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Gap Marketing Presentation

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The document summarizes Gap Inc.'s current marketing strategy and identifies flaws. It is targeting younger consumers but survey data shows older customers prefer Gap. A new strategy of retention and stimulating demand is proposed. The target becomes 30-45 year olds like Shirley. Gap will emphasize basics and bring back celebrity endorsements. Internationally Gap will continue expanding, especially in China. The document identifies a need to close the "gap" between domestic and international sales.

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Christopher Cannon, Adam Davis, Lu Mei, Marketing 300 Daniel Montgomery & Chloe Zhang Presentation
Agenda  Bridging the Gap in History  Current Big Picture Analysis  New Big Picture Analysis  Questions & Discussion
Bridging the “Gap” in History  1969 in San Francisco  “The Perfect Fitting Jean”  Levi to Gap jeans  Foreign Expansion Doris and Don Fisher, Gap Founders
Gap Stock Troubles Gap, Inc.’s stock troubles since 2010. Source: finance.yahoo.com
Gap Inc.
What Do Consumers Think? When you think of Gap, When I go to Gap, I what comes to mind? buy ___________. Men and women in 30s vs. Khakis youthful Blue jeans Middleclass vs. inexpensive Dress shirts Boring vs. style T-shirts Classic vs. class Sweaters
Other Survey Results Why do you shop at Gap? • Simple, natural color, timeless clothing, only for jeans Why don’t you shop at Gap? • Clothes do not fit me, baggy, boring, plain, no bargains Range: Avg. low: Age 12-20 16 Range Range: Avg. high: 25-60 44
Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion
Business Objective • Gap brand, a part of Gap Inc. Entity • Domestic Division Core • Ability to create classic clothing Competence • Regain position and relevance in the market Goals • Reduce dependence at home and expand internationally
Marketing Objective & Source of Volume Acquisition • Focus on minorities • Focus on 25-30 year olds Steal Share • Designer jeans
Segmenting, Targeting & Positioning • Males & Females Segment • 25-35 years old Target • Tangella Jones • GAP is an affordable yet Position classic clothing style
Meet Tangella Jones Tangella Jones • 27 years old • Graduated from the University of Michigan's Ross School of Business • HR personnel consultant for a large firm • Lives in a trendy one-bedroom flat in downtown Chicago • Passionate socialite
Current Ad Campaign  1969 Premium Jeans Campaign  “Start a conversation about the brand”  Commercials: give a behind-the-scenes feel to the design process, emphasize the brand’s Los Angeles heritage  Purpose: show that Gap makes cheaper alternatives to high-end designer jeans
Ad Clip for 1969 Premium Jeans
Current 5-box Position Gap makes Gap’s clothing is Gap jeans are too cheaper as good as boring to wear alternatives to clothing from a high-end jeans designer company When I want high- When I want jeans end designer from a designer clothing, I’ll buy label, I will buy them from a ones that are just designer company as good from Gap
Execution: The 4 P’s Product Price • Trendy • Upper clothing middle class Place Promotion • Closing • 1969 U.S. stores Jeans
Summary of Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion
Flaws with Acquisition  Survey Responses Range: Avg. low: Age 12-20 16 Range Range: Avg. high: 25-60 44  Instead of targeting the younger range of its 25-35 year old demographic…  Itshould be targeting the older demographics of 30-45 year olds.
Flaws with Acquisition  Attempting acquisition while closing stores  In order to reduce dependence at home, Gap have decided to close 21% of their domestic Gap stores Closing Gap Stores 21% Gap stores to close by 2013 79% Gap stores to remain open  Should be focusing on retaining current customer base while closing down its stores Source: http://online.wsj.com/article/SB10001424052970204002304576628953628772370.html?mod=dist_smartbrief
Flaws with Steal Share  Gap is not a designer brand  Gap represents the “central anchor division” with “extensive selections of classically-styled, high quality, casual apparel at moderate price points”
New Marketing Strategy: R & SD Retention Stimulate Demand  Retain current  New ad campaign customer base  New commercial instead of targeting design younger audience  Target Change to 30-45 years
Changing Targets: New Shirley Wilson • 38 years old • Married for 12 years • Mother of two teenage boys • Works part-time as a real estate agent • When she is not busy with her children, enjoys spending time with her friends • Does not have much time to shop but still likes to look put-together
New 5-box Position Gap’s clothing is Gap offers Gap has options affordable and mainly for teens for my entire essential clothing for and young adults an adult wardrobe wardrobe I’m not interested When I want new in Gap clothing clothes, I shop at for my wardrobe Gap
New Ad Campaign  Bring back what Gap is remembered as  “Back to Basics”  Blue jeans and white tees
Commercials: New Suggestions  Gap has featured over 308 celebrities of various stature in their campaigns  New celebrity endorsers:  Brad Pitt and Angelia Jolie  Family-oriented  Older audience
Foreign Market Strategy  Continue Acquisition Strategy  International growth seems promising  In April 2011, Gap, Inc. decided to combine their international operations into one division  Plan to expand their number of Chinese stores from 6 to 45 by the end of 2012 as well as open a few stores in Italy
A “Gap” in the Market Gap, Inc. Q3 (2011) sales by division Gap, Inc. Q3 (2011) Sales by Division (United States only) (worldwide) 0% 4% Gap 18% Gap 20% 34% 40% Old Navy Old Navy Banana Republic 38% Banana Republic 46% Other Other (Piperlime, Athleta, wholesal (Piperlime, Athleta, wholesal e & franchise) e & franchise) Sales in millions Sales in millions • Gap: $819 • Gap: $1,419 • Old Navy: $1105, • Old Navy: $1,383 • Banana Republic: $495 • Banana Republic: $634 • Other: negligible • Other: $149 Source: http://www.gapinc.com/content/dam/gapincsite/documents/GPS_Quarterly_Sales.pdf
Summary of Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion

More Related Content

Gap Marketing Presentation

  • 1. Christopher Cannon, Adam Davis, Lu Mei, Marketing 300 Daniel Montgomery & Chloe Zhang Presentation
  • 2. Agenda  Bridging the Gap in History  Current Big Picture Analysis  New Big Picture Analysis  Questions & Discussion
  • 3. Bridging the “Gap” in History  1969 in San Francisco  “The Perfect Fitting Jean”  Levi to Gap jeans  Foreign Expansion Doris and Don Fisher, Gap Founders
  • 4. Gap Stock Troubles Gap, Inc.’s stock troubles since 2010. Source: finance.yahoo.com
  • 6. What Do Consumers Think? When you think of Gap, When I go to Gap, I what comes to mind? buy ___________. Men and women in 30s vs. Khakis youthful Blue jeans Middleclass vs. inexpensive Dress shirts Boring vs. style T-shirts Classic vs. class Sweaters
  • 7. Other Survey Results Why do you shop at Gap? • Simple, natural color, timeless clothing, only for jeans Why don’t you shop at Gap? • Clothes do not fit me, baggy, boring, plain, no bargains Range: Avg. low: Age 12-20 16 Range Range: Avg. high: 25-60 44
  • 8. Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion
  • 9. Business Objective • Gap brand, a part of Gap Inc. Entity • Domestic Division Core • Ability to create classic clothing Competence • Regain position and relevance in the market Goals • Reduce dependence at home and expand internationally
  • 10. Marketing Objective & Source of Volume Acquisition • Focus on minorities • Focus on 25-30 year olds Steal Share • Designer jeans
  • 11. Segmenting, Targeting & Positioning • Males & Females Segment • 25-35 years old Target • Tangella Jones • GAP is an affordable yet Position classic clothing style
  • 12. Meet Tangella Jones Tangella Jones • 27 years old • Graduated from the University of Michigan's Ross School of Business • HR personnel consultant for a large firm • Lives in a trendy one-bedroom flat in downtown Chicago • Passionate socialite
  • 13. Current Ad Campaign  1969 Premium Jeans Campaign  “Start a conversation about the brand”  Commercials: give a behind-the-scenes feel to the design process, emphasize the brand’s Los Angeles heritage  Purpose: show that Gap makes cheaper alternatives to high-end designer jeans
  • 14. Ad Clip for 1969 Premium Jeans
  • 15. Current 5-box Position Gap makes Gap’s clothing is Gap jeans are too cheaper as good as boring to wear alternatives to clothing from a high-end jeans designer company When I want high- When I want jeans end designer from a designer clothing, I’ll buy label, I will buy them from a ones that are just designer company as good from Gap
  • 16. Execution: The 4 P’s Product Price • Trendy • Upper clothing middle class Place Promotion • Closing • 1969 U.S. stores Jeans
  • 17. Summary of Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion
  • 18. Flaws with Acquisition  Survey Responses Range: Avg. low: Age 12-20 16 Range Range: Avg. high: 25-60 44  Instead of targeting the younger range of its 25-35 year old demographic…  Itshould be targeting the older demographics of 30-45 year olds.
  • 19. Flaws with Acquisition  Attempting acquisition while closing stores  In order to reduce dependence at home, Gap have decided to close 21% of their domestic Gap stores Closing Gap Stores 21% Gap stores to close by 2013 79% Gap stores to remain open  Should be focusing on retaining current customer base while closing down its stores Source: http://online.wsj.com/article/SB10001424052970204002304576628953628772370.html?mod=dist_smartbrief
  • 20. Flaws with Steal Share  Gap is not a designer brand  Gap represents the “central anchor division” with “extensive selections of classically-styled, high quality, casual apparel at moderate price points”
  • 21. New Marketing Strategy: R & SD Retention Stimulate Demand  Retain current  New ad campaign customer base  New commercial instead of targeting design younger audience  Target Change to 30-45 years
  • 22. Changing Targets: New Shirley Wilson • 38 years old • Married for 12 years • Mother of two teenage boys • Works part-time as a real estate agent • When she is not busy with her children, enjoys spending time with her friends • Does not have much time to shop but still likes to look put-together
  • 23. New 5-box Position Gap’s clothing is Gap offers Gap has options affordable and mainly for teens for my entire essential clothing for and young adults an adult wardrobe wardrobe I’m not interested When I want new in Gap clothing clothes, I shop at for my wardrobe Gap
  • 24. New Ad Campaign  Bring back what Gap is remembered as  “Back to Basics”  Blue jeans and white tees
  • 25. Commercials: New Suggestions  Gap has featured over 308 celebrities of various stature in their campaigns  New celebrity endorsers:  Brad Pitt and Angelia Jolie  Family-oriented  Older audience
  • 26. Foreign Market Strategy  Continue Acquisition Strategy  International growth seems promising  In April 2011, Gap, Inc. decided to combine their international operations into one division  Plan to expand their number of Chinese stores from 6 to 45 by the end of 2012 as well as open a few stores in Italy
  • 27. A “Gap” in the Market Gap, Inc. Q3 (2011) sales by division Gap, Inc. Q3 (2011) Sales by Division (United States only) (worldwide) 0% 4% Gap 18% Gap 20% 34% 40% Old Navy Old Navy Banana Republic 38% Banana Republic 46% Other Other (Piperlime, Athleta, wholesal (Piperlime, Athleta, wholesal e & franchise) e & franchise) Sales in millions Sales in millions • Gap: $819 • Gap: $1,419 • Old Navy: $1105, • Old Navy: $1,383 • Banana Republic: $495 • Banana Republic: $634 • Other: negligible • Other: $149 Source: http://www.gapinc.com/content/dam/gapincsite/documents/GPS_Quarterly_Sales.pdf
  • 28. Summary of Current Big Picture Business Entity Competence Goals Objective Marketing Objective Source of Volume STP Segment Target Position Execute Product Price Place Promotion

Editor's Notes

  1. Chris
  2. Chris
  3. Chris
  4. Chris
  5. Chris
  6. Chris
  7. Chris – 34 results
  8. Adam
  9. Adam
  10. Adam
  11. Adam
  12. Chloe
  13. Dan
  14. Dan: http://www.youtube.com/watch?v=ER-iKU0pntY&feature=player_embedded#t=0m53s
  15. Dan
  16. Adam
  17. Adam
  18. Lu
  19. Lu
  20. Lu
  21. Chloe
  22. Chloe
  23. Adam
  24. Chloe
  25. Chloe
  26. Lu - Gap has seen 16% growth in the international market in the first half of 2011Based out of London, EnglandAttempt to lessen its hold of the United States market and gain a larger share of the $1.4 trillion global apparel retail market
  27. Chris
  28. Adam