Chapter 8: Segmenting and Target Markets

Over the years Abercrombie & Fitch had one consistent target and generally catered to them. but over time as due to the change of many variables, Abercrombie has not only broadened their target market, but have segmented it as well. A good example would be Abercrombie's usage of geographic segmentation. For example here in New York City, Abercrombie & Fitch only has 2 stores, one of which is a flagship store the other a tier 1 store. Both those stores are very limited when it comes to the items they have on sale and the in store promotions that they have. Where as the stores located in New Jersey and Long Island fall lower on the companies totem poll. Not only do they carry a ton of sale items, but almost every week they have an inshore promotion offering at least 20% off all items Thats an example of geographic segmentation because the outer city target market widely varies from the inter city. A city as popular as New York brings in a lot of tourist, which definitely falls into Abercrombie's target market. Not only that, but over time the company has seen that the inner city target market is willing to spend more money which is why constant in store sales promotions and clearance sections aren't necessary.

With this holiday season Abercrombie has also shown examples of concentrated targeting strategy. For instance, since the company knows that the outer city target is the target looking for sale items and sales promotions, for black friday this year Abercrombie & Fitch are heavily promoting their stores in New Jersey and Long Island, even going as far as to open those store at midnight for the first time in company history. Although they would rather have people go to their stores to purchase full price items, they know that this is the time to largely promote to those who will purchase a lot of sale items an get them in the stores.

Chapter 11: Developing and Managing Products

A new product that Abercrombie & Fitch has released recently is their new outerwear introducing their new faux fur. Although this product may not seem new to Abercrombie's loyal consumers, it's a completely new design and new type of faux fur that they are using for their products. Outerwear featuring fax fur isn't exactly something new to the world, but Abercrombie's redesign of their original product is something thats new to the seller as well as their target market. When first marketing a new product, based on the textbook definition it's "a limited introduction of the product", which is almost the exact opposite of what Abercrombie & Fitch chose to do. Not only are they releasing their faux fur in their classic mens and women's outerwear, but also including it in some of their vests, hoodies as well as winter wear items such as hats and scarves. They have decided to go all out in their release of their new product. Usually the winter season brings out one or two faux fur lined/trimmed hoodies, but this season the company has released 16 different hoodies containing the brand's new faux fur in some way.

The massive release of the all of their new faux fur products, may actually do good for the company in a lot of ways. Their target market is traditionally men and women between 16 and 24, so if for example someone purchases a faux fur lined hoodie from Abercrombie, more than likely the word of how soft and comfortable the product is will pass on to more people in that target market causing them to ow also purchase something faux fur related from Abercrombie, whether it be a coat or a scarf. By changing up their original low quality faux fur design the company was being innovative and introducing something new, at least to their target market. By featuring the new product within so many of other products it makes it easy for the product to be diffused widely amongst their target market.

Holiday Season Plans

For the holiday season this year, Abercrombie & Fitch is doing something they've never before done. They have created gift box sets of some of their popular winter items, such as a hat and scarf set, pajamas for men and women as well their signature fragrances for each gender.

You can also tell when the holidays have arrived at Abercrombie & Fitch stores because their marketing and store packaging changes. A splash of red is added to their typical grayscale shopping bags and marketing. They also add festive red bows to their in store presentations and change up the music played in the store. For one month out of 12 they ditch their loud techno beats in favor of more festive holiday music. Along with that, right before Christmas, Christmas Eve to be exact Abercrombie has its biggest sale of the year, just in time for the holidays.

Chapter 16: Integrated Marketing Communications

In terms of product promotion there is one product that Abercrombie & Fitch heavily promotes, and that would be their fragrances, especially their number one fragrance Fierce. Their promotional strategy for promoting Fierce consist of a variety of techniques that they use to get the scent out there. For starters fierce is used as Abercrombie & Fitch's signature scent. At one point, sales associates would be designated to only spritz and pass blotter cards out to the customers in the store, but also spritz each item of clothing every have hour to 45 min every day. Now Abercrombie & Fitch uses a different technique to get the consumer to smell Fierce. In most of their stores worldwide, they now have automatic spritzers. Machines attached to the ceiling solely for the purpose of spraying the store with Fierce heavily enough that you can actually smell it from quite a distance.

They have also incorporated the product in their "tag lines", things the sales associates say to costumers as they enter and leave the store as well as check out. whether its "Get Fierce" or "Have you checked out our fragrance Fierce yet?" it's a way to get the product or at least the idea of the product into the consumers head at all times and that has really helped it become one of the rated fragrances worldwide. The company even created publicity for themselves by challenging the one and only Beyoncé. When the superstar was determine to release a fragrance names after her equally as famous alter ego "Sasha Fierce" Abercrombie & Fitch went to great lengths to make sure that she wouldn't be able to use the name fierce in relation to any fragrance, and they actually one, which definitely created more hype for the the already popular fragrance.

I believe a lot of the stuff that i mentioned before fits into Abercrombie & Fitch's AIDA concept. The attraction would be the smell in the air that draws in a lot of consumers, who once in the store usually do purchase the Fierce fragrance among other things. The interest would be all of the associates in the store talking about it with the consumer and sparking interest in them about what exactly the fragrance is. The desire would be when they get home and smell this great fragrance thats all over their clothes and actually being able to smell it in a setting that isn't an Abercrombie & Fitch store, is enough to cause a consumer to take action, by returning to the store and purchasing it or purchasing it online.

Chapter 10: Product Concepts

When it comes to Abercrombie & Fitch, most of their products can be seen as shopping products. In comparison to a lot of Abercrombie's competing brands, Abercrombie definitely stands out as the more expensive brand. It can also be found in a few stores. For example, there are only two Abercrombie & Fitch stores in New York City. It falls under the heterogeneous shopping product category, because all items sold by Abercrombie & Fitch are solely bought due to consumers individual preferences. There are any other brand that offer the same or similar products, some at a lot lower prices, yet the consumer purchases Abercrombie products due to personal preference. For example, now that I no longer work for the company, and don't receive a discount, I still insist on purchasing Abercrombie & Fitch jeans because I personally love how they fit on me.

As I mentioned in an earlier blog entry, Abercrombie has recently released their new 2012 line of jeans, which they describe as a completely redesigned product, with lots of aspects such as softer denim and a "perfect" stretch that will definitely appeal not only to loyal regular customers but as well as brand new consumers. That is a rime example of Abercrombie using product modification to attract as well as keep consumers. They also showed an example of product line extension, by adding a straight leg fit, as well as jeggings to their already broad product line of denim. The two additional styles added, are styles that are very in fashion lately, and helps the company to maintain and obtain consumers.

Chapter 18: Sales Promotion and Personal Selling

Nowadays Abercrombie & Fitch is well known by consumers as a store that offers many sales and promotions but it wasn't always that way. Years ago Abercrombie & Fitch never ran any tie of promotions because it was exactly needed to sell their items, but overtime with the decline of the economy and other chain stores opening and selling similar items at lower prices, Abercrombie & Fitch has started using sale promotions more than ever before, and quite often. Just the other day while shopping in an Abercrombie store, I used a promotional code I acquired online to get 25% off of my total purchase, which I thought was incredible but t make it even better I was given an additional 25% off coupon to use on my next purchase. Abercrombie is not only using promotional sales to get people to actually come in and shop, but they also use it to get consumers to comeback and continue to shop.

By looking at the website, it also seems that theirs always a deal at Abercrombie. One week you get 25% off your total purchase, and when that promotion is over another one starts offering an additional 40% off of sale items. Now I know from having worked there for years, that they quite often tend to offer extreme discounts on already discounted merchandise, mainly to get rid of old merchandise and make room for new stuff, but that definitely seems to work in the consumers favor. They've also just started doing instant rebates, where if a certain amount is spent, they offer a percentage off which is something new for the company. Right now it's only for online purchases but it probably won't be long before its an in store promotion as well.

In terms of personal selling, according to the textbook Abercrombie & Fitch isn't a company that takes part in personal selling, but given how much their sales promotional techniques have changed, who can even predict where Abercrombie & Fitch will be with personal selling in the future.