Green Marketing Product Strategy. Free Essay

Patagonia capitalizes on the use of alternative textile technology. One of the materials is hemp, whose natural fiber is cultivated with the lowest impact on the surrounding (Patagonia, n.d.). Besides being environmentally friendly, the materials produced from hemp are durable and create a fabric that has a wonderful drape, and strength compared to the standard linen.

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Patagonia applies the full integration of sustainable production as shown in their products, from the way they are produced as raw materials, production processes, and durability. For example, hemp is produced using the most environmentally friendly method, promoting sustainability (Wolfe, 2019). The product is then developed in a way that will withstand a majority of the severe environmental strains. Hemp is renowned for producing the strongest fiber; thus, it can withstand the harsh environment. Lastly is durability where products are not durable, their turnover rates are high, meaning the corresponding waste is also high. Patagonia ensures that its products are long-lasting to avoid waste pillage.

Patagonia uses the natural step framework since its raw materials and products have passed the scientific test for durability. They are focused on the conditions for a sustainable society, and are comprehensive, in that they consider the whole production process. The products are universal since they can be used indoors and outdoors and are distinct (Porter, 2006). Patagonia uses three steps to incorporate renewable technology: practicing conservation, improving efficiency, paying voluntary earth tax, and are in favor of renewables (Patagonia, 2014). 56 percent of its fabric is approved by "https://goodonyou.eco/bluesign-standard/" \t "_blank" bluesign® certified, and it belongs to the "http://apparelcoalition.org/" \t "_blank" Sustainable Apparel Coalition, as well as being rated good for the environment (Wolfe, 2019). Their labor policies are workers friendly and have strong welfare of the animals and ecosystem, meaning their production is sustainable. Patagonia packaging and labeling, use recyclable materials. In the cases of plastic packaging, they use the product with the highest possible post-consumer waste (PCW) (Patagonia, n.d.).

Place Strategy

The supply chain management in Patagonia is essential because it involves the management practices revolving around decisions about their sustainable product from when it is designed to the point when it is disposed of (Petrie, 2016). It takes into consideration how such decisions will affect the consumers and community in general, their profitability, and the planet (Petrie, 2016). Patagonia applies the multichannel approach, meaning, catalogs, web and retail, and wholesale. The catalog buyers are categorized in three, including casual buyers who buy the products only once and make up to 64 percent (Miller, 2006). The second category is the loyalists and is worth more $134, the last type is the cheerleaders, who understand the company well and, in most cases, verbally market the company (Miller, 2006). Their contribution goes up to $406 (Miller, 2006). Online or web-based is balanced, while search marketing contributes about 64 percent (Miller, 2006). The customers who come through this method have around $74 value to Patagonia, while those who buy out of their catalog have a value of $112, meaning that the catalog is more valuable (Miller, 2006).

Patagonia products fit very well with a green marketing strategy. Supply chain management is concerned with the allocation of resources. Thus, there are several ways of optimizing techniques to aid in decision-making (Dakhely et al., 2014). One of the ways is integrating marketing with the activities around the supply chain from the perspective of the demand of the chain. Patagonia's materials use an innovative process that promotes a positive relationship with the company's competitive advantage. The other option is to look at the distribution and the logistics, where the role of the distribution channel should be defined clearly, and its relations to the supply chain be strengthened while at the same time reducing the associated costs (Dakhely et al., 2014).

Price Strategy

One of Patagonia's pricing strategies is product-based. In this strategy, the focus is mainly on the product rather than the customer with the aim being to create awareness among the customers, so they can quickly locate the product and purchase it (Black, 2016). To reinforce this, they focus all their effort on making the most durable product that can last and are useful to the customer in the long term. For example, the use of hemp fabric enables them to create a durable product. This shows that they do not consider the customer first and their buying ability; instead, they concentrate on the product that will serve the customer for a long (De Toni et al., 2017).

They concentrate on quality rather than quantity. Thus, their products are among the most expensive. This results in the creation of casual customers, who are one-time buyers (De Toni et al., 2017). At the same time, they can keep loyal customers because of their quality (Black, 2016). The pricing is strategic in that; it prohibits customers from buying their products excessively. Thus, they only produce what is needed, while reducing the possibility of waste pillage as people will consider the product to be valuable to be thrown away.

References

Black, K. (2016, May 11) Marketing strategy Patagonia. (n.d.). Prezi.Com. "https://prezi.com/tnikifojlm4x/marketing-strategy-patagonia/" https://prezi.com/tnikifojlm4x/marketing-strategy-patagonia/

Dakhely, P., L. Z., Delkhak, J., & Jamshidi, E. (2014). The study of the effect of green marketing on supply chain management. European Online Journal of Natural and Social Sciences, 2(3). 27-36. doi: 10.1108/JMTM-03-2018-0099

De Toni, D., Milan, G. S., Saciloto, E. B., & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administração, 52(2), 120–133. "https://doi.org/10.1016/j.rausp.2016.12.004" https://doi.org/10.1016/j.rausp.2016.12.004

Miller, P. (2006, October 17). Multichannel Marketing, The Patagonia Way. Total Retail. "https://www.mytotalretail.com/article/multichannel-marketing-the-patagonia-way-39064/all/"

Patagonia. (2014). Patagonia’s Path Toward Energy Efficiency "https://www.patagonia.com/static/on/demandware.static/-/Library-Sites-PatagoniaShared/default/dwfd735cf3/PDF-US/Path_towards_energy_efficiency_v1.pdf"

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Patagonia. (n.d.). Materials & Technologies. Patagonia. "https://www.patagonia.com.au/pages/materials-technologies" https://www.patagonia.com.au/pages/materials-technologies

Patagonia. (n.d.). Patagonia Packaging and Merchandising Policy and Implementation Guidelines. Packaging and Merchandising Scope Packaging and Merchandising Principles. "https://www.patagonia.com/on/demandware.static/Sites-patagonia-us-Site/Library-Sites-Patagonia

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Petrie, K. (2016). Patagonia Inc.’s sustainable supply chain initiatives and their contribution to the company brand (Doctoral dissertation). "https://baylor-ir.tdl.org/bitstream/handle/2104/9757/kelsey_petrie_honorsthesis.pdf

Porter, T. B. (2006). Coevolution as a research framework for organizations and the natural environment. Organization & Environment, 19(4), 479-504.
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Wolfe, I. (2019, June 14). How Ethical Is Patagonia? Good on you; Good on you. "https://goodonyou.eco/how-ethical-is-patagonia/" https://goodonyou.eco/how-ethical-is-patagonia/