Gap

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PROJECT ON:

Gap(Gap generations)

PRESENTED TO:

Our respected teacher Mr. Rana Adeel Abaad.

PRESENTED BY:

Group No.10

MEMBERS:

Hafiz Asif Bashir 27 M. Shakeel Faisal 33 Muhammad Saleem 55 Ahmad Masood Shafiq 05

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DEDICATION

We would l ike to dedicate a l l o f our ef for ts to complete th is repor t

to our beloved Parents respected teacher Rana Adeel Abaad…..

Acknowledgement We would l ike to say thanks to our teacher

Rana Adeel Abaad for h is guidance and h is prec ious thoughts

which helps us to complete th is work in a proper and ef f ic ient

manner. . .

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History

Founded in 1969 by Donald F isher , the name or ig inated f rom the

phrase " the generat ion gap"

1969-1980

In 1969 Donald F isher opened the f i rs t ever Gap store in a

theatre on Ocean Avenue near San Francisco State Univers i ty ,

the store 's merchandise consis ted of b lue jeans and records and

tapes…. however , the audio products were sold for a mere three

months before being removed f rom the store.

By 1969 Gap's sa les had reached $2 mi l l ion and a second store

was opened in San Jose, Cal i forn ia. A long wi th th is second store

Gap establ ished i ts f i rs t corporate headquarters in Bur l ingame,

Cal i forn ia, employ ing only four employees. Gap cont inued to

expand rapid ly and by 1972-73 Gap had grown to over 25 stores

and had expanded to areas outs ide of Cal i forn ia and was

enter ing the East Coast market wi th i ts s tore in In 1974 Gap

began to se l l pr ivate label merchandise in i ts s tores.

1975 saw the creat ion of the chain of s tores which specia l ized in

se l l ing d iscounted appare l , as wel l as the acquis i t ion of "You &

You" which had former ly been a New England-based casual

appare l brand.

1976 was a landmark year for Gap wi th the company going publ ic

in both the New York and Paci f ic s tock exchanges wi th an in i t ia l

publ ic of fer ing of 1 .2 mi l l ion shares. Wi th the arr iva l o f 1977 Gap

in t roduces the labels "Fashion Pioneers" , "Eaton Hi l l " , and

"Foxta i ls" which are so ld in i ts s tores. The company a lso

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launches two sub-brands; "Logo," based in Cal i forn ia and

Missour i , as wel l as "Brands" based in New York and New Jersey.

In th is year a lso, Gap moves i ts headquarters f rom Bur l ingame,

to i ts wel l known locat ion at 900 Cherry Avenue in San Bruno.

1980 saw the incorporat ion of the "Brands" and "Pants  %ff "

chains in to Gap's new

Mission statementStatementThe miss ion of the Br idging The Gap Communi ty Transformat ion

Pro ject is to develop Big Stone Gap as the "Communi ty of

Choice" to res ide in , wi th in the region of far Southwest Vi rg in ia.

Guid ing Thoughts of the Execut ive Commit tee to Develop Miss ion

and Pr ior i t ies:

*   Looked at desi res of the communi ty , as expressed and

recorded, at communi ty meet ings held in the summer of 2006

*   L is tened to advice and guid ing pr inc ip les of Dr . Vaughn

Gr isham.

*  Looked wi th a long- term v is ion to the future, but wi th a due

respect of real i t ies of the communi ty , t ime, and money.

*  Operat ing on fa i th . . . .

because. . .

"Br idg ing The Gap" is the r ight th ing to do for the communi ty .  

Marketing strategy

The banana republ ic s tores t ry to convey a more sophist icated

image for an upscale customer, whereas Gap stores appeal to a

broader midrange of customers. The OLD NEAY chain is

designed to appeal to younger generat ion of customers by

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emphasiz ing " fun, fashion, and value" through a store exper ience

that del ivers "energy and exci tement . " A l though Gap, a long wi th

other reta i l -s tore chains, has been cr i t ic ized for b landness and

uni formi ty in i ts se l l ing envi ronments, the f i rm mainta ins that i t

ta i lors i ts s tores " to appeal to unique markets" by developing

mul t ip le formats and designs. .

In some major laguage basebal l parks, a Gap ad appears on

out f ie ld wal l panels between le f t / r ight -center f ie lds and

center f ie ld which is commonly termed " the gap."

PlanGap planning is to best one in c lo th ing and shopping mal ls . .

A l l over the wor ld par t icu lary In EU..

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Programs

Every customer has d i f ferent expectat ion d i f ferent choices and

d i f ferent fashion l ike gap programs is to fu l l f i l l the needs of the

customers. .accord ing to choice and fashion that wi l l meet the

requi rement of that and sat is fy ing the customers in th is way gap

wi l l be in the posi t ion to occupying the most par t o f the market

The Macro Environment:

Looking at the macro envi ronment , there are a number of

STEEPLE factors that have shaped both products ’ market

backgrounds.  

Demographics  -  Divorce rates in Br i ta in have r isen dramat ica l ly , increasing the

number of s ing le-parent fami l ies.   This has meant fewer hol idays

for lower socio-economic groups wi th less d isposable income,

and more for the h igher due to bet ter f inancia l rewards for

d ivorcees.

-  Wi th bet ter heal thcare, medic ine and an improved standard of

l iv ing, people are l iv ing longer and the gray ing market is

becoming more act ive.   A lso people are star t ing fami l ies la ter ,

changing both the family and luxury hol iday markets-  The

Internet has evolved rapidly and al lows wider consumer

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choice.   People can search for hol idays at their

convenience and access cheaper deals.   Both products

have maintained their market share by promoting qual ity

assurance and excel lent customer service.   However as the

markets change, so wil l consumer priorit ies.

Economic factors

  -  Economic changes in tax and in terest rates have af fected

levels of d isposable income making is easier , and more d i f f icu l t

to purchase hol idays.

-  Transpor t systems have become more accessib le and cost

ef f ic ient , a l lowing hol iday companies to of fer consumers more

choice.  

Political

  -  A new legis la t ion d i rect ly af fect ing fami l ies is being in t roduced

imminent ly , subject ing parents to f ines for tak ing chi ldren on

hol iday dur ing term-t ime. Hol iday companies bump up thei r pr ices

in the summer hol idays, making i t more appeal ing for some

parents to d isrupt the i r ch i ldren’s ’ educat ion.

Geographic

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  -  The ef fects of the f i rs t I raq War and the awfu l events of

September 11th both h i t the hol iday industry hard.   Thomas Cook

took massive losses dur ing those t ime per iods and consumer

conf idence was at an a l l t ime low.   However as the threat f rom

Terror ism becomes increasingly more l ike ‘ the way of l i fe ’ ,

ho l idaymakers are tending to abandon overseas hol idays much

less now.  

-  Changes in the st rength of d i f ferent currencies has af fected

where people in the lower socio-economic groups hol iday, as

they are looking to get more for the i r money

Caring for Environment:

Running our company in an environmentally friendly way is good for

the environment and good for our business. We're working to conserve

energy and reduce waste, and are exploring the use of sustainable

materials and products.

Customer segmentation

Segmenting:

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The jmc fami ly hol idays product market is segmented in to

d i f ferent types of fami ly s t ructures, and th is is ref lected wi th in

the brochure by the way i t ’s wr i t ten and the in format ion i t

prov ides.   A statement located on the ins ide cover of the

brochure, see Appendix 3, shows the consumer exact ly what they

can expect f rom th is product and the k ind of serv ice they wi l l

receive whi ls t purchasing.   You can see f rom the words

h ighl ighted a l l the core values of th is brand such as f lex ib le,

va lue and choices.

Targeting:

Also f rom the h ighl ighted words re lax, p lay, fun and best hol iday

ever in Appendix 3, you can see how th is product speci f ica l ly

targets the fami ly- type consumer and matches thei r ho l iday

desi res.   The sty les of hol idays inc luded wi th in the brochure are

targeted towards the C2 and D socio-economic groups – most ly

European ‘sun hol idays’ a t an af fordable pr ice.

Positioning

The jmc brand has posi t ioned i tse l f wi th in the middle level o f the

market in terms of pr ice and qual i ty of product .   The brochure

states that i t o f fers va lue for money and except ional qual i ty and

when rev iewing hol iday pr ices, they’ re nei ther cheap, nor

expensive.   This product appeals to i ts consumers as i t represent

qual i ty , safety and act iv i t ies for a l l the fami ly .  

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Marketing Mix

Gap is managing a l l the four e lements of the market ing mix gap

is the

Product pr ice p lacement and promot ion to increase thei r

revenues and thei r market share….

Characteristics

Products

Products features

Feature of gap is prov id ing var ie ty of wear ing the appare l l ike

garments shoes for a l l ages of people and ganders gap

subsid iar ies l ike o ld navy and p iper l ime are prov id ing garments

and shoes match to the modern wor ld. . As most of the wor ld

consis ts of middle c lass people so the products prov ided by gap

having reasonable pr ices….i t is a lso prov id ing a lso onl ine

shopping serv ices…

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Core product

When Gap was founded in 1969, i ts core product was b lue

lev ies jeans and whi te T shi r t . Wi th the passage of t ime i t

increased i ts business and made the core products for a l l the

demographics of society…..

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Product Line:

GAP offers di f ferent types of product l ines l ike i t of fers i ts

of fers garments shoes for al l ages of people and gander. .

Price

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Gap determine i t pr ices accord ing to i ts compet i tors and a lso

accord ing to geographic and demographics… in geographic

pr ices of commodi t ies are d i f ferent f rom place to p lace l ike pr ices

in uni ted state, Asia , un i ted k ingdom

Are d i f ferent accord ing to the economics of people l iv ing in these

areas. Compet i tors point o f v iew gap adjust i ts pr ices to capture

the market in prov ide the value of products. .

V Regular Price $44.50 Regular price $ 29$ Regular Price $44.50 Regular Price $88.00 

Regular Price $42.50 Regular Price $24.5

Regular Price 29.50$Regular Price

Place

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Gap's main oppor tuni ty to reach i ts customer is through i ts s tores. Gap operates stores in the Uni ted States, Canada the Uni ted Kingdom,France, I re land,Korea and Japan. The Gap, Inc. a lso has f ranchise agreements wi th unaf f i l ia ted f ranchisees to operate Gap or Banana Republ ic s tores in Singapore, Malaysia , Uni ted Arab Emirates , Korea , Kuwai t , Qatar , Bahra in , Oman , Saudi Arabia , Cambodia , and Indonesia , Oman….

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Promotion

Gap's promot ion st rategy has been b lamed for the company's

bust . Due to lack of a c lear message, i t has been a l leged that

Gap has lost contact wi th i ts core customers . .which the company

is at tempt ing to win back. Gap is the only nat ional re ta i ler to

spend more than 2% of i ts market ing budget for onl ine market ing.

As a resul t , the company's e-commerce websi te has been c i ted

numerous t imes as a model of s ty l ish ef f ic iency. Gap promotes

i ts products through g i f t cards, cata logs adver t is ing programs on

TV channels and magazines. Gap t r ies to posi t ion i tse l f as a

s ty l ish casual wear reta i ler in a fa i r pr ice. However , i ts market ing

ef for ts to reach out to upperc lass, luxury consumers is b lamed

for recent problems in the company.

In addi t ion, Gap's garment designs and products var ies f rom

North Amer ica and Western Europe. Products so ld in the Uni ted

Kingdom and Western Europe are targeted towards a European

sense of s ty le , whereas the Gap's Nor th Amer ican garments and

accessor ies are designed par t icu lar ly for Nor th Amer icans.

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SWOT ANALYSIS

STRENGTH

Developed techniques

Gap has Developed techniques for deal ing wi th major areas of

HR, job evaluat ion, psychometr ic test ing and basic t ra in ing which

is not so ef fcent ly avai l ing to h is compet i tors.

Excel lent locat ion

Gap has st rength of i ts excel lent locat ion of i ts s tores which are

more at t ract ive and are at main market p laces….. In Pakis tan i t

has made i ts s tore in Is lamabad in the main market area.

Well designed system:

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With i ts long term exper ience i t has wel l designed stores in the

wor ld. . Valuable system of i ts s tores in the wor ld. I ts has

designed the stores more at t ract ive.

Quali f ied in

Gap Enthusiasm, energy, imaginat ion, exper t ise in subject area,

excel lent t rack record in specia l ized area

WeaknessesReactive:

Gap is React ive rather than pro-act ive; needs to be asked rather than developing unsol ic i ted ideas

Undirected use of personal energy

Gap is not good at achiev ing resul ts through undi rected use of personal energ ies, t rouble at expressing themselves ora l ly and on paper – may have ideas but these come over as incoherent , management exper ience and exper t ise l imi ted

Drive through

GAP does not have a drive through in its each stores. But they

are doing best to overcome on their weakness of drive through.

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Opportunities

Effectiveness

Due to New management team, that has improved overa l l

organizat ional e f fect iveness through organizat ional development

and cul tura l management programmes

Brand name

They have the opportunity of their brand name as GAP is a

trademark for wearing apparel and is known by many people in

the world as a valuable cloth brand..

New modern styles :

Gap has oppor tuni ty of i ts designers which design the new sty les

which are accord ing to modern age. Gap designs i ts product

accord ing to the custom of an area. . .

Threats

Competi tors

Gap has a threat f rom i ts compet i tors l ike pest which is inc luded in the wor ld wide brands.

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De-central izat ion

De-centra l izat ion of Gap having the ef fect o f removing

depar tments where the ind iv idual is employed and e l iminat ing

middle management layers to form f la t ter s t ructure of

organizat ion. . .

Employees

Gap is fac ing threat f rom i ts employees of increasing thei r sa lar ies…

Top competitors:

AMERCROMBIE & FITCH

AMARICAN EAGLE OUT FITTERS

Others include:

Aeropostale, Benetton, Calvin Klein, Eddie Bauer, Express, FDS, Guess, the Limited, J. Crew, Target

Buying behaviour:

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Buying behavior means response of people towards a product as

people in the wor ld has not same nature. So they respond

d i f ferent to the product but we observed the most common

at t i tude of the people to the product was var ie ty seeking

behaviour because low involvement and h igh d i f ference among

brands is occurr ing. . . as gap is prov id ing d i f ferent var ie ty of

products at low level pr ic ing. .

High involvement low involvement

Significant

Difference

Between

Brands

Few difference

Between

Brands

Gap brands

Complex buying behaviour

Varity seeking behaviour

Dissonance reducing buying behaviour

Habitual buying beahviour

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Founded in 1969 by Donald Fisher, the name originated from the phrase. The generation gap

Gap offers Iconic American Style to consumers of all ages.

Gap, Incorporated

Gap incorporated is an American clothing and accessories retailer based in San Francisco, California and founded in 1969 by Donald Fisher and Doris Fisher. As of October 2006, Gap, Inc. had approximately 150,000 employees and operated 3,139 stores worldwide in the United States, Canada ,Mexico ,France Ireland ,Indonesia Japan South Korea ,Kuwait, Malaysia, Peru, Singapore ,Turkey the United Arab Emirates and the United kingdom offers iconic style to consumers of all ages .

Gap offers iconic American style to customers of all ages. it provides products to youngsters ,kids,ladies,gents of wearing apparel garments.

Pictures

Shorts T shirt skirts

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Accessible luxury.

Banana Republic is an accessible luxury brand.

Banana republic, formerly a catalog retailer selling safari-themed clothing, was purchased by the company in 1983, and eventually was rebranded as an upscale clothing retailer in the late1980s.

Jewellery bag tall

Bracelet

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Great fashion, Great prices

Old Navy offers great fashion at great prices.

Old Navy was launched in1994, as a value chain with specialty flair. Forth and Towne, the company's fourth traditional retail concept, was launched on August 24, 2005, in the Palisades Center inWest Nyack, New York, featuring apparel targeted toward women 35 and older .Old Navy is a brand of clothing and chain of stores owned by Gap, Inc., Old Navy’s corporate operations are within Gap in San Francisco and San Bruno, California. It is one of the first major corporations to house headquarters in the new Mission Bay district of San Francisco.

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Piperlime offers a hand-picked assortment of the best brands in footwear

Piperlime, was created in 2006. the basic product of piperlime are shoes for all ages of the people. It provides online services for shopping.

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One flow in 4 psBasic flow in the 4 ps of the gap was found that is does not make care

relationships with its core customers

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Product life cycle

Product life cycle indicates the promotion of the product. when a product is

launched its requires just expenses but with the passage of time when the

product grommes in the market profit starts now the position of the gap is in the

product life cycle is at gromme period which is its maturity point…

TimeProduct

Develop-

ment

Introduction

Profits

Sales

Growth

Maturity

Decline

Losses/Investments ($)

Sales andProfits ($)

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