2001-2009: Teamed with American Recreation Products
Neil S. Fiske new president and CEO
June 2009: Filed Chapter 11 bankruptcy protection
To give you such outstanding quality, value, service and guarantee that we may be worthy of your high esteem.
Every item we sell will give you complete satisfaction or you may return it for a full refund.
Started with outdoor clothing and sporting equipment
Introduced casual lifestyle; emphasis on women apparel and accessories
Cross Branding Partnership
Introduced Home Collection
Bags & Gear
Alpental Sport Dome Tent $99 Superior Down Parka $249. Harness Boots $199. Sleeping Bag Eddie Bauer Ford Explorer Crib Bedding Ensemble $144
Brand Name & Logo Licensing
Struggled because of competition like L. L. Bean, Land’s End, Abercrombie & Fitch, J. Crew and American Eagle Outfitters.
Changed merchandising strategy 3 times since 1995.
First expanding its dress casual collection, then going after younger
urban customers, and lastly on dressier apparel.
These switches alienated its core customers.
In 2002, developed marketing campaign to revamp its image of rugged outdoor wear.
Primary target customers are women and men
30-54 years old
Have an average annual household income of $77,000
Good business does not just start from an idea, but the core element to making it work is to tap into the Target Market.
Who are your users What are their goals
Results of the internal analysis describing their
competencies in their value chain activities:
Offer high quality products at average prices. Prices are comparable to GAP, Land’s End and LL Bean
Products and prices are easily accessible online and in catalogues .
Prior to 1999, special promotions were widely used.
In 1999, eliminated the promotions and conducted a study to measure customer behavior across a six month period
Back to Basics
Manufacturing plants are Outsourced
Customer service is Outsourced
“ Complementors ” – create partnerships with other firms whose products go hand-in-hand with their own giving customers value added. Example: Sports Authority, Target
Distribution Channels Eddie Bauer is a complex organization with three core business and three channels apparel Apparel Home Outlet Retail Over 400 Stores Catalog 100M E-Commence www. eddiebauer .com www. eddiebauerhome .com www. eddiebaueroutlet .com
Conducted an internal analysis describing their competencies in their value chain activities and their competitive advantage.
Conducted a study to measure customer behavior by eliminating certain promotions customers had been accustomed to having.
External analysis – soliciting the “Voice of the Customers”
Competitive Analysis Eddie Bauer L.L. Bean Lands’ End The Gap Origin Founded 1920 Eddie Bauer Founded 1912 Leon Leonwood Bean Founded 1960 Gary Comer Founded 1969 Donald & Doris Fisher Products Sportswear, Outdoor Gear Outdoor gear & apparel Casual-style & Urban Chic Stores Worldwide 400 Few retail stores; 15 factory store outlets in Northeast 15 in US; products sold in 860 Sears stores in US 2009 Revenue FY ’10 $1.4 billion, down from $1.5 billion the year before $66.9m. Income rose 93% on a revenue increase of 7.3%. $14.2 billion Sales Channel On-line; catalogs, retail On-line; * catalogs; retail stores (mail out 200 million catalogs) * Catalogs; website; Sears Dept. stores; retail stores Website; Private Labels none none none Banana Republic Old Navy Target Market women & men; 30-54 years old income of $77,000. Upper/middle-class 50 percent men, Male/females 17-25 yrs. old; middle/ upper class; urban/ suburban; career oriented; active; all minorities
Decision Support System (DSS) Store Sales Data 2008 2007 2006 Retail and outlet stores sales: Retail store sales $443.9 $462.1 $455.4 Outlet store sales 158.1 140.6 104.1 Comparable store sales 602.0 602.7 559.5 Non-comparable store sales 95.1 108.7 140.6 Total retail and outlet store sales $697.1 $711.4 $700.1 Catolog and Internet sales 274.2 277.9 256.5 Other merchandise sales 0.0 0.0 0.1 Total merchandise sales $971.3 $989.4 $956.7 Shipping Revenues 34.0 34.2 34.0 Licensing revenues 12.8 13.8 15.7 Foreign Royalty revenues 5.0 6.3 6.6 Other revenues 0.3 0.6 0.4 Total Net sales and other revenues $1,023.4 $1,044.4 $1,013.4 Growth Rate (2.0%) 0.03 (4.3%) Net Income (Loss) ($165.5) ($101.7) ($211.9)
Established Brand Name
Strong Customer Relations
State of the Art Technology
Strong Tri-Channel Platform for customers
Chapter 11 Bankruptcy; 2
Changed merchandising strategy three (3) times
Supply chain-outsourcing manufacturing plants has diminished their profit margin
Pursue distribution network optimization
Back to Basics - Return to rugged roots
Focus more on differentiators (overall quality and Brand image)
Give serious consideration to a merger with one of their competitors (see L.L. Bean example)
Stick with Turnaround Strategy after Bankruptcy
Increase distribution of catalogs domestically and in global markets
Cut in upper-management salary
Expand market share in global markets
Pursue backward integration
Consider a Merger or a consolidation strategy
Short & Long Term Goals
Eddie Bauer is a highly recognized brand in an extremely competitive retail clothing industry.
Have a great deal of work ahead of them before they fully bounce back from their chapter 11 bankruptcy. However, they are one of the leaders in their industry when it comes to technology and customer relations.