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Framework for COB Analysis

Presentation 1
1) Identify COB : Aeropostale

2) Observations (brief) 2.1) What does this COB do?


mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men 7 to 12 year-old kids through its P.S. subsidiary

2.2) Any unique or interesting aspect? They did not try to open so many locations in Singapore but focused in strategic high crowd traffic such as Citilink Mall and Ion orchard. Both stores are located next to New Look ( could it be possible under same company?) Strategic location : Differentiation ( in between New Look and Zara which caters to different target customers) Apparels are brightly colour based

INCLUDE 4PS TOO (to identify Aeropostale/make them stand out)

3) Analysis a) Industry Analysis - trends + environmental factors (brief) b) Nature and extend of demand + customer analysis (brief) For the Asian market, consumers may not know that aeropostale is targeted at 14-17 yr olds. Since Asians have small sizes, those outside the age range may still buy the apparels. Observation: Not only 14-17 years old goes in, for Asian market it will not work for 1417, may even cater for older age range, hence this works to their advantage. Their quality is thin and light hence suitable for Singapores weather (will they bring in winter clothes too? Might be to cater to travellers) c) Competitor Analysis (some of Hannas points, lect 2) 1) Identify the competitors 2) Assess competitors objectives, strategies, strengths, weaknesses and reaction patterns 3) Select which competitors to attack or avoid 1) Strong/weak competitors Abercrombie and Fitch, Cotton On, Fox 2) Close/distant competitors Zara, New Look 3) Good/bad competitors Denizen * Find uncontested market spaces Blue Ocean Strategy

d) COB Analysis 1) TOWS (most important)

Threats (T) - Competitors (AnF, GAP, F21, FOX hoodies? UNIQLO colours?) - Commodity prices (eg. Cotton price) - Current and emerging external factors that may challenge the companys performance. T1. Economic Crisis T2. T3.

Opportunites (O) PLACE - Go into intimates? As it appears to be successful and profitable with other brands like AnF Gilly Hicks and American Eagles Aerie line) - Sell bands placed on models - Expansion of P.S - Expansion of mens wear/lingerie of men/mens perfume (more range of mens clothes at ION) - **Aero trying market - Website, online shopping (which is still lagging in Singapore/Asian region) - Adopt their strategies that they have organised overseas - AERO membership? (loyalty points PLUS special cards targeted specifically at target groups (eg. 16-21) to create an

AERO kids just like AnF who allows people to have a unique image - Just testing market, hence not working so well now? SO HOW CAN WE HELP THEM BECOME MORE SUCCESSFUL? - Provide accompanying products/match different products together - Should have an AERO Singapore fb account to find out about trends in Singapore - Need built more rapport with local market - Should market image in local context, FOR NOW JUST TESTING WATER - More interactive website for Singapore - Compare withUNIQLO (for bright colours) and why HANGTENs colours do not work? External factors that the company may be able to exploit to its advantage

Weaknesses (W) PRODUCT (limited), PROMOTION (too much?), PRICE (too low prices?) - Limited product range (should have local celebrities etc

(TW) How can we avoid threats and minimise our weaknesses? (differentiation?) Avoid threats? - Hard but they try

O1. O2. O3. (OW) Are there opportunities we can exploit and even surmount our weaknesses?

just like other countries) - No hype created - Promotional strategy not matched up to AnF - Problems? (Dye pollution?) - Too much sales? - Cotton on has a lot of sales, but people patronise them more than AERO, why?? Dont suit our image? - Generalised products, not targeted specifically at Singaporeans - Hard to suit our weather - Might not match up to constantly changing trends - Too much colours? - Singaporeans are still quite conservative hence not comfortable to the bright colours? - Do not have a facebook targeted at Singapore group - Clothes colours too distracting? - Bright colours might dissuade older adults from going in - Lack awareness (can do marketing survey) Internal limitations that may interfere with a co.s ability to achieve its objectives. W1. W2. W3. 1. Strengths (S) PLACE, PRICE - intermediaries to help cut prices, different manufacturers for Asian market) - good relationship

to provide brightly coloured clothes? Rising cotton prices should not always have sales? Or should limit their sales Have a wide product range Come up with a range targeted at Singaporeans like eg. Sunsilk Opening more stores Expand into the heartland malls where most teenagers visit (eg. DENIZEN seen in Jurong point, NEX, VIVO), this can help save in location cost too/decrease rental cost and decrease competition with big brands Its good that they start in orchard too, but can start expanding into heartland malls Should create hype next time? Eg. In orchard like what AnF did (in general)

(TS) How can we avoid actual or potential threats by utilising our strengths?

(OS) How can we maximise these opportunities by relying on our strengths?

with suppliers to decrease product cost and on-time supply of goods - In between ZARA and NEW LOOK to make them stand out (ION branch), plus new look displays shoes on the same level as AERO plus new look does not offer mens wear and ZARA is more of high end. - Pricing strategy - Display of colour, brightly coloured clothes, very youthful, grabs attention and brand name placed on clothes easily identifiable - Great discounts! Sign boards placed outside stores - Chasing hence choose citylink and ION, citylink for locals and ION for travellers - Put in malls/departmental stores compared to AnF to increase market shares - Social awareness eg charities - Good relationship with suppliers - Interactive customer experiences - Take care of employees - Manufacturer their own clothes Internal capabilities that may help a company reach its objectives. S1. One of the best workplaces/ company to work for S2. S3.

2) Positioning & differentiation 3) Target segment and financial resources (Hannas points) 4) Product/service analysis life cycle, pricing, distribution

Presentation 2
4) Problems and Opportunities - Highlight issues + rationale for selection 5) Generation and evaluation of alternatives - What are the competitive strategies aeropostale can employ? 6a) Financial evaluation of alternatives 6) Decision 7) Implementation and contingency plans

Marketing survey? What do you think of Aeropostale? Will you buy it? Why or why not? Ask those that enter and those that view but did not enter?