THÔNG TIN TÀI LIỆU
BA International Standard Program Principles of Marketing Module FINAL COURSEWORK Student’s Name & ID No # Group Unit Number and Title Principles of Marketing Assignment – Final Report Final coursework – Marketing plan proposal Assessor Võ Hồ Hoàng Phúc Submission Deadline 20/08/2020 Proportion of Coursework 50% Students’ Signatures: …………… ………………………_ Date: 20/08/2020 For Official Use Coursework / Assignment received by : …………… …………………………_ Date: ……………………… Instructor’s Grade Mark Achieved: ………………………………………… Date: …………………………… TABLE OF CONTENTS INTRODUCTION 1.1 Organization and product 1.1.1 Organization .3 1.1.2 Product .3 1.2 History .5 SITUATIONAL ANALYSIS 2.1 SWOT Analysis 2.2 Industry Analysis 2.3 Competitor Analysis 2.4 Customer analysis 11 2.5 Environment analysis 12 2.5.1 Environment Factors .12 2.5.2 Social Factors 13 2.5.3 Technological Factors 13 MARKET-PRODUCT FOCUS 13 3.1 Market Segmentation 13 3.2 Target Market 14 3.3 Positioning 16 MARKETING PROGRAM STRATEGY AND TACTICS 18 4.1 Product Line 18 4.2 Promotion 18 4.3 Place 19 4.4 Pricing 19 REFERENCES 20 APPENDICES .22 INTRODUCTION Up to present, the fast fashion industry is booming with many big brands in the world A fierce competition in the global retail industry when the companies must seek more potential market in the future to maintain their brands Vietnam is one of the "fertile land" to exploit Especially in the young people from aged 20 to 26 However, we have to compete with other big companies already presented in Vietnam, such as: Pull & bear, Zara, H&M, Uniqlo and more "Speed will be the name of the game speed and control," said Ricardo Perez Garrido, professor of digital and information systems innovation at IE Business School in Madrid "It means designing in the direction of serving what customers like, operating to put the product in the right place and the technology to make it ultra-fast, super effective If you control those three areas, you will become invincible " Therefore, the purpose of this article is to analyze the Vietnam fashion market to provide options to handle three areas mentioned above Moreover, we have to conduct the survey about brand awareness Predicting consumer behavior as well as create plan to make A&F difference among other brands so that A&F dig in along fast fashion in Vietnam is conveniently 1.1 Organization and product: 1.1.1 Organization: 1.1.2 Product: The company has operated four concept brands apart from its namesake over the years; they have been referred to as subsidiaries, but operate as divisions under the company's umbrella Abercrombie Kids : Prep-school by Abercrombie & Fitch Themed as "classic cool" for kids through 14, this is the children's version of Abercrombie & Fitch Hollister Co.: Southern California by Abercrombie & Fitch Themed after "SoCal" for teenagers 14 through 18, with significantly lower prices than its parent brand Gilly Hicks: The cheeky cousin of Abercrombie & Fitch Themed after "Down Under" Sydney, it offered underwear and loungewear for women 18 and up All stores closed in 2015 Ruehl No.925: Post-Grad by Abercrombie & Fitch Themed after a fictional Greenwich Village heritage, offered clothes for 22 through 35 post-grads Closed in 2010 MEN: Top: Shirt, T-Shirt, Hoodies & Sweatshirts, Sweaters, Graphic Te, Polos Bottoms: Jeans, Pants, Sweatpants, Shorts, Joggers, Super Skinny Jeans & Pants, Skinny Jeans & Pants, Athletic Skinny Jeans & Pants, Straigth Jeans & Pants Coats & Jackets: Coats, Jackets, Vests Swimwear: Shortest, Mid-lenght, Longer, Swim Accessories Underwear: Boxer Briefs, Trunks, Boxers, Briefs, Multipacks Accessories: Hats, Belts, Socks, Watches, Bags, Ties Shoes: Flip flops, Sneakers, Casual Shoes, Boots Cologne & Body Care: Fierce hand sanitizer, Perfume WOMEN: Dresses & Jumpsuits: Short dresses, Rompers & Jumpsuits, Maxi & Midi Dresses Matching Set Tops: Sweaters, Hoodies & Sweatshirts, T-Shirts, Shirts & Blouses, Camis & Tank Tops, Graphic Tee, Bodysuits Bottoms: Jeans, Shorts, Skirts, Pants, Sweatpants & Leggings, Ankle Length, Overalls Coats & Jackets: Coats, Jackets Sleepwear & Intimates: Sleepwear, bralettes, Underwear Swimwear: Bikini Tops, Bikini Bottoms, One Piece Swimsuits, Cover ups, Swim Accessories Accessories: Bags, Hats, Belts Shoes: Sandals & Flat, Sneakers, Boots & Heels, Slippers Fragrance & Body care: Fierce hand sanitizer, Perfume: Short dresses, Rompers BOYS: Tops: t-shirts & henleys, hoodies & sweatshirts, button - up shirts, Polos Bottoms: Jeans, Shorts, Pants, Sweatpants, Joggers Coats & jackets: Coats, Jackets Pajamas: Pajamas set Underwear: Boxer Briefs Swimwear: Swim Trunks, Boardshorts, Rashguards, Swim accessories Accessories: Belts, Bags, Shoes, Dip-dye beanie, Perfume, Socks Dresses & Rompers: No product GIRLS: T-shirts: Tank & Camis, Shirts, Hoodies & Sweatshirts, Sweaters, Polos Shorts: Jeans, Skirts, Leggings & Sweatpants, Pants, Overalls, Joggers Coats & jackets: Coats, Jackets Pajamas: Pajamas set Underwear: Tumble Shorts, Bralette, Bikini Briefs Swimwear: Bikinis, Swim accessories Accessories: Bags, Socks, Scrunchies, Velvet headband, Dip-dye beanie, Perfume Dresses & Rompers: Dresses, Rompers & Jumpsuits, Matching set 1.2 History Abercrombie & Fitch brand was born in 1892 by outdoor sports expert David Abercrombie founded as Abercrombie Co, specializing in selling costumes and tools for the upper class In New York, USA In 1904, with the addition of member Ezra Fitch, the company changed to Abercrombie &Fitch but in 1907 because of a conflict, David sold shares and everything continued to grow until the business situation slowed down and went bankrupt in 1976 In1978 Mr Jake Oshman built the Abercrombie & Fitch brand and ran a chain of more than 200 stores in 1980 But in 1988 when the Limited Brand was ceded to be The Limited in Ohio, the brand was changed like starting over In 1998, they established the subsidiary Abercombie &Fitch kids and reached the international market with more than 100 years old 2000 founded Hollister with young children with the deer logo in 2005 In 2008, they opened a subsidiary with Gilly Hicks (but closed in 2015) and Ruehl No.925 was born in 2004 (closed in 2010) From outdoor products until the late nineteenth century and from here, the brand is more popular from young people with diverse products such as perfume, shoes, trendy clothes Abercrombie & Fitch distribute products based on 4.0 technology with main components being costumes for men and women In 2014, once again changing the director, Ms Fran Horowitz tried to rebuild the brand with a whole new way of saying no to the logo, rebuilding the image In 2015, Abercrombie&Fitch was present in countries such as China, Japan, and Korea but did not have an official store in Vietnam 2017 was once again in a difficult situation, so it had to renegotiate with retail markets such as Express, Outfitters, but the negotiation ended in the same year SITUATIONAL ANALYSIS 2.1 SWOT Analysis: + Strengths: A&F appears worldwide - the capital of this brand is located in the US with 400 stores and globally with 1100 stores The store's sales are huge, which is a huge advantage for any brand, but these stores are concentrated in the UK and the European Union, so this is not a big problem affecting the market share of other Vietnamese brands Attractive retail - Abercrombie's brand representatives in stores are male models This is interesting to attract more customers to the store because these male models are the ones who give advice to customers and this unique method is still used by A&F to this day Because in recent years the body-shaming issue is being criticized a lot, the body-shaming problem has also existed in Abercrombie & Fitch's personnel management, making them face many internal difficulties, when we come back to Vietnam, this is a disadvantage in this market, this is an opportunity for Vietnamese fashion businesses to overwhelm a big brand like A&F Design - A&F has done a great job in designing products, this is one of the main things that make A&F such a big brand The great design ideas of the three sub-brands, Abercrombie & F, Abercrombie & Fitch kids and Hollister have been successfully received by customers around the world, designs that bring youthful, fresh vitality This is a disadvantage for Vietnamese fashion brands, indeed, when thinking about fashion designs for the young segment, Vietnam does not have many outstanding designs, does not create many fashion trends, right in their yard Full retail products - Men, women, or children can buy a wide range of products from a big lifestyle brand like A&F, there is a full range of products like hip tee shirts, apparel, perfumes, and footwear Having a full range of products is a great strength for A&F in Vietnam, most customers in Vietnam tend to buy related products at the same store if we create a trust for customers High-quality products - Any high-end brand always has to ensure the quality of its products and its services is at a high level, if not, then the reputation of The brand is heavily influenced, possibly no longer being called a premium brand, and A&F is one of them At A&F, in each of our showrooms, representative clothing, store layout as well as inventory management are always maintained to the highest quality Good quality products naturally gain a lot of market share in any environment including Vietnam, to confront high-quality products, only the way businesses in Vietnam have to is improve the quality of their product, create products with unique designs and increase advertising in their markets Strong and solid brand – A&F has a strong heritage behind it and it also spent a lot in brand building through its usage of bold advertising More importantly, the brand also has a team in place to ensure that the brand is protected and counterfeiting of the brand is at its minimum Limiting fake brands in Vietnam is one of the top things to if A & F want to dominate, in the market of rampant fake products in Vietnam, if A & F have created a true reputation, surely this brand gets new customers to keep an eye on Window merchandising – Initially, most of the store layout of A&F was private wherein the customers could not look inside unless and until they walked in However, keeping up with the times, Store layout was changed to encourage window shopping and to bring people inside after they looked at the goods that they like Such a store structure is very suitable for the mentality of the Vietnamese people, they like the eye-catching and sparkling things that catch their attention, they also like to choose the products without actually buying, creating such an open environment that attracts a lot of customers even though they don't buy but they already know the brand An excellent website – I loved the website of Abercrombie and Fitch as it is rich in detail and it has models showing off the latest in fashion including clothes and accessories Fashion websites with youth segments are also very suitable in Vietnam when nowadays most of the young people not go out to choose the products in the store but they surf the website to see the products before actually going to the stores or we can be purchased online + Weaknesses: 1.Employee management – One of the issues for which Abercrombie and Fitch received a lot of flak was their handling of employees Employees were made to wear only A&F branded clothing which they had to buy a discounted price from the brand This issue was resolved a few years back with employees being compensated Overall, there have been several poor policies with regard to employee management by A&F over time This is a weakness that creates other weaknesses, personnel is like the head of the company, the brain has problems, contradictions naturally other parts also many other issues If Vietnamese enterprises capture this weakness to learn and use it to compete with A&F, it is a great advantage created by A&F itself Numerous Controversies – Not only were they involved in employee management hassles, the marketing and advertising of A&F also received controversies from people due to their usage of partially nude men and bold ads over the years The brands Wikipedia page has a list of controversies they were involved in Being talked about by people to help their brand to be more popular but talked about the bad things of the company has the opposite effect, those bad things, though not exactly authentic also have an impact on customer psychology more or less Declining Brand equity of A&F – Abercrombie, and Fitch became a cool brand since Mike Jeffries rebranded them as the upscale brand it became However, over a period of time, Abercrombie and Fitch lost most of its “coolness” and the young college crowd could not associate themselves with A&F due to which it has lost a major market share It is not difficult to get a connection with the main customer at first, but if the connection has been broken and wants to resume again, it is really difficult, because with the brand that the customer has missed In their minds, they will choose other brands instead, those brands are more novel, more attractive because there are many other fashion brands in the same segment with A&F + Opportunities: Market penetration and expansion - Retail brands like A&F are very promising if we expand the market to developing countries This is a great opportunity for A&F to develop the brand to become stronger and stronger But in Vietnam is another matter, companies in other fields in general and fashion companies in particular in Vietnam are very difficult to survive in this market, companies that grow up a lot but fail also The competition in the Vietnam market is very intense, even if a big brand like A&F if it fails to grasp the purchasing culture of Vietnamese customers, failure is normal Franchising as an Option - A&F can execute franchise strategies as they are reputable brands in the United States and around the world A&F can fully use its reputation to enhance the expansion of new branches and facilities globally as other major brands are doing Similar to expanding markets in developing countries, but the difference is that if the operators of these franchise stores are Vietnamese, the franchise actually has more development opportunities in Vietnam Advertising in developing countries - A&F needs to promote advertising campaigns in developing countries and build their brand in these countries A brand that wants to dominate the global market like A&F cannot grow only in the United States Advertising is essential in the business, if the product has been widely known, it must still maintain advertising so as not to lose the position in the minds of customers, in every market need advertising and so Vietnam Re-brand image - America is the cradle of A&F if we are still in that market and their sales are still down, proving that we are losing their position, we need to review our brand image Moreover, it must become the best brand in the United States and regain lost market share In the Vietnam market is really the ideal place for brands to rebuild their brands, the Vietnam market often responds greatly to new brands +Threats: Competition at its highest - If the brand focuses on the young segment like A&F, surely the competition in this segment is very intense The competition here takes many different forms from direct to indirect When young people have new trends and needs, we have to meet those requirements to be able to dominate the market In Vietnam, young people tend to absorb both Eastern and Western cultures, so their feelings and thoughts about fashion are very diverse and diverse, young people are the segment that they always need new things, if their design department has both Eastern and Western people, although they have a lot of controversy in design, it will create the most attractive designs for young people in Vietnam Differences become difficult - Being a fashion brand, the presence of products with different designs from the remaining competitors is an essential requirement, which creates a unique feature of a high-end brand don't get mixed up with brand other, but making that difference between the vast variety of designs today is difficult Brand switching is at an all the time high - it is normal for customers to no longer use this fashion brand and switch to another brand, which makes customers no longer use A&F and then move on to use other brands Young people are those who have unique and unique needs, the problem is even more difficult, but once they reach this customer segment, A&F can become a more premium brand today, this is both difficult but also an opportunity for them to develop more than ever Need faster expansion speed - The market without competitors is the gold mine for the brand, A&F needs to expand quickly to take advantage of its brand value In markets without competitors, A&F should expand as quickly as possible, but in Vietnam, it is not a key one of those markets because the competition is a lot so in Vietnam, it will only bring disadvantages to us 2.2 Industry Analysis: Abercrombie & Fitch Co is a specialty retailer who primarily sells its products through store and direct-to-consumer operations, as well as through various wholesale, franchise and licensing arrangements Once the clothes have been designed and manufactured, they need to be sold The business of buying clothes from manufacturers and selling them to customers is known as retail Retailers make initial purchases for resale three to six months before the customer is able to buy the clothes in-store When Abercrombie & Fitch located in Vietnam, it will stay the same with the retail industry for the reason that Vietnam is a great country for many manufactories Examples of textile factories: Thuan Kieu Vai Textile, Dony Export Garment, Can Man Garment, HP Fashion, The common point of these factories is that they are all located in HCMC and finished products are qualified for export In terms of processing costs, sewing in Vietnamese factories is very cheap, the cost of making an industrial product is almost only 70.000 - 90.000 VND if it is the small order For the order up to 1-2 tons of goods, it only cost 10 to 20 thousand VND for a shirt or pants However, the cost of raw materials is not taken into account, depending on the fabric of the product that A&F choose, or the textile factories can recommend a suitable fabric 2.3 Competitor Analysis: H&M, a popular clothing retail industry, H&M is a Swedish multinational clothing company that was established during the year 1947 and is headquartered in Stockholm, Sweden The main products are clothing and accessories The company is engaged in the design and retail of apparels and accessories The company has its business operations in about 62 countries include Vietnam with stores from the north to the south with a strong online presence as well The company stands second in the clothing retail industry in the world and is prominent for its fast-fashion clothing The company produces a huge range of products that cater to the requirements of people Few of their products are apparel, cosmetics, accessories, blankets, candle and candle holders, and vases and pots However, H&M in Vietnam still has drawbacks At the sales or promotions, the stores often out of stock and size, that leads to the dissatisfaction of customers Moreover, the fitting room at a rush hour usually make buyers queue for quite a long time and finally, H&M still does not have an online buying system in Vietnam Recently, there was a controversy on social media about H&M being high fashion or just fast fashion, and then this controversy was a place for customers to express their disappointed with quality and materials of H&M’s products Also they advise people to buy from competing brands Their products are sold across the globe Its global presence has helped the company to minimize business risks The company has shown a strong financial performance thereby increasing the investor’s confidence and providing financial flexibility to the company Due to their global presence and their products quality, H&M is considered as one of the top Abercrombie and Fitch competitors Same with H&M, Zara is Spanish clothing and accessories retail industry, Zara was established during the year 1975 and is headquartered in Spain Zara is a topmost fashion brand and is owned by the Inditex, the largest distribution group The company designs products and sell their products through many retail outlets The company was established by Rosalia Mera and Amancio Ortega Established in Spain and over the years, the company set up its business operations in Portugal and France as well Zara has a variety of products and it caters to the requirements of men, women, and kids Their main products are clothing and accessories All Zara products are manufactured and distributed through a factory in Spain From concept to production, it only takes about 30 days, with such a frequency, Zara produces more than 450 million products a year Only stores at Vietnam – one in Vincom Ha Noi and one in Vincom Ho Chi Minh - but in 2018, according to a report of Mitra Adiperkasa, its revenue in Vietnam reached about VND 2,000 billion In particular, Zara brand grew 1.5 times to nearly VND 1,700 billion, equivalent to the average daily turnover of about VND 4.6 billion However, the minus point in Zara stores is the fitting stage If there is so many customers, they will have to wait quite a long time to try clothes on It seems that the number and the arrangement of fitting rooms at Zara stores are not really reasonable In short, the design of their products suits the latest fashion trends The company produces unique designs and has many high-profile designers working for them As they have a high brand value and due to their presence worldwide, Zara is considered one of the top Abercrombie and Fitch competitors Uniqlo, another top Abercrombie and Fitch competitors, Uniqlo is a Japanese fashion retail industry that was established during the year 1949 and is headquartered in Tokyo, Japan The company has its business operations in Japan and in many other countries As of February 2019, Uniqlo has had 2,136 stores in 22 markets, of which 825 are in Japan and the company is opening about three new stores every week In Vietnam, Uniqlo has a store in the capital – Ha Noi and stores in Ho Chi Minh City, of which, there is one super large store that has just opened, Uniqlo Dong Khoi This brand is the fastest retail group and it aims to provide comfort to people Having produced great unique and fashionable designs, this brand caters to provide good quality clothes The company has been placed in the position of a modern company and offers their product at affordable prices To that, Uniqlo has started outsourcing to produce clothes at factories in China, where labor costs are significantly lower than in Japan, which helps the company maintain low prices products Despite being a formidable fashion retailer with A&F, Uniqlo's customer segment is not only limited to the age like A&F, but is for everyone, as well as Uniqlo does not recognize their brand as a "Fast fashion" brand but only is the manufacturer of "Lifewear", which can be worn over many years The company also changes the design of the store to meet the ever-growing market trends The company has its main strength as its innovation that has helped them to grow to this extent Due to their great products and focusing on in-store quality as well, Uniqlo is considered one of the top Abercrombie and Fitch competitors Solutions: Therefore, to compete with H&M, apart from having a large trading ground, A&F will build a separate shipping unit of the company In order to control shipping prices as well as deliver products to customers more carefully because if through intermediaries such as Ups, “GHN express”, “GHTK express”, it is impossible to manage whether the goods are damaged or torn before reaching the customer Moreover, as shippers move around the city, this will help increase A&F brand recognition to new customers In addition, having a delivery team, it also means that the company's supply chain is more proactive, easier to attract investors In contrast, building a separate shipping unit also has many problems that arise, such as the need for additional funding for hiring more shippers and management staffs, more complicated processes as well as managing personnel looseness In addition, if the attitude of shipping employees is not good it wills also affecting the company's face Queue and waiting for the turn to try on clothes is a problem in many different brands In order to minimize this situation, the company could reduce the number of checkout counters, meaning the size of the test room, while also developing Quick Response codes for each product and linking with banks or financial applications like momo, airpay to make payment faster In the construction of fitting rooms, A&F can construct smaller fitting rooms, meaning that there will be more test rooms with the same area There is also an alternative solution to appease customers while they wait, provide waiting biscuits, while at the same time can combine using a smartphone distribution system like Zara, which is inspired by hospitals In the hospital, the patients receive a waiting slip until the examination In Zara Hanoi, the customers must enter the phone number into a machine and it will automatically send a waiting message, when the fitting room is available, the system will automatically send a message that is telling customers to access the fitting room This also helps customers have more time to visit around the store, approach more items, increase income for store and help the stores collect the customer information In addition, the company can acquire Chinese technology, about the mirror simulator, customers will not need to go to the fitting room, but just choose a sample of product information, and then the mirror will show in virtual reality This helps minimize nearly every problem of the fitting room, saves the area, increases the number of guests who want to "try on", and helps customers easily choose the price and size as well as color, customers not have to go out, choose another one on the shelf 2.4 Customer analysis: A&F pursuing the changing lifestyle of young customers, the brand style moves from picnics, outdoor adventures to universities, offices and on the streets with casual and healthy clothes and elegance of American culture The brand builds a "Casual-Luxury territory" for the middle class, business people and graduate students with a well-off economy, caring about body, fashion quality and a high-end casual style The biggest era of “fast fashion” in the 90s - also considered a remarkable period of the brand, Abercrombie & Fitch also made great efforts to "rejuvenate" with the "Neo-Preppy" style, fresh, diverse and accessible to teenagers However, it still holds itself in a position with a historic name and is outside the radius of the tight standards of price, sustainability and production speed of "trendy fashion" Ms Louise Hawley - General Director of Nielsen Vietnam - said that in the 2019 market research report, Vietnam's price elasticity was negative - the highest compared to neighboring countries in Southeast Asia Eight-teen percent of consumers said they have a well aware when prices change Price elasticity is the change in revenue when an enterprise changes in price When mentioning the price elasticity in Vietnam is negative 2, it means that when an enterprise raises the price by 1%, the revenue decreases by 2% For example, Zara and H&M when opening to Vietnam, they almost meet Vietnamese customers' expectations about product design, decoration, quality of goods and professional service attitude of leading retailers, but the price for the Vietnamese market of the two firms has surprised many loyal customers Access to a market with a low average income, but the prices of products that Zara or H&M distribute directly in Vietnam are higher than many other markets in the world Many models of coats if they order online will be 300,000-500,000 VND cheaper than buying at Zara Vietnam stores On the other hand, a brand designer in the mid-range segment said that Vietnamese consumers are not hesitant to pay for designs that fit the Asian physique, something that famous brands in the world often encounter when they use Western models for their designs The high price also creates the "desire" to own unique designs and create brand value 11 However, customers' buying trend is getting older, because now in Vietnam, high school students have started buying things at H&M, Zara, where the customer segment is aged from 21 to 24, so rejuvenation at A&F or bringing both Hollister and A&F to Vietnam’s market is a something to consider The Abercrombie & Fitch Customer Survey Guide STEP 1: First of all, visit the official Abercrombie & Fitch Feedback Survey website at http://www.tellanf.com/websurvey/2/execute#/2 STEP 2: Now choose your preferred language is English or Spanish STEP 3: Then enter Store Number, Registration Number, Transaction Number and Valid date STEP 4: Start rate based on your visit experience STEP 5: Give some answers to questions related to your visit STEP 6: Please tell them something to make your visit better STEP 7: Finally, You will receive a Code, Please write down and use it during your visit to get a $ 10 discount Uses of the survey: A&F has its own survey website, but if you want to survey, you have to buy a code to get a code (at the end of the bill there is a code for the survey and after the survey is completed, there will be a code discount from $ 10- $ 50 ) used to survey this means that these surveys will be more qualitative than regular surveys, because people who have the experience of buying and knowing the quality and service are new given the practical and practical feedback and if the experienceis not good, this brand will offer a better solution In addition, the regular survey will be destroyed by the competitor, Meanwhile, A&F does it by buying its own code from buyers 2.5 Environment analysis: 2.5.1 Environment Factors: Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets Even within a country often states can have different environmental laws and liability laws For example in United States – Texas and Florida have different liability clauses in case of mishaps or environmental disaster Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets Some of the environmental factors that a firm should consider beforehand are - Weather Climate change Laws regulating environment pollution Air and water pollution regulations in Apparel Stores industry Recycling Waste management in Services sector 2.5.2 Social Factors Society’s culture and way of doing things impact the culture of an organization in an environment Shared beliefs and attitudes of the population play a great role in how marketers at Abercrombie & Fitch Co will understand the customers of a given market and how they design the marketing message for Apparel Stores industry consumers Social factors that leadership of Abercrombie & Fitch Co should analyze for PESTEL analysis are: Demographics and skill level of the population Class structure, hierarchy and power structure in the society Education level as well as education standard in the Abercrombie & Fitch Co ’s industry Culture (gender roles, social conventions etc.) Entrepreneurial spirit and broader nature of the society Some societies encourage entrepreneurship while some don’t Attitudes (health, environmental consciousness, etc.) Leisure interests 2.5.3 Technological Factors Technology is fast disrupting various industries across the board Transportation industry is a good case to illustrate this point Over the last years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes Taxi industry is now dominated by players like Uber and Lyft Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution A firm should not only technological analysis of the industry but also the speed at which technology disrupts that industry Slow speed will give more time while fast speed oftechnological disruption may give a firm little time to cope and be profitable Technology analysis involves understanding the following impacts: Recent technological developments by Abercrombie & Fitch Co competitors Technology's impact on product offering Impact on cost structure in Apparel Stores industry Impact on value chain structure in Services sector Rate of technological diffusion MARKET-PRODUCT FOCUS 13 3.1 Market Segmentation: A&F, Hollister segment customers from 21-24 years old, mainly new graduates, office workers Moreover, the following people have brand compatibility traits: Occupation: students Hobbies: sports, socializing, hanging out, music Music: Pop, R&B, and House Pastimes: VW golf A&F is aimed at Mid-range income customers (income of more than million/month) A&F will appear in Shopping Centers (Vincom Dong Khoi, Aeon, ) in the South The company's segment focuses on young people, including men and women The segment of the brand targets the upper-class customers in society and customers who are particularly interested in the lifestyle To ensure customers always love their brand, they have invested a lot of brainpower and money not only in stores and advertising but also in their brand representatives 3.2 Target Market: Founded 123 years ago in America, Abercrombie and Fitch was started with a motive to leverage the then world with a style statement What Abercrombie and Fitch has achieved over the course of time is a strong business lessons and very much inspiring Today Abercrombie and Fitch has more than 300 locations in United States and it is expanding internationally at a break neck speed The brand motivated the youth of yester years to adopt a new style of dressing, which today is no less than Status Quo This article analyses the marketing mix of Abercrombie and Fitch Abercrombie and Fitch has not only helped people dress properly but has also shared a sense of fashion Two main offshoot brands of Abercrombie and Fitch namely are Abercrombie kids and Hollister Co American Eagle outfits and Aeropostale are the two contemporaries giving Abercrombie some serious goals Over the time Abercrombie and Fitch has turned out to be a known brand, today be it old or young, everyone wants to acquire a denim from Abercrombie and experience the best of style along with the requisite comfort T-shirts and Denim have always been the flagship products of Abercrombie and Fitch but with the increasing competition and outreach the brand aims to delve into every vertical of dressing and apparel Abercrombie has always been leading the denim and t-shirt market from front but the brand wants to be present in all genres, hence they have launched a wide range of products for everyone Abercrombie and Fitch aims to leverage equal dressing opportunity to every kid and every oldie on the street Abercrombie kids has launched a series of apparel for kids, the brand aims to be everyone’s favorite and they have been quite successful at it The “Neo-Preppy” and “Edgy tone imagery” are some of the phrases that defines the brand in the best possible way Premium Jeans and leather handbags have also found elite positioning as the product Abercrombie and Fitch The brand has always tried to inspire people to dress better and look better Some of the impressive products launched by Abercrombie and Fitch over the course of time are: • Graphic Tees • Chambary Shirts • A&F Shorts • Swimwear • Denims • Men’s Fragrance Fierce • Abercrombie and Fitch Credit Card issued by World Financial Bank Network • Handbag collection by Ruehl • Perfume 41 The business development at Abercrombie and Fitch has always been specific about reaching out to their real customers and serving an experience With 300 locations in United States and with the ongoing expansion, Abercrombie and Fitch aims to be accessible to everyone in the world Abercrombie and Fitch has also been very careful with their brand awereness, the brand presence is very impressive and has established benchmark for everyone who wants to delve into apparel business The fact that Abercrombie and Fitch launched products that will allow people have a complete makeover makes it the best apparel enterprise in the contemporary world An apparel enterprise that provides people with credit facility via its credit card & helps people develop intricate understanding of brand and creates trust as well Abercrombie functions at all levels and ensure that everyone gets to make profit out of their brand Retailers and small level shop owners have also been able to sell their reputed products and generate some profits Abercrombie and Fitch has also delved into the online space and has left the contemporaries awe-struck with their perfomance With the unlimited number of competitive brands, Abercrombie and Fitch has always tried to maintain a range that ensures quality measures and comfort The simple idea of reaching out to the world with style and comfort that are incomparable has ensured that Abercrombie and Fitch is here to stay 15 While Abercrombie is for everyone who loves to dress and flaunt, it is also for everyone who wants to look good without spending a million dollar Yes! Abercrombie is quite a popular brand that goes easier on pocket One can use the diverse range of Abercrombie to dress exquisitely and impress boss and other people In essence, Abercrombie & Fitch applies value based pricing It prices its products as per the value it provides to the customer Abercrombie and Fitch has various sizes that includes of Small, Medium, Large, XL and XXL clothing One can easily find their size and style at Abercrombie and Fitch store Abercrombie is always quite apprehensive about their brand reputation and has always tried to enroll brilliant people for making their brand a success The positive energy they tend to create with their brand is quite impressive and very much beneficial for the brand and the company The brand always tries to make a resonation between their products and the image they tend to create Abercrombie and Fitch is more or less about serving people with experience Abercrombie and Fitch is one of those brands that has allowed people to shop with their money Launching Abercrombie and Fitch credit card was simply the best brand promotion in the history of marketing arena A unique point of Abercrombie and Fitch’s promotions is that it generally uses people with partial nudity Most of its advertisements have sexual overtones Moreover, it casts only store employees in its advertisements Abercrombie and Fitch has always maintained a set of impressive and stylish models The brand believes in helping people understand the fashion before they try it The brand has made exclusive use of classic collection and models for promotion and branding Abercrombie and Fitch surely has few impressive branding stories to share with the world and the upcoming marketing managers and has proved its worth over the 123 years and helped people enjoy some amazing style without worrying about the Status Quo and old paradigms 3.3 Positioning: Mike Jeffries- the CEO, promotes the brand through our models or brand representatives The company does not participate in any third-party advertisements in magazines, print ads, or television commercials Abercrombie and Fitch focus on the brand and lifestyle The people who shop at the store are supposed to be attractive, fit, and young Abercrombie and Fitch only hire good looking people in their stores, because attractive people attract other attractive people to shop in the stores Abercrombie and Fitch target the millennial and Generation Z age group The unique store environment in Abercrombie and Fitch is also believed to bring customers back into the store Abercrombie and Fitch have a rustic look in the stores, have a strong smell of cologne and perfume, and play extremely loud music to attract the younger consumer As of now, Abercrombie and Fitch position themselves a bit differently from competitors Abercrombie and Fitch let the public know only the attractive consumer can shop at the store The company positions itself to the “cool kid” in high school or the “cool” young adult We believe hiring “attractive” employees will bring in the right customer into the store Overall, Abercrombie and Fitch position themselves to sell products to an exclusive, “attractive” customer A&F wants to position the minds of our customers as a premium brand for young people, equity brands A & F made a very bold decision to position their brand in the minds of our customers, this strategy almost only world-class brands can do, we have failed to implement this strategy and not get what we want About ten years ago, A&F's marketing was very strong and it also had top and mind awareness Today, the brand has lost its appeal and is no longer eye-catching by customers, especially the young like it used to be In 2014, the brand suffered a loss, and since then the brand has lost awareness of a premium brand because its customers no longer feel connected to the brand +Position map in Vietnam: (High price) ● Zara ● Abercrombie & Fitch ●H&M ● Ivy moda ● Uniqlo ● M2 (Young) ● Full and Bear ● Dottie (Old) 17 ● Blue exchange ● Libe (Low price) => A & F's position map in Vietnam is different from America and other Asian countries Especially in terms of price, A&F's product price in Vietnam is almost always higher than in other markets MARKETING PROGRAM STRATEGY AND TACTICS 4.1 Product Line: With the majority of Abercrombie & Fitch's fashion lines, polo shirts have always been a staple of the brand These shirts are characteristic of fashion and always have collars However, if the Polo shirt line is the mainstay in Vietnam, it will be quite difficult to develop the brand Firstly, very few young people now wear collars Second, the weather in Vietnam in summer is quite hot, so wearing collared shirts will cause discomfort So Polo shirts will not be suitable for brand development To develop the brand in Vietnam, T-shirts will be most favored by Vietnamese customers There are not only two types for both men and women but also diverse models, many sizes to choose from xs to xxl In particular, the T-shirt is easy to coordinate without fussy the wearer With the price of only 280,000 VND, which is not too high compared to the common ground, it is easy to own for people with a normal income who want a branded shirt This is also the product line that A&F should bring to Vietnam because of its design and reasonable price And there are also many advantages to not only young but also older people can choose: + Simple design + Color variety + There are many shirt sizes to choose from so it is for everyone from skinny to fat Besides, there will be other products to choose from such as pants, dresses, blouses, coats for both men and women 4.2 Promotion: There will be three phases Stage 1: Pre-open This is the preparation time for the opening of a new store, so it is necessary for marketing to bring the brand image closer to the public Use advertising on social media like Facebook, Instagram or Tiktok to create meaningful content for life, design a small clip introducing the brand, create hastag on Printerest, Instagram Using public relation method to attract young people such as inviting famous pr for the T-line, also the main product of the company Stage 2: Opening Using Direct makerting method to organize outdoor opening event to let customers know the brand Applying the second tactic, sale promotion, is to give away a discount voucher in the first opening week With purchases from VND 400,000, you will receive a 40% discount voucher for the next purchase This will keep customers coming back to buy Stage 3: Day to day After completing the two phases above, it means that it is okay to be present in the Vietnamese market, it is necessary to offer promotions to retain customers Set odd prices instead of rounding prices For example, with a dress that costs about 400 thousand dong, instead of setting the price to 400, it only costs 399 thousand dong This is an effective tactic by hitting the buying mentality of the customer Although the difference is only thousand VND, but looking at it, the price will feel much cheaper because
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