Visiting the website of J.Crew and Banana republic, it seems that both of the companies are offering direct competition to Abercrombie & Fitch but there are yet significant differences that are visible. It seems that Abercrombie & Fitch and J.Crew are positioning themselves according to the weather conditions whereas Banana republic is targeting and positioning regardless of weather conditions, anyone who thinks that the clothes are suitable can walk in and buy them. A common strategy used by all three companies is providing the internet surfers an opportunity to order online via websites, while there is another apparent difference between the J.Crew and Abercrombie & Fitch accompanied by Banana republic, the difference is regarding the jewelry being offered by Banana republic and Abercrombie & Fitch which is not available at J.Crew. Also, a major difference is that J.Crew and Banana republic are not specifically targeting the kids which could make the huge difference as it made in the case of Abercrombie & Fitch. Nevertheless, all three are direct competitors to each other especially if they are tested through their online service which sidelines the number of stores they have, the revenue they are generating, and many small issues.
Although the stores are doing fine with the current strategy it seems that yet something could be done to have improved sales and an enhanced target audience. The two stores namely J.Crew and the Banana republic could target kids while keep on targeting their parents as in this case the initial buyer would be the parents but in very few cases it could be kids directly. They could further segment the market into under 12, under 15, and under 18 in this category. It is all about providing the kids with the motivation that the stores are specifically serving them apart from others, while it may have few problems that we’ll discuss in the last question. “Competitors contend with each other to establish and control linkages between the distinguishing attributes of their products and one or more personal values or goals that, in turn, are associated with personally relevant psychological or sociological rewards or advantages” (Olson, Reynolds 217: 2001).
*The issue, in this case, is not directly influencing the stores such as Sears and JCPenny because for such stores the initial sale is not directly being generated through clothing but nonetheless the business can get affected because of such competition given by Abercrombie & Fitch. Mostly, the people who visit big stores such as Sears have to buy other stuff which might be grocery or some other useful everyday item, as long as we are discussing the clothing, we have to keep in mind that the consumer behavior is different when it comes to such products. People prefer to go for buying clothing when they have enough time and they are not in rush, further they prefer to try clothes and identify if they suit them, only in such conditions should we expect a positive response from the buyer.
The stores such as Sears or JCPenny could target people willing to buy apparel through having an entirely different entrance and a direct one which could make the buyers avoid a whole lot of walking into the store and then reaching the place where to have clothes from. This could easily bring the buyer and perhaps motivate him/her to make a purchase from the very same store he/she would have avoided otherwise. The other strategies could include promotional efforts which could force parents to leave their children at the clothing department within the store while they are buying grocery so that they do not get irritated by their children while they are shopping, this requires a lot of surety that could be provided to parents regarding their children. The discounts and coupons could also help the department stores achieve any such goals regarding the sale of apparel, such coupons could be distributed at various schools and colleges directly targeting the kids and the youth.
*The Hottopic although seems to be very much competitive to Abercrombie & Fitch but in actuality, there are great differences. Hottopic is a bit freaky in a way that it seems that it is targeting freaks in the society which its name even suggests and exploring more it is revealed that it is emphasizing the girls of the modern society with minor emphasis on the boys. Unlike Abercrombie & Fitch, Hottopic is not targeting the kids in the society, however, Hottopic is trying to bring every modern trend in view regardless of the weather conditions and what teenagers prefer. Hottopic is eventually targeting those people who are viewed slightly different in the society, perhaps such people are willing to show that they are very over conscious about the trends in the society and they are more fashionable than the ordinary people whereas the target audience of Abercrombie & Fitch is very much conscious about how the society views them and also it is following the fashion trends that are supported by the weather conditions.
At Abercrombie & Fitch, it is relevant to say that people (target audience) are conscious and have a normal perception and view on life, they have a respectable image, and whatever they buy or wear suits their personality whereas at Hottopic, people are having a different view on life and they want others to view them the way they are viewing themselves which at times is unacceptable, they have relatively a different image which differentiates them from the normal society and they are involved in fashion regardless of what others think of it. The buyer behavior for people targeted by Hottopic is limited to the satisfaction of their psychological needs while they might have different social and self-esteem needs. The demographical segmentation of both the stores seems to be more or less the same but a huge difference can be perceived when it comes to other classifications. Winter said in 1984, “In extreme cases, segmentation becomes an end unto itself rather than a marketing tool. Segmentation efforts further suffer from a lack of casual relations between the defining characteristics of a segment and the behaviors of interest” (Olson, Reynolds 284: 2001).
*Although the revenue is suggesting that Abercrombie & Fitch is doing exceptionally well in the business but these days everything is possible and there should be proper contingency planning. It seems that the company is targeting the consumers who are very free and prefer to implement their ideas on their bodies which are acceptable in the entire society but at the same time, there could be a change in the tastes of consumers because the media is getting stronger and stronger and so the changes take place rapidly in the fashion industry, nonetheless Abercrombie & Fitch could be very competitive as it could expand the target audience list and can cater even people who are pertaining to the lower class than those who are having middle or upper class. The company could bring the discount plan and the coupon plan to target those people representing lower class which means that the company would not have to have a separate production but the company could provide slightly outdated fashion to those who cannot afford the higher prices, but again this could only and only be used as a contingency plan since at this moment it could be risky to target the lower class because this would for sure ruin the Abercrombie & Fitch reputation among its current target audience. Therefore it is possible for Abercrombie & Fitch to remain popular among the younger generation for years but some compromising situation is possible in selecting the target audience the company would be serving.
*Firstly, it is vital to know that we cannot really count the kids’ section as a diversification because the company’s initial purpose is fashion, as long as its fashion and clothing, it could be said that the company has expanded its target segments but it is not diversification. Yet there are advantages and disadvantages, the advantages may include the fact that by the year 2010, 34 million people between the ages of 12 and 19 are estimated which is quite a big amount and it can be very lucrative for Abercrombie & Fitch to target such people, also the marketing concepts predict that it would be free publicity and marketing of Abercrombie & Fitch as its clothing is very different and at times represents it as a well-known brand. The disadvantages can also be there, people who are above the age of 19 can think of the brand as something suitable to kids only or too immature people which could cost Abercrombie & Fitch some loss, in fact, this change in view could be very costly. It has been seen that most of the companies that are targeting only a particular segment are very well settled in the business, Levis has no clothing for kids and further, it only targets people who want to be in fashion and are young. Changing the segment could affect Levi’s reputation as young men would think as they are wearing a common brand worn by kids and hence there would be no differentiation left. However, it could be profitable on the company’s side while it could be very disappointing on the consumer’s side and young men and women would sooner be switching their brand. Implementing such a strategy could naturally shift and divert the attention of the target audience while the company could have a new target audience in its targeted segment but at the cost of another segment which is likely to suffer because of any such actions.
Reference
Olson J.C. &Reynolds T.J. (2001), “Understanding Consumer Decision Making: The Means-End Approach to Marketing and Advertising Strategy”, Mawah, NJ: Lawrence Erlbaum Associates.