Report Extract PESTEL & SWOT

Political-Moral rights issues with A&F. So, styling/campaigning effects have to reflect back to the brand identity and be more consciously aware considering what’s right, to build reputation/image. 

Action of UK following through with Brexit would cause impact with purchasing products for consumers and decisions of exporting and importing products and the costing. 

Economical- Exchange rates may differ due to economical currency change; the brand already struggles with making sure the currency in Europe is correct. Currently an average consumer would save 40% more in America for purchases. Within the retailer growth industry, the growth revenue is 1.36% but A&F is 0.6% and in the last 5 years is -3.43% which means their current marketing has not helped the brand’s growth or sales. 

Social- Looking at the social demographic A&F are currently they need to be more aware of the spending habits of these consumers as the students they are targeting will be aware of money and overpriced products would lead them to competitors. 

As society is changing the brand has placed less emphasis on promoting itself with ‘sex’. However, the public’s perspective of the brand has not changed. A&F have changed the old position of the brand to a new friendly brand. This reflects back to teens with their campaigns showing an awareness of equality, diversity and body changes and promoting this more. 

Technology- Methods of using technology could help with less money changes within the chain, to make less steps, so costing is a lot more efficient. For example, getting a simple, quick cost-efficient transportation system between countries. The use of iPads in-store can help to make it simpler for staff to find clothing online if a customer wants a certain item in their size and cannot it. 

 Legal- Discrimination rules were found against the brand and they have had to deal with law suits facing £200,000. A&F also were founding lacking in health and safety, as in December 2012 in Bangladesh a manufacturing factory A&F owned was set on fire. This led to 2,515 people dying or being injured from suffocation. There are an estimated 86,400 sweatshop workers working for A&F in a number of LEDC countries, this is affecting the legal registration of health and safetywhich A&F need to be aware of. 

Environmental- A&F have a sustainability event held for a week, this encourages the public to be make the environment more sustainable. This could be expanded into ethical manufacturing (being aware of denim and waste products) and promoting this more would create a new positive brand image/reputation. 

Strengths- A&F has a strong social media presence, constantly using it to communicate, posting 3-times a day. This is good for customers to see new arrivals or reflect problems, allowing communication through the app, live chats, emails and social media gaining an immediate response. A&F was a popular brand known globally, allowing an opportunity to gain an international marketing gaining new attention.  

Weakness- Social media is a key in gaining attention, especially Instagram as there is 4x more engagement, but A&F are not gaining the correct attention/promotion as it currently is not connecting with current consumers, which is causing confusion. 

A&F have Hollister as a separate brand. However, Hollister currently is working in the same market and has been compared as a competitor, due to showing similar characteristics for branding/styling. Causing A&F to compete and potentially lose their consumers.

Opportunities-To carry on using diversity in campaigns, but promote through social media, showing new perception of the brand image and highlight the marketing, rather than uploading the same content.

An opportunity to expand into a new market. As A&F original history comes from outdoor gear up until it became a ‘casual luxury’ fashion to ‘high-street’. This could be combined to create outdoors high street, fashion, where it creates stylish trendy clothes for outdoor wear. It's currently not in the market so A&F can be more involved, also separated from the past, allowing a new build in reputation and brand image/ identity.  

Threats- Depending on the new strategies, this could fail and would take a long time in development, but if used correctly A&F could change and promote the new idea, moving away from the controversies. Also, changes in the market may likely provide new competitors, such as Rab, North Face and black, etc., these competitors are in the current outdoor wear, so A&F have to be aware and so use marketing to be unique.