Category: Abercrombie & Fitch

Demographics and technology are essential factors to be considered when aligning business strategies. Demographics define a given populations socio-economic characteristics to determine product preferences and buyers purchasing behaviors. The demographic analysis helps a company build a sustainable relationship with its customers. They can assist in deciding targeted markets and products needed by customers. Factors such as pricing, packaging, and service deliveries are affected by demographics. Sales are likely to increase when customers are aligned with the company dynamics (Koehler, 2017). Demographics analyze age differences, gender variables, ethnicity, and geographical location of a business.

The company of focus in this category is Abercrombie & Fitch, an American lifestyle business that sells casual wear. The companies headquarter located in New Albany, Ohio, and operates a total of one thousand and forty-nine stores. Abercrombie & Fitch Company is made of people who come from different and diverse demographic origins. The company forms a total of 50.6 % of members who are female and the rest male. Ethnic minorities add up to 42.1% from top staff members analysis (Koehler, 2017). Many changes have occurred in the company, from top leadership positions to interact with the customers. Abercrombie & Fitch Company has introduced a new communication department to be in-charge of receiving urgent information.

The communication department is entrusted with the duty to ensure customers get current and valid information on products changes. The company has experienced external demographic changes such as customers preferences and tastes for the goods. Meeting the demands of the customers in the market remains Abercrombie & Fitch Companys primary goal. Making products available for customers and offering effective services has increased sales (Koehler, 2017). To ensure consistency in interacting with potential customers, the sales and marketing department of Abercrombie & Fitch Company has stayed flexible in the market. Commitment, communication, respect, and integrity are the key pillars that keep the company at hand with current market changes.

Technological factors affect how the company interacts with customers. Technology enables the smooth running of activities and boosts connections among the staff members. Adopting an effective information technology enables Abercrombie and Fitch Company to monitor sales of goods, changes in customers data. The use of information technology helps the company predicts current trends in doing business (Koehler, 2017). Changing dynamics at the organizational levels are thoroughly analyzed by the use of information technology.

Right technology boosts sales in the market as customers interact freely and readily with the company. More interaction with customers maintains the general companys competitive advantage in the market. Changes in technology affect the sales of products from the company. More people are reached as a result of adopting effective information technology. The business can address customers needs using effective information technology (Koehler, 2017). More engagement with buyers prevents stiff competition from neighboring companies selling the same products.

In conclusion, demographic and technological factors are vital for any company in the market. Demographic variables must be analyzed keenly by the companys head and make critical decisions. The same scenario applies to technological factors of doing business. Customers are the final determinants of a companys survival in the market. They must be treated with respect and love.

Reference

Koehler, I. (2017). Reputation management: A case study of Abercrombie & Fitch. Journal of Undergraduate Research in Communications, 8(1), 66-74.

Overview: Ad Description

Figure 1 shows a grey, white and black advert comprising of a plus-sized woman lying down on her right side. Her right arm is resting on the ground and folded to support her head. The woman has tilted her head to make her seem like she is looking forward and diagonally.

She has also let her short hair free to fall on her back. In terms of dressing, she has a grey T-shirt with the ‘Abercrombie & Fitch’ text on her bust area and black fitting shorts, which reveal her thighs. In addition, she has body art on her right arm, upper left arm and just above her knees. The white text, “Attractive & Fat” is placed just above the woman with the letter “F” partially hidden by the woman’s thighs.

Although this is a denotative meaning of the advert, advertisements are built around semiotics to help persuade consumers’ to purchase products while using the societal culture as leverage. Therefore, they have connotative meaning. With this in mind, this paper critically deconstructs the advert to reveal its connotative meaning.

Obvious Message

The obvious message or intent of the advert is trying to persuade plus-sized women in the western, liberal world into believing that Abercrombie & Fitch brand of clothing is suitable for plus-sized women because the company’s clothes makes them feel attractive. The “Abercrombie & Fitch” text on the woman’s bust area is a sign that the woman is modeling for the company’s clothes. In the fashion industry, manufacturing an image in advertisement seeks to persuade buyers to change their habits.

Therefore, to reach to and persuade plus-sized women to accept Abercrombie & Fitch clothes, the advert uses or ‘manufacturers’ a plus-sized woman who is a model of the targeted population. This is in addition to dressing the woman in Abercrombie & Fitch clothes that are seemingly attractive, liberating or ‘cool’ by societal standards to form an ideal plus-sized woman. More so, the ad creators focus on the target group insecurities to persuade them to purchase clothes.

Ideally, the society does not consider plus-sized women as attractive. This makes them have low-self esteem and feel unattractive. The dress code of the woman in the ad exhibits an attractive person full of confidence. Markedly, although plus-sized, she is not afraid to wear clothes that show off her body, including her thighs and arms. In addition, her non-verbal codes show confidence. She is resting comfortably on the ground with her chin up.

This makes plus-sized women believe that with Abercrombie & Fitch clothes, they can deal with their weaknesses, feel attractive and confident. Convincingly, with the phrase “attractive & Fat” written in white color to symbolize a new beginning, Abercrombie & Fitch is making a statement that their clothes will change the plus-sized women’s lives by helping them deal with their weaknesses.

Hidden Message

Critics argue that adverts create false expectations and so is the revelation of the hidden meaning of this advert. Although the advert seems to inform or insinuate to the plus-sized women that Abercrombie & Fitch clothes will help them deal with their weaknesses, the hidden meaning reveals otherwise. The hidden meaning is that the clothes that Abercrombie & Fitch Company is selling cannot make plus-sized women become confident, attractive or improve on their self-esteem.

This is because these three traits come through being intelligent, practical and mature enough to discern societal expectations. In simple terms, the three traits are nurtured from within by controlling external influences and knowing what one stands for. This ensures that a person, whether plus-sized or not is confident and has a high self-esteem. These two traits make a person feel attractive.

The hidden message is derived from the color code, particularly the permissive grey color. In the western world and most societies, grey symbolizes intelligence. Being emotionless and motionless, grey is stable and solid with a sense of composure and calm that offers relief from the chaotic world. Grey is conservative and elegant, but not glamorous. Grey is practical, a color of responsibility and maturity due to its association with grey hair in old age.

It never seeks attention, but stays toned down and safe. The extensive use of the grey color even on the woman’s skin creates an association between the color and the message that the ad passes across. This makes it easy to connect the symbolic meaning of the color to the actual message to reveal the hidden meaning of the advert.

Therefore, being intelligent, practical and staying toned down or controlling external influences helps plus-sized women to nurture a high self-esteem and confidence from within, not the Abercrombie & Fitch clothes.

Conclusion: Social and Cultural Relevance

The connection between the obvious and hidden meaning and the ad is derived from the advertisement’s social and cultural relevance. The advert creators are torn between persuading the target audience to attain advertisement effects and informing them as expected by the societal culture. The society knows that advertisements evoke false expectations and creates unrealistic role models. Therefore, there is a belief that advertisements should seek to inform.

To avoid compromising on the effect of the advertisement, the designers inform the target audience in a subtle or hidden way. This becomes a defense mechanism against societal expectations in case people start criticizing the advert. The advert presents a liberal western and plus-sized woman with the probable benefits derived from Abercrombie & Fitch clothes. In addition, as the societal culture expects, it uses the grey color to inform that the attributes they seek are nurtured from within, not by the clothes they wear.

Visiting the website of J.Crew and Banana republic, it seems that both of the companies are offering direct competition to Abercrombie & Fitch but there are yet significant differences that are visible. It seems that Abercrombie & Fitch and J.Crew are positioning themselves according to the weather conditions whereas Banana republic is targeting and positioning regardless of weather conditions, anyone who thinks that the clothes are suitable can walk in and buy them. A common strategy used by all three companies is providing the internet surfers an opportunity to order online via websites, while there is another apparent difference between the J.Crew and Abercrombie & Fitch accompanied by Banana republic, the difference is regarding the jewelry being offered by Banana republic and Abercrombie & Fitch which is not available at J.Crew. Also, a major difference is that J.Crew and Banana republic are not specifically targeting the kids which could make the huge difference as it made in the case of Abercrombie & Fitch. Nevertheless, all three are direct competitors to each other especially if they are tested through their online service which sidelines the number of stores they have, the revenue they are generating, and many small issues.

Although the stores are doing fine with the current strategy it seems that yet something could be done to have improved sales and an enhanced target audience. The two stores namely J.Crew and the Banana republic could target kids while keep on targeting their parents as in this case the initial buyer would be the parents but in very few cases it could be kids directly. They could further segment the market into under 12, under 15, and under 18 in this category. It is all about providing the kids with the motivation that the stores are specifically serving them apart from others, while it may have few problems that we’ll discuss in the last question. “Competitors contend with each other to establish and control linkages between the distinguishing attributes of their products and one or more personal values or goals that, in turn, are associated with personally relevant psychological or sociological rewards or advantages” (Olson, Reynolds 217: 2001).

*The issue, in this case, is not directly influencing the stores such as Sears and JCPenny because for such stores the initial sale is not directly being generated through clothing but nonetheless the business can get affected because of such competition given by Abercrombie & Fitch. Mostly, the people who visit big stores such as Sears have to buy other stuff which might be grocery or some other useful everyday item, as long as we are discussing the clothing, we have to keep in mind that the consumer behavior is different when it comes to such products. People prefer to go for buying clothing when they have enough time and they are not in rush, further they prefer to try clothes and identify if they suit them, only in such conditions should we expect a positive response from the buyer.

The stores such as Sears or JCPenny could target people willing to buy apparel through having an entirely different entrance and a direct one which could make the buyers avoid a whole lot of walking into the store and then reaching the place where to have clothes from. This could easily bring the buyer and perhaps motivate him/her to make a purchase from the very same store he/she would have avoided otherwise. The other strategies could include promotional efforts which could force parents to leave their children at the clothing department within the store while they are buying grocery so that they do not get irritated by their children while they are shopping, this requires a lot of surety that could be provided to parents regarding their children. The discounts and coupons could also help the department stores achieve any such goals regarding the sale of apparel, such coupons could be distributed at various schools and colleges directly targeting the kids and the youth.

*The Hottopic although seems to be very much competitive to Abercrombie & Fitch but in actuality, there are great differences. Hottopic is a bit freaky in a way that it seems that it is targeting freaks in the society which its name even suggests and exploring more it is revealed that it is emphasizing the girls of the modern society with minor emphasis on the boys. Unlike Abercrombie & Fitch, Hottopic is not targeting the kids in the society, however, Hottopic is trying to bring every modern trend in view regardless of the weather conditions and what teenagers prefer. Hottopic is eventually targeting those people who are viewed slightly different in the society, perhaps such people are willing to show that they are very over conscious about the trends in the society and they are more fashionable than the ordinary people whereas the target audience of Abercrombie & Fitch is very much conscious about how the society views them and also it is following the fashion trends that are supported by the weather conditions.

At Abercrombie & Fitch, it is relevant to say that people (target audience) are conscious and have a normal perception and view on life, they have a respectable image, and whatever they buy or wear suits their personality whereas at Hottopic, people are having a different view on life and they want others to view them the way they are viewing themselves which at times is unacceptable, they have relatively a different image which differentiates them from the normal society and they are involved in fashion regardless of what others think of it. The buyer behavior for people targeted by Hottopic is limited to the satisfaction of their psychological needs while they might have different social and self-esteem needs. The demographical segmentation of both the stores seems to be more or less the same but a huge difference can be perceived when it comes to other classifications. Winter said in 1984, “In extreme cases, segmentation becomes an end unto itself rather than a marketing tool. Segmentation efforts further suffer from a lack of casual relations between the defining characteristics of a segment and the behaviors of interest” (Olson, Reynolds 284: 2001).

*Although the revenue is suggesting that Abercrombie & Fitch is doing exceptionally well in the business but these days everything is possible and there should be proper contingency planning. It seems that the company is targeting the consumers who are very free and prefer to implement their ideas on their bodies which are acceptable in the entire society but at the same time, there could be a change in the tastes of consumers because the media is getting stronger and stronger and so the changes take place rapidly in the fashion industry, nonetheless Abercrombie & Fitch could be very competitive as it could expand the target audience list and can cater even people who are pertaining to the lower class than those who are having middle or upper class. The company could bring the discount plan and the coupon plan to target those people representing lower class which means that the company would not have to have a separate production but the company could provide slightly outdated fashion to those who cannot afford the higher prices, but again this could only and only be used as a contingency plan since at this moment it could be risky to target the lower class because this would for sure ruin the Abercrombie & Fitch reputation among its current target audience. Therefore it is possible for Abercrombie & Fitch to remain popular among the younger generation for years but some compromising situation is possible in selecting the target audience the company would be serving.

*Firstly, it is vital to know that we cannot really count the kids’ section as a diversification because the company’s initial purpose is fashion, as long as its fashion and clothing, it could be said that the company has expanded its target segments but it is not diversification. Yet there are advantages and disadvantages, the advantages may include the fact that by the year 2010, 34 million people between the ages of 12 and 19 are estimated which is quite a big amount and it can be very lucrative for Abercrombie & Fitch to target such people, also the marketing concepts predict that it would be free publicity and marketing of Abercrombie & Fitch as its clothing is very different and at times represents it as a well-known brand. The disadvantages can also be there, people who are above the age of 19 can think of the brand as something suitable to kids only or too immature people which could cost Abercrombie & Fitch some loss, in fact, this change in view could be very costly. It has been seen that most of the companies that are targeting only a particular segment are very well settled in the business, Levis has no clothing for kids and further, it only targets people who want to be in fashion and are young. Changing the segment could affect Levi’s reputation as young men would think as they are wearing a common brand worn by kids and hence there would be no differentiation left. However, it could be profitable on the company’s side while it could be very disappointing on the consumer’s side and young men and women would sooner be switching their brand. Implementing such a strategy could naturally shift and divert the attention of the target audience while the company could have a new target audience in its targeted segment but at the cost of another segment which is likely to suffer because of any such actions.

Reference

Olson J.C. &Reynolds T.J. (2001), “Understanding Consumer Decision Making: The Means-End Approach to Marketing and Advertising Strategy”, Mawah, NJ: Lawrence Erlbaum Associates.

Introduction

The global economic crisis negatively affected the current situation in the fashion industry. The primary objective that has been met was a chance to change the customer’s habits of the people. As a result of this tendency, all the consumers showed the tendency to reduce their purchasing power. Today, this tendency is true even for the wealthiest group of world population. As a result of the deep changes, many consumers are quickly adapting to the demands of the new world. Many world brands are keeping a relatively low profile of their work.

Environmental threats

The decline in Trendy Apparel industry is reasoned by the customer’s unwillingness to buy goods from the leading brands. The crisis is reasoned by the fact that cheaper items have conquered a larger chunk of the mass market. As a result of these changes, the young people with a low-income background show the tendency to spend less money on designer labels than they did during the previous times. Rising unemployment, credit squeeze and plummeting home budgets negatively affected the fashion industry. It means that the companies are not very quick to announcing their economic figures. As a result of the world crisis, many consumers decided to toughen their budget. As a result of the crisis, the customers decided to limit their spending on such goods as apparels and fashion accessories. The impending changes pushed many companies to search for new ways of solving their credit problems (Armstrong and Kotler 54).

Opportunities of A&F

During the recent times, A&F made a strategic decision to improve the all-round customer experience. The improvement of customer expertise helped the company to find a solution to the problems of quick access to delivery and collection of information. The customers were also given a chance to arrange ad hoc deliveries and collections with the drivers. The specific thing about the new methods of service delivery is that it enables the customers to arrange matters while the products remain to be in the process of delivery. Taking this measure enables the customers to handle customer requests at short notice. The main objective for which the system has been designed is meeting the needs of ‘hub and spoke’ business model. The main feature of the system is that the drivers have the ability to log delivery information on consignments. Information logging is usually accomplished with the help pf Symbol’s handheld computer (Dobson and Starkey 22).

Organizational strengths

The use of strategic approach can support the process of communications that take place within the system. As for the process of parcel barcodes, this process enables people to capture the recipient’s signature digitally confirms proof of delivery. Technological innovations and creativity in production can be regarded as business philosophy of A&F. Unique technology management employed by Pepper’s is aimed to coordinate production process with all levels of the organizational structure including their interaction and performance. The balance of authority has undoubtedly shifted to traditional management who now has more selection over how it conducts relations with their workers and process. Innovation in production technologies and computerized system of supply chain is the main opportunity for A&F. It needs innovative assembly lines in order to increase volumes of sales, and storage capacity. Internet is another toll which can help A&F to reach its potential buyers without additional spending on promotion and advertising (Drejer 87).

Weaknesses

Many big names in the Trendy Apparel industry face the need to solve their financial problems. As a result of these changes many participants of the fashion market are facing huge problems. Many of the companies are marked by the negative attitude to fashion industry. This measure is taken in order to help companies to handle their finances (Drejer 132). The case of A&F shows that whether the firm provides, visualizing how value will be provided, how this will afford the firm a competitive advantage relative to its rivals, and constantly seeking to enhance the value concept, are critical to its continued success

Future direction

Just to summarize the main points that have been covered in this paper, I would like to say that the economic downturn has made competition for businesses really deep and hot. As a result of these changes some of the better apparel lines have proved to be discounted. A specific feature of the process is the soaring of prices. The decrease in sales pushed many companies to cut down their expenditures. Cutting down the price was widely criticized by the owners of luxury business since this measure threatens to reduce a luxury brand’s reputation. The problem may bring catastrophic results in the long run. Rethinking the company’s strategy seems to be the only way out of the problem. Taking this measure can help the companies to improve their performance at the market. According to the recent research results, sales performances of the group are mixed across regions. Effective structure and technological solutions applied in value chain process allow companies to compete on the global scale and deliver superior quality of products and services. In product businesses conceptualization is indispensable to achieving high levels of value.

References

Armstrong, Gary., Kotler, Philip. Principles of Marketing. Prentice Hall; 11th edition, 2005.

Dobson, Paul., Starkey, Ken. The Strategic Management: Issues and Cases. Blackwell Publishing, 2004.

Drejer, Anders. Strategic Management and Core Competencies: Theory and Application. Quorum Books, 2002.

Demographics and technology are essential factors to be considered when aligning business strategies. Demographics define a given population’s socio-economic characteristics to determine product preferences and buyers’ purchasing behaviors. The demographic analysis helps a company build a sustainable relationship with its customers. They can assist in deciding targeted markets and products needed by customers. Factors such as pricing, packaging, and service deliveries are affected by demographics. Sales are likely to increase when customers are aligned with the company dynamics (Koehler, 2017). Demographics analyze age differences, gender variables, ethnicity, and geographical location of a business.

The company of focus in this category is Abercrombie & Fitch, an American lifestyle business that sells casual wear. The companies headquarter located in New Albany, Ohio, and operates a total of one thousand and forty-nine stores. Abercrombie & Fitch Company is made of people who come from different and diverse demographic origins. The company forms a total of 50.6 % of members who are female and the rest male. Ethnic minorities add up to 42.1% from top staff members’ analysis (Koehler, 2017). Many changes have occurred in the company, from top leadership positions to interact with the customers. Abercrombie & Fitch Company has introduced a new communication department to be in-charge of receiving urgent information.

The communication department is entrusted with the duty to ensure customers get current and valid information on products’ changes. The company has experienced external demographic changes such as customers’ preferences and tastes for the goods. Meeting the demands of the customers in the market remains Abercrombie & Fitch Company’s primary goal. Making products available for customers and offering effective services has increased sales (Koehler, 2017). To ensure consistency in interacting with potential customers, the sales and marketing department of Abercrombie & Fitch Company has stayed flexible in the market. Commitment, communication, respect, and integrity are the key pillars that keep the company at hand with current market changes.

Technological factors affect how the company interacts with customers. Technology enables the smooth running of activities and boosts connections among the staff members. Adopting an effective information technology enables Abercrombie and Fitch Company to monitor sales of goods, changes in customers’ data. The use of information technology helps the company predicts current trends in doing business (Koehler, 2017). Changing dynamics at the organizational levels are thoroughly analyzed by the use of information technology.

Right technology boosts sales in the market as customers interact freely and readily with the company. More interaction with customers maintains the general company’s competitive advantage in the market. Changes in technology affect the sales of products from the company. More people are reached as a result of adopting effective information technology. The business can address customers’ needs using effective information technology (Koehler, 2017). More engagement with buyers prevents stiff competition from neighboring companies selling the same products.

In conclusion, demographic and technological factors are vital for any company in the market. Demographic variables must be analyzed keenly by the company’s head and make critical decisions. The same scenario applies to technological factors of doing business. Customers are the final determinants of a company’s survival in the market. They must be treated with respect and love.

Reference

Koehler, I. (2017). Reputation management: A case study of Abercrombie & Fitch. Journal of Undergraduate Research in Communications, 8(1), 66-74.