourage this lifestyle for their employees, and sustainability is always a consideration when making product decisions even if it will cost the company a little more. Competitor 1 – Columbia Sportswear Company with small beginnings like Patagonia Uses a restricted substances list with suppliers Recycled polyester apparel is biggest sustainability focused product line Uses technology that is more environmental friendly such as Techlite, water-based adhesives, and perimeter stitch technology Price point- N/A - Does not carry organic cotton products Competitor 2 – REI Not-for profit structure, membership based Does not really manufacture their own products, but instead sells other vendor’s products including Patagonia Minimal control over manufacturing standards, and product sustainability contribution Price point – t-shirts/shirts $20-$60, skirts/dresses - $25-$60, pants - $50-$100, shorts - $30-$55, hoodies - $40-$95 Competitor 3 – The North Face Beginning is very similar to Patagonia Closest corporate environment in comparison to Patagonia Two biggest initiatives are the Close the Loop apparel recycling program, and Responsible Down Standard program Co-member with Patagonia in the Conservative Alliance, also very active in other coalitions focused on sustainability Only has small selection of organic cotton products (t-shirts) Price point - $25 Target Market(s) The target market will focus on two segments of the LOHAS (Lifestyles of Health and Sustainability) Community. The LOHAS Community consists of 13 to 16 percent of the U.S. (United States) adult population which is approximately 215 million. Research shows that one in four adult Americans is part of this group—nearly 41 million people. “These consumers are the future of your business and also the future of progressive social, environmental and economic change in this country. But their power as a consumer market remains virtually untapped. The industry that serves these consumers has been identified in a research report by The Natural Marketing Institute and given the moniker of Lifestyles of Health and Sustainability, or LOHAS—a market conservatively estimated at $290 billion in the U.S., and growing. Cultural Creatives are the basis of the LOHAS market. LOHAS is not a sexy acronym, but one that we think aptly describes what this movement, and our mission, is all about” (Lohas, 2010). Within the LOHAS $290 billion market there are six segments; Personal Health, Green Build, Eco Tourism, Natural Lifestyles, Alternative Transportation, and Alternative Energy. Our marketing program will target the Eco Tourism and Natural Lifestyles segments which makes up $52 billion of the LOHAS market. The two segments consist of tourism travel, adventure travel, apparel, social change philanthropy, indoor/outdoor furnishings, organic cleaning supplies, and compact fluorescent lights. The integrated marketing campaign will focus on acquisition and conversion of LOHAS members building on the existing Patagonia environmental differentiation strategy. Patagonia’s outdoor apparel will positioned to emphasize the innovative processes, products, services, and business model used to create value for their customers. The campaign will incorporate reduce, reuse, repair, and recycle tactics used in Patagonia’s “Product Lifestyle Initiative which represents a holistic commitment to lengthen the lifecycle of each product and reduce landfill waste” (Mahlich & Schneider, 2013). Table 1 Target market overview – (Target Market, Basis of Segmentation, Segmentation Variables, and Breakdown) Target Market Basis of Segmentation Segmentation Variables Breakdown Primary Psychographic *LOHAS *Naturalites *Drifters *Conventionals *Unconcerned *Natural Lifestyle *Early Adopters, attitudinal & behavioral dynamics *Predictors of upcoming trends *Environmentally conscious *Sustainability *Socially responsible and/or healthier Secondary Behavioral *Direct Marketing *Product features *Environmentalist *Awareness/Intentions *Less Price Sensitive*More Brand Loyal *Ethical Consumption *Driven by Durables *Fiscally Responsible Product*Environmentally Friendly Products (French & Rogers, 2010) Strategic Initiatives (Goals) The following strategic initiatives have been established to ensure a successful product launch: To generate organic cotton retail sales of $52 million during 2014 in the North American LOHAS Community. Focusing on top line revenue allows the organization to directly impact the bottom line profitability and ensure a successful product launch. The $52 million in sales will generate from the LOHAS Community Eco Tourism and Natural Lifestyle market segments in 2014, $104 in 2015, $156 in 2016, and $208 in 2017. The primary reason for selecting sales revenue as a key metric to measure the product launch is to ensure a business performance metric that represents the customer relationship established with the LOHAS Community. To generate $520,000 or 1 percent of revenue from the LOHAS Community in socially responsible donations to Patagonia’ grassroots environmental organizations. The goal is to increase these LOHAS Community donations to $1,040,000 in 2015, $1,560,000 in 2016, and $2,080,000 in 2017. North American Website traffic sources will measure promotional activities to ensure efforts are directed toward websites with the highest response rates. The goal will be to obtain Patagonia organic cotton and LOHAS as Google level one category hits for 90% of all users that type in the following search tags: “Organic Cotton,” “LOHAS,” “Natural Lifestyle,” “Eco Tourism,” etc. As part of this tracking we will monitor several website sources: organic search, referrals, social media, email marketing, paid search, direct traffic, and other campaigns. Of the aforementioned types of website sources, organic search, social media and direct traffic will be utilized for the Patagonia organic cotton apparel. Organic search traffic typically means the “amount of traffic that came to your site via someone who found your site using a search engine.” Today consumers utilize Google, Bing and referral sites like Facebook, Twitter and LinkedIn to stay connected electronically. Patagonia organic cotton apparel will provide another method for family, friends and environmentalist to connect via the LOHAS Community. Leveraging these social connections will be a key tool in the promotion of Patagonia organic cotton apparel to the LOHAS Community market. For instance, Patagonia organic cotton apparel will be listed on information pages on social media websites such as Facebook and Google+ and tracked accordingly based on consumer interests, such as “Like” or “+1”. “When someone finds your site via a link on a social network, they'll be bucketed under social media as a traffic source” (Eridon, 2013). Furthermore, the last type of website sources that is tracked is direct traffic. “Direct traffic refers to traffic you receive to your website that doesn't come through any other channel. So, when you type www.hubspot.com into your search bar and hit 'Enter,' you're accessing HubSpot.com via direct traffic. If someone posted a link to www.hubspot.com on Facebook, however, and you clicked on that link, your visit would be bucketed in HubSpot.com's social media sources” (Eridon, 2013). During product launch it will be critical to assess where traffic is originating in order to ensure promotional activities are properly aligned and producing the desired traffic. Traffic data will be used to measure response rates and allow for near real time adjustments to advertising and direct marketing resources. The fourth metric will monitor web traffic by state and the goal will be to obtain a 10% conversion in each state versus total clicks. This will provide another key monitoring metric during product launch that will key in on social media. Monitor website visits state by state via the Internet Traffic Monitoring System (I-TMS) (I-TMS, n.d.). I-TMS is valuable in determining which states gauge the most interest in the Patagonia organic cotton apparel. Accordingly, such information will be utilized in order further strategize and develop continual improvements to the marketing campaign as a value-added proposition. Moreover, such data will be valuable to discontinue selling the Patagonia organic cotton apparel to states that have little or no interest in the product. (Hartley, Kerin & Rudelius, 2013) All of the above methods shall be displayed onto a marketing dashboard. Monthly website visits by state to measure consumer response to promotional activities associated with the Patagonia organic cotton apparel LOHAS Community product line launch. Marketing Strategies/Tactics Goal #1: To capture $52 million in Patagonia Organic Cotton Apparel sales from the LOHAS Community during 2014 in the North American market. To obtain $52 million of Patagonia Organic Cotton Apparel sales in 2014, $104 in 2015, $156 in 2016, and $208 in 2017. Strategy: To monitor sales trends and marketing effectiveness monthly, adjusting our strategy accordingly. Tactics: Rigorously execute and monitor progress of all aforementioned LOHAS Eco Tourism and Natural Lifestyle marketing initiatives weekly. “Winner’s Circle” segment. To execute and monitor Common Threads Partnership with eBay. “Shotguns & Pickup” segment. Increase brand awareness, drive traffic to Patagonia website, and increase customer loyalty while attracting new customers. Goal #2: • To generate $520,000 or 1 percent of revenue from the LOHAS Community in socially responsible donations to Patagonia’ grassroots environmental organizations. The goal is to increase these LOHAS Community donations to $1,040,000 in 2015, $1,560,000 in 2016, and $2,080,000 in 2017. Strategy: To show consistent growth per month with LOHAS Community customer base by generating donations toward Patagonia’s grassroots environmental organizations. Tactics: Increase traffic to Patagonia’s website through various internet-based marketing such as SEO, PPC, Email Marketing, Social Media, Blogging, CRM/Loyalty Programs and Affiliate Marketing. Execute aggressive advertising campaigns in states with a higher percentage of click-through behavior. Incorporate Patagonia Organic Cotton Apparel success stories into online marketing programs. Goal #3: To obtain Patagonia Organic Cotton and LOHAS as Google level one category hits for 90% of all users that type in the following search tags: “Organic Cotton,” “LOHAS,” “Natural Lifestyle,” “Eco Tourism,” etc. Strategy: To convince Google of the environmental benefits of Patagonia’s Organic Cotton Apparel and establish an effective advertising partnership. Tactics: Provide Google with advertising space on Patagonia.com Work with Google executives monthly in order to research and expand search tags that will provide Level One Category hits for Patagonia Organic Cotton Apparel or LOHAS Community. Offer varying week-to-week incentives for consumers that visit website (i.e. % off product price, Eco T-shirt, water bottle, etc.) Goal #4: To obtain a 10% conversion in each state versus total clicks. Strategy: To adjust and re-direct marketing campaign accordingly in order to ensure appropriate exposure in each state. Tactics: Set up peak-hour infomercials in struggling states. Offer incentives for social media channels to discuss the benefits Patagonia Organic Cotton Apparel and the website incentives being offered. Increase the number of peak-hour local channel commercials based on tracked website traffic patterns per state. Marketing Program (Marketing Mix) Product In order to best serve our target market in the LOHAS community, Patagonia will focus on its organic cotton line as it fits the lifestyle, needs and ethical beliefs of the ‘natural lifestyles’ target market. Patagonia is a leader in social corporate responsibility and we believe that the organic cotton line has the ability to become increasingly more sustainable, and appeal to those who live a green lifestyle. Looking beyond the current needs of our target market, we believe our target market needs to feel more involved in social responsibility which is why Patagonia will launch a program that helps customers donate to underserved communities through our website. Patagonia will also be involved and offer apparel from the organic cotton line as well as engage customers in its Common Threads Partnership with eBay. These products will be geared to attract customers from our targeted market. Place Patagonia organic cotton will be made available Patagonia.com, as well as affiliate websites such as amazon.com, and ebay.com. The Patagonia organic cotton apparel may be purchased online and at retail stores. However, this premium product will be limited to only certain websites and retail stores in order to preserve its authenticity. Accordingly, the best place to check for current product releases and authentic Patagonia organic cotton apparel: Patagonia.com. Therefore, since online Patagonia website contains the latest and greatest organic cotton apparel, it will also contain the LOHAS Community line for purchase. Additionally, other reliable websites with excellent customer service that will be capable of selling the Patagonia include: Amazon.com, Zappos.com, and Ebay.com. (Stimpert, n.d.). Promotion – Internet Marketing Strategies Various internet-based marketing tools such as SEO, PPC, Email Marketing, Social Media, Blogging, CRM/Loyalty Programs and Affiliate Marketing would be used. Our goals are to increase brand awareness, drive traffic to Patagonia’s website, increase customer loyalty while attracting new customers and to increase sales on Organic Cotton Apparel and Patagonia’s Common Thread Partnership with eBay. One of our strategies to increase customer loyalty is to launch a program When a customer purchases a product from our website, they will accumulate points which could be donated to organizations supported by Patagonia or if the customer choses the accumulated points could be used towards a purchase. Not only does this strategy improve our Customer Relationship Management, but it also helps differentiate Patagonia from its competition. A series of email newsletters will be sent to Patagonia’s listserv on a regular basis to highlight new products, new initiatives, stories that inspire social change philanthropy, etc. For instance the screenshot below shows a sample email to communicate our buy one, give one program. Social media channels would also be used to strengthen Patagonia’s brand, and to engage/interact with our audience. The image above is a great example of how Patagonia will increase awareness of the brand by focusing on the durability of its product while promoting sustainability and corporate citizenship. A final example would be communicating through Patagonia’s blogs like http://wornwear.patagonia.com, which focuses on the lifestyle of the consumers, being sustainable, and telling stories that reflect the beliefs on the brand and the LOHAS community. 1. Advertising: We are going to place ads on Google, LOHAS and eBay Websites and Facebook social media platforms to touch our environmentally conscious and natural lifestyle consumer base. In addition, ads will also be placed in travel magazines, available on retail shelves and doctor’s offices, to reach our consumer base with a social conscious that Patagonia’s organic cotton apparel can significantly improve the environment and their natural lifestyle. 2. Advertising: On Patagonia’s Organic Cotton Apparel line launch date, we are going to have large in-store displays and signage at all Patagonia retailers. These in-store displays will be located at the appropriate department located closest to the front of the store’s entrance and/or near a front end point of sale. 3. Advertising: Patagonia’s commercials will be running prime time on all major networks. In addition, evening commercials also be running on sports and health education channels (i.e. Travel Channel, Discovery Health Channel, etc.). These commercials will quickly reach a large portion of our consumer base, as well as generate national interest and awareness. 4. Public Relations: We are going to publish newspaper and magazine articles that detail organic cotton apparel benefits and highlight the positive effects that utilizing it will have on a consumer’s natural lifestyle and its impact on sustainability. In addition, articles published in general travel and health magazines will expand on the benefits that Patagonia’s Organic Cotton Apparel provides in order to improve their natural lifestyle and reduce risks to the planet. 5. Direct Marketing: A couple of months prior to the Patagonia’s Organic Cotton Apparel LOHAS Community product line release date, a banner will be available on Patagonia’s website, which will allow users to sign up for text messages and/or e-mails that will provide them with detailed product and application updates leading up to and after the release date. In addition, a month prior to the release date, consumers will be able to reserve and pre-order Organic Cotton Apparel and obtain a 10% off discount for doing so. Pricing, Positioning & Branding The pricing of the Patagonia Organic Apparel is based on the fact that it is a revolutionary and innovative product line that is differentiated from the competition by its unique materials and manufacturing processes. Patagonia’s organic cotton apparel line will provide each consumer quality outdoor garments that supports their lifestyle and love for the planet. For these reasons Patagonia’s organic cotton product will demand a premium in the market place and its price will send a message of quality. On average when looking at coats, pants, and shirts; apparel will average $110 per unit. Currently the competition offers cotton products ranging from $25 to $100, but these units fail to offer the sustainable benefits of the Patagonia apparel. The Patagonia organic cotton apparel premium price will also signal to consumers that this particular product line represents the social consciousness of the LOHAS Community and their focus on helping to sustain the environment in everything they do. Patagonia’s organic cotton apparel will provide a way to connect with the LOHAS Community and allow family, friends, and environmentalists to connect and share the Patagonia story through their Facebook, Twitter and LinkedIn social media platforms. Patagonia’s price while significantly higher than the competition, offers more than cotton apparel, it offers customers a natural lifestyle with a product manufactured using a process that sustains the environment. Financial Overview This section will offer a financial overview of the Patagonia Organic Apparel LOHAS Community as it relates to the marketing activities.  LOHAS Community break-even chart indicates 284,091 units would need to be sold in order to breakeven. The 2014 sales forecast surpasses this with a target of 472,727 units which will provide a profit of $16.6 million. The following financials will provide expense forecast for promotional activities and sales forecasts for the first three years of production. The financials indicate an aggressive growth plan that looks to capture sales revenue of $208 million in the targeted LOHAS Community market by year three (2017). The total Global Organic Cotton market in 2017 is projected to be worth $39.9 billion. The following break-even chart outlines estimated fixed and variable cost at various production levels and indicates a break-even point of 284,091 units. Fixed costs will consist primarily of building rent, real estate, property tax, depreciation (plant and equipment), administrative and executive salaries, interest and insurance. Variable costs will include direct labor and materials used in production, shipping costs and supplies. Variable costs will also include sales commissions tied directly to the quantity of organic cotton apparel sold. (Hartley, Kerin & Rudelius, 2013, p. 334). Break-even Chart Table 2 Patagonia LOHAS Community Breakeven Analysis (Quantity, Price, Total Revenue, Unit Variable Cost, Total Variable Cost, Fixed Cost, Total Cost, Profit) Quantity of Organic Units Sold Average Price per Unit Sold Total Revenue (TR) = (P x Q)ᵃ Unit Variable Cost (UVC) Total Variable Cost (VC) = (UVC x Q)ᵃ Fixed Cost (FC)ᵃ Total Cost (TC) = (FC + VC)ᵃ Profit = (TR – TC)ᵃ 0 $110 $0.0 $22 $0 $25 $25.0 -$25.0 200,000 $110 $22.0 $22 $44.0 $25 $29.4 -$7.4 284,091 $110 $31.25 $22 $62.5 $25 $31.25 $0.0 400,000 $110 $44.0 $22 $88.0 $25 $33.8 $10.2 600,000 $110 $66.0 $22 $132.0 $25 $38.2 $27.8 800,000 $110 $88.0 $22 $176.0 $25 $42.6 $45.4 1,000,000 $110 $110.0 $22 $220.0 $25 $47.0 $63.0 1,200,000 $110 $132.0 $22 $264.0 $25 $51.4 $80.6 Note. ᵃAll figures in millions. Expense Forecast Social media. Facebook offers several different types of advertising options. We will be using the cost per action. With this option, Facebook will show our ad to the people that are most likely to click on it. We will be able to track exactly how many people click on our ad. We will only be charged when someone actually clicks the ad that takes them to our webpage. It will also give us the ability to track conversion. The fee for this type of service is a bidding format. Therefore, we must bid higher than our competitors who are trying to reach the same audience. The recommended bid for this type of service is $2.50 per 1000 clicks. Facebook has a total of 1.23 billion users. We are looking for a 10% conversion rate. In other words, we are aiming for 10% of the viewers to actually purchase our product. We will need to reach 7,250,000 viewers. At $2.50 per 1000, it will cost us $18,125. Advertising. We will be placing display ads in the following online channel: Google. In order to attain 3,000 plus clicks per day and 520,000 plus impressions per day we will budget $2,000 per day for the Google Search and Display Networks. Therefore, it will be $ 30,000 per month and we will be running the ads for 90 days prior to the release. Sales Forecast Table 3 Patagonia LOHAS Community Organic Apparel Sales Forecast (Total Global Organic Cotton Retail Market Size, Projected Sales Revenue, Projected Units Sold) Year Total Global Organic Cotton Retail Market Sizeᵃ Projected US LOHAS Sales Revenueᵇ Projected LOHAS US Units Soldᶜ 2014 $16.2 $52.0 .473 2015 $21.9 $104.0 .945 2016 $29.6 $156.0 1.418 2017 $39.9 $208.0 1.891 Note. ᵃAll figures in billions. ᵇAll figures in millions. ᶜAll figures in thousands. Website Presence Currently Patagonia’s product page on the website does not use best practices to enhance the user experience. As part of our strategy to increase sales, we will redesign the product page on the website to enhance the user experience, and optimize it for search engines by including product descriptions, keywords, and YouTube videos which has been proven to improve SEO. For instance, the screenshot below shows a new approach to the product page, on this page the customer can clearly see pictures of the product they wish to purchase, and they can learn more about the product by clicking on the icon which allows the user to read more about the product or what a demo video about the product. Studies have shown that users are 64% more like to buy a product online after watching product demo. Another strategy we plan to use to enhance our website presence, and increase sales is to use pay-pay-click advertising. Since ours target market loves the outdoors we will sponsor ads on websites like the National Geographic. For instance the mock-up below shows an article about the top 10 mountains to climb, this is a great opportunity for Patagonia to advertise its mountain gear in the designated area of the page and as a result increase web traffic. Privacy / Security Patagonia plans to follow the Fair Information Practice Principles, Patagonia currently states on its website what information is being collected and how the information is being used. We plan to continue collecting information to be used for marketing purposes and we will provide our customers with the option to opt out from marketing communications. We will not sell or make customer information available to third parties and we will ensure the privacy of customers information by acquiring an SSL certificate which will encrypt information sent to our servers in the event that our website is hacked. This certificate is necessary in order to protect sensitive customer information such as credit card numbers, name and address, etc. Monitor Your Results Our goals for our marketing strategy is to increase web traffic, increase sales, increase brand awareness, and improve customer loyalty. To ensure that we are successful in our goals, we will carefully monitor our results on a monthly basis using web analytics tools such as Google Analytics, and Omniture. Some of the key success metrics we plan to focus on is web visits, channels of acquisition which will provide insights as to what digital marketing channels are most effective, keywords, and the performance of our paid ads. The conversion rate of our paid ads would be the most effective metric as it provides real insight to our return on equity. Product Evaluation Product Evaluation #1: To track the effectiveness of each infomercial by state, viewers will be offered an incentive for completing a survey (see Table 4, appendix) sent to their mobile device. While the infomercial is playing on their local television channel, a banner will appear on the bottom of the screen for consumers to receive a free Patagonia T-shirt simply by completing a quick infomercial survey. Consumers will be asked to text “LOHAS” to a specific number, tied to the state and channel on which the infomercial was viewed, and in response, they will receive a link to the online survey, receiving their free water bottle upon completion. Product Evaluation #2: For the Patagonia Organic Cotton Apparel product/service evaluations, we will conduct a post-test survey (see Table 5, appendix) to determine product gratification to the consumer. Every Patagonia Organic Cotton product comes with an organic product certification that has a survey web-link for consumers to provide their feedback. The survey must be completed and submitted within a month after purchase. Hence, this information will be requested for input by the user prior to proceeding with the survey. Accordingly, as an incentive to complete the survey, all consumers that take the survey get entered into a drawing to win a free Eco Travel weekend that they may can enjoy with their family and/or friends. Product Evaluation #3: We will implement two monthly marketing meetings for three consecutive months prior to the Patagonia Organic Cotton Apparel – LOHAS Community release in order to solicit consumer feedback around marketing initiatives. During these meetings, consumers will be asked a how they heard about Patagonia’s Organic Cotton Apparel (online advertisement, website banner, TV commercial, infomercial, word of mouth, etc.) and a series of questions regarding Patagonia’s marketing initiatives in promoting the Organic Cotton Apparel. Consumers will then be shown all available Patagonia Organic Cotton Apparel commercials, infomercials, online advertisements and one-by-one, be asked to rate each on its effectiveness level (1-10 scale), why they rated it the effectiveness level that they did, which initiative they believed was most and least informative, which one they found to be the most visually pleasing or appropriate, and which one motivated them to purchase a Patagonia Organic Cotton Apparel the most. Consumers will be rewarded with an Eco Tourism T-Shirt and a chance to win a free Eco Tourism weekend upon release for their participation in these marketing initiative evaluation meetings. Marketing initiative evaluation meetings will be open forums, with a Patagonia marketing employee facilitating the discussion and consumers only sharing information with which they are comfortable. Each meeting will be conducted by a Patagonia marketing employee, who will take detailed notes and provide suggestions to the marketing departments for adjustments to be made to the current marketing strategy based on feedback provided. Controls The purpose of Patagonia LOHAS Community marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: Revenue: monthly and annual. Expenses: monthly and annual. Customer satisfaction. New product development. Market share increase/decrease References B Lab. (2014). What is a B Corporation. Retrieved from Certified B Corporation: http://www.bcorporation.net/what-are-b-corps Ball, J. (2009, December 28). Patagonia Clothing: Making a Profit and Meeting Environmental Challenges. Mother Earth News. Retrieved July 24, 2014, from http://www.motherearthnews.com/nature-and-environment/patagonia-clothing-zmaz09djzraw.aspx?PageId=1#axzz38QgDED2X Casey, S. (2007, May 29). Patagonia: Blueprint for green business. Retrieved from http://archive.fortune.com/magazines/fortune/fortune_archive/2007/04/02/8403423/index2.htm Columbia Sportswear. (2014). Our History. Retrieved from Columbia Sportswear: http://www.columbia.com/history/About_Us_History,default,pg.html Ebay.com. (n.d.). "Patagonia - About Us." Patagonia - About Us. Retrieved from http://campaigns.ebay.com/patagonia/about/. French, S. & Rogers, Q. (2010). Understanding the LOHAS Consumer Understanding the LOHAS Consumer: The Rise of Ethical Consumerism. Retrieved from http://www.lohas.com/Lohas-Consumer Hoover’s Inc. (2014). Patagonia, Inc. company profile. Retrieved from http://www.hoovers.com/company-information/cs/company-profile.Patagonia_Inc.06a3d0522670035c.html Kasperkevic, J. (2014, February 9). Patagonia's new CEO: 'You should build a product that lasts'. Retrieved from http://www.theguardian.com/business/2014/feb/09/patagonias-new-ceo-you-should-build-a-product-that-lasts Lohas. (2010). LOHAS Background. Retrieved from http://www.lohas.com/about Mahlich, J. & Schneider, M. (2013, November 30). Environmental Differentiation Strategy of Patagonia [PowerPoint slides]. Retrieved from http://www.slideshare.net/johannesmahlich/environmental-differentiation-strategy-of-patagonia Organic Trade Association. (2014, January). 2012 and Preliminary 2013 U.S. Organic Cotton Production & Marketing Trends. Retrieved from http://www.ota.com/index.html Patagonia. (2014). Our reason for being. Retrieved from http://www.patagonia.com/us/patagonia.go?assetid=2047 Patagonia. (n.d.). "Patagonia - About Us." Patagonia - About Us. Retrieved from http://campaigns.ebay.com/patagonia/about/ Patagonia and Organic Cotton: A Case Study. (n.d.). Patagonia Environmentalism Essay: Organic Cotton Case Study. Retrieved from http://www.patagonia.com/us/patagonia.go?assetid=2066 REI. (2014). REI History. Retrieved from REI: http://reihistory.com/1950/ Segment Explorer. (n.d.). PRIZM > Market Segmentation Research, Tools, Market Segment Research. Retrieved from http://www.claritas.com/MyBestSegments The North Face. (2014). About Us. Retrieved from The North Face: http://www.thenorthface.com/en_US/our-story-experience/#years/1 Appendix Table 4 Patagonia Organic Cotton Apparel – LOHAS Community (Post-Test Survey) STATEMENTS STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE Infomercial informed me of the health benefits of purchasing Patagonia Organic Cotton Apparel Infomercial informed me about Patagonia Organic Cotton Apparel benefits to the environment. Infomercial was clear, concise, and eye-catching. Infomercial motivated me to google Patagonia Organic Cotton Apparel and the LOHAS Community. Infomercial motivated me to visit Patagonia.com and LOHAS.com to find out more about Patagonia Cotton Apparel. Infomercial motivated me to go online or to a local Patagonia retailer and purchase Patagonia Organic Cotton Apparel Table 5 Patagonia Organic Cotton Apparel – LOHAS Community (Post-Test Survey) Item # Survey Description 1 Are you satisfied with the overall quality of the Patagonia Organic Cotton Apparel? Strongly Satisfied Somewhat Satisfied Neutral Somewhat Not Satisfied Strongly Dissatisfied 2 Would you recommend the Patagonia Organic Cotton Apparel to your coworkers, friends and/or family? Strongly Recommend Somewhat Recommend Neutral Somewhat Not Recommend Strongly Not Recommend 3 Prior to purchasing the Patagonia Organic Cotton Apparel, what factors did you consider? LIST ALL THAT APPLY: Specific people (list name(s)): ____________________________________ Specific website (list all): ________________________________________ Facebook Twitter Event(s) (list all): ______________________________________________ Google+ Vine YouTube Other: _______________________________________________________ 4 Which feature(s) do you like the most about the Patagonia Organic Cotton Apparel? LIST ALL THAT APPLY: Comfort Selection Manufacturing process Price Overall Quality Sustainability aspect 5 Out of all the features, which one feature you value the absolute most? Comfort Selection Manufacturing process Price Overall Quality Sustainability aspect 6 Out of all the features, which one feature you value the least? Comfort Selection Manufacturing process Price Overall Quality Sustainability aspect 7 Which organic cotton retail products do you currently own? Nike REI North Face 8 Would you be interested in supporting social philanthropy causes championed by Patagonia? Strongly Interested Somewhat Interested Neutral Somewhat Dis-Interested Strongly Dis-Interested 9 Please provide your full name, mailing address, telephone number. First Name: ____________ Middle Initial: ___ Last Name: ________________ Full Mailing Address: ________________ (Street) _________________ (PO or APT/Unit #) _________________ (City), ____________ (State) ___________ (Zip Code) _ _ _-_ _ _-_ _ _ _ (Telephone #) 10 Please provide the transaction details as follows: Place of Purchase: _____________________ Date of Purchase: ______________________ Attach Receipt: Click here to UPLOAD Patagonia LOHAS Community 5 Patagonia LOHAS Community 1 Running head: PATAGONIA LOHAS COMMUNITY MARKETING PLAN PROPOSAL