Aéropostales main business strategy is a combination of product differentiation and cost leadership. The brand is well known here in the United States. They have stores in malls across America. However with this approach of having their own stores they look like they are going after making the brand well known so they can charge more. This is not the case. They charge cheaper prices than most if not all the retail stores in the mall.
In 2012 Aéropostale had 1092 stores under their control. (Aeropostale, 2014) This gives them a sizeable market in the United States to sell. The mission statement of the company is for them to be the destination of the young adult market. For people to want to go there it means they are looking for a product differentiation strategy. They want people to know there brand very well. They are trying to become a popular brand that is worn by a lot of people. This means they need to stick out.
Although they are trying to do a product differentiation strategy they are also trying to be a cost leader at the same time. There prices tend to be cheaper than many other competitors such as Abercrombie, American Eagle, and Hollister. Compared to these brands they do not stick out as much. They are able to get brand awareness at a cost. Their prices bring customers in who are budget minded. Their style is also very similar to all of the other brands. This does not allow them to achieve the desired product differentiation strategy well and why they have implemented a lower cost to their products also.
Very recently they have changed their goals though. They are keeping the main values which are integrity, respect, honor, and teamwork. (Lomax, 2013) They are trying to use the pillars as a way to succeed in a very hard market. But they are not focused on being the same type of brand as Abercrombie or American Eagle. They are focusing more on styling now and not as much on putting their symbol on every piece of clothing possible. (Team, 2014)
The new looks stands out compared to what they have done in the past. They no longer are considered copy cats. In the past they have taken the same basic designs as the other brands and put their name on it. They then sold it for a cheaper price. With the new designs they are changing their image to a better one. They are making themselves a destination store again.
They have in the past year changed how the store looks and feels. They are making it a destination in the mall to go to. They are launching new brands based on hit shows online and TV. These shows have a huge fan base of teens, which are the target demographic for the company. These collections are going to push Aéropostale into a bigger audience just from the popularity of the shows. This is a key to the product differentiation strategy they are focusing on.
Price is another key that makes Aéropostale a destination for teens. While they are maintaining a high brand with product differentiation they are still focusing on...