- Abercrombie & Fitch was established in 1892 as a sporting goods store and evolved into a clothing retailer - It operates stores under brands like Abercrombie & Fitch, Hollister, and Gilly Hicks targeted at teenagers and young adults - In recent years, the company has faced criticism and lawsuits over exclusionary hiring practices and marketing, and seen declining profits as its brand has lost relevance for many consumers

1. BUS342Z2
Branding, Professor Kris
Chapell
By Jacquelyn LeCompte

2. Abercrombie & Fitch
Company 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-)

3. TIMELINE Abercrombie & Fitch
1892-1992
The largest sporting goods
store in the country
David. T. Abercrombie
opened Abercrombie & Co.
The Limited purchased the struggling store
the brand is repositioned to casual clothi
Ezra Fitch, became a
partner
After a tumultuous decade, the chain is
bought by Oshman's Sporting Goods.
Michael Jeffries was hired

4. TIMELINE Abercrombie & Fitch
1996-2006
A&F settles a class action suit f
$50 million because of racist hiring p
y Salon Magazine in which he expressed some
hts on A&F’s target audience.
The company upsets the Asian
community with racist T-shirts
Hollister, a sub-b
was launched
tional Coalition for the Protection of Children &
s, 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

5. TIMELINE
Abercrombie & Fitch
2007-2014
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 recessio
blamed for 80% drop in A&F st
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.

6.  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

7.  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.

8.  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.

9.  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)

10. • Company has had a successful financial history
• Well 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
• Established reputation of providing 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 employees to create campaigns
which “give back” to surrounding communities
• Redesign stores to feel more friendly to non-
typical prospective consumers
Threats
• Public’s perception of company being insincere
about embracing diversity
• Allowing their social media sites to be rest stops
instead of destinations; 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
• Major shareholders (Equity Capital) looking to
remove CEO
W
TO
Primary factors
SWOT ANALYSIS

11. Age 14 -29
In school or just entering the
work force
Buys their own clothes, seeks
their own style
Youths from all nationalities
All sizes
Looking for casual, classic and
trendy style
Looking for premium quality and
style
Abercrombie &
Fitch
NEW Target
Demographic

12. 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 &
Fitch
Current Target
Demographics

13. Abercrombie & Fitch
Brand Awareness Evaluation
• s
Strengths of Current Brand Image
Well 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 Company
Overpriced, 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 & F
The competition runs regular promotions and sales, offers clothing in all sizes,
markets to all ethnicities and promotes making a difference in the world.

14. Abercrombie & Fitch
Brand 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

15.  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

16.  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

17. Abercrombie & Fitch can market to beautiful People
As long as their entire brand portfolio is
positioned and marketed with the message
that all people have their own unique beauty.

18. 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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