Strategic Marketing at Gap Inc.

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Guidance on Strategic Marketing Module 1 Case
Strategic Marketing at Gap Inc.
Introduction
Gap Inc. is one of the leading clothing retailer in United States of America which is selling fashionable products to different segments of the market with its different brands such as Gap, Banana Republic, Old Navy, Athelta and Hill City. The paper tries to explore the demographic and psychographic segments of the market and the potential new customer segment and the role of customer relationship management.

Customer Demographics and Psychographics
Gap Inc. is one of the leading retailer in United States of America specializing in clothing for different segments of the market with major brands such as Gap, Old Navy, Banana Republic, Athleta and Hill City (Gap Inc. Brands, 2019). The company was formed in 1969 as the founders Doris and Don Fisher realized that there is a generation gap that is existing due to absence of availability of jeans that fits well (Gap Inc., 2019). This signifies that the company catered at that time to the youth in America. Gap has developed different brands for the different segments of the market. Athleta brand has been developed for targeting trendy women who are fitness conscious (Meyersohn, 2019: Mar. 7). Therefore, the demographic segment of men and women are separated here. Also, the psychographic segment of Lifestyle is the focus with Athleta targeting the sports conscious women. Old Navy has been targeting the lower income segment of the market with its Old Navy stores and this is the reason that the company is now splitting Old Navy as a separate company and Gap comprising of brands such as Gap, Banana Republic, Athleta, Intermix and Hill city - the brands focusing on fashion into a separate company (Chen and Fernandez, 2019: Feb. 28). Therefore, demographic segmentation has been done with a focus on different income groups by the company. An analysis of the Gap products (Gap Inc., 2019) reveals that the company has been using the gender as segmentation targeting men with its hill city brand and women with its Athleta brand. The company also uses the different age groups with the 'Gap' brand focusing on segments of babies, toddlers, girls and boys, men and women.
Therefore demographic profile of existing market segment is as follows:
S.No. Brand Demographic Market Segments
1 Gap Age groups: Babies, Toddlers, Youngsters, Adults
Gender: Girls, Boys, Men, Women
2 Athleta Gender: Women
3 Old Navy Income Group: Low and middle income group
Age groups: Babies, Toddlers, Youngsters, Adults
Gender: Girls, Boys, Men, Women
4 Banana Republic Gender: Men & Women
5 Hill City Gender: ...