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1. Abercrombie &
Fitch Co.
Company analysis
Prepared by: Olga Gnedash, Alexander
Petrushin, Brent Hanson
2. Agenda
Company Overview
Business Description
History
Industry and
competitors
SWOT analysis
Unique Sales strategy
Recommendations and
Conclusion
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
5. Abercrombie
Established July 1998
7-14-year-old age group
170 stores in US
“Classic cool” theme
Logo Moose
6. Hollister Co.
Established July 2000
14-18-year-old schoolers
455 stores in US and Canada
Theme “SoCal”
Logo Seagull
7. Abercrombie & Fitch
Established June 1892
Targets 18-22 year-old age group
357 stores
Theme “Casual Luxury”
Logo Moose
8. The RUEHL
Established September 2004
Targets 22-35 year adults
Operates 22 stores
Logo French Bulldog
9. Gilly Hicks: Sydney
Established January 2008
Operates 5 stores
Targets 18 and up
Logo Koala
Theme Australia
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. 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
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. Competition
Abercrombie & American Eagle The Gap
Fitch
Established 1892 1904 1969
Revenue (billion 6.91 2.8 16
USD)
Number of 1039 697 3139
stores
Employees 80,100 20,600 150,000
Scope of US, Canada, US More than 19
operation UK countries
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. 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. 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. 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. 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. 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. 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