Abercrombie & Fitch case study exam - Essay Example

Another example is the complaint mail and lawsuit threats that A&F received for their racy and explicit ads. There, the activities in the micro-trading environment of A&F were influenced as the company decided to take measures against the complaints. B. There are several major macro trends that are impacting on A&F’s sales performance in the UK. The first is the economic trend of high cost of overhead. Secondly, the products are being sold at a considerable mark-up from United States prices, which is a competition trend.

Third, a social trend is that the fashion scene in the UK is similar to that in the USA, but must also be followed carefully to ensure that the products that hit the stores are the ones that customers want. The fourth is a social trend mentioned in the case brief is that UK customers are attracted by that souvenir appeal. Customers previously would only buy A&F merchandise on a visit to the USA, and this is affecting the company’s popularity now that they have moved to the UK. A. The Augmented Product model is represented by 3 circles: inner, middle, and outer.

The inner circle represents the core products that are seen at every A&F store; i.e. basic jeans and logo t-shirts. These are expected by every consumer at every store. The middle circle represents the products that are just beyond the basic elements; i.e. clean and comfortable stores. In order to be classified as a quality provider, A&F needs these elements. The outer circle represents the surprises that customers are not expecting if they have never been to the store before; i.e. the loud music, lighting, and fragrance.

This is what really sets them apart from their competitors. B. They take painstaking care to always be abreast of the latest clothing looks and they even design their stores (with the loud music, lighting, and fragrance) to appeal to the trendy