Group 2

GAP- History and background

 Gap is a unit of Gap Inc.
 Gap Inc. started in 1969 as Levis store called “The Gap”
 Name changed to The Gap Stores, Inc. in June 1973.
 In 1983, Co. acquired Banana Republic, Inc
 In 1994, Co. formed Old Navy Inc.
 Piperlime started in 2006.

Marketing Management 610 /Team#1

 1983

1994

1969

2006
 Products in market segments

 apparels for men, women, children and

babies

Gap 1969 London

Gap spring 2010

 Consumer’s benefit

 return products to stores even if bought online.

 research first on the Web and then buy at brick-and-

mortar store.
 GAP’s well-established brand and reputation.

Marketing Management 610 /Team#1

 Customer’s Needs and Wants
 Primary:
Needs: keep warm
Wants: To show customers style
 Secondary:
Needs: for activity function
Wants: To show customer social standards
 Market Segmentation
 Demographic:
income: middle class and up
age: mainly age 16-25
education: high school to
college students
race: Hispanics, Asians, and
African-Americans
 Psychographic
outdoor activities
confident individuals who feel
they are buying the best
product available
style: sophistication in
choosing cloth
 Target customers

 Primary Customers
high school and college students, entry-level college graduates, and
young working,
 Secondary Customers
married couples, babies, kids
 Evaluation

 Losing market share

 Remain profit
 Target market accurately
 Recommendation
 Targeting older audience; since the younger
market segments are not patronizing
 Too casual; provide more clothing lines
 Enforce brand loyalty; membership
 Conclusion

 GAP’s strategy market segments

 Providing different stores different segments of consumers.
 Within those segments GAP have to break it down to adults,
children and babies to be specialized.

Marketing Management 610 /Team#1

 references

 Mergent: The Gap, Inc. Annual Report The Gap, Inc.

www.gapinc.com
 J. Paul Peter; James H. Donnelly, Jr., “Marketing
Management” knowledge and skills, 8th ed. Mc Graw
Hill international ed 2007, pp 68-72.
 www. sric-bi.com

Marketing Management 610 /Team#1

 Thank you!

• Questions?
• Comments?