Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Abercrombie &
Fitch
Group members: Astrid Babot, Flavia Hennessey, Jan Volny,
Jurriaan Daams, Luis Felipe Banlaky, Wei Chi...
Agenda
Brief Information of A&F
Market Potential in Brazil
Marketing Plan
Financial Projection
Conclusion
Basic information
• Name: Abercrombie & Fitch
• Foundation : June 4, 1892
• Founders : D. T. Abercrombie, E.
Fitch
• Presi...
A&F’s markets
• In total: 1049 stores
• US market:
o shrinking
• International markets:
o growing
o Europe
o Asia
o Canada...
A&F’s Goals
• Domestic: consolidation and shift towards ecommerce
• International: internationalization and rapid
expansio...
Brazilian Fashion Market
5th largest apparel
market in the world

Young people drive
the industry – 60% of
Brazil’s popula...
Buyers of A&F in Brazil

7
Consumption Characters
• Brazilians love to buy, shopping and show off
• Department stores(37%), Multi brands store(29%)
a...
Competition
Competition
Value proposition

Price
Market Penetration
strategy
Globalization.vs.Localization
• Global Strategy: same product, hot store
employees, perfume, electronic dance music,
light...
Promotion
• Target 14-25 years old middle and high class
people from SP and RIO
• Focus on infiltrating three media channe...
Print media
Broadcast media
Web/Social media
Flagship store opening
• http://www.youtube.com/watch?v=y_8ToiummuU
Distribution
• 2 street stores: one in Sao Paulo (Oscar Freire) and
one in Rio de Janeiro (Visconde de
Pirajá).
• Online s...
Pricing
• Keep as Premium
• Compared to John John Denim and OSKLEN
Shirt

Tees

Sweatshirt

Jeans

Cologne

R$270,00
to
R$...
REVENUE

Statement

Stores

Yr 1

(all numbers in $000)

Yr 2

Yr 3

2
18.000
3.240
21.240
637,2
20.603

3
27.000
4.860
31...
Calendar
Month 1

ACTION

Duration
(weeks)

Month 2

Month 3

Month 4

Month 5

Month 6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 ...
Conclusion
• Follow the Global Strategy
• 2 Flagship stores (RJ and SP) – way to test the
market
• Brazil is the right pla...
Thanks !
Appendix
REVENUE
Stores
Gross sales
Less sales returns and allowances
Online Sales
Net Sales

Assumptions

Yr 1

Yr 2

Yr ...
Upcoming SlideShare
Loading in …5
×

Abercrombie & Fitch in Brazil

4,834 views

Published on

International Marketing Management class. Masters Degree at EAESP-FGV Brazil

Published in: Marketing, Business, Career
  • Be the first to comment

  • Be the first to like this

Abercrombie & Fitch in Brazil

  1. 1. Abercrombie & Fitch Group members: Astrid Babot, Flavia Hennessey, Jan Volny, Jurriaan Daams, Luis Felipe Banlaky, Wei Chieh Lee Prof. Luís Henrique Pereira International Marketing Management 2013 1
  2. 2. Agenda Brief Information of A&F Market Potential in Brazil Marketing Plan Financial Projection Conclusion
  3. 3. Basic information • Name: Abercrombie & Fitch • Foundation : June 4, 1892 • Founders : D. T. Abercrombie, E. Fitch • President and CEO: Mike Jeffries • NYSE from 1996 • Headquarters : New Albany, OH , United States 3
  4. 4. A&F’s markets • In total: 1049 stores • US market: o shrinking • International markets: o growing o Europe o Asia o Canada 4
  5. 5. A&F’s Goals • Domestic: consolidation and shift towards ecommerce • International: internationalization and rapid expansion of stores (main marketing tool!) • Brazil: • Strategic: strong expansion of stores, introduce multiple brands • E-commerce gains importance • Social: diversity policy and cooperation with cotton industry
  6. 6. Brazilian Fashion Market 5th largest apparel market in the world Young people drive the industry – 60% of Brazil’s population is below 29 79% of Brazilians look forward to shopping for clothes and spend USD$402 annually on apparel 6
  7. 7. Buyers of A&F in Brazil 7
  8. 8. Consumption Characters • Brazilians love to buy, shopping and show off • Department stores(37%), Multi brands store(29%) and Single brand store(27%). • Social Class A & B consume 57% of apparel in Brazil • 68% bought apparels in special dates • Prefer to pay by credit cards 8
  9. 9. Competition
  10. 10. Competition Value proposition Price
  11. 11. Market Penetration strategy
  12. 12. Globalization.vs.Localization • Global Strategy: same product, hot store employees, perfume, electronic dance music, lighting… SAME CONSUMER EXPERIENCE!
  13. 13. Promotion • Target 14-25 years old middle and high class people from SP and RIO • Focus on infiltrating three media channels to reach our target consumer (print media, broadcast media and web/social media).
  14. 14. Print media
  15. 15. Broadcast media
  16. 16. Web/Social media
  17. 17. Flagship store opening • http://www.youtube.com/watch?v=y_8ToiummuU
  18. 18. Distribution • 2 street stores: one in Sao Paulo (Oscar Freire) and one in Rio de Janeiro (Visconde de Pirajá). • Online shopping and App store
  19. 19. Pricing • Keep as Premium • Compared to John John Denim and OSKLEN Shirt Tees Sweatshirt Jeans Cologne R$270,00 to R$450,00 R$140,00 to R$180,00 R$300,00 to R$450,00 R$400,00 to R$750,00 R$250,00 to R$450,00 ($80) ($30) ($80) ($80) ($50) 19 Average USA price
  20. 20. REVENUE Statement Stores Yr 1 (all numbers in $000) Yr 2 Yr 3 2 18.000 3.240 21.240 637,2 20.603 3 27.000 4.860 31.860 955,8 30.904 4 36.000 6.480 42.480 1274,4 41.206 Cost of goods sold 7.859 11.788 15.718 Gross Profit (Loss) 12.744 19.116 25.488 Stores and distribution Expense Marketing, General and Administrative Expense 9.346 67 14.018 100 18.691 134 Net Income Before Taxes Taxes on income 3.331 1.133 4.997 1.699 6.663 2.265 2.199 3.298 4.398 Store Sales Online Sales Gross sales Less sales returns and allowances Net Sales NET INCOME (LOSS) 20
  21. 21. Calendar Month 1 ACTION Duration (weeks) Month 2 Month 3 Month 4 Month 5 Month 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Legal Constitution * Brand Registration 6 1 Products Defining Mix Importation 4 6 Local Search Negociation Project Construction Positioning everything 4 2 6 8 2 Staff Search Selection Hiring Training 4 2 1 3 22 weeks 21
  22. 22. Conclusion • Follow the Global Strategy • 2 Flagship stores (RJ and SP) – way to test the market • Brazil is the right place – A and B classes are growing up 22
  23. 23. Thanks !
  24. 24. Appendix REVENUE Stores Gross sales Less sales returns and allowances Online Sales Net Sales Assumptions Yr 1 Yr 2 Yr 3 2 $21.240 3 $31.860 4 $42.480 $18.000 $3.240 $21.240 $27.000 $4.860 $31.860 $36.000 $6.480 $42.480 per year 9000 per store 18% of store sales 37% of goods sold Cost of goods sold $7.859 $11.788 $15.718 Gross Profit (Loss) $13.381 $20.072 $26.762 Stores and distribution Expense Marketing, General and Administrative Expense Other Operating Expense (Income) Net $9.346 $2.232 ($91) $14.018 $3.348 ($137) $18.691 44% of gross sales $4.465 10,5% of gross sales ($183) -43% of gross sales Net Income Before Taxes $1.895 $2.842 Taxes on income NET INCOME (LOSS) $3.789 $644 $966 $1.288 $1.250 $1.876 $2.501 34% Of Net Income 24

×