Abercrombie &  Fitch Co.        Company analysisPrepared by: Olga Gnedash, Alexander       Petrushin, Brent Hanson
Agenda   Company Overview   Business Description   History   Industry and    competitors   SWOT analysis   Unique Sa...
Company Overview   Specialty retailer that sales casual apparel   Operates under 5 brands: Abercrombie & Fitch,    Aberc...
 WhatAbercrombie 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...
Abercrombie & Fitch   Established June 1892   Targets 18-22 year-old age group   357 stores   Theme “Casual Luxury”  ...
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-owne...
Industry and Competitors   Retail Industry (Special Lines)   40,000 companies operate 90,000 stores   Summarized annual...
 Whatare Abercrombie and Fitch main competitors?
Industry and Competitors   Gap, Inc., The   Target Corporation      Tommy Hilfiger   Gap, Inc., The           Corporat...
Competition                   Abercrombie &   American Eagle The Gap                   FitchEstablished        1892       ...
SWOT Analysis   Strengths   Strong brand portfolio   Strong financial performance   Robust balance sheet   Weaknesses...
SWOT Analysis   Opportunities                Threats   Expansion in new             Counterfeit goods    markets      ...
Unique Sales Strategy: IMC   High integration of Marketing    efforts   Recruits high energy “brand    reps” largely fro...
Unique Sales Strategy   Emphasis on high level of    service, quality, brand    image   Targets Generation Y   Position...
Unique Sales Strategy: Publicity   Positive                            Negative   18-22-year-olds                     ...
Unique Sales Strategy: Store Layout   comfortable armchairs    designed   Large photos on the    walls   extremely loud...
Unique Sales Strategy: Web site   Allows to download    music, e-post cards   Provide useful    information, FAQ    Sho...
Recommendations and Conclusion   Long-term recommendations   Open a discount clothing store   Invest in overseas expans...
Thank You For Attention
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Brent anf

  1. 1. Abercrombie & Fitch Co. Company analysisPrepared by: Olga Gnedash, Alexander Petrushin, Brent Hanson
  2. 2. Agenda Company Overview Business Description History Industry and competitors SWOT analysis Unique Sales strategy Recommendations and Conclusion
  3. 3. 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
  4. 4.  WhatAbercrombie and Fitch brands are you familiar with?
  5. 5. Abercrombie Established July 1998 7-14-year-old age group 170 stores in US “Classic cool” theme Logo Moose
  6. 6. Hollister Co. Established July 2000 14-18-year-old schoolers 455 stores in US and Canada Theme “SoCal” Logo Seagull
  7. 7. Abercrombie & Fitch Established June 1892 Targets 18-22 year-old age group 357 stores Theme “Casual Luxury” Logo Moose
  8. 8. The RUEHL Established September 2004 Targets 22-35 year adults Operates 22 stores Logo French Bulldog
  9. 9. Gilly Hicks: Sydney Established January 2008 Operates 5 stores Targets 18 and up Logo Koala Theme Australia
  10. 10. 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 456- page 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
  11. 11. 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
  12. 12.  Whatare Abercrombie and Fitch main competitors?
  13. 13. Industry and Competitors Gap, Inc., The Target Corporation  Tommy Hilfiger Gap, Inc., The Corporation Limited Brands  Urban Outfitters, Inc. American Eagle  Wet Seal, Inc, The Outfitters, Inc.  Aeropostale, Inc. Benetton Group SpA
  14. 14. Competition Abercrombie & American Eagle The Gap FitchEstablished 1892 1904 1969Revenue (billion 6.91 2.8 16USD)Number of 1039 697 3139storesEmployees 80,100 20,600 150,000Scope of US, Canada, US More than 19operation UK countries
  15. 15. SWOT Analysis Strengths Strong brand portfolio Strong financial performance Robust balance sheet Weaknesses Low inventory turnover ratio Limited geographic reach
  16. 16. SWOT Analysis Opportunities  Threats Expansion in new  Counterfeit goods markets  Increasing rental rates in Investment in US infrastructure  Slowdown in the US Development of new economy concepts Increasing online sales
  17. 17. 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”
  18. 18. 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
  19. 19. Unique Sales Strategy: Publicity Positive  Negative 18-22-year-olds  Parents Controversy surrounding its ad  Organizations campaign has added allure and exclusivity  Legislators 34 consecutive quarters of  “Playboy for kids” record sales and earnings
  20. 20. Unique Sales Strategy: Store Layout comfortable armchairs designed Large photos on the walls extremely loud, energizing trance and dance songs dimmed light unique A&F’s scent in the store
  21. 21. Unique Sales Strategy: Web site Allows to download music, e-post cards Provide useful information, FAQ Shop online Watch Abercrombie TV Create ANFMail accounts
  22. 22. 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
  23. 23. Thank You For Attention

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