Strategy and Target Audience of Abercrombie & Fitch

Strategy and Target Audience of Abercrombie & Fitch
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Abercrombie & Fitch
David Abercrombie established Abercrombie Co. in 1892, which later became Abercrombie & Fitch. A New York City-based retailer of sports goods, it was well known for its extensive selection of pricey and frequently unusual sporting products, from tennis shoes to elephant weapons. When attorney Ezra Fitch joined the business as a partner in 1904, the firm's name was changed to Abercrombie & Fitch. The clothing, weapons, tackle, and other goods in the store were the epitome of accuracy and wealth for more than 50 years, leading the American humorist Ed Zern to make fun of a finely attired angler as an "Abercrombie and Fitcherman" (Editors of Britannica, 2022). When the company grew, it restricted the locations of its new branch stores to vacation towns and the downtowns of major cities. Abercrombie & Fitch made an effort to increase the size of its client base in the early 1970s by expanding into the suburbs, where rival stores had been expanding for some time, and by introducing more reasonably priced items to its regular inventory. Although these actions did bring in more clients, they were too late; after 85 years in operation, Abercrombie & Fitch had financial problems and declared bankruptcy.
Abercrombie & Fitch is currently one of the largest U.S. distribution companies with a focus on urban and casual apparel. The business works under four brands that cater to various youth demographics aged 7 to 22. The collections are sold through its DOS (directly operated shops) in every country, and the differentiation between the many brands is the secret to its success. Each of its brands has a distinctive storytelling strategy that causes each target audience to feel a part of the group deeply. The founder, Mike Jeffries, had the vision that his companies would become idolized by every American youth. For instance, the main brand Abercrombie & Fitch embodies privilege and defines the specific way of life of a certain group of young Americans: the attractive, well-liked university students who are constantly admired and pleased (Verónica, 2014). Despite being one of the largest fashion distribution organizations and having a long history of excellent outcomes, Abercrombie & Fitch is currently experiencing a challenging economic climate brought on by a downward trend in its income statement. Following their observation of this circumstance, shareholders have asked for a change in tactics.
Marketing Strategies
The marketing mix methodology used by Abercrombie & Fitch to analyze their brand covers the four Ps (Product, Price, Place, and Promotion). Various marketing tactics exist, including product innovation, pricing strategy, promotion planning, etc. These commercial approaches, which are based on the marketing mix of Abercrombie and Fitch, aid in the brand's commercial success. The marketing strategy of Abercrombie and Fitch aids the brand/company in establishing a competitive market position and achieving its corporate goals & objectives (Mba Skool, 2022). Abercrombie and Fitch company has always focused on attracting customers by offering not just high-quality goods but also memorable experiences. Abercrombie and Fitch want to be accessible to everyone worldwide, and with more than 300 locations in the United States and ongoing expansion, they are working toward that goal.
In terms of brand recognition, Abercrombie & Fitch has likewise taken great care. They frequently connect the images of their items and customers. A&F typically uses people with big advertisements to affect the viewer. The primary cause of this is that Abercrombie and Fitch is shifting their focus to target older consumers rather than merely disobedient teenagers. The brand has selected a variety of platforms to advertise its goods. A&F has Marxist undertones in all of its publications, including its television commercials and magazines. The business is actively promoting the brand on social media. The initiation of online selling has increased sales by 5% over a year. They have collaborated with fashion bloggers and use the Instagram channel to promote their products. The company itself posts more than 300 posts per week on social media sites. Abercrombie and Fitch have faced lots of criticism because of its bold advertisement strategy, even on Instagram, but now the brand has deleted all of its older photographs and replaced them with a single image, with the caption: "People have a lot to say about us. They think they've got us figured out" (Mba Skool, 2022). Competitive advantage of Abercrombie and Fitch lies in the fact that the brand has a solid retail presence in the U.S. as well as across the Globe.
Target Audience and Ideal Customer
Jeffries turned his attention to tapping Abercrombie & Fitch into a teenage market after stepping in as brand CEO in 1992. When he took charge, Abercrombie had 36 stores, generating $50 million in revenue. By 1996, the retail division had grown to 125 locations, generating $335 million in revenue and a staggering $25 million in profits (Leiva, 2022). In 1998, Abercrombie launched a line for ages 7 to 14 – which, when compared to comments from the CEO, felt a little cringe. The demand for Abercrombie & Fitch, however, skyrocketed during the course of the remaining decade to the point that the subsidiary Hollister opened its doors in 2000. Despite having a similar appearance, Hollister catered to older kids, specifically those between the ages of 14 and 18.
In 2014,...