QNT 275 Business Decision Making Project, Part 3

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Abercrombie & Fitch Co. is an older company that was founded in 1892 by David T. Abercrombie and Ezra Fitch. The company headquarters is located in New Albany, Ohio. Abercrombie & Fitch has over 1000 stores located throughout the world. Despite being much larger and more expensive than Aéropostale, Abercrombie & Fitch is in direct rivalry with Aéropostale (Lepore, 2011). Abercrombie & Fitch started as an “outdoor gear shop,” but over time it became a retail clothing store targeting teens (Lepore, 2011). Abercrombie & Fitch fell into bankruptcy in 1977 and closed. In 1988 the company reopened with a new focus on selling trendy clothing for teens. This model worked and sales were extremely successful. Abercrombie & Fitch has expanded into several brands, including Hollister and Gilly Hicks (Lepore, 2011). Abercrombie has done well financially in recent years but being in a trendy clothing retail market, the company must continue to find the next most popular styles and products. The following report presents a means of marketing research that utilizes data mining to find patterns in the store’s current customer and sales base.

. Current methods of data gathering are inadequate due to the overreliance on surveys and focus groups. These sources of data collection can be easily manipulated or biased (Solomon, Marshall, & Stuart, 2011). A relatively new method, born out of information technology, is the data mining tool. Data mining utilizes existing customer sales information and other information collected during the sales process, to identify statistical patterns (O’Brien, 2002). These patterns in the data can be used to forecast sales and trends in buying.

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