Gap - Analysis of the Dubai Mystery Shopping

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  • Topic: Banana Republic, Product Red, Gap
  • Pages : 5 (1491 words )
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  • Published : August 10, 2010
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Background of GAP
GAP is an American clothing and accessories retailer based in San Francisco, California. It is a part of the group with the same namesake ‘The GAP, Inc’. It was founded in 1969 as a single store by Donald G. Fisher and wife Doris. The store's merchandise consisted of Levi's and “Long Playing” records; later they came up with their own private label in 1974. The GAP, Inc today is one of the world's largest specialty retailers, with approximately 3,100 stores and fiscal 2009 revenues of $14.2 billion. Gap, Inc. has more than 135,000 employees and operates over 3,465 stores worldwide. Stores in Canada, France, Ireland, Japan, UK, and US (and Puerto Rico) are company-owned stores. Stores outside of these countries are owned and operated by franchisees. GAP Inc. operates five of the most recognized apparel brands in the world. These are:

* Gap
* Banana Republic
* Old Navy
* Piperlime
* Athleta

The culture at GAP helps us understand why the brand is such a huge success. It mainly emphasizes on keeping its customers first and it continuously works on quality of its clothes to meet customer’s expectations. It always looks for different ideas and new ways of working, inspiring creativity. GAP works with integrity and believes in giving back to the Society. It meets all its goals by taking responsibilities and setting priorities. Chronological evolution of GAP:

* 1969: Opens the first store on Ocean Avenue in San Francisco * 1970: Sales reach $2 million. Second store opens in San Jose, Calif. * 1974: First private label store opened. Launches "Fall into the Gap" campaign * 1976: Gap goes public offering 1.2 million shares of stock on the NYSE * 1986: The first GapKids store opens in San Mateo, Calif. * 1987: The first GAP store outside the United States opens in London, England * 1990: The babyGap line is born, debuting in the GapKids store in San Francisco, Calif * 1992: Gap becomes the second-largest selling apparel brand in the world. * 1997: Gap opens its Online Store at gap.com

* 2000: Gap launches its Gap Maternity on Gap.com
* 2006: Gap stores open new franchisee stores in Malaysia, Singapore, UAE * 2009: Gap, Inc co-founder and board member Donald Fischer dies at the age of 81 -------------------------------------------------

Marketing Strategy of GAP
GAP had a three pronged strategy in establishing the brand in any market they targeted. * Segmentation: They cater to the 3 segments- Men, Women, Kids * Target Market Selection: They mainly target the youth in all Men and Women segment * Positioning: They have positioned themselves as the middle income segment (affordable) brand in the casual wears Strategy employed to enter UAE:

Gap Inc. announced a franchise agreement with leading retailer, Al Tayer Group, to introduce into five key markets in the Middle East. Al Tayer Group plans to open about 25 Gap stores by 2010.  The first Gap stores opened in the later part of 2006.

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GAP – Competitive intelligence
To identify the competitive intelligence of GAP, we identified the following main clothing retail brands. We went to their stores and made the observations as detailed below: 1. Aeropostale: is an American clothing retail chain that mostly sells casual clothing with over 900 stores in the United States, Canada, Puerto Rico and the United Arab Emirates. Their stores are usually located in shopping malls and large marketing areas. They have recently launched a line for kids also. We made the following observations about their store: * They do not have a kid’s section

* The space utilization was not done properly. The store looked very congested * Aesthetic sense was not good
* There were lot of varieties in design
* The clothes were mostly affordable
* Lot of bright colored clothes were...
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