3 1 Patagonia Market Segment Angela Jones University of Maryland Global Campus

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Patagonia Market Segment

Angela Jones

University of Maryland Global Campus
MRKT 310
Dr. Tito Zamalloa
July 8, 2024

TO: Vice President of Marketing Tiffany Morrow

FROM: Marketing Analyst, Destiny Marketing

DATE: July 10, 2024

SUBJECT: Patagonia Market Segment

Market Segment Analysis  

Current Primary Segment

The target market for the marketing campaign is North American men and women. Clients are interested in quality and affordable apparel. Therefore, it is reasonable to communicate the product’s benefits to appeal to this demographic. Based on the North American interest in outdoor activities, the marketing campaign will influence them to consider purchasing the product. As a result, Patagonia will increase customers, which will add to the generated revenues.

Primary Segment

Patagonia targets to sell to men and women interested in buying nightwear with outdoor apparel. The organization believes the more that North American men and women who love to spend their night out or most of their evening at social or business events are the best targets. Such a demographic is willing to spend a considerable amount of money to acquire outdoor apparel for themselves, family members, and friends whenever necessary.

Demographics

The target customers are fun of night outs. At the same time, the clients love to spend most of their evenings while interacting with others socially or economically. The clients include adult males and females because they have endless social and economic obligations. Psychologically, the customers demonstrate interest in quality products. Nevertheless, the clients are price-conscious, meaning they want quality products, but must be affordable to continue buying from Patagonia. Therefore, these customers are price-conscious.

VALS Types

The target customers are experiencers because they love spending their time out at night or most of their evening. Such customers can be found in nightclubs, musical festivals, and other similar activities. Experiencers want to be free from potential cold-related conditions when out in the night enjoying outdoor events. Therefore, it is necessary to emphasize Patagonia has quality outdoor apparel to ensure their night goes as planned. Such marketing messages will appeal to the clients and increase product sales.

New Market Segments

The outdoor attires are being sold to adult males and females in North America. In particular, men and women can buy various jackets compared to babies and kids (Patagonia, 2024). Children are underserved, and the organization must consider them because they may spend nights out with their parents or guardians, depending on the occasion. The children need the jackets such as Triolet and Storm. The children’s market segment for outdoor jackets will increase the organizational revenues when captured and served based on demand.

New Potential Segments

The new customer segment requires outdoor apparel or jackets for night out or evening events, including parents, family members, and friends. The first market segment is for the babies because when they are out at night with their parents or guardians must be protected from cold and other related factors. The second market segment is children between five and ten years old because they too need protection from weather factors at night when they are with their families. The two new market segments can be called young consumers because they are still under their parent’s and guardian care. The customers need the product to be free from unwanted weather effects, including cold.

Potential Segment

The two market segments are for babies between zero months to five years and between five and ten years. Based on the assessment of the two market segments, it is rational to pick the one for children between five and ten years. The core reason for this choice is older children accompany their parents at night in outdoor events more than babies. Hence, older children will require outdoor clothing or jackets more than the babies who may remain home in the comfort of their caregivers.

VAL Types

The new market segment can be grouped into the survivor VAL types. Even though this group refers to older adults with limited resources to afford quality products and services, the same can be said of children because they depend on their parents and guardians for money to spend on consumer products. Thus, the survivor group fits them perfectly since they can afford the outdoor jackets from Patagonia when they have received financial contributions from their older family members.

Recommendation

Patagonia targets adult males and females to consume outdoor apparel or jackets. This means that adult consumers enjoy the product utilities, while children between zero and five years old are underserved (Patagonia, 2024). It is the same with clients between five and ten years old because they are not the primary target for the products. Based on the current marketing situation, it is rational to recommend the organization consider selling jackets to children between five and ten years old. This market segment is preferred because children in the mentioned age bracket are likely to accompany their parents and family members to night or evening events more than children below five years. Therefore, Patagonia needs to plan how to market to this recommended market segment to increase its overall apparel market domination and revenues.

Customer Persona

Segment Name

Children

Representative Photo

Photo Credits: https://depositphotos.com/photos/kids-coats.html

Demographics

Children between five and ten years. The children accompany their parents and family members at night events or occasions.

Background

Children between five and ten years depend on their parents and adults for money to consume products and services.

Needs

The children require money from adults to purchase jackets to protect them from cold weather patterns.

Goals

The children are students and under the guidance of their parents and guardians, meaning their core goal is to perform better academically in preparation for future careers.

Challenges

Children lack personal sources of income and depend on their adult family members for survival.

Perceptions

Children perceive the world of adults as privileged because they lack personal resources to consume goods and services.

Motivation

Motivated to own quality products, but this depends on their caregivers.

VALS TYPES

Survivors because they are dependent.

Product Potential Changes

Patagonia is required to focus on manufacturing more of the jackets that children between five and ten years can wear when out at night or evening with their families. The manufacturer can adjust the product to meet the requirements of a person spending their nights in the cold. It could be adding more wool inside the jackets and other elements that protect the customer from cold. Moreover, the organization needs to consider the different sizes because children in the indicated age bracket can be relatively bigger or smaller in body size. The manufacturer must try to ensure the product can fit various sizes of bodies to appeal to younger consumers. As a result, the organization will increase appeal to the customers and dominate the market segment since there are other competitors intending to attract young clients.

Market Viability

The children’s apparel market in North America, is promising to those interested in investing in it. According to Statista (2024), the children’s clothing market generated $53.78 in 2024, and the trend is projected to increase by 1.78% annually. Therefore, Patagonia needs to focus on this market segment because it will enable it to have a share of the revenues generated yearly. The organization requires to have an extended marketing campaign to appeal to the market segment since they are underserved but promising customers. Investing in the market segment guarantees an increase in revenues needed for growth and development.

References

Patagonia . (2024). Patagonia. Great Outdoor Provision Company. https://greatoutdoorprovision.com/collections/patagonia/

Statista . (2024). Children’s Apparel – US | Statista Market Forecast. Statista. https://www.statista.com/outlook/cmo/apparel/children-s-apparel/united-states#:~:text