GAP Marketing and Communication by Nav Khatkar

Ethics clause Include signed statement in the front of __________________________________ report as per below: I confirm that this work has gained ethical approval and that we have faithfully observed the terms of approval in the conduct of this project.

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GAP Navdeep Kaur Khatkar

N0440148 Fashion Marketing & Branding Brand Situational Analysis Report

Contents. Introduction & Brand Identity

Methodology

Body of Report

9-11

Macro Environment PESTLE Analysis

12-17

Macro trends

19-23

Micro Trend Analysis Market Health

Brand Positioning

Brand Audit Brand Overview

Pen Portrait

Brand Health Check

Brand Opportunities SWOT Analysis

Ansoff Matrix

Conclusion & Recommendations

References

36-39

Bibliography

Appendix 1 - Blank Questionnare

Appendix 2 - Completed Questionnaire

Appendix 3 - Questionnaire Results

44-48

Introduction. This report will present the engines of growth for Gap and what their success factors and restrictions have been. This report will highlight what the main achievements have been and what issues need to be addressed and how Gap can overcome these. I will also identify and present ideas that Gap can potentially take forward as opportunities to ensure they become a stronger brand for various target markets.

Is this the death of Gap?

Brand Identity. Gap Inc. was founded in 1969, 21st of August by Donald Fisher and Doris Fisher. The first Gap store opened in San Francisco where they sold records and tapes as well as clothing and accessories. Gap present themselves as a simplistic family brand who provide classic casual basics, accessible and suitable to all generations. Gap have 5 brand extensions available for a wide target market audience which consist of: 

Gap pure



Gap fit



Gap maternity



Gap kids



Baby Gap.

Gap also hold 4 brands in their portfolio which have all have various price ranges and clothing designs:



Old Navy



Athleta



Banana Republic



Piperlime

Body of Report Primary Research

Methodology. WHAT? In the primary research I wanted to identify what consumers perception on Gap was as a brand and of what Gap have to offer. I also wanted to find out what type of person shops at Gap, if the consumers were satisfied with what Gap have to offer, what the brand could do better and if there was anything that Gap could do to bring an alternative change to their brand. Within this questionnaire, I wanted to identify who Gap’s consumers see as Gap’s competitors and who Gap itself as a brand is most suited to.

Findings from Primary Research During the primary research, results from the questionnaire consisted of successful genuine responses. The responses and results allowed a better understanding of what current consumers are thinking and doing in terms of their shopping paths. The first and foremost question included what the consumers age was. In the following table which was sourced from surveymonkey.com displaying the results from the question showed that 52.46% of the consumers were aged between 15-20 and 16.39% were aged between 21-30. Although these age range percentages fall into Gap’s target audience, 31-40 year olds had a percentage of 18.03% which meant there was a wide variety of opinions.

Within the questionnaire there was also an open question for consumers to express their individual opinions on how they would describe Gap in three words.

Fig 1

HOW? A questionnaire was created for a visit to the London store and surroundings. It contained very simple questions with no means of consumers being able to give their open opinions accurately. This resulted in a very unsuccessful consumer response. Consumers didn’t have time as they were occupied and in the end it was evident that the questionnaire wasn’t in depth in relation to Gap and it’s consumers.

WHO? Another questionnaire was created which consisted of questions mentioned in the ’WHAT?’ section above, which was based on the ‘consumer perception of Gap’. Within this questionnaire there were multiple choice questions as well as open questions that consumers could share their opinion in. The questionnaire was handed out to 70 people from a specific quota sample on www.surveymonkey.com of which 62 people responded. This was a positive factor as it meant that the questionnaire would be sent out to contacts that are of Gap’s target market of 18-30 year olds. Resulting in genuine opinions and feedback from actual target market audience as opposed to random people in London.

Fig 2

Primary Research Images Taken in GAP Oxford Circus highlighting sports wear and casual clothing - November 2013

Although Gap seem to believe H&M & River Island are not their competitors, the results showed something interesting. It was evident that a huge 62.30% shopped at River Island and H&M making these two brands the leading competitors for Gap in the UK according to consumer response. Almost half of the consumers said that they shop at Primark which is of lower price and quality in comparison to Gap. Is this all to do with demographics? It could be that consumers are shopping at cheaper alternative brands due to them not having enough disposable income to spend on good quality clothing.

One of the questions asked the consumer directly: How often do you shop at Gap? Fig 5

Fig 3

57.38% of the sample said they never shop at Gap and only a small 19.67% said that they shop at Gap once every 6 months. This could be due to the lack of advertising and promotion that is being conducted in the UK.

tools which are not currently being used by Gap Inc. both in UK and US include motion pictures, “...Advertising brochures and booklets, directories, and reprints of the ads. ” (Source: Research Methodology for Gap Inc)

The questionnaire consisted of an open answer question asking consumers: If you could describe Gap in three words, what would they be?

“

It faced the rise of value retailers such as Matalan and Primark and discounters including TK Maxx, as well as more established players Marks & Spencer, Next, Topshop, H&M, River Island and New Look.

”

The reason for this open question was so that consumers can express their individual opinions on what they thought of Gap in three words. This gave an insight to how Gap is perceived and looked upon by consumers. Here are some responses that were collected: Childish, dull, unfashionable

Boring, up-market, timeless. Basic, reliable, high-quality.

Fig 6

Classic, preppy, simplistic. Functional, boring, outdated. If you could describe Gap in three words, what would they be?

Convenient, Safe, Standard.

Good prices, simple clothing and unique.

Fig 4

Simple, basic and durable.

Functional, basic, dated brand.

Plain, casual, pricey for what it offers

“

While specialty apparel retailer Gap Inc has enjoyed steady growth in the U.S. for the past few years, it has struggled in European markets. The company's namesake brand's revenues in Europe have come down from $703 million in 2010 to $691 million in 2012 despite continued expansion.

A quarter of the consumers shopped at departments stores or ‘other’ brands such as Topshop with a figure of 29% and House of Fraser with 22%. This is all to do with the way these brands and retailers are reaching out to a younger target market audience as they advertise themselves within magazines, on TV and billboards. 9

”

Looking at the responses given from consumers, it is evident that consumers do not generally find Gap appealing or suitable for the age demographic target of 18-30 year olds as Gap say. The responses clearly outlined consumers negative perception about the brand’s image saying it was ‘simple, basic, boring and simplistic’. This could be why from the previous page, response showed that consumers are going elsewhere to shop for their products, cheaper competitors. This could be the exact reason why the brands European revenue had been affected by millions. 10

PESTLE Analysis. Political

This table displays figures of companies that have gone into liquidation over the last 7 years in the UK, along with how many stores were affected each year and how many employees were affected each year.

Tax Laws & Government Policy

Costs of energy and availability

If the government change/increase the tax prices then this can affect Gap negatively as they would then have to increase their retail prices on their stock. This could also result in losing customer loyalty and more competition for Gap to maintain their profit margins.

Poor economical climate could mean that energy providers increase their costs in terms for them to survive. This would mean Gap would then have to consider their costs strongly as it could affect their market position resulting in lower profit margins.

Fig 7

Minimum wage/Labour costs If the government increase the minimum wage then this would affect Gap in a way that they may need to compensate by cutting down number of employees working for them and staff working hours. Gap could also increase their retail prices but this could mean that they could lose customer loyalty and increasing their competition.

Employment Economical Inflation & Disposable Income Poor economical climate means consumers will have negative attitudes and behaviours towards spending their money. If income tax is increased then this would affect Gap negatively, resulting in consumers not having enough disposable income to spend. This would also mean consumers will not want to purchase higher price stock and will go to competitors for cheaper alternatives due to lack of finances. However, this could also be a positive factor for Gap, as consumers who usually would purchase high end designer brands, could possibly start purchasing apparel from a cheaper alternative, which could result in it Gap balancing out their sales.

This chart below displays the correlation of employment of consumers aged 16-64, due to the double dip recession which is evident within this chart in years 2009 to 2011; more companies failed. However, there has been a recent increase of employment as proven within the chart which can be beneficial to Gap and their market health.

Fig 8

Over the last 7 years, many companies have gone into administration, resulting in thousands of employees being affected meaning there are no jobs and no disposable income, as this figure continues to rise, there is no surprise that Gap will be affected negatively.

“

Between May to July 2008 and May to July 2013, the number of employees and selfemployed people who were working part-time because they could not find a full time job more than doubled from 689,000 to 1.45 million.

”

“

”

The percentage of people aged from 16 to 64 who were in work for May to July 2013 (the employment rate) was 71.6% - lower than the figure of 72.8% for May to July 2008.

Social Demographics

Rights

Trends for the younger generation evolve quick and there are always new trends in every season, Gap do not cater for these trends as much as their competitors. This is resulting in the younger generation showing a negative attitude towards Gap. In order to increase brand awareness, Gap should target a young demographic of female and male by monitoring latest trends and by looking at what their competitors are doing in order to gain competitive advantage. Otherwise this can affect Gaps retail sales.

In 2012, Gap displayed a billboard of two males in one t shirt, displaying that they were supporting gay rights. In 2013, Gap featured a Sikh actor and fashion designer in their advertising campaign, these actions caused a lot of controversy in the US as people were insulted as well as other people applauding Gap. Both of these images portray that Gap wanted to impose that they are accepting to all race, gender and sexual preference. Resulting in Gap becoming a more accepted brand.

Lifestyle Changes Recently it has become a new lifestyle trend where people are becoming more health conscious. This is an emerging market for fashion companies as it allows them to sell a whole new range of clothing and accessories. Gap introduced ‘Gap Fit’ which catered for this new lifestyle craze, this increased their brand awareness as a result. Furthermore major events such as the Olympics encouraged this trend which gave Gap a new opportunity to raise brand awareness.

Birth Rates In 2012 birth rates were at an all time high; “There were 729,674 live births in England and Wales in 2012, increasing slightly (by 0.8%) from 723,913 in 2011.” (Source: Office for National Statistics Released: 10 July 2013) This is a beneficial figure to Gap for their baby Gap range as new parents will be inclined to purchase clothes. In the primary research a huge 72% said Gap was most suited for children and 41% said it was most suited for babies. However, this can be unstable information as in the first quarter of 2013 there was a 9% decrease meaning sales for baby Gap can be affected. “A 9% decrease in the number of births registered has been recorded for the first quarter of 2013, in comparison to the same period in 2012.”

Internet—Always Connected Internet being available almost everywhere has become an efficient way in saving time and transport, to shop online and access social platforms. Consumers are using their smart phones to access online shopping while they’re on the go. Consumers also benefit from being connected online to a bigger product range with more variety than in store sometimes. The use of being always connected means consumers can be kept up to date with Gaps latest products. However, this can also be a negative factor for Gap, as consumers will not be able to experience the store environment.

Technological

Legal

Speed of technology transfer

Legislation

As technology advances, transfer times of products become much faster. This can benefit Gap as they can target a trend and have a product ready to sell as quick as possible, making them much more fashion-forward if they utilise this new mean of technology.

Manufacturing legislations can change in the near future depending on the government systems. If a new legislation which hinders gap’s manufacturing process is enforced, they may have to change how they operate as a business which can cause a chain-effect of issues, leaving them tied up, or having to increase costs to cater for these new legislations.

Social media, Growth of Online vs Store Social media contains a free form of advertising within platforms such as Instagram, Facebook and Twitter thus meaning Gap can reach out to a younger generation on a digital level. Although social media is a huge part of consumer lifestyle, consumers can get distracted while online due to consumers being in their own comfort on their devices or in their own home. Although being online and connected has a positive influence on relationships with the consumer, it also has negative influences on availability of jobs. The growth of e-commerce has become a huge platform in terms of many users having access to online sites via the internet. Shopping online increases brand awareness and there is more variety available online. Exclusive lines such as Gap Maternity which is efficient for pregnant women, without the need to travel ensures practicality and comfort from Gap.com. Comparing online to store, it is evident that in store, consumers can experience the store environment and try items on instantly. Consumers also benefit from direct customer service and shop assistance. Store shopping is effective due to consumers avoiding delivery costs and long process postage returns.

Employment Law If the countries that Gap have their clothing manufactured implement new employment laws, for example certain aged workers in countries and receiving a certain minimum wage due to fair ethical manufacturing, Gap can incur higher costs of production, because they have to pay these workers more than they were paying before.

Trading Laws

Innovation

Trading laws can cause barriers when a company is sourcing their products from a different country./third party vendor. For example transportation costs, duty costs and amounts allowed to be transported to where they are to be sold. This can mean Gap have to either pay more or find alternate ways of trading. Also Fairtrade has been evolving and implementing new trade laws so these can cause barriers for operating.

As the future comes closer, research and development becomes more effective making brands much more innovative. If Gap invest more in innovation they can have a much more effective manufacturing process making their costs less in the long run. For example, automotive machinery that produces more clothes and requires less people, furthermore increasing their trend turnover time. However, this won’t help their employment ethics as employees will lose out on job opportunities.

(Source: 4ni Released: 30 August 2013)

Environmental

Pollution Laws & Corporate & Social Responsibility (CSR) As communities become more environmentally concerned about the earth’s condition, they enforce people as well as companies to contribute to the global environment. Corporate responsibility satisfies their consumers as it shows they’re more than just a business that want to make money. The government are also implementing new legislations for pollution levels produced by an individual company, just so there is an equal and respectable level of carbon footprints so the environment isn’t consistently being damaged. Organisations encourage all companies to go green, and Gap have been catering for this recently to become a more sustainable company. Gap have been measuring their carbon footprint in their manufacturing operations and supply chain (from manufacturing, via distribution to retail) and also have been reducing their wastage levels, recycling more of it to avoid it being sent to landfill sites. Gap have been working with their supplier partners to ensure that they themselves as well as their suppliers are reducing their water and energy use. This makes them a more responsible and respectable brand, giving them an additional USP (unique selling point).

“

as we move forward, we are building on our longstanding commitment to human rights through our efforts to minimize and improve our environmental impact.

”

Macro Trends that can change GAPâ&#x20AC;&#x2122;s future. 17

Key Macro Trends Table. Connected World

Middle Class

People are moving out of poverty and into the middle class. This enables demand for services and products to rise as the middle class will have a little more disposable income to spend. Increasing demand of products will allow economic growth resulting in a more stable economy for businesses.

Ageing World

As the birth rates are decreasing and life expectancy is increasing, medical advancements have been the core reason for this change. Expenditures may increase as older generation will have more savings (age related public spending), this isnâ&#x20AC;&#x2122;t guaranteed that disposable income would be spent on retail. Due to life expectancy increasing, this also would consist of health care costs. However, as more people will get older, more people will come out of work, this can cause labour shortages as the new generation are maturing much faster obtaining degrees easier than ever, resulting in working in their desired careers.

Emerging

Global Conscious

Unstable Economy

Urbanisation

Mobile phones, tablets and PCs have made the worldâ&#x20AC;&#x2122;s internet more convenient, time efficient and interactive. This means people are able to purchase products online at their own convenience. In the last few years, social media has advanced highly in terms of people utilising networks and having access to social platforms such as Facebook. Having a highly connected world is changing the path of how people connect with each other.

As communities become more environmentally concerned about the earthâ&#x20AC;&#x2122;s condition, they enforce people as well as companies to contribute to the global environment. A increase in recycling and reusing is ensuring consumers are happy and willing to maintain customer loyalty. As well as businesses wanting to look good in reducing their carbon footprint, if it keeps their consumers happy then business will keep this up resulting in influencing others.

With the economy being unstable, people are being more cautious and wise with their spending. People are wanting to save their money and not spend on luxury goods due to the uncertainty in whether the economy will pick back up.

People are moving from countryside areas into the urban areas with desires for better education, job prospects, better medical care/availability and to experience city life. This results in the demand for development in the economy as consumers want to purchase goods and services in order to maintain a metropolitan lifestyle.

Macro Trends for Gap.

Ageing World

Connected World With a world that is becoming connected quickly through the internet, Gap are already using this to their advantage by the use of social websites; Facebook, Twitter, Pinterest and Instagram all have become a vital part in the way that Gap display their products and keep consumers up to date. Social sites all come included with features that makes a ‘page’ or ‘social account’ much more personal to consumers by adding ‘like’ pages or ‘follow’ options. This ensures that consumers will be able to know when new products are coming out, be notified about seasonal offers and what they can expect in terms of what Gap will be doing in the near future. The ability to access these social pages is becoming easier by the day as consumers are using the latest technology to keep up with new trends.

As the younger generation are maturing much faster now, due to it becoming easier for generations to get degrees and go into successful careers, Gap will need to reconsider the style of clothing and accessories that are designed for a specific age range. If Gap fail to meet these demands and requirements, their trends will not be current or suitable for the specific target market causing a decreased number in sales and less brand awareness. However, an increase in life expectancy also means more money would be going into health care, resulting in less disposable income from the older generation.

Global Conscious ‘Going green’ has become a large factor within the retail industry, businesses are encouraged to recycle and reuse their waste in order to become environmentally friendly. As Gap are already complying with new environmental changes, they have become a consumer friendly and a more respectable brand. However, unfortunately as Gap’s products are manufactured by third party vendors, such as countries like Bangladesh, Gap will use more transport fuel and produce more pollution than apparel competitors that manufacture in cities they distribute in. A competitor for Gap in this case would be American Apparel who have a vertically integrated system where they manufacture their own clothes and have a factory within a 30 mile radius in the US resulting in a smaller carbon footprint.

Unstable Economy Poor economical climate means consumers will have negative behaviours and attitudes towards expenditure. this would affect Gap negatively, resulting in consumers not having enough disposable income to spend. This would also mean consumers will not want to purchase higher price stock and will go to competitors for cheaper alternatives due to lack of finances. However, this could also be a positive factor for Gap, as consumers who usually would purchase high end designer brands, could possibly start purchasing apparel from a cheaper alternative, which could result in it Gap balancing out their sales.

Urbanisation Urbanisation is a huge factor in the economy as well as the world which is constantly growing.

Emerging Middle Class

“

”

National Geographic projects that two-thirds of people worldwide will live in urban areas by 2050.

As people are wanting to live the metropolitan life and demand services and products, Gap can benefit from this macro trend as consumers will have more disposable income to spend because they can afford city life. As this would proceed, the economy would slowly get better by people spending, meaning Gap would be able to see an increase in sales. This could also result in customer loyalty if disposable income increases and consumers are happy with what Gap are providing.

Figures are becoming larger than ever with regards to people shifting from smaller villages into bigger cities. People are moving into the cities to experience a better living, improved education and bigger job prospects for their future. For a retailer such as Gap, this could open bigger opportunities in terms of new ventures into franchise businesses, this could also mean the middle class have more disposable income to spend in which could result in Gap’s sales increasing. 22

Micro Trend Analysis

Brand Positioning - Perceptual Map

Market Health Fig 9

Fig 10

The above chart shows sales revenue worldwide of the past 4 years from Gap and one of its leading competitors, H&M. As the chart displays, in 2009 Gap had higher sales revenue than H&M, then from 2009 and onwards, each year H&M have gained more sales revenue than Gap. Gap sales fell by 2.26% in 2010 resulting in a $330 million loss compared to 2009. In 2010, it is evident that the economy has been stable for a business to grow as H&M sales prove this by beating Gap in the years after. Especially in 2012 where H&M had an increase in sales by $2.5 billion from 2011; thus leaving Gap behind with $14.55 billion and H&M themselves with $18.2 billion sales revenue in 2012. Gap’s figures being low could be because Gap’s advertising in the Europe is not as advanced as it is in the US. H&M have a huge advertising field in Europe, displaying their brand and products in brochures, magazines, catalogues, online advertising and billboards. H&M have the same target market audience as Gap, 1830 year olds, however how can it be that H&M still are beating Gap in their sales revenue each year? The answer to this is the simple fact that Gap do not provide on trend clothing for the younger market, this is allowing H&M to gain a stronger market position. The younger generation do not have as much disposable income resulting in them choosing to purchase products from cheaper alternative brands like H&M.

“

for every generation, there’s a Gap.

”

Brand Overview Brand Mission Statement Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring “Gap, product design, unique store experiences, and compelling marketing.

”

Brand Essence

Fig 11

Brand Audit

How Gap makes consumers feel…

Brand Experience

Comfortable due to everyday wear

Calming, Simple, Plain, Classic, Basic, Casual.

Secure and safe choice of clothing for children

Family Orientated, Accessible for all, Reliable and Safe.

Fresh and contemporary

GAP Accessible for all

Simple and Casual Gaps Promise

Brand Personality

To always provide high quality, durable clothing

Good customer service Suitable for all

Quality clothing with a good brand image

Thoughtful and sensible

Always suitable for everyone

Fresh and classic

Brand Positioning Statement Gap target a market audience aged between 18-30 years for both genders. In the UK they have a lot of high street competition which includes brands such as Next, Primark, New Look and H&M resulting in their leading competitors. Gap promises to deliver great customer service both in store and online by emotionally connecting with the consumer. They have been the most successful brand in terms of offering family orientated, contemporary and casual clothing which is suitable for everyone. The reasons to believe this is that although Gap’s sales may have been affected over the years, they have always offered the same great quality and sensible clothing.

Brand Health Check

Brand Overview

Awareness

Pen Portrait

Fig 12

Busy life schedule - but look for good quality clothing with no budget of spending and a good sense of fashion knowlegde

Male and females who take pride in their appearance since Gap do not offer a plus size range. Occupation: University Students and People in full/part time work

Target Sociable consumers, people on the go who are organised and know what they want to achieve

Consumer

Family orientated consumers who have younger relatives or children

Male and females working in the city with good access to high street stores

Male and females living a metropolitan life with a good sense of ‘basic casual’ fashion trend

Although Gap consider their target market audience to be 18-30 year olds, research shows 57.38% of people do not shop at Gap and 52.47% were in the age group of 15-20. Gap do not use a huge amount of advertising in the UK which includes reprint of advertisements, magazines, catalogues and motion pictures this could be a huge factor as to why Gap are not reaching expectations for their target market in the UK. Competitors such as New Look, H&M and Next who have a lower price range and a lower quality than Gap use these forms of advertising. This means the younger generation are being able to relate with these competitors on a whole new level. These competitors are beating Gap in terms of sale figures due to them being able to understand what the current age group of 18-30 demand. They are constantly connected and keeping on trend making sure consumers can see what they have to offer through various forms of advertising.

Usage 57.38% of consumers do not shop at Gap and only a mere 8.20% shop at Gap once a month. This could mean they’re finding cheaper alternatives rather than Gap. Consumers are not purchasing casual sports wear from expensive retailers such as Gap, instead they are reaching for lower priced competitors who sell the same style apparel for a quarter of the price. Proven by results from consumers, 62.30% shop at H&M and only 1.64% shop at UNIQLO—a brand that Gap consider to be a competitor.

Perceptions Questionnaire results revealed Gap are ’boring, casual, basic and simple’ to describe Gap; this demonstrated that Gap were not considered to be a strong high street competitor. Words such as ‘on trend, fashionable, bright or creative’ were not used. This could be because of the majority of Gap’s products being simple, comfortable and casual. The age demographic of 18-30 year olds are the main focus of many competitors because this age demographic who are picking up magazines and using the internet to follow the current trends in order to become a trend follower.

SWOT Analysis Gap Strengths • Store layouts are not crowded in any Gap store around the world which means it is easy for the consumer to find their desired item.

• Gap have plain and simple store layouts which mean they are not aesthetically pleasing to the eye, not suited for the younger generation.

• Apparel is durable, strong and long lasting which allows consumers to have consumer loyalty & trust with Gap.

• Gap retail basic, casual clothing which means they do not have a unique selling point about them as they have always been a casual/sportswear style of brand.

• Gap have worldwide stores in Mexico, US, China which means they have a very large target market audience, including 3465 stores and over 140000 employees gaining global recognition. • Gap have a strong market position due to their wide audience target market areas such as: Gap body, Gap fit, Gap maternity, Gap kids, baby GAP.

Brand Opportunities

Weaknesses

• Gap hold a strong brand image through successful marketing via print, TV and online shopping in the US. • Gap also have distinct brands which include Banana Republic and Piperlime who are higher end brands and affordable brands in their portfolio which include Old Navy and Athleta.

• Gap are not globally known as a trend setter which means GAP is less popular for fashion forward clothing. • Gap depend on external suppliers resulting in a slower turn around for new trends and clothing compared to competitors. Third party vendors can cause product shortages, shipment delays and increase costs. • Gap is heavily dependant on US image and promotion, not enough advertising in the UK and Europe – potentially a massive target audience.

• Gap Maternity is currently only available online, good for pregnant women on the go, but not ideal for store shoppers who like • Gap’s online store includes international shipping with access to to try things on before purchasing. shop for all portfolio brands and for consumers on the go.

Opportunities • Gap can change into a vertically integrated system meaning they would save transport costs and time, this would also lead Gap into being an on-trend brand, resulting in a stronger relation to consumers. • Gap could change their store layouts to be more colourful as opposed to the classic white and denim/blue appearance. Gap could increase sales through online promotion. • New ventures into Europe & China can result in increasing profits, could also look into opening concessions. • Gap could introduce student discount like their competitors do, this could be a strong factor to draw attention and gain brand awareness within the younger generation who are studying and do not have a mass amount of disposable income.

Threats • Gap being a well recognised brand attracts a lot of competition. • Due to Gap not being a on trend high fashion brand, their target market audience are going to competitors for cheaper and on trend clothing. • There’s always rapid changes in fashion trends, meaning competitors are targeting their market audience quicker with 2 week turn around for new apparel and accessories. • Consumers are in search for lower prices and with the employment figures not increasing, consumers are spending less. • Many competitors are located and based close to every Gap store meaning competition is high and consumers looking for cheaper alternatives.

• Gap could introduce a graduate scheme which would allow Gap to employ people at their target market age, 18-28, as todays generation are the most fashion forward and on trend, they could also introduce student discount. • Gap could introduce a line for the younger generation which consists of cheaper clothing with maybe lesser quality, competitor such as ZARA have done this and have had success with their TRF line for teenagers and younger generation. • Competitors such as New Look, ASOS and Primark cater for plus size market, Gap could consider this as a new market to potentially increase sales and attract more consumers and a bigger target market.

Conclusion & Recommendations.

Ansoff Matrix.

During the research there were many factors that could all be put into place to bring Gap back to its full potential in order to gain brand awareness and more brand strength in terms of market position.

New Markets

Existing Markets

Existing Products

New Products

Gap Maternity - available online only, however should - Gap recently introduced Gap fit range which highbe introduced into all stores for ease of consumers to lighted the fact that Gap were catering for consumers try on products. who were health conscious. This also meant that consumers could see that Gap were promoting health Gap Kids - catering for the younger children making and wellness. Gap family friendly. - Gap also recently introduced Toddler Boy and TodBaby Gap - range of baby clothing and accessories dler Girl which is a range for ages 6 months—5 years available, shows consideration for family orientated along with baby bedding. consumers. - Gap can produce a line for a younger generation, as Gap Mens from research it showed that the majority of the reGap Women sults were from 15-20 year olds and half of the sample said they do not shop at Gap. Majority of the sample also branded Gap as basic, casual and boring. These are all ranges that currently exist within Gap. Gap could introduce new trends influenced by current Gap also offer tall sizes, petites, husky sizes and kids fashion which would then be available to their current slim providing a more thoughtful range for a wider target market audience of 18-30. This would ensure audience. an increase in Gap’s sales and more brand awareness. - Gap could grow to open stores in the Asian market as these countries are developing fast and have more disposable income to spend. This would mean that Gap would see an increase in sales with existing products which they would be introducing existing products to a new market.

- In order to become a bigger brand which offers a wide range of products and services (online), Gap should consider bringing out a home ware range. This would be beneficial as loyal customers would be more inclined to see what Gap have to offer.

- Gap could also bring out a plus size range available to women and men. Currently there is a huge in- Gap opening stores and franchises around the world crease in plus size sales, as women and men are providing them with a new market each time in each becoming more on trend with brands such as Primark country. and New Look are providing these. This would give Gap a greater chance to be recognised and respected widely.

It was apparent that the store was not doing enough to stand out from the crowd in a high street as it was only being recognised as the ‘navy and white’ brand. The store is well known for being ’sensible’ and ’basic’ which does not give Gap enough edge resulting in the younger generation not becoming loyal consumers. Gap need to reconsider their brand appeal by introducing new store layouts.

Introducing student discount and in-app phone promotions would also be a benefit as it would attract students to purchase products that they can’t afford. Another opportunity that Gap could introduce is a graduate scheme, where the younger generation can apply their fresh on trend design ideas to products in order for Gap to become a more current on trend brand.

Gap could introduce a line for the student generation which consists of cheaper clothing with maybe lower quality, competitors such as ZARA have already catered for this. Competitors such as New Look, ASOS and Primark cater for plus size market, this can open up a new market for Gap.

Gap could become vertically integrated to save transport costs, delays and become eco-friendly. Also allowing them to target trends faster. Money saved from transporting goods could be spent on advertising within the Europe to gain a better brand awareness. Gap currently do not have advertisements in the UK within magazines, motion pictures and brochures—a big market for Gap to promote.

Another factor which Gap could consider strongly would be concessions within department stores. This would allow consumers to walk past Gap as a concession meaning it could lead them into purchasing and noticing Gap products more. This would also mean consumers wouldn’t have the choice in walking into a Gap store as Gap would be a section in a department store, resulting in a bigger audience.

References.

Page 24 Image of Gap Instore Layout available at: http://styleandfashion.blogosfere.it/2011/08/gap-apre-il-primo-monomarca-aroma.html

IMAGES

Page 24 Image of Consumers Outside Gap Store available at: http://www.weartrends.com/a/9552.aspx

Front Cover Image available at: http://www.pinterest.com/pin/72409506480372786/ Page 4 Image available at: http://www.pinterest.com/pin/72409506482024513/

Page 24 Image of Youngsters from Gap Campaign available at: http://blog.agilitycms.com/best-in-show-the-gap-celebrates-theholidays-with-pinterest-and-instagram/Sibling-Love-The-Automics-Bandmates

Page 5 Contents Image available at: http://www.justjared.com/photo-gallery/753041/gap-holiday-2007-ad-campaign-02/

Page 28 Image from Gap Campaign available at: http://www.pinterest.com/pin/72409506479661424/

Page 6 Image of Gap founders available at: http://www.pinterest.com/pin/40321359133702585/

Page 31 Image of three women available at: http://www.pinterest.com/pin/72409506482443018/

Page 7 Image of first Gap store in San Fransisco available at: http://urban-trendz80.blogspot.co.uk/2010/12/gap-inc.html

Page 31 Image of Kenna & Beau Garrett available at: http://www.pinterest.com/pin/72409506482443029/

Page 7 Image of Gap Store available at: http://www.zimbio.com/pictures/PQJIHOKsXn5/Gap+Reports+Quarterly+Earnings/ TvJcrqd1d87

Page 31 Image of The Gerasimovich Sisters available at:: http://www.pinterest.com/pin/72409506482443032/

Page 7 Image of Gap store available at: http://retaildesignblog.net/2011/08/03/gap-store-by-dalziel-and-pow/

Page 35 Image of Young Generation available at: http://www.pinterest.com/pin/72409506478671501/

Page 7 Image of Gap store available at: http://www.nytimes.com/2011/05/19/fashion/gap-now-casts-a-wide-net-criticalshopper.html?_r=0

Page 35 Image of Children available at: http://www.pinterest.com/pin/72409506479118671/

Page 24 Image of Gap Menswear Instore available at: http://www.nytimes.com/2008/10/16/fashion/16CRITIC.html

Page 8 Primary Research Images, taken in GAP Oxford Circus highlighting sports wear and casual clothing - November 2013 Page 12 Image of Houses of Parliament available at: http://www.bing.com/images/search? q=london+houses+of+parliament&qs=AS&sk=&FORM=QBIR&pq=london%20houses%20of%20par&sc=220&sp=1&qs=AS&sk=#view=detail&id=AEC50790A2E46BE17543F121B57A517E0200637B&selectedIndex=0 Page 14 Image of Billboard Campaign available at: http://www.out.com/fashion/truman-says/2012/05/04/gap-unveils-new-adfeaturing-same-sex-couple

Page 35 Image of Boys available at: http://www.pinterest.com/pin/72409506480375015/

Page 35 Image of Two Young Children available at: http://www.pinterest.com/pin/72409506479661469/ QUOTES Page 10 “It faced the rise of value retailers such as Matalan and Primark and discounters including TK Maxx, as well as more established players Marks & Spencer, Next, Topshop, H&M, River Island and New Look.” Holland, Tiffany - Published 30 November, 2012

Page 14 Image of Sikh Advertising Campaign available at: http://www.bing.com/images/search? q=gap+inc+sikh&FORM=HDRSC2#view=detail&id=B05960F578956D0AF8D62C87E07639B55A25A2E6&selectedIndex=4

Available at http://www.retail-week.com/analysis-gap-uk-faces-fierce-competition/5043213.article#

Page 15 Image of Court Mallet available at: http://blogs.warwick.ac.uk/pathwaystolaw/

“Advertising tools which are not currently being used by Gap Inc. both in UK and US include motion pictures, brochures and booklets, directories, and reprints of the ads.”

Page 16 Image of Gaps Environmental Achievements available at: http://www.gapinc.com/content/gapinc/html/ social_responsibility/our_commitment.html

Page 11

Dudovskiy, John - Published 24/06/2012

Available at: http://research-methodology.net/gap-inc/

Page 18 Image from Back to Blue Campaign by Gap available at: http://www.pinterest.com/pin/72409506481979030/

Page 11

Page 20 Image of Gaps Back to Blue Campaign available at: http://urbanbushbabes.com/2013/09/gap-back-to-blue-campaign-ithink-i-want-everyone-to-know-that-we-are-all-connected-in-some-way/ Page 22 Image of Gaps Facebook Page —Author’s Own Taken on 22/01/2014

“While specialty apparel retailer Gap Inc has enjoyed steady growth in the U.S. for the past few years, it has struggled in European markets. The company's namesake brand's revenues in Europe have come down from $703 million in 2010 to $691 million in 2012 despite continued expansion.”

Page 22 Image of Gaps Twitter Account—Author’s Own Taken on 22/01/2014

Trefis - Published 02/01/2014

Page 22 Image of Gaps Facebook Page—Author’s Own Taken on 22/01/2014

Available at: http://www.nasdaq.com/article/can-france-the-uk-lift-gaps-european-results-in-the-future-cm315494

Page 24 Image of Gap Shop Display available at: http://www.pinterest.com/pin/72409506481017386/

Page 12

Page 24 Image of Gap Instore Layout available at: http://styleandfashion.blogosfere.it/2011/08/gap-apre-il-primo-monomarca-aroma.html

“Between May to July 2008 and May to July 2013, the number of employees and self-employed people who were working parttime because they could not find a full time job more than doubled from 689,000 to 1.45 million.”

Page 24 Image of Gap Shop Display available at: http://social.eli.ubc.ca/2011/06/29/good-deals-on-clothes-in-vancouver%E2% 80%A6/

Office for National Statistics- Published11/09/2013

Page 24 Image of Gap Shop Display available at: http://www.ecouterre.com/target-gap-walmart-hm-patagonia-launch-sustainable -apparel-coalition/gap-store/

“The percentage of people aged from 16 to 64 who were in work for May to July 2013 (the employment

Page 24 Image of Gap Instore Layout available at: http://ramarights.blogspot.co.uk/2011_12_01_archive.html Page 24 Image of Gap Instore Childrens Layout available at: http://www.moodiereport.com/document.php?doc_id=33496 35

Available at: http://www.ons.gov.uk/ons/dcp171778_325094.pdf

Page 13

rate) was 71.6% - lower than the figure of 72.8% for May to July 2008.” Office for National Statistics– Published 11/09/2013 Available at: http://www.ons.gov.uk/ons/dcp171778_325094.pdf 36

Page 13

Page 26

“There were 729,674 live births in England and Wales in 2012, increasing slightly (by 0.8%) from 723,913 in 2011.” Office for National Statistics

Published 10/07/2013

Fig 9: Chart on Market Health of Gap and H&M created by Author with figures from the following websites: http://www.hoovers.com/company-information/cs/revenue-financial.HM_Hennes__Mauritz_AB.1bdef5deeef07f57.html

http://www.ons.gov.uk/ons/rel/vsob1/birth-summary-tables--england-and-wales/2012/stb-births-in-england-and-wales-2012.html Page 14

http://www.marketwatch.com/investing/Stock/GPS/financials Page 27

“A 9% decrease in the number of births registered has been recorded for the first quarter of 2013, in comparison to the same period in 2012.” Published on 30/08/2013 Available at: http://www.4ni.co.uk/northern_ireland_news.asp?id=168348

Fig 10: Brand Positioning Map created by Author with Images of Brand logos from Google listed below: http://www.shops2b.co.uk/primark/

Page 17 “As we move forward, we are building on our longstanding commitment to human rights through our efforts to minimize and improve our environmental impact.”

http://blogs.arts.ac.uk/fashion/2010/07/27/lcf-announces-footwear-collaboration-with-new-look/nl-logo/ http://www.wearefashion.nl/?attachment_id=1871

Available at: http://www.gapinc.com/content/csr/html/environment/operating-context-and-strategy.html

http://www.thedrum.com/news/2013/07/19/tesco-launches-transactional-store-kiosks-its-ff-clothing-range

Page 23

http://www.portfolio.materials.manchester.ac.uk/rujvinder-kaur/2013/04/17/work-experience-miss-selfridge/

“National Geographic projects that two-thirds of people worldwide will live in urban areas by 2050.”

http://www.kcfn.co.uk/Professionals/WhiteStuff

Golden, Jaime

http://www.energyfm.net/cms/news_story_186670.html

Available at: http://www.ehow.com/info_8795881_advantages-disadvantages-ruralurban-migration.html

http://internetretailing.net/organisations/rfaf/

Page 26

http://www.talesofanniebean.com/2012/02/river-island-spring-12-ad-campaign.html

“For every generation, there’s a Gap.”

http://commons.wikimedia.org/wiki/File:UNIQLO_logo.png

http://www.chacha.com/question/what-is-the-slogan-for-gap

http://ns.seeklogo.com/tag.html?q=Topshop

Page 29 Mission Statement “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.”

http://sharealogo.com/fashion/marks-spencer-vector-logo-download/

Available at: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/GameStop-MissionStatement.htm

http://www.humanimpactsinstitute.org/HiiPartners.php

ILLUSTRATIONS

http://www.ragtradejobs.com/fashion-job-article-85311920.htm

http://thenextweb.com/dd/2013/09/05/9-major-logo-redesigns/#!sVVQA http://www.breastcancercampaign.org/about-us/corporate-partners/debenhams

Page 9 Fig 1: Questionnaire results table created by www.surveymonkey.com Fig 2: Questionnaire results chart created by www.surveymonkey.com Page 10 Fig 3: Questionnaire results chart created by www.surveymonkey.com Fig 4: Questionnaire results pie chart created by Author on Microsoft Publisher Page 11 Fig 6: Research Illustration on ‘If you could describe Gap in three words, what would they be?” created by Author on Microsoft Publisher

http://www.chfed.org.uk/events-and-fundraising/corporate/house-of-fraser/ http://juice-club.co.uk/?attachment_id=112 http://theoplife.com/category/op-life/page/2/ http://msn.juiceonline.com/my-levis-brand-501-interpretation-hanif-idris-vincent-paul-yong/ http://en.wikipedia.org/wiki/Versace http://freevectorlogo.blogspot.co.uk/2010/06/harrods-logo.html http://www.stormgrounds.com/fullwallpaper/320/Louis-Vuitton-Logo http://www.thesaucequeen.co.uk/we-have-been-accepted-as-a-supplier-for-selfridges/

Page 13

http://tommytoy.typepad.com/.a/6a0133f3a4072c970b01539256c677970b-popup

Fig 7: Chart showing the figures of companies going into administration

Page 29

Available at: http://www.retailresearch.org/whosegonebust.php

Fig 11: Brand Essence Model Created by Author

Fig 8: Chart 3 on Employment Rate

Page 30

Available at: http://www.ons.gov.uk/ons/dcp171778_325094.pdf

Fig 12: Brainstorm of Target Consumer Created by Author

Appendix 1

Bibliography.

Blank Questionnaire

ARTICLE

Gender?

SUTTLE,R. Chron, Small Businesses. The Macroenvironmental Factors Affecting the Clothing Industry.

Male Female

Where else do you shop? (Select all that apply) Next H&M Primark River Island

BOOKS EASEY, M, 1995, FASHION MARKETING, BLACKWELL SCIENCE ltd

What is your age?

BRASSINGTON, FRANCES AND PETTITT, STEPHEN ESSENTIALS OF MARKETING THIRD EDITION PEARSON BOOKS

15-20

WEBSITES

31-40

http://www.fashionunited.co.uk/fashion-news/fashion/gap-still-struggling-in-competitive-markets-2012020814046

41-50

http://www.lexisnexis.com/uk/nexis/results/docview/docview.do? docLinkInd=true&risb=21_T19054814138&format=GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=29_T19054814142& cisb=22_T19054814141&treeMax=true&treeWidth=0&csi=7924&docNo=14

51-60

21-30

http://www.lexisnexis.com/uk/nexis/search/LAFNContinueHandler.do?formBeanKey=37_T19054814127 http://www.marketwatch.com/investing/Stock/GPS/financials

60+

Do you have children?

http://gapinc.com/content/csr/html/human-rights.html

White Stuff Levi

UNIQLO Marks and Spencerâ&#x20AC;&#x2122;s Department Stores (Please Specifiy) Other (Please Specify) Are you satisfied with the range of products that Gap offer?

Yes

http://www.dooyoo.co.uk/offline-shopping-misc/gap/312553/

Fatface

Very Satisfied Satisfied Neither Satisfied or Dissatisfied Dissatisfied

http://www.adviceguide.org.uk/wales/work_w/work_rights_at_work_e/basic_rights_at_work.htm http://ezinearticles.com/?Uses-of-the-Internet&id=1034725

If so, do you shop for them at Gap?

http://academic.mintel.com/sinatra/oxygen_academic/display/id=685835?highlight#hit1

Yes

http://www.mirror.co.uk/news/world-news/gap-under-fire-from-one-million-842769#.Ut2OlKNFAdU

http://www.out.com/fashion/truman-says/2012/05/04/gap-unveils-new-ad-featuring-same-sex-couple http://en.wikipedia.org/wiki/Gap

How often do you shop at Gap?

http://www.gap.co.uk/?tid=gups016593&kwid=1&ap=7&sem=true&mkwid=Yb3ZHoaZ&adid=tnc+jrofvgr http://www.franchising.com/gapinc/?franchise=information&view=gapinc

Once a week Once every month Once every 6 months Once a year Never

What kind of shopper are you? Bargain Shopper Loyal Customer Impulse Buyer 39

Other (Please Specifiy)

Strongly Dissatisfied Who do you feel Gap as a brand is most suited to? (Select all that apply) Male Female Children Baby Students

In full time park In part time work Retired Unemployed Married Single In a relationship If you could describe Gap in three words, what would they be? 40

Appendix 2 Completed Questionnaire Gender? Male Female

What is your age? 15-20 21-30

31-40 41-50 51-60 60+

Do you have children? Yes No

Where else do you shop? (Select all that apply) Next

Appendix 3 - Questionnaire Results

H&M Primark River Island

All results from questionnaire have been collected and formed into graphs by www.surveymonkey.com which have been used for Appendix.

Fatface White Stuff Levi UNIQLO Marks and Spencerâ&#x20AC;&#x2122;s Department Stores (Please Specifiy) Other (Please Specify) Versace Are you satisfied with the range of products that Gap offer? Very Satisfied Satisfied Neither Satisfied or Dissatisfied Dissatisfied Strongly Dissatisfied

If so, do you shop for them at Gap?

Who do you feel Gap as a brand is most suited to? (Select all that apply)

Yes

Male

Female Children

How often do you shop at Gap?

Baby

Once a week

Students

Once every month

In full time park

Once every 6 months

In part time work

Once a year

Retired

Never

Unemployed Married

What kind of shopper are you?

Single

Bargain Shopper

In a relationship

Loyal Customer

If you could describe Gap in three words, what would they be?

Impulse Buyer

Behind, plain, dark. 41

All results from questionnaire have been collected and formed into graphs by www.surveymonkey.com which have been used for Appendix.

If you could describe Gap in three words, what would they be? Fresh, neutral, simple Minimalistic, good quality and very western brand Casual, comfortable clothes Plain Basics, Simple, Casual Family, casual, comfy Childish, dull, unfashionable Good quality, long lasting, basic Simple, Classic, Quality Classic, preppy, simplistic Comfortable Boring Basic Dated brand, American Nice Clothing Brand Quality, plain, practical Functional, basic, classic Casual clothing brand Affordable Quality Practical, Variety, Safe. Not bad quality Simple, childish, smart Slightly over priced Expensive, good quality Great quality, timeless, casual Simple, basic and durable Affordable, simple, plain Recognisable, high street Easy, everyday, comfy Good quality, smart and casual Plain, Classic, Simple Casual comfortable active Basic, comfortable, casual Simple practical safe Boring, fine, gap kids Simplistic, comfortable, affordable Casual, Basic, Cheap Convenient, Safe, Standard Plain, Affordable, Casual Basic, reliable, high-quality Good, Amazing, Practical Behind, plain, dark No store proximity Casual clothing wear Boring, up-market, timeless. Hoodies, sportswear, comfortable Slouchy clothes, hoodies, childrenâ&#x20AC;&#x2122;s wear Casual, comfy, affordable Good prices, simple clothing and unique Functional, boring, outdated Great, style, lovely 45

WORD COUNT: 1986 Navdeep Kaur Khatkar N0440148 Fashion Marketing & Branding

Brand Situational Analysis Report