Inc. Sunday, October 7, 12
GAP RESEARCH Mission
“Gap, Inc. Is A Brand-builder. We Create Emotional Connections With Customers Around The World Through Inspiring Product Design, Unique Store Experiences, And Compelling Marketing."
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GAP RESEARCH Purpose
"Our Purpose? Simply, To Make It Easier For You To Express Your Personal Style Throughout Your Life. We Have More Than 150,000 Passionate, Talented People Around The World Who Help Bring This Purpose To Life For Our Customers."
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GAP RESEARCH Competitive Advantage
Our Competitive Advantage Lies In Oering Our Global Customers Widespread Access To Our Product, Regardless Of Their Shopping Preferences. We Achieve That Through Our Strategy Of Operating Multiple Brands, Through Multiple Channels And Across Multiple Geographies. This Powerful Combination Sets The Stage For Future Sales And Earnings Opportunities.
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GAP RESEARCH Brands
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GAP RESEARCH
Gap. Founded In 1969, Gap Is Our Flagship Brand And Remains One Of The Most Iconic Apparel Brands In The Marketplace Today. The Brand Stands For Casual, American Style – At Accessible Price Points. Assortments Include Well-designed Apparel For Men And Women, Including Denim, Khakis, Outerwear, Tees, And Accessories. In Addition To Designing Its Own Merchandise, Gap Offers Limited “capsule” Collections In Partnership With Some Of The Fashion Industry’s Best-loved Designers And Other Third-party Merchandise From Time To Time.
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GAP RESEARCH
Old Navy. Old Navy Opened Its First Store In 1994, Offering Customers Great Product At Great Prices. The Brand Targets Young Families, With A Focus On Providing A Fun Shopping Environment And Value-priced Apparel. Today, Old Navy Continues To Offer On-trend Selections Of Value-priced Apparel, Shoes, And Accessories For Adults, Children, And Babies, As Well As Other Items, Including A Maternity Line And Consumables. Customers Can Purchase Old Navy Products In Stores In The U.S. And Canada And Online, Which Includes Online-exclusive Items Such As A Plus-size Line.
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GAP RESEARCH
Banana Republic. Banana Republic Is A Global, Multi-channel Brand That Is A Destination For Modern, Versatile Work Wear For Both Men And Women.Acquired In 1983 With Two Stores, Banana Republic Has Evolved To Oer Collections That Include Apparel,handbags, Shoes, Jewelry, Personal Care Products, And Eyewear For Men And Women At Higher Price Points ThanGap Brand. Today, Customers Can Purchase Banana Republic Products In Our Specialty And Outlet Stores, Online, And In Franchise Stores.
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GAP RESEARCH
Piperlime. Launched In 2006, Piperlime Is An Online Fashion Boutique. The Brand Oers Customers A Fresh And Unique Mix Of Private Label And Leading Brands In Footwear, Apparel, And Accessories For Women And Men, As Well As Footwear For Kids. Customers Will Also Find Exclusive Advice, Tips, And Trends From Leading Style Experts.
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GAP RESEARCH
Athleta. Acquired In September 2008, Athleta Is Gap Inc.’s Newest Brand. Athleta Offers Performance-driven Women’s Sports And Active Apparel And Footwear For A Variety Of Activities, Including Golf, Running, Skiing, Snowboarding, Tennis, Swimming, And Yoga. In Addition To Athleta’s High-quality Products, Customers Can Purchase An Assortment Of Products From Leading Brands In Women’s Active Wear. Customers Can Purchase Athleta Products Online, Through A Catalog, And Beginning In 2010, In Our Stores.
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GAP RESEARCH Strategy: Market
PRODUCT LEADERSHIP
OPERATIONAL EXCELLENCE
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CUSTOMER INTIMACY
GAP RESEARCH Business Model: Gap Inc Key Partners
Key Activities
Businesses that enable Multi-channel distribution
Marketing Strategy
National Football League (old Navy)
Business Strategy
Chinese Government
Customer Support/Service
Design/Development
Brand Development
Value Propositions
Customer Relationships
Provides access to range of fasions many locations at veriety of priceranges Provides access to range of fasions many locations at veriety of priceranges
Intimate 1:1
Brand loyals
Trust
Deal Seakers
Friendly
Middle income shoppers
Easy access/exit Helpful/Serendipitous
Managing Global Empire
Channels
Key Resources Huge base of stores
Store Fronts
Multiple Brands (highly recognized)
Online stores Outlets
Multiple Brands
Revenue Streams
Cost Structure Production
Market Research/Marketing
Instore Purchase
Salary
Facilities
Intrest on GAP Credit Payments
Maintenance
Rent
Equipment
Lawyers
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Designers
Customer Segments
Online Purchases
GAP RESEARCH Direct Competitors
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GAP RESEARCH Indirect Competitors
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GAP RESEARCH SWOT STRENGTHS Global brand recognition GAP is globally recognized as american style, pop culture and the emotional affinity. Stores located in worldwide GAP has 3,095 stores in worldwide as of January 30, 2010. Company-owned stores are located in United States, United Kingdom, Japan, Canada, France and Ireland. Franchisees-owned stores are located in other countries such as Turkey, United Arab Emirates ans so on. Franchising system easily to expand Gap store internationally GAP has franchise agreements with unaffiliated franchisees to operate Gap or Banana Republic brand stores worldwide. Multiple brands and brand extensions for a wide range of segments GAP has 5 distinct brands such as Gap, Old Navy, Banana Republic, Piperlime and Athleta and brand extensions such as GapKids, babyGap, gapbody and GapMaternity. Huge customer and vendor base
OPPORTUNITIES Global new market in Europe and China GAP is planing to open the 1st store in Italy and China and additional outlet stores in Europe and Asia Penetration of e-commerce Gap has introduced web-based stores and has two additional online based stores. Sales related to Athleta in 2009 increased 9 percent while total sales of Gap decreased 3 percent Online sales in 2008 increased 14 percent compared with 2007. Difficult anticipation of fashion trends and changing consumer preferences Many companies have experienced to misjudge the market
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WEAKNESSES Nearly all merchandise depend on third-party vendors, which is outside of the US. Approximately 1000 vendors in 60 countries. 27 percent is produced in China. Third-party vendors can cause products shortage, shipment delay and increased costs. Huge store base including unaffiliated franchisees Gap is limited to keep up with fashion trends, to train some methods and to control quality. Less attractive in trendy clothing Uncontrollable production processes Control of production processes is a key factor among fast fashion retailers
THREATS Economic downturn directly affect apparel retail business Continuing economic downturn could make consumer spending remain depressed for an extended period. Apparel sales were off by -9% compared to 2008 Global specialty apparel retail industry is highly competitive J. crew, Abercrombie & Fitch, Urban Outfitters, etc Emerging fast fashion retailers H&M, Forever21, Inditex(Zara), Primark Zara delivers new items twice a week to the stores. The market for prime real estate is competitive The location of GAP stores is a key factor of it’s strategy.
GAP RESEARCH Innovation Matrix FINANCE
TRANSFORMATION
RADICAL
INCREMENTAL
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PROCESS
OFFERING
DELIVERY
GAP RESEARCH 2x2 Credit Cards
NEW
RISK
SERVICE OFFERING Creates New Brands To Access New Customers And Gain MRKT Share EXISTING
EXISTING
NEW
CUSTOMER GROUPS
Sunday, October 7, 12
GAP RESEARCH 2x2 Credit Cards
NEW
OPPORTUNITIES RISK
SERVICE OFFERING Creates New Brands To Access New Customers And Gain MRKT Share EXISTING
EXISTING
NEW
CUSTOMER GROUPS
Sunday, October 7, 12