1. Brand management project

2. 2 / 45
Agenda
• Company overview and actual
strategy
• The re-branding strategy

3. Company overview
and actual strategy :
Company analysis

4. 4 / 45
WHO IS AMERICAN APPAREL ?
• A North American clothing manufacturer,
designer, distributor, marketer and retailer
based in Los Angeles, California.
• It sold about 125 million dollars of
domestically manufactured clothing outside
of America
• More than 200 stores worldwide
• The company employs more than 10,000
people and operates more than 200 retail
locations in 20 countries.
• Despite it was one the fastest growing
companies in 2005, American Apparel was
bought by Gildan Activewear due to the
bankruptcy of the company.

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TIMELINE
2003
2004
2005
2008
20141989
1997 2015
2017
Founded by
Dov Charney
in Montreal
Moved in Los
Angeles and
met Sam Lim
Opened the
first Retail
Store in L.A
Launched
e-commerce
website
Part of the fastest
growing
companies in USA
Opened stores in
Asia, Australia, …
Sales started
declining
High losses and debt
New CEO for the
company Paula
Schneider
Bankruptcy of
American Apparel
Sexual harassment
lawsuits
Purchased by
Gildan Activewear
a Canadian
manufacturer of
branded clothing

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PEST
Recession had a great impact on the
market sales
Consumer spending habits change
Rise of cotton price
ECONOMICECONOMIC
Increase of the e-commerce and
mobile connection
Using online shopping the companies
can understand the real interaction
between customers and their brand
Interactive shopping experience
Technological progress helps to
satisfy at the maximum the needs of
consumers
ECONOMICTECHNOLOGIC
Increase social networking
Larger demand for ethical fashion
Rise of fashion blogging
ECONOMIC
SOCIAL
Respect of work condition of the
country
Respect of the copyrights and
guarantee all their designs are
original
Producer responsibility obligations
Labelling of textiles under national
organic program regulations
ECONOMIC
POLITICAL

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Popularity of products
Demographic
Mission statements produces
brand loyalty
Vertical integration
Strong supplier relationship
STRENGTHS
Limited product mix
High fix cost
Negative brand perception
Financial restriction
Rapid store expansion
No variation in clothes style
WEAKNESS
E-commerce business
Retail expansion
“Made in USA”
Community event
Sponsorships
Improving public image
Attracting new consumer
types
Digital advertising
OPPORTUNITIES
THREATS
High competition
Cyclical trends
Quite expensive
Economic condition
Raising cost of raw materials
SWOT

8. 8 / x
High Price
Low Price
High QualityLow Quality
POSITIONING MAP

9. Company overview
and actual strategy :
Target/Stores/Advertising

10. • Young Urbanites
• Progressive Thinkers
• Young, metropolitan adults
• Aged 20 to 32
• Culturally sophisticated
• Creative
• Independent-mind
• Interested in world events
• Buyers by e-commerce
• Looking for high-quality
fashion and basic designs
TARGET

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STORE LOCATION

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ADVERTISING
In 2012 American
Apparel had an ad
banned for “sexualizing
minors” – it featured a
teen girl wearing nothing
but white tights.

13. Company overview
and actual strategy :
Main competitors

14. 14 / 45
“Fashion and quality at the best price”
Founded in 1947 by Erling Persson
21,9 million of followers
31.404.089 likes More than 4000
stores in the world
Celebrity clothing lines
Simplicity Teamwork
Respect
Cost
consciousness
Entrepreneurial
spirit
Openness

15. 15 / 45
The largest retailer of fast fashion clothing in Europe
Founded in 1985 by Amancio Ortega
21 million of followers
25.707.051 likes More than 2000
stores in the world
Zara creates 500 or more new fast fashion,
short-lived designs each month
Beauty Clarity
SuistainabilityFunctionality
Quality High Customer
Service

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“For every generation there’s a GAP”
Founded in 1969 by Donald Fisher
1,7 million of followers
8.628.111 likes More than 3700
stores in the world
Old Navy focuses "fun, fashion, and value"
for families and younger customers
Diversity Creativity
Suistainability
Social
Responsibility
Quality Simplicity

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“United colors of Benetton”
Founded in 1965 by Luciano, Giuliana,
Gilberto and Carlo Benetton
298.000 of followers
6.118.217 likes More than 5000
stores in the world
Sponsorship of sports and events
Passion
Democratic
price
SuistainabilityResponsibility
Quality
Innovativeness

18. Company overview
and actual strategy :
Digital presence

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COMPETITORS PRESENCE
Frequency post 4/5 per day 4/5 per day 2 per day 2 per day 2 per day 2 per day 2 per day 2 per day
Sentiment Positive Positive Positive Positive Positive Positive Positive Positive
Content
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Promotional
photo and
video
Tone of voice
Formal
Informal
Formal
Informal
Informal Informal Informal Informal Informal
Formal
Informal
Engagement Normal High Low High Low Low Low Low

20. 2.100.000 followers
562.000 followers
1.665.000 likes
20 / 45
AMERICAN APPAREL PRESENCE
1 publication/day
5 publications/week
1 publication/day
Low
engagement
Low
engagement
High
engagement

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Product and Services Communication
Environment Behavior
Youth
Sexual
Young
Provocative
American
Clothes for men,
women and kids User-generated content
Twitter
Instagram
Facebook
Billboard advertising
Physical stores
Online store
(being built)
High quality
High price
Basic design

22. The re-branding

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MIND MAPPING

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OBJECTIVES
Improve brand perception
Refocus on social consciousness
Increase in sales and market penetration
Introduce a new product line in link with the website

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NEW LOGO
USA flag  American products
Circles  targeting our potential
customers
Double A  Initial of American
Apparel

26. The re-branding:
Product strategy

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Marketing Strategy: the product
Market penetration: despite the high quality of
products, some consumers believe that product
prices are too high so the strategy involves
introducing a new product line at a lower price.
With this diversification strategy, the company
aims to expand its target of consumers while
maintaining the high level of quality of its
products.

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Marketing Strategy: the product
KarlLagerfeld
for
Customer retention: a collection designed by a famous stylist or
American singer/actor presented in a special event.
A new catalogue and collection will be created specially for the
event and after it, customers will be able to buy their favourite
clothes on the e-commerce site .
The event will be advertised on internet, fashion magazines and
by PR.

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Marketing Strategy: the product
CUSTOMIZE
There is no doubt that technology is
heavily influencing the retailer businesses:
nowadays customers use their smartphone
as a real shopping tool that allow them to
have a real shopping experience.
In fact, it's crucial to have an e-commerce
site where consumers can choose and buy
their favourite products.
The American Apparel's official website
will be re-created and consumers will not
only choose and buy their favourite
clothes, but there will be a section where
the user can customize the product
chosen and make it unique.
American Apparel

30. The re-branding:
Communication strategy

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COMMUNICATION TOOLS (1/5)
Contest
Events
UnconvationalMarketing
Sponsorship
Celebrityclothinglines
Brand ambassadors GUERRILLA MARKETING
One of the Guerrilla
marketing techniques to use
in order to introduce the new
logo will be to project the
brand logo on the most
famous monuments scattered
throughout the world.

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COMMUNICATION TOOLS (2/5)
BRAND AMBASSADOR
• Emma Watson
• Against sexual harassment
• Fight for their rights

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COMMUNICATION TOOLS (3/5)
Is a type of unconventional marketing used to strike
the imagination and stimulate the curiosity of
consumers.
That's why we will use it to capture the attention of
our target audience who are young travelers who
are both on business and pleasure visiting public
transport and public transport in major European
cities.
GUERILLA MARKETING

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COMMUNICATION TOOLS (4/5)
SOCIAL MEDIA CONTEST
To create the engagement of our target audience we will start a social
media contest on Instagram:
Users will have to take photos by wearing American Appareal fashion
clothing enhancing their creativity. The user who creates the most
creative and most like content will win a trip to Los Angeles where he
will have the opportunity to visit the company and his photo will be
published on the official page of the brand.
This will increase brand awareness.

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COMMUNICATION TOOLS (5/5)
Among the digital advertising tools
included in the new strategy, SEO and
SEM will be used: through the use of
branded keywords, SEO and SEM will
increase the consumer awareness and
the traffic on the American Apparel's
website
SEO AND SEM

36. The re-branding:
Environment strategy

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PHYSICAL STORES
Store Concentration
in the US (about 70) and Europe
(about 30) in the main fashion
cities
Store Characteristics
Seasonal change of interior design
Brightly lit
Minimalistic design

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E-Commerce Store
Design like a journey trough the physical store

40. The re-branding:
Brand behavior

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BRAND BEAHVIOR: what happened
American Apparel has implemented a very provocative and
strong communication strategy that has led the company's
image to a negative conception of the brand, in the eyes of
competitors, but above all of customers, internationally.
In 2015, The Advertising Standards Authority (ASA)
ordered an advertising to be removed after receiving a
complaint that it was irresponsible and offensive because it
portrayed a sexualized image of a model who looked under
16 years of age.
ASA said: “we considered the ads had the effect of
inappropriately sexualizing school-age girls and were
therefore offensive and irresponsible for that reason too.”
New Objective: Revamp Brand Image

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WORKING CONDITION
In previous years, the company has been accused of
acting behaving at the time of recruitment: American
media accused American Apparel to evaluate their
employees on their appearance, and their
employment and advancement in the company
depended on it.
The Brand’s objective will be the enhance the skills of
future employees and to evaluate them based on the
contribution they can give to the company.
The change and valorization of values must start from
the inside, from the satisfaction of employees, and
then reach the consumers!

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AMERICAN APPAREL: #BEAUTYFOREVERYONE campaign
To enhance the brand identity and brand image
of American Apparel, the new strategy will be
focused on the enhancement of all types of
bodies. #BEAUTYFOREVERYONE will be the
official hashtag of the new campaign.
The goal is to become the bearer of values as
inclusion and acceptance of diversity, values
that have always been characteristics of the US
image.

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EXPECTED RESULTS
Better brand image and reputation
Increase sales of 20% in the European and North American markets
Increase market share in niche market of 14%
Creation of customer brand loyalty with the two new product lines
(premium and basic)

45. Thanks for your attention ! Any questions ?