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Abercrombie and Fitch Brand Management


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Brand analysis and suggestions for Abercrombie and Fitch Brand.

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Abercrombie and Fitch Brand Management

  1. 1. BUS342Z2 Branding, Professor Kris Chapell By Jacquelyn LeCompte
  2. 2. Abercrombie & Fitch Company Overview  Established in New York City, 1892  Founded by David T. Abercrombie and later partnered with Ezra H. Fitch  Originally a sporting goods store which evolved into a clothing retailer  Brand concepts – well made, casual elegance, cool beach wear, upscale  Brands - Abercrombie & Fitch, abercrombie, Hollister and Gilly Hicks  Operates 843 stores in the U.S., 163 international stores, web sites and direct-to-consumer concerns  80,000 Employees  Headquarters are located in New Albany, OH  Chief Executive Officer & Director - Michael S. Jeffries (1992-)
  3. 3. TIMELINE Abercrombie & Fitch 1892-1992 The largest sporting goods store in the country David. T. Abercrombie opened Abercrombie & Co. The Limited purchased the struggling store the brand is repositioned to casual clothi Ezra Fitch, became a partner After a tumultuous decade, the chain is bought by Oshman's Sporting Goods. Michael Jeffries was hired
  4. 4. TIMELINE Abercrombie & Fitch 1996-2006 A&F settles a class action suit f $50 million because of racist hiring p y Salon Magazine in which he expressed some hts on A&F’s target audience. The company upsets the Asian community with racist T-shirts Hollister, a sub-b was launched tional Coalition for the Protection of Children & s, a Christian group, launched a protest of A&F's "Christmas Field Guide." An IPO was offered and the company became independent from the Limited
  5. 5. TIMELINE Abercrombie & Fitch 2007-2014 The economy begins to improve and profits rise 12% Despite controversy A&F earned $3.75 billion in revenue Amidst more controversy and lawsuits, shares fall 22% Lack of innovation, refusal to adjust prices and the recessio blamed for 80% drop in A&F st A&F 2nd Quarter profits declined 134%, competitor Aéropostale was up 83% Profits continue to decline, shareholders question CEO Jeffries strategy and vote against any raise in his salary.
  6. 6.  Brand was established in June, 1892  Original “parent” brand which was geared toward outdoor lifestyle  Slightly older demographic 18-22 year olds  Clothing line perceived as having a luxurious, upscale feel  Brand was acquired in 1988 and repositioned as more fashion forward casual clothing  250 Locations
  7. 7.  Brand introduced in 1998  Target population 7-14 years old  Trademarked term “classic cool” is used to describe store and online products  154 Locations  Brand has accessories line which includes fragrances and colognes, etc.  Company may have plans to expand access to brand in overseas countries  Controversial “humor” tee shirt line that has drawn criticism and controversy. Saying that appear on clothing are deemed degrading and negative.
  8. 8.  Brand launched in July, 2000  Target audience 14-18 years old  Clothing style features “SoCal” feel  Product is offered at lower price point than traditional “parent” brand Abercrombie & Fitch  Generated revenue in 2010 of 1.5 Billion  578 Locations  Is sold internationally  Sells accessory line of colognes, perfumes, costume jewelry, flop fops, etc.  Website intra-linked to other Abercrombie brands, like Gilly Hicks, etc.
  9. 9.  Brand launched January, 2008  Clothing focus on intimate apparel for primarily women  28 Locations  Customers can continue to buy Gilly Hicks through Hollister stores  Brand theme is based upon the Sydney, Australia lifestyle  Gilly Hicks stand alone stores will be closed down by end of first quarter, 2014  Customers can continue to buy through direct to customer channels (online)
  10. 10. • Company has had a successful financial history • Well known, industry leader • Brands marketed toward consumers who have access to discretionary income via parents, significant others, etc. • Consumer base usually graduates “up” to next level of clothing • Established reputation of providing quality clothing Strengths Opportunities • Needs to explore and strategize regarding previously ignored markets, e.g., plus sizes • Market the company itself internally and externally; not just the clothing. • Utilize current employees to create campaigns which “give back” to surrounding communities • Redesign stores to feel more friendly to non- typical prospective consumers Threats • Public’s perception of company being insincere about embracing diversity • Allowing their social media sites to be rest stops instead of destinations; see Facebook, Twitter. • Increasing retail theft and counterfeit clothing • Not focusing on increasing business revenues through online sales Weaknesses • Loose lipped, careless CEO • Brand has lost credibility on Wall Street and Main Street • Overly titillating print & electronic ads • Company doesn’t understand its consumer base • Board of Directors losing confidence in CEO – Mike Jeffries • Major shareholders (Equity Capital) looking to remove CEO W TO Primary factors SWOT ANALYSIS
  11. 11. Age 14 -29 In school or just entering the work force Buys their own clothes, seeks their own style Youths from all nationalities All sizes Looking for casual, classic and trendy style Looking for premium quality and style Abercrombie & Fitch NEW Target Demographic
  12. 12. Age 14 -20 In school or just entering the work force Buys their own clothes, seeks their own style Good looking and in good physical shape Trendy and cool Casual style Looking for quality and style Abercrombie & Fitch Current Target Demographics
  13. 13. Abercrombie & Fitch Brand Awareness Evaluation • s Strengths of Current Brand Image Well known, highly recognizable,established brand, popularized by many celebrities and college students world wide Weaknesses of Current Brand Image Brand has been tarnished in mainstream and social media. Many consumers no longer accept A&F’s exclusionary marketing Current Public Perception of Company Overpriced, exclusionary, no longer relevant, cool, etc. A bully corporation telling impressionable youths who is pretty and who is not Who is Abercrombie & Fitch’s main competition? Aeropostle, Gap, American Eagle, J Crew, Wet Seal, Inc. Tommy Hilfiger, Benetton Reposition or Revitalize ? The A& F brand is well established in its niche, revitalization of the brand image can reestablish its market position. Competitive Position Relative to A & F The competition runs regular promotions and sales, offers clothing in all sizes, markets to all ethnicities and promotes making a difference in the world.
  14. 14. Abercrombie & Fitch Brand Anatomy Brand Promise Brand Personality Brand Value Mission Statement Brand Image ”Abercrombie and Fitch focuses upon high-quality merchandise that compliments the casual classic American lifestyle.” A&F can maintain it’s current market position and personality while revitalizing by adding diversity. Growth and Stability Beautiful, Youthful, Casual, Luxurious & DIVERSE Casual Luxury
  15. 15.  Positioning of product or service ◦ Premium brand, exclusionary lifestyle brand, for the “cool kids”  Consumer promise ◦ high-quality merchandise that compliments the casual classic American lifestyle
  16. 16.  Positioning of product or service ◦ Premium brand, with a positive image, unique, but not exclusionary, with premium prices, and added value promotions.  Consumer promise ◦ A&F will continue to offer high-quality merchandise that compliments the casual classic American lifestyle
  17. 17. Abercrombie & Fitch can market to beautiful People As long as their entire brand portfolio is positioned and marketed with the message that all people have their own unique beauty.
  18. 18. Statement.htm screwed-up-americas-sexiest-brand-2012-6?tru=Jevgc#jeffries-figured-out-sex-sells-2 (2011, 06). Abercrombie and Fitch Swot Analysis. Retrieved 06, 2011, from http://www. Hsu, Tiffany. "Abercrombie CEO Tries to Stem Backlash." Rev. of Web. Abercrombie CEO Tries to Stem Backlash [Los Angeles] 17 May 2013: n. pag. Los Angeles Times. Los Angeles Times, 17 May 2013. Web. 12 May 2014. <>.