ERNESTO CARRANZA FREDI GARCIA SAMYIA HOSSAIN RAHELE TESFU SAMMY NG CHRISTINA NGUYEN.
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Transcript of ERNESTO CARRANZA FREDI GARCIA SAMYIA HOSSAIN RAHELE TESFU SAMMY NG CHRISTINA NGUYEN.
AMERICAN EAGLE OUTFITTERS
E R N E S T O C A R R A N Z A
F R E D I G A R C I A
S A M Y I A H O S S A I N
R A H E L E T E S F U
S A M M Y N G
C H R I S T I N A N G U Y E N
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 valuesPeople, integrity, passion, innovation, and teamwork
Core-Competency Customer-focused perspective
CultureFun, cool, friendly, open-minded
CollaboratorsChina, 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.
ANALYSIS OF THE COMPETITORS
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 RecessionUnemployment rateHigh price elasticity
Social and Cultural EnvironmentDemographic shiftsCultural changesSocial MediaMulticultural awareness
Technological EnvironmentKeeping up-to date with new
technological innovationOpened first corporate officeTechnology can help market to their
target marketTechnology is available to everyoneExpensive
CONTEXT- PEST ANALYSIS
SWOT ANALYSISLocation of Factor
Favorable Unfavorable
Internal Strengths Weaknesses1. Strong balance sheet2. High-quality merchandise at
affordable prices3. Friendly environment4. Global image brand5. Logo is known worldwide6. Strong return policy7. Strong customer service
1. A lot of substitutes available2. Ability to respond to consumers change
in preferences in a timely fashion3. Ability to respond to new fashion trends
in the market in a timely manner
External Opportunities Threats
• AEO can expand its market by targeting people of ages 25 to 40
• Create more retail stores worldwide
• Merge
1. Trademark infringement2. Lawsuits3. Entry level and current intense
competition4. Recessions
SEGMENTATION
Psychographic SegmentationPersonalityValuesLifestylesNeeds
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 positioningNew opportunities, new competitors i.e. H&M and
ExpressHow 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 DiscountsAE Reward Card program offers additional discounts to
loyal customersAE credit card can offer layaway plan
PROMOTION
Personal SellingBeneficial collaboration for the customer
Sales DiscountEncourages customers to browse and buy
“Manalog”Promotional system through AEO web interaction and
AEO catalogs
PLACE (DISTRIBUTION)
Four Distribution centers across US and CanadaAEO third party manufacturers
In more than 20 countries such as China and RussiaAEO has more than 900 retailers across the globe
PRODUCT
AEO Brand of business casual clothingMale Clothing
Button-up shirts with a variety of colors and patterns, fitted polo shirts, skinny pant slacks in three colors.
Female ClothingLightweight 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