Problem Overview
Problem Overview:
American Eagle Outfitters is currently known as a middle-class clothing brand for those seeking a preppy style. It is the namesake brand of American Eagle Outfitters Inc., which includes Aerie and Tailgate clothing companies as well. Recently the company has suffered from decreased sales due to the fact they are competing with new brands offering diverse styles for a much cheaper price. With other brands offering styles becoming more and more popular American Eagle is losing a distinct position for itself in the clothing world often being perceived as boring and aimed at a Caucasian audience only. They are also suffering due to a lack of unique social media presence (they post the same thing on every site). Because of these perceptions companies like H&M and Forever 21 have become the top desired clothing brands for middle-class Americans, hurting their image. Additionally, American Eagle reported losses for their overall sales in 2014.
American Eagle Outfitters needs to be perceived as a store that provides a diverse and high quality look for their consumers that is worth a higher price. To do this, American Eagle Outfitters needs to be differentiated from lower priced retailers. AEO should capitalize on the advantages of being the “All American” brand by redefining what that means in our
current day and age. By changing their brand image and their styles offered AEO can redefine their clothing in the consumer’s mind and create a unique place in the market for themselves. This experience will also reinforce American Eagle Outfitter’s as a high quality brand that is worth the money you pay for it. A public relation’s campaign will help spread the message about the changes the store is making to reach all audiences and create and in-store and online experience that meets their customers needs. By revamping their loyalty program and expanding mobile platforms and social media campaigns AEO can strengthen their brand.
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