Market-Branding Case, Essay Example

In A&F’s flagship store in Tokyo, floor Staff dance, joke around and sing giving the impression that they aren’t hired to serve customers, but to represent the brand image and the A&F lifestyle.

In a highly service oriented society such as Japan does A&F offer the level of service expected from Japanese consumers?

There is a reason why posters are placed up in stores. In a form of marketing, these posters serve as mark of the products’ identity. Hiring service staffs that would live to present the product’s lifestyle suggestion and branding identity is somewhat a negation to such role of marketing posters. Relatively, while there could be a positive impact on utilizing this uncommon form of marketing in the country, the market would surely still long for the regular forms of service that they have been accustomed to in other stores which would likely hurt the A&F shop if they continue to market their brand through “representing it”  than in servicing the people with what they need.

Can a retail store be effective in having retail staff “fit the brand image” while at the same time offering great service?

If the staff members are trained to do multi-tasking, then perhaps, such an approach would work. Nevertheless, service should still remain to be the focal point of the operation and not the “living the brand” aspect of the store’s function.

Witnessing the recent market trend of lower priced, no frills and /or fast fashion retailers, i.e. Zara, Uniqlo, H&M, does A&F position themselves to effectively compete with these brands in the Japanese market?

Considering that A$F changes its fashion statements slowly compared to others and is priced at a higher cost than its competitors show how jeopardized its position is in the market. Although A&F might be well recognized by its loyal market already, it does not help that it does not compete in pricing and style innovation alongside its competitors especially in an industry that embraces constant changes and innovation in style.

A&F’s products are priced high but offer little product differentiation from local competitors such as Uniqlo.

How does A&F’s pricing strategy affect their market growth potential in Japan?

Japan is known for change and innovation especially in products. Fashion may be in a secondary position than that of technology but it still remains an important aspect of the market. Hence, pricing the products at a higher range than its competitors would affect the growth of A&F in a negative consideration. This especially insists on the emergence of new performers in the industry apart from their competitors getting the larger scope of market loyalty.

Why do you think they adopted this premium pricing strategy? 

One part of branding strategy is the retaining reputation that a brand insists on the market. It is assumed by A&F that if they remain at a high price, the notion would be that what they offer never loses quality and remains at a reputable recognition as it did the first time it has been introduced in the market.

Shall they continue to utilize their premium price strategy or go for more market share with lower prices? 

The premium pricing strategy usually applies in regularly consumed products that are necessary for survival such as food. Nevertheless, although clothing is part of the basic needs of the market, there is something that separates the fashion industry from such labeling. The changing attitude of the target demographics of the industry also contributes to the shift of attention that fashion businesses recognize in line with their capacity to retain and expand in the industry. The changes and adjustments they embrace include pricing differentiations. If A&F wants to survive the competition, sticking to the culture of premium pricing should be set aside and be adjusted accordingly.

Do you think if A&F decides in the future to lower their prices in order to be more competitive will it then hurt brand image? 

While the market would think differently of the brand image that A&F has already established, it is still viewed that the company would regain strength especially when the market already recognizes the fact that it was just the price and not the quality that was lowered down so as to cater to the needs of the clients it hopes to serve.