Abercrombie and Fitch Marketing - Essay Example

Introduction to Marketing Business Table of Contents Table of Contents 2 Task Five: Marketing Research 3 Task Six: Strategies 4 Task Seven: Segmentation 6 8 Task Eight: Marketing Mix 8 Task Nine: Control 8 References 10 Task Five: Marketing Research To study a company’s consumers and other competitors who directly and indirectly affect the company, market research is done (Iman, 2006). Marketing research helps in understanding the best possible ways to connect a consumer and a product (Wisegeek, 2013). Marketing research can be categorized into consumer research and B2B (business to business) research. Consumer research is basically to find out the purchasing habits of the consumers, which in turn can be evaluated through sales volume, conducting surveys etc.B2B research basically evaluates how business sells products and services. To do marketing research, Abercrombie and Fitch can conduct the following methods, Primary Research It is basically collection of data by conducting market surveys, questionnaire, focus group interviews and telephonic interviews. Sampling techniques and statistical tools will be a prerequisite for Abercrombie and Fitch. Secondary Research Secondary data is basically library research, wherein data already present is used for references and analysis. It includes company reports, annual reports, articles, government reports etc. These are readily available and come in handy during research. Quantitative Research It uses statistical and mathematical techniques. Qualitative Research Qualitative Research involves observational studies to find out the attitude and behaviour of target audiences. Sampling Sampling is essentially breaking down a target group into small clusters of homogeneous groups for the ease in researching. Task Six: Strategies a) Abercrombie and Fitch fall in the category of apparels and accessories. It is a lifestyle and retail catering sector for men, women and kids in the age group of 14-22. The audience from this category looks for a comfortable and casual clothing line which is trendy and stylish and at the same time flaunts a luxurious lifestyle (Plunkett, 2008). The consumer buying decision process is essentially the stages a consumer goes through while making choices regarding which products and services to buy and use (Ferrell and Hartline, 2010; Dibb and Simkin, 2008).There are five steps in the identification process of consumer purchase behaviour (Rohan Academic Computing, 2011). The marketing research done above will help in evaluating the buying process of the customers targeted by Abercrombie and Fitch. Need Recognition The consumer who is a growing teenager or a young adult wants to dress like his/her peers in schools and colleges and want to look trendy and fashionable. Information search For repeat purchasers, the experience with the brand will decide their choice of sticking to the brand or looking for something new. For first time buyers, marketing of the brand such as website, promotional activities, advertising will decide how much time and effort the consumer is going to put in that particular brand. Choice of Alternatives Review of alternative brands such as American Eagle, Tommy Hilfiger and other brands which fall into the same category. Evaluation of Alternatives The consumer will look into what other brands are offering. The style, latest trends, design, availability, discounts and sale offers are few of the factors which will influence the decision process heavily. Decision Once the consumer has decided to buy Abercrombie and Fitch brand, this decision can be influenced by conditions such as store atmosphere/website ease. Abercrombie and Fitch have to make sure that the consumer gets a pleasant experience in shopping till the last point of purchase Post Purchase Behaviour Here the consumer uses and experiences the product. The quality and experience will result in repeat purchase and brand loyalty. b) Ansoff’s Matrix To determine the product and market growth strategy, business houses employ a tool known as Ansoff matrix (Bachmeier, 2009). It explains an organization’s attempts to grow depending on the product portfolio and the market in which the business is serving. Abercrombie and Fitch’s success in the apparel category, which is targeted to an age group of 14-25, is possible only through a proper marketing strategy. Existing Markets New Markets Existing Products Market Penetration Marketing of Denims with more penetrative advertising strategies. Market development Launching more number of stores in untapped market. New Products Product Development Sunglasses Watches Diversification Entering into a completely new demographic segment, catering to age group of 25-40. c) Recommended Strategy Since online marketing is gaining popularity and acceptance, Abercrombie & Fitch should tap the online and social media strategies such as online marketing, interactive sessions, online promotions etc., to gain an edge over other companies (Boone and Kurtz, 2009). It should also start spending more on media resources such as TV, radio and magazines for advertisement and promotions. Task Seven: Segmentation a) Market segmentation basically aims at dividing the total market for a product or service into smaller units which are homogeneous. Segmentation divides the consumers into categories with homogeneous needs and demands. This helps the marketer to target the consumers with best suited marketing activities relevant to each group. For achieving the pre-defined objectives, the foremost criteria to segment the market should be on the basis of demographic segmentation. The specific consumer group would be men, women and children falling under the age group of 14-25. The fundamental reason behind targeting this group is that Abercrombie & Fitch has mostly relied on image and appeal, and strategic pricing to attract those who are brand conscious and not those who are ready to go on with any kind of clothing. b) Positioning ` Product Positioning Map to show positioning of Abercrombie and Fitch, against competitors in the 14-25 age groups in the Apparel Market. The product positioning map shows the market position of Abercrombie and Fitch with respect to the other brands of the same category. Brands such as GAP and Aeropostale fall in high price band, but provide with varieties in their apparel line backed penetrative marketing strategy. Abercrombie and Fitch has been strategically placed in the medium-high priced category providing a wide range of choices for target customers who can afford a luxury living. Task Eight: Marketing Mix Marketing mix is the essential combination of the elements which build up the marketing process (MSU, n.d.). Product The products of Abercrombie & Fitch essentially means comfortable and casual clothing, which gives a stylish and trendy look and creates a sense of a luxurious lifestyle. This is the main concept behind the product line. Abercrombie and Fitch’s product line serves three categories namely male, female and kids under the age group of 14-25. The products range from casual clothing, party wears sportswear to accessories and footwear. Apart from the apparels, it also serves in categories such as body care, footwear, skincare, perfumes and cologne. Place The company mostly caters through retail channels, which are primarily based in malls and big shopping complexes which is a prominent hang-out places for teenagers and young adults (Strategicminds, 2011). The company has also a strategically created website which is clean, attractive and extremely easy to navigate. Price The price structure is made in such a way that it offers luxury and casual clothing at a price which is high but not as expensive as the designer line of clothing. It helps the company to market its products to a broad range of social classes. Promotion Continuous promotional discounts and sales offer are one of the few activities carried on by the company to attract target market. Bold television advertisement as well as magazine and print ads help in strengthening the brand image which essentially goes in sync with the target group. They also conduct store promotions. Task Nine: Control Abercrombie & Fitch will observe and evaluate the difference between targeted and actual performances. Test marketing and demo marketing will keep a track on the popularity and acceptance of the product which is either to be launched in new market or existing market. There will be close monitoring of the products which are launched. To track the effectiveness of store promotions footfalls and sales figure will be regularly monitored. Apart from this, website acceptance and popularity can be checked through the flow of traffic to these websites. References Bachmeier, K., 2009. Analysis of Marketing Strategies Used by PepsiCo Based on Ansoffs Theory. Munich: GRIN Verlag. Boone, L. E., and Kurtz, D. L., 2009. Contemporary Marketing. 14th ed. Connecticut: Cengage Learning. Dibb, S., and Simkin, L., 2008. Marketing Planning: A Workbook for Marketing Managers. Connecticut: Cengage Learning. Ferrell, O. C., and Hartline, M. D., 2010. Marketing Strategy. 5th ed. Connecticut: Cengage Learning. Iman, A. H. M., 2006. Basic Aspects of Property Market Research. Kuala Lumpur: Penerbit UTM. MSU, No Date. Marketing. [online] Available at: [Accessed 04 April 2013]. Plunkett, J. W., 2008. Plunketts Apparel and Textiles Industry Almanac 2008: Apparel and Textiles Industry Market Research, Statistics, Trends and Leading Companies. Texas: Plunkett Research, Ltd. Rohan Academic Computing, 2011. Consumer Behaviour. [online] Available at: [Accessed 04 April 2013]. Strategicminds, 2011. Marketing at Abercrombie and Fitch. [online] Available at: [Accessed 04 April 2013]. Wisegeek, 2013. What is Marketing Research? [online] Available at: [Accessed 04 April 2013]. Read More