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Transcript of #aerieREAL
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
Age: 18 to 35
Family life cycle: Single without children
Why The #AerieReal Campaign?
Promotes a healthy body image.
Promotes being yourself: the "real" you.
It's more rational to buy something you believe in.
Accept who you are.
"The REAL you is sexy."
Price and quality
Use or application
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.
aerie prices = VS Pink prices
Integrated relationship (vertical integration)
aerie Real marketing campaign
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
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
Background & History
Founded in 1977
Headquartered in Pittsburgh, PA
Over 966 stores in the US and Canada
A strong international presence
Background & History
Aerie launched in 2006
Lingerie, bras and other undergarments, active apparel, loungewear, accessories, and sleepwear.
#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 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.”
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
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
Retouching in Magazines
Which of the strategic directions did American Eagle use to launch Aerie?
Climate of the Time
Retouching in Fashion
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
& 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."
L Brands Inc. 41.3%
Per capita disposable income
Percentage of services conducted online
World price of cotton
Number of adults aged 20 to 64
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
Partnered in 2010
"Bridget" bra released in 2013
Bras across the bridge
Breast Cancer Awareness month
So what is Aerie Real?
The Campaign: #aerieREAL
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.
aerie REAL Bra guide
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."
"The Perfect Body" Campaign
The Media Reacts
• 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.
Real Beauty Trend
Real vs. Wings Backlash
American Eagle Outfitters
Aerie by American Eagle
“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
Fine Tune Base Price
Channels of Distribution
Level of Intensity
Side-by-side and standalone stores
Components of Atmosphere
Senior Director of Marketing
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
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?
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?
How did Aerie utilize consumer relationship management (CRM) in its Aerie Real campaign? What components of CRM did Aerie target?
Was Aerie exercising corporate social responsibility with its Aerie Real campaign? What may have been the causes in doing this? What are the advantages?
Do you think the Aerie campaign helped in gaining a competitive advantage in the market? What ways can it sustain that advantage?
"The REAL you is sexy"