Audrey COSTANZO Marketing Test

Tine Sven Hansen

11th of January 2010

Abercrombie and Fitch

Question 1: The Macro environment

Macro environment

A lot of factors a company can’t control or master will have an impact on its sells. The macro environment includes Political/legal, Economic, Ecological/physical, Social/cultural and demographic and finally Technological environments.
Some of them will have more or less impact according to the type of product or service.
We need to identify which ones will have to be taken into account and how could they influence the marketing strategy.

In the A&F case the ones which seem to be relevant and useful to analyze are the followings

• Socio cultural and demographic environment

The demographic environment

First of all the average age of the population will have an impact on the quantity of sales. According to target group’s age of the product it will be more or less interesting to enter a market.

Second of all the international population of Copenhagen is a good thing for the brand because in that way not just Danish are concerned about the brand and the new store of A&F but also all the population from everywhere who will come to this touristic and famous city. Moreover it’s a good place to enter the Scandinavian market because people from Sweden and Norway who will come to Copenhagen will know the brand, its products and will be able then to order online when they will be back in their home country.

The socio cultural environment will influence sales of the brand. First of all the spirit and image of the brand can fit with Danish lifestyle of the target group: casual but sexy in the same time, energetic, reflecting an aspirational attitude, following trends.

Second of all Danish are concerned about appearance and it goes with fashion.

• Economic environment

Level income of the Danish population will influence sales of the brand. A&F selling high quality and high price