Case Study on American Apparel By Liza Bain, Aaron Brown-Kert, Andrew Hyde, Maxie Winick and Mark Gronowski For Marketing Management Class Use for educational purposes only

1. American Apparel
Made in LA
Natural Beauty
Community
Aaron Brown-Kert
Liza Bain
Maxie Winick Sustainability
Mark Gronowski
Andrew Hyde

2. American Apparel Situational Analysis
Made in downtown Los Angeles
• American Apparel Business Segments:
– U.S. Wholesale
– U.S. Retail
– Canada
– International/e-Commerce

3. American Apparel Market Summary
Made in downtown Los Angeles
Target Markets:
• Young Urbanites
Captured through:
• Social consciousness
• Lack of visible branding
• Quality products
• Reasonable pricing
• Sexual imagery

4. American Apparel Market Demographics
Made in downtown Los Angeles
• Demographics
• Geographics
• Psychographics

5. American Apparel Market Summary
Made in downtown Los Angeles
Market Needs
•Product Quality
•Corporate Social Responsibility
•Customer Service
Market Trends
•Technology Dependency
•Casual Attire and Quality Product
•Progressive Thinking
Market Growth
•Forecasted Growth

6. American Apparel SWOT Analysis
Made in downtown Los Angeles

7. American Apparel
Made in downtown Los Angeles
Marketing
Strategy

8. American Apparel Marketing Strategy
Made in downtown Los Angeles
•Market Penetration
•New target markets
•Customer Retention
•Improving public image
•Product Quality
•Maintaining and improving standards

9. American Apparel Mission Statement
Made in downtown Los Angeles
American Apparel is a vertically integrated clothing
company dedicated to creating quality lasting clothing,
handmade in America. With the highest standards of
excellence, American Apparel sets industry standards of
social and environmental responsibility in the workplace
while promoting natural beauty, community involvement
and sustainability.

10. American Apparel Marketing Objectives
Made in downtown Los Angeles
• Improve brand perception
• Refocus on social consciousness
• Achieve an increase in market penetration by
introducing a plus size line
• Increase local marketing activities at store-level

11. American Apparel Financial Objectives
Made in downtown Los Angeles
• Double digit growth
rate for each
consecutive year
• Reduction in costs
associated with
operating expenses by
improving efficiency

12. American Apparel Financial Objectives
Made in downtown Los Angeles

13. American Apparel Strategic Objectives
Made in downtown Los Angeles
• Introduce a Corporate Social Responsibility
campaign
• Penetrate the new “full-figured” and “progressive
thinkers” target segment
• Introduce a new product line that combines
American Apparel’s core competencies in
product quality and advertising
• Create Brand Ambassadors

14. American Apparel Target Markets
Made in downtown Los Angeles
Target Markets:
• Young Urbanites
• Progressive Thinkers
• Full-figured

15. American Apparel Positioning
Made in downtown Los Angeles
• A unique vertically integrated
manufacturing system
• A business model which
concentrates on developing
value for customers and the
community
• Providing a sustainable and
sweatshop free alternative to
quality clothing

16. American Apparel
Made in downtown Los Angeles
Marketing Mix

17. American Apparel Marketing Mix: Product
Made in downtown Los Angeles
• Quality must continue to be at forefront of
American Apparels strategy
• Updated merchandise mix
• Discontinuation of unprofitable lines
• Expand to include plus-size line

18. American Apparel Marketing Mix: Place
Made in downtown Los Angeles
• Hubs for Urban Renewal
• College and University towns
• E-commerce with an emphasis on E-marketing
• Store locations with bright and inviting
atmosphere

19. American Apparel Marketing Mix: Price
Made in downtown Los Angeles
• Leave premium price to communicate value
• Maximize current profit to increase liquidity
• Special-event pricing to draw in more
consumers

20. American Apparel Marketing Mix: Promotion
Made in downtown Los Angeles
• Emphasize image of social
consciousness
• Transformational appeals
• Brand Ambassadors: engage
consumers, create positive
brand image
• Public Relations

21. American Apparel Sales Forecast
Made in downtown Los Angeles

22. American Apparel Expense Forecast
Made in downtown Los Angeles

23. American Apparel Contingency Plan
Made in downtown Los Angeles
• Difficulties & Risks
– Competitors developing clone products at
lower price offerings
– Plus size clothing line fails to generate
additional revenues
– Financial burden of labor expenses