Gap Inc Company Analysis

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Table of Contents
Executive Summary3
Situation Analysis
Company5
Customers19
Context23
Competitors26
Collaborators44
Growth Strategy
Detailed Description of Growth Strategy48
Goals & Objectives48
Segmentation48
Targeting49
Positioning49
Internal and Sustainable Growth Rates49
Strategy Execution
Product52
Place56
Promotion62
Price63
Implementation & Control
Timing and Implementation Actvities69
Sales Estimates69
Forecasts/Estimates70
Sensitivity Analysis71
Conclusion
Conclusion73
Appendix
Appendix A: Organizational Structure75
Appendix B: SWOT Analysis77
Appendix C: Income Statement80
Appendix D: Balance Sheet81
Appendix E: Statement of Cash Flows83
Appendix F: Ratio Comparison85
Appendix G: Proforma Statements86
Appendix H: Store Count by Country87
Works Cited88
Executive Summary

Gap, Inc. has a team that has concluded upon creating a new product line to be implemented throughout its stores. This product line will bring larger profits and more attention to Gap, Inc., revitalizing the company’s image. The exciting new product is a line of bedding called “Bed in a Bag”. This is a revolutionary step for Gap, Inc. and will be attractive to all ages while upholding the quality and style standards associated with any other Gap, Inc. product. “Bed in a Bag” will come in five distinct designs, all appealing to a slightly different target markets based on age, culture, and gender. The five designs include Plaid Pad, Californication, Susie Homemaker, Sassy Sophistication, and Classic Contemporary. All “Bed in a Bag” products will be manufactured elsewhere and shipped to our warehouses to then be dispersed to our retail outlets. After reviewing marketing research about income and socio-cultural demographics as well as competitors pricing we have set the price for all “Bed in a Bag’s” at fifty dollars. The team found this price to be just right in terms of the company making a profit, and the customer receiving the quality, quantity, and style desired. As with all projects there are inherent risks to creating a new product, however rest assured the team will stand by the proposed project and the expected outcomes. The team can do this because they have successfully completed a full analysis of the product, the team has conducted sensitivity analysis’s, showing the best case, worst case, and normal operating cases, all showing positive numbers as a end result. They have forecasted sales revenue out to five years, as well as costs, liabilities, and inventory. Furthermore to insure the absolute smoothest implementation across the Gap, Inc. family; the product will be introduced in a limited release, starting in the Midwest. The Midwest consist of about one hundred and fifty stores which have diverse market demographics, giving the team very important feed back in case a last minute change needs to be made. The entire team has worked very hard over the past few months to ensure all information, statistics, and reports are prepared to the best of our abilities. We are confident that you will be just as excited about the new product as we are. Company Background

Don and Doris Fisher founded Gap, Inc. in 1969. “I created Gap, Inc. with a simple idea: to make it easier to find a pair of jeans. We remain committed to that basic principle” Don said. Gap, Inc. is now a specialty retailer that operates approximately 3,100 stores worldwide by selling casual apparel, shoes, and other accessories for men, women, and...
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