Abercrombie and Fitch Marketing strategy: American origins brand Abercrombie and Fitch is known for its young and dashing image. Retail outlets of Abercrombie and Fitch present all across the US also the world in major countries. The world often call Abercrombie and Fitch a life-style brand due to the way it markets itself through lifestyle segmentation.
Here is that the Marketing strategy of Abercrombie and Fitch
Segmentation targeting and positioning within the Marketing strategy of Abercrombie and Fitch
The brand mainly targets the youth segment. However, due to its portrayal of youth, it’s loved by men and ladies of all ages. The target segment of the corporate is that the upscale crowd and to focus on the upscale and lifestyle crowd, Abercrombie and Fitch has invested tons in its Stores also as brand representatives and advertising to make sure that the life-style crowd loves the brand.
Although A&F had a transparent target of positioning itself in top of the mind, it’s not been ready to achieve an equivalent . A decade back, A&F marketing was strong and hence it had Top Of Mind awareness. But today, the brand has lost its “cool” and “hip” appeal and is doing well overall but not with an equivalent pace it had been growing a decade back. In fact, In 2014, the brand posted a severe loss. it’s also lost its premium positioning because the youth don’t feel connected with the brand.
Marketing strategy of Abercrombie and Fitch – 1
Marketing mix – Click here to read the Marketing mixture of Abercrombie and Fitch.
SWOT analysis – Click here to read the SWOT analysis of Abercrombie and Fitch
Mission within the Marketing strategy of Abercrombie and Fitch – “Abercrombie and Fitch focuses upon high-quality merchandise that compliments the casual classic American lifestyle.”
Competitive advantage – Competitive advantage of Abercrombie and Fitch lies within the incontrovertible fact that the brand features a strong retail presence within the US also as across the world . it’s known for its youth targeted clothing, design and quality of its clothing.
With the three brands – A&F, A&F kids and Holister, Abercrombie and Fitch targets young kids, children between 13-18 and therefore the youth also . So overall, the entire life cycle of a toddler up to his young days is roofed by the three brands of Abercrombie and Fitch. The brand also covers various parts of lifestyle segment with its apparels, clothing and other products within the portfolio.
BCG matrix within the Marketing strategy of Abercrombie and Fitch – The brand when plotted within the BCG matrix of the retail industry, is a Star. the rationale is that the market share of Abercrombie and Fitch is dropping since the previous couple of years, but it still features a high market share and good market presence. to take care of this market share, it’s to advertise and promote tons .
Moreover, once we compare the competition for A&F, we discover that Tommy Hilfiger may be a close brand which is removing the market share and expanding rapidly. Hence, the competitive profile is such the expenses for A&F marketing will only rise and won’t fall.
Distribution within the Marketing strategy of Abercrombie and Fitch – A&F has solid distribution across US and has 400 stores in US alone. Across the world , it’s stores in UK, and therefore the European Union. In fact, A&F gets the majority of its revenue from outside of us thanks to numerous problems and issues within us.
Business experts always say that the matter with the distribution strategy of A&F has been that its distribution wasn’t strategically. it’s losing market share in its house-ground which is that the US thanks to branding reasons. But outside US, it doesn’t have a high share in Middle East or Asian countries which has affected the general revenue of the brand.
Brand equity – The brand equity of Abercrombie and Fitch has been dropping over the years albeit its branding activities are spot on. The brand is over hauling the entire product portfolio and has eyes on expansion to extend its overall presence and brand value within the market.
In 2012, the brand was 474th highest brand within the world as per Forbes. But since then, the brand has lost further brand equity and isn’t within the top 500 as of 2016.
Competitive analysis within the Marketing strategy of Abercrombie and Fitch – Major competition of Abercrombie and Fitch comes from Tommy Hilfiger, Aeropostale and bald eagle outfitters.
– the standard customer of the brand Abercrombie and Fitch is seen as a young, athletic one that likes to decorate stylishly and within the latest of fashions. the style must fresh and lightweight and not formal and hulking . The customer should love casual fashion that their tees and jeans are renowned.
Similarly, once we come to A&F kids, the youngsters clothing is usually purchased by parents – who should be off and will be able to spend a touch bit more to decorate their kids within the latest in fashion.
Promotions within the Marketing strategy of Abercrombie and Fitch – A&F has used 3 sorts of promotions most effectively over the years.
1) the primary one is to use actual models in their stores as brand representatives who show the garments to the purchasers . Naturally, this creates a “want” quite situation within the minds of the purchasers , because the customers want such a body because the models. This, therefore elevates the brand value within the minds of the purchasers .
2) Most of the advertisements travel by Abercrombie and Fitch include models from within their stores, therefore making a connect between the brand representative of the shop and therefore the local crowd which involves purchase. These advertisements have a transparent undertone of sexuality, with most of them being shot outdoors with semi nude males and females.
3) within the initial years when retailing was at its peak (And before E-commerce took off), A&F wont to have stores which were more exclusive and other people had to enter to seem at the garments and style . Over the years, A&F has changed its store design and made it more open in order that potential customers could also do shopping . This exposes A&F’s excellent design to several customers.
Overall, Abercrombie and Fitch features a strong brand presence but it’s sort of a brand which must overhaul itself and that’s exactly what A&F has wiped out 2015. In 2015, A&F also started franchising with select companies to expand in countries like Mexico et al. . we will expect an identical marketing strategy from A&F and would like to see it rise to the highest again with a top of the mind positioning as a youth brand.