This presentation is an example of proposed new marketing strategy for Aeropostale Brand. Prepared for Marketing Strategy Class

1. Marketing Plan
Igonkina Yulia # 4231764

2. Organizational Background
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American retailer founded in 1987, New York.
Represented by Apparel Group in the UAE since 2009
CEO Nilesh Ved. UAE: 850 stores and 7000 of staff
Aeropostale: 14 stores in Dubai, Abu Dhabi, Sharjah and Fujeirah
Fashionable high quality clothes for teenagers at value prices
Exclusive control of the brand by designing, sourcing, marketing and
selling the merchandise.
 The products are sold only in Aeropostale stores (UAE and USA) or online
at www.Aéropostale.com (USA)

3. Retail Industry in the UAE
 Retail - one of the most profitable industries in Gulf countries and
expected to grow to 151 billon dirham till 2015
 UAE teenagers spent 3 times more than their peers globally. Young
people from 12-19 spend 71 $ a week compare to 21$ a week in the
other parts of the world ( National, 2012)
 According to the Alpen Capital GCC retail sales is expected to
increase at CAGR (Compound annual growth rate) of 8,3 % till
2015
 The e-commerce sales are expected to increase up to $15bn by 2015,
 UAE topped the list, it was also called number one in GCC for
cyber security and fourth globally ( AMEinfo, 2013)
 UAE - number one in global smartphone penetration with 73.8 %

4. Objectives
 To improve the brand image and increase the rate of customer loyalty by
40%
 To increase the sales per store by 15% till 2015
 To establish the E-commerce distribution channel and mobile applications
for the E-shopping and M-shopping for the UAE by 2015

5. Challenges
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Strong competitors
Seasonality
High volatility of teenage market
Direct Competitors: American Eagle Outfitters and Gap
Indirect Competitors: H&M and Forever 21

6. Competencies
Streamlined Supply
Chain
Integrated State of
Art Facilities
Excellent Media
Relationships
Market Intelligence
Well-trained Sales
Team & Strong
relationships with
Mall owners
Experts in Casual
Clothing
Aggressive Brand
Building Campaign
The first mobile
loyalty program in
the region

7. Target customers
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Females , 18-25 years old, Students and Young professionals (Millenium generation)
Medium disposable income; working and middle class; The places of living: Dubai, Abu
Dhabi and Sharjah
Mostly live with parents–resource constrained
Personality- outgoing, social, cheerful, with positive life outlook, but yet ambitious
Influenced with opinion of friends. Like to socialize in the shopping mall
Value product allowing them look trendy, rich, feel comfortable and be savvy in money
Functionality: The product to be worn from Uni/ work to go out with friends in the evening
Listen to popular music, Read- Fashion Magazines
Like to engage through social media, Instagram and Pinterest themselves- Selfie

8. Strategic Recommendations
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To improve the brand image and increase loyalty the next steps are
recommended:
Brand re-positioning via integrated marketing strategy for consistent message:
Social media: Facebook, Twitter, Instagram, Pinterest
Advertisement: Printed Media (Ahlan Magazine)
Physical store Aeropostale
Digital channel (to be develop till 2015)
Differentiation :
New unique products development
Example- Limited edition or Capsule collection - Designer Cooperation
CSR initiatives and events
Skilled sales force and “wow’ factor customer service

9. Product: Tunic

10. Product: Fashion Tunic
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The need product satisfies: Esteem need
Type of innovation: incremental (performance improvement and higher perceived value)
Core product: style, convenience, comfort, confidence, uniqueness, admiration of the peers.
Actual product: American brand, light material suitable for the UAE climate (Chiffon,
Cotton). Available in 3 latest colours of season: lavender, tropical blue and pink. Style-casual
chic- latest trends
 Augmented: Doesn’t exist in portfolio of other brands; created in cooperation with famous
local designer. Stylist advice on casual chic look from our sales force, high touch points
through the loyalty program
 Potential product: Change in look of the product, materials, colors and decorative elements
depending on season and the trends

11. Place
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Type of distribution: Exclusive through the Aeropostale stores in the UAE only
(Apparel group) in all the leading shopping malls (Emirates Mall, Dubai Mall)
Type of agreement: Contractual vertical marketing system agreement- franchise
Two level marketing channel: manufacturer-wholesaler-retailer-consumer
Plus - More dedicated and knowledgeable retailer, strong control over brand and
products
Minus - Aeropostale loses profit because it doesn’t have established e-commerce
channel for the UAE
Can’t sell it’s products through the other retailers

12. Promotion
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Objectives:
To modify the attitudes of the consumers towards Aeropostale
To inform the customers about the new product and communicate its value
features
To persuade the customers to try and purchase the new product
To send the consistent message with a clear tagline over integrated
marketing communications:
Life is easy. Casual chic collection- Aeropostale
Social media: Facebook, Twitter, Instagram, Pinterest
Advertisement: Printed Media (Ahlan Magazine)
Sales Promotion (Customer Contest)
Personal Selling (Style advice from Sales team)
Events (Product launches and CSR)

13. Price
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100 DHS- Benchmark of competiton (70 dhs per blouse H&M)
Value pricing –no heavy discounts
Discounts of 30-50 % in the end of the season to drop old merchandise and special
occasions (Eid , Christmas)
Price is fair if to compare benefits versus costs
Benefits-unique product, American brand, high quality, latest fashion, beauty,
fashion advice, high touch points
Costs: lower brand image, available in leading shopping mall, so doesn’t require
big efforts
Higher benefits-lower costs

14. Budget
Marketing Budget Aeropostale 2014-15(Quarterly)
Potential Segment
Penetration
Total Revenue(AED)
Expenses Budget (10%)
Collaboration with designer
Print Advertisement(Ahlan Magazine)
In-store event
Facebook advertisement
Instagram profile (Free)
Pinterest (Free)
Twitter advertisement
Personal Selling(Employee training)
Sales Promotion (Contest)
POP display( Promotional Materials)
Total Expenses
Profit (AED)
Price per item 100 dhs
Projected profit per segment per year2014
Advertising Budget for year(10%)
Expected profit after ad expense 2014
Obtained profit 2014
2014
2015
Jan-March April-June July-Sep Oct-Dec Jan-March April-June July-Sep
Oct-Dec
15,000
30,000
38,000
27,464
20,000
35,000
40,000
45,464
1,505,650 3,300,000 3,500,000 2,746,400 2,000,000 3,500,000
150,000
105,000
18,400
8,556
2,825
2,825
8,556
70,000
17,112
2,825
2,825
17,112
12,000
2,825
2,825
12,000
35,000
20,000
15,000
2,825
2,825
15,000
200,000
105,000
20,000
9,000
2,825
2,825
9,000
10,000
100,000
200,650
135,300
10,000
60,000
553,950
135,300
50,000
481,462
10,000
60,000
109,874
13,000
100,000
212,650
40,000
70,000
20,000
2,825
2,825
20,000
25,000
2,825
2,825
25,000
70,000
20,000
18,000
2,825
2,825
18,000
12,000
70,000
167,650
15,000
110,000
250,650
20,000
110,000
261,650
1,024,188 3,190,126 3,287,350 2,545,750 1,446,050 3,332,350
11,046,400
1,104,640
9,941,760
10,047,414
4,000,000 4,546,400
3,749,350 4,284,750
Price per item 110 dhs
Projected profit per segment 2015 15,451,040
Ad.Budget
18% 1,233,900
Obtained profit 2015 12,812,500