Abercrombie Case Study Flashcards
1
Q
Abercrombie was originally founded in…
A
- 1898 by David T. Abercrombie in Manhattan
- Originally targeted hunters and fisherman for outdoor gear
2
Q
In 1998 Abercrombie…
A
- Bought by The Limited Inc.
- Became soley apparel based
3
Q
3 Flagship stores
A
Abercrombie (middle schoolers)
Hollister (high school)
A & F (college)
4
Q
New CEO after Abercrombie lost 25 million $ in 1992
A
Michael Jefferies, who had a new clear vision and strategic plan to establish a segmented marketing strategy
5
Q
Jefferie’s vision
A
- Targeting cool, sexy younger consumers using sex appeal
- “The Abercrombie Affect”, very successful due to its sense of exclusivity
- Also faced criticism and developed a negative reputation among some
6
Q
Controversial aspects
A
- Didn’t offer size XL and up for women, but were available for men
(largest women pant size was 10 while the average women pant size is 12-14) - Standards of beauty unrealistic and promoted unhealthy expectations
- Jeffries criticized for the way A&F negatively contributed to issues of body image and gender stereotypes
- Mandatory for employees to maintain the standards they expected of customers including regulations on employees hair, makeup, etc.
7
Q
Summer 2013
A
- Sales down 10%, women’s apparel sales down 30%
- Move to boycott the A&F brand
8
Q
Why many marketers support the idea that exclusivity in brands is a powerful thing
A
- Targeting a broader customer base may dilute the prestige of the A&F brand
- Marketers in many industries know that it is often easier and more cost effective to retain loyal customers then to target new ones outside of the target market
*H&M featured larger-sized mannequins to display lingerie and was criticized for promoting obesity
9
Q
Things Abercrombie could do
A
- Change marketing approach to less sexualized
-Add more sizes, expand market
10
Q
What are problems with the brand
A
Discrimination against types of people
Discrimination against employees
Not keeping up with the changing of the times
Didn’t want to be “vanilla” (aka non controversial)
