Published by MBA Skool Team, Last Updated: November 08, 2017
Marketing Strategy of GAP analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on GAP marketing mix, help the brand succeed.
GAP marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the GAP Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
GAP Product Strategy:
The product strategy and mix in GAP marketing strategy can be explained as follows:
Gap is a popular clothing and accessories brand spread globally. Gap Inc. provides products in its marketing mix strategy like Tshirts, jeans, jackets etc for use in daily life, sunglasses for everyone, shoes, jewellery, perfumes etc. The brand wise products can be seen as below:
GAP: Trendy shirts, t-shirts, denim apparels, sunglasses, etc., basically for summer and spring seasons
Banana Republic: This is slightly premium segment dealing in better craftsmanship and luxurious materials. The products include clothes, sunglasses, accessories, footwear, bags, and perfumes
Old Navy: Widespread types of apparels, with target of ‘lower middle to middle income consumer
Athlete: sports apparel including yoga, tennis, skiing and seasonal sports.
Thus, the wide range of products by Gap Inc, with different brand names, help target the customers of both mass market and premium segment.
Below is the pricing strategy in GAP marketing strategy:
GAP Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read GAP SWOT Analysis, STP & Competitors
GAP Price/Pricing Strategy:
Following is the distribution strategy in the GAP marketing mix:
In US markets, Gap is the market leader in its segment. Apparel industry is highly competitive and hence it following a competitive pricing strategy in its marketing mix. Its major competitors are American Eagle outfitters, Urban Outfitters Inc. and Macy’s Inc. Gap protects its market share by optimizing cost for offering reduced prices for quality products. The demand for products, offered by GAP is quite inelastic (clothing being the basic need), although the market is quite price sensitive. People buy apparels that are more affordable to them. With this in mind, Gap shifted its focus towards a wider target segment since 2014. It optimized its operations for decreased cost and reduced prices. The supplier power in this industry is also limited due to many options available. The new pricing strategy of Gap Inc. integrates the combination of psychological and product line pricing techniques. It achieved this through localizing the inventory of its retail stores. Thus, transportation cost was minimized.
Thus, it maintains its competitive edge for pricing through optimized operations.
GAP Place & Distribution Strategy:
The promotional and advertising strategy in the GAP marketing strategy is as follows:
Gap has got an extensive distribution network ensuring a strong presence worldwide. The products can either travel from company to wholesaler to retail or to the direct Gap stores, for consumers to buy from them. There are 3700+ store locations operated by Gap Inc. itself. Most stores are open round the year. Most of the stores are located in USA itself. The retailers use both online channels and offline channels in integration. Gap allows its customers to shop for multiple brands on the same site. It has increased its focus over internet sales channel. Even third party online channels like amazons, are open for Gap Inc. customers, to buy apparels or merchandises Customers also have the luxury to find the address of the nearest store to their location from the official website.One differentiating factor is that, Gap products even if bought online can be returned on the stores to increase convenience.Gap Inc is recognized all over the world. It is easily available brand in most metro cities of the nation’s worldwide. Although, self-operated Gap stores are less in number (only 20%of total), the online presence and third party stores have enabled Gap’s presence around the world.
GAP Promotion & Advertising Strategy:
Gap Inc. uses various sales promotions techniques, that can be summarized as below. Gap Inc. offers various hard and e-gift card which can be used for buying across all sites and stores. Even online gift cards, get delivered in around 3 days, with the option of personalized message. Presenting the product in the best way, through mannequins display or boards and posters with trendy tag linesis one of the main sales promotions techniques used by Gap Inc. Print and media advertising is very extensive form for promotion. It is the main tool to deliver message to the target customers. Magazines are specially preferred by Gap Inc. Gap has used viral marketing in controversial manner, many times like stationing support for interracial family through its ads, which caused lots of discussion around the topic, gaining popularity for the brand name. These stories attract a lot of attention. Some other tactics also include organizing competitions and gifting GAP accessories and merchandise as gifts. Gap has also increasingly associated itself with CSR activities, to be recognized as a responsible and concerned brand, as its target group, the young generation are becoming more and more opinionated. Gap’s Athleta brand introduced its Girl’s apparel line with commercial ads focused around women empowerment and focusing on ‘Power of She’ to introduce equality at the most impressionable age of 6 to 14. Hence this completes the marketing mix of Gap.
Gap Inc. is an American clothing and accessories retailer centered in California, USA. It was founded in 1969 by Donald G. Fisher and Doris F. Fisher. It operates in Global specialty apparel retail industry. The company’s five sub divisions are: The Gap, Banana Republic, Old Navy, Piperlime and Athleta. Gap has a worldwide reach with over 3000 stores of which more than 80% are in United States Gap, Inc. remains the largest specialty apparel retailer in the U.S., though it has recently been surpassed by the Spanish-based Inditex Group as the world's largest apparel retailer. Products belonging to Gap Inc. portfolio are designed and positioned as ‘cool’ and ‘trendy’. They are used as an expression of individuality as well as comfort over luxury.
The company deals in extensive variety of range in terms of size, colors and design’. Effect of economy plays an important role in this industry.
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