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Meeting Objectives

Meeting Objectives. Share key learnings from consumer and competitive research Provide a reco for AE Fall promotional campaign to drive jeans sales during July-Sept . Demographic Trends. YOUNG AND FREE. Population 21.1 million 20-24 yr olds in US College Demographics

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Meeting Objectives

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  1. Meeting Objectives Share key learnings from consumer and competitive research Provide a reco for AE Fall promotional campaign to drive jeans sales during July-Sept
  2. Demographic Trends YOUNG AND FREE Population 21.1 million 20-24 yr olds in US College Demographics 39.6% enrolled in college
  3. Social Trends ACCEPTING & EXPERIMENTAL 57% of college students volunteered last year. Millennials’ Uniqueness: Technology Use- 24% Music/ Pop Culture- 11% Liberal/ Tolerant- 7% Smarter- 6% Clothes- 5%
  4. Technology Trends ALWAYS ON & COMPLETELY CONNECTED Facebookuse: College dem. grew the fastest at 74%/ yr 69% of all users are a fan of 1+ company page Twitter use: 29% of users (18-24) follow their favorite companies
  5. Economic Trends FEELING THE PINCHBUT CAN ALWAYS CALL HOME FOR ABAILOUT 55% Watch Spending 36% Financially Dependent
  6. Surveying the Target Market 66% want discounts 59% want sale promotions
  7. FOCUS GROUP FINDINGS
  8. Meet Allie! 20 Years Old Attends University of New Hampshire Motto- “Live Fun & Live Free Financially supported by her Mom and Dad Part-time waitress Loves technology Active on campus through volunteering ”
  9. Positioning Statement
  10. Value Proposition
  11. Integrated Marketing Campaign Vehicles Digital Technology and social networking is extremely important in reaching the target audience Direct-Mail Ability to target college students who aren’t current customers of AE by purchasing lists of their addresses Print Ads 59% of consumers said they pay greater attention to magazine ads than any type of Internet advertising 4) In-Store Once consumer gets into the store, they’re that much closer into converting into a sale
  12. LOOK GOOD DOING GOOD Jean Giveback Advertising Chevy Volt Sweepstakes
  13. Jean Giveback
  14. Mailer Direct Mail- reaching 2.5 million homes of college students
  15. Orientation “Mailer” Given to all freshmen entering colleges & universities with AE Student Unions Drives try-on & sales
  16. Chevy Volt Sweepstakes
  17. In-Store Promotions Recycled Shopping Bags & Electronic Receipts Buy 2 pairs of jeans, Get FREE t-shirt! T-shirts sold – 10% of profits donated In-Store Poster
  18. Store Layout
  19. Employee Support 35,000 Employees Training In-store vehicle for sales Promotions Reach Out Program Friends and Family Social Media Outreach Flyer distribution Campus Ambassadors
  20. Budget Allocation
  21. Why Champion Enterprises: Relevant & Motivating to College Target Fits with AE image & can be ownable Will drive sales in key back-to-school time Expands AE position as lifestyle brand
  22. Index Slide Budget Breakdown SWOT Competitor Landscape Competitor A&F Gap Aeropostale AE Traffic AE Attributes and Values Demographic Jean Statistics Chevy Volt Budget Volt Budget SMS Budget Websites Car Sweepstakes Good Cause Marketing Direct/Email Response Rates Jean Give Back Social Media Marketing Social Media With A Cause Magazine Marketing AE Student Union allEtronic References
  23. Budget Breakdown INDEX
  24. SWOT INDEX
  25. Competitor Landscape INDEX
  26. Info on: 4 Brands All distinct but competitive AE competes with A&F and Hollister A&F: 1.272.28m in 2010 Hollister: 1.287.24m in 2010 Revenue decreased by 16% in 2010 with 23% decrease in sales Attempting to expand to Japan and Europe (One Source, 2011) INDEX
  27. Info on: 5 brands Wide price spectrum: Old Navy  Banana AE competes with Gap and Old Navy Gap 134,000 employees & over 3,000 locations American Eagle had 35,000 employees & 931 locations 13.7% Profit Margin in 2010 AE had 10.&% Profit Margin in 2010 Declining sales of 3.19% 90% of total revenue comes from sales Recalls on quality = poor public image INDEX
  28. Info on: Target Market: 14-17 years old 4160 emplyees and 965 retail locations AE has 35,000 employees 929 AE locations, 148 aerie locations, 9 77 kids locations # 2 in the market behind AE Operating margins are 17.2% AE is 11.5% and A&F is 7.8% Only in North America with 96% of revenue from the US INDEX
  29. American Eagle Traffic Statistics Consumers Women’s brand has expanded by 70% in past 20 years 21 million loyalty members Stores Over 930 stores with 30 million visitors monthly #1 Specialty retailer Webpage AE.com is a top 50 commerce site- over $300 million 20 million website visitors monthly INDEX
  30. AE ATTRIBUTES & VALUES The American Eagle brand is built on 3 key attributes: - Great Products - Exceptional Value - Customer Focus: The College Lifestyle AE Core Values: - Honest & Real - Individual - Current – Fun INDEX
  31. College Students: Connected & Caring Demographic Trends YOUNG & FREE Economic Trend FEELING THE PINCH BUT CAN ALWAYS CALL HOME FOR A BAILOUT Technology Trends ALWAYS ON & COMPLETELY CONNECTED SocialTrends ACCEPTING AND EXPERIMENTAL INDEX
  32. AE Jean Statistics Strong reputation on fit, quality, and value 12 million pairs sold each year 4 million during back to school #1 market share in Men’s and Women’s Denim for Specialty Retailers, ages 15-25 Specialty retailers control 42.6% of Women’s denim market AE Jeans are #2 in Women’s top 10 brands Price range $39.50-$59.50 INDEX
  33. Chevy Volt Motor Trend 2011 Car of the Year, 2011 Car and Driver 10Best Award 2011 Green Car of the Year Up to 95 MPGe, 35 city 40 hwy on gas 35 mile electric range, 407 total range Charges via a standard 120V outlet (10hrs) or Chevy sells a 240V charging station (4hrs) Chevy Carbon Reduction Campaign- Investing 40 million dollars in initiatives that will help reduce up to 8 million metric tons² of carbon dioxide from the atmosphere Aligns with our initiatives and marketing campaign INDEX
  34. Budget Volt Chevy volt is $32,780 after $7,500 tax credit INDEX
  35. Budget SMS SMS Messaging: Source cites that 40% of people 18-34 are interested in SMS advertising. Approximately 20 mil college students would mean roughly 8 mil SMS subscribers in target market. SMS has a high response rate, 6.4% in clothing industry. INDEX
  36. Budget Websites Targeted Web Advertisements: between .1 and 4% response rate. Estimated 2% across all websites. 66,500,000 advertisements for 1,330,133 clicks. Targeted websites: Facebook, Google, Youtube, CollegeHumor, Pandora, and Hulu based on College Student Traffic. INDEX
  37. Why choose to do a Car Sweepstakes Sweepstakes can increase response rate and sales An effective way to connect social cause with marketing goals INDEX
  38. Why choose a Good Cause for Marketing Volunteerism high 57% for Millenials within the last 12 months—focused on local community        Tend to be politically pro-government and socially liberal (29%)= Democratic (62% lean to D) big supporters of Obama 21% if 18-29 year olds think volunteering and helping others is the most important thing in theirlives 87% of consumers said they would switch from one brand to another comparable brand, based on its association with a good cause. 48% of American and British consumers have been motivated by a cause -related marketing campaign to change brands, use a product more, try new products, or get information about new products INDEX
  39. Response rate of Direct Mail and Email 92% of 18-24 year olds use the internet and/or send/receive emails occasionally Email response is based off of opening rate of 20% and response rate around 2% Response is due to content and personalization   Direct Mail response rate for a letter sized advertisement is approx 3.5%  INDEX
  40. Why A Jean Give Back Will Be Successful AeropostaleJeans for Teens campaign brought in 542,411pairs of jeans in just four weeks Customers received one 25% off coupon per pair of jeans donated Aeropostale transferred donated jeans to local shelters for distribution Gap sponsors the Cotton From Blue to Green campaign  Customers received 30% off coupon on a new denim purchase  Jeans were used to insulate new houses INDEX
  41. Reasons for Social Media 81% of 18-24 do have a social network page 58% of 18-24 check facebook at least once a day 69 % of all facebook users are fans of at least one company Awareness and purchase intent increases with home page ads on social networks 2% increase from home page ad 8% increase when a friend "likes" home page ad INDEX

  42. Social Media With A Cause

    Website advertisements are more effective when combined with a social advocacy campaign Can quadruple purchasing intent INDEX
  43. Magazine Advertisements 25.2% of 18-24 year-olds enjoy reading magazine ads 24.2% of female magazine readers 18-24 read Cosmo  17.3% of females magazine readers 18-24 read People INDEX
  44. Jobs for the AE Student Union 1 Brand Ambassador and 2 Brand Representatives will be at 48 colleges and universities across the country starting fall 2011. Brand Ambassadors will now organize more clothing drives and publicize the events. 924 fans on Villanova AE Student Union page. The Clothing Drive will be directly linked to the Look Good Doing Good campaign. INDEX
  45. allEtronic Software program that connects to credit cards, debit cards, etc. and automatically sends receipts to one place Reinforces the “Doing Good” aspect of the campaign Saves money for AE on paper and printing In order for receipts to be produced for 1 year: 9.6 million trees cut down 249.6 gallons of oil 1.2 billion gallons of water 1.5 billion pounds of trash Also speeds up the check-out process, reduces time waiting in line INDEX
  46. References USA Today, 2006 http://www.usatoday.com/life/lifestyle/2006-06-28-generation-next_x.htm American Eagle Outfitters, Social and Corporate Responsibilityhttp://www.ae.com/web/corp/responsibility.jsp?topic=environment Pew Research Center, “Millennials: A Portrait of Generation Next” (PDF) http://pewresearch.org/millennials/ Datamonitor (2010) American eagle outfitters Inc. company profile. http://ezproxy.villanova.edu/login?URL=http://search.ebscohost.com/login.aspx?direct=true&setup=0&db=buh&authdb=dmhco&browse_option=CP&site=bsi-live Morningstar Equity Analysts (2011) American Eagle Outfittershttp://library.morningstar.com/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=AEO&pgid=qtqnlinkanalysis Nielson (2010) http://adage.com/article/digital/nielsen-facebook-s-ads-work-pretty/143381/) O’Neil, (2007) Is Facebook Advertising Effective? http://www.allfacebook.com/is-facebook-advertising-effective-2007-11 OneSource (2010) American Eagle Outfittershttp://globalbb.onesource.com/web/Reports/ReportMain.aspx?KeyID=191491&Process=CP&CIK=919012&Report=STRENGTHWEAKNESS P., Carol (2008) http://millennialmarketing.com/2008/05/millennials-the-wealthiest-americans/ Quantcast, 2011 http://www.quantcast.com/americaneagle.com The U.S. Young Adult Market, 2005 http://academic.marketresearch.com/product/display.asp?productid=1091627&curl=&surl=%2Fsearch%2Fresults.asp%3Fprid%3D811629525%26query%3D20%2Byear%2Bolds%26cmdgo%3DGo&prid=811629525) Westwood University (2011) http://www.westwood.edu/resources/student-budget/ INDEX
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