Abercrombie & Fitch (A&F) is a luxury apparel store that carries casual sportswear apparel, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for women, men and kids. A&F has three main store divisions-Abercrombie kids, Hollister, and (;illy Hicks. Unlike the rest, Gilly Hicks is focused on selling undergarments as opposed to apparel. A&F plans on further expanding their brand international, especially in the Asian market. Abercrombie & Fitch also hope on increasing the company’s retail space as well.
Current organizational mission: High-end apparel and accessories Store for the teens. young adults and kids market. Current ownership and management alternatives: Company Current goodsfservice category: sportswear. graphic t-shirts. jeans. shorts. sweaters. outerwear. perfume, accessories, and undergarments (frilly Hicks)
2. SWOT Analysis Strengths o Popular brand of clothing o Well-known logo (moose) o 3 store divisions- Abercrombie kids, Hollister, and ray Hicks o Reputation of high quality clothing o Internet Sales o Made plans to expand its online business in Canada and Europe.
o Social Media o International- Great Britain and Europe o Self-advertising. They have their employees wear the clothing as they work. The modek also sell products in the store. o Children who shop at Abercrombie Kids may he inclined to shop at A&F and Balks:a when they get older. And the female consumer an also shop at Gaily Hicks.
o Volhai the economy is down. like the Great Recession. it is hard to sell apauive clothing, From 2007-2009 A&F’s it-values declined at an annual rate of 11.
6% Did not offer discounts to boost sales during this time o Competitive market o Most pwpk are preferring lower priced brands o No big saks o Show more of the actual clothing in the ads o Their advertisemenk can turn people off. They consist of young men and women. usually showing a lot of skin
o Since they are airing for the Asian Market maybe they can bring in Asian
models as well, for their ads. o Hollister needs more distinctive clothing and atmosphere that sets it apart from A&F. For cram*, you can basically get the sane sweater at A&F and get the almost exact one at Hollister in a different pattern or color. The only main difference is the logo and price.
The saxes themselves are similar too. Both stores arc lightly
dimmed, sectioned off distinctly between the girls and boys, and
have a smell of their perfume brand o They are not known for sale. A&F might be able to reach more consumes if they had offered more sales or discounts. They do have promotion codes, but that’s not much. And if they do have some, they need to make sure people know about it and spread the word. o Should spend more time building up the image of the Gilly Hides brand. The store is not well known. It would be a good stan to offer the undergarments in the A&F or Hollister stoles to get the consumers more familiar with it and also gain new customers who are interested.
Threats o Local department stores and discount store chains have been sealing up their operations o ‘Their competitors, American Eagle and Aeropostale both offer similar clothing but at a cheaper price. Both sill be adopting aggressive marketing strategies.
3. Objectives Sales:
o In 2017: Expect revenue per square foot for A&F stores to roach about $550 Hollister is expected to reach $490 Gaily Hicks is expected to reach $400 Revenues arc to increase to more that $930 million for Internet and catalog orders
Profit: o Gbbal lingerie market is expected to increase at annual growth rate of 1.5% by 2016, so that will be good for Gaily Hicks. Pnstioning: o Acquiring larger retail spaces for new stores o Remodeling some of their existing stores o Asians show interest in luxtry goods, so A&F can leverage its image to gain a position in this market o Adding flag ship stores and mall based stores in Europe and Asia Satisfaction of Publics: o Remodeling to keep the “in-store experience” as close to their brand as possible o In order to totpand its Abercrombie Kids and Gaily Hicks store brands, they are going to adopt similar marketing strategies that are used by the A&F and Hollister brands
5. Overall Strategy Controllable Vaiabies o Goodstsavice Strategy Sells luxury” women and men clothing apparel and accessories. They offer kids clothes at Abercrombie Kids and undagarments at Gilly tl ides o Location Strategy: A&F has many locations, including stores throughout the US and internationally. They are now looking into locations with an Asian demographic since Asians are more willing to buy more luxurious irons. o Pricing Strategy: Since their brand is considered high end they like to maintain that image and not have big discounts or sales. o Promotion Strategy. On their store website they do have pronto codes. The promo codes will give you a slight discount of your overall purchase. Uncontrollable Variables o Consumer Environment Not all of their target consumers can necessarily afford for such clothing at such high prices. They have a particular style and brand, and that’s not for everyone.
Uncontrollable Variables o Consumer Environment Not all of their target consumers can necessarily afford for such clothing at such high prices. They have a particular style and brand, and that’s not for everyone. o Competitive Environment: Clothing apparel is such a competitive nnrkee A&F has to cony about the stores that sell the same type of clothing but at lower prices. o Economic Environment: The one major thing that A&F nen Id have to %nay about is another recession When the last recession happened their
revalues declined I 1.6°/0 from 2007 to 2009.
6. Special Activities Daily and short-term operations: A&F prides itself in offering their customers highend apparel. They make sure that the consumer has a great -in-store experience” by remodeling and increasing their retail space. Responses to emironment: A&F does what it feels best in order to maintain their brand and image of selling luxury and high quality machandise. 7. Control Evaluation: By focusing on the Asian demographic. A&F will get their goal target consumer. someone who appreciates and can afford luxury inns. Adjustmem: While focusing on the Asian market, A&F shouldn’t take away all their attention from the consumers that they still have.