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Analyze Gap Inc from a Marketing Perspective

Analyze GAP INC from a marketing perspective

1. Recommended Marketing Plan
A. OBJECTIVES. State what the firm should be trying to accomplish. These should be tangible and measurable.
B. SPECIFICS. Describe the specific elements in your marketing plan, with particular attention to changes from current practice, with the reasons for the changes.

2. Alternatives
This is a brief outline of the choices available to the organization with pros and cons.

Solution Preview

Analyze GAP INC from a marketing perspective

1. Recommended Marketing Plan
A. OBJECTIVES. State what the firm should be trying to accomplish. These should be tangible and measurable.

Pressler's tenure is marked by slow down in sales. For example since May 2004, Gap's corporate same-store sales have risen only in two months. After they fell 8% in December, Gap reduced its fourth-quarter earnings projections for the second time in as many months and they are now expected to be US$200m lower than first forecast. That's on top of an 11% drop in third-quarter profits. Hence its market share is going down.
Its revenues peaked at $16.27bn in 2004 and fell to $16bn last year. Through the first three quarters of 2006, they were off 1.7%, to $11bn. Pressler adapted more of the cost cutting rather than focusing on needs of customer.
For example Banana republic tried to woo the same high-end consumers as J. Crew but its merchandize lacked variety in offering luxury fabrics, like cashmere, that those shoppers wanted.
In 2005, while department stores couldn't sell enough $100-plus premium jeans, the Gap skipped denim and tried to push khakis. "Pressler went too far in focusing on costs at the expense of merchandising," says Christine Chen, senior research analyst at Pacific Growth Equities.
Rather than trying to be everything to everyone again, says David Bassuk, retail consultant at Kurt Salmon Associates, Gap ought to focus its brands on a narrower group--shoppers in their 20s and 30s.
Moreover GAP's reaction time is slow as compared to its competitors such as Zara, Mexx etc. due to its huge size and operations. Hence we recommend following:
1) Our primary goal is to be the leader in all the segments GAP operates. For this we will continue the product differentiation strategy and developing the strong brands that is recognized nationally and eventually around the world. For this we wish to establish a successful partnership with our consumers, dealers, and other parties, as well as a commitment to social responsibility. Our goal to increase revenue will occur through:
? Our Internet infrastructure
? Pursuing publicity
? Increasing our reach
? Satisfying the consumers with innovative products
? Posting content around the Web
? Advertising
Head of Marketing will be responsible for the above mentioned objective
2) Another goal is to create high brand awareness and consumer loyalty, as well as ensuring convenience to them.

B. SPECIFICS. Describe the specific elements in your marketing plan, with particular attention to changes from current practice, with the reasons for the changes.

Recommendations
It has to adapt the product differentiation strategy by providing unique benefits to the consumer. This can be done by being more customer focused. It has to adapt itself as per the needs of the customers. Its product portfolio should delight the customers. One of the most important elements in creating a successful business is having happy, satisfied customers that keep coming back and it also leads to word of mouth advertising. It has to improve the customer service by laying down the customer standards. Customer service which is "the behaviors and attitudes of a company and its personnel toward customers, during all interaction and communication with them" (Swartzlander, 2004, p. 1) is the heart of an organization. As today's consumers are becoming more price conscious, technologically advanced, demanding and convenience driven. Thus, the key for success in today's tumultuous marketplace is exceptional customer service as this allow an organization to prosper in this highly competitive marketplace. (Kotler, 2003) Thus Gap's objectives should be to ensure it process quality products, that the customer is ...

Solution Summary

This in-depth solution of 2232 words contains a marketing plan for Gap Inc, detailing the objectives, specifics and alternatives of the company. All references used are included.

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