AMERICAN EAGLE OUTFITTERS

American Eagle Outfitters was founded in 1977 and is a leading specialty retailer of casualwear
for a young demographic.

Vision: It honors individuality and celebrates self-expression. AEO strives to be a part of that
lifestyle beyond just fashion. Casual comfort and a relaxed attitude have made AEO the
brand it is today.

MARKETTING MIX

FOUR P’S

PRODUCT :
 American Eagle Outfitters sells its products under 5 broad categories, and each of these
serves as separate product lines. The product offerings are casual clothing and accessories.
 It sells unique products that are highly differentiated, with various features offered to
customers that competitors don’t offer.
 The product range in the marketing mix of American Eagle Outfitters includes sweater,
graphic T-shirts, fleece, outwears and accessories.
 These products are categorised into Men’s wear, Women’s wear, Mena’s Jeans, Women
Jean’s, Swimwear and Lingerie. Aries line of products include lingerie, activewear, dorm-
wear and personal care products.
 Its products are perceived to be of higher quality than that of competitors. Therefore,
customers are willing to pay a higher price for these.
 American Eagle Outfitters sells products that are famous for its traditional design that is also
practical for customers to use.
 Its sub brands are aerie ( For lingerie such as a wide variety of bras and other
undergarments, the aerie line sells dorm wear, active apparel, loungewear, accessories
and sleepwear) , Tailgate(Sportswear) , 77 kids(kidswear),

PRICE

 The current pricing strategy to set the price level that American Eagle Outfitters follows is a
competitive based pricing strategy as the data of competitors is easily available
 American Eagle Outfitters sells its products at a higher price than competitors. This is
because it offers more features, and the high price makes up for these.
 It currently uses product bundle pricing as well, where products are bundled together and
sold at prices lower than the total of individual items.
 It also uses an optional product pricing strategy for certain products, where it offers a price
for the base product and separate prices for the accessories that come along with it.
 It charges a greater price for the products it sells online. This is because delivery costs have
been included in the price of the product.

PLACE

 American Eagle Outfitters has retail stores located in shopping malls, lifestyle centres and
street locations in USA, Canada, Mexico, China, and Hong Kong. As of 2017 AEO has over
1050 stores in these locations. In United States alone company has more than 800 stores.
 American Eagle Outfitters sells its products through two marketing channels. The first is
where it sells directly to its customer through its online website. The second is where it sells
to wholesalers who then sell to different retailers located all over the country. These then
sell to its customers.
 It follows an intensive marketing strategy where it tries to include its products on as many
retailers as possible. This ensures that its products are available to customers easily in
different parts of the country.
 It follows an Omni-channel distribution system where it has integrated its online and offline
stores to allow customers easy access to its products.
 American Eagle Outfitters has a network of over 500 suppliers that provide it with the raw
materials needed for production. It has developed a close working relationship with its
suppliers allowing the company to work with them to innovate and introduce new and
attractive features on its products.

PROMOTION
 American Eagle Outfitters follows 36o degree integrated marketing plan which include
advertising using TV commercial, advertising on mobile phones, and using social media
partners for promotion of brand.
 Personalisation of jeans :Inside some stores, customers can personalize their jeans by
adding back patches or paint.
 In –store concept: some store have a study area and washing machines and dryers where
students can do laundry for free. They can’t leave during the wash and dry cycles, which
means some visitors stay in the store longer.
 AEO is also experimenting with beacon technology in its retail stores to send messages to
customers’ smartphones. AEO has prompted customers to try an item on in the fitting room
to earn a reward.

 BLACK FRIDAY SALES : Unlike Black Friday sales at other retailers that feature
different prices and discounts on merchandise, AEO traditionally offers a blanket
discount. There's no guessing how much something costs or wondering if you're
getting a great deal, you just know you're getting a discount.
 Mobile marketing
 American Eagle Outfitters is continuing its mobile-minded year by attempting to ramp up
mcommerce sales with a new “offers” section within its mobile application, proving that
consumers are gravitating to mobile for exclusive offers.
 THE AE EXPRESSION: INDIVIDUALITY. FREEDOM. DIFFERENCE.

 CAMPAIGNS
 As a brand, AE has been a pioneer in collaborating with today’s youth to support self-
expression and prioritizing their individuality with a group of inspiring Gen-Zers to help
encourage others to share their unique style through their spring collection and Ne(X)t Level
Jeans.”

 Ride with Pride" campaign : engaged activists from the LGBTQ community, released a
clothing collection to benefit an LGBT-focused organization, and launched a Facebook Live
stream. It also partnered with micro-influencers and LGBTQ activists to customize
#WeAllCan tees with messaging about what Pride means to them.

 The brand introduced #AExME as a pledge to forgo using models and feature only real
customers styling themselves in its marketing.
 #aerieREAL, an Aerie campaign focused on girl power, body positivity and empowering
women to “let the real you shine” – they even use untouched photos
 American Eagle launched the #AEOLiveEXpress campaign in tandem with its ripped jeans
collection launch, asking buyers to place temporary tattoos on their skin visible through the
holes in the jeans.

PROCESS :

 American Eagle Outfitters has an online delivery process

 American Eagle Outfitters is actively involved in researching market opportunities in order to

understand customer needs. It also develops understanding regarding customer needs
through feedback collected at store, its helpline or social media pages.
 AEO has partnered with visual search platform Slyce. As a result, shoppers will be able to
point their smartphone cameras at real-world items to find similar products in its inventory
as well as scan the retailer’s catalog .

 American Eagle launches dressing room technology: Shoppers use touch-screens installed in
each dressing room to scan items, look up product information, request additional sizes, see
in-store inventory, calculate costs and email themselves product information.
 Sales associates receive notifications via mobile when a product is requested and can
indicate when it has been fulfilled, thereby streamlining in-store logistics.
 Salespeople are equipped with point of sale device so the the customers can check out in
the dressing room itself.

 OMNICHANNEL CONCEPT : RESERVE TRY N BUY

AEO wanted to use consumers' everyday digital experiences to drive in-store traffic and
purchases. The idea behind the program is to give customers the flexibility to shop exactly
how, when, and where they want to.

Customer reserve merchandise through a mobile app or on AEO's website. The store nearest
each of those customers receives an alert AEO of the shoppers' requests and employees
confirm that the items are in stock Customers reserve an average of one to two items with
the Reserve, Try and Buy program. But in when they arrive in the store, customers ended up
buy more than three items on average.

People

 American Eagle Outfitters have people trained in persuasive techniques, but also to show
respect to the business customers taking into consideration their preferences.
 American Eagle Outfitters has people working in its customer service department. These are
contacted by customers in case of any issues within the product, and these people guide
customers through the process of getting the issues resolved.
 These people are trained to respect the customers and try their best to get their issues
resolved.
 American Eagle Outfitters has people working with suppliers to obtain raw materials. These
people play a vital role in maintaining or improving the quality of the final product
produced.
 American Eagle Outfitters has people working at retail stores who help the customer on site,
by answering any questions or helping them decide the product that best suits their needs.

Physical Evidence

PACKAGING : American Eagle Outfitters sells its products in a distinct color packaging that easily
identifiable on retail shelves. These are placed on special shelves provided by the company,
which also have a distinct color and design. This makes it easier for customers to locate such
shelves in busy retail stores.

 American Eagle Outfitters has an online website that is user-friendly and allows customers
to view its products in high quality images taken from various angles.

STORE LAYOUT

 A unique brand experience, feel at home, and curate their distinct individual style,"
 It has spacious lounge, with tables and sitting areas.
 The lounge offers plenty of places to plug in. views of the park are provided through large
windows.
 They have iPad in the dressing room which let shoppers call an attendant if they need to edit
their choices.
 Salespeople are equipped with point of sale device so the the customers can check out in
the dressing room itself.
 Fitting rooms have plenty of space to show off the try ones to other people.
 Stylised photos line in the staircase
 Laundry section and spot alteration facilities are also available .

STP

Market Segmentation

AE can segment its market in a variety of ways. They market to males and females in their teens
and early 20s. Their brand slogan is “live your life” which communicates the ideas of living in
the moment, accomplishing personal goals, making the most of experiences, and living
freely.

Geographic Segmentation
They deliberately locate their stores in urban areas within malls or busy outdoor shopping
areas. They offer online shopping as an alternative, and will deliver door-to-door or in-store.

Demographic Segmentation
They market to teens and young adults ages 15-25. This brand is affordable to people who
have low income, but wealthier customers will tend to shop here for the convenience,
quality, or for infrequent bulk purchases. They focus more on marketing to women because
they sell more women’s products than men’s products.

Psychographic Segmentation: Younger teens tend to be interested in items with the brand name
displayed across the front to express they are “cool.” Customers in their young 20s usually
opt for clothes that fit their lifestyles, so if they play a lot of sports they would be more
interested in the workout clothing section of the store.

Behaviour Segmentation
There is an AE rewards card offered to customers where they can gain a point with every
dollar they spend which grants them coupons and exclusive offers sent to them in the mail
or by email. Their purchasing behaviour is tracked by the database to let them know about
specific promotions that reflect past purchases. For example if a customer has bought a lot
of jeans in the past, a coupon for 50% off all jeans in the store may be sent to them to
motivate them to enter the store
TARGETTING :

 The age of the target market lies between 15-25.

 It targets middle to upper class people .
 Its customers are mainly high schools and college going students who like wearing trendy
cloths.

POSITIONING

AEO has adopted a quality based positioning. It focuses on the quality of the product and keeps
simplified designs.

AE has taken a very real approach to their marketing and embraced the current rise of self-love,
choosing a more inclusive feel. The brand is rooted in authenticity and self-expression.

BRAND FAILURES
• In 2013, It could not keep pace with the fierce competition from fashion-forward brands
hence missed fashion calls.
• It produced basic merchandise with persistence logo business.
• It could not meet the changing consumer needs and behavior.
• The retailer’s comparable store sales declined by 6%
• Early last year, American Eagle terminated its licensing agreements in China and Hong
Kong.
 Failed Martin + Osa
The company second stand-alone lifestyle concept, launched in 2006 and targeted men
and women from 28 to 40 years of age. It featured cashmere sweaters and casual clothing
for an older target audience. It also sold products by Fred Perry, Ray-Ban, Adidas, Onitsuka
Tiger , and HOBO International. On March 10, 2010, American Eagle Outfitters announced it
would close down its 28 Martin + Osa stores and online store. Although performance
improved from fiscal 2008, management determined that the brand was not achieving
performance levels that warrant further investment. In fiscal 2009, Martin + Osa generated
an after-tax loss of approximately $44 million, including a non-cash impairment charge of
approximately $11 million, net of tax. The company chose to focus its efforts and resources
on the American Eagle family of brands including, AE, aerie and 77kids and closing all the
28 Martin + Osa stores.

77kids
In October 2008, American Eagle released and launched 77kids, a line of clothing aimed at
children from two to ten years of age. Initially an on-line only concept, AEO opened its first
77kids store on July 15, 2010, in The Mall at Robinson in Pittsburgh, PA, and eight others
followed that year. Expansion continued throughout FY2011. 77kids stores, meant to be a
fun shopping experience for younger children, featured interactive games and activities
throughout the stores that children could play with while shopping.
American Eagle Outfitters announced on May 15, 2012, that it would sell or close all 22 of
the 77kids stores by the end of July 2012. Robert Hanson, who became CEO in January
2012, said 77kids had a loss after taxes of roughly $24 million on sales of $40 million in the
2011 fiscal year. On August 3, 2012, American Eagle Outfitters completed the sale of its
77kids to Ezrani 2 Corp, a company formed by Ezra Dabah, the former Chairman and CEO
of The Children's Place. Ezrani renamed the stores to "Ruum" in 2013

CHANGE IN STRATEGY

 The retailer shifted from simple logo bearing brand to innovative brand. It
 Strengthened its core product category with more innovation in distinct finishes, fabrics and
washes.
 American eagle simplified its designing system to respond to changing customer tastes
quickly and effectively.
 It removed layers within its design teams, reorganized the structure to implement direct
accountability and enhanced its speed sourcing capabilities.

Adopted fast-track fashion, in which merchandise moves from design to in-store receiving in just
60 days.

AEO has taken an extra step towards inclusivity, officially making a denim hijab part of its
wardrobe offerings. The company recently made waves with their new ads, which debuted on
 Instagram and were totally unretouched. They also featured Muslim model Halima Aden
wearing a hijab with her awesome layered look for fall.

Inventory Management Strategy

American Eagle is also avoiding this common downfall in the industry by making an effort
to eliminate excess inventory. strategy in which it stocks very little and updates its collections
frequently. Instead of other brands that only update once a season, it restocks with new designs
twice.

STEPS TOWARDS SUSTAINABILITY

 AEO exercises a triple bottom line approach, and therefore puts forth a tremendous amount
of effort in being a socially responsible corporation.
 AEO partnered with I:CO to construct a zero-waste textile initiative for their associates.
 The I:CO program prevents 22.3 billion pounds of clothing and other textiles from reaching
our landfills each year in the U.S
 They recycle everything from paper to glass, plastics and cardboard. According to their
sustainability report, there are dozens of recycling bins in their
 The shopping bags using 75% recycled materials
 It worked to reduce water use per jean production by 30%, recycle 50% of total water used
in denim laundries, and make sure the factories, mills, and laundries we use uphold our
wastewater standards.
 It uses 100% of cotton fiber from growers using sustainable farming techniques, and making
sure at least 50% of our polyester fiber is sustainable.
 Converted all labels to sustainably sourced materials, and are sending you home with
shopping bags made with higher recycled content.
 American Eagle does not use fur, angora, down or exotic animal hair or skins.
 At the end of the day, American Eagle follows a fast fashion model, promoting quantity over
quality, which is inherently unsustainable.

POLICIES

HUMAN RIGHTS POLICIES

Americaneagle.com is committed to fostering a diverse, multicultural work

environment where our employees respect one another. Americaneagle.com
provides equal employment to all participants and employees without regard
to race, color, religion, gender, national origin, age, disability, sexual
orientation, veteran or marital status.