Team Branding Project

BUS342Z2 Branding, Professor Kris Chapell

By Jacquelyn LeCompte and Cecille Youmans

Abercrombie & FitchCompany Overview

Established in New York City, 1892 Founded by David T. Abercrombie and later partnered with Ezra H. Fitch Originally a sporting goods store which evolved into a clothing retailer Brand concepts – well made, casual elegance, cool beach wear, upscale Brands - Abercrombie & Fitch, abercrombie, Hollister and Gilly Hicks Operates 843 stores in the U.S., 163 international stores, web sites and

direct-to-consumer concerns 80,000 Employees Headquarters are located in New Albany, OH Chief Executive Officer & Director - Michael S. Jeffries (1992-)

TIMELINE Abercrombie & Fitch1892-1992

1992

1892

1977

1940

1904

1988

The largest sporting goods store in the country

David. T. Abercrombie opened Abercrombie & Co.

The Limited purchased the struggling store and the brand is repositioned to casual clothing.

Ezra Fitch, became a partner

After a tumultuous decade, the chain is bought by Oshman's Sporting Goods.

Michael Jeffries was hired as CEO

TIMELINE Abercrombie & Fitch1996-2006

2006

1996

2003

2002

2000

2005

A&F settles a class action suit for $50 million because of racist hiring practices.

Jeffries is interviewed by Salon Magazine in which he expressed some very controversial thoughts on A&F’s target audience.

The company upsets the Asian community with racist T-shirts

Hollister, a sub-brand, was launched

The National Coalition for the Protection of Children & Families, a Christian group, launched a protest of A&F's

"Christmas Field Guide."

An IPO was offered and the company became independent from the Limited

TIMELINE Abercrombie & Fitch2007-2014

2014

2007

2010

2009

2008

2011

The economy begins to improve and profits rise 12%

Despite controversy A&F earned $3.75 billion in revenue

Amidst more controversy and lawsuits, shares fall 22%

Lack of innovation, refusal to adjust prices and the recession are blamed for 80% drop in A&F stock

A&F 2nd Quarter profits declined 134%, competitor Aéropostale was up 83%

Profits continue to decline, shareholders question CEO Jeffries strategy and vote against any raise in his salary.

Brand was established in June, 1892 Original “parent” brand which was geared toward outdoor lifestyle Slightly older demographic 18-22 year olds Clothing line perceived as having a luxurious, upscale feel Brand was acquired in 1988 and repositioned as more fashion forward

casual clothing 250 Locations

Brand AnalysisAbercrombie & Fitch

Brand introduced in 1998 Target population 7-14 years old Trademarked term “classic cool” is used to describe store and online

products 154 Locations Brand has accessories line which includes fragrances and colognes, etc. Company may have plans to expand access to brand in overseas countries Controversial “humor” tee shirt line that has drawn criticism and

controversy. Saying that appear on clothing are deemed degrading and negative.

Brand Analysisabercrombie

Brand launched in July, 2000 Target audience 14-18 years old Clothing style features “SoCal” feel Product is offered at lower price point than traditional “parent” brand

Abercrombie & Fitch Generated revenue in 2010 of 1.5 Billion 578 Locations Is sold internationally Sells accessory line of colognes, perfumes, costume jewelry, flop fops, etc. Website intra-linked to other Abercrombie brands, like Gilly Hicks, etc.

Brand AnalysisHollister Co.

Brand launched January, 2008 Clothing focus on intimate apparel for primarily women 28 Locations Customers can continue to buy Gilly Hicks through Hollister stores Brand theme is based upon the Sydney, Australia lifestyle Gilly Hicks stand alone stores will be closed down by end of first quarter,

2014 Customers can continue to buy through direct to customer channels

(online)

Brand AnalysisGilly Hicks

• Company has had a successful financial historyWell known, industry leader• Brands marketed toward consumers who have

access to discretionary income via parents, significant others, etc.

• Consumer base usually graduates “up” to next level of clothing

• Quality clothing

Strengths

Opportunities

• Needs to explore and strategize regarding previously ignored markets, e.g., plus sizes

• Market the company itself internally and externally; not just the clothing.

• Utilize current talent pool to create campaigns which “give back” to surrounding communities

• Redesign stores to feel more friendly to non-typical prospective consumers

Threats

• Continuing to be insincere about embracing diversity

• Allowing their social media presence to be a rest stop instead of a destination; see Facebook, Twitter

• Increasing retail theft and counterfeit clothing• Not focusing on increasing business revenues

through online sales

Weaknesses

• Loose lipped, careless CEO• Brand has lost credibility on Wall Street and

Main Street• Overly titillating print & electronic ads• Company doesn’t understand its consumer base • Board of Directors losing confidence in CEO –

Mike Jeffries• Shareholders (Equity Capital) looking to remove

CEO

W

TO

Primary factorsSWOT ANALYSIS

Age 14 -29

In school or just entering the work force

Buys their own clothes, seeks their own style

Youth from all nationalities

All sizes

Looking for casual classic & trendy style

Looking for premium quality and style

Abercrombie & FitchNEW Target Market

Age 14 -20

In school or just entering the work force

Buys their own clothes, seeks their own style

Good looking and in good physical shape

Trendy and cool

Casual style

Looking for quality and style

Abercrombie & FitchCurrent Target Market

Abercrombie & Fitch Brand Awareness Evaluation

• s

Strengths of Current Brand ImageWell known, highly recognizable,established brand, popularized by many celebrities and college students world wide

Weaknesses of Current Brand Image Brand has been tarnished in mainstream and social media.Many consumers no longer accept A&F’s exclusionary marketing

Current Public Perception of CompanyOverpriced, exclusionary, no longer relevant, cool, etc. A bully corporation telling impressionable youths who is pretty and who is not

Who is Abercrombie & Fitch’s main competition? Aeropostle, Gap, American Eagle, J Crew, Wet Seal, Inc. Tommy Hilfiger, Benetton

Reposition or Revitalize ?The A& F brand is well established in its niche, revitalization of the brand image can reestablish its market position.

Competitive Position Relative to A & FThe competition runs regular promotions and sales, offers clothing in all sizes, markets to all ethnicities and promotes making a difference in the world.

Abercrombie & FitchBrand Anatomy

Brand Promise Brand Personality Brand Value

Mission Statement

Brand Image

”Abercrombie and Fitch focuses upon high-quality merchandise

that compliments the casual classic American lifestyle.”

A&F can maintain it’s current market position and personality while revitalizing by adding diversity.

Growth and Stability Beautiful, Youthful, Casual, Luxurious & DIVERSE

Casual Luxury

Abercrombie & FitchCurrent Positioning

Positioning of product or service◦ Premium brand, exclusionary lifestyle brand, for

the “cool kids” Consumer promise

◦ high-quality merchandise that compliments the casual classic American lifestyle

Abercrombie & FitchProposed Positioning

Positioning of product or service◦ Premium brand, with a positive image, unique,

but not exclusionary, with premium prices, and added value promotions.

Consumer promise◦ A&F will continue to offer high-quality

merchandise that compliments the casual classic American lifestyle

Conclusion

Abercrombie and Fitch must evolve their image in order to revitalize the brand. Todays consumers are trendy and fashionable but it is also trendy today to stand up against injustice and bullies. A&E should set a positive example in the world, they should not be seen as part of the problem.

Abercrombie and Fitch can market to beautiful People As long as they make clear that all

people can be beautiful.

http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Abercrombie---Fitch-Mission-Statement.htm

http://teresaramosg.wordpress.com/2012/12/13/abercrombie-and-fitchs-strategy/

http://nymag.com/thecut/2014/02/why-abercrombie-is-losing-its-shirt.html

http://www.businessinsider.com/the-abercrombie-and-fitch-disaster-timeline-how-abercrombie-and-fitch-ceo-mike-jeffries-screwed-up-americas-sexiest-brand-2012-6?tru=Jevgc#jeffries-figured-out-sex-sells-2

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Works Cited