Gap Case Study (Group project)
34 likes49,520 views
The document outlines Gap's marketing communication objectives and budget allocation for 2003. It aims to stop negative sales growth and strengthen brand loyalty across multiple generations. Key objectives include repositioning the Gap brand, increasing sales by 2.7% and maintaining a 2.8% market share. The marketing strategy will promote Gap as a unified brand that offers basic, season-less clothing appealing to all targets. TV, magazine and outdoor advertising will build brand preference, while online ads target younger consumers. Celebrity endorsements will contribute to brand recognition.
![Gap presentation (1) [recovered]](https://cdn.slidesharecdn.com/ss_thumbnails/gappresentation1recovered-150222022851-conversion-gate02-thumbnail.jpg?width=560&fit=bounds)
More Related Content
What's hot (20)
Similar to Gap Case Study (Group project) (20)
Gap Case Study (Group project)
- 1. GAPMarketing Communication Objectives & Budget Allocation -2003AmyAshleyKristenPennyRegina
- 3. Company Background The first Gap store was opened in 1969
- 4. In 2001, there 2,298Gap stores in the U.S, and 634 stores outside the U.S.
- 5. Online store opened at 1998Industry OverviewApparel retailing storeSpecialty storeMass merchant / Promotional department storesTraditional department storesNational chains
- 8. Aeropostale
- 10. J.C. PennyCurrent IssuesNegative Sales Growth
- 11. An overlapping of clientele with Old Navy
- 13. No loyal customer base
- 15. Strategy to reach boarder target customers
- 16. Promotion strategy (Product line versus Brand)
- 20. Objective for 2003Stop negative growth in sales
- 22. Strengthen brand loyalty among older generations (Baby Boomers, Generation X)
- 23. Build brand preference among younger generation (Generation Y)Objective for 2003 (contd)Sales increased by 2.7%
- 24. Maintain 2.8% market shareSWOT Analysis
- 25. Strengths Strong Brand LoyaltyBaby BoomersEstablished its identity among Baby Boomers in 1960sThey rebelled against the existing fashion standardGeneration XersOne-stop store fos school and casual clothesThey grew up with GapAmerican icon2,298 stores in U.S. & 2,932 in the world in 2001
- 26. WeaknessesWeak performance of Gap brand Total domestic sales in 2001 went down by 5% Sales went down in comparable stores by 12%Problems with young generations Low attractiveness among Generation YersProducts and marketing communications Teenagers buying behavior Price sensitive and fickle minded No brand loyalty, stables sales, and high cash inflow
- 27. Opportunities 3 brandsGap Kids and Gap BabyBrand synergy effects Target whole market with different price strategiesInternational market To avoid decreasing sales
- 31. Gap was rated 4th in Brand Preference in 2001
- 32. A&F was rated 1st and teens most frequent place to shop
- 34. Household expenditures for apparel decreased by 6%
- 35. Labor policies in developing countries
- 36. Damage brand image Positioning AnalysisCurrent positioning statement To Generation Y Teenagers, Gap is a brand of apparelthat offers basic and up-to-date clothing with reasonable price.How about other competitors?
- 37. Perceptual MapGeneration Yers is more price sensitive New Position
- 38. What is new positioning? KeysHigh familiarity among Baby Boomers & Generation XersReaching the wider age range of target customersHow can we target Generation Yers? Basic and season-less product lines To Baby Boomers and Generation Xers and Yers, Gapis a brand of apparel that offers basic and a season-less line of clothing.
- 39. Adspend Across Store Brands
- 40. Adspend for the GapForecasting Advertising Elasticity CoefficientAdspend projection (2003): $128.4 million
- 41. Media Allocation 2003 (2001)
- 42. Media Allocation (contd) Primary MediaTV (60%)High-involvement and transformational TV is the top selection to build brand preference
- 43. Catalog(5%)
- 44. Competitive forces (A&F, J. Crew, J.C Penney)
- 45. Experimental phrase of catalog
- 46. Online ads (1%)
- 47. Competitive forces (J. Crew & AE)
- 48. To reach Generation Y consumers
- 50. To avoid direct media competitionMedia Allocation (contd) Secondary MediaMagazine (22%) Detail information provided (take out of newspaper because)Outdoor ads (12%)Catalog(5%)Online ads (1%)16-18 y.o
- 51. Reach PatternTV, Magazine, catalog and outdoorSeasonal Priming Pattern
- 53. Media Selection
- 54. Promotion StrategyFocusing on Gap as a brandCurrently has a fragmented image due to promoting individual product lines.
- 55. Younger generation is image-oriented; they care about the overall idea and feel of the brand.
- 56. Need to create an image that encompasses the brand as a whole and resonates with all target markets.Promotion StrategyEarly days of Gap wearing things your own way and being your own person
- 58. Image of effortlessness and individuality
- 59. Older generations will recognize and identify with the message
- 60. Younger generations will care about what Gap brand means and what it portrays to othersPromotion StrategyCelebrity Endorsements
- 61. Gap is an iconic brand
- 62. Celebrities contribute to brand recognition
- 63. Competitors have not used celebritiesCreative Briefs and ExhibitsBehavioral sequence modelGap is Transformational & High involvementConsumers are Favorable Brand Switchers (previously loyal to another company)Gap consumers have positive-ending motivationConsumption based on psychological significance over practical product benefitsUse celebrity = enhance corporate image
- 64. Creative Briefs and Exhibits (contd)
- 65. Creative Briefs and Exhibits (contd)Action ObjectivesReposition Gap brand Strengthen brand loyalty (Baby Boomers, Gen. Xers) Building brand preference (Gen. Yers)Goal: Increasing income by 6% & maintaining 2.8% market share after campaign
- 66. Creative Briefs and Exhibits (contd)Communication ObjectivesCategory needRemindBrand awarenessBrand recallBrand preferenceIncrease to strong preferencePurchase facilitationSeasonal sales notification with customer database
- 67. Creative Briefs and Exhibits (contd)Positioning Statement To multiple generations, Gap is a brand of apparel that offers basic and season-less line of clothing. Key benefit is a strong brand image which is intensely recognizable and resonated.
- 68. Creative Briefs and Exhibits (contd)Mandatory ContentWe recommend reinforcing a customer care service for heavy customers to increase volume of sales per customer.
- 69. Operational Analysis Financial Problem (01):Continues expansion when sales were decreasing Operating Margin dropped:14.76% (2000) & 8.21% (2001)Profit Margin down 6.42% (2001) Recommendation: Downsize & decrease Operational costs in 2003
- 70. Alternative SuggestionsHighlight separate product lines(Basics, classics, Gap jeans, Gap khakis) Target Audience:Baby boomersGeneration XGeneration YTarget Audience:Baby boomersGeneration X
- 71. thank you
Editor's Notes
- #4: 1983 banana: classyurban style, higher price1994 old navy: cheaper price, everyday wear
- #5: Common trends seen in other specialty stores include often having discounted prices. Gap is also seen as having very affordable pricing in comparison to other stores that fall within the realm of specialty stores, giving it this advantage over its competitors. Roughly 27% of all apparel sales come from specialty stores
- #6: J. Crew: catalog, website AF: websites for 3 brand. Catalog. Brand preference