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