IndexIntroductionContextSocial Trends and Social MediaStakeholder IssueSWOTAnalysis from SWOT: Force Field AnalysisCSRIntroductionAbercrombie & Fitch Co. was founded in New York in 1892 by David T. Abercrombie and Ezra H. Fitch. According to its marketing, A&F is “an iconic specialty retailer of high-quality clothing and accessories.” (10)The company's two segments include the Abercrombie & Fitch and abercrombie kids brands, as well as Hollister, launched more recently in 2000. For the purposes of this analysis, the focus will be on the Abercrombie & Fitch brand. Originally a sporting goods retailer, A&F has come a long way from its original function. (8) Today A&F caters to customers aged 21-24, with 270 stores worldwide. They emphasize diversity and inclusion through “effortless American style.” (10) Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayContextThe year 1992 marked another new beginning for Abercrombie & Fitch, when Mike Jeffries became the new CEO with a firm vision; sex sells. He is known as the creator of the modern A&F brand image. Sales were growing, as the brand became increasingly exclusive to America's attractive cool kids. Barring a few complaints, the brand first really found itself in trouble with the CSR in 2002, when a protest was launched against their sexual adverts. That same year they were sued for racist t-shirts that discriminated against Asians. In 2006, Jeffries was interviewed by Salon about his feelings towards A&F's target audience. The quote known throughout the world has become the icon of Mike Jeffries, and therefore also of Abercrombie & FItch; “In every school there are the cool, popular kids, and then there are the not-so-cool kids. Honestly, we chase the cool kids… A lot of people don't belong [in our clothes], and can't belong in us. Are we exclusive? Absolutely." This infamous interview brought A&F a lot of bad publicity, but it didn't spread online until 2013. (12) This is the year Abercrombie & Fitch's sales began to decline dramatically. (13) Arguably, the bad reputation resulting from the interview played a key factor in the decline. In 2016, A&F initiated a massive change in marketing, in order to reform the image of the brand that was disliked “Rather than buying clothes that symbolize belonging to an exclusive group, today's consumer celebrates individuality and uniqueness." – Fran Horowitz, president and chief merchandising officer of A&F. (11)) One might say this change was inevitable, taking into account the prolonged decline in sales and popularity of A&F However, whether or not the execution was successful is still debatable, and so the research question for this investigation is: “To what extent was Abercrombie and Fitch's 2016 rebranding successful?” Social trends and social mediaThe 2016 rebranding was a response to poor financial results for a few years.(1) However, it could also be considered a response to developing social trends, which A&F had ignored in its marketing policies. H&M, one of its main competitors in 2015, had emphasized diversity, while A&F pursued white “American children.” Models of different ethnicities appear in a video commercial released in 2016 to highlight the change in their unpopular brand image. (4) Ironically, just a year earlier Abercrombie & Fitch had even been sued for rejecting an applicant for a jobwork because she was wearing a headscarf. (5)Social media can be an attention tool of all kinds for companies. Abercrombie & Fitch used social media as a way to spread their reforms and new vision statement very effectively. They launched an online video ad, cleaned up their Instagram account, and completely reformed their website. (4) However, A&F had no problems with poor online attention. In 2013, blogger Jes Baker started an online campaign against Abercrombie & Fitch's limited size policy for women. The aim of the "Attractive and Fat" campaign was to challenge A&F's branding efforts. “I challenge the separation between attractive and fat and assert that they are compatible regardless of what one believes,” Baker wrote in a public letter addressed to the former CEO, Mike Jeffries. (3) Body positivity is a social trend that encourages everyone to love and respect their body as it is. This is mainly associated with overweight women. Prior to 2013, A&F did not offer a size beyond a 10 for women. The average American woman wears a size 14, so no doubt Abercrombie & Fitch was emphasizing its unethical exclusion policy.(15)Stakeholder IssuesFor a company as large as Abercrombie & Fitch, customer satisfaction plays a very important role. important. Customers are a major external stakeholder group and satisfaction has been very low for A&F. In 2015, the company achieved its lowest ever results in the American Customer Satisfaction Index. (ACSI) The 2016 results are also low, but there is a 17% increase compared to previous years' results. The ACSI is published quarterly, so the results collected since 2016 are from after the rebranding. (6) It is possible that the 2015 customer satisfaction results were also a trigger for the change. From a more in-depth analysis of the ACSI it can be concluded that according to this index the rebranding was successful in terms of customer satisfaction. The latest records, from 2017, show that A&F is no longer the "most hated retailer in the US", and the results have improved compared to 2015. However, these results are limited, as the results are only collected from the US, and only consumers interested in the topic responded to the ACSI.SWOTA survey. The SWOT analysis is a business tool that evaluates the strengths, weaknesses, opportunities and threats of an organization, to observe the current situation of an organization agency. For this investigation I used a SWOT analysis to better understand A&F's position and possibilities after the rebranding. Strengths Global location, stores and awareness worldwide (10) Single retailer (male models in stores) Well recognized logo A large retail portfolio Strong heritage Weaknesses Ethical issues in the past (racism, sex, exclusion)” coolness” lost among young customers Reputation for controversial management (Mike Jeffries) Opportunities Rebuilding a new brand image Entering a new market Reaching new customers Threats Competition from other fast-fashion trends offering a cheaper option (HM , Zara, Forever21) Differentiation becomes difficult (16) Unstable brand image, if constantly changedStores constantly closing (17)SWOT analysis: From the SWOT analysis conducted, it can be interpreted that, despite the multiple strengths of the brand, the its position on the market is rather unstable. As a mentioned threat, competition is a major part of the difficulties the brand faces after rebranding. The marketof the luxury lifestyle clothing that Abercrombie & Fitch has entered into is very broad. A&F has started offering products very similar to its competitors, which are not typical A&F clothing, but the prices are still kept high. This has put the brand in a position where competition is very intense.(19) Due to the competitive nature of the industry, differentiation has also become very difficult. Since most brands seek a unique selling point to distinguish themselves from the competition, reforming the brand image will require the brand to create a new unique selling point to differentiate itself. Therefore, since all brands aim for a unique brand image, it is becoming extremely difficult to stand out from all other brands. (16) (20(358-360)) The difficulty of differentiation in the industry is closely related to another threat that A&F faces, namely rebranding. They have a very unstable brand image. Since Mike Jeffries retired from his position as CEO in 2014, reforms have become increasingly radical. As? demonstrate! However, the SWOT analysis also shows that the brand has multiple opportunities in the new market. Even though their brand image has been unstable in recent years, it has its advantages. It offers the company the opportunity to create an improved brand image, which is sure to attract media attention due to the level of brand awareness achieved. A&F also has the opportunity to increase its sales, as it is reaching new customers by expanding its target segment from teenagers to seniors. (23) In addition to broadening the target audience by age, it has also become more inclusive towards customers by emphasizing diversity through models from different backgrounds. (24)If we weigh the strengths and weaknesses analyzed in the SWOT, it can be seen that A&F has many strong aspects, but is weakened by its controversial past. They have stores in 16 countries, so they are known globally. Thanks to their unique heritage dating back to 1892, they have achieved a strong position as a retailer. Their logo is well recognized and they offer a large portfolio of clothing. (10) On the other hand, the well-known logo and strong position have also become one of their weaknesses, as it can still be associated with the infamous Mike Jeffries interview in 2006. According to the Guardian, A&F has lost its "coolness " " among teenagers before the rebranding.(22) Therefore, its reputation with customers is constantly uncertain, as a sudden mass effect could put A&F in a bad light again.Force Field AnalysisA force field is a business tool. used to evaluate a decision.For this essay I used a force field analysis to see what conclusion it would support considering my research question.Was the rebranding of A&F in 2016 a success?Driving Forcesmore ethical brand image 3better CSR 4improved customer satisfaction 5expansion of target audience 3financial?Constraining forcesNo improvement in sales 5Loss of image/unique brand position 3Loss of loyal/old customers 2Financial?Since A&F's reputation for a niche market had gone viral in 2013 and caused problems to their success, it was quite predictable that a transition was imminent. When A&F finally bluntly advertised a new start for the brand in 2016, some customers considered it superficial. (26)Table 2 illustrates the changes in quarterly comparable sales for Abercrombie and Fitch from 2014 to 2016. Mike Jeffries retired from his position as CEO in December 2014. (18) From this graph you can perceive that throughout 2015, The.