GAP
Group 2
C028 - Nagarjuna Uppukonduru
C037 – Vaibhav Shah
C038 – Gaurav Pant
C044 – Shaurya Shantam
C048 – Niharika Bist
C049 – Anindita Nayak
D001 – Nihal Gokhru
D002 – Neha Hunge
 Q.1 Why is GAP doing poorly in 2017?

• Not knowing who their customers were

• Keeping up with the fast-fashion market was difficult
• Trying to find the best fit for their brands while switching up their creative design
team
• Declining foot traffic:
- Increase in online offerings of Amazon
- Other popular low priced runway knockoffs of competitors such as H&M
and Zara
• Retail analysts claimed that there was a complete lack of clarity and that Gap was
unsure of their target market
• Additionally inadequate was Gap's supply network:
- Their lead times lagged behind those of rival stores like H&M and Zara
 Q.1 Why is GAP doing poorly in 2017?

• It took two months to launch new goods for GAP

• Its large amount of inventory and traditional American designs

• Customers looked elsewhere for unique product options, which led to the custom
of offering 40% off in Gap stores

• Ultimate decision to terminate Gap's creative director and replace it with its own
big data programme, “Product 3.0.”

• Between 2015 and 2017: Continued decline in sales despite Peck's efforts to
decentralize and use big data into the design process

• Peck persisted in pushing them online in order to track data and forecast trends,
even though 80% of the customers preferred visiting stores
Q.4 Ho w d oes Bi g Data app ro ach wo rk fo r al l th e t h ree o f GAP In cs p rimary bran d s?
Ol d Nav y / GAP / Ban an a Rep u bl ic? W h y an d wh y no t? Wh ich b rand s are b ett er or
wo rse ser v ed b y th is st rateg y? Wh y?

• Big data approach is applicable for all three of Gap Inc.’s brands, all of the brands
shared a common ambition of being more demand-driven and predictive

• Banana Republic has the least amount of design variation , but it is still noticeable,
making it highly valuable to be able to gauge how well product offerings are doing
in real time

• With online purchasing, Gap does not have to rely solely on the input from the
extremely small number of customers who choose to remark on and evaluate
things that they purchase

• By better aligning products with market trends, the information exchange benefits
all of the brands
Q.4 Ho w d oes Bi g Data app ro ach wo rk fo r al l th e t h ree o f GAP In cs p rimary bran d s?
Ol d Nav y / GAP / Ban an a Rep u bl ic? W h y an d wh y no t? Wh ich b rand s are b ett er or
wo rse ser v ed b y th is st rateg y? Wh y?

• Old Navy and Gap will benefit more from big data because they have more SKUs
than most retailers

• Controlling purchases, inventories, and inventory management is significantly

more difficult, and it may be necessary to drastically reduce failing SKUs

• Big data helps reduce the number of these unsuccessful items by examining a
product's performance before waiting to hear from customers

• Gap can imitate quick fashion companies by keeping production runs brief, even
for unsuccessful runs, and inspiring a sense of urgency in the consumer without
adding extra pressure to the consumer's decision-making process through an
inescapable sale
Q.5 Should Peck allow Gap Incs brands to be sold on Amazon? Why/why not?
What opportunities and challenges does this plan present? If Gap sells through
Amazon Should the company be a wholesaler/third party seller? And Why?

• Peck should allow Gap Incs brands to be sold on Amazon.

• Opportunities:
• Essential to leverage the Amazon e-commerce platform to increase the
distribution of Gap's clothing
• Boosts sales and allows for the mining of useful data.
• Gaining access to potential clients who don't favour the current distribution
network
• It will help in gaining a brand-new data stream that will be helpful in
determining the purchasing preferences of both current and potential
customers.
• Learn more about the current trends in the market for modern clothing, as
well as the changing client behaviours.
 Q.5 Should Peck allow Gap Incs brands to be sold on Amazon? Why/why not?
What opportunities and challenges does this plan present? If Gap sells through
Amazon Should the company be a wholesaler/third party seller? And Why?

• Challenges:
• Brand Dilution and Pricing challenges
• Rebuilding its own brand equity
• Balancing between both retail as well as marketplace
• Risk exists as Amazon will attempt to develop its own
private label brand using GAP consumer data
• If GAP sells through Amazon the company should be a
third party seller because:
• Able to get the relevant data and find out the customer
preferences easily
Q.6 What Is Your Assessment Of Product 3.0? How Would You
Improve It?

• Point of difference: Feeding the new product development using data right
from the beginning
• Earlier: Data analytics for rebuys, analysing real time sales data for decision
making
• Product 3.0: It envisaged – clear brand vision with common operating model
- It bought a new role for big data i.e. predicting the fashion for the
upcoming season
- This will govern every decision in design, merchandising, inventory and
production which will help in identifying trends, making them relevant to
customer and responding to demand
- Product 3.0 was a combination of real-time predictions of sales and also
spotting and incorporating the trends
 Q.6 What Is Your Assessment Of Product 3.0? How Would You
Improve It?

• Product 3.0: It helped in cutting the development cycle down to

8-10 weeks in some categories – to improve responsiveness and
nimbleness
• Improvement can be done in the following way:
- Relying completely on a particular methodology would limit
the desired results
- Amalgamation of creative director’s expertise and results of
real-time data analysis would reap good results
This will eventually lead to
- Increase in profits
- Increase in relevant customer insights
Q.7 Would you change other elements of marketing mix to
address Peck’s problems? Which ones and how?

• Place:
- The decision to sell on Amazon makes the products available on a huge
platform
- Peck should also focus on increasing the traction on GAP’s own digital
platform
- This will make inventory management convenient, and the customer data
can be matched with Amazon’s data to get a broader perspective on consumer
behaviour
• How:
- QR codes in GAP stores to download the app or direct to website
- Work on UI/UX to make the website an immersive experience
- The D2C channel should have latest trendy styles
Q.7 Would you change other elements of marketing mix to
address Peck’s problems? Which ones and how?

• Promotion:
- Use of Influencer Marketing. Fashion influencers are some of the most
sought-after creators in the influencer marketing industry
- Drive brand awareness and social engagements to help promote their
latest New Ease collection
- Drive traffic and sales through their e-commerce site
 Q8. FOR WHICH PURPOSE IS BIG DATA / PREDICTIVE
ANALYTICS MORE OR LESS USEFUL IN MARKETING?

More Useful-
• Getting holistic view of their audience: An important component of marketing strategy is customer engagement,
specifically how customers perceive and interact with the brand. Big data analytics gives you the business intelligence you
require to make positive changes, such as altering existing products or introducing a new line.
• Brand Awareness: Big data enables marketers to deliver customer-specific content at the optimal time and location to
increase brand recall and recognition both online and offline.
• Enabling & flourishing Omnichannel: Using consumer data for personalization, for enabling augmented reality that
would allow shoppers to test out different looks.

Less Useful-

• Predicting consumer behavior

• Predicting the next fashion trend
• Predicting the trend cycle
 Q8. AS THE WORLD MOVES ON TOWARDS ADOPTING OF BIG DATA,
WHAT IS THE ROLE OF ART VS SCIENCE IN MARKETING? UNDER WHICH
CONDITIONS WOULD ART RULE AND WHICH CONDITIONS SHOULD
SCIENCE RULE?

• As Peck proclaimed, in this era of marketing, science & art come together.
• Science drives the campaigns to gain an understanding of what is happening, and art inspires its creation to deliver
something beautiful resulting from the initial comprehension of the circumstance. The marketing campaign is likely to fail if
one or both of the procedures is skipped.
• Art would have the upper hand when it comes to designing something which could appeal to the consumer’s emotions.
• Science exudes dominance when a methodical, logical decision needs to be taken or a situation which demands analysis of a
scenario.