Don Fisher & Doris Fisher

August 21, 1969San Francisco, California

History

• In 1969, Don Fisher and his wife Doris opened the first GAP store in San Francisco. The company took name from “generation gap” and targeted the late-teen customers.

• By the end of 1970, there were six GAP stores already. Sales reach $2 million.

• In 1974 GAP introduced private label lines to pull it out of price-based competition with larger retailers. Private-label clothing lines gave GAP control over the entire supply chain.

• In 1976 GAP went public offering 1.2 million shares of stock on the New York and Pacific Stock Exchanges.

Gap Inc. BrandsThe Gap: 1969Gap Kids & babyGap:1986Banana Republic: 1983Old Navy: 1994Piperlime: 2006Athleta: 2008Intermix: 2012

Today• Single store grew into major company which oversees

Old Navy, Banana Republic, Forth & Towne, Piperlime, Gap brands and sub-brands

• Over 3,100 Gap Inc. stores in five countries

• Headquarters remain in San Francisco

• 2006 Business Ethics Magazine Top 100 Company

• 2005 & 2006 Top 30 Companies for Executive Women • 2007 CRO Magazine 100 Best Corporate Citizens

Mission Statement

• Mission: GAP is a brand-builder. “create emotional connections with customers around the world through inspiring product design, unique store experiences and compelling marketing.” It’s goal is to simply make it easy for customers to express their personal style throughout their life.

• Vision: GAP hoped that effective Web initiative could let

company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs. Company also believed that going online would attract new customers and steal market share from competitors.

Company-operated stores

• Gap operate stores-

1) USA

2) Canada

3) Europe

4) Asia

5) Australia

Gap WorldwideGap Worldwide

Forms of Retailing1) FRANCHISE:

The Gap, Inc. also has franchise agreements with unaffiliated franchisees to operate Gap or Banana Republic stores in Philippines, Singapore, Malaysia, United Arab Emirates, Korea, Kuwait, Qatar, Bahrain, Oman, Saudi Arabia, Cambodia, Indonesia and Australia.

2) OUTLET:

Gap Inc. launched its first international Outlet stores in the United Kingdom in 1996 and has continued to grow its international store base. The company plans to continue growing its global outlet store fleet during 2012.

3) ONLINE:

In 2009, Gap Inc. shipped to one country, the United States. Currently, Gap Inc. products are available to more than 90 countries through its dedicated websites and third-party shipping providers.

GAP’s retail shop

GAP’s retail shop

Global Apparel Retail Global Apparel Retail

MarketsMarkets

Target Market ProfileTarget Market Profile

• Individuals, families, young couples

• Middle to upper class income

• Urban areas

• Business or casual clothes

• Work-oriented and conscious of their style

To Gap target customers aged between 15 to 55, Gap is the brand of apparel retailers that offers the customers the classic, fashionable and affordable clothes that meet their different needs and exceptional value.

Marketing Mix - Product 1) Women

• Jeans, pants, capris and shorts, skirts and dresses, outerwear, sweaters, shirts and T-shirts, active wear, swimwear, sleepwear undergarment

• Accessories include bags, shoes, belts, socks, hats, cold weather gear

• Sizes XS – XXL, 0 - 20 2) Men

• Jeans, pants, shorts, T-shirts, polo's, sweats, shirts, sweaters, outwear, underwear

• XS – XXL, 28 – 48W, 28 – 38L• Accessories include shoes, bags, belts,

cold weather gear

Cont,

• Private label• Exclusive distribution• Five stage production process

– 1. design and merchandising– 2. planning and sourcing– 3. production and marketing– 4. distribution– 5. sales and analysis

Cont.

Price

• Moderate wholesale price zone• Odd, multiple-unit, and high/low pricing• Women’s

– $16 tank top, $65 jeans, $200 handbag

• Men’s– $20 T-shirt, $35 polo, $85 jeans

Place

• 1,500+ locations in 5 countries– US, UK, Canada, France, Japan

• Shopping malls, lifestyle centers• Limited marketing channel

Promotion

• Print and Television advertising• Billboards• Gap credit card

GAP-Suppliers & Productsin Asia

As seen Asian market is major outsourcing unit of GAP worldwide, the following are the major supplier and merchandize that GAP deals with in Asia.

• Best Industries 1) Poppy's international 2) Shahi Exports 3) SNQS International 4) Primax 5) Gokaldas Images & Exports 6) Eastman Exports 7) KPR International.

National National CompetitorsCompetitors

Foreign Foreign CompetitorsCompetitors

Competition

• Intra type– Abercrombie & Fitch, American Eagle,

J.Crew• Inter type

– Department stores• Macy’s, Nordstrom

– Online retailers• ShopBop

Goals and strategies

1) In e-commerce GAP used the same strategy that had worked for it offline – establishing new markets, focusing on stylish, value driven product offerings, and controlling value drivers in-house. 2) GAP also sought to control an increasing share of the consumer’s apparel dollars.

3) Company integrated technology into Web sites so they could enhance the customer experience.

4) GAP also was trying to provide the best customer service that they can and guide their success with values such as integrity, respect, open-mindedness, quality and balance. 5) GAP also believed that it can manage the conflict between its online and offline channels.

• GAP decided to use multichannel strategy.

• Company saw its bricks-and-mortar stores not as an impediment, as many Internet pure-plays liked to assert, but as a key asset that it could leverage to give consumers a complete shopping experience:

Consumers benefited in several ways:

• Customers could return products to stores even if they bought them online.

• Banana Republic offered free alterations.• Customers could do product research first on the Web and

then buy at brick-and-mortar store.• Customers were more comfortable buying online because of

GAP’s well-established brand and reputation.

E-Commerce opportunities

1) In e-commerce GAP used the same strategy that had worked for it offline – establishing new markets, focusing on stylish, value driven product offerings, and controlling value drivers in-house.

2) Company integrated technology into Web sites so they could enhance the customer experience.

3) GAP also was trying to provide the best customer service that they can and guide their success with values such as integrity, respect, open-mindedness, quality and balance.

4) GAP also believed that it can manage the conflict between its online and offline channel.

Bibliography

• Gap Inc. (n.d.a). For landlords and developers. Retrieved February 27, 2007 from http://www.gapinc.com/public/Investors/inv_re_landlords.shtml.

• Gap Inc. (n.d.b). How are clothes are made. Retrieved February 6, 2007 from http://www.gapinc.com/public/About/abt_howourclothesaremade.shtml.

• Gap Inc. (n.d.c). Our brands. Retrieved February 6, 2007 from http://www.gapinc.com/public/OurBrands/brands.shtml.

• Gap Inc. (n.d.d). Store count. Retrieved February 27, 2007 from http://www.gapinc.com/public/Investors/inv_re_storecount.shtml.