Akshaya Marketing

Eddie Bauer, Inc.Submitted by:Bharat RathoreRoll no.12116BackgroundEddie Bauer a $2 billion apparel retailer.600 stores, Catered to 75% Americans (40 miles radius)Catalogue helped increase sales by 25%70% customers women, 45% were women sales.Catalogues used in case of stock outsUsed three channels: Catalogue, Retail stores, I-media

Problem StatementWhat change should Eddie bauer implement with its channels which are not showing proper synergy? CatalogEffective sales of $345 million.Availability of Wide variety of products size etcResponsible for brand and new product awareness2.5 mailing to existing customer75 million spent on developing and sending catalogs

I media5% of company catalog sales3 digit increase in salesHighly dependent on catalog for promotion and content developmentHalf sales were to new customersMajority customers were males(1250000)Higher customization and technical glitches free website required

Customer sEducated, married, in 40s, affluent Lot of scope of around 30% of potential market increase.Time constrained customers preferred catalog than to retailImage of Bauer still as male cantered and outdoor relatedNew generation does not know about brand pastLow marketing expenditure resulted in low brand recall and top of mind awarenessMappingFactorsRetailcatalogI mediacustomerdifferentsamesamepromotiondifferentsamesamemarginsmediumlowhighvarietylowhighhighsynergylowhighhighExperiencedifferentsamesameAs we see that there is high correlation between catalog and imedia thy seem to be complementing each other and it seems if they work together they can create more value for the companyChannel conomiesChannelSalesGross MarginsExpensesOperating ProfitRetail$ 1.5 billion$ 0.75 billion$ 585 million$ 165 millionCatalog$ 345 million$ 172.5 million$ 148 million$ 24.5 millionI-media$ 300000$ 150000$ 69000$ 57000Synergized Channel StrategyAdvantagesA unified customer experience across all channelsSimpler organizational structureDisadvantages:Pattern of demand differed for different channelsDemographics of customers differed for different channelsSynergy in terms of pricing within the retail challenge was also a constraintRecruiting became a challenge.ConclusionThe catalog channel has 70% female customers, whereas the retail strategy is primarily focused on the male population.The advertising spend of Eddie Bauer is far less than that of its competitorsThe catalog channel expenditure can be used to create a stronger brand image.ConclusionThe I-media channel can perform the function of Catalog channel in the long run, with the population of internet users set to grow in the coming years.

Till then Eddie Bauer can continue to keep catalogs at all its store in order the tackle the problem of inventory & stockouts

Customers who do not get the desired product at the store can order it using the catalog in the store