Introduction

Repositioning

Advertising

&Promotion

Evaluation and

Improvement

Achieve Goals and Objectives

1. How to tell the customer Gap already expanded their product line to meet more customers’ needs.

2. How to promote and advertise Gap products to the wide age range of customer segmentation.

3. How to attract teenagers and young adults (Generation Y) to shop at Gap, and ultimately turn them into loyal customers.

4. How to bring those middle age adults (Baby Boomers, Generation X) back to Gap and become loyal customers again.

Background & Issues

1. Poor sales performance

2. Target segmentation/Positioning

- Failed to meet Generation Y’s needs and wants

- Blurred positioning: compete with Old Navy

Background & Issues

3. Poor sales performance Leadership

- The absence of a strong leadership

4.Marketing communication strategy

- How to reach their new target audience

- Promote Gap as a brand or core product line

- Celebrity endorsement?

Industry Overview & Competitors

Apparel Industry

• Four Formats:

Mall-based specialty store, Mass merchant or promotional department store, Traditional department stores, National chain stores

• Sale Performance:

2001 is increased by 1.3% from $182 billion in 2000.Sales keeps grow in coming year27% of apparel sales comes from the specialty stores

Industry Overview & Competitors

SWOT

Target AudienceStrategic Marketing Plan Recommendation

Customers aged between 15 to 55.

Generation Y

Brand SwitcherPrice SensitiveFashion Sensitive

Generation X and Baby Boomers

Brand Loyal Special connection with Gap Prefer basic and classic design, esp, semi-casual

New Positioning Strategic Marketing Plan Recommendation

To Gap target customers aged between 15 to 55, Gap is the brand of apparel retailers that offers the customers the classic, fashionable and affordable clothes that meet their different needs and exceptional value.

ObjectivesStrategic Marketing Plan Recommendation

Stop the negative growth in sales

Increase domestic sales by 15% during fiscal year 2003

1999 2000 2001 2002 20034.4

4.6

4.8

5

5.2

5.4

5.6

5.8

ForecastIdeal

ObjectivesStrategic Marketing Plan Recommendation

Maintain the market share 2.8%

Repositioning the overall Gap brand

Win back the Baby Boomers and the Generation Xers

Increase /strengthen the brand loyalty of Generation Yers

Advertising PlanStrategic Marketing Plan Recommendation

Advertising Objective:

Build Gap new brand image through advertising by differentiating Gap from other competitors and avoid cannibalization internally with Old Navy.

Recall the image of “American icon” among old generations (Baby Boomers and Generation X) in order to win back and reinforce their brand loyalty.

Emphasis “Classic is the new fashion” among young generations (Generation Y), and gradually help them build brand preference with Gap.

Advertising PlanStrategic Marketing Plan Recommendation

Message Strategies——High-involvement Transformational

Gap as a brand & Individual product lines.

By adopting affective strategies, we came out  three taglines ：

“Back to Classic” ——Brand image. (version 1).

“Classic is the new fashion” Gap Basic product line.(version 2).

“Welcome back, old sport” Gap Classic product line. (version 3).  

Advertising PlanStrategic Marketing Plan Recommendation

Media selection

TV

Outdoor

Print

Online 

Promotion PlanStrategic Marketing Plan Recommendation

Consumer Promotion

(1)Coupon

Free sample give-away couponDiscount CouponTime-limited price-off coupon“Birthday gift for you” VIP coupon

(2)Premium: Membership Program

VIP only free- giftsVIP CouponsVIP exclusive event invitationsSeasonal Gap magazine

Promotion PlanStrategic Marketing Plan Recommendation

Consumer Promotion

(3)Contests:

“Gap and I” Photo Contests

(4)Events Promotion

Gap Fashion Show In-store VIP Appreciation NightIn-store Party“Welcome Home Old Sport, Come to Join Us, New Dude!”

Promotion PlanStrategic Marketing Plan Recommendation

Retailing Promotion:

-Store layout:

Separate Gap Basic and ClassicEnd-cap marketingFeature ads

-Store atmosphere:

Store Music

Promotion PlanStrategic Marketing Plan Recommendation

• Public Relations:

Corporate Social Responsibility (CSR) Human Right(labor issues)

• Press Release

Media Allocation & Media PlanStrategic Marketing Plan Recommendation

TV-60%Magazine-18%Outdoor-12%Catalog-7%Online-3%

Sales of Gap follows a seasonal pattern, and reach its peak before holiday season

Seasonal Priming Pattern

Media Allocation

BudgetStrategic Marketing Plan Recommendation

2001 2002 2003

Sales(billion) $5.2 $4.9 $5.65

Adspend (million) $102.3 $88 $125*

Advertising/sales ratio

1.97% 1.80% 2.21%

* Based on the advertising elasticity coefficient for durables, an increase of 15% in sales for 2003 would need an adspend increase of 41.7% over the 2002’s, which would be $125.

EvaluationStrategic Marketing Plan Recommendation

Panel survey

- Measures: Brand recall & recognition, brand preference, brand action intention, brand promoted ad recognition and recall

- Time: before the campaign, 6 months , and 12 months

Focus group

Sales and market share

Thank you !