An example of Aeropostale marketing strategy presentation

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This presentation is an example of proposed new marketing strategy for Aeropostale Brand. Prepared for Marketing Strategy Class

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An example of Aeropostale marketing strategy presentation

  1. 1. Marketing Plan Igonkina Yulia # 4231764
  2. 2. Organizational Background       American retailer founded in 1987, New York. Represented by Apparel Group in the UAE since 2009 CEO Nilesh Ved. UAE: 850 stores and 7000 of staff Aeropostale: 14 stores in Dubai, Abu Dhabi, Sharjah and Fujeirah Fashionable high quality clothes for teenagers at value prices Exclusive control of the brand by designing, sourcing, marketing and selling the merchandise.  The products are sold only in Aeropostale stores (UAE and USA) or online at www.Aéropostale.com (USA)
  3. 3. Retail Industry in the UAE  Retail - one of the most profitable industries in Gulf countries and expected to grow to 151 billon dirham till 2015  UAE teenagers spent 3 times more than their peers globally. Young people from 12-19 spend 71 $ a week compare to 21$ a week in the other parts of the world ( National, 2012)  According to the Alpen Capital GCC retail sales is expected to increase at CAGR (Compound annual growth rate) of 8,3 % till 2015  The e-commerce sales are expected to increase up to $15bn by 2015,  UAE topped the list, it was also called number one in GCC for cyber security and fourth globally ( AMEinfo, 2013)  UAE - number one in global smartphone penetration with 73.8 %
  4. 4. Objectives  To improve the brand image and increase the rate of customer loyalty by 40%  To increase the sales per store by 15% till 2015  To establish the E-commerce distribution channel and mobile applications for the E-shopping and M-shopping for the UAE by 2015
  5. 5. Challenges • • • • • Strong competitors Seasonality High volatility of teenage market Direct Competitors: American Eagle Outfitters and Gap Indirect Competitors: H&M and Forever 21
  6. 6. Competencies Streamlined Supply Chain Integrated State of Art Facilities Excellent Media Relationships Market Intelligence Well-trained Sales Team & Strong relationships with Mall owners Experts in Casual Clothing Aggressive Brand Building Campaign The first mobile loyalty program in the region
  7. 7. Target customers • • • • • • • • • Females , 18-25 years old, Students and Young professionals (Millenium generation) Medium disposable income; working and middle class; The places of living: Dubai, Abu Dhabi and Sharjah Mostly live with parents–resource constrained Personality- outgoing, social, cheerful, with positive life outlook, but yet ambitious Influenced with opinion of friends. Like to socialize in the shopping mall Value product allowing them look trendy, rich, feel comfortable and be savvy in money Functionality: The product to be worn from Uni/ work to go out with friends in the evening Listen to popular music, Read- Fashion Magazines Like to engage through social media, Instagram and Pinterest themselves- Selfie
  8. 8. Strategic Recommendations •      •     To improve the brand image and increase loyalty the next steps are recommended: Brand re-positioning via integrated marketing strategy for consistent message: Social media: Facebook, Twitter, Instagram, Pinterest Advertisement: Printed Media (Ahlan Magazine) Physical store Aeropostale Digital channel (to be develop till 2015) Differentiation : New unique products development Example- Limited edition or Capsule collection - Designer Cooperation CSR initiatives and events Skilled sales force and “wow’ factor customer service
  9. 9. Product: Tunic
  10. 10. Product: Fashion Tunic     The need product satisfies: Esteem need Type of innovation: incremental (performance improvement and higher perceived value) Core product: style, convenience, comfort, confidence, uniqueness, admiration of the peers. Actual product: American brand, light material suitable for the UAE climate (Chiffon, Cotton). Available in 3 latest colours of season: lavender, tropical blue and pink. Style-casual chic- latest trends  Augmented: Doesn’t exist in portfolio of other brands; created in cooperation with famous local designer. Stylist advice on casual chic look from our sales force, high touch points through the loyalty program  Potential product: Change in look of the product, materials, colors and decorative elements depending on season and the trends
  11. 11. Place • • • • • • Type of distribution: Exclusive through the Aeropostale stores in the UAE only (Apparel group) in all the leading shopping malls (Emirates Mall, Dubai Mall) Type of agreement: Contractual vertical marketing system agreement- franchise Two level marketing channel: manufacturer-wholesaler-retailer-consumer Plus - More dedicated and knowledgeable retailer, strong control over brand and products Minus - Aeropostale loses profit because it doesn’t have established e-commerce channel for the UAE Can’t sell it’s products through the other retailers
  12. 12. Promotion           Objectives: To modify the attitudes of the consumers towards Aeropostale To inform the customers about the new product and communicate its value features To persuade the customers to try and purchase the new product To send the consistent message with a clear tagline over integrated marketing communications: Life is easy. Casual chic collection- Aeropostale Social media: Facebook, Twitter, Instagram, Pinterest Advertisement: Printed Media (Ahlan Magazine) Sales Promotion (Customer Contest) Personal Selling (Style advice from Sales team) Events (Product launches and CSR)
  13. 13. Price • • • • • • • 100 DHS- Benchmark of competiton (70 dhs per blouse H&M) Value pricing –no heavy discounts Discounts of 30-50 % in the end of the season to drop old merchandise and special occasions (Eid , Christmas) Price is fair if to compare benefits versus costs Benefits-unique product, American brand, high quality, latest fashion, beauty, fashion advice, high touch points Costs: lower brand image, available in leading shopping mall, so doesn’t require big efforts Higher benefits-lower costs
  14. 14. Budget Marketing Budget Aeropostale 2014-15(Quarterly) Potential Segment Penetration Total Revenue(AED) Expenses Budget (10%) Collaboration with designer Print Advertisement(Ahlan Magazine) In-store event Facebook advertisement Instagram profile (Free) Pinterest (Free) Twitter advertisement Personal Selling(Employee training) Sales Promotion (Contest) POP display( Promotional Materials) Total Expenses Profit (AED) Price per item 100 dhs Projected profit per segment per year2014 Advertising Budget for year(10%) Expected profit after ad expense 2014 Obtained profit 2014 2014 2015 Jan-March April-June July-Sep Oct-Dec Jan-March April-June July-Sep Oct-Dec 15,000 30,000 38,000 27,464 20,000 35,000 40,000 45,464 1,505,650 3,300,000 3,500,000 2,746,400 2,000,000 3,500,000 150,000 105,000 18,400 8,556 2,825 2,825 8,556 70,000 17,112 2,825 2,825 17,112 12,000 2,825 2,825 12,000 35,000 20,000 15,000 2,825 2,825 15,000 200,000 105,000 20,000 9,000 2,825 2,825 9,000 10,000 100,000 200,650 135,300 10,000 60,000 553,950 135,300 50,000 481,462 10,000 60,000 109,874 13,000 100,000 212,650 40,000 70,000 20,000 2,825 2,825 20,000 25,000 2,825 2,825 25,000 70,000 20,000 18,000 2,825 2,825 18,000 12,000 70,000 167,650 15,000 110,000 250,650 20,000 110,000 261,650 1,024,188 3,190,126 3,287,350 2,545,750 1,446,050 3,332,350 11,046,400 1,104,640 9,941,760 10,047,414 4,000,000 4,546,400 3,749,350 4,284,750 Price per item 110 dhs Projected profit per segment 2015 15,451,040 Ad.Budget 18% 1,233,900 Obtained profit 2015 12,812,500

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