Gap Marketing Strategy Plan Essay

3234 Words13 Pages
Strategy Brief (Part I) April 3, 2007 GOALS AND OBJECTIVES The retail landscape has changed dramatically since the Gap's emergence as a powerhouse several decades ago. As the company has grown to become one of the giants of its industry, new challenges, including a more complex market and a more competitive landscape, have arisen that threaten to unseat the Gap from its casual-wear throne. Compounding the problem, the company has responded to this new competition by trying to change its brand identity, leaving its consumers confused and frustrated. Due to these internal and external pressures, the Gap is facing a decline in sales and revenue. For the Gap to thrive, it must respond to the new retail landscape and its new…show more content…
Another issue the Gap must face is its ubiquity. The number of Gap retail outlets is enormous for a store of its size and selection. Women's Wear Daily, in its analysis of the Gap's woes, recommended scaling the company down. Since one of the goals of this strategic plan is to grow the company, this is not the recommended approach. Still, the sheer size of the Gap presents a challenge for moving forward. The design of the products at the Gap must keep in mind this issue; one of the parameters for the product is a broad design appeal. State of the Customer Market The retail market is one of the least fluid, for branding purposes. Once a company establishes an identity it becomes difficult to alter that perception in the minds of consumers. For a brand as mature with an identity as fixed as the Gap, this would be especially difficult. Due to these constraints, the Gap has limited options available to it from a market creation perspective. Strategic Parameters: Existing Product New Product Existing Market Market Penetration Product Development New Market Market Diversification Market Development The Gap is dealing with a mature customer who has a fixed emotion towards all the brands out there and especially towards the Gap, so the company can't attempt to create a new product or market. The best option, then, is to appeal to customers that exist (existing market) with the existing merchandise (since the
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