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Abercrombie & Fitch IMC Plan Document

Background

Abercrombie & Fitch, once popular for its sexy models and logo heavy apparel,

have been experiencing falling sales for 11 consecutive quarters since 2012 (Shen).

Stores are closing around the rate of 60 per year (Gensler) as the teen retailer fails to

adapt to shifting consumer tastes towards cheaper fast fashion and body positivity. Under

these pressures, A&F is now going through major merchandise and brand image

transition with less racy advertising, more plus sized clothes, less logo, and toning down

its stores’ nightclub vibe (Sanchez).

Our market survey shows that when it comes to shopping for clothes, people care

most about low price, having a range of sizing options, and high quality. A&F has

already addressed their issue with sizing ranges; however, since offering both low prices

and high quality is a difficult strategy to pursue, we have chosen to emphasize A&F’s

already high quality and attempt to reshape A&F into a likable lifestyle brand. Presently,

fast-fashion retailers like Zara and H&M are leading the retail market in sales. (Halzack).

One type of company competing well with these fast fashion brands are lifestyle brands

that emphasize quality while connecting with consumers through brand storytelling and a

strong brand image (Budds). Thus, our IMC thesis is to position A&F as a lifestyle brand

that can compete with these fast fashion brands. While A&F might not be thought of as a

lifestyle brand now, they are closer to that classification than to a fast fashion brand.

Objective and Target of the Campaign

Our research found that A&F was the least liked brand among 22 companies

under the specialty-retailer category according to the American Customer Satisfaction

Index (Shen). Therefore, with regards to the CEP, the primary goal of our campaign is to

increase liking among those who are already high in knowledge and awareness

(Appendix, page 2). This will increase the number of people who move on to the next

stages of the pyramid, including purchase.

The primary targets of our campaign are urban high school teens and young

adults. We are aware that the current desire of our targeted segment is to look trendy and

cool and feel part of an “in-group”. Concurrently, our secondary target market will be

parents, as they have superior purchasing power for their children. While we need not

target both groups, our strategy will not be one that alienates parents. In other words, we

will avoid being overly racy with our strategy (Appendix, page 2).

The Campaign and its Basis

With these objectives in mind our new brand positioning statement is as follows:

“For young adults aged 13 to 15, Abercrombie & Fitch is a teen lifestyle fashion brand

that offers effortless quality because the clothes are built for your fun, active lifestyle.

A&F is cool and laid-back.”

In order to communicate this new BPS, our IMC campaign is called “Slow Down

and Live” and it focuses on reinvigorating the brand image to engage more with today’s

social media connected teens. As mentioned above, lifestyle brands are able to compete

in the fashion market by creating a strong brand identity that tells a story and connects

with the brand’s customers in a personal way. As such, our campaign will focus on

enhancing A&F’s image to more easily connect with our customers, thus solidifying

A&F as a lifestyle brand that is worth spending a few extra dollars for superior quality.

Further, our campaign will also be positioned as a category essence type of strategy,

where we will try to resonate with our target’s concerns of looking effortlessly cool. We

chose to do this because we understand that in such a crowded space like the fashion

market where it is difficult to differentiate with PODs, it is important that consumers

know that we care about their primary concerns. An outline of the full campaign can be

found in the slides attached in the appendix.

The basis behind using social media influencers (YouTubers and bloggers) in our

campaign comes from takeaways pertaining to buzz marketing and using spokespeople.

Also, we recognize that the primary contact points for teens are through social media

channels and online sites. For our target market of teens, these influences are their

celebrities. Additionally, since most teens recognize that these influences are still regular

people, it gives an advantage of being relatable. In fact, 73% of teens find YouTube stars

more relatable versus only 45% to traditional TV and movie celebrities (Tech Insider).

Research also shows that influencer marketing really works. A study from Burst Media

cited by Ad Week found that influencer campaigns earn $6.85 for every $1.00 spent

(Coffee). This is a great return on our investment.

Further, we believe that the buzz marketing aspect will work well for us due to the

Fundamental Attribution Error, Self-Perception, and Conative Approach. Fundamental

Attribution Error means that consumers will not sufficiently discount that the influencers

they follow are incentivized to talk about and wear A&F. By encouraging consumer use

of the #slowdownandlive hash tag, consumers are encouraged to advocate for and take

action on behalf of the brand, taking advantage of the self-perception theory. Similarly to

the Sony case discussed in class, consumers will try to use the hash tag to get featured on

A&F social media pages. Finally, by giving influencers discount codes for their fans to

use, we can help facilitate trial of our clothes through the conative approach. Nonetheless,

we will still incorporate some traditional media advertising via magazine ads because, as

we learned in class, organic buzz should follow, but not precede traditional advertising.

Furthermore, since A&F products can be categorized more as a low interest

product than a high interest one, using spokespeople will increase liking. By ensuring that

our many influencers are attractive and likeable, we will enhance the chances of success

from this aspect of the campaign. Lastly, we will be using a large number of influencers

used to minimize the negative effects from the 6 Deadly D’s (Destroy, Dilute, Defect,

Distract, Die and Dominate) and any other controversies that may arise in the future.

For the guerilla marketing aspect of our campaign, we will implement the “Slow

Down” walls. These walls have three characteristics: bright colors, an engaging quote,

and an interactive element. For example, a bright red wall would have the quote “Stop

and Smell the Roses” alongside a painted rose. The bright red makes the wall stand out

while the quote and rose encourages interaction. The A&F logo and #slowdownandlive

will be small. Ideally, people will slow down to take a picture with the wall and post it to

social media. Locations of the walls can be found on the A&F website.

We chose to use this approach over a soft-sell image approach because the latter

tends to be ignored and forgotten quickly. On the other hand, we believe that the “Slow

Down” walls will successfully encourage memorability, as it induces consumer

interaction. We will be taking advantage of a current popular trend among teens and

young adults to take pictures in front of walls – such as Paul Smith’s Pink Wall and the

Global Angel Wings Project Wall – and post them on Instagram. Furthermore, the “Slow

Down” walls will allow for a metacognitive route to persuasion by acting as a surprise

factor that can break down defensive barriers. When passersby’s first interact with the

wall, they will likely not notice the A&F branding. After taking pictures and actually

taking the time to slow down and take fun pictures, they will be in a happy, relaxed

mood. With the barrier broken down, once they notice that the wall is sponsored by

A&F, they will be more willing to associate the laid-back, slow down and live message

with A&F. This is similar to the Budweiser case discussed in class where people were

invited to taste beer, and only after they decided that they liked it, they were told that it

was Budweiser.

Metrics and Conclusion

Since the goal of the campaign is to increase liking, relevant metrics for success

will be tracked to evaluate the campaign’s effectiveness. The slides in the appendix have

an outline of which metrics will be used to determine success (Appendix, page 6).

Finally, Abercrombie should consider challenges ahead. The brand still faces

competition from fast fashion, and by choosing to remain a lifestyle brand and emphasize

high quality with higher prices, A&F may not capture people who are looking for cheap

clothes. However, by building up the brand’s image and liking among the target market,

we hope that teens interested in the brand will consider A&F clothes to be a worthwhile

purchase. Further, though some customers might not be receptive to the new image, we

believe that the new image will attract new customers without alienating our current base,

as we are maintaining an image that is aspirational yet relatable. In the future, A&F

should continue to use the influencers who generated the highest number of discount

code uses, and could structure new campaigns around certain times of the year such as

back to school, winter holidays, or spring break (Appendix, page 6).

Works Cited

Budds, Diana. "Five Storytelling Strategies For Creating a Lifestyle Brand." Fast Company.

Fast Company, 12 Nov. 2015. Web. 7 May 2016.

Coffee, Patrick. "Study: Influencer Marketing Pays $6.50 for Every Dollar Spent."PR

Newser. AdWeek, 26 Mar. 2015. Web. 7 May 2016.

Gensler, Lauren. "Abercrombie & Fitch Surprises Investors With Same-Store Sales Gain."

Forbes. Forbes, 2 Mar. 2016. Web. 7 May 2016.

Halzack, Sarah. "Aeropostale Files for Bankruptcy, Plans to Close 154 Stores."The

Washington Post. The Washington Post, 4 May 2016. Web. 7 May 2016.

Sanchez, Karizza. "Can Abercrombie & Fitch Be Cool Again?" Complex. Complex Media,

24 Mar. 2016. Web. 7 May 2016.

Shen, Lucinda. “This Is The Most Hated Retailer in The U.S” Fortune. Fortune, 25 Feb.

2016. Web. 7 May 2016.

Tech Insider. "Why Teens Idolize YouTube Stars More than Hollywood Celebrities." Tech

Insider. Business Insider, 11 Nov. 2015. Web. 7 May 2016.

!

Appendix:

Presentation Slides

IMC Plan

Background Objectives Campaign Basis Evaluation

AgendaI. Background

A. Background of Abercrombie & FitchB. Industry TrendsC. Competitor Analysis

II. ObjectivesA. Communications Effects PyramidB. Target Market C. New Brand Positioning Statement

III. CampaignIV. Basis V. Evaluation

Background of A&F


Key Points

● Declining sales

● Merchandising and

brand image transition

● Less sexy models,

more toned down vibe


Industry Trends

Fast fashion

Decline of traditional mall stores

Body positivity

Online & mobile shopping

Sustainable & socially responsible brands

Lifestyle brands

High volume of in-store sales

Sex Sells

Emphasis on brand name on clothes

Previous Current Future


Competitor AnalysisFast Fashion Lifestyle

Objective of Campaign


Convey Brand Personality: Emphasizing an adventurous, youthful personality that consumers can relate to

Revamp Social Media Presence: Creating a lifestyle-focused social media profile with subtle A&F logo features

Increase Liking With Target Consumer: Address low liking that can then boost preference, trial, and sales

Communications Effects Pyramid


5%

20%

25%

40%

70%

90%

Regular use/ Repurchase

Trial

Preference

Liking

Knowledge/ Comprehension

Awareness

Based on surveys of 70,000 consumers, Abercrombie &

Fitch was the least liked store among 22 companies under specialty-retailer category.

Target Market


Own: Older Teens, Young Adults

Attract: Young teens, tweens

Accept: Parents

Finding a POD


FOR: Lifestyle Fashion BrandThis is a very crowded

category where finding a POD is difficult. Many

brands offer similar quality and price, so we have chosen a POD that

also encompases an image.

Therefore, we are pursuing a category essence strategy.

POD: Effortless Quality

FOR Goal: Quality clothes that reflect customer’s lifestyle

A&F

RTB: Clothes built for fun, active lifestyle

Comp.

“For young adults aged 13 to 25, Abercrombie and Fitch is a

teen lifestyle fashion brand that offers effortless quality because the clothes are built for your fun, active lifestyle.

Abercrombie and Fitch is cool and laid-back.”

New Brand Positioning Statement


#SlowDownAndLive Campaign


OfflineFashion Magazines

Guerilla‘Slow Down’ Walls

Image-based and soft-sell, three-pronged approach:

1. Online aspect - Fashion Bloggers, YouTube Stars, #Hashtag, Instagram2. Offline aspect - Fashion Magazines3. Guerilla aspect - Something to do with CSR

Overview of Campaign


Image-based, Category Essence, Reach Campaign

Online#Hashtag

Fashion Bloggers

YouTube Stars

Instagram

Landing Page

1 2 3

Increase Buzz via Celebrities


YouTube Stars Fashion Bloggers

- Stars wear A&F clothes in videos- Personalized discount codes for

stars to promote to viewers

- Bloggers wear A&F clothes and utilize #slowdownandlive

- Personalized discount codes

From...

Redesign Instagram Account


To...

Revamp Landing Page


Key Points

● First thing new customers see when they come to shop

● Says “Slow Down and Live”

● Includes pictures of influencers from the campaign hanging out

● Ties the campaign together

Slow Down And Live

Time to relax and live a little

Feature in Fashion Magazines


Key Points

● Similar feel to the landing page● Photoshoot for the ad uses influencers as

models● Copy for ad talks about ways to

#slowdownandlive this summer in your Abercrombie clothes

● Reach>Frequency: Ads used to kick off the campaign. Only need one ad per magazine in one issue

“Slow Down” Walls


Bright pop of color that stands out from surrounding environment

Minimal Text

Branding is small and not the first thing someone notices

Walls painted in major urban centers and near college campuses

Encourages posing and interaction with the wall

Hashtag promotes sharing

Buzz Marketing/Spokespeople


YouTubers and Bloggers exist in a space between “celebrity” and

“regular people”

73% of teens feel close to YouTubers vs. 45% feeling close

to TV/Movie stars

Buzz Marketing


Consumers who post pictures

#slowdownandlive will feel more loyalty and

allegiance to the brand

Personalized discount codes promote trial by

new customers or people who might not

have previously thought of buying A&F

If influencers wear Abercrombie,

regardless of whether they were paid or not, their followers will still develop a positive link between them and the

brand

Fundamental Attribution Error

Self-Perception Theory Conative Approach

Spokespeople


By using a large number of influencers with slightly different but overlapping fan bases, we should be able to dilute any of the negative effects associated with the 6 Deadly D’s of

Spokespeople

The Walls


Relevant

Surprising

Interactive

Visualization

Capitalizes on trend of millennials posing with walls on Instagram (see Paul Smith pink wall in LA)

People interact with wall before realizing that it’s an advertisement, especially an ad for Abercrombie!

Encourages people to pose with it and post about it on their social media

While this doesn’t help people visualize themselves with the Abercrombie product, it ties them into the new brand image, which should help increase liking

Metrics for Success

Background Objectives Basis EvaluationCampaign Evaluation

Number of new followers

Use of hashtag

Pictures with the walls

Engagement on posts

Formal Market Research

Analysis of positive and negative sentiments on

social media

Track use of each personalized coupon

code to see which influencers generated

the most sales

Coupon Codes Social Media Interaction Attitude Shift

Looking ahead

Background Objectives Basis EvaluationCampaign Evaluation

Analyze use of coupon codes to decide which influencers to partner

with in future campaigns

Run similar campaigns around events such as

Back to School, Holidays, Spring Break,

Festival Season, etcPaint more walls in new

cities, change up wording if campaign

slogans change

Conclusions

Background Objectives Basis EvaluationEvaluationCampaignCampaign

When planning a buzz marketing campaign,

think of who your target customers would listen to

When there is no clear POD, brands can use

an image-based category essence

strategy to promote liking

Lifestyle brands can be both aspirational and relatable with the use

of the right imagery or spokespeople

1 2 3

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