American Eagle Outfitters, often simply referred to as American Eagle, is a well-established and widely recognized American clothing and lifestyle brand with a rich history spanning several decades. Founded in 1977, the company has evolved into a major player in the fashion retail industry, known for its trendy and casual apparel, particularly popular among young adults and teenagers.
American Eagle Outfitters, Inc. is a Pittsburgh-based clothing and accessories retailer that was founded in 1977 by brothers Jerry and Mark Silverman. The company was originally a subsidiary of Retail Ventures, Inc., which also owned and operated Silverman’s Menswear. In 1991, the Silvermans sold their ownership interests to Jacob Price of Knoxville, Tennessee.
American Eagle Outfitters is the parent company of Aerie and Todd Snyder. The company operates over 1,200 stores in the United States, Canada, Mexico, China, Hong Kong, Japan, and the United Arab Emirates. It also sells its products online through its website, ae.com.
At its core, American Eagle is more than just a brand; it represents a lifestyle and a sense of self-expression. The company’s mission has always been to provide its customers with high-quality, comfortable, and stylish clothing that reflects their individuality and personal style. This commitment to authenticity and inclusivity has allowed American Eagle to foster a strong and loyal customer base.
American Eagle Outfitters’ products include apparel, footwear, accessories, and intimates for men and women. The company’s target market is young adults, ages 15-25. American Eagle Outfitters is known for its casual, relaxed clothing styles.
Some of the company’s most popular products include jeans, T-shirts, polos, sweaters, outerwear, and swimwear. American Eagle Outfitters also offers a variety of accessories, such as bags, hats, belts, and jewelry.
In recent years, American Eagle Outfitters has focused on expanding its e-commerce business. The company has also launched several new brands, including Aerie and Todd Snyder. Aerie is a lingerie and intimates brand for women, while Todd Snyder is a menswear brand that is designed by Todd Snyder.
American Eagle Outfitters is a publicly traded company. Its stock is listed on the New York Stock Exchange under the ticker symbol “AEO”.
Founding History of American Eagle Outfitters
The founding history of American Eagle Outfitters is a testament to entrepreneurial spirit and a keen understanding of the evolving fashion landscape in the late 20th century. American Eagle’s journey began in 1977 when two brothers, Jerry and Mark Silverman, decided to venture into the retail industry with a vision of offering a unique and more affordable alternative to the prevalent denim-focused fashion of that era.
Jerry and Mark Silverman were inspired by their father, Israel Silverman, who had a background in the retail business. Drawing from their father’s experiences and expertise, the Silverman brothers saw an opportunity to cater to a younger audience seeking fashionable yet reasonably priced clothing. They recognized that the fashion industry was predominantly catering to an older demographic and believed there was a gap in the market for stylish, casual wear for teenagers and young adults.
In the beginning, the Silvermans opened their first store in Novi, Michigan, under the name “Retail Ventures.” However, they soon realized that this name did not align with their brand’s image and the products they aimed to offer. In 1978, they rebranded the store as “American Eagle Outfitters,” inspired by the majestic and free-spirited American bald eagle, which symbolized their vision of youthful freedom and individuality.
From the outset, American Eagle Outfitters set out to create a brand that spoke to the younger generation. They wanted to provide clothing that allowed young people to express their individuality and confidence while feeling comfortable in their own skin. Denim jeans, in particular, became a focal point for the brand, offering a range of fits, styles, and washes to appeal to various tastes.
American Eagle’s commitment to quality and affordability struck a chord with its target demographic, and this resonated through its products. The brand’s popularity grew steadily, leading to the opening of more stores across the United States. By the early 1980s, American Eagle had established a strong presence in the retail market.
In 2006, American Eagle introduced “Aerie,” a sub-brand focused on intimate apparel and loungewear for women. Aerie aimed to promote body positivity and inclusivity, challenging unrealistic beauty standards prevalent in the fashion industry.
Today, American Eagle Outfitters has evolved into a prominent lifestyle brand with a diverse range of products, including jeans, tops, accessories, and activewear. The company’s commitment to sustainability, social responsibility, and inclusivity has contributed to its enduring success.
The founding history of American Eagle Outfitters reflects the vision of two brothers who recognized an untapped market and had the entrepreneurial spirit to create a brand that resonated with the youth of their time. This commitment to authenticity and understanding of their target demographic’s needs has allowed American Eagle to not only survive but thrive in the competitive fashion industry.
Marketing Strategy of American Eagle Outfitters
American Eagle Outfitters has employed a comprehensive marketing strategy that combines various elements to resonate with its target audience of young adults and teenagers. This strategy has played a significant role in establishing American Eagle as a prominent brand in the fashion retail industry. Here is a detailed breakdown of their marketing approach:
1. Target Audience Segmentation
American Eagle Outfitters uses target audience segmentation as a marketing strategy to reach its target market of young adults, ages 15-25. The company divides its target market into several segments, including:
- Gender: American Eagle Outfitters markets its products to both men and women. However, the company’s marketing campaigns are typically targeted towards women.
- Age: American Eagle Outfitters’ target market is young adults, ages 15-25. The company’s marketing campaigns often feature young models and celebrities.
- Income: American Eagle Outfitters’ products are typically priced affordably, making them accessible to young adults with a variety of income levels.
- Geographic location: American Eagle Outfitters has stores in major cities and college towns across the United States. The company also sells its products online, making it accessible to young adults in all parts of the country.
- Lifestyle: American Eagle Outfitters’ target market is young adults who are active, stylish, and social. The company’s marketing campaigns often feature images of young people hanging out with friends, going to parties, and participating in sports and other activities.
By segmenting its target market, American Eagle Outfitters is able to tailor its marketing messages and products to the specific needs and wants of its target audience. This helps the company to reach its target market more effectively and efficiently.
2. Brand Image and Values
Brand image and values play a pivotal role in American Eagle Outfitters’ marketing strategy. The brand’s image is a reflection of its core values, which are carefully cultivated and communicated to its target audience. Here’s a detailed exploration of how brand image and values serve as a marketing strategy for American Eagle:
Brand Image:
- Youthful and Authentic: American Eagle projects an image that resonates with young adults and teenagers. It exudes a sense of youthfulness, freedom, and authenticity, making it relatable to its target demographic.
- Casual and Relaxed: The brand’s image is characterized by a laid-back and casual aesthetic. This appeals to customers seeking comfortable yet stylish clothing for everyday wear.
- Inclusive: American Eagle actively promotes inclusivity, celebrating diversity in its advertising campaigns by featuring models of different body types and backgrounds. This fosters an image of acceptance and body positivity.
- Trendy Yet Timeless: While the brand stays up-to-date with fashion trends, it also maintains a timeless quality in its product offerings, ensuring that customers can find both trendy and classic pieces.
Core Values:
- Individuality: American Eagle’s core value centers on celebrating individuality and self-expression. The brand encourages customers to be comfortable in their own skin and express their unique style.
- Inclusivity: One of the brand’s fundamental values is inclusivity. American Eagle promotes body positivity and inclusiveness in its campaigns and product range, challenging traditional beauty standards.
- Authenticity: Authenticity is at the heart of the brand’s values. American Eagle strives to maintain a genuine and real connection with its customers, fostering trust and loyalty.
- Responsibility: The brand is committed to social responsibility and sustainability. It values responsible business practices, including using eco-friendly materials and supporting charitable initiatives.
American Eagle Outfitters’ marketing strategy leverages its brand image and core values to create a compelling and authentic connection with its target audience. By celebrating individuality, promoting inclusivity, and embracing social responsibility, the brand has successfully established itself as a trusted and relatable choice for young consumers seeking both style and substance in their clothing choices.
3. Product Line and Merchandising
American Eagle Outfitters offers a wide variety of products for men and women, including:
- Apparel: American Eagle Outfitters offers a wide variety of apparel, including jeans, T-shirts, polos, sweaters, outerwear, and swimwear. The company also offers a variety of accessories, such as bags, hats, belts, and jewelry.
- Intimates: American Eagle Outfitters also offers a lingerie and intimates brand called Aerie. Aerie is known for its body-positive advertising campaigns and its commitment to using sustainable materials.
- Footwear: American Eagle Outfitters offers a variety of footwear, including sneakers, boots, sandals, and flip-flops.
- Home goods: American Eagle Outfitters also offers a small selection of home goods, such as candles, throw blankets, and pillows.
American Eagle Outfitters’ product line is constantly evolving to reflect the latest trends. The company also works with a variety of influencers and celebrities to promote its products.
American Eagle Outfitters’ merchandising strategy is focused on creating a shopping experience that is both fun and inviting. The company’s stores are designed to be open and airy, with plenty of natural light. The merchandise is organized in a way that is easy to shop, and the company’s employees are friendly and knowledgeable.
4. Customer Engagement
One of AEO’s key marketing strategies is customer engagement, which involves creating meaningful connections between the brand and its audience. Here are some ways AEO uses customer engagement as a marketing strategy:
Social Media Presence: AEO maintains active profiles on multiple social media platforms, including Instagram, Twitter, Facebook, TikTok, and Pinterest. By regularly posting high-quality content featuring trendy fashion items, behind-the-scenes glimpses into the brand, and user-generated content, AEO keeps its followers engaged and interested in what the brand has to offer.
Influencer Partnerships: AEO collaborates with influencers across different industries, such as music, entertainment, sports, and lifestyle, to promote its products and create buzz around the brand. For example, AEO partnered with singer Billie Eilish to launch a limited edition collection inspired by her personal style.
Interactive Campaigns: AEO often runs interactive campaigns designed to encourage customer participation and engagement. For instance, the #AExME campaign encouraged users to share photos showcasing how they express themselves through fashion, and winners were featured on the brand’s website or social media accounts.
Loyalty Programs: AEO offers a loyalty program called “American Eagle REAL,” which rewards members with exclusive discounts, early access to sales, and other perks. This program fosters brand loyalty among customers and encourages repeat purchases.
Overall, AEO’s focus on customer engagement allows them to build strong relationships with their target audience, increase brand awareness, drive traffic to stores and online shops, and ultimately boost sales.
5. In-Store Experience
American Eagle Outfitters (AEO) has always been a leader in the retail industry when it comes to in-store experience. The company has a number of strategies in place to create a positive and memorable shopping experience for its customers, including:
High-energy atmosphere: AEO stores are designed to be fun and exciting places to shop. The lighting is bright, the music is upbeat, and the displays are eye-catching. This creates a positive and engaging atmosphere that makes customers want to stay and shop.
Friendly and knowledgeable staff: AEO employees are known for being friendly and helpful. They are trained to know the products inside and out and to help customers find what they are looking for. This personal touch makes customers feel valued and appreciated.
Interactive experiences: AEO stores offer a variety of interactive experiences that make shopping more fun and engaging. For example, customers can try on clothes in virtual fitting rooms, play games on interactive touchscreens, or get their picture taken with their favorite AEO models. These experiences help to create a memorable and enjoyable shopping experience.
Convenient amenities: AEO stores offer a variety of convenient amenities that make shopping easier and more enjoyable. For example, stores typically have free Wi-Fi, charging stations, and comfortable seating areas. These amenities make it easy for customers to stay and shop for as long as they want.
AEO’s in-store experience strategy has been very successful. The company has consistently ranked high in customer satisfaction surveys, and its stores have been recognized for their innovative design and atmosphere.
Here are some of the specific in-store initiatives that American Eagle Outfitters has implemented to improve the customer experience:
- Reserve, Try & Buy: This program allows customers to reserve an item online or in the app and then try it on in store. If they don’t like it, they can return it without having to pay for shipping.
- Beacon technology: AEO uses beacon technology to send push notifications to customers’ phones when they enter a store. These notifications can be used to promote products, offer discounts, or simply let customers know about new arrivals.
- Virtual fitting rooms: AEO’s virtual fitting rooms allow customers to try on clothes using augmented reality. This helps customers to see how clothes will look on them before they buy them.
- Personalized shopping experiences: AEO offers personalized shopping experiences through its app and website. Customers can create a profile and then receive recommendations for products based on their style and preferences.
6. International Expansion
International expansion is a key marketing strategy for American Eagle Outfitters (AEO). The company has been expanding its international footprint for the past several years, and it now has stores in over 20 countries.
The global apparel market is growing rapidly. In 2022, the global apparel market was worth an estimated $1.7 trillion, and it is projected to grow to $2.2 trillion by 2027. This growth is being driven by a number of factors, including rising incomes in developing countries, increasing urbanization, and the growing popularity of online shopping.
Second, AEO sees international expansion as a way to reach new customers. The company’s target market is young adults, and this demographic is growing rapidly in many parts of the world. For example, the population of young adults in China is expected to grow by 200 million by 2030.
Third, international expansion can help AEO to reduce its reliance on the US market. The US market is still AEO’s largest market, but it is becoming increasingly saturated. By expanding into new markets, AEO can diversify its revenue and reduce its risk.
AEO has a number of strategies for expanding internationally. The company has opened stores in key markets, such as China, Mexico, and Canada. It has also partnered with local retailers to distribute its products. In addition, AEO has invested in e-commerce, which allows it to reach customers in countries where it does not have physical stores.
AEO’s international expansion has been successful so far. The company’s international sales have been growing at a faster rate than its domestic sales. In 2022, international sales accounted for 25% of AEO’s total revenue. However, in 2022 AEO decided to temporary shut down stores in China because of financial losses owing to COVID-19.
American Eagle Outfitters’ marketing strategy is built on the principles of inclusivity, authenticity, and a deep understanding of its target demographic. Through a combination of traditional advertising, digital marketing, and a focus on customer engagement, they continue to thrive in the competitive fashion industry. Their commitment to staying current with fashion trends and addressing social issues ensures their brand remains relevant and resonates with their loyal customer base.
Marketing Mix of American Eagle Outfitters
The marketing mix, often referred to as the 4Ps (Product, Price, Place, and Promotion), is a fundamental framework used by businesses to develop and implement their marketing strategies. Let’s break down the marketing mix of American Eagle Outfitters in detail:
Product:
American Eagle Outfitters (AEO) primarily offers clothing and accessories, targeting young adults and teenagers. Their product mix includes:
- Apparel: AEO is known for its casual and trendy clothing items, including jeans, tops, outerwear, and swimwear.
- Accessories: This includes items like belts, bags, hats, and jewelry.
- Footwear: A range of shoes, including sneakers, sandals, and boots.
- Lingerie and loungewear: AEO also offers undergarments and comfortable clothing for both men and women.
- Fragrance and personal care: They sell fragrances and personal care products under the brand “Don’t Ask Why.”
AEO is known for its emphasis on inclusivity, diversity, and body positivity, with a wide range of sizes and styles to cater to various customer preferences.
Price:
American Eagle Outfitters positions itself as an affordable and accessible brand for its target demographic. They use a pricing strategy that balances quality and price to appeal to young consumers. Pricing may vary across different product categories and styles, with premium prices for certain limited-edition or specialty items.
Additionally, they often run promotions and discounts, such as buy-one-get-one deals, to attract budget-conscious shoppers. AEO also has a loyalty program called “Real Rewards,” which offers discounts and rewards to frequent shoppers.
Place:
Distribution and location are crucial for American Eagle Outfitters’ marketing mix:
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- Retail Stores: AEO operates numerous brick-and-mortar stores across the United States and globally. These stores are strategically located in shopping malls, high-traffic areas, and popular shopping districts.
- Online Store: AEO has a robust e-commerce platform, which allows customers to browse and purchase products online. This online presence enables them to reach a broader audience, including those who prefer shopping from the comfort of their homes.
- International Presence: American Eagle Outfitters has expanded its reach internationally by opening stores in various countries and shipping products worldwide.
- Partnerships: AEO may also collaborate with other retailers or platforms to extend their reach.
Promotion:
Promotion involves all the activities AEO uses to communicate its brand and products to potential customers. Their promotional strategies include:
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- Advertising: This includes TV commercials, online advertising, and social media campaigns to create brand awareness and promote specific product lines.
- Social Media: AEO has a strong presence on platforms like Instagram, Twitter, and Facebook, where they engage with their audience, share fashion trends, and promote special offers.
- Email Marketing: Sending newsletters and promotional emails to subscribers to inform them about sales, new arrivals, and exclusive offers.
- Influencer Marketing: Collaborating with influencers and fashion bloggers to showcase AEO products and trends.
- In-Store Promotions: Offering in-store discounts, loyalty programs, and events to encourage in-person shopping.
- Community Engagement: AEO actively engages with its community by supporting various social causes and promoting body positivity.
American Eagle Outfitters’ marketing mix is designed to resonate with its target audience of young adults, emphasizing affordability, inclusivity, and a strong online and offline presence. By effectively managing these elements of the marketing mix, AEO aims to maintain its position as a popular and successful fashion retailer. Please note that specific strategies and tactics may change over time as market conditions and consumer preferences evolve.
Also Read: Marketing Strategies and Marketing Mix of Supreme
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