Marketing Strategy Of Abercrombie & Fitch

Abercrombie & Fitch is one of the leading clothing companies in the world. They manufacture

In a day of, “I want it now and I’m willing to pay for it,” a shopping center has to offer a variety of stores, and also have several options. The shoe shopper will go to the place with 5 shoe stores before they go to the place with only 1. They may not realize that of the 5 available shoe stores; only 1 is in their price range, but satisfying a wider variety of consumers will help the mall broaden the shopper’s experience. But it is important to remember that shoppers are price sensitive, so not only do you need a variety of stores offering a variety of products, but you also need to be able to provide a variety of price points so you don’t limit your shopper demographics.

This company now operates over 300 stores nationwide and sales everything from casual sportswear, jeans, outerwear, sleepwear, and accessories for women, men and kids (New York Times, 2014). Per Abercrombie’s mission statement “ It is our mission to continue ore efforts to support human rights, stand for and achieve diversity and inclusion, invest in our associates, give back to our communities, commit to environmental sustainability efforts and make responsible business decision. We believe in advancing corporate responsibility within our company and our industry. We are passionate about creating a stronger and more positive environment for everyone to enjoy” (Fitch,

Abercrombie & Fitch (A&F), an American retailer that concentrates on upscale casual wear for young consumers, which was founded in Manhattan, New York City in June 4, 1892 by two young minds of David T. Abercrombie and Ezra Fitch. Beginning with a rough journey of selling sporting outfits and excursion goods such as fishing and hunting equipment, A&F had to file bankruptcy in 1977. Soon thereafter, the company was revived after Jake Oshman, owner of Oshman Sporting Goods, bought A&F in 1978. A&F was relaunched as a mail-retailer company specializing in hunting wear and novelty items, but was bought by The Limited ten years after its revival. The gradual shift to focusing on apparels for young consumers began when A&F was a subsidiary of Limited Brands, and since then, A&F has grown to become one of the largest apparel firms in the United States. In 1998, A&F launched Abercrombie Kids, targeting consumers from age 7-14, which further increases its revenue. In 1999 to early 2000s, A&F’s sales skyrocketed as it hit its zenith, by portraying A&F clothing as the “coolest thing” through billboard-winning song that compliments A&F in the lyrics, as well as other advertisements. Furthermore, A&F launched a subsidiary called Hollister to tackle similar age group of target audience but with lower income. This expansion to dominate the market of teenagers through consideration of other demographic factor, namely income, was exceptional for A&F’s revenue. Presently, A&F focused on

Abercrombie & Fitch ANALYSIS REPORT Fundamentals Of Retail Design Group 03 Erik, Herr | I-Chu, Liao | Karan, Shah Kuan-Ling, Tseng | Chen-Hua, Wang ABSTRACT This report intends to analyze the unique brand values, the distinct marketing strategies and the compelling competitive dynamics of Abercrombie & Fitch (A&F), the noted American retailer of casual luxury wear. The purpose of this analysis being to understand the context and motives that drive brand A&F; to draw insights from it‘s past and current strategies and use these to launch a, new sneaker offer‘ within it‘s existing product ensemble. For doing this, we‘ve researched the story of the brand; it‘s original and potential target market, it‘s financial

EEOC vs Abercrombie and Fitch, a case where a practicing Muslim Samantha Elauf, sued the clothing store from discrimination. Although she passed her interview with the store, she was not hired due to head wear that she was wearing. Elauf wears as a part of her observation of her religious practice. Abercrombie policy prohibits head wear and the maintain more of a West Coast California image. Elauf’s claim was disparate treatment from Abercrombie. She was granted $20,000 in the District Court but the 10th Circuit Court reversed that decision. The Supreme Court the appealed and ruled in an 8-1 favor of EEOC. The majority stated that Abercrombie violated Title VII of the Civil Rights Act, whether they had knowledge or not of her religion, they were still held liable. They concluded that an applicant need not to prove the reason for accommodation based on religious reasons. Justice believed that Abercrombie was aware of Elauf’s religion and illustrated discrimination by failure to accommodate her.

Brand image- Abercrombie & Fitch brand image is not as strong as their top three competitors. I believe that the company decision not to adjust their prices along with their marketing complain provided their competitors with an opportunity to capitalizes in promoting their brands throughout the retail industry. Barbara Farfan (2016) stated that the company’s decision not to adjust their prices during the recession”, hindered Abercrombie and Fitch Brand image while, other retail business such as American Eagle, took the opportunity to employ successful discount strategies that attracted customer to their business.

Abercrombie & Fitch (A&F) was founded in 1982 by David Abercrombie and Ezra Fitch in New York City (1). Mike Jeffries was the CEO for 22 years, until he resigned in 2014 following eleven consecutive quarters of sales declining; thus, A&F is being overseen by Arthur Martinez, Jonathon Ramsden, and Fran Horowitz (2). Abercrombie & Fitch currently has 62,150 employees (1). A&F is a retail store T-shirts, shorts, denim jeans, shoes and accessories. Their style was more of a basic and casual look. They have a store called Abercrombie kids, which sells exclusively to boys and girls. They also have another store called Abercrombie & Fitch, which sells to women and men. They market towards young children to young adults, but are now targeting more towards the 18-22 age group (1).

Pricing as a strategy (shown below in perceptual map) is used by retailers to differentiate. Some are positioning their price low (Dollar stores) and some at premium like Reed, someuse discounted pricing or everyday low prices (TopVal).

Abercrombie and Fitch is an American retailer that focuses on casual wear for consumers aged 18 to 22. It has over 300 locations in the United States, and is expanding internationally. The company also operates three offshoot brands: Abercrombie, Hollister Co., and Gilly Hicks. The company operated a post-collegiate brand, Ruehl No.925, that closed in early 2010.

Despite Abercrombie & Fitch’s efforts to win back loyal consumers with their new rebranding initiative, the company continues to experience a decline in annual revenue and dismal growth coupled with a poor return on investment, making it a risky investment option for potential shareholders. According to the company’s annual report, Abercrombie & Fitch saw a decline in revenue from $4,116.90 billion in February 2014 to $3,744.03 billion in 2015 with fourth-quarter revenues falling nearly 14% to $1.12 billion (Abercrombie & Fitch 41). The company contributed its dismal report to a decrease in the number of operational stores at the end of Q4 fiscal 2014, weak consumer demand for both Hollister and Abercrombie & Fitch, slowing growth in

While the company may be seeing the start to its decline, past years are proof that Abercrombie and Fitch have made a good name for themselves. How does the industry operate one might ask? There are many sides to the coin when it comes to determining how this company functions, but let’s start with its

Abercrombie & Fitch’s corporate leaders have designed policies to mandate personal appearance, manifesting into a

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).