American Apparel Case Study
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Case Study on American Apparel By Liza Bain, Aaron Brown-Kert, Andrew Hyde, Maxie Winick and Mark Gronowski For Marketing Management Class Use for educational purposes only
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American Apparel Case Study
- 1. American Apparel Made in LA Natural Beauty Community Aaron Brown-Kert Liza Bain Maxie Winick Sustainability Mark Gronowski Andrew Hyde
- 2. American Apparel Situational Analysis Made in downtown Los Angeles • American Apparel Business Segments: – U.S. Wholesale – U.S. Retail – Canada – International/e-Commerce
- 3. American Apparel Market Summary Made in downtown Los Angeles Target Markets: • Young Urbanites Captured through: • Social consciousness • Lack of visible branding • Quality products • Reasonable pricing • Sexual imagery
- 4. American Apparel Market Demographics Made in downtown Los Angeles • Demographics • Geographics • Psychographics
- 5. American Apparel Market Summary Made in downtown Los Angeles Market Needs •Product Quality •Corporate Social Responsibility •Customer Service Market Trends •Technology Dependency •Casual Attire and Quality Product •Progressive Thinking Market Growth •Forecasted Growth
- 6. American Apparel SWOT Analysis Made in downtown Los Angeles
- 7. American Apparel Made in downtown Los Angeles Marketing Strategy
- 8. American Apparel Marketing Strategy Made in downtown Los Angeles •Market Penetration •New target markets •Customer Retention •Improving public image •Product Quality •Maintaining and improving standards
- 9. American Apparel Mission Statement Made in downtown Los Angeles American Apparel is a vertically integrated clothing company dedicated to creating quality lasting clothing, handmade in America. With the highest standards of excellence, American Apparel sets industry standards of social and environmental responsibility in the workplace while promoting natural beauty, community involvement and sustainability.
- 10. American Apparel Marketing Objectives Made in downtown Los Angeles • Improve brand perception • Refocus on social consciousness • Achieve an increase in market penetration by introducing a plus size line • Increase local marketing activities at store-level
- 11. American Apparel Financial Objectives Made in downtown Los Angeles • Double digit growth rate for each consecutive year • Reduction in costs associated with operating expenses by improving efficiency
- 12. American Apparel Financial Objectives Made in downtown Los Angeles
- 13. American Apparel Strategic Objectives Made in downtown Los Angeles • Introduce a Corporate Social Responsibility campaign • Penetrate the new “full-figured” and “progressive thinkers” target segment • Introduce a new product line that combines American Apparel’s core competencies in product quality and advertising • Create Brand Ambassadors
- 14. American Apparel Target Markets Made in downtown Los Angeles Target Markets: • Young Urbanites • Progressive Thinkers • Full-figured
- 15. American Apparel Positioning Made in downtown Los Angeles • A unique vertically integrated manufacturing system • A business model which concentrates on developing value for customers and the community • Providing a sustainable and sweatshop free alternative to quality clothing
- 16. American Apparel Made in downtown Los Angeles Marketing Mix
- 17. American Apparel Marketing Mix: Product Made in downtown Los Angeles • Quality must continue to be at forefront of American Apparels strategy • Updated merchandise mix • Discontinuation of unprofitable lines • Expand to include plus-size line
- 18. American Apparel Marketing Mix: Place Made in downtown Los Angeles • Hubs for Urban Renewal • College and University towns • E-commerce with an emphasis on E-marketing • Store locations with bright and inviting atmosphere
- 19. American Apparel Marketing Mix: Price Made in downtown Los Angeles • Leave premium price to communicate value • Maximize current profit to increase liquidity • Special-event pricing to draw in more consumers
- 20. American Apparel Marketing Mix: Promotion Made in downtown Los Angeles • Emphasize image of social consciousness • Transformational appeals • Brand Ambassadors: engage consumers, create positive brand image • Public Relations
- 21. American Apparel Sales Forecast Made in downtown Los Angeles
- 22. American Apparel Expense Forecast Made in downtown Los Angeles
- 23. American Apparel Contingency Plan Made in downtown Los Angeles • Difficulties & Risks – Competitors developing clone products at lower price offerings – Plus size clothing line fails to generate additional revenues – Financial burden of labor expenses