Kindra Blumentritt, Andrea Bowers, Tracy Harwood, Melissa Jackson, and
Meagen Thompson

 Doris and Don Fisher opened the first GAP in 1969 in San
Francisco.
 The Fishers then began to branch out and create brands such as
Banana Republic and GAPKids.
 In 1998 GAP was awarded for their ‘GAP Khaki’ campaign.
http://www.youtube.com/watch?v=jzFkZb4OlDM
 In 2006 GAP came out with another brand named Piperline.
 By 2010 the GAP had gone global, and had stores in eighty different countries.
 GAP Inc. founded additional retailers such as Old Navy and
Athleta.
 Well established in 3,100 company-operated locations across the
United States, United Kingdom, Canada, China, France, Ireland,
Japan and Italy.

 GAP has reduced its number of stores, and begun to expand into Europe and Asia in search of new markets.
 Prices for cotton are increasing 80.5% from last year, due to consumption exceeding production as well as several natural disasters that have affected crop regions.
 Risks and factors were listed in their January sales report:
 The company has taken and will be taking many risks throughout this year; all of these can be affected by the:
 Economy
 Regulatory or administrative changes
 Trade, changes in consumer spending patterns
 Changes in sourcing costs,
 The risk that international expansion will not be successful, and other franchises included in the brand will not be successful.

 The GAP’s target market is not clear because GAP is trying to cater their products to everyone.
 “And in shifting its focus over the last decade, GAP made it difficult to keep track of consumer demand”
(GAP Struggles 2011).
 The amount of visits within the United States was down 14% in the month where there should have be a slight increase since it was the holiday season, but instead it was at its lowest since January 2011.
 GAP is having difficulties attracting their consumers and convincing them of making a purchase.

Abercrombie & Fitch Co.
 Est. 1898 – Manhattan
 Obstacles - the depression, filed bankruptcy, and acquired new ownership
 Brand Image - preppy, outdoorsy, and casual aesthetics
 Merchandise - denim, basic shirts including tees, tanks and sweatshirts, along with fragrance, shoes and accessories
 Target Market – 18-21 (men and women)
 Success - 1,045 stores in Asia, North American and Europe.
2000 – Hollister
2008 – Gilly Hicks (intimate apparel)
2012 – $4,158.1 million in sales

ANN Inc.
 Est. 1954
 Brand Image - career woman who seeks modern classic pieces that can be utilized season-to-season.
 Merchandise - apparel, shoes, and accessories (women)
 Success - 907 Ann Taylor’s, Ann Taylor Factory’s, LOFT’s and LOFT Outlet stores in 46 states, the District of Columbia and Puerto Rico.
 2012 - $2,212.5 million in sales

American Eagle Outfitters, Inc.

Est. 1977 - Novi, Michigan
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Merchandise - denim, casual apparel (sweaters, t-shirts, fleece, outerwear) and accessories

Target Market - 15-25 y.o. (men and women)

Success - 1,000 stores “in all 50 US states, Puerto Rico, Canada, and now in the Middle East” (Hoovers, 2012)

2007 –entered the New York Stock Exchange as “AEO”

2006 – “Aerie” (intimate apparel)

2008 – “77Kids” online store in 2008 and brick-and-mortar in 2010

2012 –$3,159.8 million in sales

STRENGTHS
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Stores located worldwide
Global brand recognition
Franchise agreements to easily expand internationally
Multiple brands and brand extensions
WEAKNESSES
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Nearly all merchandise is dependent on 3 rd party vendors
Less attractive and trendy clothing
Uncontrollable production processes
Huge store base including unaffiliated franchises

OPPORTUNITIES THREATS
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Penetration of e-commerce
Global new markets in Europe and China
Ability to take advantage of other companies trend mistakes
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The market of prime real estate is very competitive
Economic downturn directly effects apparel retail business
Emerging fast-fashion retailers (such as H & M)
Global specialty apparel is highly competitive (Urban
Outfitters and J Crew)

 Ranging from:
 A failing design department
 Lack of a target market
 Lawsuit
 GAP is struggling greatly, and does not seem to have a grasp on how to improve their image.
 Recently fired its star designer Patrick Robinson, with no replacement lined up.
 The lack of a successful and prominent image for the company resulted in the firing and quitting of many top executives.
 The lack of a target market is hindering their image as a brand and the success of the company.
 At the end of last year a lawsuit was filed against the sister company of
GAP, Old Navy by Kim Kardashian. The lawsuit was filed because Kim
Kardashian did not approve of the look-a-like Old Navy used in all of the commercials and print ads

Interview with GAP employee
 Quality Decrease
 Deceiving Customers
 Competitors offered better quality for the same price.
 Need to change quality or price.

Reading what customers are saying about GAP:
 Negative
 Unsatisfied
 Tired of overpriced basics
 Desire for trendy clothing
GAPs’ Closing:
 200 stores in US alone

 What Gap is doing wrong? How do we make it right?
 Attracting a younger generation of followers.
 Brand Image- nostalgic but trendy, quality clothes that fit.
 Now that we know what we want, how do we go about getting it?

 No more brand expansion
 Less breadth, more depth!
 Focus on fit and “wardrobing ”

 Taking what is already done well and tweaking it for a new generation
 Using details and patterns to help
“boring” clothes feel unique.
 Superior fit and quality

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 Social hub within existing locations
 With less merchandise on the floor to create an open air atmosphere
 Lounge area in middle
 Move cash-wrap to the side or back

 Hire someone who thinks “out of the box” to revamp social media.
 Think of new ways to use social media to give
GAP a competitive advantage.

Our Goals after plan is implemented:
 30% rise in general store traffic
 Significant return on assets for re-training associates
 30% rise in net sales
 Get lower cost from manufacturers
 Fast inventory turnover