Gap Situation Analysis

GAP SITUATION ANALYSIS
- THE BRAND CHARACTERIRSTICS AND BRAND ESSENCE (STRENGTH)

- Existing brand equity
Consumers have memory base about the brand (business of fashion, 2019)
brand like Gap that has always been authentic, there’s a huge opportunity to be that vehicle
to connect to consumers in a very real way. (business of fashion, 2019)
Gap competitive advantage has been traditionally associated with innovative casual design of
clothing items and accessories and the variety of choice that enables the opportunities for
self-reflection for a wider range of customer segment.
global presence of the brand plays an integral role in terms of market penetration of new
products along with providing substantial benefits in the forms of economies of scale.
The company’s product portfolio comprises a set of timeless iconic products such as 1969
Denim Jeans, khakis and worker shirt
Gap defined American basics in the 80s and 90s and offers inventive and optimistic American
casual style clothing and accessories at moderate price points (GAP Inc., 2020). The
company’s existing product portfolio comprises a set of timeless iconic products such as 1969
Denim Jeans, khakis and worker shirt (). The global presence of brand Gap also plays an
integral role in terms of market penetration of new products along with providing substantial
benefits in the forms of economies of scale.
Equality and diversity are the core values of the brand since the beginning (Bhasin, 2019;
Thomas, 2019). Gap has always been trying their best to welcome people from all
backgrounds. In order to meet the needs of their diversity consumer base, Gap launched a
range of sub-brands such as GapKids, GapBody, GapMaternity, GapFit and babyGap that
effectively appeal to the needs and preferences of relevant customer segments, furthermore,
The company offers an extensive variety of range in terms of size, colours and design.
- GAP BRAND RECENT NEWS – BOTH INTERNAL AND EXTERNAL (THE WEAKNESS
AND THRESTS) – LEADS TO THE CHALLENGES
Management
The company has seen a number of designers leave and CEO Glenn Murphy announced that he would be stepping
down in February 2015. The company has also closed a number of stores in a bid to focus on stores that generate
traffic.
Sales on brand image
The company operates different sales formats and each brand tailors to separate target groups which will increase
Gap's consumer base and in turn increase revenues
Gap has also been forced to offer heavy discounting in order help attract shoppers who've been cautious about
spending in a still, sluggish economy
The product failure
The company has been criticized for not keeping up with the latest consumer trends and demands and has also lost
many of its consumers to its rivals namely Inditex and H&M
Complete dependence on outside vendors for merchandise procurement makes Gap vulnerable to issues such as
lack of control over quality which, in turn, could affect its brand image as well as demand for its products.
Gap has been criticized for its designs and styles; poor fit, boring fashions and drab colors have hurt the company's
flagship brand for most of the past decade
it lags behind its peers on key indicators of fashion and reputation.
assortments are dull, and every new season Gap churns out more of the same bland product rather than innovating
and trying new things (Howland, 2019)
Lack of image building and experience offering
Gap Inc. is not famous for sponsoring and hosting various events and experiences that promote specific products
and promote brand image in general.
Gap Inc. annual lobbying budget is not fixed and it fluctuates significantly year by year to reflect specific political
issues the business wants to address each year.
It had been obvious for years that Gap had too many stores for the digital era and those located in dumpy malls were
hurting the brand.
Threats
Further increase in the cost of labor can be mentioned as another noteworthy threat for Gap Inc.
- THE ENVIROENT (OPPORTUNITY)

The popularity of celebrity endorsement
increase its brand appeal via an effective utilization of celebrity endorsement. Specifically, the
company needs to employ celebrities and personalities who are highly popular with the target
customer segment as brand ambassadors. Moreover, it is important to communicate the
association of brand ambassadors with GAP to the target customer segment via using
multiple marketing communication channels in an integrated manner.
Formation of strategic alliances represents an attractive opportunity to be considered by Gap
Inc. senior level management. Specifically, the company needs to enter into strategic
cooperation with businesses operating in other industries but targeting the same customer
segment to decrease operational costs in general and supply chain management, distribution
and marketing costs in particular.
The issues of aging population in Europe and other global demographic changes are
important social factors that are going to affect Gap Inc.’s business strategy and customer
targeting practices
Invest more in events and experiences to demonstrate brand value (innovative and
interactive)
Gap Inc. events and experiences are aimed at increasing the level of brand awareness
among the public in general and the target customer segment in particular. Moreover, Gap
Inc. attempts to communicate the brand value offer to the target customer segment in indirect
manner.
evolution from it being a US retail brand to a global cultural brand (business of fashion, 2019)
Increasing popularity of same-sex marriages in developed countries can be mentioned as
another important social factor that may affect fashion and accessories retail business.
Gap Inc. is also greatly impacted by additional range of social factors such as changes in
family values, changes in the level of education of customers, changes in consumer attitudes
and opinions towards fashion and clothing, media perception of the brand and health and
welfare of the target customer segment.
the new trends
the healthy trend – oversize also available, but maybe to see the trend that make you slime
again?
The vintage trend, while gap was actually playing an important role in that time and it signifies
the symbol? But there was a highlight from 2019. She spoke proudly of the Gap’s role in the
new season of “Stranger Things.” Several scenes take place at the store, including a montage
of the show’s eager teenagers shopping there. The season, released this summer, is set in
the year 1985. (Bromwich, 2019)

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- THE BRAND CHARACTERIRSTICS AND BRAND ESSENCE (STRENGTH)

- THE ENVIROENT (OPPORTUNITY)

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