Abercrombie & Fitch Case Study

Question 1

There are many similarities between the consumers who are targeted by J. Crew, Banana Republic and Abercrombie & Fitch. However upon closer evaluation, it is apparent that there are few differences in the marketing strategies each of these three companies uses to position itself in the market of the notoriously fickle youth subculture.

All three companies target the same range of customers in terms of age demographics, however Abercrombie & Fitch differ in the manner it appeals to the target group compared to Banana Republic and J. Crew. Banana Republic seems to be appealing to young people who are perhaps just out of college and selecting a wardrobe for their first job. J. Crew offers upscale trend classics in creative store environments has perfected the distinctive preppy-yet-hip apparel to appeal to its young, upscale consumers.

In terms of marketing strategies, J. Crew and Banana Republic carry product lines that are not offered by Abercrombie & Fitch such as the office wear range. Also, the way the stores are presented and the sales representatives are dressed give a different appearance and message than Abercrombie & Fitch because the products they carry appeal to consumers with slightly different tastes than those of Abercrombie & Fitch.

J. Crew is well known for their high standard of style, craftsmanship, quality and customer service. It is a widely recognized brand that is especially known for their exquisite catalogs, which are also their primary source of advertising and sales. They have developed very distinct consumers, which allows them to successfully and easily market to the people that will make purchases. As opposed to A&F, J. Crew has implemented new marketing strategies and redefined its classic aesthetic and expanded its product line. While A&F believe their customers don't like to be told what to buy, J. Crew has personal shopper days, where stylists come into J. Crew stores to assist customers with shopping selections.

Banana Republic, on the other hand, is known for its modern and covetable workplace style for professional men and women. It offers versatile work wear that can be styled for any occasion from desk to dinner. Collections include clothing, handbags, jewelry and eyewear designs at accessible prices.

Question 2

Sears and JC Penny have lost market share with the arrival of specialty clothing stores such as Abercrombie & Fitch. In order to analyze what can be done by these department stores to appeal to this segments of consumers we have to first analyze what is being done by the specialty clothing stores that the department stores aren't doing or are unable to do under the present structure.

The specialty clothing stores use targeted advertising, store ambiance, and sales reps who understand the exact needs of the targeted group. Therefore, department stores should create a club-like atmosphere, complete with dim lighting and pulsating music. By giving teens a separate entrance and their own place to hang out, the youthful crowd will feel less self conscious about shopping where their parents shop. They can also do other things such as carry specialty clothes lines and accessories that have a coolness factor perspective. Their advertising strategy should have a foundation in or association with key interests and drivers among youth; music, sports, fashion, and technology, among others.

Question 3

Hot Topic specializes in music and culture-related merchandise with a strong punk rock aesthetic. In addition to clothes and accessories, Hot Topic also