American Eagle Outfitters Marketing Plan I. Executive Summary American Eagle Outfitters focuses on selling young and trendy clothing to teen and young adult men and women. They are trying to come up with a concept to reach a larger target market. The Deux Lux brand will be a luxury clothing brand within American Eagle that will be more expensive and more high fashion designs. The plan is that this brand will increase sales by 5% over the next year. It is hoped that this will increase net profit by at least $10,000. In order to determine if the Deux Lux brand is successful, sales figures will be looked at to see if the products are selling or not. II. Business Overview American Eagle Outfitters is in the retail apparel industry. The stores in the United States face competition with The Limited, The Gap, Abercrombie & Fitch, Pacific Sunwear, Hot Topic and Aeropostale. These are retail apparel stores that cater towards young and youthful customers. American Eagle has three different types of stores: American Eagle Outfitters Mainline, Factory, and Aerie. AEO mainline is they typical store that offers the products that are normally offered by American Eagle. Factory is the cheaper American Eagle line; offering plainer tee’s and a lot of the graphic tee’s. The Aerie stores offer women’s bras, underwear, and sleepwear. Typical American Eagle Outfitters women’s shirts will range in price from about $30-$50 and women’s jeans will range in price from $30-$60. In women’s Factory prices for shirts will range from $16-$40 and women’s jeans range from $20-$30. In men’s American Eagle; jeans range in price from $24-$55 and shirts will be anywhere from $30 to $50. In men’s Factory, shirts will be $12-$50 and jeans will be $30-$40. American Eagle is using an omni-channel platform, which means AE will provide seamless shopping experiences across stores and their online channel. The retail environment as a whole is struggling so there for many companies are leaning toward this omni-channel selling. The direct-to-consumer business accounts for just 12% of Gap’s revenues, 9% of Aeropostale’s revenues and 13% of American Eagle’s revenues. The major business and profits comes from the online selling sector.
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