abercrombie & fitch

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Company History

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• Became CEO in 1992

• Created the look of A&F

Michael Jeffries

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Competition

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Product Image

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• 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 ?

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Diversity Marketing and theory

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Law Suit Issues:

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• Increasing and promoting diversity.

• Recruiting strategy.

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

• Supporting organizations that value academic excellence.

Diversity Commitment

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RecommendationsDiversity and Ethics

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Financial Operation

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Financial Operation

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RecommendationsFinancial Operation

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

Financial Summary

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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

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Operating Challenges

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Growth Opportunities

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Target Market and Global

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Brands and Target Markets

Abercrombie: ages 7-14

Hollister Company: high school students

Abercrombie & Fitch: college students

Brands and Target Markets

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35 million teens in the United States

Multiple revenue streams

No financial obligations

Brands and Target Markets

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RecommendationsTarget Market

Marketing

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• 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

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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

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RecommendationsMarketing

Thank You

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