A&F Case Study
The highly competitive fashion business demands that companies be extremely inventive in their promotion strategies. Mass-market brands targeted to youth audiences sometimes choose provocative and controversial ways of brand promotion. Calvin Klein, FCUK, Benetton, Diesel all these brands are famous for their controversial and provocative advertising.
Established in 1892, Abercrombie & Fitch started as an upscale brand of sports outfit. Its clients' list included Theodore Roosevelt and Ernest Hemingway. After passing through a serious crisis in the '80s and a bankruptcy, it was bought by The Limited, Inc., the company that owns Victoria's Secret, Bath & Body Works and La Senza, etc. When Mike Jeffries, an ambitious manager, came in as chief executive in 1992, the company had 20 U.S. stores, a handful of outlets in Canada and was losing $25-million a year selling classic, "frumpy" preppy styles. Jeffries proposed an unexpected plan of brand restoration and Abercrombie turned to "casual luxury" for college students. The promotion strategy targeted college students 18-22 years old and primarily used provocative sexual content and images. This strategy led to quick and successful promotion among the target audience. Abercrombie was rated as the second coolest brand after Nike. The photos from the A&F Quarterly catalog were the No.1 choice for wall decoration in college dorms. The sales grew rapidly. At the same time, American society actively reacted against Abercrombie, organizing numerous boycotts and protests. This resulted in sales decrease and lots of negative publications in the U.S. mass media.
After almost 10 years of provocation and discriminatory issues, in 2006 Abercrombie turned to less controversial strategy and, as one of the most successful mass market brands in the U.S., began to expand into the international market. During the 10 years of the company's renovation, the share price increased from $16 to $80 . This case study is aimed at
Established in 1892, Abercrombie & Fitch started as an upscale brand of sports outfit. Its clients' list included Theodore Roosevelt and Ernest Hemingway. After passing through a serious crisis in the '80s and a bankruptcy, it was bought by The Limited, Inc., the company that owns Victoria's Secret, Bath & Body Works and La Senza, etc. When Mike Jeffries, an ambitious manager, came in as chief executive in 1992, the company had 20 U.S. stores, a handful of outlets in Canada and was losing $25-million a year selling classic, "frumpy" preppy styles. Jeffries proposed an unexpected plan of brand restoration and Abercrombie turned to "casual luxury" for college students. The promotion strategy targeted college students 18-22 years old and primarily used provocative sexual content and images. This strategy led to quick and successful promotion among the target audience. Abercrombie was rated as the second coolest brand after Nike. The photos from the A&F Quarterly catalog were the No.1 choice for wall decoration in college dorms. The sales grew rapidly. At the same time, American society actively reacted against Abercrombie, organizing numerous boycotts and protests. This resulted in sales decrease and lots of negative publications in the U.S. mass media.
After almost 10 years of provocation and discriminatory issues, in 2006 Abercrombie turned to less controversial strategy and, as one of the most successful mass market brands in the U.S., began to expand into the international market. During the 10 years of the company's renovation, the share price increased from $16 to $80 . This case study is aimed at