Case Analysis - Eddie Bauer
Eddie Bauer Analyzes High Value Customer Segments
Marketing Plan
Executive Summary In 1999 Eddie Bauer was a $2 billion apparel retailer, generating 25% of its revenue from its catalog operation and the remainder through its 600 stores. Eddie Bauer operated in the textile clothing industry in the United States, Canada, Japan, UK and Germany. The
company sold causal and office wear clothing to men and women, which is what we will be focusing on. Moreover, they also had eyewear, bicycles, furniture and home furnishings. They marketed their products in three segments, retail stores, catalogs and Internet websites. Eddie Bauer had 555 retail stores located in the United States. They produced and distributed over 4 million catalogs annually. In 1998, there was a 5% decline in same-store sales and bigger decline in profits. Based on the research survey results of many focus groups and in-depth segmentation analysis, CEO Rick Fersch decided on Communications policy of “One Brand, One Voice, One Customer”.
Situation Assessment and Analysis EXTERNAL ANALYSIS - Threat of Rivals The retail clothing industry has many different players that offer a wide range of products and services. The clothing industry has done rather well, but they are trying to capitalize even more by offering online shopping and mail orders. Eddie Bauer had a large threat of rivals because there were such vast arrays of clothing stores that sell active wear. Eddie Bauer had close competitors such as GAP, Abercrombie & Fitch, Victoria’s Secret, Lands’ End and L.L. Bean being the top five. Their top competitors were not closely related to them when it comes to the number actual retail store locations, but they offered relatively the same catalog and online services. Although, Eddie Bauer had strong brand recognition they did still have a lack of product differentiation. Looking closer at the major rivals it is easy to see that they posed a problem for Eddie Bauer.
Marketing Plan
Executive Summary In 1999 Eddie Bauer was a $2 billion apparel retailer, generating 25% of its revenue from its catalog operation and the remainder through its 600 stores. Eddie Bauer operated in the textile clothing industry in the United States, Canada, Japan, UK and Germany. The
company sold causal and office wear clothing to men and women, which is what we will be focusing on. Moreover, they also had eyewear, bicycles, furniture and home furnishings. They marketed their products in three segments, retail stores, catalogs and Internet websites. Eddie Bauer had 555 retail stores located in the United States. They produced and distributed over 4 million catalogs annually. In 1998, there was a 5% decline in same-store sales and bigger decline in profits. Based on the research survey results of many focus groups and in-depth segmentation analysis, CEO Rick Fersch decided on Communications policy of “One Brand, One Voice, One Customer”.
Situation Assessment and Analysis EXTERNAL ANALYSIS - Threat of Rivals The retail clothing industry has many different players that offer a wide range of products and services. The clothing industry has done rather well, but they are trying to capitalize even more by offering online shopping and mail orders. Eddie Bauer had a large threat of rivals because there were such vast arrays of clothing stores that sell active wear. Eddie Bauer had close competitors such as GAP, Abercrombie & Fitch, Victoria’s Secret, Lands’ End and L.L. Bean being the top five. Their top competitors were not closely related to them when it comes to the number actual retail store locations, but they offered relatively the same catalog and online services. Although, Eddie Bauer had strong brand recognition they did still have a lack of product differentiation. Looking closer at the major rivals it is easy to see that they posed a problem for Eddie Bauer.