Defining what makes a social business effective.
Natalie Merced, Market Analysis Researcher
& Qiushi Song, Market Analysis Researcher
EXECUTIVE SUMMARY
American Eagle has come a long way since its first store debut in
1977. A brand that originally focussed on outdoor wear focusing
mainly on men, has far surpassed any expectations they might
have had. Since then, AE has become the dominating deninm
brand among young American’s and was recently voted #1 brand
worn by College Students in early 2006. Since 2006, AE has transformed
into one of the most nationally recognized brands. AEO has
recently with in the past two years started trading on the NYSE
and broken into the global market.Much of the growing recognition
over the past 3-5 years can certainly be accredited to new technological
advances and social networking tools currently used by
many people worldwide today. The focus of this paper will be
AE’s successful use of these new social technology trends and
how it advances the brand within the retail industry.
Introduction
American Eagle is a leading retail brand in the industry
with a target market demographic of ages 15-24. American
Eagle, like many other business’s are adapting quickly to the
fast pace technological changes underway. Currently, American Eagle is using traditional advertising promotions as well
as investing their time and money into social networking
tools. This growing change has left many business’s in a predicament. However, AE refuses to stand behind and let other
retail brands within the industry surpass them in any way.
American Eagle is a public company trading on the New York
Stock Exchange (NYSE) with shares at a steady 14.15. If you
wonder why you should invest in such a company the reasons
are evident. American Eagle spends a mass amount of time collaborating as a company with the use of social networking tools.
They have implemented your more recognizable forms of social
network tools such as Facebook, and Twitter, but they also have
stepped out of the norm and hit the spotlight. AE provides a userfriendly application for smartphones, offers a blogspot for AE
members, and has created an AE radio station through Pandora.
AE is succeeding in using social network tools and are always introducing new ways to shop, buy and communicate for it’s users.
One might ask what’s next? AE might still be missing the tools to
using these tools to their fullest, most effective capability.
American Eagle Outfitters
Social Media Marketing
Social Media is Changing the Face
of Business
Technology is advancing business communications at a fast
speed. A Social Business is changing the way a business collaborates innovatively by acknowledging and interacting with the
diverse, global interconnections in which people interact, and
build relationships. Changes to social interactions are influencing and driving consumers purchasing decisions. It is shaping the
business model of a particular company or industry to fit the high
demand of consumer wants and interests.
American Eagle Advances through
the use of Social Media
American Eagle is certainly a leader of the Social movement. AE
currently incorporates popular networks such as Facebook and
Twitter.
Why is AE a leading Social Media brand?
There is no question that AE is currently using social tools to benefit their company. However, they are not fully incorporating the
necessary steps they need to maximize their capability. By changing their company internally AE will no doubt capitalize the market. AE is however, more than sufficiently excelling in the retail
industry. The next likely question is why they are, and how they
have changed the playing fields?
American Eagle Outfitters
Social Media Marketing
Challenging Competitors with other
forms of Social Interaction.
Facebook
American Eagle Outfitters’ Facebook currently have 6,121,657 people that like their age. 56,447 talking
about there brand through Status
updates or comments and 110,650
people that have checked in to an
AE location. AE uses Facebook for
consumers to “like” their brand for
chances to win discounts, free items
and money! Who wouldn’t want to?
AE currently has 119,893 followers.
They have posted 13,374 tweets and
are following 2,897 people.
American Eagle Outfitters
Social Media Marketing
Twitter
American Eagle also uses another
popular social networking tool
known as Twitter. Users may “tweet”
comments about AE by tagging the
logo with a hastag #. American Eagle uses twitter as an open discussion board for users to discuss the
brand and ideas towards the future.
Twitter is also used by AE to talk
about their friends in the industry,
update followers about upcoming
American Eagle Outfitters incorporates many other uses of social
networks within their brand in an attempt to reach out to their
target market. AE provides consumers with an AE themed radio
statio through Pandora. AE radio shuffles popular hit songs of
the demographic ages of 15-24. Also, AE hosts competitions for
bands trying to make it in the music industry. AE sponsors these
competitions to bring music to their brand, a way for buyers to
connect to AE in more ways than one.
AE changes it up when it comes to college students around the
country. American Eagle each year offers different universities
around the nation a chance to win a Marketing Case Challenge
in which AE provides an issue the company is currently facing,
and allows teams of college students come up with solutions that
they than present to a board of judges. Finalists are than flown to
Pittsburgh, PA, where AE headquarters is to present to the CEO
of AE. Winners are presented on a billboard in Times Square,
New York City, NY.
“Not When...How?”
Effectively using social media
internally and externally
Effectively using social media
internally and externally
Simply creating a facebook page or a twitter account is not going
to drive your customers decisions, or even change them. However, incorporating internal and external collaboration between
employees and consumers will. An effective social business will
in fact design their products to match the demand and wants of
consumers by taking those collaborated ideas and turning them
into reality. Social Media offers business a broader sense of consumer interests and demand.
American Eagle global market perspective
Why is it important for your business?
• 57% of companies who effectively use
these social network tools outpreform their
competitors.
• Estimates of 630 Million users worldwide
• Personalizes the consumer shopping experience
• Allows you to monitor and track certain
demographics
• Check reviews, ratings and feedback to
meet demand and supply more efficiently.
• Allows consumers to offer opinions, and
ideas on what they would like to see next
American Eagle offered shipping to more than 50 countries worldwide. Today, American Eagle goes global. In 2010, American Eagle began its international expansion with its first store in Dubai,
closely followed by stores in Kuwait, Hongkong, Russia, and Shanghai. Recently according to press release in Fubrurary 2, American
Eagle has opened its first store in Israel and ten additional stores
will be open in the next month. At the same time, Ad Age reported
that American Eagle is currently hunting for its first global agency
of record to handle work in six major global market. No exceptionally as a leading popular brand in the industry American Eagle has
the great potential to drive growth in the global market. To create
awareness worldwide, the creative social media plays a great role.
According to an internet review, more than sixty present of Consumers in China heard about American Eagle through other’s share
on the online social website. It is vital important for American Eagle to develop the use of social media.
A Model Example for the Importance
of Social Interaction
Following the advice from IBM professionals and the IBM’s,
“Smarter Planet, Smarter Retail, and Smarter Business”;
American Eagle effectively models the three characteristics outlined.
A Model Example for the Importance
of Social Interaction
According to professionals at IBM an effective
social business “embraces networks of people
to create new business value and opportunities.” A social business is an increasing fad
for Amerian’s as well as International markets
worldwide. IBM professionals have described
three characteristics to becoming an effective
social business.A business must be transparent, able to change, transform and adapt to
anything. Second, the company must portray
nimble characteristics; “quick, alert, clever
comprehension, and effective resourcefulness”.
Lastly, the company must engage the consumers.
Conclusion
After reviewing the white paper, we can finally arrive at the point
that as an competitive well-established retailer American Eagle
has a decent success on the use of social media. It is not doubt
that American Eagle takes great benefit from utilizing their social
media networking to reach their consumers and target their need.
At the same time, the uses of many other different ways of social
interactions help them to stand out among other competitors.
However, creating a facebook page and twitter account just simply
won’t meet the need of social media in today’s market. The growing market nationally and internationally demand American Eagle
take more active actions on social media promotion. We would
expect to see the American Egale takes further steps in its use of
social technology in the future.
Works Cited
IBM. “Smarter Planet”. Website: www.IBM.com. Retrieved February8, 2012.
American Eagle Outfitters. Website: www.ae.com. Retrieved February8, 2012.
Adage.Website:http://adage.com/article/agency-news/american-eagle-outfitters-searches-global-agency/231878/. Retrieved February 7, 2012.
8th Bridge. Website: www.socialcommerce/8thbridge.com. Retrieved February 7, 2012.
PR Newswire. “American Eagle Reaches Global Agency”. Website: www.prnewswire.com. Retrieved February 9, 2012
Other information retrieved from American Eagle’s Facebook and Twitter pages.