Download Jerell Little MAR3503 Case 4 Case 4 is about the rise and success

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Transcript
Jerell Little
MAR3503 Case 4
Case 4 is about the rise and success of Abercrombie & Fitch (A&F) in the
early 90s as they were effectively able to rebrand themselves and market to a
younger subculture. Founded in 1892 they were originally an outdoor and
conservative menswear outfitter however after hiring Michael Jefferies in 1992,
A&F went from a meager $165 million dollar in sales to $1.6 billion in 2002. Despite
the successful campaign in marketing to the youth segment, A&F finds itself trying
to keep up with the constant changing fashion trends and increased competition
from other competitors.
1 – Bananarepublic.com
Differs from A&F marketing wise because they show off the
clothes on the models vs. A&F showing off the models with clothes. The
BR models also appear to be in more action oriented shots vs. candid
still poses. The model selection also appears to be diverse in ethnicity
invoking a - this is for everyone – attitude, as well as they come across a
tad bit more mature.
I would not suggest any changes to the marketing strategy
displayed by Banana Republic due to the fact that they are better
poised to grow with a consumer beyond just the youth subculture.
–
JCrew.com
Differs from A&F marketing wise as they are portraying
themselves as more along the lines of fashion consultants. The website
has many how to dress and style yourself for any occasion including
the accessories that go with the outfit. JCrew.com also differs from A&F
as they are marketing towards young adults and young adults with
kids.
I would not suggest many changes for J Crew’s marketing
strategy however I believe they could do a better job of communicating
the fashion consultant for the entire family message more.
2 – Department stores can make themselves more relevant to the youth
subculture by including subculture pop icons and heroes into their marketing
material. They could also hold in store signings or meet and greets to attract
the youth subculture into the department store. This would also bring
parents and guardians along with them that would shop elsewhere in the
store.
3 – Comparing Hot Topic’s submarket to that of A&F shows that Hot Topic is
aiming to attract the non-conformist, edgy, and alternative lifestyle living
individual versus A&F’s target consumer that believes and behaves as if they
need A&F’s merchandise to fit in or belong within the subculture. Hot Topic’s
target consumer believes and behaves in a manor that does not care so much
about image or fitting in but more so of standing out and being an individual.
What’s most important in shopping at A&F is that they are able to illicit an
affective response from the buyer that makes them feel like they are part of
the in crowd or have a sense of high class. On the other hand with Hot Topic
what is most important about shopping in their stores is that the buyers
affective response is welcomed no matter how eclectic or indifferent.
4 – A&F can guard against becoming too mainstream and prevent customer
backlash through several methods, the first being price control and the
second being limited runs or exclusive runs. Through price control A&F can
raise their prices to effectively control the flood of merchandise to the
masses. This would make the clothing line more of a luxury item and not so
much a mainstream item. Another method would be through limited runs or
exclusive runs of products to control the supply for those who have the
highest demand.
I do not believe it is possible for A&F to remain popular with young shoppers
for many years due to the fact that the subculture is too responsive to change
and A&F is too slow to adapt to new trends.
5 – The advantages of A&F using a diversification strategy that markets to
kids through their abercrombie kids line is that it can have a lasting effect on
the consumer, which in turn creates brand loyalty at a younger age. It also
allows A&F to introduce new designs to a younger base to see if they would
be able to sustain and grow into or influence the older product line.
The disadvantage of A&F using a diversification strategy that markets to kids
through their abercrombie kids line is that it creates subculture saturation as
in having too much of a good thing, running the risk of making the brand too
mainstream. Another disadvantage with this diversification strategy is that
kids are messy and parents may not want to spend the money on high end
children’s clothes, knowing they will eventually destroy or out grow them
rather quickly.