The document outlines a music branding strategy for American Eagle (AE) consisting of several initiatives:
1) Implementing a Manager Mix Tape program in stores to influence customer behavior and perceptions.
2) Opening AE Rockstar Suites in select stores to create an interactive in-store experience and drive sales.
3) Launching an AE Mash-Up contest and campus block parties to engage young consumers and increase online engagement.
The goals are to strengthen AE's brand awareness, enhance customer loyalty, and increase conversion rates. Market testing will evaluate each initiative's impact on revenue and brand metrics.
5. Genres Expected Genres Expected
(Everyone) (AE Core Customers)
Alternative Alternative
Classical/Instrumental Classical/Instrumental
Country Country
House/Techno House/Techno
Indie Indie
Jazz Jazz
Pop Pop
Punk Punk
R&B R&B
Rap Rap
Rock Rock
0% 20% 40% 60% 80% 0% 20% 40% 60% 80%
7. STRENGTHS OPPORTUNITIES
• First steps in • Solidification of
music branding music: brand
• Consensus of connection
musical „fit‟ • Online
WEAKNESSES THREATS
• Weak connection • Misconceptions
between brand of music
and music affiliation
• Competition‟s
association
with AE‟s music
8. Based off of concepts created by Heartbeat Inc CEO Jakob Lusensky
9.
10. • Store Manager acts as DJ
• Control in-store environment with
premade, situation-specific mixes
Goals
• Invoke specific moods
• Create an attractive shopping
atmosphere
• Encourage productivity of staff
• Influence customer/staff interactions
• Affect perceptions of total quality
• Drive sales
12. • Group music into playlists organized
around beats per minute (BPM)
• Play at certain volume level based
upon present in-store situation
• Train store managers in correct usage
of MMT
• Manager‟s discretion to manipulate
setting to optimize the store situation
13. • Simple random sample of 100 stores
for pilot program
• Comparison of pilot stores‟ average
revenue growth relative that of control
stores
• Wider implementation pending positive
results
14.
15. • Remodel changing rooms
• Our vision: rocking out to AE College
Radio in new AE apparel
• Create an enjoyable, interactive experience
• Create a competitive edge for AE
• Create an innovative in-store experience
• Drive in-store profits and conversion
16.
17. Social Networks AE Characteristics
4Square
Casual
Google+
Friendly
Twitter
Popular
Other
Upbeat
0% 50% 100%
0% 20% 40% 60%
Do you prefer to shop alone
or with others? Do you enjoy being
Photographed?
Always with others
Sometimes with others
Sometimes Alone No
Always Alone 38%
Yes
0% 20% 40% 60% 62%
18. • Create a unique in-store experience
• Drive in-store sales
• Connect the AE brand with your music
• Viral advertising
• Strengthen brand awareness
• Drive conversion
19. • Number of customers entering
Rockstar Suite
• Songs played
• Photos uploaded online
• Increase in sales for particular stores
with Rockstar Suite
20.
21. • Introduce a Mash Up contest for
college students & young aspiring DJs
• Have fans vote online for their favorite
mash up
• Involve (20-21yr old) consumers
• Increase online traffic
• Create excitement
• Drive word-of-mouth advertising
22. • Announce contest (6 week run time)
• People allowed up to 5 song
submissions
• AE judges narrow the field to top 20
• Voting on AE website (2 week run time)
• Prize breakdown for Top 10
23. • Increase brand awareness/ internet
traffic
• Control download costs
• Standardize competition
24. • 12 On-Campus “AE Mash Up Block Party”
• Offer the top 5 DJ‟s an opportunity to tour
• Involves utilizing AE‟s network of College
Representatives
25. Contest
• Contest participants
• Increase in web traffic
• Number of votes cast
• Increase in social media engagement
Block Party
• Number of attendees
• Revenue increase in surrounding
stores
26. Based off of concepts created by Heartbeat Inc CEO Jakob Lusensky
27. Total Cost for Mix Tape $0
Total Cost for 170 AE Rockstar Suites $ 739,491.50
Total Cost for Mash-Up $ 275,100.00
Total Cost for Mash-Up Block Party
$ 480,000.00
(12 Cross-Country Tours)
TOTAL BUDGET $ 1,494,591.50
EXCESS CASH-FLOW $ 5,408.50
28.
29. 1. North, Adrian, and David Hargreaves. The Social and Applied
Psychology of Music. New York: Oxford: University Press, 2008.
Print.
2. North, Adrian, and David Hargreaves. The Social Psychology of
Music. New York: Oxford: University Press, 1986. Print.
3. Muzak. 2011. Web. <http://www.muzak.com/>.
4. 2011.Web.<http://www.prx.org/pieces/6674>.
5. 2011.Web.<http://rockrivermusic.com/>.
6. 2011.Web.<http://www.soundslikebranding.com/>.
7. 2011.Web.<http://www.youtube.com/watch?v=AYUzt0IkIe8>.
8. 2011.Web.<http://www.youtube.com/watch?v=_Rg63kZfugM&fea
ture=results_video&playnext=1&list=PLDDC9C00A615E7BF2>.
Editor's Notes
Music =utility exerts enormous influence & Has the potential for AEEnhance AE’s marketing effectiveness enticing in-store environmentMusic influences our behaviors Fostering customer and staff interactions. Music affects consumers’ perceptions of service, merchandise quality, & overall shopping experience.Music creates an emotional connection Touch consumers’ hearts Connection = competitive edge for the AE brand, strengthening consumers’ awareness thereof, enhancing brand loyalty, and driving conversion.
Although we researched the brand and toured storesUsed survey to gauge consumer perceptions of AE’s music brand. We used Qualtrics, a tool used by marketers to analyze survey data and designed a detailed survey.Of our 300 participants, the majority were 20-21 year old college students, and 65% were female.
The data from our survey shows significant consensus between AE core customers and consumers at large regarding the music each expects to hear played in AE stores. Pop, alternative, indie, and rock are firmly represented, with small spikes in country and R&B. The AE brand’s relationship with music is unconsciously – yet quite accurately – recognized.
These graphs represent the degree to which our survey participants associate AE and 3 competing brands with music. Consumers are not yet making conscious connections between these brands and their music. AE = middle of the pack, in terms of their music brandingThere is room for at least one to profitably fill a niche.
AE’s strengths lie in their desire to truly connect their consumers and their music brand. They’ve already taken great strides to create awareness of musical “fit.” OpportunitiesEstablishment establishment of a strong music brand connection by getting your customers involved with the music brand. Other opportunities exist with an online music branding strategy.Main Weakness = lack of association between brand and music. Main Threat = misconceptions some people have of what AE should be playing and what they are playing such as the small spikes of R&B and Country from the survey, which do not appear to align with AE’s current college radio.
3 major stages in developing a successful music branding strategy- Music branding begins unconsciously - consumers do not recognize the associations between the brand and the music.The second stage is a conscious awareness of the brand’s involvement with music.The third stage represents actively engaging the consumer through music.Most consumers are unconscious of the connection between music and the AE brand. Main objective: capitalize on the consumers’ conceptions and evolve AE’s currently existing music branding strategy, so as to encompass all three stages and thus further solidify the relationship between brand, consumer, and music.
Our first idea is an in-store concept we called the managerial mix-tape.
There exists an unconscious consensus regarding AE and the music they expect to hear while shopping in-store.Musical Fit Consumers whose music expectations are realized are more comfortable and at ease. A particular song may not, however, be especially appropriate for a given in-store atmosphere. Task the store manager with directing the mood with a series of “mixtapes” – organized around tempo and volume, parameters that reinforce consumers’ unconscious association of music and the AE brand.Goals: Invoke different moods within the store environment and create an enticing atmosphere.Increase staff productivity for high in-store traffic and increase engagement between customers & staff. Positively affect customers’ perceptions of total quality and drive sales.
Fast, upbeat music =happiness, excitement, joyEncourage heuristic processing on the part of customers and positive social conditioning for AE.louder music typically increases the average number of salesSlow music is associated with tranquility and sentimentCorrelates with slower shoppers using greater analytical and higher-cognitive shopping schemas, and higher intentions to purchase. Sales typically increase with slower music, an effect attributed to the longer time consumers spend in the store.
The Managerial Mixtapesplaylists organized according to the songs’ average beats per minuteplayed at certain volume levels correspond to the level of foot traffic in the store At the discretion on the manager to effectively pair the music with its appropriate in-store correlate:In the high traffic situation = the store manager wants fast, loud music. Promote heuristic processing, with consumers shopping faster because they are not closely analyzing their product choicesCreate smoother customer flow and generate more sales. A high volume will result in an increase in the average number of sales per minute for staff. They will work faster and get customers out of the store faster.In the medium traffic situation = the store manager wants fast, soft music. Same feelings of happiness and positive in-store experience.The softer, reduced volume will encourage customers to take their time, while still relying primarily on heuristic processing.In the low traffic situation, the store manager wants slow, soft music. Promote a more analytical and attentive shopping approach and customers will focus more intently on AE’s product selection.The softness of the music will increase the amount of time customers are in the AE store.Increase customer/staff interaction.
Implementing the MMT program in 100 ‘pilot’ storesAssess the effectiveness after one fiscal quarter of that program by measuring those stores’ average growth in revenue against the same metric applied to those stores not in the ‘pilot’ program. The MMT program could then be more widely implemented depending on the effectiveness of the pilot program.
Our second idea is called Rockstar Suite.
Rockstar Suite transforms changing rooms into a space for personal expressionCustomers consciously integrate music into their shopping experience.Opportunity to connect AE brand, AE music and rock out. AE = unique, fun, and current & challenge to maintain competitive edge.Rockstar Suite addresses these two pointsEntirely new in-store experienceEncourages connection between customers and the AE brand customers are conditioned to develop a conscious association between AE and the music they love. Emotional investment will ultimately drive in-store profits and customer conversion.
This is Rockstar Suite.Entering Input his or her email address or member ID into the tablet on the wall. Offer only AE’s College Radio tracks available reinforces the customer’s association of AE with its musical identity. A webcam set in the wall allows customers to upload to their favorite social networks pictures
AE is all about being unique, fun, and current. However, while 73% of those who participated in our survey agreed that they “liked to try new things,” many did not consider AE innovative and fun. Answer = Rockstar Suite says in a big way that AE is still novel and trendy, and aims to be ahead of the curve, surpassing expectations.65% of our survey participants shop with friends, and 62% enjoy having their photo taken. Rockstar Suite accommodates these data by providing direct access to today’ssocial media.
Goals:Increase in-store traffic, drive sales, and convert customers.Rockstar Suite is a space for developing a strong conscious connection between the AE brand and its music. Harnessing customers’ own social networks allows for a conversion driven by a spontaneous and organic word-of-mouth, “word-of-wall” advertising.
ROI can be measured with tablet. Data can be easily collected concerning The number of customers that have entered Rockstar suite over timeThe songs most often selected for playHow often they were selectedHow many individual photos were uploaded from Rockstar suite.The increase in patronage and sales for the exclusive stores with Rockstar Suite is also a key indicator of its success.
Our Final Idea is the Mash-Up Competition
Goal: engage the college customer designed to prime customers to AE’s music brand through involvement. Mash up contestInvolves college students and djsCreate a Mash up with the songs contained in AE’s College Radio PlaylistWord-of-mouth advertising.Thetop 20 contestants will actively campaign in support of their mash up.Modeled this competition on the pop culture voting phenomenon, but with an online twist allowing students the chance to vote for their favorite mash ups.
Initial announcementAmple time to create mash upSubmission pool is narrowed to the top 20 selections by a panel of judges selected by AE.Once the top 20 are decided, voting takes place on AE’s website.
Prototype of Mash Up InterfaceIncrease internet traffic & create more brand awarenessReasons for containing music in AE website:Keep licensing costs lower. Drive online traffic. Standardizing the competition. Doing so will limit the available songs, and standardize the software available our contestants.
Top 5 DJs will be given the chance to tour 12 college campuses across the US. Grass roots event Designed to increase brand awareness on different college campusesUtilize network of AE repsCustomized to that college’s individual culture.
Mash up ContestThe number of profiles used to submit songs to the contest The number of votes cast for the top 20 Mash ups Increased site traffic Can measure contest awareness through popular social medial channels.The Mash Up Block Party EventNumber of attendees at each event. The increase in revenue generated through the surrounding stores of each event.
These three ideas coincide with our overarching music branding strategy. Our ideas were designed with the intention of evolving AE’s music brand to create a closer relationship with the customers. With our music branding ideas, Unconscious = Managerial Mix tapeConscious = Rockstar SuiteInvolve = AE Mash up Competition.