American Eagle has a clear and developed target market. They know who they are selling to. Research on Demographics Now helped to show more information regarding the target market they are trying to reach. According to Simmons Apparel Summary, there are 122,317,721 total households in the US. In 2016, 57.7% of households purchased men’s apparel or accessories in the last 12 months. There were 56.2% of households that purchased women’s apparel or accessories in the last 12 months. In addition, 39.5% purchased bras and 38.5% purchased panties (Simmons, 2017). When looking at the Retail Sales Potential Summary, there is information on how much households typically spend at certain types of retail stores. In a clothing store, the average dollar spent for women is $151.52 and for men is 34.50 (Retail, 2017). This information makes sense because on average men typically buy a single item or maybe two items, while women are more likely to purchase larger quantities. …show more content…
They have stores in mostly urban areas (Market Segmentation, 2017). The clothing and accessories that American Eagle sells target high school and college students, or parents shopping for their children. They do not have much merchandise to accommodate any older age groups. The median household income is $55,159 while the average household income is $79,207 (Retail, 2017). After doing more research, it became clear that while they do not target a specific ethnicity, it is typically Caucasian men and women that shop at American
1.) Home furnishings and miscellaneous makes up for only 15% of sales annually. Men’s and children’s apparel makes up for only 22% of sales annually.
Geographically, Hollister attracts individuals who live in both urban areas (such as myself) but also in suburban areas that have close access to malls or similar large shopping centers. The audience most likely to buy Hollister products is typically popular, good-looking, and seeking to make a fashion statement since the brand prominently features its name on its apparel. In terms of behaviors, Hollister consumers shop together in groups and tend to dress similarly. I differ from these psychographic and behavioral breakdowns because I prefer to purchase clothes alone without any input from friends. I am also less reliant on fashion trends and prefer to define my own style.
American Eagle should continue to appeal to their targeted market of 16 to 32 year olds. AE needs to remind their customers that their brand is comfortable, bold and fresh, and is unlike any of the competition. Store atmosphere is also very important when trying to keep loyal customers. American Eagle should hire fun and energetic employees to represent their company. Advantage of appealing to the 16 to 34 year old range is not many retailers in the market appeal to that wide of an age gap because is difficult. Customers being reminded of AE's comfort and freshness will in turn keep sales flowing. Although this could help American Eagle stay one step ahead of its competitors, it could also be a burden on AE because they must know what is appealing to
On average women spends $1,832.55 while men spend $691.52 on personal hygiene. In Deborah Tannen’s essay “There is no unmarked woman” Tannen states that it is inevitable for a women to be unmarked. Tannen assert that ways a women is marked include the makeup a woman wears, her clothes, and the amount of jewelry she has on. I agree with Tannen because women aren't able to fully express themselves like men due to the stamp society has placed on us.
American Eagle Outfitters, Inc. still continues to move forward in the business community. Sales are on the rise with an increasing focus on internal controls and management. This success was achieved with little dependence upon advertising. In a financial meeting shortly after the
While the average family income is $62,897 over 23% of the families earn under $25,000 and 48% earn under $50,000
When our professor first presented this project paper to us my mind began to wonder. What is a good company to research and present it to my fellow classmates. My first selection was “Chik-fil-a”, but I wasn’t sure if we could write about fast food franchises. So I continued to brainstorm about a topic to expound on, even going as far as in asking my buddies and co-workers for suggestions. “Walmart”, “National Football League”, “National Basketball Association”, “Nationwide Insurance”, and “LG” were a few ideas that were presented to me. A few of those sounded ok but none really grasp my attention. As I was visiting an outlet mall, I came across Nike store. “Wow that’s going to by my topic of choice”, is what I told myself. Week
Target Market Strategy As competition grows and the market changes it is important to change with it. Over the years the demographic segmentation for Under Armour has evolved from focusing on male collegiate athletes between the ages of 17 and 23 to include older men, women, and children. Under Armour uses high quality products and the price that comes with that is geared towards consumers who are financially stable. They cover a wide area the family life cycle, but their primary focus is younger consumers whether they are married or have children.
Here, we look at the major geographic, demographic, psychographic, and behavioral variables. Below, you can see the target market of A&F. Geographic: U.S.A, Canada, England, Spain, Denmark, Italy, Germany, France, Hong Kong, Singapore, Japan Demographic: Age 15-28 Psychographic: Personality - Extrovert, Stylish Social class - Upper middles, Lower uppers, Upper uppers
For household markup, about 52% of the populations are female. Over 43% of the households are
The majority of household incomes range from $20,000 - $30,000 (50.3%), yet there are also affluent household incomes ranging from $50,000 - $100,000 (15.4%). The median income in this area is $47,096, compared to the whole Kansas area which is $33,248. The typical "head of household" age is 25 - 34 (22.4%) or age 34 - 44 (23.1%) with a median age of 44.4 years old and an average age of 32 years old. Convenience stores serve the entire purchasing population of its geographical area but focuses on customers who need to purchase items outside of normal working hours such as hourly employees and quick shoppers looking for snacks and related items.
Although American Eagle is based in the U.S. they have neither fashion-forward products to compete with fast-fashion companies, nor online strength which is becoming more popular. Because they have minimal potential for growth in the United States, American Eagle is exploring opportunities in international markets. They currently have a presence in 28 countries with a mix of international licensed and company owned stores (Trefis, 2015). In just 2015 they have expanded into five new countries in Latin America, Asia and Europe (Trefis, 2015). Looking at American Eagle’s standing in the market and its market share trend, it is almost certain that the company cannot hope for much growth in domestic markets, therefore international
In the UK, H&M’s, the other major fast fashion major brand, average selling price of women’s clothes are £10.69, whereas at Primark, the average selling price was £3.87. Further, in terms of the annual average sales of clothes per square meter, H&M sells £3,400 per square metre, while Primark sells £5,300. These clearly point to a more optimised strategy (The Economist 2015).
Sears conducted a research and concluded that for men, the sole purpose while buying clothing is to see that it fits properly. Whereas in case of females there is a big list of factors considered while purchasing clothing which includes it should fit properly overall specially from the waist region, the color should match the color of the skin and the neckline should be flattering. Further, men take a
Demographic segmentation includes nationality, gender, age, religion, education, income household size and even various ethnic groups (Perreault, Cannon, & McCarthy, 2015). According to Scarborough Research 41% of online shoppers are between the ages of 35, and 49, and 69% are college educated, 65 percent are white-collar, and 58% have an income of $50,000. Amazon customers with higher household income are enrolled in Amazon prime. According to Godfellow (2013), Amazon’s prime members are equally divided by the gender, 37% are under the age of 35 and 29% over the age of 55. Prime members have more money to spend with an average household of $70,000 per year and non-prime members earn less than $37,000 per year (Godfellow, 2013).