Retail Marketing of Abercrombie & Fitch - Essay Example

Retail Marketing: Abercrombie & Fitch Abercrombie & Fitch is a US based company that deals with clothing apparels. The company has outlets in various cities in the world including London. The growth of the company necessitated its expansion to the foreign markets. Initially, the retail company concentrated its activities in the United States, but later directed its efforts to create other market outlets in the world. Marketing of the retail product of the company has been successful, not only in the United States but also in London. Marketing dictates the ability of a retail company to grow. The concern of this paper is to investigate the retail marketing of A&F by evaluating the following areas merchandise range and assortment, marketing communication, store layout, design and visual merchandising, customer, and retail mix among other aspects that have led to the growth of the retail company. Merchandise Range and Assortment A&F began its clothing retail by concentrating on clothes for age range 18 to 22, today the trend has changed and the retail company has brought a wide range of merchandise products in its stores (Funding Universe. 2012:1). The stores in Warwick United Kingdom do not only address the needs of the above age range, but also have brought products for other age ranges. The company retail history reveals that the merchandise stores of the company started with attires geared for sporting adventures, and fishing adventures. The company credits its merchandise ideas to the early ventures in all staffs required for sporting for the above age range. The focus of the retail company today promotes the American wear, which includes underwear, jackets, swimming shorts, vintage polos, and T-shirts (Funding Universe, 2012:1). Other assortments include shirts and sweaters, pajamas, scarves, belts and other assortments, which are styled with the American fashion. A&F has recognised the need to create stylish apparels, which can attract the young age as well as the middle and old age (Hephaestus Books, 2011:120). The assortment for women and men come in different styles. For instance, shirts have various sleeves techniques; some are short, long, curling, or sleeveless. The range also caters for women needs by capturing the stylish pattern demanded by women in response to fashion trend. The retail company has noted difference in response characteristics, which influences its merchandise range (Funding Universe. 2012:1). For example, assortment for belts provides a wide range of styles, which depend on colour, mood that the intended consumer wishes to portray in the society. Sports gear reflects that the society is in the sports moods while swim costumes illustrate swimming mood. For examples, some belts are slim with big buckles while others have stylish buckles, which suit the diverse needs of the consumer. It is important to note the customer behaviour for the targeted merchandise planning. Market analysts believe that merchandise assortment must target a given target population if the retail business intends to succeed (Dunne, et.al. 2010:129). A&F have applied the same argument to locate is stores targeting specific consumers. Beauty is a factor of concern for the store because the target age bracket 18 to 22 has many expectations in life. The dream of their world differs from the views of the old age. For examples, dressing crazy or the American wear fashion speaks of the great adventures that the age range seeks to display in the society. Shapes are crucial to the merchandising range for this store. The retail has provision for slender or slim to heavy built bodies. Some people like free fitting apparel while others like tight fitting clothes. The brand category offered in the store does not only favour the immediate age but also targets to influence other range. For example, the idea of brand variety offers a wide opportunity for the consumers to choose. A single, brand limits consumers from choosing the products, which the stores has. Studies have indicated that bright looking apparels or product would always contribute to impulse buying (Dunne, et.al. 2010:130). The culture of the target market is another influential factor that is worth consideration because it defines the range of merchandise that the retail has to present to the market. Merchandise characteristic of a firm would influence the prices, profit margin, and the level of services that it offers to the target market. Thus, A & F offers a wide range of product in order to influence the income of range as well as service range that it offers to the community. Retail business in clothing apparel is quite tricky owing to the dynamism of the market. This attribute influences company’s ability to create effective prices as well as offering product ranges that would satisfy the target consumers. The retail market largely, depends on the consumer trend for sustainability of the business operation. Narrow markets occur whenever, the retail firm concentrate in a specific product line in the market (Plunkett, 2008:56). This means a slight change in consumer characteristics generate a big wave in the company’s profit margin. Cushion against such threats led A&F to create a wide range of merchandise in the clothing apparel, bringing stylish pattern, which leads to a wide choice range for the consumers. Marketing communication Dynamism in the retail markets dictate the market communication that a business would adapts. The modern technology has influenced promotion methods that many firms use to promote their products in the market. A& F promotes its products through public billboards, which displays the latest trends, or fashions it has in its stores (Hephaestus Books, 2011:123). The firm uses its employees in London or United States to acts as the models in the billboard. The design of its promotion creates an illusion to its customers through portraying the influence of the fashion on individuals. Features of promotion are important because they define what the company stands for in the society. For instance, A& F uses stylish features in its promotion to create the effects of fashion to the viewers. The intensity of promotional activities depends on the fashions that the company intends to introduce in the market. For example, in 2000, the firm introduced leather handbag promotion’s samples while heavily promoting Premium Jeans (Saner, 2012:1). The idea was to influence its consumers to buy Premium Jeans, which was trending in the marketing. Firms use samples during promotion to influence their consumers to buy. The effectiveness of any promotion exercise that a firm employs is evident through the response of consumers. The cost of promotion, target population determines the choice that a company would take. A & F promote their products in urban centres where they have concentrated their stores (Hephaestus Books. 2011:113). The knowledge of the target population is very useful because it reduces the cost that the firm would incur in promoting its products. A & F promotion pattern observes the influence of its competitors such as Gap Inc, which are also leading stores in the apparel industry. The firm publishes its own magazines and catalogue, which concentrates on lifestyles trends (Saner, 2012:1). The culture it covers in its promotional magazines includes sex culture, pop culture, and music. The communication that consumers receive from promotional events influences their psychological abilities about a given product of the firm. The firm uses music iconic attires to influence the consumers. The culture of the target age range seems to incline on artistic lifestyle. The casualness of the attires appears in most catalogues and photographs, which the company intends to use for its promotional activities. The company’s photographer has remarked that the concern of the company’s promotional photographs is to create the aroma of sexiness. The hallmark of the promotional activities of the company relies on the translation of the activities into an increase in market share. The firm has been able to attain this attribute because it has a large market share in its market locations. The firm does provocative advertising (Hephaestus Books, 2011:123), which is evident in its Christmas catalogues. Holidays are potential days for making large sales. The Christmas holiday is one of the seasons, which attract large sale of the company’s product. The stylish advertising which the firm employs during this period is through its catalogues which its sales to the public. Emotional evocation through advertisement is very critical. Communication is evident when the information presented influences the activity of the intended recipient. This idea has been beneficial to the firm because of the choices it makes when choosing promotion method. Store layout, design and visual merchandising Store layout is a factor that retail market cannot afford to ignore. Market analysts have noted that psychological influence created by the layout of the store would influence customers of the store (Plunkett, 2008:41). The firm has recognised the influenced created by arrangement of the store in a stylish manner. Since the firm is dealing in wide merchandise products, it has arranged shelves for a wide range of product according colours, shape, sizes, latest trending among other influential aspects. The layout of the store has comfortable armchairs whose design influence customers who visits the stores. The comfort ability of the armchair is a reflection of the stylish products that it offers to its consumers. The walls of the stores have large photographs, which advertise the latest trends in the market. Consumers demonstrate interest whenever they look at photographs within the stores. This layout intends to influence the young age (18 to 22) who show interest in stylish photographs. The store has unique features especially dim light. The influence of light within the store is especially evident whenever an individual gets into the store with bright clothes. The uniqueness of the light setting within the store influences the customers of the store by retaining them to experience the same whenever they go shopping. The store has loud music, which energizes the age gap that it intends to influence (Hephaestus Books, 2011:125). The music they play responds to the features that the store seek to satisfy in the market. For instance, the store promotes the music culture by producing iconic attires in the music industry. Last layout for the store that is unique is the scent, which is quite pronounced. Visitors of the store have remarked that the scent of the store does not only appeal to many consumers, but also influences their future visit into the store (Saner, 2012:1). Customer attraction techniques are very essential for business growth. The culture of the business customer influences the attraction method that the firm would apply. Visual merchandising for A & F concentrates of the target population. Dim light and music are features that the target population embraces in the society. In most cases, the target age would describe the layout of their best shopping stores by describing the ambience of the store. Customer service and facilitating services Customer service is a crucial feature that influences customer behaviour against a given product. Firms with consistent customers offer services that satisfy the needs of the customers. Retention of a customer demonstrates satisfaction to the services that the business offers. A & F have developed internet reporting services which enables the firm to respond to complains given by the customers (Funding Universe, 2012:1). The internet line offers quick response because it allows the business to protect the interest of the customers as well as offering the best service in the market. The company face book enables the firm to realise the criticism raised by the consumers. The effectiveness of the service offered to a client determines the satisfaction level. The company employees offer courteous services to the clients and visitors who make inquiry at the firm. The elaborate armchair in the customer desks offers opportunity to the firm’s client to relax while waiting for services delivered by the firm. Efficiency is another area that the business has addressed. Many customers consider time spent in transactions. Delay in completing company transaction dissuades the customers from visiting the firm’s premises (Hephaestus Books. 2011:112). Market analysts believe a single customer lost or dissatisfied would complain about the ineffectiveness of the firm leading to lose of more customers. The response given to customers complains is another factor that contributes to customer dissatisfaction. The firm has observed this trend and has established internet response software that helps it to offer instant answers to their clients as well as handling issues of clients who report to the shops. The idea behind the company’s customer service is the ability to respond effectively to the customers demand. Innovation and product branding are aspects that the firm cannot afford to ignore. The dynamism of the market dictates quick response to consumer demands or risk perishing. Facilitating services such as product delivery influences the satisfaction of the consumers. The firm ensures that its logistic department delivers product at the right time. Delays are signs of frustration to consumers. The impact of delays is evident when customers decline to show interest of visiting the store premises. The object of delivering quality and timely services is to win customers to buy product of the business. Store formats and locations A&F has located its stores in major urban centres (Lamb, et.al. 2011:223). Location influences the number of customer for the business as well as the ability of the firm to access auxiliary services. For instant, A&F store in Warwick serves the interest of dwellers in Warwick. The strategy employed by the firm to choice its location include consideration of target population. The population of the location define the sales that the firm is able to achieve. Urban centres have a large concentration of young people because of activities that occur in the urban set up. The firm considered factors such as stylish of the buildings where it hosts its stores. Consumers respond to beautiful sceneries buying attending or buying products from such joints. The physical appearance of the stores seems to be similar in UK and other outlets in the US. The choice of the store format largely depends on the culture of the people. The firm has noticed similarity in culture for its target customer in United States and United Kingdom (Funding Universe, 2012:1). This has contributed to similarity in store format. Store format is very crucial because it influences the identity of the store to the consumer. The woodcarvings of the stores door are an identity that the firm uses to market itself. Customers like identifying their shops using some features. For example, the brand Abercrombie has a logo of an animal, which the store uses as its identity. Clients looking for the shop find it easy to locate the firms’ premises because they are able to identity the format of the shops among other shops. Confusion of identity may make a retail firm to lose its customers because of failure to trace the primes. Pricing strategy and tactics Pricing strategy of business dictates the business profit margin, rate of stock turnover, number of clients the business would receive and viability of the firm in the market (Lamb, 2011:230). Firms with effective pricing strategy are able to make large sales, large profit margin as well as retaining the customers. The firm has to balance between attractive prices, which influences customer retention capability, and profit margin. Economic viability of the firm depends on profit margins. Critics have observed that high prices may influence consumers to look for other competitive retailers (Plunkett, 2008:41).. However, the challenge of the firm is how to create competitive prices, which are affordable to many consumers because of lifespan of the products. Fashion products perish fast in the market because of the preference that the community or the target market would give to the product. The consumers of A & F portray some inclination to fashion trend that the firm cannot afford to ignore. This means that pricing must cater for the demands of the consumers and relate to fashion. Failure to observe the above features, the business might not command a large market share. Abercrombie & Fitch pricing strategy is unique because they sell some of their merchandise at new designer’s price. A review on their pricing strategy indicated that prices of handbags fell close to designer’s prices while clothing apparels had a wide range of prices (Lamb, et.al. 2011:233). The wide range observed in clothing apparels help the business to offset large margins created by new designer’s prices it employees in other products. The tactics influences customers who have come buy clothing apparels to buy handbags. The overall prices would create a competitive margin for the business. Another observable pricing strategy that the business employs is pricing of the products according to the latest fashion (Funding Universe. 2012:1). The firm introduces offer when it intends to clear its stocks. For instance, whenever the business intends to introduce new fashion in the market, it would clear the old stock by reducing the prices. The attitude enables the firm to compete with other firms trading in similar products. The business also changes its pricing with seasons. Summer attracts large sales in sports wear and swimming wear. A & F uses such opportunities to introduce new fashion trends as well as changing the prices. The tactic employed by the firm to introduce changes in prices during festive seasons help it to cushion against incurring loses during low seasons. Consumer culture is factor that influences pricing strategy. For instance, consumptions of products, which have latest fashions in the market, make the firm to wave its prices whenever the taste of a given fashion begins to change. Critics have observed that the firms, which respond effectively to fashion trends, are able to maintain the profit margin or increase. The idea is to create a price, which responds to the demand characteristics. Conclusion Abercrombie & Fitch retail marketing plan has concentrated within a given market niche. The merchandise for the firm has a wide range of assortment, which create a wide variety of choice to the consumers. The market communication employed by the firm includes creation of company magazine, which displays the company products, catalogues and billboards. The design of the stores portray unique characteristic such as scents, dim light, loud music that the firm uses to lure its clients. The formats for the stores are similar across the entire firm’s outlet. The firm uses its target consumers to influence the location of its stores. Currently, the target age of the store dictates the location of the retail stores in major cities. The pricing strategy has various biases, which intends to influence buying of a given product at a given time. The tactic changes with a change in fashion trend or festive seasons. Bibliography Bhalla, S. and Anuraag, S. 2010. Visual Merchandising. New Delhi: Tata McGraw-Hill Education. Dunne, M. P. et.al. 2010. Retailing. New York: Cengage Learning. Funding Universe. 2012. Abercrombie & Fitch Co. Available from http://www.fundinguniverse.com/company-histories/Abercrombie-amp;-Fitch-Co-Company-History.html [Accessed 4 May 2012] Hephaestus Books. 2011. Articles on Abercrombie & Fitch, Including: Limited Brands, Bruce Weber (Photographer), Ruehl No.925, A&f Quarterly, Abercrombie Kids, Ezra Fitch, David T. Abercrombie, Mike Jeffries (CEO), Hollister Co., Why I Hate Abercrombie and Fitch. New York: Hephaestus Books. Lamb, W. C. et.al. 2011. MKTG 5. New York: Cengege Learning. Plunkett, W. J. 2008. Plunkett's Retail Industry Almanac 2009 (E-Book): Retail Industry Market Research, Statistics, Trends and Leading Companies. New York: Plunkett Research, Ltd. Saner, E. 2012. Abercrombie & Fitch: for beautiful people only. Available from http://www.guardian.co.uk/fashion/2012/apr/28/abercrombie-fitch-savile-row [Accessed on 4 May 2012] Read More