A&F (UK) Ltd Strategic Marketing Plan 1

Strategic Marketing Plan for A&F (UK) Limited 2010 to 2013

Marketing Strategy Formulation

Mission Statement
To create the best value for money for the teenagers all around the globe by providing excellent
quality products augmented with the best service, care and experience.

Strategic Marketing
Strategic marketing has been a very important area where A&F has firmed its position.
The Marketing strategies are straight and targets directly to the youth. The life style,
general perception, needs, wants, demands, cultures, economic situation and consumption
pattern is thoroughly analyzed by A&F, which results in a high-quality strategic and
tactical marketing objectives. A&F has retained its uniqueness factor intact by advertising
on a totally different note. Competitors like The Gap, Tommy Hilfiger, and American
color of Benton have been focusing on different themes to promote their products,
whereas A&F has always been focused on the sexual advertising appeal. A&F emphasis
on more than one unique selling point, large banners of youth placed on the outlets and
billboards have positioned A&F with a perception of high quality and elite class. A&F
also has a very different hiring procedure where it only hires people who have been
representing A&F, the company runs campaigns in colleges where they recruit good
looking and customer oriented sales persons who already wear and represent the A&F
brand.

Segmentation
Strategic marketing has three prime factors that need to be focused upon while planning.
Segmentation is the first and most important of all. A&F has its own strategies for marketing the
brand. This plan discusses about some new strategies that A&F should adopt in order to raise the
brand image in the market. A&F has been focusing on only a particular segment which is the
youth (generation Y), but there are several variables that need to be considered while
segmentation. According to the present situation of A&F, the company for the coming years
should consider segmentation as another important factor since they usually lack geographical
segmentation to be implemented carefully. The company needs to focus on the following criteria
of segmentation
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Demographic Segmentation
When it comes to demographics segmentation, The CEO of A&F Mike Jeffries has been always
focused more on the higher-end segment of the society. However the segmentation is quite equal
in terms of genders since the company targets both men and women equally with an age range
from 18 to 22.

Psychographic segmentation
A&F has “the classic cool” theme, with the range of newest trend for teenagers relating to the
higher segment of the society. This life style theme of casual and luxury should be followed in
order to retain the brand image.

Behavioral segmentation
The behavioral segmentation can be more result oriented, if A&F starts new campaigns especially
on occasions. Consumers loyal to the brand should be treated with higher services and offers, the
main benefit sought for the targeted segment of teen is differentiation, and this differentiation
should be focused highly whenever stretching or filling the product line.

Geographic Segmentation
A very important segment that A&F seriously needs to consider is the geographical segment. The
company has built its brand equity and promise, but it lacks to realize the global marketplace and
the potential of market in different countries.

Targeted Marketing

Since A&F has been clearly targeting the youth of UK, US and Canada, their target market is
pretty much obvious and according to it, they have some options available to cater these
segments.

The Available target market options although varies according to different factors, of economy,
location and culture but if an appropriate marketing strategy is formulated for the required
segment things really can work out good. A&F currently are focused upon niche or concentrated
marketing, despite of opting for undifferentiated or differentiated marketing. Although there are a
lot of risk involved in Niche marketing methods, but considering the situation and the nature of
the brand this was the best option to choose. It is a general fact that risk involved in this kind of
marketing method is high, but if you are really successful in catering the larger share of this small
segment then profitability is very high.

The factors that are required to consider for the method of selecting the targeted segment are
discussed below

Company resource
A&F has outsourced its production; however these outsourced firms have to be highly reliable
since it is the main resource of the company, moreover as A&F emphasis on skilled labor and
sales personnel. The resources of the company are high from skill prospective.
A&F (UK) Ltd Strategic Marketing Plan 3

Product life cycle stage

As A&F has the reputation of following the trend, therefore the product life cycle changes after
every trend, the trends are more varied according to the seasons, therefore the supply chain has to
be more considered about this fact and work accordingly

Market variability
The nature of teenagers is very flexible and they usually follow what seems cool to them,
therefore the market variability is very high in the industry. The new design adaptation is very
important to have this competitive edge.

Competitors’ strategy
A&F experiences high competitions with its competitors since, brands like American eagle,
western outfitters, gap inc. has high market reputation all around the globe and focuses the needs
of more than just one segment which is contrasting to A&F. Competitors of A&F also follow
differentiated marketing techniques which provide them high results and vast population to
service.

Targeting the corporate social responsibilities

A&F has been promoting its image more on the sexual basis, with very low or almost no
realization of corporate social responsibilities. The brand should not change its image, since it has
created its image on a very different note, but realization of CSR is very important, because this
not only will bring more loyal customers to the brand but also people will market the brand
through the word of mouth or on various social media platforms.

Brand Positioning and Positioning Strategy

"I think we represent sexually healthy. It's playful. It's all depicting this wonderful camaraderie,
friendship, and playfulness that exists in this generation and, candidly, does not exist in the older
generation." CEO, Mike Jeffries

The statement from the CEO is quite clear about the segment that is targeted by the company, the
association of sexuality with the brand has been intentionally associated by the company it self,
the company has the believe that the young generation has more of its attention towards this
appeal and if the brand is positioned with it, the youth will be attracted to the brand as well.

But as well consider the current situation of A&, positioning is one very important strategic
marketing aspect where A&F needs to focus on. With the diversified product offerings the
company should be patent with the basic image that they want to communicate with their brand.
The have been promoting sexual appeals as a prominent part of youth, but with the previous
experience where the company came up with the wrong way to implement the positioning of
women products, the strategy to be formulated in the future in terms of positioning should be very
specific and straight. It should focus on the core point of difference which is high quality and
uniqueness of the brand. This should be conveyed in every promotion, so that these factors are
associated with the brand in the perception of the consumers. The formulation of positioning
strategy should be focused on their competitive advantage and the methods to implement are
discussed as following
A&F (UK) Ltd Strategic Marketing Plan 4

Positioning for Competitive Advantage

The first thing that the company needs to consider is to identify the possible competitive
advantages over the others in the industry. Since many years A&F has been positioned in a way
that it differentiates itself with quality which is masterfully tailored with price, so that the
customer can get the best value for his or her money. Another important differentiation is the
service which is provided to the customer, the product although is very good, but when you
augment some quality services with the product the brand loyalty of the consumers increases
drastically. Moreover if highly trained and friendly sales staff is present in the outlets, this will
also create more value to the customers and eventually the experience of the customer will be
great. This experience always results in fetching the customer back to the store, and there is a
high probability that they will be buying products on every visit.

The selection of the point of difference should be excellent, because this difference usually
becomes the brand promise. The brand promises are very sensitive because if the company is able
to fulfill the promise to the consumer the trust level boosts up significantly, and in case if the
promise becomes empty then the brand and the company suffers a lot.

Considering the situation of A&F, the company has opted for all the possible basic positioning
differentiations like channels (offering online orders), product line differentiation (large and
diverse product offerings), image differentiation (more focused towards the perception and
consumption pattern of generation Y) and people differentiation (only hiring highly trained staff
members)

Choosing the Unique selling Position (USP)

There are several aspects through which A&F can choose their USP, having so much
differentiation in terms of positioning. It will be a good option to continue with the following
USPs

 A well built marketing image and integration of efforts

 Firm brand representation of youth segments

 High service quality

 Strong hold on targeted segment (Generation Y)

 Positioning Strategies on sexuality in the advertising appeal

 The stores are designed in a premium manner with elements such as comfortable
armchairs, large photos, loud music, and dimmed light and strong scents
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Positioning Map

Value Propositions
More for More
A&F has this strategy for the value proposition to get more for more quality, service, experience
and brand. This is something that will be continued since this proposition is another point of
difference for the brand

More for the Same

A&F can come up with seasonal offers and discounts to offer more value with the same price of
competitors this will bring in more customers to the store and would also increase the sales in off-
seasons.

Generic Strategies

Some more focused strategies should be on the production market. Since A&F has been enjoying
good benefits while outsourcing the production, but still if they keep on looking for offers and
opportunities in these aspects they can be benefited more or increase their production scale.

Another important aspect which is related to supply chain is logistics, since logistics play a very
important role especially when a firm has outsourced its production to different country. A&F can
look for better logistics opportunities which can result in good outcomes.

Changing the positioning of the brand will not be such a good idea and as with the current
situation where A&F has positioned it self successfully with the youth. the company should focus
more on enhancing the image of the brand by continuing its association with the generation Y.
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Ansoff Matrix
Market Penetration Strategy
A&F has made a strong impact on youth of generation Y, with more emphasis on the brand
equity and competitive edge of the brand, A&F can fetch more consumers to its outlet easily. The
large banners and a totally different store experience differentiates A&F with the rest, but to get
more consumers in the store A&F needs to focus on promotional offers and college campaigns.

Market Development Strategy

A&F has a vast market ahead of it, with the evolution of social media, and high influence of the
western wear all around the world. A&F can enter new markets especially in the Gulf, Asia and
other European markets. This is a very good opportunity that A&F needs to consider seriously.

Product development Strategy

A&F needs to continue with the product development strategy since the nature of casual wear is
like that. The trend of teenagers changes rapidly, and to cope up with the trend and retain the
point of differentiation is not an easy task, but still A&F has been doing this every efficiently
therefore they should continue to retain this product development strategy.

Diversification
A&F has been slow in getting into the new markets; the products offered by A&F are more
focused on a particular geographical generation Y demographical segment. Several new
opportunities come up when and the requirements of the teenagers will vary when they enter into
new market. Therefore Diversification strategy can also work, since A&F has been successful in
developing its brand image within its origination and now when they aim to enter newer markets
and bring up on new products there is a high chance of success because of its brand promise.

Strategic Choice: Market Development Strategy

With the evolution of social media marketing, products are no more limited to just one place,
through ecommerce and online stores, more and more people are buying products online through
websites. A&F has its website that promises the brand differentiation and communicates the exact
image that the company wants to convey to its consumers. The product offering on the website is
developed with catchy graphics. This can immediately attract any customer anywhere in the
world. The online buying although is good, but it really does not build up the “brand loyalty”
with the customer. A customers needs to experience a product to stick to a brand. A&F no doubt
offers unmatched customer experience through its state of the art customer service, its highly
trained staff and a quality promise. The market development strategy can really work out if they
enter the potential market of Asia and specially the Gulf region. There are several platforms
where global shopping festivals are held. A&F can start from these festivals to catch the youth all
around the world.

The influence of western wear is gaining popularity day by day, and the opportunity is very good
since most of the products that complete a life cycle at a certain location become popular in the
other markets. The company should ask for distribution proposal over the website and they are
sure to get many from all around the world, the branded wears are very popular all around the
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world and people classify these brands with their personalities and even change life styles
according to it. The positioning of A&F has a strong impact and appeal on youth; this can be very
profitable for the firm if it enters into the new geographical location.

Another important thing is to start the outlets within the county they are producing, because it
will also save the travelling cost and eventually result in market development. This is also another
good option since more people will try to associate themselves with the brand within that country
and it can result in a global reorganization of the brand as well.

Reference
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 Cuneo, A. (1999). Abercrombie and Fitch takes its ads to TV. Advertising Age, 70, 1-3.
 Driessen, C. (2005). Message Communication in Advertising: Selling the Abercrombie
and Fitch Image UW-L Journal of Undergraduate Research VIII
 Drisoll, M. (2003). Abercrombie and Fitch: Priced to buy. Business Week Online.
 Torkells, E. (2001). Abercrombie and Fitch. Fortune, 143, 198.
 Safer, M. (2003). The Look of Abercrombie and Fitch. 60 Minutes. CBS.