Marketing Strategy: A&F Struggles To Reposition Itself With Ex-Teenagers

This superb article from Bloomberg Businessweek is packed with marketing strategy less golddust.

Abercrombie & Fitch (A&F) is trying to target a 20-29 year-old customer and to reposition itself in a different segment from its sister retail brand Hollister.

However, success is proving elusive for A&F. Is it the product range? Is it that its previously loyal customer base has grown-up and moved onto other brands?

The article suggests that over recent years the market positioning of A&F and Hollister had become muddled, battling over the same teen customers. The business decided to reposition A&F as a "premium" label for people in their twenties, hoping to add new customers while giving Hollister customers something to "graduate to" once they ditch teen clothes.

This marketing strategy challenge would make a great lesson activity.

What marketing tactics can A&F use to differentiate itself from Hollister?

Are there other fashion brands that already resonate more strongly with the target 20-29 customer base?