1

Present the proper way science and technology, Gothic production

Company History

2

Present the proper way science and technology, Gothic production

• Became CEO in 1992

• Created the look of A&F

Michael Jeffries

3

Present the proper way science and technology, Gothic production

Competition

Present the proper way science and technology, Gothic production

Product Image

Present the proper way science and technology, Gothic production

• A&F purposely created controversy and engaged in risky practices to attract attention, draw in shoppers, and sell more products.

• A&F doesn’t really care about backing away from controversy.

• “Free Advertising Gig”

Controversy as Marketing Tool ?

6Present the proper way science and technology, Gothic production

Diversity Marketing and theory

Gothic

7Present the proper way science and technology, Gothic production

Law Suit Issues:

8Present the proper way science and technology, Gothic production

• Increasing and promoting diversity.

• Recruiting strategy.

• Managers-in-training are now more racially and ethnically diverse.

• Supporting organizations that value academic excellence.

Diversity Commitment

9Present the proper way science and technology, Gothic production

RecommendationsDiversity and Ethics

10Present the proper way science and technology, Gothic production

Financial Operation

Gothic

11Present the proper way science and technology, Gothic production

Financial Operation

12Present the proper way science and technology, Gothic production

13

RecommendationsFinancial Operation

(Stock price from Jan. 2007 to Apr. 2010)

Financial Summary

14Present the proper way science and technology, Gothic production

Selling Abilities  2009 2008 2007

Total Comparable Store Sales -23% -13% -1%

Abercrombie & Fitch -19% -8% 0%Abercrombie Kids -23% -19% 0%

Hollister -27% -17% -2%

• Same-store sales across all Abercrombie’s brands largely decreased

• Abercrombie has been reluctant to cut price

15

Operating Challenges

16

Growth Opportunities

17

Target Market and Global

Gothic

18

Brands and Target Markets

Abercrombie: ages 7-14

Hollister Company: high school students

Abercrombie & Fitch: college students

Brands and Target Markets

19

35 million teens in the United States

Multiple revenue streams

No financial obligations

Brands and Target Markets

21

RecommendationsTarget Market

Marketing

Gothic

22

• Store Experience: Sight, Smell, and Sound.

• Product reflects the “All American Look” target market is seeking.

• Low Advertising Costs: Word-of-Mouth Advertising

• Controversy creates awareness and free advertising.

• Clothing is “Aspirational” because of how its portrayed by the models/employees/etc.

Marketing Strengths/Opportunities

23

Marketing Weaknesses/Threats• “Aspirational Pricing” = Broken Business

Plan

• Competition: Offering similar if not identical products at a fraction of the cost. (American Eagle, Gap)

• Controversy can effect brand name / image

24

25

RecommendationsMarketing

Thank You

26

Gothic