Market Forecasting

In marketing forecasting can make or break a company. It is important to use MIS analysis to estimate demand and keep in touch with the market. Well, I read in The Wall Street Journal today that Abercrombie & Fitch's style was played out. This is to blame for 19% decline in December sales. There lack of style and over price products have opened the door for lower priced competitors like Aeropostle Inc. and American Eagle Outfitters Inc. which posted December sales of +10% and 7%. The Wall Street Journal said that Abercrombie & Fitch's "look is stale and they need to figure out what the next hot trend is and push that". To me this is a perfect example where the company's marketing department has failed. They should have been looking for the next big thing while their current look was still hot. The company should have stayed in touch with its customers through surveys and test markets.Anyway I should have known Aeropostle was at the forefront of fashion, my 11 year old daughters closet is full of it.