American Eagle

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To: Prof. Irizarry
From: Delila M. Calderon, BA 11
Date: 12/6/12
Subject: American Eagle Outfitters

American Eagle Outfitters is a popular clothing company with innovative, exciting and creative strategies. For many years AEO has focused on the same target market of 15 – 25 year old male and females, and with the right mix of casual and fashionable products, these two things add to the brands success and identity. AEO clearly defines its marketing strategy and products to a “Back to basics” approach. Furthermore, AEO believes they should target woman more and provide them with more accessible products; in fact, they are making their companies merger Aerie more commercialized and in the forefront.

American Eagle Outfitters targets 15-25 year old male and females who desire fashionable, yet affordable, all American, casual lifestyle apparel. Typically their target market is a collegiate seeking the most new and popular brands around. Their success really stems upon this group, and one reason is because customers in this group tend to spend and shop more than any other age group. Although, building their target market is important, building the AEO brand comes first and foremost among the company’s many strategies.

Improving profitability, differentiating the company from its competitors and consistently increasing net sales depends on the strategies of marketing, merchandising the products. AEO provides value to its target market through fashionable interpretations of fundamental wardrobe items, such as basic jeans, sweaters, T-shirts and Khakis through their products. However, the low proportion of fashion focused products can have a mitigating effect on the AEO’s growth. Their product price points are competitive when compared to the quality of the apparel and the competitor’s apparel. AEO designs its own merchandise with an in-house team of designers; therefore, providing them with a competitive advantage. This allows...
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