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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 Ernesto Carranza Fredi Garcia SamyiaHossain RaheleTesfu 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. • 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.
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
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.
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
Segmentation • Psychographic Segmentation • Personality • Values • Lifestyles • Needs • Outgoing versus shy consumers
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
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.
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
Price • Regular rotation of AE Discounts • AE Reward Card program offers additional discounts to loyal customers • AE credit card can offer layaway plan
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
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
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.
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.
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