1

History2

1920-1939: Eddie Bauer’s Sport Shop 1940-1949: The Skyliner 1950-1959: William F. Niemi 1960-1970: Jim Whittaker 1971-1987: General Mills 1988-2005: Spiegel, Inc. 1995-2000: Launch Website; expand internationally; Signature

Eyewear; and Exclusively on-line business venture 2001-2009: Teamed with American Recreation Products

Neil S. Fiske new president and CEO June 2009: Filed Chapter 11 bankruptcy protection

Mission Statement3

OUR CREEDTo give you such outstanding quality, value,

service and guarantee that we may be worthy of your high esteem.

OUR GUARANTEEEvery item we sell will give you complete satisfaction or you may return it for a full

refund.

Business Model4

Started with outdoor clothing and sporting equipment

Introduced casual lifestyle; emphasis on women apparel and accessories

Cross Branding Partnership

Introduced Home Collection

Products5

Outerwear

Casual Wear

Bags & Gear

Home Collection

Alpental Sport Dome Tent $99

Superior Down Parka $249.

Harness Boots $199.

Sleeping Bag

Eddie Bauer Ford Explorer

Crib Bedding Ensemble $144

Services6

Arrange Expeditions

Information Blogs

Brand Name & Logo Licensing

Affiliate Programs

Strategy Execution7

Struggled because of competition like L. L. Bean, Land’s End, Abercrombie & Fitch, J. Crew and American Eagle Outfitters.

Changed merchandising strategy 3 times since 1995. First expanding its dress casual collection, then going after

youngerurban customers, and lastly on dressier apparel.

These switches alienated its core customers.

In 2002, developed marketing campaign to revamp its image of rugged outdoor wear.

Target Market8

Primary target customers are women and men

30-54 years old

Have an average annual household income of $77,000

Good business does not just start from an idea, but the core element to making it work is to tap into the Target Market.

Who are your users

What are

their goals

Pricing9

Results of the internal analysis describing theircompetencies in their value chain activities:

Offer high quality products at average prices. Prices are comparable to GAP, Land’s End and LL Bean

Products and prices are easily accessible online and in

catalogues.

Promotion10

Prior to 1999, special promotions were widely used. In 1999, eliminated the promotions and conducted a study to

measure customer behavior across a six month period

Multichannel Marketer

Back to Basics

Distribution11

Manufacturing plants are Outsourced

Customer service is Outsourced

“Complementors” – create partnerships with other firms whose products go hand-in-hand with their own giving customers value added. Example: Sports Authority, Target

Distribution Channels12

Apparel Home Outlet

RetailOver 400 Stores

Catalog100M

E-Commencewww.eddiebauer.comwww.eddiebauerhome.comwww.eddiebaueroutlet.com

Eddie Bauer is a complex organization with three core business and three channels apparel

Market Analysis13

Conducted an internal analysis describing their competencies in their value chain activities and their competitive advantage.

Conducted a study to measure customer behavior by eliminating certain promotions customers had been accustomed to having.

External analysis – soliciting the “Voice of the Customers”

Competitive Analysis14

Eddie Bauer L.L. Bean Lands’ End The GapOrigin Founded 1920

Eddie BauerFounded 1912Leon Leonwood Bean

Founded 1960Gary Comer

Founded 1969Donald & Doris Fisher

Products Sportswear, Outdoor Gear

Outdoor gear & apparel Casual-style & Urban Chic

Stores Worldwide

400 Few retail stores; 15 factory store outlets in Northeast

15 in US; products sold in 860 Sears stores in US

2009 Revenue FY ’10 $1.4 billion, down from $1.5 billion the year before

$66.9m. Income rose 93% on a revenue increase of 7.3%.

$14.2 billion

Sales Channel On-line; catalogs, retail

On-line; * catalogs; retail stores (mail out 200 million catalogs)

* Catalogs; website; Sears Dept. stores; retail stores

Website;

Private Labels none none none Banana Republic Old Navy

Target Market women & men; 30-54 years old income of $77,000.

Upper/middle-class 50 percent men,

Male/females 17-25 yrs. old; middle/ upper class; urban/ suburban; career oriented; active; all minorities

Decision Support System (DSS)Store Sales Data

15

    2008   2007   2006

Retail and outlet stores sales:

Retail store sales $443.9 $462.1 $455.4

Outlet store sales 158.1 140.6 104.1

Comparable store sales 602.0 602.7 559.5

Non-comparable store sales 95.1 108.7 140.6

Total retail and outlet store sales $697.1 $711.4 $700.1

Catolog and Internet sales 274.2 277.9 256.5

Other merchandise sales 0.0 0.0 0.1

Total merchandise sales $971.3 $989.4 $956.7

Shipping Revenues 34.0 34.2 34.0

Licensing revenues 12.8 13.8 15.7

Foreign Royalty revenues 5.0 6.3 6.6

Other revenues 0.3 0.6 0.4

Total Net sales and other revenues $1,023.4 $1,044.4 $1,013.4

Growth Rate   (2.0%)   0.03   (4.3%)

Net Income (Loss)   ($165.5)   ($101.7)   ($211.9)

StrengthStrength Weakness Weakness

Established Brand Name Strong Customer Relations State of the Art Technology Strong Managerial/Know-how Eco-Friendly Strong Tri-Channel Platform for

customers Reasonable prices

Chapter 11 Bankruptcy; 2 Changed merchandising strategy

three (3) times Supply chain-outsourcing

manufacturing plants has diminished their profit margin

16

SWOT ANALYSIS

OpportunitiesOpportunities ThreatsThreats

Complementors Merger Pursue distribution network

optimization

Competitors Suppliers New Entrants

17

SWOT ANALYSIS

Recommendations18

Back to Basics - Return to rugged roots

Focus more on differentiators (overall quality and Brand image)

Give serious consideration to a merger with one of their competitors (see L.L. Bean example)

Short Term:Short Term: Long Term:Long Term:

Stick with Turnaround Strategy after Bankruptcy

Increase distribution of catalogs domestically and in global markets

Cut in upper-management salary

Expand market share in global markets

Pursue backward integration

Consider a Merger or a consolidation strategy

19

Short & Long Term Goals

Conclusion20

Eddie Bauer is a highly recognized brand in an extremely competitive retail clothing industry.

Have a great deal of work ahead of them before they fully bounce back from their chapter 11 bankruptcy. However, they are one of the leaders in their industry when it comes to technology and customer relations.

21

http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_071625107

http://en.wikipedia.org/wiki/Eddie_Bauer http://www.hoovers.com/company/Eddie_Bauer_LLC/rckkyi-1-

1njg6y.html http://investors.eddiebauer.com/resonsibilty/ http://3PL.nygard.com Strategic Management and Competitive Advantage: Concepts and Cases

by Jay Barney and William Hesterly. 2006 Pearson Preston Hall USA Strategic Management , Bauer Bean a New Beginning, Spring

2004, Chris Cutler, Nikki Roeder, Kurt Oliver, Dr. Pham http://www.dmnews.com Kevin Hillstrom, President of Mind That Data, Post: Web Analytics

Demystified.com