mr14 project report american eagle outfitters
TRANSCRIPT
-
8/9/2019 MR14 Project Report American Eagle Outfitters
1/22
Contents
Project Objective........................................................................................................ 2
About The Company...................................................................................................2
Research Methodology...............................................................................................4
Analysis and Results...................................................................................................4
Recommendations.................................................................................................... 2
Re!erences................................................................................................................"
Anne#ure.................................................................................................................. 4
-
8/9/2019 MR14 Project Report American Eagle Outfitters
2/22
Project Objective
To per!orm a mar$et research to identi!y and analy%e the mar$et potential & target
consumer segment !or 'American (agle Out)tters* to enter +ndia and design the
ideal product port!olio to be o,ered in the +ndian Mar$et.
About The Company
IntroductionAmerican (agle Out)tters is an American clothing and accessories retailer-
headuartered in Pittsburgh- Pennsylvania. +t /as !ounded in 011 by brothers erry
and Mar$ 3ilverman as a subsidiary o! Retail entures- +nc.- a company /hich also
o/ned and operated 3ilverman5s Mens/ear. The 3ilvermans sold their o/nership
interests in 00. American (agle Out)tters is the parent company o! Aerie and
!ormerly o! 11 $ids.
Company HistoryAmerican (agle Out)tters- +nc. 6A(7 is a chain o! mall8based stores that sells casual-
outdoor8inspired !ashion apparel. 9ith nearly ::: shops in the ;nited 3tates and
Canada- A( enjoyed average annual sales increases o! "< percent !rom 00= to
2::. This gro/th rate earned A( a ran$ing o! ="rd among >ortune maga%ine5s list
o! !astest gro/ing companies. Retail outlets in regional shopping malls account !orthe vast majority o! sales- but the company also sells its gear via a /ebsite and its
?magalog?88a combination li!estyle maga%ine and catalog. A(5s Canadian operations
include the Thri!ty5s@luenotes chain- as /ell as ramear shops and Bational
ogistics 3ervices- a distribution arm. The company also operates a small
distribution center- (agle Trading- in Me#ico.
-
8/9/2019 MR14 Project Report American Eagle Outfitters
3/22
The vast majority o! the chain5s sales are generated !rom private label brands88
American (agle Out)tters- A(- and A( 3upplyD this !ocus on private8label
merchandise /as launched through a 002 repositioning and /as intended to
di,erentiate American (agle !rom its mall competitors- such as The imited- The
Eap- and Abercrombie & >itch. To $eep up /ith the latest !ashion trends- the
company employs an in8house design team- /hose merchandise designs are thenmanu!actured to speci)cation by outside vendors or by American (agle5s
manu!acturing subsidiary- Prophecy td. This private8label@in8house design system
enables American (agle to $eep tight control o! uality and hold prices do/n.
Customer credit is o,ered through an American (agle Out)tters credit card.
Appro#imately 2= percent o! the company5s stoc$ is o/ned by the 3chottenstein
!amily- /hose 3chottenstein 3tores Corp. is a large privately held company based in
Columbus- Ohio- /ith numerous retail holdings. ay . 3chottenstein acted as C(O o!
American (agle !rom 002 to 2::2- /hen he stepped aside to ma$e room !or co8
C(Os Roger 3. Mar$)eld and ames . O5Fonnell. 3chottenstein remained as
chairman o! the board.
Target SegmentsThe brand targets
-
8/9/2019 MR14 Project Report American Eagle Outfitters
4/22
!raming o! the uestionnaire and the applicability o! the analytical tools to the
project /as also be re)ned /ith the help o! secondary research in order to reduce
and eliminate any errors or biases /ith respect to the same. 6>or e.g.buying
behaviour o! similar target group may be identi)ed through secondary research in
order to get ualitative inputs as /ell as to re)ne the output7
Analysis and Results
ased on the data obtained !rom the primary research- t/o statistical methods have
been identi)edH
Fiscriminant Analysis
>actor Analysis
(ach o! these methods has been e#plained in detail in !urther sections.
!iscriminant Analysis
The data obtained through primary research /as coded and analy%ed using
'Fiscriminant analysis* utility in 3P33. The purpose o! using this method o!
analysis is to identi!y the !actors /hich di,erentiate the customer segments
/hich shop !or apparels online or oJine.
The selection o! channel- online or oJine- has been selected as a dependent
variable and the predictor variables areH Eender- Age- Monthly >amily+ncome- Occupation.
>ollo/ing tables sho/ the output o! Fiscriminant analysis in 3P33- !or the
given data.
Tests of "#uality of $roup eans
9il$s5 ambda > d! d!2 3ig.
Eender .02: =:.1
-
8/9/2019 MR14 Project Report American Eagle Outfitters
5/22
Pooled %ithin&$roups atrices
Eender Age Monthly
>amily +ncome
Occupation
Correlation
Eender .::: .202 .:G0 .
-
8/9/2019 MR14 Project Report American Eagle Outfitters
6/22
a. >irst canonical discriminant !unctions /ere used in the analysis.
>rom canonical correlation value- it can be said that 2G."K o! variation in
dependent variables is e#plained by predictor variables.
%il's( )ambda
Test o! >unction6s7 9il$s5 ambda Chi8suare d! 3ig.
.11 2".unction
Eender 8.1==
Age 8.24G
Monthly >amily
+ncome.41:
Occupation .=42
The standardi%ed discriminant !unction coeLcients indicate the relative
importance o! the independent variables in predicting the dependent. 3o-
Eender- Monthly>amily+ncome- Occupation are relatively more important in
discriminating t/o groups.
Structure atri-
>unction
Occupation .=1"
Eender 8.41:
Monthly >amily
+ncome.4:2
-
8/9/2019 MR14 Project Report American Eagle Outfitters
7/22
Age 8.2=unction
Occupation 8.2:
Eender 8.:"1
Monthly >amily
+ncome.:1irst- /e chec$ i! there is a patterned relationship amongst our variables byre!erring to the Correlation matri#. A correlation matri# is simply a
rectangular array o! numbers /hich gives the correlation coeLcients
bet/een a single variable and every other variables in the investigation.
.O and /artlett(s Test
aiser8Meyer8Ol$in Measure o! 3ampling Adeuacy. .
-
8/9/2019 MR14 Project Report American Eagle Outfitters
11/22
This table sho/s all the !actors e#tractable !rom the analysis along /ith their
eigenvalues- the percent o! variance attributable to each !actor- and the
cumulative variance o! the !actor and the previous !actors. Botice that the
)rst !actor accounts !or 0.200K o! the variance- the second
-
8/9/2019 MR14 Project Report American Eagle Outfitters
12/22
Rotated Component atri-a
Component
2 " 4
ocation .actor 2.
>ollo/ing clusters have been identi)ed based on the results.
Cluster alue !or money
Cluster 2 rand a/areness
Cluster " (ase o! purchase
Cluster 4 (#perience o! shopping
Recommendations
-
8/9/2019 MR14 Project Report American Eagle Outfitters
13/22
Recommendations 1based on +actor Analysis2
ased on the results obtained through >actor analysis- American (agles
Out)tters should !ocus on a!orementioned !our major !actors to cater to all
the needs o! an +ndian consumer.
Recommendations 1based on !iscriminant Analysis2
+t is recommended that American (agles Out)tters should obtain the
demographic in!ormation o! an area and utili%e that in!ormation to calculate
discriminant score to arrive at a decision /hether to invest in bric$8and8
mortar store or to cater the segment through online channel or both.
2
-
8/9/2019 MR14 Project Report American Eagle Outfitters
14/22
References
. httpH@@///.cs.uu.nl@docs@va$$en@arm@3P33@spss=.pd!2. httpH@@///.u$.sagepub.com@burns@/ebsiteK2:material@ChapterK2:2
-
8/9/2019 MR14 Project Report American Eagle Outfitters
15/22
-
8/9/2019 MR14 Project Report American Eagle Outfitters
16/22
o Somema$er
o O/n usiness
o 3ervice
o Retired
How much do you usually spend on apparel / accessories per month? *
o W Rs -
-
8/9/2019 MR14 Project Report American Eagle Outfitters
17/22
Pre!eren
ce
Pre!eren
ce 2
Pre!eren
ce "
Pre!eren
ce 4
Pre!eren
ce