2.4 Current target market
A&F has a crystal-clear marketing scheme targeting its main demographic customer group presently. The teen customers, ages arrange from 14 to 22, have contributed to the overall amount of sales with the most prominent proportion. Meanwhile, they have trendy taste on clothing, and also want to be a “cool-looking” member amongst their peers when the cluster is also targeted based on the relatively high purchasing power. But so far, its branches in the U.S. are most distributed in the East- and West-side states.
3.0 Marketing Strategy
At the current stage, Abercrombie & Fitch is preoccupied with the American domestic market. And it is confronting with fierce competitions from compatible counterparts with similarities and respective competitive edges, i.e. Gap, Aeropostable, and American Eagle Outfitters etc. Internally, for instance, the mean of promotion has been relatively simplified, however, the cost of manufacturing is increasingly high. (Wikinvest.com, 2015) The issues posed to A&F must be managed to solve, meanwhile, keeping its market share with its initial competence and expand to new customer clusters.
3.1 Mission
"We are committed to providing comfortable and long lasting clothes that look good". (Myfashionhub, 2013)
The motto of the brand, “casual luxury”, it is more targeting on fashion-conscious youngsters who are approximately between 14 to 22 years old with high purchasing power from higher family incomes. Regarding to the psychological characteristics of this particular group of buyers, they naturally have the preference to be unique and “cool”, compare to their peers. (chloehalley.com, 2014) So, to satisfy this need from the targeted market, A&F has been tirelessly offering the market “cool” clothing and
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Norms for consistency was another determinant of why Abercrombie decided to commit to reinvesting in its brand. Leaders are expected to take action when they encounter difficult situations. This expectation derives both from the public and from the employees as well. Thus, it was necessary for Abercrombie’s executives to act. Abercrombie believed that if they stay consistent with their efforts, the results were going to be positive. However, rebranding has proven to failed for several years
... fashion industry. I believe through all of their marketing tactics and great leadership they will continue to thrive. Although I am not a customer of the brand, I have found great interest in completing this product to explore and expand and broaden my fashion in the brand. The company has had consistent sales increase and if it continues to utilize its business plans wisely, I believe it will continue to increase.
A&F superiority in its heritage, user-friendly online website, and in-store experience such as fragrance of the store, the neat and premium store arrangements, as well as music have put A&F as one of the leading brand when retails come to mind. However, as strong as it may sound, A&F is struggling with declining revenue due to its apparent weaknesses. A&F’s simple product designs is failing to amuse the trendy world of young generation, and its lack of customer care programs to keep existing customers gives consumers no reason to come back. Therefore, I have suggested above several recommendations for A&F to improve its brand equity. In order to keep existing customers to purchase more of its products, A&F should produce loyalty programs that give consumers numerous reason to return with greater advantages. Enhancing customer service programs will also make customers feel appreciated and a sense of attachment to the brand. In addition, A&F should produce more advertisements through social media that are highly appealing to its target market. Finally, A&F should adapt to the ever-changing target customers’ opinions and fashion trends through more sophisticated product
In “The man behind Abercrombie and Fitch.” An interview conducted by Benoit Denizet-Lewis displays a glimpse into the life of Mike Jeffries and his views of his company only hiring “good-looking” people and targeting “good-looking” people to wear his clothes. This has been done in order to force his audience to recognize that the issue of acceptance one’s peers and exclusion of a community mentioned by Mike Jeffries, is a result of cultural perceptions and individual self-image. Denizet-Lewis skillfully shows that while Jeffries remarks of not wanting the “not-so-popular” kids to shop in his stores, it poses a question to consumers asking what change in our attitudes will come or if there will be any change at all. Thus comes the issue of how consumers today have a shift in the reasoning behind why one buys clothing and the motivating factors that influence one to buy certain clothing. Denizet-Lewis also demonstrates the different messages that controversial advertisements and statements affect different groups of people and how what they project is really what people desire, though deemed by many people as unacceptable or inappropriate. The author also examines how in the news media, the image has become more important than the message and how images have taken precedent over actual issues and character. As a result of this, various communities have formed by the construct of selling to “beautiful people” and how popular appeal has become an extension of a person.
The company 's stores under the Bloomingdale 's brand offer high-end customers an assortment of established brands such as Armani, Burberry, Christian Dior..." (Bailey, 2015). "Macy 's target consumers include Millennials (and) the company has launched several collections aimed at Millenials" (Bailey, 2015). Macy 's plans to shape its products according to customer 's ethnicity and race. The company plans to enter the Hispanic fashion market, as "Hispanics account for about 17% of the US population" (Bailey, 2015). Macy 's launched a strategy known as the My Macy 's strategy. Through the My Macy 's strategy the company styles products at each of its current stores to the needs of its customers. The My Macy’s localization strategy is a focus strategy used by Macy’s, Inc. Through this strategy the company targets specific consumers by tailoring its products and inventory to the customer’s needs. "It is a localization tactic which accelerates the sales of its stores" (Schoneberger, 2012). Analysts at Boston Consulting Group have advised that Millennials, individuals between the ages of 16 and 34, will account for $1.3 trillion in annual
...protecting it from weather. Youths may represent themselves with choices of fashion, maintain the acceptance from peers by dressing along with the fashion, differentiate themselves with stylish or luxury goods, and express themselves with preferences of clothing. The choices of young people may be affected by the trend, society, and the media. However, choices may also be a source of anxiety. For instance, that a function of advertising is to assuage the self-doubt that accompanies choice. Consumption would be a much less pleasurable practice if it was both subject to ever-expanding free choice and the decisions made were fundamental components of a reflexive process of identity-formation. Consumption may be anxiety-provoking for some groups; there is a real element of risk involved in choosing inappropriately. But there are many mechanisms that serve to compensate.
In the Frontline documentary, “Merchants of Cool” the top marketing experts discuss the teen demographic and new ways to target this seemingly difficult demographic. They are finding that teenagers contain a small amount of brand loyalty, and will consistently change brands to go with the flow of “cool.” Teens are more suspicious and resenting towards the normal marketing concepts, such as commercials, billboards, and radio advertisements, and are slowly catching onto the concept of buzz marketing.
American Eagle Outfitters is a fairly new company but they are doing extremely well because they have a clear grasp of who their target market is. They posses a fresh new hip look with great quality clothing at a reasonable price for consumers (http://www.prism.gatech.edu/~gte201w/aeostrat.html). This is one of the main reasons why teenagers and young adults are so attracted to the company. American Eagle is aiming to appeal not only to the targeted 20 year old but also consumers between the ages of 16 and 34 years old. This will widen the gap between their major competitors because they are trying to appeal to more segments than just one. American Eagle seeks to be assessable, fashion orientated, and has a strong value proposition, which has allowed the company to thrive and take shares from competitors over the past five years. Not only is their clothing line very comfortable, bold and fresh, the store layout and atmosphere is also major key factors in American Eagle’s success over the recent years. AE also has a strong competitive advantage because of their short lead times and their ability to position themselves in high-visibility, high-profile locations in key markets. American Eagle’s cycle time is about five months from design to delivery, versus about nine months for The Gap and six months for Abercrombie. AEOS minimizes lead times by maintaining sourcing relationships with a few key manufacturers and producing much of the merchandise in North America, versus 9% for The Gap and a minimal amount for Abercrombie. AEOS has the ability to quick-source some of its simpler product categories in order to react quickly to sales trends. (http...
Polo Ralph Lauren’s key success factors derive from the company’s powerful identity. It is notorious for it preppy American style in the designer world, but it is also luxurious, elegant and thrives to always be a classic. It appeals to a wide range of consumers, even if a person doesn’t wear Polo they are at least familiar with what it is. The way the company markets itself is also a big part of its success. For a company that started out less than 50 years a...
The competitive rivalry is high as the industry is comprises of many clothing retailers. For instance, ASDA’s brands George and Matalan, which provide not only quality garments but also sell them in a low price. Primark may lose a significant number of customers due to the intense
Polo Ralph Lauren not only owned retail stores, but also under other retailers such as Nordstrom, Macy’s, Dillard’s, Belk, Saks Fifth Avenue, and various other retailers. The unique selling proposition of Ralph Lauren brands go about defining themselves as not like the others, is to develop a positioning that’s intended for a narrower target to make them unique. Most luxury brands fall into this fashion unique style categories. Ralph Lauren Company wants potential customers to know all the ways that they are better than others, and as a result their advertising focuses on product benefits. The result is to grab the attention of their customers. The emotional appeal of this brand is to increase your self esteem and leaves you feeling high class and
Sustainable fashion allows consumers to further control fashion brands, by purchasing more or fewer items. Purchasing items creates more jobs, which in return creates more money flowing through the economy. Fast fashion and mass-produced clothing do effect the environment and factory workers. That being said, how does fast fashion directly impact the consumer and their personal choices? The Journal of Consumer Behaviour article entitled The Values and Motivations Behind Sustainable Fashion Consumption provides research data collected through semi-structured interviews that answers that question. The research finds sustainable fashion consumers show an association between the cost of sustainable fashion with quality while being motivated to purchase it due to the products supporting a community. (Davies & Lunblad, 2015) Sustainable clothing is more expensive and is difficult for all consumers to purchase. The high cost of sustainable clothing is due to the use of organic crops, made to order items, and the cost of manufacturing clothes made by individuals working in a safe environment and making a fair wage. (Chong, 2017) While consumers may have a desire to help their community sustainable clothing is more expensive and is not readily available. Consumers are still very much interested in fashion that fulfills their personal wants and needs. “Without sustainable fashion suppliers providing core product and meaningful psychological benefits, it is doubtful that many of the consumers would continue to consume for purely altruistic reasons.” (Davies & Lunblad, 2015) Sustainable fashion limits a consumers ability to wear the most recent fashions or styles of their peers. “Given the importance of identity construction to many consumers, drivers to be ‘fashionable’ often outweigh drivers to be ethical or sustainable. This paradox highlights the clash of the desire to consume with
in this segment are often brand conscious and enjoy the latest fads and trends. They...
Following fashion styles in order to be trendy and to look different and stylish in front of others by wearing different types of clothes and accessories. Fashion can be viewed in people’s style of outlook personality with clothing and hairstyle, style of living and behaving, along with the area of personal interest. Today’s youths are totally influenced by new fashion trends. Fashion brings an interesting twist in our boring life which makes us with feeling of confidence and up to date according to this changing environment. Youth generation is totally affected by this glamorous world of fashion. Their dressing style, hair style, accessories, language and personality all shows that how much they are influenced by fashion.