Audrey COSTANZO Marketing Test
Tine Sven Hansen
11th of January 2010
Abercrombie and Fitch
Question 1: The 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 Technologicalenvironments.
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
Firstof 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 populationfrom 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 spiritand 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 priceproducts, the fact that Denmark has a high average income level make thinking that the positioning of the brand is in ad equation with the economic environment of this country for a new expansion.
Question 2: Market segmentation and target group
• Geographic criteria
Abercrombie and Fitch brand has stores implanted in United States, Canada, United Kingdom, Italy and will have anew one in Copenhagen Denmark in 2010.
The brand also sells all around the world thanks to its website.
A&F clothes can fit to urban population but also others. The urban population will know more stores and will be able to go more often hut the other population can also visit stores maybe not so often but buy more when they go there or order online at home.
Age & lifecycle:
A&F brand main focus is 18 to 22 years old people in a first place. But in a second place people from 22 to 30 are also a part of a largest target because it’s obvious that sales are made to people up to 30.
Men and women
People with medium to high income or who comes from high income household for the youngest ones. A&F positioning is rather high price levelwhich comes with high quality. Same positioning than Tommy Hilfiger or Ralph Lauren brands for instance but with prices a bit lower.
The target group generation is a rather young one from 18 to 22 years old people mainly and it can goes to 30. A generation early concerned about fashion and trends. People who care about appearance who wants to look confident and who can wear fancyclothes like more casual or sportswear ones according to the occasions.
People from upper social class in a first place because of the price positioning. It can be people with high income or people who comes from high income household.
But even people from medium social class could buy clothes from A&F brand maybe these ones won’t buy as often as the highest social class but...
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