Assignment Plan Anf
Business Report: Origin of the Assignment: The designated task for this assignment is a study of Abercrombie and Fitch’s profile and unique marketing strategy for the business English course at South Thames College. My area of particular interest is marketing and for this reason I have chosen Abercrombie and Fitch as my company of study. Having researched this area I will seek to find out how does their marketing strategy works and makes them one of the biggest clothing company in the world. Objective: The objective of this report is to study Abercrombie and Fitch’s unique marketing strategy and its results.
Aims of the Report: 1. Abercrombie and Fitch’s profile 2.
Abercrombie and Fitch’s marketing strategy. 3. Results and Market Share. Scope of the Assignment: This report covers a review about Abercrombie and Fitch’s image, their unique marketing strategy and its negative side and their action to overcome from the critics and lawsuits. It will be prepared based upon the information collected from the company’s website, internet resources and business and economics’ magazines. Methodology: The study approach involves collecting secondary data.
In order to collect the required data, I aim to use the following approaches: i) Journals ? The Guardian ? Daily Mail ii) Websites ? www. abercrombieandfitch. com ? www. businessinsider. com ? www. businessweek.
com Limitations: The limitations of this assignment include only secondary data. Therefore I will limit this assignment to secondary sources acquired throughout the period of preparation of this report. Short Synopsis of Report: Abercrombie ; Fitch, also known as A;F, is an American retailer that focuses on casual wear for consumers aged 18 to 25.
It has over 1,045 stores located in the United States and internationally. The company also operates three offshoot brands: Abercrombie kids, Hollister Co. , and Gilly Hicks.
A;F is known for its racy marketing, always photography by Bruce Weber. It is rendered to grayscale and features outdoor settings, usually with semi-nude males and females for an increased tone of sexuality. A;F casts only store employees for marketing campaigns. The Abercrombie ; Fitch brand image is heavily promoted as an international near-luxury lifestyle concept.
The company began cultivating an upscale image after the 2005 opening of its Fifth Avenue flagship store alongside Prada and other upscale retailers. Having for years used high-grade materials in the construction of its merchandise and priced them at “near-luxury” levels, the trademark Casual Luxury was introduced as a fictional dictionary term with multiple definitions such as “[using] the finest cashmere, pima cottons, and highest quality leather to create the ultimate in casual, body conscious clothing,” and “implementing and/or incorporating time honored machinery .
.. o produce the most exclusive denim…
” This upscale image has allowed A;F to open stores in international high-end locations and further promote the image by pricing its merchandise at almost double the American prices. Overall, CEO Jeffries calls the A;F image a “movie” because of the “fantasy” that plays out instore. Even some of the clothing is given “story”: “You buy into the emotional experience of a movie,” Jeffries explains, “And that’s what we’re creating. Here I am walking into a movie, and I say, ‘What’s going to be [at] the box office today? ” Although generally more expensive, Abercrombie ; Fitch main competitors are Aeropostale and American Eagle Outfitters. Its younger subsidiary, Abercrombie kids, competes with Aeropostale’s P.
S. from Aeropostale, and American Eagle Outfitters’s 77kids. Its prices are recognized as the highest in the youth-clothing industry. Internationally, prices are almost double those in its American stores. Retail analyst Chris Boring warns that the company’s brands are a “little more susceptible” should recession hit, because their specialties are premium-priced goods rather than necessities.
Indeed, as the late-2000s recession continues, A;F has noticeably suffered financially for its refusal to lower prices or offer discounts. A;F argues that doing so would “cheapen” its near-luxury image. Analyst Bruce Watson warns that A;F risks finding itself transformed into “a cautionary tale of a store that was left by the wayside when it declined to change with the times”. A;F’s year-to-year revenue, a key indicator of a retailer’s health, rose 13% in September 2010, aided by strong international sales.
Since its re-establishment in 1988, Abercrombie ; Fitch has faced numerous accusations regarding its employment practices, merchandise, and advertising campaigns which have been described as sexually explicit and racist. It agreed to pay $40 million by the Equal Employment Opportunity Commission (“EEOC”) to all African American, Asian, and Latino applicants who were discriminated against by the company.
The applicants argued that the company expected them to work only in low-visibility jobs in the back of the store. The EEOC required A;F to provide equal opportunity to everyone regardless of race, ethnicity, or gender.