Abercrombie and Fitch - Essay Example

Abercrombie and Fitch: internal analysis Task: Introduction Abercrombie and Fitch is an American chain of stock exchange registered stores, which has its headquarters at New Albany, Ohio. It consists of the brands: Abercrombie and Fitch, Abercrombie, RUEHL and Hollister (Weber 2009, p. 3). It markets its luxurious casual merchandise: including high quality outfits, personal care items and foot-ware and accessories. It has numerous locations in the US. It, however, has other additional stores around the world and is expanding internationally at an extremely high pace (Griffin 2008, p.369). It markets men, women and children outfits.

The enterprise has kept itself on the limelight for its advertisement, philanthropy and profound involvement in numerous legal conflicts regarding clothing style, branding and employment activities. Product concept (core, actual and augmented product) The corporation designs high quality products that are durable, original in nature and innovative. Their products are additionally highly and properly engineered to meet the customer preferences and get an upper hand in the market in comparison with other similar companies.

The company concentrates on creating superior merchandise and develops them over time to appraise performance and quality, while evading marketing myopia. Abercrombie and Fitch thus produce coveted merchandise, each of its own special kind. With adeptly resourceful designers employed by the firm, the corporation is able to capture the desire of the purchasers who opt to choose their products based on its innovative nature. With such a groundbreaking product concept, their business transactions turn out positively.

Main products, sub-products and special services The chain of retail stores merchandises its products under two main divisions. These include ladies and men’s luxurious outfits. The major outfits for the men entail jeans, tops, sweatpants, pullovers, sweaters, outerwear, sleepwear and hoods. Other augmented products include cologne and body care. For the women, the main products are tops, jerseys, coats, jeans, sweatpants and pants. Their minor products include personal effects such as watches, colognes, accessories and body care.

Additionally, other augmented products for women are bras and panties, accessories and fragrance. All these goods are up to standard and therefore satisfy the purchasers’ needs. In the case of special services, they offer e-gift cards that can be redeemable at any Abercrombie and Fitch outlet. Shipment services are also offered t Abercrombie and Fitch considering the value of the products purchased. Pricing strategy Since the products are marketed at near luxury rates that are in direct conjunction with the demand curve/rate.

Their pricing is therefore influenced by the customer turnover. Their costs are variable. They rise or fall depending on the current state of finance. The prices range from $25 to $100 in its transactions. Such ingenious pricing strategy, through revision of prices, pushes the company ahead and makes it more affluent. Style and atmosphere in the shop The stylish black louvered exteriors create an ambient stylish decor that is attractive to the customers and which enhances purchases through rational and emotional dichotomy.

The welcoming atmosphere in their malls, characterized by playing good music, in conjunction with explicitly beautiful decorations, serves as a pull factor, which draws the attention of the customers. The workforce is vast and no stringent dress code measurers are imposed on the workforce (Weber 2009, p. 4). They, therefore, work under minimal pressure, enhancing their morale to uphold responsibility and the affiliate to another level in marketing. Tantalizing fragrance, that also pulls purchasers, is a characteristic of these stores.

Therefore, the deliberately strategic and exotic creates the perfect environment for its operations. The environment further aids in the promotion of the stores by the consumers through more buying. No shop signs (people follow the smell of Fitch and ask people with A&F bags) The chain of Abercrombie and Fitch stores is affluent due to several aspects that shape the brands identity. First, their retail stores shape the environment and the entire operating experience by its customers. Subtle, eye-catching displays, smartly dressed receptionists and salespersons and numerous beautiful decorations attract the customers to these stores (Walden & Thoms 2007, p.494-495). They also inculcate attributes, associated with their products.

The outfits display a mainstream, succinct youthful touch that aims at attracting the youth while taking care not to offend the older generation. This attracts customers and reduces criticisms. On ordering, the customers receive deliveries according to the amount merchandise, prior to taxation. These are thus, affordable rates. Therefore, their distribution strategy is indeed superb. Their conspicuous brand equity is quite subtle and preferred by many people. This aspect creates high levels of customer loyalty, which enhance its reputation and credibility.

How they promote their products, distribution channels In the management of their brand equity, the corporation inculcates intelligence into its customers through the use of experience providers. They include advertisements, which have a subtle touch to tantalize the purchasers. Secondly, they run call centers that invite inquiries from potential buyers, customer programs that accept customers’ suggestions and implement them brochures and periodicals that educate the customers on the different products an d their respective prices, websites that advertise their merchandise and host purchases trough e-commerce and also media advertisements.

They control the consumers’ behavior by: distributing their stores all over the world, establishing public policies, enhancing working environment and accelerating product development. Their distribution is driven adeptly by a distribution office that enhances toll free delivery to customers on orders (McBride 2005, p. 62). References Griffin, R 2010, management, Southwestern Cengage Learning, Florence. Mcbride, D 2005, why I hate Abercrombie and fitch: essays on race and sexuality, New York University Press, New York.

Michman, R & Mazze, E 2001, specialty retailers: marketing triumphs & blunders, greenwood publishing group, Westport. Walden, M & Thoms, P 2007, battleground: a-n, greenwood press, Westport. Weber, P 2009, Abercrombie and fitch-marketing analysis: a macro-environment and competitive audit, Druck and Binung, Nordestedt.