2
Introduction– 4 Methodology - 4 Objectives –4 Brand History-5
Where is the brand now? Brand Overview - 8 Market Analysis– 10
Competitor Analysis– 12 Consumer Segmentation - 14 Macro Trends - 16 PESTLE - 17
Where does the brand want to be? SWOT - 20 Ansoff Matrix - 22
How will the brand get there? Current Marketing Strategy– 26 Proposed Marketing Strategy– 28 1 year communications plan —32 Timeline - 34 Conclusion– 36 References– 38 Bibliography– 40 Appendix– 42
3
Introduction Abercrombie and Fitch is an international, American, retail brand that offer high quality, apparel clothing and accessories. This report will explore and identify the key challenges and opportunities that face the well-known US fashion brand. It will be a journey of where the brand is now, where it wants to be and how it will get there. For years, teen shoppers flocked to Abercrombie and Fitch, lured by the cool reputation of the A&F name and trademark moose logo. But recently, the retailer has slowly started to disappear, resulting in a fall in sales and poor store traffic. So where have they gone wrong? Can they be saved?
Research objectives
Gain detailed understanding of who Abercrombie’s customers are
Gain further insight to their opinions about Abercrombie and its competitors
Explore and identify ways in which Abercrombie can improve their brand image
Methodology I have conducted both primary and secondary research and used the appropriate marketing models to create an exciting marketing and communications plan that will help further maximise Abercrombie’s success within the UK. Primary research was conducted consisting of 63 surveys completed online. By creating an online survey allowed consumers to express their opinion of the brand through open and closed questions. A focus group was held with 8 students aged 19-21 where opinions about the brand were discussed and suggestions were made. The use of various materials such as reports, articles, books and online resources has helped me analyse the current apparel market and consumer behaviours.
Overall Objective To get back consumers the brand has lost to cheaper, stylish high street brands.
4
Founded by David Abercrombie and Ezra Fitch in 1892, once a small waterfront hunting and fishing store has grown to become a huge international retailer. (Lepore, 2011) In 1910 it become the first company to sell clothing to both men and women and soon and was named “The Greatest Sporting Good Store In The World”. However by the early 1960’s net sales dropped and soon after in 1977, filed for bankruptcy. It soon reopened but moving away from sportswear and outdoor wear to more modern apparel clothing. In the early 90’s, Michael Jeffries was brought in to run the ‘new’ Abercrombie, and he saw the opportunity to target the teen retail market. He took the brand in a more casual, preppy direction. A decision that paid of massively, and the company expanded rapidly and became the sixth most popular teenage brand in the early 2000’s. (Lepore, 2011)
5
6
7
8
CEO Mike Jefferies states ‘The A&F label gives us the ability to evolve, creating endless growth opportunities.’
”Abercrombie
and Fitch focuses upon high-quality merchandise that compliments the casual classic American lifestyle.” (Farfan, 2014)
‘Abercrombie & Fitch is the essence of privilege and casual luxury’ Cool/ American/ High Quality/ Fun / Preppy / Young /Exciting/Casual
“The value of having a great brand is far-reaching and cannot be overstated—it’s a snowball effect. It helps us attract the brightest, most talented young people from around the country. It attracts millions to our website. It allows for greater profit margins. It lessens the risk of moving on new business concepts. It promotes innovation. It ensures long-term profitability. It adds built-in value to everything we produce. It accelerates growth. It stabilizes. It gives focus and direction. It produces an emotional response in consumers.” (Jefferies, 1998)
9
Abercrombie operates in the apparel market within the fashion industry on a global scale However, in order to give a more accurate and concise report, research will focus mainly on the UK apparel market, allowing me to have more accurate and specific findings for a new strategy within the UK. FIG.1
The UK fashion industry is on the rise since the recession hit in 2008. Today total UK household consumption on clothing and footwear alone is € 59 billion (Fig.1) , with positive sales growth recorded from 2010. Since then, consumers have continued to spend money on clothing in 2013 despite the income squeeze, with sales estimated to have risen 4.5% (Mintel,2013).
Looking into the youth fashion market allows research to be specifically focused on Abercrombie’s target market. It is estimates that sales of clothing and footwear by 15-24 year olds rose by only 2.1% in 2014 to £14.1 billion as young people continued to feel the impact of the financial pressures and cut back on luxury spending, such as clothing (Mintel,2014). Young people, who stand out as the most experimental clothes shoppers and buy from lots of different stores, want a combination of designs that stand out and the latest fashion trends. They are more inclined to use social media networks like Instagram and Pinterest than any other age group. Particularly when it comes to fashion. ¼ of 15-24 year olds use these social media platforms to engage with fashion brands and find inspiration. The increasing prominence of media networks is a key development for brands and retailers to spread the word. (Mintel, 2014) Mintel has forecasted that there will be a 15% rise in young fashion sales over the next five years as the economy improves. Looking into the future, it’s expected to see a continuing strong trend, as clothing remains a priority for consumers. 10
11
The apparel retail market is highly competitive, with just a few of Abercrombie competitors shown in Table 1. They have a wide range of competitors in terms of price, quality and design. The sale of clothing and accessories through stores and direct- to- consumer channels is a highly saturated market with numerous participants. As Abercrombie continues to expand internationally it will also face competition within these other markets. ‘Brand recognition, fashion, price, service, store location, selection and quality are the principal competitive factors in retail store and direct-to-consumer sales.’ (A&F Annual Report, 2013) Abercrombie face many competitive challenges including promotional activities run by competitors, making Abercrombie step up their promotional engagement with consumers. Furthermore, another challenge and probably the most important is anticipating and quickly responding to upcoming fashion trends. Today there are lots of brands on the high street who either, keep up to date with current trends and styles e.g. Topshop, or copy top brands, and sell cheaper alternatives such as Primark, H&M and Forever 21. From looking at the brand positioning map in App.1 Abercrombie have many competitors on both the low-medium fashion and high price axis. A lot of brands in the same area such as Topshop, Urban Outfitters and H&M are seen to be more commercially successful than Abercrombie due to the fact that they offer a variety of styles and trends that appeal to a wide consumer base. Whereas Abercrombie offer a more casual basic ‘preppy’ style, a style that shoppers are starting to move on from. Moving away from preppy logoed brands towards the fast fashion on the high street. However, Abercrombie recognise this and are willing to make a change. "Its customer is changing, and we're ready to change with her and him." (Mike Jefferies, CEO Adage) “The trick for fashion brands is how to keep the core edgy and hot,” Research from Mintel shows that consumers are more interested in shopping at cheaper stylish brands who are up to date with trends. ‘Abercrombie products have become dull’ (Forbes,2014). This could be the reason why A&F sales have been in decline for the last six quarters (Nasdaq,2014). ‘ A&F management will have to develop new styles with a new fashion twist or come up with something completely original in order to retain its customer base.’ (Forbes,2014). Abercrombie could consider introducing an exclusive clothing line, designed from the latest fashion trends at more affordable prices, still targeting their current target market of students, but with less disposable income. This unique range could make the brand more current and remain competitive within the market with high street brands such as Topshop and H&M, in terms of both price and style. Or they could think about going into a completely new direction, and go into another market. In such a competitive environment its crucial businesses have a USP in order to differentiate themselves from their close competitors. Abercrombie at the minute are struggling to stand out from the crowd and its vital they create something that will make them unique.
12
Table 1—Selection of Abercrombie's UK competitors Brand
Information British clothing brand, who deliver ‘preppy dressing’ to university students
Strengths Strong brand image – the blue and pink stripe.
American brand who sell men’s, women’s and children’s apparel clothing and accessories, fragrances and home furnishings.
British multinational fashion retailer of clothing, shoes, make-up and accessories.
A Swedish multinational retail clothing company, known for its fast clothing for men, women, teenagers and children.
An American brand offering casual and street wear clothing, footwear and house wear with a bohemian, hipster, retro style.
High quality clothing
Weaknesses Expensive
Highly saturated market
Don’t follow high street fashion trends
Their target market of university students don’t have much disposable income so are shopping at cheaper alternatives Fake replicas of clothing sold cheaper affect sales
A leading international brand in the apparel market
Recognisable logo
Created one of the most innovative marketing campaigns in Europe using 4D mapping.
Effect by exchange rates due to being a worldwide brand.
Leading brand on the high street
Strong reputation within the UK
Lots of competition who copy designs and offer similar products at cheaper prices – e.g. H&M and Primark
Celebrity endorsements
Sizes only 6-16 – not plus sizes
Offer different styles. Very trend driven.
Limited advertising
Excellent web presence
One of the largest global clothing retailers
Guest designers
Their young target customer base is highly affected by changing macro economic conditions
Offers quality and trendy clothing at affordable price
Their home wear line has not been very successful
Good brand reputation
Highly priced
Exciting, cool store layout
Large social media following
Targets quite a specific style so misses out on other demographics.
Wide variety of products 13
Segmentation is described as “a creative and iterative process, the purpose of which is to satisfy customer needs more closely and, in doing so, deliver sustainable competitive advantage for the company” (McDonald and Dunbar, 2004) Abercrombie’s, CEO Mike Jefferies made it very clear who their target market is. The ‘cool popular kids’ at schools and universities. ‘We go after the all- American kid with a great attitude and a lot of friends’. “That’s why we hire good-looking people in our stores. Because good-looking people attract other good -looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that,”. “Candidly, we go after the cool kids. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely." Jefferies said he believes that including everyone, and targeting a wide audience would make his business boring. "Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either," (Lutz, 2013) These statements caused huge amounts of uproar and discussion, and lead to a bad reputation. However the students who believed themselves to be ‘cool and popular’ continued to shop there as they liked the title that had been given to them.
Consumer Profile Age Gender
18-23 Males and Females
Occupation
Students
Interests
Sport, Socialising, Going out, Music
Income
Middle- Upper class
Watches
90210, Gossip Girl, Made in Chelsea, Friends
Listens to
Pop, R&B and House
Drives
VW golf
The consumer profile shown is an example of who Abercrombie believe their consumer to be. They are young outgoing university students aged 18-23 who enjoy socialising, going out with friends, an interest in sport and keeping fit and healthy.
14
15
Abercrombie is an international brand and therefore will constantly be affected by global trends. Abercrombie need to be able to adapt to these trends in order to develop and grow as brand. Failing to adapt to these every changing trends could create real problems and possibly lead to failure of the business.
A more connected world New inventions such as the smartphone and tablets have changed the way in which people shop and experience a brand. Through the use of this technology and social media, consumers are much more connected with brands and are constantly kept up to date with company news, helping maintain strong relationships with customers. The rise of the smart phone makes it convenient for consumers and even easier for brands to directly target consumer on the go. A social media report fstates that 89% of 18-29 year olds are active on social media (Bullas, 2014). This shows that social media is great for targeting a large consumer base. Abercrombie over the past few years have been successful in using these social media platforms, having built up a strong following. Also through daily posts have a strong brand presence through their website, Facebook, Twitter and Instagram. Screenshots of these media platforms can be seen in App. 2. Urbanisation City growth has risen considerably over the past few years. The Euromonitor International states ‘The global shift towards urban living is shaping consumer markets and demand.’ Having a larger population in metropolitan cities will mean there is a high demand for clothing in stores. Abercrombie should take advantage of this rise in population to promote the brand. Abercrombie unfortunately only have a small number of stores within the UK, and could benefit from promoting the brand throughout these growing UK cities. They could consider opening pop up stores . A great way of promoting the brand to a larger demographic, at a cheaper cost without the risk of having to open any more stores.
Emerging middle classes As a result of economic growth since the recession in 2008 there have been huge sections of the population moving out of poverty and into the middle class. This means that more of the population have more disposable income and are willing to go out and spend that extra bit of money on luxury items, such as clothing. This will result in a rise of sales for Abercrombie, as they are seen as an expensive ‘casual luxury’ brand, consumers will be more comfortable paying a higher price.
16
Political
ISSUE
AFFECT ON ABERCROMBIE
· Taxation Policies
· Changes in law could affect how Abercrombie run the business in order to meet new law standards, affecting
· Change in government
the brand financially. · An increase on income tax, will see a decline in sales for Abercrombie as consumers will be more money
Economic
· Recession
· Disposable income · Employment · Cost of Raw Materials · State of global economy
Social
· Lifestyle changes · Social media · Consumer attitudes and
opinions
Technological
Legal
Environmental
conscious. · ‘UK job market set for an upbeat 2015’ (Guardian, 2014) The recent 1.8% increase in workers’ wages within the UK (Guardian, 2014) and decrease in unemployment means consumers have more disposable income · New marketing strategies will be needed to increase sales if poor economic conditions return. · Abercrombie target audience is 18-23 year olds. This is currently the age where their consumers are in school or university. This will effect consumer behavior as no job means no income, affecting sales. Abercrombie could offer student discount, which would appeal to a huge market as there are millions of students worldwide. This may not necessarily increase sales but won’t affect them any further.
· The increasing popularity of social media allows brands to reach and communicate directly with their
consumers in a much more effective way. · It’s vital brands keep up to date with trends and understand exactly what their consumers want. Currently
Abercrombie are struggling with this as consumers feel the brand is becoming dull and un cool.
· Online shopping
· Inventions such as the iPhone and iPad have changed the way consumers shop and receive company news.
· New inventions
· The use of online shopping allows brands to access the worldwide market without the cost of building stores.
· Product manufacturing
· Having the latest manufacturing technology allows brands to stay innovative and surpass their competitors.
· Legislation on products and
· A change in legislation could affect Abercrombie financially in order to meet new standards.
packaging
· Abercrombie need to make sure all equipment and working areas meet health and safety standards, not only
· Health and safety laws
important for employee well-being but reputation of the company.
· Employment laws · Ethical manufacturing
· Ethical manufacturing is important to create a positive brand image and good reputation.
· Pollution
· Try and use the most environmentally friendly method within the manufacturing process.
· Climate Change · Environmental awareness 17
18
19
STRENGTHS
WEAKNESSES
Strong brand image and global recognition
Problems with internal theft from employees
The brand have a very clear target market
Having one store in the UK enhances the image of the brand being exclusive
Sales have slid for four quarters in a row with profit shrinking 77% in 2014
The stores have been considered to be the most innovative kind of store format
Only use one form of marketing – controversial advertising visuals.
Comments made by CEO, Mike Jefferies about only wanting ‘attractive, cool’ kids wearing his clothing. Not overweight people.
Fake imitations are made and sold on at much lower prices
Overly priced
Store environment is now seen as overpowering
9000 employees who are highly involved in all aspects of the business
Low production cost
A&F loyalty club
OPPORTUNITIES
THREATS
Promote the brand further in growing UK cities where there aren’t any stores
Push marketing and promotions further on social media
Strong competition from other apparel brands at both the high and low ends of the spectrum e.g. H&M and Ralph Lauren. Meaning limited market share
Further expansion across Asia as the brand has become hugely popular
Rapid changing changes
Changes in the economy
Change in consumer preference
Expansion into new markets – home wear
Offer plus size clothing
Offer student discount
This SWOT analysis clearly highlights Abercrombie’s key strengths, but also the areas in which they need to improve. The key findings from my research support the information show above. For example, a weakness is that consumers feel Abercrombie’s products are too expensive for what they are, as seen in App 3. Also during a focus group that was held one girl stated ‘Why would I spend £40 pounds on a t-shirt when I can go to H&M and get something similar for £10 pounds’. A real opportunity for Abercrombie would for them so start offering student discount, or student loyalty card. As their target market is 18-23 year olds (Students). Abercrombie already offer a loyalty club which offers membership only promotions and free shipping over a certain fee. So they could take this existing concept and create a new alternative club for students, offering even lower prices and offers. This would attract a huge number of consumers with less disposable income, and would change their perception of perceiving Abercrombie as an overpriced brand. With the opportunity to see a positive increase in sales.
20
21
EXISITING MARKETS NEW MARKETS
EXISTING PRODUCTS
NEW PRODUCTS
MARKET PENETRATION
PRODUCT DEVELOPMET
Womenswear
Menswear
Accessories
Footwear
Fragrance
Seasonal trends in store and online
MARKET DEVELOPMENT
DIVERSIFICATION
Introduce a plus size range
Abercrombie is now available in several countries due to online shopping and worldwide shipping.
Continue expansion in China and The Middle East. Focusing on Shanghai and Dubai. (Business Week,2012)
Abercrombie could consider moving into homeware and stationary. Competitors such as Jack Wills have done this and have had great success.
The Ansoff Matrix like the SWOT, is a great way to clearly identify possible growth strategies for a business. Overall, looking at the model, Abercrombie should focus on diversifying. As Abercrombie only currently operate in one market (apparel market) it would be a great opportunity for them to enter a new market and do something completely different. A new path to change people’s current negative opinions about the brand. E.g. Homeware. Although this would be a risky strategy for A&F as they would be moving into a market where the brand have little experience and knowledge, fellow apparel brand such as Jack Wills have done something similar and have had great success. It will be crucial for Abercrombie to do thorough market research beforehand in order to have a clear understanding of the new market. The higher the risk, the higher the reward.
22
23
24
25
Abercrombie have only ever used very little marketing and advertisement. Until very recently Abercrombie has stuck with the same old marketing strategy. Using black and white visual advertisement of attractive shirtless models to attract consumers. A great form of promotion was the A&F shopping bags. They had these striking images plastered over them and were a great form of marketing when walking through busy city streets. People would see the black and white images of these attractive models and immediately know it was Abercrombie. The store itself was a form of promotion, especially during the mid 2000’s. It was an experience – the music, the lighting, having your picture taken with the models as you left. It all reflected the young cool brand that it was. A girl from a focus group stated ‘It wasn’t just about going to buy the clothes. It was the whole experience – the shop, the models greeting you at the door, and the bag’. Shoppers however have moved on and started to find it all outdated and overpowering, especially the older generation .
However, recently Abercrombie have started to recognise that the brand is not as popular with teens as it used to be and has decided to improve and start ‘enlisting so called Instagram Kids in marketing’ (Jefferies, Adage 2014). The brand started using social media partnering with fashion bloggers on Instagram and gained a large following on Facebook with over 9million likes, and posts more than 300 items a week across their social media sites (Adage, 2014) with likes, comments and shares having quadrupled since January. The lights have been turned up, music has been turned down, shirtless models have been replaced with mannequins and blinds on store windows are gone and the company is experimenting with store displays for the first time. This is a great step in the right direction and it’s all well and good making these changes but Abercrombie’s are still having problems changing peoples perception of the brand.
26
27
Key findings from my primary research highlighted these main points: (See App.3)
Only 13% of people shop at Abercrombie today for clothing with 36% rarely or 54% never shopping there
76% of people said they would be more likely to shop at Abercrombie if they offered a variety of different products
79% of people said Abercrombie would benefit from going into homeware or stationary. With little interest today in Abercrombie’s clothing, creates an opportunity for Abercrombie to look into doing something completely different to attract and bring back lost customers.
Abercrombie currently only operate in the apparel market and could benefit from diversifying into a new market, the homeware market. 2014 saw the homewares retail market enjoy its third consecutive year of growth. The fastest it’s grown for seven years (Verdict Retail, 2014). Only few of Abercrombie competitors are present within the homeware market- Jack Wills and Ralph Lauren. Both brands target consumers with more disposable income than the average consumer as their products are considered luxury goods. These consumers have found their prices too high and see their products as a one off luxury purchase.
The idea for Abercrombie would be to target university students. Offering a range of high quality bedding, pillows, blankets and stationary, but at reasonable prices. Also offering ‘Off to university’ trunks –a pre packed selection of homeware. Jack Wills and Ralph Lauren both charge high prices for their home wear products. Therefore, Abercrombie in order to create a competitive edge would focus on targeting university students their target market, offering these homeware products at lower prices than their competitors. On top of this, Abercrombie will introduce a 15% student discount on clothing, and a student loyalty membership club (£15 set up fee). Being a member will allow students to:
Receive an extra 5% discount. So a total of 20% discount.
Free shipping when they spend £60+ online
Frist access to seasonal discounts codes and sales
Access to blogs for students about university life
28
29
Further Homeware Market Research The Homeware market is booming. Mintel Homeware report states that there has been an increase in people willing to spend that little bit extra on bed linen to jazz up their bedroom. Plus the fashion for making a bed more sumptuous with layers of covers and extra cushions is helping to drive demand for bed covers and soft furnishings (Mintel,2014). Its projected that people will start to invest a little more in the future for better quality and comfort in household linens. University Student Analysis There have been record numbers of undergraduate students attending university within the UK. Back in 2012 there were 1.9 million undergraduates (Universities UK, 2012). Today only 27% of students still live at home whilst attending university, with 73% of students living in halls of residences, flats or houses near the university. (The Guardian, 2013) A large market for Abercrombie to target- students going off to university needing to purchase new homeware items such as bedding. The students present at the focus group highlighted these main points when discussing buying for university:
Students look for reasonable priced, high quality and stylish bedding when buying for university
They wanted to make their rooms ‘a home away from home’ so bought extra cushions and blankets and soft furnishings.
This shows great potential success for Abercrombie going into this market with a growing interest of homeware products within the UK and filling a gap in the market of offering luxurious branded bedding for students at low prices.
Marketing Objectives
To implement the new homeware range into stores by the end of 2016.
To see a steady growth of sales of the new homeware range by the middle of 2017 by 15% To increase awareness of the new homeware range and ‘The Trunk’ among UK university students by 30-40 % within 18 months of launch by conducting market research.
To increase customer retention for Abercrombie by 20% by the end of 2016 through implementation of student loyalty membership and discount.
30
Product A range of bedding sets both single and double including pillow and duvet cases, cushions and blankets. ‘The Trunk’ a brown leather vintage style trunk will be a pre made set including bedding set, blanket, cushion a large Abercrombie poster and a free bottle of ‘Blushed’ perfume or ‘Fierce’ aftershave. The trunk itself can be used as further storage as it’s known some university hall bedrooms struggle with space. It will also make a great gift idea. The design of the bedding will be kept simple. A mixture of plain and patterned designs but keeping A&F’s main colours of grey, white, brown, navy blues and coloured flannel patters. Staying away from the graphic A&F logo style that drove consumers away in the first place. Price The range will be retailed at the following prices:
Single set (inc. one pillow case)- £ 40 / Doublet set (inc. two pillow cases)- £60
Cushions - £15 / Blankets - £20
Trunk- Single set - £95 Double set - £125
These prices are considerably cheaper than its competitors. For example Jack Wills bedding prices range from £65-£110.
Place The range will be available in stores and online within the UK. As there are limited stores, Abercrombie will create pop up stores at the UK’s top university cities increasing accessibility and traffic to existing and new products.
Promotion Promotion will be vital for the launch of the homeware range. The pop up stores themselves will be the main form of promotion after the launch with strong interaction with social media. On social media there will be daily posts across all platforms to create a buzz about the new launch- Online website, Twitter, Facebook, Instagram and Pinterest with sneak peek previews of the range just before the launch in June 2015. At the time of launch advertisement will be focused towards students off to university, promoting ‘The Trunk’ and releasing dates of the pop up stores in each city. 31
Abercrombie & Fitch UK Store The one year communication plan will consist of pop up stores, in the form of 5 American school buses that will travel around the UK to the top university cities, focusing on the launch of the new homeware range. They will attend fresher’s fairs where Abercrombie staff will hand out freebie A&F pens, flyers and discount code codes. The bus will have ‘Abercrombie & Fitch Store Tour’ printed on the side, so when travelling the bus will be a form of promotion itself. The merchandise will be displayed within the bus and there will be sofas and seating area outside (during summer months) to create a chilled cool atmosphere. The design of the bus will reflect the brand by using the same colour schemes and furniture details from stores. Throughout the year, the pop up stores will hold events in the different cities. In summer months, hosting day BBQ’s with music and DJ’s at the buses and in the winter serving hot drinks and food. These events will attract students all year round to the pop up stores. They will also will give students the opportunity to sign up and become Abercrombie representatives and further promote the brand around campus. They will be chosen by Abercrombie staff and will receive commission on each item they sell. Costing
Pop Up Store American School Bus x5 Interiors Petrol Hotels for staff for tour Flyers design and print
Price £ 100,000 10,000 1,000 110,000 1,000
Total
222,000
32
Product A selection of menswear and womenswear but the main focus being around new home ware range and ‘The Trunk’.
Price There will be 15% student discount available on all men’s and womenswear. Offers and codes can be gained through social media interaction. For example by Tweeting/Instagraming/ Facebooking a picture of them next to the Abercrombie bus and using ‘#AbercrombieOnTour’ they will be able to receive a further 10% discount.
Place The store tour will take place across the UK’s most popular university cities. Starting up North in Edinburgh and working down South to Brighton. The cities will be: Edinburgh, Glasgow, Newcastle, Leeds, Manchester, Liverpool, Cardiff, Sheffield, Birmingham, Nottingham, Oxford, Cambridge, London, Bristol, Bath, Exeter, South Hampton, Portsmouth, and Brighton. After fresher’s fairs have ended , the bus pop up store will continue traveling and will stay 4 days in each city. Promotion Abercrombie should focus their promotion of the pop up store tour online. Through their website, social media platforms and direct email to customers. The hashtag ‘#Abercrombie StoreTour’ will allow people to follow and keep up to date with it. Abercrombie will post daily information on their location and upload daily pictures. Competitions will be held on Instagram and Twitter as previously mentioned to offer further discounts. Further strengthening Abercrombie’s social media presence. At the pop up stores Abercrombie representatives will be handing out flyers and posters to passing students. 33
Year 1 Year one will focus on the design, production and launch of the homeware range.
34
Year 2 Year two will focus on the 1 year communication plan ‘Abercrombie’s UK Store Tour’
Year 3 Year three will focus on further development, designs and promotion of the homeware range
35
The ‘Abercrombie UK Store Tour’ has a lot of potential to create a real buzz about the brand. The pop up store hype will give Abercrombie the opportunity to get rid of their negative perception of being seen as a dull, outdated and overpriced brand. From the issues and recommendations highlighted in this report, it is clear that Abercrombie have several problems that need to be addressed. If these recommendations are implemented, Abercrombie can take the next step and successfully reach their objective of getting back the consumers it has lost to high street stores. In order to determine future success, I believe Abercrombie moving into the homeware market, engaging with students through events, social media and lowering their prices will give Abercrombie the opportunity they need to move forward and become the popular brand it used to be.
36
37
Abercrombie & Fitch, (2013). A nnual Report. [online] Available at: http://www.abercrombie.co.uk/anf/investors/investorrelations.html [Accessed 15 Jan. 2015]. Adage.com, (2014). Abercrombie Minimizes Logos, Embraces Social Media. [online] Available at: http://adage.com/article/cmo-strategy/abercrombie-minimizes-logos-embraces-social-
media/293388/ [Accessed 11 Jan. 2015]. Blog.euromonitor.com, (2012). 10 Global Macro Trends for the Next Five Y ears - Analyst Insight from Euromonitor International. [online] Available at: http:// blog.euromonitor.com/2012/11/10-global-macro-trends-for-the-next-five-years.html [Accessed 16 Jan. 2015]. Bullas, J. (2014). 22 Social Media Facts and Statistics Y ou Should Know in 2014 - Jeffbullas's Blog. [online] Jeffbullas's Blog. Available at: http://www.jeffbullas.com/2014/01/17/20social-media-facts-and-statistics-you-should-know-in-2014/ [Accessed 16 Jan. 2015]. Businessweek.com, (2012). At A bercrombie & Fitch, Sex No Longer Sells. [online] Available at: http://www.businessweek.com/articles/2012-08-30/at-abercrombie-and-fitch-sex-nolonger-sells [Accessed 11 Jan. 2015]. Close, J. (2015). Dear Abercrombie & Fitch, we're done with you. [online] NASDAQ.com. Available at: http://www.nasdaq.com/article/dear-abercrombie-fitch-we39re-done-with-youcm414523 [Accessed 10 Jan. 2015]. Farfan, B. (2013). Reality of the Abercrombie & Fitch Brand Is In Products, Not Its Brand Image. [online] About.com Money. Available at: http://retailindustry.about.com/od/ RetailWorstPractices/a/Reality-Abercrombie-Fitch-Products-Brand-Image-CEO-Mike-Jeffries-Leadership-Failures.htm [Accessed 16 Jan. 2015]. Farfan, B. (2014). Company Mission Statements - Complete List of World’s Largest Retail Missions. [online] About.com Money. Available at: http://retailindustry.about.com/od/ retailbestpractices/ig/Company-Mission-Statements/Abercrombie---Fitch-Mission-Statement.htm [Accessed 2 Jan. 2015]. Forbes, (2013). Is Anyone Shopping At Abercrombie & Fitch? Apparently Not. [online] Available at: http://www.forbes.com/sites/abrambrown/2013/08/22/is-anyone-shopping-atabercrombie-fitch-apparently-not/ [Accessed 14 Jan. 2015]. Forbes, (2014). Boom! Abercrombie & Fitch Drops Its Logo. [online] Available at: http://www.forbes.com/sites/walterloeb/2014/09/02/boom-abercrombie-fitch-drops-its-logo/ [Accessed 4 Jan. 2015]. Jefferies, M. (1998). Abercrombe and Fitch Annual Report. [online] Available at: http://media.corporate-ir.net/media_files/NYS/ANF/reports/FY98annual.pdf [Accessed 13 Jan. 2015]. 38
Johnson, L. (2014). Abercrombie & Fitch aims to recoup losses with new loyalty, merchandising strategy - Multichannel retail support - Mobile Commerce Daily. [online] Mobilecommercedaily.com. Available at: http://www.mobilecommercedaily.com/abercrombie-fitch-aims-to-recoup-losses-with-new-loyalty-merchandising-strategy [Accessed 13 Jan. 2015]. Lepore, M. (2011). ABERCROMBIE: How A Hunting And Fishing Store Became A Sex -Infused Teenybop Legend. [online] Business Insider. Available at: http:// www.businessinsider.com/abercrombie-fitch-history-2011-4?op=1&IR=T [Accessed 4 Jan. 2015]. Lutz, A. (2013). Abercrombie & Fitch Refuses To Make Clothes For Large W omen. [online] Business Insider. Available at: http://www.businessinsider.com/abercrombie-wants-thin-
customers-2013-5?IR=T [Accessed 16 Jan. 2015]. Macdonald, M. (2014). UK homewares market growth in 2014- the fastest for seven years | Verdict. [online] Verdictretail.com. Available at: http://www.verdictretail.com/uk-homewaresmarket-growth-in-2014-the-fastest-for-seven-years/ [Accessed 16 Jan. 2015]. Macdonald, M. and Dunbar, I. (2013). Market Segmentation. [online] Marketingsociety.com. Available at: https://www.marketingsociety.com/the-library/market-segmentation [Accessed 15 Jan. 2015].
Maitland, O. (2015). Teenage Fashionwear. [online] Keynote.co.uk. Available at: https://www.keynote.co.uk/media-centre/in-the-news/display/teenage-fashionwear/?articleId=93 [Accessed 2 Jan. 2015]. Mintel, (2014). Consumers and the Economic Outlook: Quarterly Update - UK - October 2014. [online] Mintel. Available at: http://academic.mintel.com/display/720990/ [Accessed 5 Jan. 2015]. Mintel, (2014). Homewares- UK - January 2014. [online] Mintel. Available at: http://academic.mintel.com/display/679594/ [Accessed 16 Jan. 2015]. Mintel, (2014). Y outh Fashion - UK. [online] Mintel. Available at: http://academic.mintel.com/display/679691/ [Accessed 16 Jan. 2015 Monaghan, A. (2014). UK jobs market set for upbeat 2015 but skills shortage remains. [online] the Guardian. Available at: http://www.theguardian.com/business/2014/dec/22/new-jobs-payrises-uk-workers-skills [Accessed 12 Jan. 2015]. Papworth, J. (2013). Student accommodation: what you need to know. [online] the Guardian. Available at: http://www.theguardian.com/money/2013/aug/15/student-accommodation-whatneed-know [Accessed 17 Jan. 2015]. Shaer, M. (2014). W hy Abercrombie Is Losing Its Shirt. [online] The Cut. Available at: http://nymag.com/thecut/2014/02/why-abercrombie-is-losing-its-shirt.html [Accessed 24 Jan. 2015]. Transcripts, S. (2013). Abercrombie & Fitch Management Discusses Q3 2013 Results - Earnings Call Transcript. [online] Seekingalpha.com. Available at: http://seekingalpha.com/ article/1854881-abercrombie-and-fitch-management-discusses-q3-2013-results-earnings-call-transcript?page=2 [Accessed 12 Jan. 2015]. 39
Abercrombie & Fitch, (2013). A nnual Report. [online] Available at: http://www.abercrombie.co.uk/anf/investors/investorrelations.html [Accessed 15 Jan.
2015]. Abercrombie.co.uk, (2015). A bercrombie & Fitch | A uthentic A merican clothing since 1892. [online] Available at: http://www.abercrombie.co.uk/shop/ uk?DM_PersistentCookieCreated=true [Accessed 24 Jan. 2015]. Adage.com, (2014). A bercrombie Minimizes Logos, Embraces Social Media. [online] Available at: http://adage.com/article/cmo-strategy/abercrombieminimizes-logos-embraces-social-media/293388/ [Accessed 11 Jan. 2015]. Blog.euromonitor.com, (2012). 10 Global Macro Trends for the Next Five Y ears - Analyst Insight from Euromonitor International. [online] Available at: http://blog.euromonitor.com/2012/11/10-global-macro-trends-for-the-next-five-years.html [Accessed 16 Jan. 2015]. Durk, M. (2015). Textiles Intelligence || Global A pparel Markets. [online] Textilesintelligence.com. Available at: http://www.textilesintelligence.com/ tisgam/?pageid=3&repid=TISGAM&issueid=13&artid=1675 [Accessed 2 Jan. 2015]. Facebook, (2015). A bercrombie & Fitch. [online] Available at: https://www.facebook.com/abercrombie [Accessed 11 Jan. 2015]. Gap.co.uk, (2015). Shop clothes for women, men, baby, and kids | Gap. [online] Available at: http://www.gap.co.uk/ [Accessed 14 Jan. 2015]. Hm.com, (2015). H&M offers fashion and quality at the best price | H&M GB. [online] Available at: http://www.hm.com/gb/ [Accessed 14 Jan. 2015]. Instagram.com, (2015). A bercrombie & Fitch (@abercrombie) • Instagram photos and videos. [online] Available at: http://instagram.com/abercrombie [Accessed 19 Jan. 2015].
40
JACKSON, T and SHAW,D. 2008. Mastering Fashion Marketing. Palgrave Macmillan. . [Accessed 5 Jan 2015] Jack Wills, (2015). Jack W ills | Fabulously British. [online] Available at: http://www.jackwills.com/en-gb/home [Accessed 14 Jan. 2015]. MCDONALD, M and WILSON, H. 2011. Marketing Plans: How to prepare them, how to use them [Accessed 7 Jan 2015] POSNER, H 2011. Marketing Fashion. [Accessed 7 Jan 2015] Ralphlauren.co.uk, (2015). Ralph Lauren UK: The Official Ralph Lauren Online Shop. [online] Available at: http://www.ralphlauren.co.uk/home/index.jsp [Accessed 14 Jan. 2015]. Topshop.com, (2015). Topshop - Women's Clothing | Women's Fashion & Trends. [online] Available at: http://www.topshop.com/?geoip= home [Accessed 14 Jan. 2015]. Urban Outfitters, (2015). Urban Outfitters. [online] Available at: http://www.urbanoutfitters.com/uk/index.jsp [Accessed 14 Jan. 2015].
41
App.1
App.2
42
App.3
Word Count— 5,435 43
44