GAP<br />Marketing Communication Objectives <br />& <br />Budget Allocation <br />-2003<br />Amy<br />Ashley<br />Kristen<...
Company Background <br /><ul><li>The first Gap store was opened in 1969
In 2001, there 2,298Gap stores in the U.S, and 634 stores outside the U.S.
Online store opened at 1998</li></li></ul><li>Industry Overview<br /><ul><li>Apparel retailing store</li></ul>Specialty st...
Competitive Forces<br /><ul><li>J. Crew
Abercrombie & Fitch
Aeropostale
American Eagle Outfitters
J.C. Penny</li></li></ul><li>Current Issues<br /><ul><li>Negative Sales Growth
An overlapping of clientele with Old Navy
Strong competitive forces
No loyal customer base
Marketing Communication Strategy
Strategy to reach boarder target customers
Promotion strategy (Product line versus Brand)
Celebrity endorsement
Budget allocation
New Positioning</li></li></ul><li>Perceptual Map<br />
Objective for 2003<br /><ul><li>Stop negative growth in sales
Reposition Gap brand
Strengthen brand loyalty among older generations (Baby Boomers, Generation X)
Build brand preference among younger generation (Generation Y)</li></li></ul><li>Objective for 2003 (cont’d)<br /><ul><li>...
Maintain 2.8% market share</li></li></ul><li>SWOT Analysis <br />
Strengths <br />Strong Brand Loyalty<br />Baby Boomers<br />Established its identity among Baby Boomers in 1960’s<br />The...
Weaknesses<br />Weak performance of Gap brand <br />Total domestic sales in 2001 went down by 5% <br />Sales went down in ...
Opportunities <br />3 brands<br />Gap Kids and Gap Baby<br />Brand synergy effects   <br />Target “whole market” with diff...
Treats <br /><ul><li>Intense competition
4 Main competitors
Similar target market
Gap was rated 4th in Brand Preference in 2001
A&F was rated 1st and teens’ most frequent place to shop
Reduced apparel demand
Household expenditures for apparel decreased by 6%
Labor policies in developing countries
Damage brand image </li></li></ul><li>Positioning Analysis<br />Current positioning statement <br />To Generation Y Teenag...
Perceptual Map<br />Generation Yers is…<br />      more price sensitive <br />New Position <br />
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Gap Case Study (Group project)

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  • 1983 banana: classyurban style, higher price1994 old navy: cheaper price, everyday wear
  • 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
  • J. Crew: catalog, website AF: websites for 3 brand. Catalog. Brand preference
  • Gap Case Study (Group project)

    1. 1. GAP<br />Marketing Communication Objectives <br />& <br />Budget Allocation <br />-2003<br />Amy<br />Ashley<br />Kristen<br />Penny<br />Regina<br />
    2. 2.
    3. 3. Company Background <br /><ul><li>The first Gap store was opened in 1969
    4. 4. In 2001, there 2,298Gap stores in the U.S, and 634 stores outside the U.S.
    5. 5. Online store opened at 1998</li></li></ul><li>Industry Overview<br /><ul><li>Apparel retailing store</li></ul>Specialty store<br />Mass merchant <br />/ Promotional department stores<br />Traditional department stores<br />National chains<br />
    6. 6. Competitive Forces<br /><ul><li>J. Crew
    7. 7. Abercrombie & Fitch
    8. 8. Aeropostale
    9. 9. American Eagle Outfitters
    10. 10. J.C. Penny</li></li></ul><li>Current Issues<br /><ul><li>Negative Sales Growth
    11. 11. An overlapping of clientele with Old Navy
    12. 12. Strong competitive forces
    13. 13. No loyal customer base
    14. 14. Marketing Communication Strategy
    15. 15. Strategy to reach boarder target customers
    16. 16. Promotion strategy (Product line versus Brand)
    17. 17. Celebrity endorsement
    18. 18. Budget allocation
    19. 19. New Positioning</li></li></ul><li>Perceptual Map<br />
    20. 20. Objective for 2003<br /><ul><li>Stop negative growth in sales
    21. 21. Reposition Gap brand
    22. 22. Strengthen brand loyalty among older generations (Baby Boomers, Generation X)
    23. 23. Build brand preference among younger generation (Generation Y)</li></li></ul><li>Objective for 2003 (cont’d)<br /><ul><li>Sales increased by 2.7%
    24. 24. Maintain 2.8% market share</li></li></ul><li>SWOT Analysis <br />
    25. 25. Strengths <br />Strong Brand Loyalty<br />Baby Boomers<br />Established its identity among Baby Boomers in 1960’s<br />They rebelled against the existing fashion standard<br />Generation Xers<br />One-stop store fos school and casual clothes<br />They grew up with Gap<br />American icon<br />2,298 stores in U.S. & 2,932 in the world in 2001<br />
    26. 26. Weaknesses<br />Weak performance of Gap brand <br />Total domestic sales in 2001 went down by 5% <br />Sales went down in comparable stores by 12%<br />Problems with young generations <br />Low attractiveness among Generation Yers<br />Products and marketing communications <br />Teenagers’ buying behavior <br />Price sensitive and fickle minded <br />No brand loyalty, stables sales, and high cash inflow<br />
    27. 27. Opportunities <br />3 brands<br />Gap Kids and Gap Baby<br />Brand synergy effects <br />Target “whole market” with different price strategies<br />International market <br />To avoid decreasing sales<br />
    28. 28. Treats <br /><ul><li>Intense competition
    29. 29. 4 Main competitors
    30. 30. Similar target market
    31. 31. Gap was rated 4th in Brand Preference in 2001
    32. 32. A&F was rated 1st and teens’ most frequent place to shop
    33. 33. Reduced apparel demand
    34. 34. Household expenditures for apparel decreased by 6%
    35. 35. Labor policies in developing countries
    36. 36. Damage brand image </li></li></ul><li>Positioning Analysis<br />Current positioning statement <br />To Generation Y Teenagers, Gap is a brand of apparelthat offers basic and up-to-date clothing with reasonable price.<br />How about other competitors? <br />
    37. 37. Perceptual Map<br />Generation Yers is…<br /> more price sensitive <br />New Position <br />
    38. 38. What is new positioning? <br />Keys<br />High familiarity among Baby Boomers & Generation Xers<br />Reaching the wider age range of target customers<br />How can we target Generation Yers? <br /> Basic and season-less product lines <br /> “ To Baby Boomers and Generation Xers and Yers, Gapis a brand of apparel that offers basic and a season-less line of clothing.”<br />
    39. 39. Adspend Across Store Brands<br />
    40. 40. Adspend for the Gap<br />Forecasting <br />Advertising Elasticity Coefficient<br />Adspend projection (2003): $128.4 million<br />
    41. 41. Media Allocation <br />2003 (2001)<br />
    42. 42. Media Allocation (cont’d) <br />Primary Media<br />TV (60%)<br />High-involvement and transformational <br /> TV is the top selection to build brand preference<br />
    43. 43. <ul><li>Catalog(5%)
    44. 44. Competitive forces (A&F, J. Crew, J.C Penney)
    45. 45. Experimental phrase of catalog
    46. 46. Online ads (1%)
    47. 47. Competitive forces (J. Crew & AE)
    48. 48. To reach Generation Y consumers
    49. 49. Outdoor ads (12%)
    50. 50. To avoid direct media competition</li></ul>Media Allocation (cont’d) <br />Secondary Media<br />Magazine (22%) <br />Detail information provided <br />(take out of newspaper because…)<br />Outdoor ads (12%)<br />Catalog(5%)<br />Online ads (1%)<br />16-18 y.o<br />
    51. 51. Reach Pattern<br />TV, Magazine, catalog and outdoor<br />Seasonal Priming Pattern<br />
    52. 52. Reach Pattern<br />Online<br />Blitz Pattern<br />
    53. 53. Media Selection<br />
    54. 54. Promotion Strategy<br />Focusing on Gap as a brand<br /><ul><li>Currently has a fragmented image due to promoting individual product lines.
    55. 55. Younger generation is image-oriented; they care about the overall idea and feel of the brand.
    56. 56. Need to create an image that encompasses the brand as a whole and resonates with all target markets.</li></li></ul><li>Promotion Strategy<br /><ul><li>Early days of Gap wearing things your own way and being your own person
    57. 57. Recognizable and timeless
    58. 58. Image of effortlessness and individuality
    59. 59. Older generations will recognize and identify with the message
    60. 60. Younger generations will care about what Gap brand means and what it portrays to others</li></li></ul><li>Promotion Strategy<br /><ul><li>Celebrity Endorsements
    61. 61. Gap is an iconic brand
    62. 62. Celebrities contribute to brand recognition
    63. 63. Competitors have not used celebrities</li></li></ul><li>Creative Briefs and Exhibits<br />Behavioral sequence model<br />Gap is Transformational & High involvement<br />Consumers are Favorable Brand Switchers (previously loyal to another company)<br />Gap consumers have positive-ending motivation<br />Consumption based on psychological significance over practical product benefits<br />Use celebrity = enhance corporate image<br />
    64. 64. Creative Briefs and Exhibits (cont’d)<br />
    65. 65. Creative Briefs and Exhibits (cont’d)<br />Action Objectives<br />Reposition Gap brand <br />Strengthen brand loyalty (Baby Boomers, Gen. Xers) <br />Building brand preference (Gen. Yers)<br />Goal: Increasing income by 6% & maintaining 2.8% market share after campaign <br />
    66. 66. Creative Briefs and Exhibits (cont’d)<br />Communication Objectives<br />Category need—Remind<br />Brand awareness—Brand recall<br />Brand preference—Increase to strong preference<br />Purchase facilitation—Seasonal sales notification with customer database <br />
    67. 67. Creative Briefs and Exhibits (cont’d)<br />Positioning Statement<br /> 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.<br />
    68. 68. Creative Briefs and Exhibits (cont’d)<br />Mandatory Content<br />We recommend reinforcing a customer care <br />service for heavy customers to increase volume of sales per customer. <br />
    69. 69. Operational Analysis <br /><ul><li>Financial Problem (‘01):</li></ul>Continues expansion when sales were decreasing <br />Operating Margin dropped:14.76% (2000) & 8.21% (2001)<br />Profit Margin down 6.42% (2001) <br /> Recommendation: Downsize & decrease Operational costs in 2003<br />
    70. 70. Alternative Suggestions<br />Highlight separate product lines<br />(Basics, classics, Gap jeans, Gap khakis)<br /> Target Audience:<br />Baby boomers<br />Generation X<br />Generation Y<br />Target Audience:<br />Baby boomers<br />Generation X<br />
    71. 71. thank you<br />

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