GAP1969-2015

Presented by:- Anushka Neyol, Aditi Gupta, Amrita Thampi

https://www.youtube.com/watch?v=zTuzOZtnVzo

History of GAP in 4 Minutes

As per 2015, GAP.Inc is spread over 90 countries, there are about 3,300 company operated stores, and over 400 franchise stores, selling clothing, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands.

2015

Associated Controversies

In 2003, sweatshop workers in Saipan were not paid for overtime work, were subjected to forced abortion, and were required to work in unsafe working conditions. A settlement of 20 million dollars was reached.

In May 2006, adult and child employees of Western, a supplier in Jordan, were found to have worked up to 109 hours per week and to have gone six months without being paid. Some employees claimed they had been raped by managers.

On October 28, 2007, BBC footage showed child labor in Indian Gap factories. The company denied knowledge of the happenings; it subsequently removed and destroyed the single piece of clothing in question, a smock blouse, from a British store. Gap promised to investigate breaches in its ethical policy.

LABOR EXPLOITATION

Bangladeshi and international labor groups in 2011 put forth a detailed safety proposal which entailed the establishment of independent inspections of garment factories. The plan called for inspectors to have the power to close unsafe factories. The proposal entailed a legally binding contract between suppliers, customers and unions. At a meeting in 2011 in Dhaka, major European and North American retailers, including Gap, rejected the proposal.

Video Link :- https://www.youtube.com/watch?v=VdLf4fihP78

The video is a link from John Oliver’s Show Last Week Tonight, where he has mentioned various retail brands in fashion industry who have been involved in various controversies over time again and again.

On February 19, 2014, Glenn Murphy, CEO of Gap Inc., announced Gap will raise the minimum wages for its 65,000 U.S. store employees

  

Change in Logo in 2010

. COMMENTS:- "This picture is terrifying”.

"@Gap Someone get that girl some food!" . "Seriously, @ Gap?“ "In what world do people look like this? Perhaps you could select models who represent regular gals & not a skeleton ghost.“

GAP’S RESPONSE:- "Upon reflection, we understand the sensitivity surround this photograph. Customer feedback is important to us and we think this is a valuable conversation to learn from."

Criticism over Skinny Model in 2010

The Gap once again reported a drop in second quarter 2015 sales – a sign that their customer base continues to erode. Gap Global reported negative comparable store sales of 6% versus negative 5% last year.

Banana Republic Global reported negative comparable sales of 4% versus flat last year.

Only Old Navy Global reported positive sales figures of 3% versus positive 4% last year.

Total sales dropped from $4 Billion to $3.9 Billion. Earnings in the quarter were $0.52 vs. $0.75 the previous year.

The brand recently disclosed it would be shuttering 175 stores - 140 this fiscal year, alone.

Is GAP a dead Brand?

STRENGTHS WEAKNESSES• Baby Boomers and generation X were

Brand Loyal• GAP has wide categories which could cover

all ages• Historical Brand which creates emotional

attraction with consumers• GAP is treated as an American Icon• Wide location of physical store• Effective Inventory

• GAP didn’t have a clear position• Lacked a strong leadership• Poor sale performance in past 2 years• Low attraction to Generation Y• Quick expansion led to an increase in

operation cost• Gap Inc. is a brand-centric company:

promoting and operating its brands independent of one another.

• Customers experience one brand at a time

OPPORTUNITIES THREATS

• Generation Y were not Brand loyal• Brand Extension “GAP Kids” “GAP Baby”• International Market• 92% sale come from physical stores

• U.S. Economic decrease partially due to 9/11

• Increasing competition in the apparel industry

• Criticisms for Outsourcing• Avoid internal Cannibalisation

Results were also impacted by the West Coast Port strike and negative currency fluctuation. 

However, there is a bright spot – the devaluation of the Yuan will make Chinese products somewhat cheaper in U.S. dollar terms and could provide a boost to earnings by the end of the year.

No, It’s not!

MARKETING STRATEGIES

There was the failed "dress normal" campaign in 2014, which resulted in several months of declining sales.

Video Link:- https://www.youtube.com/watch?v=YKe8xS2lRwU

Celebrities such as Elisabeth Moss and Zosia Mamet appeared in ads, and other ads boasted odd platitudes like "dress like no one is watching" and "let your actions speak louder than your clothes."

Recent Ad Campaigns

.The Gap misfired again with a bizarre ad campaign in February 2015 on Tinder, which violated it’s terms and use. Hence, taken back.

However, the Gap released an Instagram "micro-series" starring Jenny Slate and Paul Dano called "Spring Is Weird," as possible attempt to win back consumers. 

Video Link:- https://www.youtube.com/watch?v=EE12XmmSSj0

. The “Back to Basics” Campaign The campaign is relatively simple: it features models up against a plain backdrop. Adweek reported the brand had hired creative agency Wieden + Kennedy to execute the campaign. Gap attempted to jump onto the "normcore" trend, and claimed that the campaign "[celebrated] the individuality and authenticity of personal style by questioning what it means to dress normal" in a press release.

Gap Kids Ad Campaign with Ellen DeGeneres

Recently launched in 25 markets, the introduction of the new Ellen DeGeneres brand, ED, now is selling in GapKids stores is an exciting development.  The marketing will feature Ellen DeGeneres and creates an environment for social engagement. 

Video Llink :- https://www.youtube.com/watch?v=zIT1XyD_pPQ

Huge Discounts Online

Supporting Feminism #HeForShe

GAP’s Social media policyThese guidelines are important—because if you don’t follow them a few things could happen: your posts can get deleted, we could lose customers and investors, we could get in trouble, or, worst of all, you could even lose your job … So do the right thing, stick to the guidelines.”

Keep in mind… There’s really no such thing as “delete” on the Internet, so please—think before you post. Some subjects can invite a flame war. Be careful discussing things where emotions run high (e.g. politics and religion) and show respect for others’ opinions. It’s a small world and we’re a global company. Remember that what you say can be seen by customers and employees all over the world and something you say in one country might be inaccurate or offensive in another. Respect other people’s stuff. Just because something’s online doesn’t mean it’s OK to copy it. 

Your job comes first. Unless you are an authorized Social Media Manager, don’t let social media affect your job performance. 

How to be the best … Play nice. Be respectful and considerate, no trolling, troll baiting, or flaming anybody, even our competitors. Be yourself. Be the first to out that you are a Gap Inc. employee—and make it clear that you are not a company spokesperson. If you #!%#@# up? Correct it immediately and be clear about what you’ve done to fix it. Contact the social media team if it’s a real doozy. Add value. Make sure your posts really add to the conversation. If it promotes Gap Inc.’s goals and values, supports our customers, improves or helps us sell products, or helps us do our jobs better, then you are adding value. Don’t even think about it…Talking about financial information, sales trends, strategies, forecasts, legal issues, future promotional activities. Giving out personal information about customers or employees. Posting confidential or non-public information. Responding to an offensive or negative post by a customer. There’s no winner in that game.

Marketing Media TV (Ad Campaigns, in TV shows, commercials) OUTDOOR (Posters) PRINT (Magazines like Cosmopolitan, GQ) ONLINE (Twitter, Youtube, Facebook, Pinterest,

Instagram)

Pinterest

Twitter

Facebook

Instagram

Youtube

Offers and Services Coupons (Discounts, Birthday gift for you Coupons) Membership Programme (free gifts, event invitations,

seasonal magazine) Contests (gap and I photo contest) Event Promotion (Fashion show, in store party) Store layout (separate basics and classics, feature ads) Store atmosphere (music)

Restructuring the MARKETING, ONLINE AND PRODUCT LEADERSHIP  plans to create a consistent, customer-centric experience across all

channels globally a newly combined e-commerce and marketing organization to intensify our customer focus and break-through with a truly dynamic

and integrated approach to building relationships with our customers It’s a customer-first approach that reflects how people shop today in evaluating the right leadership structure for the brand, it would be

eliminating the Creative Director role Gap has a strong senior design team in place to ensure a seamless

transition and said it would evaluate the long-term leadership approach for the global design team.

Closing the small brand – Piperlime in 2015 Size matters at Gap, which pulls in more than $16

billion in annual revenue, and the company explained its decision to kill Piperlime last week as a way to focus on its bigger moneymakers: Old Navy, Banana Republic, Athleta, Intermix, and its namesake brand. With less than $100 million in annual revenue, Piperlime represented less than 1 percent of Gap’s total revenue—and a potential distraction for incoming Gap Chief Executive Officer Art Peck.

Reform Suggestions Fully integrate brands and promote ease of shopping online with the Gap Personal Shopper

tool. Meet customer needs by cross-selling all brands to registered customers via information

provided on their profiles and turn customers into Gap for Life customers;

Drive foot traffic into the store network by extending online experience.

the Gap should feature pop-up departments that showcase special merchandise for a short period of time.

The discovery of special fashions can foster impulse buying while making the stores more exciting and creating a point of differentiation versus the competition.

There could be clothing designed by football stars, or special fashions for an occasion, or jeans in unusual colors – publicizing such short-term pop-up shops might revitalize interest in the stores.