MKT1705 Principles of Marketing Case Study (Koh Jun Kiat)

Abercrombie & Fitch Co. (A&F), incorporated on 26 June 1996, is a specialty retailer offering an array of apparel products striving to deliver unique and welcoming experience to customers in stores and online. The three global brands are Abercrombie & Fitch, abercrombie kids and Hollister Co. In a highly competitive retail industry, A&F has been struggling to maintain relevance to consumers and its target market – the youths. Emergence of new fast fashion competitors pose a threat to A&F. A&F’s expansion efforts in Asian markets achieved little success due to the lack of understanding of these markets. Apart from differentiation, A&F needs to understand each market for successful penetration. In this report, we will first discuss the business environment of A&F using SWOT analysis, followed by expansion approaches in China, analysis and recommendations for A&F in Japan and new Asian markets.

CONTENTS:

1. Introduction 1

2. SWOT Analysis 1

2.1 Strengths 1

2.1.1 Adaptation to Changing Retail Landscape 1

2.1.2 Unique Marketing Strategies 1

2.2 Weaknesses 2

2.2.1 Failure to Conform to Cultures 2

2.2.2 Workplace Discrimination 2

2.3 Opportunities 2

2.3.1 Seamless Online Experience 2

2.3.2 Underpenetrated Markets 2

2.4 Threats 2

2.4.1 Competition 2

2.4.2 Brand Switching 2

3. Expansion in China 3

3.1 China’s Economy 3

3.2 Shifts in Beliefs 3

3.2.1 Selective Spending 3

3.2.2 Brand Loyal 3

3.2.3 Shopping via Online Channels 3

3.3 Variety-seeking Buying Behaviour 4

3.4 Recommendations the China Market 4

3.4.1 Importance of Localisation 4

3.4.2 Product 4

3.4.3 Pricing 4

3.4.4 Place 5

3.4.5 Promotion 5

3.4.6 Customer-oriented 6

4. Analysis of United States (US) and Japan Markets 6

4.1 Consumer Market 6

4.1.1 US Market 6

4.1.2 Japan Market 7

4.2 Consumer Preference of US and Japan 7

4.2.1 US Consumer Preference 7

4.2.2 Japanese Consumer Preference 8

4.3 Recommendations For the Japan Market 8

4.3.1 Advertisements 9

4.3.2 In-store Experience 9

4.3.3 Chatbots on A&F website 9

5. New Asian Markets 10

5.1 Demographic of Asia 10

5.2 Lifestyle characteristics of Asia 10

5.3 Personality Characteristics of Asia 10

5.3.1 Value-seeking 10

5.4 Marketing Considerations for the Asian Market 10

6. India 11

6. 1 Lifestyle Characteristics of Consumers in India 11

6.1.1 Rising Affluence 11

6.1.2 Online Shopping 11

6.2 Personality characteristics of consumers in India 11

6.2.1 Brand Conscious 11

6.2.2 Value Conscious 12

6.3 Recommendation for India Market 12

7. Recommendation for Philippines Market 12

7.1 Lifestyle Characteristics of Consumers in the Philippines 13

7.1.1 Shopping as a Social Activity 13

7.1.2 Socially and Environmentally Conscious 13

7.2 Personality characteristics in the Philippines 13

7.2.1 Outgoing 13

7.2.2 Confidence 14

7.3 Marketing Policy for Philippines 14

Conclusion 15

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