Tutorial 7 - Abercrombie & Fitch

Strategic Marketing – SUMMER SCHOOL 2014 1© Imperial College Business School

Tutorial 7: Abercrombie & Fitch

© Imperial College Business School

Lessons Learnt

Strategic Marketing – SUMMER SCHOOL 2014 2


Marketing Communications



1. Why did this crisis occur? Why did Jeffries’ comments trigger such a large response?1. What is the expectation for the future?

2. Evaluate Abercrombie & Fitch’s response. What could the company have done better?

3. What changes, if any, should Abercrombie & Fitch make?

The story in short: VIDEO: Mike Jefferies, CEO

Case Study Questions


https://www.youtube.com/watch?v=pCv-bwCqqXE


What is A&F Brand’s Image



24/01/06: Sales.com interview… where it all begins?

2013• May 3 – Business Insider refers to interview• May 7 – Reddit links to BI article -> mocks CEO Jeffries• May 9 – Huffington Post letter, Change.org petition, ABC

news visits A&F store• May 13 - #FitchtheHomeless • May 14 – Celebrity disendorsement • May 15 – Jeffries Facebook apology • May 22 – A&F issues second apology• June 6 – BrandIndex Impression at all time low

The Event



Stock Market 5 years



Stock Market May-June 2013



• “Abercrombie & Fitch apologises after plus-size firestorm”– 29/05/2013

• Jeffries (2004 interview): “The important thing is that I didn’t overreact… When things start to go down, many retailers kill themselves; they throw out the baby with the bath water.”

• Nature of Response– Initial apology: questionable– Words were “interpreted in a manner that has caused offense”– Could have tried to arrange a special interview with talk show

host such as Oprah Winfrey– Could have responded directly to feedback

• Example: Blogger Jess the Militant Baker’s challenge

Responses & timeliness


https://www.youtube.com/watch?v=Xr3hUYq_jWs


Challenge not accepted



Financial Outlook



• Plus-sized clothing– $16 billion from sales (67% of purchasing population) – Is it strategically and financially wise to anger a growing

market?– Would a more inclusive rather than targeted customer

acquisition strategy be better?

• CEO Jeffries– Not present at crisis meeting (would his presence have

been detrimental?)– What about leadership in era of brand transparency?– Praised by industry insiders and branding pundits for his

focus on his target market and brand image– Myopic vision for brand?

Changes?


Tutorial 7 - Abercrombie & Fitch

Business

Transcript of Tutorial 7 - Abercrombie & Fitch