13. Personal selling and sales management

Aburaihan Rahman-Aeropostale

Personal selling and sales management is to manage the sales volume according to the

company strategy, it includes high volume of sale and keep merchandise flowing in order to consumer satisfaction and earn profit. To increase Aeropostale’s growth, Aeropostale is looking to improve its women’s merchandise mix (which has been the weakest performer) and boost the brand’s marketing. Although these steps appear to be in the right direction, their success will largely be determined by effective execution and customer response.

Marketing Sales Management:Aeropostale plans to employ marketing management strategy encompassing social media, physical stores and the digital channel. Such a strategy has been successful for American Eagle Outfitter, and we think that it may also help Aeropostale. However, for starters, the company needs to get its product mix right.

In 2012, Aeropostale signed actress Chloe Grace Moretz as its celebrity brand ambassador. According to the company, Chloe has become a fashion icon among today’s youth and will help refine Aeropostale’s brand image.  

 Improng Women’s Merchandise Mix

Women’s merchandise is Aeropostale’s main product category contributing about 64% to its overall revenues. This has also been the weakest performing category since 2011, due to a poor customer response to its fashion-based products such as women’s knit tops. The company made some changes to its management by hiring a new talent as the head of design and women’s merchandise. It is creating a specifically tailored head-to-toe collection for different purposes such as casual, school and party. Moreover, adding emerging and prevailing fashion to these products will be a priority for the company.

Will There Be An Impact?

In 2012, Aeropostale stores generated about $547 in revenue per square feet down from $568 in 2011. Going forward Aeropostale expects the figure to gradually improve to $558 in next five-six years driven by the growth in P.S. from Aeropostale brand and international expansion. If the aforementioned strategies help the sales of Aeropostale’s existing stores and drive its revenue per square feet to $590, there can be 5%-10% upside to their price estimate.