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#aerieREAL

MKT 500 Writing a Case Presentation
by

Jessica Keesee

on 17 February 2015

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Transcript of #aerieREAL

Presentation
Estimated size of aerie’s niche: 12 million teenagers and 35 million millennials
in the United States

Aerie's new marketing strategy is very popular with customers and the media.
The brand is getting a lot of free brand recognition via social media and blogs
The brand is promoting a more realistic body image for women.

Aerie could take it a step further, and use girls who are not models in its advertisements to further have itself relate to the customers.
Aerie has the potential to surpass Victoria Secret and dominate the women’s lingerie market.
Aerie needs to continue to make waves in the media to keep relevant

Segmentation Variables
Age: 18 to 35
Gender: Female
Income: Middle
Family life cycle: Single without children

Why The #AerieReal Campaign?
The Appeal
Emotion
Promotes a healthy body image.
Biological
Promotes being yourself: the "real" you.
Rational
It's more rational to buy something you believe in.
Accept who you are.
Product Branding
Lifestyle:
Motives:

"The REAL you is sexy."
Targeting Strategies
Target Market
Segment's characteristics
Sustainable
Measurable
Accessible
Responsive

Undifferentiated
Concentrated (niche)
Multisegment
Positioning Strategy
Attribute
Price and quality
Use or application
Emotions
Product class
Product users
Competitors
The lingerie market is full of gorgeous runway models. (i.e. Victoria's Secret). The majority of these models, that meet the BMI criteria, would be considered anorexic.
Mix
Place
Product
Consumer product
Shopping product
Heterogeneous

Product Mix
Price
Status quo
aerie prices = VS Pink prices

Discounts
Quantity discounts
Place
Arm-length relationship
Cooperative relationship
Integrated relationship (vertical integration)

Intensive
Selective
Exclusive

Promotion
aerie Real marketing campaign


Presentation
Presentation of a retail store affects the store’s image and positions the retail store in consumer’s mind


Employee type and density
Merchandise type and density
Fixture type and density
Sound
Odors
Visual factors

Personnel
Employees are a valuable asset to aerie stores
Provide customers with services from styling to bra fittings and bra wardrobing
Use persuasion to encourage customers to buy
Use suggestion selling to add on to purchases

Bras
Undies
Casual apparel
Active wear
Background & History
Founded in 1977
Headquartered in Pittsburgh, PA
Over 966 stores in the US and Canada
A strong international presence

Target Market
Background & History
Aerie launched in 2006
Lingerie, bras and other undergarments, active apparel, loungewear, accessories, and sleepwear.
106 stores
#aerieReal campaign launched in 2014
Features models who are not photo shopped
Instagram and Twitter
Large online presence
“Real Girl Talk”
Twitter, Facebook, Google+, etc.

background & history
Aerie saw a 9% increase in sales last quarter.


Victoria Secret and the “Perfect Body” campaign

BAckground & history
aerie branding
Aerie seeks a Competitive advantage in the women’s lingerie market




Aerie models are more relatable to than photo shopped supermodels .




Dana Seguin, Senior director of marketing stated: “We wanted to offer our
customer something different, a real experience.
We listened to our customers, whether on social media, in the stores or in focus groups, and we’ve
heard them talk about body image and how hard it is to find a bra. That really helped us come to this point in the brand.”

Before #aerieREAL
Supermodels
Retouching
Slim build, 34B bra size
The aerie girl is "naturally sexy, the radiant girl next door, pretty creative, down to earth, and confident."
The aerie girl is not "over-sexed, supermodel, and artificial."
Climate of the Time
PositionING Strategy
Why, aerie?
Product line appeals to the "real" you
Appeals more to the standard consumer, as only 5% of American women have a "model image body"
Consumer more likely to shop at aerie in this market
Ansoff's Strategic
Pop Quiz
Retouching in Magazines
{
Which of the strategic directions did American Eagle use to launch Aerie?
}
Climate of the Time
Retouching in Fashion
Lingerie Industry
In February 2013, Dior released a campaign featuring Jennifer Lawrence. Many insisted the actress did not look like herself in the campaign photos. When shown the advertisement for the first time, Lawrence said, "Oh my god, I haven't seen this. That doesn't look like me at all. I love Photoshop, more than anything in the world. Of course it's Photoshop, people don't look like that."
New Look & One Poll Survey
15% of women from 18 to 24 years old believe the images of models and celebrities seen in magazines and advertisements accurately reflect what they look like in real life
Over one-third of UK women are unconfident to extremely unconfident about their body
Body Consciousness
Body Consciousness
#thinspiration
#bikinibridge
#thighgap
& Social Media
British Liberal Democrat politician and Member of Parliament (MP) Jo Swinson has campaigned for years to bring to the forefront the negative effects of media influence on body consciousness
"The images we see in the world of fashion are all pretty much the same--it's as if there is only one way of being beautiful. 9 in 10 people say they would like to see a broader ranged of body shapes shown in advertising and the media."
Body Consciousness
Market share
L Brands Inc. 41.3%
Jo Swinson
Per capita disposable income
Percentage of services conducted online
World price of cotton
Number of adults aged 20 to 64
Brand Repositioning
Why? Correct repositioning mistakes and sustain growth in slow markets.
Stand-alone stores: different concept, decoration, website design etc., separate from american eagle
Large Market: $13.2 billion
Approximately has a 3.3% annual growth
Positioning Bases
Advertising
Public relationship
Sales promotion
Personal selling
Social media

Aerie Stakeholders
aerie Corporate
4
Aerie &
Cause-Related Marketing

Geographic
Demographic
Psychographic
Benefit
Usage rate

Partnered in 2010
"Bridget" bra released in 2013
Bras across the bridge
Breast Cancer Awareness month
So what is Aerie Real?
The Campaign: #aerieREAL
aerie's product
Lingerie
Promotional Strategy
In-Store
Marketing
Affordable price + high quality
“Get real and think real”
aerie vs. Victoria's Secret

No more supermodels
No more retouching
Challenges supermodel standards to spark a conversation with consumers on the true meaning of beauty
Models of varying shapes and sizes used from AA to DD
Imperfections left un-retouched: freckles, tattoos, beauty marks, stretch marks, cellulite, lines, dimples, puckering, etc.
Social Media
Real Girl
Talk Hotline
aerie REAL Bra guide
SWOT
#aerieREAL
The campaign had some positive and some negative feedback. Some criticized and mocked it while others praised and embraced it.
Though there were mixed feelings for aerie's attempt in promoting a body positive image, the brand reached out to its consumers to have them "share the love."

Victoria’s Secret launched its ad campaign “The Perfect Body." Critics called it offensive and damaging to women
This inspired hashtag #iamperfect on Twitter
More than 26,000 people signed a petition calling on Victoria's Secret to apologize and terminate the campaign. The petition says, "Victoria’s Secrets new advertisements play on women's insecurities and send out a damaging message."
The company has not yet formally apologized, but it has replaced the slogan on its website with a new one: "A Body For Every Body."

Victoria's Secret
"The Perfect Body" Campaign
The Media Reacts
Social Media
• Advertising has long been the kingdom of unattainable images. The issue of reality versus image has been more prevalent in fashion and beauty marketing.
• Placing unretouched normal women on a major national campaign can literally rock headlines—which is exactly what happened when aerie rolled out its aerie Real marketing campaign.

Feedback
Real Beauty Trend
{
}
Real vs. Wings Backlash
American Eagle Outfitters
Aerie by American Eagle
Conflicting
“We wanted to offer our customer something different, a real experience. We listened to our customers, whether on social media, in the stores or in focus groups, and we’ve heard them talk about body image and how hard it is to find a bra. That really helped us come to this point in the brand.”
Small competition, few firms dominate, moderate level of market share concentration
Key External Drivers
Market
Statistics
Bases
positioning
Opportunity Matrix
Social Responsibility
Bright Pink
aerie
Price
Promotion
retailing
Personal
Product
Product Classification
Sleepwear
Accessories
Fragrance
Makeup
Pricing Objectives
Fine Tune Base Price
Channels of Distribution
Level of Intensity
Channel Relationship
Direct Channel
www.ae.com/aerie
Retailer Channel
Side-by-side and standalone stores
Components of Atmosphere
Promotional Mix
Promotional Strategy
vs.
Dana Seguin
Senior Director of Marketing
Social
Opportunities
Strength
Weakness
Threats
Victoria Secret still dominates the market
Customers will lose interest in Aerie Real campaign
Victoria's Secret, Aerie's main competitor is still the better established brand.

While Aerie is doing well, American Eagle is not. This could have an adverse effect of Aerie since American Eagle is the parent company
Aerie’s campaign might lose momentum over time, or other companies might adopt the same strategy

Can you spot
vs.
the difference?
Play to Win!
Answer questions or ask them!
Get a raffle ticket and you could win!
Why did Aerie do the Aerie Real campaign? What were the possible motives? Advantages? Disadvantages?
Pop Quiz
How was social media utilized in the Aerie Real campaign? What kind of marketing tactic is this and what advantages did it have over more traditional marketing techniques?
Pop Quiz
Pop Quiz
How did Aerie utilize consumer relationship management (CRM) in its Aerie Real campaign? What components of CRM did Aerie target?
(again)
Was Aerie exercising corporate social responsibility with its Aerie Real campaign? What may have been the causes in doing this? What are the advantages?
Pop Quiz
POP Quiz
Do you think the Aerie campaign helped in gaining a competitive advantage in the market? What ways can it sustain that advantage?
#aerieREAL
"The REAL you is sexy"
Full transcript