SWOT Analysis

1. SWOT Analysis • Strengths • Strong presence in the e-commerce business • Strong brand portfolio • Strong identity & brand image • Trendy store layout • High quality products • Expansion of stores outside of U.S. including Canada and Europe • Weaknesses • Declining comparable store sales • Most products are overpriced • Fluctuating target market • Strictness on the “Look Policy” for employees • Has been involved in several controversies including religious discrimination and discrimination against a disabled person. • Threats • Counterfeit goods • Slowdown in the US economy • Lengthy supply chain due to out sources • Increase minimum wage in the US • Competitive or fluctuated E-commerce • Opportunities • Expansion in new markets: International markets • Development of new concepts • Increasing online sales • College licensing

2. Target Market • Based on the atmospherics of the store it is obvious that Abercrombie’s target market is young adults. - They attract everyone from middle school students to athletically fit adults • Culturally diverse groups such as the gay and lesbian community admire A&F’s store concept

3. Consumer Group Report • Young Digerati – Are the nation’s tech savvy singles and couples living in fashionable neighborhoods on the urban fringe.Affluent, highly educated and ethnically mixed. Young Digerati communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants, and all types of bars- from juice to coffee to microbrew. • Young Influentials – Once known as the home of the nation’s yuppies, young influentials reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for young, middle class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs and causal dining restaurants.

4. Abercrombie Psychographics • Fun – loving • Independent • All – American • Privileged • Good looking • Charismatic • Sex appeal * In order to remain current, Abercrombie, sends about 30 staffers to college campuses each month to chat with students about what they play, wear, listen to, and read.

5. Product hierarchy Basic Product: Clothing, Apparel, and Accessories. Expected Product: A mature look for teens, offered in multiple store locations offered in 47 different states. Augmented Product: Offer free tailoring and alterations on all A&F denim. Potential Product: A&F Home Furnishings Line.

6. Brand Position Evaluation Current Market Position: Future Market Position: • Important: • Currently selling to A&F target market without differentiation among age range. • Distinctive: • A&F has it’s own distinct “look” and has done well with separating itself from competitors. • No wild colors or ornate detail on any of the product. • Preemptive: • Using simple and clean design ideas and fabrics. • Affordable: • All pricing on home décor and Dorm Life products will be comparable in prices to A&F clothing. • Profitable: • Strong brand positioning among home good competitors. • - No other real competition in dorm décor. • Important: • More detailed target segment, within current A&F users. • Distinctive: • Dorm Life will have the same A&F “look” that appeals to A&F consumers. • All product can be mixed and matched, because the colors will all be simple and basic – A&F colors. • Preemptive: • Product will last years, due to the products’ simpleand timeless look. • Affordable: • Customer will always feel “high-end”, due to the customer’s connection with the Abercrombie & Fitch retail store. • Profitable: • Leader in college age home good lines.