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What is Gap Inc.’s segmentation strategy?

This is a master level report which discussing about GAP Inc. marketing positioning of its brands i.e. Gap, Banana Republic and Old Navy. Analysis should be based on Procter & Gamble case study and elements.

Attached its synopsis and its question, and case study (P&G). Basic requirements and guidance by lecturer have been written in red below the question to facilitate the writing.

Harvard referencing is needed and no other referencing methods are allow. Effective application of diagram is crucial for this report, and fair number of referencing is vital.

Gap Inc

There are numerous companies that follow an extremely differentiated product strategy. Real Marketing gives a vignette of Procter & Gamble (Attached) and shows just how finely the market for laundry detergents can be segmented. Many consumer products companies follow this same strategy. But other types of companies follow this strategy as well. Consider the portfolio of brands owned by Gap Inc. the following is a description of each of their main brands as noted on the corporate Web site (gapinc.com/public/index.shtml).

Gap: Gap offers iconic American style to customers of all ages. Since 1969, customers have looked to Gap for updated, casual clothing and accessories that help them express their own personal sense of style. Today, Gap continues to be best destination for wardrobe essentials such as T-shirts, hoodies, great-fitting pants, and denim. What began as one brand has grown to include Gap, GapKids, babyGap, GapMaternity and GapBody. Gap has become a cultural icon by offering clothing and accessories rooted in cool, confident, and casual style to customers around the world.

Banana Republic: Banana Republic is an accessible luxury brand, offering high- quality apparel and accessories collections for men and women. Delivering elevated design and luxurious fabrications at approachable prices, Banana Republic has been credited with helping make fashion more accessible. The brand offers elevated essentials and sophisticated seasonal collections of accessories, shoes, personal care products, and intimate apparel. From work to casual occasions, Banana Republic offers covetable, uncomplicated style.

Old Navy (may not be available here): Old Navy offers great fashion at great prices, for everyone. For more than a decade, Old Navy has been famous for bringing customers on-trend apparel and accessories, as well as updated basics, at a surprising value – all in a fun, energizing shopping environment. From Old Navy’s item of the week – a special item at a special price each week – to its much-talked-about advertising campaigns. Old Navy is still the place to go for the latest fashion at amazing prices.

Questions:

1. What is Gap Inc.’s segmentation strategy? What is unique about their market segmentation strategy? (600 words)

– Explain GAP uses segmentation strategies i.e. geographic segmentation, demographic segmentation, psychographic segmentation, behavioural segmentation.
– Link 3 brands (Gap, Banana Republic and Old Navy) with Maslow hierarchy of needs and incorporated with target marketing strategies i.e. Undifferentiated, differentiated, concentrated and micromarketing.

2. How is Gap Inc. differentiating each brand? (600 words)

– What differentiation strategy that GAP uses to positioning in consumer mind.
– Positioning Mapping and value positioning.

3. Are there weaknesses in the Gap Inc. strategy? If so, what are they? (600 words)

– Threats, Opportunities, Weaknesses and Strengths
– TOWS analysis
– What is Gap weaknesses

4. Do you see any uncovered market segments? If so, what are they? How could Gap Inc. exploit this? (1200 words)

– Use Boston Consulting Group model, Ansoff model and Treacy and Wiersema model.
– Is kind of a summary for question 1,2, and 3.
– Drill down to one brand.
– For instance, Old Navy is not yet available in Malaysia market.

5. Elaborate how can you apply your understanding to the local market here in Malaysia or your home country? (1200 words)

– Use Michael Porter 5 Forces and Hofstede model (analyse cultural differences) for Malaysia markets or any other countries (choose 1 country).
– With the above analysis, we should be able to know the Malaysia market and competitors.

6. Create an IMC proposal with your recommended positioning and target customers for your local market. (1800 words)

– Use marketing communication diagram, promotion mix, understand local media, marketing management skills, Michael Porter competitive strategy, segmentation and differentiation issues.
– For instance, how should we position Old Navy in Malaysia.
– It involves creativity and a whole marketing promotion campaign.

PS: Throughout the report, diagram is very important and the relevant use of diagram is the ultimate determination of this report.

The marketing concept of Gap Inc is similar to P&G, cross referencing will be needed based on P&G case study.

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