American Eagle Outfitters, Inc., a Pennsylvania based company, is a leading retailer that designs, markets and sells its own brand of laidback, current clothing targeting 15 to 25 year-olds, providing high-quality merchandise at affordable prices. The first American Eagle Outfitters store opened in the United States in 1977 and expanded the brand into Canada in 2001. The retailer distribute merchandise via its e-commerce operation, ae.com, which offers additional sizes, colors and styles of favorite AE merchandise which ships around the world.
Its original collection includes standards like jeans and graphic T-shirts, as well as essentials that include:
accessories, outerwear, footwear, basics and swimwear under American Eagle Outfitters, American Eagle and AE brand names. The Company plans to open MARTIN + OSA, a new sportswear concept targeting 25 to 40 year-old women and men, by the end of 2006. Additionally, the Company plans to introduce Aerie by American Eagle, its new intimates sub-brand, in the fall of 2006. Currently, American Eagle Outfitters operates 869 AE stores in 50 states, the District of Columbia and Puerto Rico, and 71 AE stores in Canada. AE also operates a Website, ae.com, which offers additional sizes and styles of favorite AE merchandise.
[...] The combination of cool style + music is a nice hook to get in AE's customer's minds so they can relate the brand American Eagle to I-Pod. In turn, this will help to increase sales in the retail locations and drive more traffic to the company's website. AE will be able to define their customer's music taste. There is a serial number attached to each card which is measurable. There will be a link on the AE website to a customer service link. [...]
[...] American Eagle's IMC program uses a combination of these marketing communications so far that include: Internet, Word of mouth, print advertising, events, sales promotions, PR, and the ad campaign, “Live Your Life.” Its current strategy can be improved by a creative approach that includes postcard direct mail pieces, sponsorships, partnerships and increased exposure of online advertising. The expected Return on Investment (ROI) will be for the new medium that will be introduced in 2007. The internal information sources that will be utilized will be: Financial Reports (2005 AE Annual Report- AE website, Hoovers, AE's accounting firm). [...]
[...] Additionally, American Eagle emphasizes on the date of its establishment in its marketing and design and branding the majority of its products with the date. Aerie intimate sub-brand: fresh assortment of bras, panties, dorm wear, and personal care that is consistent with the AE lifestyle. The second U.S. brand, MARTIN + OSA is a new brand that will give access to the sportswear market for an entirely new generation of shoppers, the 25-40 years old customers. While operating separately from the successful American Eagle Outfitters brand, MARTIN + OSA will embody the same virtues namely excellence in fit, quality and style that have made AE a leading retail brand. [...]
[...] American Eagle Outfitters-SWOT Analysis Strengths Weaknesses Growing sales revenue in 2006 Low market share in men's denim Excellent marketing strategy online & jeans in-store Danger of stockpiling products Athlete/Celebrity associated by retailers sponsorships Competitor (Abercrombie & Fitch) Strong women's sector of clothing leads by 25% more of the market Strong brand identity/recognition shares 50 states with several AE locations Lack of innovative products coming out in 2006 Opportunities Threats To increase the average price of Over reliance on Jean & T-shirt jeans, T-shirts and sweaters sales diverted from historical To draw attention to new markets which leads to technological developments potentially expensive new Encourage a strong brand push in product marketing Europe and to expand into developing Threat of new entrants into the markets market Make use of Urban Outfitters & Bargaining power of suppliers Abercrombie and Fitch's high profile Better and more creative ways of sponsorships selling products to the competitive market Objectives for American Eagle: Increase brand awareness & identity Increase lead generation & sales as an organization Implement new IMC media strategies for AE in order to position the brand in a different way Strong marketing campaign & ROI media analysis Challenges for American Eagle: To strengthen the brand's performance positioning in line with the current competition Penetrate the brand into a new market Reposition the brand in a different way which includes a variety of Marcom initiatives To be the industry leader in the young adults clothing retail industry Solution for American Eagle: Strong Market Research for this niche target market Set strong objectives and maintain them Adopt a new marketing strategy for the coming year (2007) Measure marketing strategy and ROI over a period of time AE needs to understand its customers and their buying habits Develop unique selling propositions American Eagle Outfitters Competition American Eagle Outfitters has two main competitors in the retail industry. [...]
[...] Existing competition: American Eagle Change the dollar amount on its & Abercrombie & Fitch controlling gift cards and offer $ 25.00 the marketplace due to better instead of starting at $ pricing, exposure, and newer Participate in sponsorships, trendier items on sale. auctions, music and co-branding with music groups. The other competitor of American Eagle is Abercrombie & Fitch. The company was founded in 1892. They are a specialty brand that focuses on four brands: Abercrombie Kids (age Hollister CO. [...]
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