Thursday, April 12, 2007

Patagonia: a Best Brand

Every now and then, I will try to feature what I refer to as a "Best Brand", companies or organizations that have built indelible relationships with their customers or even the public at large. Inevitably, they do this over time by placing their values at the forefront.

Last week's Fortune magazine (April 2, 2007) featured an article on Patagonia founder Yvon Chouinard and his Ventura, California-based outdoor clothing and equipment business. An accomplished climber and outdoor enthusiast, Chouinard had always hoped to combine work and play in his career, and to that end he has succeeded more than most.

He focuses the company's efforts on environmental stewardship more than profits, constantly assessing product materials to find more recyclable fibers. Etched in glass on the front door of their headquarters is the timeless quote of legendary Sierra Club executive director David Brower; "There is no business to be done on a dead planet."

But its hardly doom and gloom- this is a fun company. When surf's up, many of the 350 employees head out the door for 3 or 4 hours, knowing the work will be there when they get back. Patagonia's current brand awareness campaign (advertising typically accounts just 1% of their operating budget) is focused on donating your underwear to be recycled- and people are doing it!

Chouinard knows what others are learning- that having a conscience is good for business, and good for branding. It matters less what you believe in than THAT you believe in something. For Nike, it's innovation and attitude. At Starbucks, it's not coffee, it's the coffee experience. And this is articulated throughout these organizations so that every employee is empowered to deliver the brand promise. After all, brands are all about relationships, and people like to know where you stand.

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