Case Study: Patagonia goes against the norms of business, and it works.

Posted on Posted in How to Guide for Marketers

PatagoniaPatagonia is considered one of the gold standard brands for brand purpose. The problem for those copycat brands is they only go half way, whereas Patagonia goes all the way for environmental causes. The copycat brands make an ad about purpose, but they don’t live it and breathe it the way Patagonia does.

For example, Gillette ran a purpose-driven ad in January, ran it for 6 seeks. Some loved it, others hated it. They lost market share and shifted back to a fireman who needs a sensitive razor because his mask rubs against his face. That’s not purpose driven.

Pepsi made an ad a few years ago, about trying to save the world with Kylie Jenner.  It flopped, so they went back to selling cherry flavours the next week. That’s not purpose driven.

Purpose can’t be a short-term attempt to gain share because we all of a sudden like brand purpose.

Patagonia has made some decisions the copycat brands would never have the strength to do

Since 1985, Patagonia has pledged 1% of sales to the preservation and restoration of the natural environment. They have given away $90 million in cash to grassroots environmental groups making a difference in their local communities. They have encouraged other businesses to join their cause. That’s purpose.

Patagonia has fought President Trump on his views on the environment. This year, they announced they were giving away the Trump tax cut, estimated at $10,000,000, to environmental causes. I didn’t hear Unilever or Ben & Jerry’s giving the tax dollars away. I get it, it’s not easy. But, that’s purpose.

Don’t buy this jacketpatagonia

A few years ago, they were trying to figure out how to handle Black Friday. They launched a campaign encouraging their consumers not to buy a new Patagonia jacket. Ok, now that’s crazy.

Why? Everything they make takes something from the planet we can’t give back. Each piece of Patagonia clothing, whether or not it’s organic or uses recycled materials, emits several times its weight in greenhouse gases, generates at least another half garment’s worth of scrap, and draws down copious amounts of freshwater now growing scarce everywhere on the planet.

They placed the ad in the New York Times asking people to buy less on Black Friday. Yes, they are in business to make and sell products. Yes, they need to make money, and they are growing, but they want to make sure they address the risks of consumerism and don’t want to show up hypocritical.

They refuse to sell to Wall Street or Silicon Valley

Last week, it was revealed that Patagonia will no longer sell co-branded fleeces into companies who do no share their purpose of saving the planet. That means no to Wall Street and no to Silicon Valley. The way they get around this is to stay they will only sell to those companies who are willing to give away 1% of their sales. Turning away willing customers, because they don’t share your views: that’s purpose.

Patagonia is in business to save our home planet.

For years, Patagonia has used “We will build the best product, cause no unnecessary harm and use business to inspire” as their mission statement.” This year, they have dialled up their mission to “be in business to save our home planet.” That’s definitively purpose-driven.

Sensing many other brands are trying to copy the way they do purpose, The founder of Patagonia, Yvon Chouinard, now 81, has taken note and said “Purpose is not a strategy”.

Chouinard went on further to say, “You can’t reverse into a mission and values through marketing. The organisations that are struggling with this are probably the ones that are thinking about marketing first. The role of marketing is to authentically elevate that mission and purpose and engage people in it, but the purpose needs to be the business.”

This environmental stance is embedded into the culture. They have stated that when Patagonia has a job opening, all things being equal, they will hire the person who’s committed to saving the planet no matter what the job is. No other company is that committed to their purpose.

Purpose is not a strategy, and it’s not an advertising line.

If you love brand purpose, you should treat brand purpose properly, and where it sits within your brand actually matters.brand purpose

Purpose is NOT a strategy.

And, purpose is NOT an advertising line.

Purpose answers, “Why does your brand exist?” It is the underlying personal motivation for why you do what you do. It gives your brand a soul. Moreover, it should sit very high on your plan. You can’t make up a purpose.

If you were a product-driven razor brand for 50 years, it takes another 50 years to transition to a true purpose-driven brand. Your first audience of your purpose should be your employees, not consumers.

Purpose impacts the values and beliefs of your brand, which then impacts the expected behaviours of all those who work behind the scenes of the brand. Can you see now, how it takes time for it to sink in. One ad, just won’t cut it.

Don’t be ashamed of your real brand purpose because you likely can’t deliver the fake one you think is cool

Be honest with yourself. If you are Pepsi, what the heck is wrong with making the world smile and dance? Not everyone has to save the world? Authentic means being true to yourself, not just appearing earnest in an ad.

Every brand should have a purpose. Not every brand should use it in their ads. Use purpose if it motivates consumers and is ownable for your brand.

The biggest thing we can learn from Patagonia, is we can never be them.

Patagonia is uniquely laser focused on the environment, not as a way to connect, but as a life-long commitment to why they exist.

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