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    Abercrombie & Fitch Co.: Case Analysis

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    Jaswanth Gogineni
    This document provides an overview and analysis of Abercrombie & Fitch Co. It outlines the company's history and brands, including Abercrombie, Hollister, and Gilly Hicks. It discusses the specialty retail industry and identifies key competitors like American Eagle and Gap. A SWOT analysis notes strengths in branding but weaknesses in limited geographic reach. The unique sales strategy emphasizes brand image, sexuality in advertising, and an immersive in-store experience through lighting, music, and scent. Both long-term and short-term recommendations are provided to expand overseas and strengthen the rebellion image.

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    Abercrombie & Fitch Co.: Case Analysis

    Uploaded by

    Jaswanth Gogineni
    362 views23 pages
    This document provides an overview and analysis of Abercrombie & Fitch Co. It outlines the company's history and brands, including Abercrombie, Hollister, and Gilly Hicks. It discusses the specialty retail industry and identifies key competitors like American Eagle and Gap. A SWOT analysis notes strengths in branding but weaknesses in limited geographic reach. The unique sales strategy emphasizes brand image, sexuality in advertising, and an immersive in-store experience through lighting, music, and scent. Both long-term and short-term recommendations are provided to expand overseas and strengthen the rebellion image.

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    A & F

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    © Attribution Non-Commercial (BY-NC)

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    This document provides an overview and analysis of Abercrombie & Fitch Co. It outlines the company's history and brands, including Abercrombie, Hollister, and Gilly Hicks. It discusses the specialty retail industry and identifies key competitors like American Eagle and Gap. A SWOT analysis notes strengths in branding but weaknesses in limited geographic reach. The unique sales strategy emphasizes brand image, sexuality in advertising, and an immersive in-store experience through lighting, music, and scent. Both long-term and short-term recommendations are provided to expand overseas and strengthen the rebellion image.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    362 views23 pages

    Abercrombie & Fitch Co.: Case Analysis

    Uploaded by

    Jaswanth Gogineni
    This document provides an overview and analysis of Abercrombie & Fitch Co. It outlines the company's history and brands, including Abercrombie, Hollister, and Gilly Hicks. It discusses the specialty retail industry and identifies key competitors like American Eagle and Gap. A SWOT analysis notes strengths in branding but weaknesses in limited geographic reach. The unique sales strategy emphasizes brand image, sexuality in advertising, and an immersive in-store experience through lighting, music, and scent. Both long-term and short-term recommendations are provided to expand overseas and strengthen the rebellion image.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23

    Abercrombie & Fitch Co.

    Case analysis
    Prepared by: Jaswanth Gogineni

    Agenda

    Company Overview Business Description History Industry and competitors SWOT analysis Unique Sales strategy Recommendations and Conclusion

    Company Overview

    Specialty retailer that sales casual apparel Operates under 5 brands: Abercrombie & Fitch, AbercrombieKids, Hollister and RUEHL and Gilly Hicks: Sydney brands. The company operates in the US, Canada, UK. Operates 1039 stores worldwide (February 2008) 80,100 employees

    What

    Abercrombie and Fitch brands are you familiar with?

    Abercrombie

    Established July 1998 7-14-year-old age group 170 stores in US Classic cool theme Logo Moose

    Hollister Co.

    Established July 2000 14-18-year-old schoolers 455 stores in US and Canada Theme SoCal Logo Seagull

    Abercrombie & Fitch

    Established June 1892 Targets 18-22 year-old age group 357 stores Theme Casual Luxury Logo Moose

    The RUEHL

    Established September 2004 Targets 22-35 year adults Operates 22 stores Logo French Bulldog

    Gilly Hicks: Sydney

    Established January 2008 Operates 5 stores Targets 18 and up Logo Koala Theme Australia

    History

    David T. Abercrombie established Abercrombie Co. on June 1892 In 1904 wealthy Ezra Fitch became a co-owner In 1909 issued and mailed 50,000 copies of 456page catalog In 1917 A&F became the largest retailer in NYC that sold sportswear In 2006 A&F opened its first store in Canada, In 2007 first store in UK

    Industry and Competitors


    Retail Industry (Special Lines) 40,000 companies operate 90,000 stores Summarized annual revenue $130 billion Dominance of large companies Slowdown in spending on clothing Labor-intensive industry, high demand for qualified and skilled sales reps Two main sales seasons- fall (main for A&F) and spring

    What

    are Abercrombie and Fitch main competitors?

    Industry and Competitors


    Gap, Inc., The Target Corporation Gap, Inc., The Limited Brands American Eagle Outfitters, Inc. Benetton Group SpA

    Tommy Hilfiger Corporation Urban Outfitters, Inc. Wet Seal, Inc, The Aeropostale, Inc.

    Competition
    Abercrombie & Fitch Established
    Revenue (billion USD) Number of stores

    American Eagle The Gap 1904


    2.8 697

    1892
    6.91 1039

    1969
    16 3139

    Employees
    Scope of operation

    80,100
    US, Canada, UK

    20,600
    US

    150,000
    More than 19 countries

    SWOT Analysis

    Strengths
    Strong brand portfolio Strong financial performance Robust balance sheet

    Weaknesses
    Low inventory turnover ratio Limited geographic reach

    SWOT Analysis

    Opportunities
    Expansion in new markets Investment in infrastructure Development of new concepts Increasing online sales

    Threats
    Counterfeit goods Increasing rental rates in US Slowdown in the US economy

    Unique Sales Strategy: IMC

    High integration of Marketing efforts Recruits high energy brand reps largely from college campuses who dress in A&F Issues subscription catalog A&F Quarterly (350,000 Americans has subscribed) Issues magalogs

    Unique Sales Strategy

    Emphasis on high level of service, quality, brand image


    Targets Generation Y Positioning strategy involves the use of overt sexuality advertising appeal
    http://www.youtube.com/watch?v=9dqEcKcadUE&NR=1

    Unique Sales Strategy: Publicity

    Positive
    18-22-year-olds Controversy surrounding its ad campaign has added allure and exclusivity 34 consecutive quarters of record sales and earnings

    Negative
    Parents Organizations Legislators Playboy for kids

    Unique Sales Strategy: Store Layout


    comfortable armchairs designed Large photos on the walls extremely loud, energizing trance and dance songs dimmed light unique A&Fs scent in the store

    Unique Sales Strategy: Web site


    Allows to download music, e-post cards Provide useful information, FAQ Shop online Watch Abercrombie TV Create ANFMail accounts

    Recommendations and Conclusion

    Long-term recommendations
    Open a discount clothing store Invest in overseas expansion (Europe, Japan)

    Short-term recommendations
    Sponsor college events Strengthen rebellion and controversy image Emphasize on online shopping Review the choice of magazines where A&F places ads

    Thank You For Attention

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