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American Eagle Outfitters

American Eagle Outfitters. Ernesto Carranza Fredi Garcia Samyia Hossain Rahele Tesfu Sammy Ng Christina Nguyen. The Challenge. The U.S. workplace is changing from the traditional formal attire dress code to a more business casual dress code.

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American Eagle Outfitters

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  1. American Eagle Outfitters Ernesto Carranza Fredi Garcia SamyiaHossain RaheleTesfu Sammy Ng Christina Nguyen

  2. The Challenge • The U.S. workplace is changing from the traditional formal attire dress code to a more business casual dress code. • Human resources dress code requirements have been a concern for what is appropriate business casual attire in the workplace. • This is an opportunity for American Eagle Outfitters Inc. to add in business casual clothing to their product line.

  3. Analysis of the Company and the Collaborators • Core values • People, integrity, passion, innovation, and teamwork • Core-Competency • Customer-focused perspective • Culture • Fun, cool, friendly, open-minded • Collaborators • China, Guatemala, India, United States, Vietnam

  4. Analysis of the Customers • American Eagle Outfitters • The brand targets 15- to 25-year-old individuals. • Aeire: • Lingerie sub-brand, targeting the American 15- to 21-year-old female demographic segment. • Martin + Osa • The company's second stand-alone lifestyle concept, launched in 2006 and targeted men and women from 28 to 40 years of age. • 77kids • A line of clothing aimed at children from two to ten years of age.

  5. Analysis of the Competitors

  6. Context- PEST Analysis • Social and Cultural Environment • Demographic shifts • Cultural changes • Social Media • Multicultural awareness • Technological Environment • Keeping up-to date with new technological innovation • Opened first corporate office • Technology can help market to their target market • Technology is available to everyone • Expensive • Political and Legal Environment • A&F law suits & new legislation passed by the legislature. • Must comply with federal, state, and local laws and regulations. • Economic Environment • Recession • Unemployment rate • High price elasticity

  7. SWOT Analysis

  8. Segmentation • Psychographic Segmentation • Personality • Values • Lifestyles • Needs • Outgoing versus shy consumers

  9. Targeting • Outgoing consumers that will wear business casual attire. • Individuals who enjoy showcasing their image through apparel to portray themselves to be at a higher quality of standard in clothing • Customers who are willing to pay and use the business casual line

  10. Positioning • Differentiation Positioning Approach: • American Eagle Outfitters is the best place for trendy business attire because we offer the latest fashion trends at affordable prices.

  11. Positioning (cont.) • Differentiation positioning • New opportunities, new competitors i.e. H&M and Express • How to aware loyal customers: • Emails about upcoming promotions and printable coupons, text messages, and AEO’s webpage • How to attract similar customers from other stores • Sponsored posts on social media websites where young adults visit very often

  12. Price • Regular rotation of AE Discounts • AE Reward Card program offers additional discounts to loyal customers • AE credit card can offer layaway plan

  13. Promotion • Personal Selling • Beneficial collaboration for the customer • Sales Discount • Encourages customers to browse and buy • “Manalog” • Promotional system through AEO web interaction and AEO catalogs

  14. Place (Distribution) • Four Distribution centers across US and Canada • AEO third party manufacturers • In more than 20 countries such as China and Russia • AEO has more than 900 retailers across the globe

  15. Product • AEO Brand of business casual clothing • Male Clothing • Button-up shirts with a variety of colors and patterns, fitted polo shirts, skinny pant slacks in three colors. • Female Clothing • Lightweight blouses, jewelry, fitted pants that have different cuts at the end of the slacks, and small casual work friendly jackets.

  16. Short term V.S long term projections • Short term: Create awareness to the business casual line of AEO. • Long term: The business causal line will help increase men’s merchandise sales for the next two fiscal years.

  17. Conclusion • Opportunity: • Enhance our target market’s apparel image with the introduction of business casual attire which has been triggered in demand with corporate America’s dress code transition from traditional to casual • Segmentation: • Business Casual users • Targeted market: • Outgoing-social active individuals who focus on apparel image

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