7.Business Marketing

Aeropostale- Aburaihan Rahman

Aeropostale markets fashion ware to individuals for purposes other than personal consumption. Business marketing is a marketing practice of individuals or organizations. It allows them to sell products or services to other companies or

organizations that resell them, use them in their products or services or use them to support their operations. Aeroposatale buy their raw materials from out of US and make their product out of the United States because the product made in US in way expensive than making it out Of the country. Since Aeropostale supplies affordable fashion apparel so aeropostale believes to make their cloth out of the country and bring in to here.

Increasing cotton prices towards the end of last year had an impact on the company’s profitability as full year operating margin dropped by 110 basis points. The impact was more visible in the fourth quarter, where a significant fall in merchandise margins brought down the operating margin by nearly 300 basis points.

After buying raw material from third world countries, Aeropostale reported net revenue for the fourth quarter increased by 5% as compared to the same period last year.

Aeropostale, Inc. - Strategy, is a source of comprehensive company data and information. The report covers the company’s structure, operation product and business marketing action.

Features:

• Detailed information on Aeropostale, Inc. required for business and competitor intelligence needs
• A study of the major internal and external factors affecting Aeropostale, Inc.
• An in-depth view of the business model of Aeropostale, Inc. including a breakdown and examination of key business segments
• Intelligence on Aeropostale, Inc.’s mergers and acquisitions (M&A), strategic partnerships and alliances, capital raising, private equity transactions, and financial and legal advisors
• News about Aeropostale, Inc., such as business expansion, restructuring, and contract wins

Management

• Thomas P. Johnson , Chief Executive Officer
• Emilia Fabricant , Executive Vice President – Aéropostale brand
  
• Marc D. Miller, Executive Vice President – Chief Financial Officer
• Scott K. Birnbaum , Senior Vice President – Marketing & E-Commerce
• Barbara Fevelo-Hoad ,Senior Vice President - Production and Technical
• Kathy E. Gentilozzi ,Senior Vice President - Human Resources

 Stock Performance

Symbol ARO (Common Stock)

Exchange NYSE (US Dollar)

Price $9.00

Change (%) 0.09 (0.99%)

Volume 3,355,098

52 Week Low $7.78

Market Cap $706,383,000

Rolling EPS -0.82

PE Ratio 0

Shares Outstanding 78,487,000

Data as of 12/06/13 4:00 p.m. ET 

8.Segmenting and Targeting Markets

Aburaihan Rahman - Aeropostale

People or organizations with needs or wants and the ability and willingness to buy is called market. Aeropostale makes these people in sub groups in order to serve themselves in different product line;Aeropostale call this process market segment. Marketing segmentation plays a key role  in the marketing Strategy of all most all successful

organization. That's why Aeropostale  follows some steps  on market segmentation: 

• Aeropostale finds the most selling product and not selling product.
• Find the reason of popularity of the particular product&find the reason of those productwhich are not sold
• Use the concept of most selling product to other products in different ages. For Example: If any adult size polo shirt is selling good, Aeropostale makes the same product for kids.
• Develop the not selling product  with new design and new price range.

Aeropostale uses segmentation bases which are characteristics of individuals, groups,pr organizations, to divide the total market into segments:

• Age segmentation: Aeropostale mainly targets 14-17 years old boys and girls to sell their product. But aeropostale also sell products for men and women.
• Gender segmentation: Aeropostale markets product for kids and adults. women merchandise was the weakest part of Aeropostale, recently they developed the women merchandise and sales revenue grew up.
• Ethic segmentation : Aeropostale design their product to make suitable to every ethnicity. Aeropostale has the store in canda&middleeast but they are selling the same product that is being sold in United States and Europe.
  

Target Market of Aeropostale: Aeropostale targets the slightly younger siblings of the core Aeropostale teenaged customers, ages 14-17. "It's a bit of an untapped market overall," said Tom Johnson, chief operating officer of Aeropostale. "It's a $14 billion market which we think is really an opportunity for us."Aeropostale also compets with stores that sell to the 7-12 segment, but don't focus exclusively on it, such as The Children's Place, Old Navy, Gap Kids, as well as Target, Wal-Mart and Kohl's.

 http://prezi.com/hb3silffdlp4/aeropostale-target-marekt/

10.Developing and managing product

Aburaihan Rahman- Aeropostale

Aeropostale’s developing idea comes from manufacturers around the world (domestic & overseas). Aeropostale to develop, source and place product on a seasonal basis emphasizing quality and maintaining mark-up plans. And Developing and managing

product manager does Instrumental role in launching a new  wear line; developed a diverse and valuable set of skills as a result. Aeropostale sells fashion product for men, women& for kids. But Women’s merchandise earns 64% to its overall revenues. Before finding out this fact, women’s merchandise 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. Aeropostale took a quick decision to improve women’s merchandise such as:

·        New management by hiring a new talents

·        Improving  design and women’s merchandise

·        Design new fashion trends

·        Emphasizing on seasonal fashion on fall, winter& summer dress  

·        Creating a specifically tailored head-to-toe collection for different purposes such as casual, school and party

·        Adding emerging and prevailing fashion to these products will be a priority for the company.

After developing the women’s merchandise, Aeropostale generated about $568 in revenue per square feet that was $547 in 2011. And abiding by the same developing and managing product rule, Aeropostale’s existing revenue per square feet is $590 in 2013.

14. Social Media and Marketing

Aburaihan Rahman- Aeropostale

Aeropostale uses different ways  to increase our brand recognition and promote their merchandise. Aeropostale views their stores as the primary means to communicate their message and provide brand experience to the consumer. Aeropostale marketing efforts are focused on in-store communications, promotions and internal as well as external advertising.Periodically, Aeropostale also partner with select third parties such as magazines, television shows and musical bands, to create marketing programs which we believe will be appealing to our customers.In addition, Aeropostale supports its brand through social media outlets such as Facebook, Twitter, Instagram,Pinterest and youtube. Using social media, aeropostale does:

• Promotion of their new products
• Offering sale to bring new customer and reserve previous customer as well
• Making their brand well known
• Online advertising

Aeropostale, Inc Facebook Page

Facebook Page:	facebook.com/aeropostale
Number of Likes:	9,368,364
Talking about:	360,614
Category:	Retail and consumer merchandise and Online marketing

Aeropostale, Inc YouTube Page

YouTube Page:	youtube.com/user/a87video
Number of Subscribers:	7,423
Number of Video Uploads:	76
Number of Video Views:	4,308,609

Aeropostale, Inc LinkedIn Page

LinkedIn Page:	linkedin.com/company/aeropostale
Number of Followers:	11,513

Aeropostale, Inc Instagram Page

Instagram Page:	instagram.com/aeropostale
Number of Photos:	726
Number of Followers:	442,712
Number of Following:	53

9 .Product Concepts

Aburaihan Rahman- Aeropostale

Aeropostale is a brand of fashion retailing. 

On every product of Aeropostale, they have the logo of either "Aeropostale" of "A87". The company was establised on 1987, that is why company uses "A87" as their trademark. Aeropostale no longer is combating the continual rise of online shopping, but increasing in-store engagement and sales by leveraging more interactive digital tools and technologies. Aeropostale is currently coming out with new design and new fashion style which is really popular to teenage boys and girls. The thing that is given to consumer in an exchange is called product. Aeropostale takes every steps to fulfill the consumers need in order to satisfy them. Therefore, all the works related to product to be reached to consumer is called Total consumer concept. Lets take a look of the product list of Aeropostale for both mens& women:

TOPS

    graphic tees

• polos
• hoodies
• tees + henleys
• shirts
• sweaters

BOTTOMS

• jeans
• pants
• sweats
• shorts

OUTERWEAR

COLD WEATHER

DORM

FOOTWEAR

• sneakers
• boots
• slippers

ACCESSORIES

• boxers + trunks
• socks
• hats
• belts
• sunglasses
• bags
• jewelry
• watches
• ties
• cologne

  

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.

12.Advertising, Public Relations and Sales Promotion

Aeropostale- Aburaihan Rahman

Advertising  is the communication by marketers that informs potential buyers of a product in order to influence an opinion. Advertising  is the key to make the product known to the new consumer and attract the  regular consumer to stay with it. It plans for optimal use of the elements that helps to make  sales in the competitive market.. Aeropostale Marketing team plans and creates all in store advertising, from window signage to in store promotional signage, sale signage, posters and direct mail pieces. They present comprehensive conceptual designs for all promotional programs. Their Direct Marketing team works to come up with new and creative ways to bring our customer on-line to shop. They work to create a web site that appeals to our customer base and communicates exciting events at Aeropostale. Finally Aeropostale public relations team works to consistently communicate the Aeropostale message and brand image to the public. 

 Aeropostale is advertising and promoting sales their product:

• Online: Aeropostale offers clearance sale and shipping. Sometimes they offer more than $50/100 shopping gets free shipment.
  
• Promotional discounts: Aeropostale wants their consumer to come back again and again. They offers discounts on next purchase such as 25% off on next purchase.
  
• Advertising with social work: Aeropostale ran the program "Teens for jeans" where kids were asked to donatale their old jeans and get 25% off on new Aeropostale jeans. Aeropostale collected 25000 old jeans and donated to the homeless people.
  
• Mobile application: Aeropostale's mobile web traffic has grown by 167 percent during the past year, making up more than a third of total online traffic to Aeropostale.com, according to company data. Its revenues from mobile traffic have also increased from 2 percent in June 2010 to 13 percent today.
  
• Aeropostale has always 40% off for all employees. Employees wear Aeropostale product while they are working. They buy for themselves and family members and it also works as advertising.
  
  
  
• Text messaging&Email: Aeropostale offers discount code when someone register for the text message/Email service. consumer gets Text alert every time aeropostale has a sale with discount code.

• Social media: Aeropostale advertise and promotes their product on social networks such as facebook, twitter, youtube and linked in. In the social netwoks they make new consumer by offering different promotions and free gift after purchase.

11.Marketing channel and Retailing

Aburaihan Rahman- Aeropostale

All the activities directly related to the sale of goods and services to the ultimate consumer for personal or non-business use is called retailing. Aeropostale is one the top brands on retail industry.

Ownership: It is a chain store; Aeropostale runs more than 900 stores all over in the globe by the same organization called Aeropostale inc.

Level of service: Aeropostale is a exclusive clothing store with high level of service. They offer customer service such as online shopping, shipping, and liberal return policy.

Product assortment: Aeropostale has narrow product assortment. Since it is a chain store, they carries only their product.

Price: Aeropostale always want to beat the other major competitor by their price. They have clearance sales that helps to make more sales than Aberocrombie&Fitch and Americal Eagle outfitters.

Aeropostale in NYC: The largest Aeropostale store is Aeropostale-Times Square. The 19,000-square-foot flagship, a 120-foot digital billboard, 18 cash registers and more than 500 employees working on this flagship. In addition, the second floor includes a 700-square-foot balcony where shoppers can dance on camera. The images are then projected to the 120-foot digital-video billboard outside the store.

Aeropostale Times Squire Store :