Case Analysis - Eddie Bauer Essay

1505 Words Mar 21st, 2011 7 Pages
Eddie Bauer Analyzes High Value Customer Segments

Marketing Plan

Executive Summary In 1999 Eddie Bauer was a $2 billion apparel retailer, generating 25% of its revenue from its catalog operation and the remainder through its 600 stores. Eddie Bauer operated in the textile clothing industry in the United States, Canada, Japan, UK and Germany. The

company sold causal and office wear clothing to men and women, which is what we will be focusing on. Moreover, they also had eyewear, bicycles, furniture and home furnishings. They marketed their products in three segments, retail stores, catalogs and Internet websites. Eddie Bauer had 555 retail stores located in the United States. They produced and distributed over 4 million
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To ensure the 3 channels presented a unified customer experience through synergy, products should arrive in stores at the same time that catalogs arrived in homes and items appeared on I-media. Prices should be the same and also markdowns should be taken on the same items and at the same time across all channels. Customers could return products ordered from the catalog or I-media to the store as well as order catalog products through Customer Order Desk. However, the catalog and I-media offered some product lines, items, colors and sizes that are not in stores with limited space or display problem. Because Catalog and retail used different distribution centers, same item may be packaged differently. During holiday, products could be ordered one month earlier via Catalog or I-media than Stores.

Financial Projections and Analysis T GAP he Net Sales COGS Gross Profit SG&A EBIT DA Interest Income before T ax T ax Net Income 9,054,462 5,318,218 3,736,244 2,403,365 1,332,879 13,617 1,319,262 494,723 824,539 100.0% 58.7% 41.3% 26.5% 14.7% 0.2% 14.6% 5.5% 9.1% Abercrombie & Fitch 815,804 471,853 343,951 176,993 166,958 (3,144) 170,102 68,040 102,062 100.0% 57.8% 42.2% 21.7% 20.5% -0.4% 20.9% 8.3% 12.5% Eddie Bauer (Retail) 982,251 522,660 459,591 363,330 96,261 74,672 21,589 8,635 12,954 100.0% 53.2% 46.8% 37.0% 9.8% 7.6% 2.2% 0.9% 1.3% Eddie

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