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introduction crafting the brand positioning
project on market segmentation
project on market segmentation
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The central purpose of writing this Case Study Analyses on The Gap, Inc. is to identify and isolate key issues and their underlying implications and offer practical solutions and plans for implementing those solutions.
This will be done by highlighting the social influences that influence the Gap, Inc. marketing strategy, segmentation strategies with respect to distinct retail markets, and positioning strategies that can be used or changed in a retail setting, as requested in the course assignment (as cited in the course module).
History, Development, and Growth
In 1969, Don Fisher opened the first Gap store in direct response to frustrations he was feeling as an inconvenienced customer. His objective was to provide a classic line of clothing in a wide variety of fits and styles and make the shopping experience easy and convenient for the customer. (www.gapinc.com).
Its unprecedented growth is a direct result of meeting a niche in the clothing market, at a time when The Gap was well positioned to meet the new demands of this "business-casual" trend, introducing other chains to expand its customer base, and aggressive expansion in the global marketplace.
Today, Gap, inc. is recognized as one of the world's largest specialty retailers. It. operates four of the most well known clothing brands on the planet: Gap, Banana Republic, Old Navy, and Forth & Towne. (www.gapinc.com).
Internal Strengths and Weaknesses
The Gap was bound for success early on because the utility of its product mix (Etzel, Stanton, Walker, 2004) was perfect for a specific market segment. The Gap offered a classic line of khaki pants and cotton button-down shirts (p.200), perfect for the new "business-casual" look, and gained great bra...
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...Gap needs to take a close look at its expenses and where they are occurring. It should stop looking at expansion and concentrate on its employees and customers.
Given the facts surrounding this case and their underlying implications, the Gap could do just these few things and see dramatic improvements. It needs to regain its core market and better utilize its current resources. That will solve most of the issues defined in this particular case. Keep it simple, make it fun! It works in education, business, and life! I'm sure it would work for the Gap as well.
Resources:
Etzel, M., Stanton, W., and Walker, B. Marketing. 13th ed. McGraw-Hill, 2004.
Richardson, J. Marketing. Ed. John E. Richardson. 27th ed. Annual Edition. Iowa: McGraw-Hill, 2004.
Stone, Brad. "Back To Basics." Newsweek: Online Posting. 142 4 Aug. 2003. 36-38. 8 Oct. 2005 .
Hooley, G., Piercy, N. F., & Nicoulau, B. (2008). Marketing strategy and competitive positioning (4th ed.). Upper Saddle River, NJ: Pearson.
American Eagle Outfitters is a fairly new company but they are doing extremely well because they have a clear grasp of who their target market is. They posses a fresh new hip look with great quality clothing at a reasonable price for consumers (http://www.prism.gatech.edu/~gte201w/aeostrat.html). This is one of the main reasons why teenagers and young adults are so attracted to the company. American Eagle is aiming to appeal not only to the targeted 20 year old but also consumers between the ages of 16 and 34 years old. This will widen the gap between their major competitors because they are trying to appeal to more segments than just one. American Eagle seeks to be assessable, fashion orientated, and has a strong value proposition, which has allowed the company to thrive and take shares from competitors over the past five years. Not only is their clothing line very comfortable, bold and fresh, the store layout and atmosphere is also major key factors in American Eagle’s success over the recent years. AE also has a strong competitive advantage because of their short lead times and their ability to position themselves in high-visibility, high-profile locations in key markets. American Eagle’s cycle time is about five months from design to delivery, versus about nine months for The Gap and six months for Abercrombie. AEOS minimizes lead times by maintaining sourcing relationships with a few key manufacturers and producing much of the merchandise in North America, versus 9% for The Gap and a minimal amount for Abercrombie. AEOS has the ability to quick-source some of its simpler product categories in order to react quickly to sales trends. (http...
The Group's strategy focuses on six key areas, in order to improve the operational effectiveness of its business. By a...
... fashion industry. I believe through all of their marketing tactics and great leadership they will continue to thrive. Although I am not a customer of the brand, I have found great interest in completing this product to explore and expand and broaden my fashion in the brand. The company has had consistent sales increase and if it continues to utilize its business plans wisely, I believe it will continue to increase.
Without the overhaul of its management, which had fixed objective also made their objectives unattainable. The corporation was in a state of out of control before the long-range strategic objectives were set in place. GM’s nominal long-range strategic objective “to use its vast financial resources to spend its competitors right into the ground” fell short on critical characteristics of practicability, flexibility, cost effectiveness, and accountability.
organizations that offer high quality designer purchase from other retailers for lower prices. It all
Gap is an American worldwide clothing and accessories retailer. It was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California. During the class period, Gap’s stock price increased by $3.50 (between May 17th and August 14th) and the percent change increased by 2.61%. Around the lawsuit filing, the stock price increased by $0.75 (from August 14th to September 4th) and the percent change increased by 0.56%.
The first Kmart store was opened in Garden City, Michigan., in 1962 (the same year that Wal-Mart and Target began operations) by the S.S. Kresge Co., a five-and-dime chain that was founded at the turn of the 20th century in Detroit by Sebastian Spering Kresge. By the end of 1963 Kmart had 63 stores converted from Kresge's. By 1977, Kmart generated nearly all of Kresge's sales, and the company changed its name to Kmart Corp. Kmart sold the remaining Kresge stores in 1987.
When Gap was founded in 1969, Gap was unique and new. Gap's target customers were younger generations. Gap's hottest seller at the time was its "basic" look, which consisted of signature blue jeans and white cotton t-shirts. Gap founders realized that jeans were becoming popular among the younger generation of customers. Nevertheless, the company recognized that despite Gaps popularity among the youth, there were not enough assortments of jeans in the clothing outlets. Capitalizing on this deficit was merely the next step in expanding. Gap's founders were sure that jeans could be sold through a chain of small stores devoted solely to that product. As Gaps business idea became successful, Gap expanded their line of offering and now Gap offers a range of clothing for men, women, and children. As Gap's business began to boom, Gap also began to expand. Gap Inc. added two new entities to the company, Banana Republic and Old Navy. All three chains have their own target markets. Banana Republic is known for their casual luxury, with high-quality apparel. Banana Republic tailors their store to appeal to the unique market of pleasing the most fashion conscious consumers.
This is the case with Gap. Most people consider Gap to be a prestigious store so they will wear personal branding clothes from the Gap. This is evident because the top three selling articles of clothes from Gap are personal branding clothes. Some reasons for this are because personal branding clothes provide free advertising. These types of clothes are in style today. At the Gap this is especially true. It is important to keep on selling these type of clothes because most people (especially teenagers) feel that if a product is marketed well, there is a better chance they will buy it.
Polo Ralph Lauren’s key success factors derive from the company’s powerful identity. It is notorious for it preppy American style in the designer world, but it is also luxurious, elegant and thrives to always be a classic. It appeals to a wide range of consumers, even if a person doesn’t wear Polo they are at least familiar with what it is. The way the company markets itself is also a big part of its success. For a company that started out less than 50 years a...
Followed by the brand 's global growth at the end of the 1980s and the following takeoff of new retail ideas: Customer focus reinforces a basic groundwork that encompasses all stages of a fashion value chain (design, industrial, delivery and sale in patented stores).
The period success of GAP had taken a turn since 2002. Profits and revenue continued to decline. From 2008-2010, just in U.S, 6000 retail stores had been closed because of the financial recession; during this period, Gap closed more than fifty of its 3251 stores. The annual income of GAP had also been successively overpassed by ZARA in 2008 and H&M in 2009, which dropped down to the third in fashion industry (Liu, 2013). And continually, the company’s net income declined to $833 million in 2011, which is 17% less than it earned in 2010 (Exhibit 1) (Ciasullo, Blauvelt, & Lambert, 2012). In U.S, the largest market for GAP, the elder generation who bought Gap products in 1990s had gradually left Gap for different requirements with the increasing age, and Gap was unable to keep its success with the younger generation. In addition, although Chinese market currently has been the second largest market for GAP Inc., they still operate the GAP brand as a follower without any distinct positioning str...
Thesis: From the 18th century to present time, the jean industry remains one of the largest, most influential clothing markets.
Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice