Taylor Allen and Jane Xiang
Retail Brand Identity: Mission, Vision, Values
American Eagle Outfitters was founded
in 1977 in a little town called Novi, Michigan. The number 77 is still used throughout their products and brand in order to maintain the history of the company. The AE mission is to bring “high-quality, on-trend clothing, accessories, and personal care products at affordable prices. WithAE.com delivering around the world and over 900 stores set up across the US and Canada, we target men and women ages 15 to 25 years old but welcome individuals of all ages everywhere. Live your life.” More than thirty years later and their core mission remains the same: to produce quality, trendy clothing at affordable prices to the college lifestyle.
The company is also very dedicated to
their values, which include customer focus, dedication, and innovation. With their headquarters in three locations, Pittsburgh, New York City, and Hong Kong, they have taken culture from the areas, which have helped to base their company values. American Eagle recently began a campaign entitled AE Better World.This is basically a new business practice being used to promote a cleaner and healthier planet. It is still in the early stages, but they are hoping to create a “greener” company through conserving resources, minimizing waste, and improving their products and packaging.
The Target Consumer
American Eagle is a “lifestyle brand” which
targets college living. Essentially, they promote the young “American Dream”. AE achieves the lifestyle through their easy, care-free fashion, which college students find very appealing, their accessories, like backpacks, and their ad campaigns. The photo shoots don’t look like models posing for a camera, but rather snapshots of college friends at the beach and having bonfires after long days of classes.The brand targets the 15-25 year age range. VALS would classify the consumer as a striver and an experiencer.AEO successfully reaches their target market considering in 2006 they were named the #1 brand that college students can’t live without.
COnsumer, Market, and Lifestyle Trends
One of the key trends to affect American Eagle is education. There are more students in col-
lege than ever have been before and for the first time, there are more women than men in college. The male to female ratio of college students is currently 42.5% to 57.5% and growing! Considering more women shop than men, this is huge for American Eagle. With more women in college, they should be able to sell more clothing and expand the brand to that young and educated casual woman. AEO opened Aerie at a very smart time, targeting the college Millennial female.
Millennials: the generation born between 1982-2000 to Boomer parents: AKA- Gen Y • In the US there are 78 million Millennials. They hold significant power in cultural and economic aspects.
•
Forecasted to make up the largest consumer de-
mographic by 2015 totalling 1/3 of the entire population.
•
They are estimated to have an annual spending
power of $170 billion dollars.
•
Currently many Gen Ys find themselves under-
paid or without jobs while also burdened with student loans. As a result, more than half of the generation that has graduated has moved back in with their parents.
•
Millennials’ lives depend on technology and the
Internet. Both are integrated in their decision-making processes; through research & social networks.
•
Their integration with the Internet and technolo-
gy has made them more conscious of companies’ social responsibilities; they support companies that give back, that reduce ecological footprints, and that tell a good story.
Competitive Strengths and Weaknesses
There are some specific strengths that help American Eagle remain on top. One strength
is their catchy brand name, theme, and logo. Their use of the eagle is very recognizable throughout their products and advertisements. AE also has some very loyal customers. Some of these loyal customers are the parents. Many parents buy American Eagle for their teens because of their wholesome aesthetic and the way they promote education. The overall brand seems to encourage college. Another strength AE possesses is their unique clothing. The clothing is unique to the brand in that when you see someone wearing AE, you can tell that it is American Eagle apparel. They do a great job of maintaining their aesthetic while still updating clothing to the latest trends. American Eagle upholds a reputation for quality in their products. They do a great job of ensuring the higher quality for their clothing than their competitors do, such as Aeropostale, Abercrombie and Fitch, and Hollister.
Like any company, AE has their weaknesses. One being they have young target consum-
ers. Young people have less job security and are fickle, particularly when it comes to clothing interest. One minute they may love American Eagle and the next they may prefer the aesthetic of Forever 21. AE also has higher prices than many of their competitors. This is a weakness for the brand, considering their targeting poor college students, but hey, you get what you pay for!
Venues
AEO stores span throughout the United States (994 stores) and Canada (96 stores), total-
ing 1,090 stores directly operated by AEO. The company additionally has 21 franchised stores operated in 10 other countries; although AEO does not directly operate these stores, its brand still has an international presence that it plans to expand. AEO has a small variety of free-standing brick-and-mortar stores. They include American Eagle Brand, Aerie, and 77kids. The company additionally sells merchandise online through AEO Direct, a channel that currently makes up 14% of its sales. AEO also emphasizes attention to customer store experience and made nearly 100 store renovations in the 2011-2012 fiscal year to enhance store experience and increase store size.
Business Model
American Eagle Outfitters Inc. aims to deliver value in products that can be worn every-
day by everyone. AEO markets primarily to the 15-25-year-old age market with apparel and accessories, but has recently developed apparel specifically for kids with their 77kids line. AEO also makes an effort to gain market shares in key categories like denim, knit tops, and fleece. AEO lists on its website what the company is best known for and what categories are most competitive:
Top Competitors: • Aeropostale • Abercrombie and Fitch (Hollister) • Gap • Buckle
Aeropostale:
Aeropostale is also a casual apparel and accessories company with 1,011 stores be-
tween the U.S. and Canada. Their target consumer is a bit younger than AE’s at a range of 14 to 17 year olds. They also have a children’s brand called P.S. Since their market is younger, it makes sense to sell cheaper merchandise and have a simpler website layout.
Abercrombie & Fitch / Hollister:
Abercrombie & Fitch is the biggest competitor to AEO because they have been around
for over a hundred years. Their similar California surf-inspired aesthetic carries from Abercrombie & Fitch to Abercrombie Kids and Hollister. Although their apparel is similar to American Eagle’s, the company’s marketing strategy targets a “party” crowd by creating a club atmosphere.
Quality-Trendiness Perspective Map
The Gap:
While Gap reaches an older market than AE, they are very similar in style. Gap is a brand that the
American Eagle consumer will grow into as they get older. Gap Inc. has over 3,000 stores world wide and specializes in simple yet sophisticated styles with quality basics. Like the other competitors, they also cater to women, men, and children. Like AEO’s Aerie, they also have an intimates line called Gap Body.
Buckle:
Buckle is a smaller company at only 400 retail stores. The style is edgier than the oth-
er brands and the products are higher quality and have higher prices. A similar consumer would still choose to shop here for the experience. Buckle is successful with their customer service and free alterations, but they lack in a variety of markets. They cater only to young adults.
Prices-Target market Perspective Map
Size of Business
For the 2011-2012 fiscal year, AEO’s net sales totaled at roughly $3,159,818,000. Al-
though that number reflects a 6% increase from the previous year, the company’s profits decreased by 4% due to higher product costs, increased rent, and increased markdowns.
Scope of Business
AEO’s product range focuses on men’s and women’s apparel and accessories, but now includes
kid’s apparel and women’s intimates (Aerie):
Men’s = 40% of sales
Women’s = 51% of sales
Kid’s = 1%
Aerie = 8%
The number of AE brand stores have decreased from 954 to 911 (2008-2011), but this reduction is made up with more than a hundred Aerie and 77kids stores within the last few years. Aerie stores increased from 39-158 (2007-2011) and 77 kids stores increased to 21 stores since its launch in 2010.
Company’s Current Direction
AEO’s recent choices reflect a new direction for the company in which they segregate products
into more specific categories. Opening new Aerie stores and 77kids stores gives customers a more focused product selection and thereby improves shopping experience. For example, Aerie focuses on women’s intimates and originated as a section of the American Eagle Brand store. Now, AEO opens several free-standing Aerie stores for customers specifically seeking women’s intimates. Customers shopping intimates may feel more comfortable at a store that is catered to only women rather than a male and female target market, making independent Aerie stores a smart choice for the company.
Enter Jansport and the pop-up Shop
After
discovering a recent collaboration between JanSport and American Eagle, it
became apparent that JanSport was working to reach out to the college market. Based on our Millennial research we not only discovered the high spending power of this generation, but also their desire for experience and integration with technology. We decided to create a pop-up shop that not only meets this generation’s wants, but also fits their lifestyle.
JanSport Mission Statement: to create reliable products that enable the freedom to
experience life’s adventures
Generation Y often pursues spiritual growth through traveling and “finding themselves”,
which mimics the JanSport mission. Since
American Eagle has already nailed the college
consumer and JanSport has the products college students need, they make the perfect pair.
Pop-Up Shop Objectives JanSport:
• To “re-vamp” the company • Reach out to the college consumer • Promote luggage line • Showcase trendy backpack designs
American Eagle: • Promote education
• Amplify accessories sales • Create a memorable back-to-school event • Bring awareness about AE Better World
AE Better World
The company uses AE Better World to better improve social responsibility through a wide scope
of ways, ranging from supply chain concerns to involvement in local communities. Our research has shown that customers are more aware of corporate social responsibility than ever and are more willing to support and purchase from retailers with better ethics and values. AE consumers connect more on an emotional level rather than just focusing on material value; they like to know that their actions, even an action as small as purchasing a pair of jeans, will somehow make the world a better place.
Our pop-up shop wil inform students about AE Better World and the variety of programs
that AEO sponsors; which includes Jumpstart, Student Conservation Association (SCA), and Big Brothers Big Sisters. The SCA is a national conservation organization powered by high-school and college volunteers to better the environment. AEO already helps the SCA recruit volunteers on more than 300 campuses and high schools. The pop-up shop will be an opportunity for students to get involved with their passions through AEO’s sponsorships like SCA, which offers internship opportunities as well. This way, AEO is not just informing students of their environmental objectives but also getting students physically involved with the company and community.
Pop-Up Shop Rationale Who: American Eagle Outfitters and JanSport What: Back-to-School Pop-Up Shop Event When: August 31-September 1, 2013; 10am-10pm (the weekend before school starts) Where: Northeastern University, Centennial Commons in Boston (home to over 80 colleges) Why: To provide you with the latest back-to-school fashion and music event!
Centennial Common is a large park area where students can relax and hang out on campus. It is
open, inviting, and easily accessed from the streets.This layout shows a basic layout of the pop-up shop.
Main TentThis is where the majority of the JanSport and American Eagle products will be sold. There will also be an information booth for AE Better World. When a customer signs up for the AE Better World e-mail list, they recieve a giftcard and will be entered into a raffle drawing for more free products.
Food tentFree food will be provided to keep people hanging around all day. When the shop opens there will be coffee and bagels. Later in the day, there will be veggie / turkey burgers, popcorn, cotton candy, and lemonade.
StageEach evening from 5-10pm, there will be local bands playing as background enjoyment.
Aesthetic and Ambiance
Our research proves that a major way that Generation Y obtains culture is through music. Bring-
ing in local bands will get the community involved and add that “cool� factor of unknown musicians. The concert will provide a reason for people to stay at the shop, give students a social gathering to celebrate the end of summer, and an experience they will remember from American Eagle and JanSport.
The aesthetic is outdoor, beachy themed to represent both AEO and JanSport, but technol-
ogy is incorporated to appeal to Millennial college students.
1.) Cube life size touch screen look-books to be placed near the main
tent to showcase back-to-school looks.
2.) Organic blankets for groups sitting in the grass. 3.) Upcycled benches made from old surf boards to be placed
throughout the park.
1.) 2.)
3.)
Aesthetic and Ambiance Continued
The ambiance of the main tent will be open and inviting. Lanterns and flowers
will adorn the tent to bring the beach atmosphere to life. There will be furniture just outside of the tent for guests to relax. The side of the tent will be open for easy in-andout access. The roof will be see-through to bring in natural sunlight and night stars.
c
Products
Inside the main tent will be a display of products. The
products in stock will be primarily backpacks and accessories, but there will be samples of denim, apparel, luggage, and other items. Live models will walk around with iPads for customers to purchase the clothing they are wearing and anything else they see in the look-books and displays.
Branding
The branding of this pop-up shop is
very eco-friendly.The hang tags, gift cards, and shopping bags will be made from recycled materials.This is to promoteAE Better World and to cater towards the college customer’s desire to help the environment. The idea of the re-usable shopping bags is for consumers to go green and to remember this AE JanSport event every time they use it. The gift cards will be handed out in hopes that they will come into AE stores and purchase other items. There is an American Eagle store conveniently located less than a mile away from the event. The hang tags are specifically designed for the JanSport AE products and has the joint mission statement of the two brands on the back. There is also a website and QR code for the consumers to further research the collaboration.
The idea of the green earth logo is to showcase the company values and how they are car-
ing for the environment. This will bring loyal college consumers to American Eagle and JanSport.
Marketing and Crowdsourcing
To successfully spread the word about this weekend-long pop-up shop and to get college stu-
dents excited, we came up with a few promotions. There will be posters printed and placed in AE stores all over Massachusetts, in local coffeeshops, and other locations where young students hang out. They will also be posted on the AE and JanSport websites, social media (facebook, twitter, instagram, and tumblr), and projected as slide previews before major blockbuster films in the Boston area this summer.
One way to generate interest in the pop-up shop will be through the “Backpack Print Con-
test.” The contest will be announced early in the summer and asks students to design a repeat print for a JanSport-AEO backpack to be featured at the pop-up shop. The winner will win $1,000 and have the design produced and sold at the event. Additionally, the design submissions will give both AEO and JanSport an extensive idea of what designs, colors, and trends their target market is leaning towards. Contest entries also require personal information such as university or high school name, birth date, and email address, which will extend AEO’ and JanSport’s consumer data.
Marketing Continued
The last marketing poster will be about the concert series. Millennials like to experience culture
through music, so creating a concert series for the pop-up shop seemed like a perfect way to target that age bracket. There will be different local bands featured both evenings. The idea is to provide entertainment, a cool ambiance, and to involve the Boston community. It is a great opportunity for the bands performing because the concert will be streamed live in American Eagle stores throughout the country.
The stage will have screens on both sides that will show images of AEO and JanS-
port products. In between performers there will be video clips advertising the latest American Eagle and JanSport apparel, as well as informative videos about AE Better World. This will be the ultimate back-to-school experience for Northeastern University and surrounding colleges. Northeastern alone has over 20,000 students enrolled, from all fifty states in the U.S.A. We are hoping to reach out to as many of these students as possible.
Another
mar-
keting strategy we are using to generate buzz about the pop-up shop is a search for new talent. American Eagle and JanSport will be holding an open model casting call in order to involve college consumers in this event. This way the brands find new models for future events and they also have local models for the pop-up shop. Not only will it cut back on traveling fees, but the local models will most likely be students from the area who will tell all of their friends to come see
them
modeling
at the American Eagle JanSport pop-up shop. The goal is to bring more people to the shop and showcase the latest back-to-school apparel that will soon hitAEO stores. Models will be given the clothes they wear so they will continue to wear AE fall merchandise on their own campuses throughout the semester. This will also generate buzz on social media platforms as the models and their friends photograph themselves throughout the event.
For More information. . . Visit :
•www.ae.com •www. jansport.com/js_americaneagle Contact AE Better World:
•AEBetterWorld@ae.com