MASTER OF BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
Assignment 2
Group 30%, 3 students in a team (4500 words) to be submitted on exam date
Gap Inc
There are numerous companies that follow an extremely differentiated product strategy. Just
like Procter & Gamble it shows just how finely the market for laundry detergents can be
segmented. Many consumer products companies follow this same strategy. But other types of
companies follow this strategy as well. Consider the portfolio of brands owned by Gap Inc.
The following is a description of each of their main brands as noted on the corporate Web site
(http://gapinc.com/public/index.shtml).

Gap: Gap offers iconic American style to customers of all ages. Since 1969,
customers have looked to Gap for updated, casual clothing and accessories that help
them express their own personal sense of style. Today, Gap continues to be the best
destination for wardrobe essentials such as T-shirts, hoodies, great-fitting pants, and
denim. What began as one brand has grown to include Gap, GapKids, babyGap,
GapMaternity and GapBody. Gap has become a cultural icon by offering clothing and
accessories rooted in cool, confident, and casual style to customers around the world.

Banana Republic: Banana Republic is an accessible luxury brand, offering highquality apparel and accessories collections for men and women. Delivering elevated
design and luxurious fabrications at approachable prices, Banana Republic has been
credited with helping make fashion more accessible. The brand offers elevated
essentials and sophisticated seasonal collections of accessories, shoes, personal care
products, and intimate apparel. From work to casual occasions, Banana Republic
offers covetable, uncomplicated style.

Old Navy (may not be available here): Old Navy offers great fashion at great
prices, for everyone. For more than a decade, Old Navy has been famous for bringing
customers on-trend apparel and accessories, as well as updated basics, at a surprising
value—all in a fun, energizing shopping environment. From Old Navy’s Item of the
Week—a special item at a special price each week—to its much-talked-about
advertising campaigns, Old Navy is still the place to go for the latest fashion at
amazing prices.
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1. What is Gap Inc.’s segmentation strategy? What is unique about their market
segmentation strategy?
Areas to discuss

Segmentation variables like – geographic, demographic, psychographic and
behavioral issues
Undifferentiated/differentiated/concentrated Marketing issues
(6 marks)
2. How is Gap Inc. differentiating each brand?
Areas to discuss



Differentiation and Positioning understanding and issues
Positioning Maps
Value propositions
Product/services/channel/people/image differentiation issues
(6 marks)
3. Are there weaknesses in the Gap Inc. strategy? If so, what are they?
Areas to discuss


Positioning statement and strategy
Re-look into your answers in questions 1 and 2 to look into their weaknesses
Apply SWOT and relevant marketing management models
(6 marks)
4. Do you see any uncovered market segments? If so, what are they? How could
Gap Inc. exploit this?
Areas to discuss





Must understand all previous questions
Positioning or Perceptual mapping
Target marketing
Secondary research (possible primary research)
Positioning or re-positioning strategy
Apply BCG, Ansoff and other relevant marketing management model
(7 marks)
5. Elaborate how can you apply your understanding of marketing mix to penetrate
the market in Malaysia with consumer product of foreign brands within GAP Inc?
Areas to discuss





Primary and secondary research
Porter’s five forces
B2B & B2C issues
Consumer buying behavioral issues
Hofstede cultural dimensions
Segmentation, differentiation and positioning issues
(12 marks)
6. Create an IMC proposal with your recommended positioning and target customers
in Malaysia market by gender or by a specific age group.
Areas discuss-2-








Communication model
Promotional Mix
Understanding of local media
Target marketing
Segmentation and differentiation issues
Positioning mapping and strategy
Porter competitive strategy
Other relevant marketing management model
(13 marks)
The End
TABLE OF CONTENT
NO
DETAIL
PAGE
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1.0:
Introduction
5
2.0:
Segmentation Strategy
6 - 10
2.1:
Geographic Segmentation
6
2.2:
Demographic Segmentation
7-9
2.3:
Psychographic & Behavior Segmentation
9 - 10
2.4:
Uniqueness of Gap Inc.’s Segmentation
10
3.0:
Differentiation Marketing
11 - 15
4.0:
Gap Inc. Strategy Weaknesses (TOWS)
15 - 20
5.0:
6.0:
7.0:
4.1:
Threats
15 - 16
4.2:
Opportunities
16 - 18
4.3:
Weaknesses
18 - 19
4.4:
Strength
19 - 20
Uncovered Market Segment
20
5.1:
The Ansoff Matrix
21
5.2:
BCG Matrix
23 - 24
Market Development of Old navy in Malaysia
24 - 32
6.1:
24
Primary research
6.1.1:
Shopper’s demographic and shopping behavior
25 – 27
6.1.2:
Shopper’s Perception on GAP Inc.
27
6.1.3:
Shopper’s Opinion on Old Navy
27
6.1.4:
Concluding Remarks on the Survey Findings
28
6.2:
Michael Porter’s Five Forces
28 - 30
6.3:
Hofstede Cultural Dimension Analysis
31 - 32
IMC Proposal
7.1:
33 - 38
Segmentation Strategy, Position Mapping &
Target Marketing
8.0:
33
7.2:
Integrated Marketing
Communication
7.3:
Understanding Local Media
36
7.4:
target Marketing and Porter’s Generic Strategy
37
7.5:
Select the Marketing Communication Channel
38
Conclusions
34 - 35
39
References
Appendix
-4-
1.0: INTRODUCTION
The GAP, Inc. or simply known worldwide as GAP, established in July, 1969 and based in
San Francisco, California. The Gap functions as the largest specialty apparel retailer in the
U.S. It offers clothing, accessories and personal care products for men, women, children and
babies. It owns five apparel brands- The Gap, Banana Republic, Old Navy, Piperlime and
Athleta.
GAP Inc. has a work force of 134,000 employees, operated 3,068 company-owned stores
mainly in the North America countries and 178 franchise stores across Asia, Europe, Latin
America and Middle East (Refer Figure 1). In 2010, GAP Inc. has recorded 14.66 billion of
net sales and 1.2 billion of net income, 9% higher than 2009. In the same year, GAP Inc. has
ranked 7th among specialty retailers in the list of World’s Most Admired Companies by
Fortune Magazine. Today, its present is felt around the world with customers in over 80
countries can buy the products (GAP Inc., 2011).
Figure 1: Store count, openings, closings, and square footage for Gaps’ stores
Source: GAP Inc.: Financial Information- Annual Report 2010
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http://www.gapinc.com/content/dam/gapincsite/documents/GPS_AR_10.pdf
2.0 : SEGMENTATION STRATEGY
As a company or marketer, it is rare to satisfy everyone in the market. Therefore it is
necessary to start by dividing the market into segments. Segmentation strategy is an
approach to subdivide a market or population into segments where individuals have similar
needs for services and products (Kotler & Keller, 2012). GAP Inc. employs segmentation
strategies which include geographic, demographic, psychographic and behavioral
segmentation in order to make its brands and products competitive in the world market.
2.1 : Geographic Segmentation
Geographic segmentation is an approach to divide the market into different geographical
units such as nations, regions, states, or cities i.e. Gap Inc., its presence is felt around the
world with 3,068 company-owned stores and 178 franchise stores. The 90% of companyowned stores are located in developed countries of North America such as U.S., U.K.,
German, France and Italy; the remaining 10% are located in Europe and other developing
countries in Asia. The franchise stores are operated in Asia, Australia, Europe, Latin
America, and Middle East (Refer Figure 2). Gap Inc. has expended its global
opportunity aggressively and now they are in 31 countries across the world. To further its
edge in the market, GAP Inc. has enhanced its geographical footprint via the webpresence with online sales available to customers in over 90 countries (GAP Inc., 2011).
Figure 2: Gaps’ franchise stores
Source: GAP Inc.: Financial Information- Annual Report 2010
http://www.gapinc.com/content/dam/gapincsite/documents/GPS_AR_10.pdf
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2.2 : Demographic Segmentation
Demographic segmentation divides the market into groups on the basis of variables such
as gender, age, income, occupation, education, family size, etc. (Kotler & Keller, 2012).
GAP Inc. portfolio consists of three major brands- Gap, Banana Republic and Old Navy
to cater a variety of customers (Refer Figure 3 and Diagram 1 to 9).
Figure 3: Net sales by brand, region, and reportable segment
Source: GAP Inc.: Financial Information- Annual Report 2010
http://www.gapinc.com/content/dam/gapincsite/documents/GPS_AR_10.pdf
Diagram 2
Diagram 1
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Diagram 3
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Diagram 4
Diagram 5
Diagram 6
Diagram 7
Diagram 8
Diagram 9
-9-
Diagram 4
Brand
Old Navy
Primary Target Market
 Family persons- dads, moms, and to a lesser extent,
price conscious though still fashion oriented teens to
young working adults.

They are basically low income to lower-middle
income groups of customers who reside in sub-urban

Gap
area or near urban area.
Has the broadest customer base due to its brand
extension for different product lines.

It appeals to the middle income group of customers
who are highly educated professional or middle
management and reside in urban areas.

The target markets of all its product lines can be
classified into 3 generation clustersgeneration X (1), Y (2) and Z (3).
Brand
The Gap
GapBody
GapMaternity
GapKids
BabyGap
Market Segments
Generation X, Generation Y
Generation X, Generation Y
Generation Y
Generation Y, Generation Z
Generation Z
Note:
(1)
- People born in 1960s and 70s
(2)
- Also known as Millennium generation, born in mid 1970s
to early 2000s
(3)
Banana Republic
- Children that born after 2000s

Represents the most pricey and fashion-conscious of
GAP Inc.’s brands, which appeals to successful
working professionals or top level executives.

They are basically upper-middle to high income
groups of customers who are willing to pay premium
for styles, and live in or near the metropolitan area.
2.3 : Psychographic & Behavior Segmentation
Psychographic segmentation divides the customers into different groups according to
their personality traits, lifestyles and values. Behavior segmentation divides customers
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into groups on the basis of their knowledge, attitude and response toward a product or
service (Kotler & Keller, 2012). Thus, GAP Inc segmented the customers according to
the psychographic and behavior segmentation as discussed below.

Old Navy - Customers are practical, fun-loving and family-oriented people who
are resource constrained. They prefer comfortable and stylish clothing that
provides the best value for their money.

Gap - Customers are tends to be energetic, active and work-oriented people who
have significant time to shop. They have a great sense of style in their wardrobe,
and spend comparatively high proportion of income on fashion.

Banana Republic - Customers are successful and career-oriented people who
have little time to shop due to time-pressured. Customers are successful and
career-oriented people who have little time to shop due to time-pressured.
2.4 Uniqueness of GAP Inc.’s Segmentation Strategy
GAP Inc.’s segmentation strategy catered to men, women, adults, teens, and kids of
almost all ages. GAP Inc, paid close attention to the age distribution and psychographic
segmentation of potential customers. It target different age groups with different brands at
different price-points. Its brand covers the range of low-price to accessible luxury
products for its target customers to choose according to their own resources. For example,

Old Navy is positioned at the level of physiological needs to fulfill the low-end
customers.

Gap is to target the social needs of middle-class customers.

Banana Republic is a luxury brand of GAP Inc. will fulfill the internal/ external
self-esteem needs of high-ends customers.
Based on the Maslow’s Hierarchy of Needs, once a person fulfills one needs, he/she will
pogress to higher levels. As such, there is high possibility that the target customers will
remain loyalty and experience a series of GAP Inc’s brands at different stage of their life.
In sum, GAP Inc. diverse brand portfolio according to segmentation strategy will provide
a great opportunity for the target customers to remain loyalty because its brands are able
to fulfill different level of needs in Maslow’s Hierarchy.
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3.0 : DIFFERENTIATION MARKETING STRATEGY
After identify and profile distinct group of buyers who differ in their needs and preference,
the next step is to decide which market strategy the firm will adopt to enter its target market
segments. There are 4 target-marketing strategies:

Undifferentiated marketing

Differentiated marketing

Concentrated marketing

Micromarketing
In this aspect, it is evident that GAP Inc. uses differentiated marketing strategy to market
its products. In differentiated strategy, the firm decides to target several market segments
whose needs, product usages, or market responses are appreciably different. As mentioned in
section 2, the three main brands of GAP Inc. are catered to different group of customers
based on demographic, psychographic and behavior segmentation, which is developed on the
basis of age, gender, income and some personal attributes. By having different positioning of
its brands, GAP Inc. is also able to fulfill different individual needs in Maslow’s Hierarchy of
needs (Refer Figure 4). Rather than integrating the various customers that the Gap are
targeting, the affordably priced Old Navy and high-end Banana Republic are reaching
different customer segments at different price-points, and each has thrived as distinct entity.
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Figure 4: Maslow’s Hierarchy of needs of GAP Inc.’s brands
The brand positioning map of GAP Inc.’s is shown in Figure 5. It is very important for a
company to determine how it wishes to position its products in relation to the product
attributes that are important to the target customers. With brand positioning map, it can
develop separate marketing mix to attract its potential customers in each segment and cater to
their specific needs and demands. As a result, GAP Inc. will achieve higher sales volume and
stronger position in the chosen markets segments, although the cost also increased to some
extent.
Figure 5: Positioning Map (GAP Inc. and competitors)
Some variables of differentiation will be analyzed below to show how GAP Inc.
differentiate and position each of its brands by providing superior values.
Brand
Old Navy
Product Differentiation (GAP Inc., 2011)
 Brings fun fashion and best value to the whole family
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(from newborn through adults).
 It offers inexpensive on-trend modern clothing,
accessories, and updated basics at lower price-points
than other two brands to the price- & value conscious
Gap

customers.
Being an iconic retail brand, it offers modern-sexy,
cool and American style of high quality casual
apparels, personal care products, and accessories at
lower price-points than Banana Republic.

Also introduces brand extension for its product lines
such as babyGap, GapMaternity, GapKids and
GapBody.
Banana Republic
 However, jean remains as its core products.
 Elevated design, high quality and accessible luxury
that bring modern, fashionable and sophisticated
seasonal collections of apparel, shoes, accessories and
personal care products to high-end customers (women
and men) at higher price-points than Gap.
Brand
Old Navy
Image Differentiation
 Position as an inexpensive on trend clothing retailer to
reach low income to lower-middle income groups of
Gap
customers.
 Position as a stylish and high quality casual wear
retailer in a fair price to reach middle income group of
Banana Republic
customers.
 Position as a mainstream luxury clothing retailer at
higher price-points to reach upper-middle to high
income groups of customers.
Besides the product and image differentiation, GAP Inc. also focuses on personnel and
service differentiation to provide the pleasant shopping experience for its target
customers. GAP Inc. offers tuition reimbursement for approved work-related courses for
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full time employees. It also provides opportunities for employees to learn and develop at
any time during their career through online, classroom and on-the-job training.
At the service side, it is more innovative to be the first retailer to offer an additional
online store with easy return and exchanges policy. Shopping on these websites is quick,
safe and simple for all its brands. Furthermore, it also offers credit card with its own
branding for members to enjoy extra benefits and earn rewards during purchase (GAP
Inc, 2011). All these superior value added services have successfully differentiated its
brands from competitors. Refer Diagram 10 to 12 for the store outlets of GAP Inc.
Store Outlets of
GAP Inc.
Diagram 10
Diagram 12
Diagram 11
4.0 : GAP Inc. STRATEGY’S WEAKNESSES
GAP Inc. has a strong brand portfolio and stable revenue for the past few years in the highly
competitive apparel retailer industry. Currently it is beset by problems both direct and
indirect due to increase competition in the same business. Some of the weaknesses such as
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over-reliance on North America markets and cannibalization risk amongst its own brands
need to address.
SWOT analysis stands for examination of Strength, Weakness, Opportunities and Threats of
a company. This is an extremely powerful tool to understand the current standing of Gap, Inc.
and to predict it future perspectives. SWOT analysis of Gap, Inc. as below:
4.1 :
Threats

Highly competitive in apparel retailer industry - The global specialty
apparel retail industry is highly competitive. Gap Inc. need to compete with
local, national, and global department stores, specialty and discount store
chains, independent retail stores, and online businesses that market similar
lines of merchandise. Furthermore, Gap Inc. face the competition in
European, Japanese, and Canadian markets from established regional and
national chains, and their franchisees face significant competition in the
markets in which they operate.

Reduce in customer spending – General economic conditions, for instance,
the fluctuation of the economy on the interest rate, credit availability, and
other commodity prices has adversely affect the customer disposable income
and decline in the purchase of discretionary items, including merchandise.
Such condition could adversely impact Gap Inc. sales and revenue.

Currency and political risk – Laws and regulations at the state, federal, and
international levels frequently change, and the ultimate cost of compliance
cannot be precisely estimated. The impact that may result from changes in the
regulatory or administrative landscape can be predicted by no one. Any
changes in regulations that impacts employment and labor, trade, product
safety, transportation and logistics, healthcare, tax, privacy, or environmental
issues, among others, could have an adverse impact on Gap Inc. financial
condition and results of operations as nearly all of Gap Inc. products are
manufactured by independent 3rd party.
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4.2 :

Opportunities
Growth in online retail spending - Online shopping is steadily growing in
popularity in the US. Retail e-commerce sales in the US recorded totaled
$127.7 billion in 2007 and grew 14.3% at $146 billion in 2008. Online
division grew sales in 2009. The e-commerce platform they launched in 2008
—called Universality— remain an industry leader. Gap already sells its
products
to
the
US
customers
through
its
websites—Gap.com,
bananarepublic.com, oldnavy.com and Piperlime.com. Growth in online retail
spending would enable the Gap to earn more revenues from its online
websites.

Franchising agreements - Gap has franchising agreements with unaffiliated
franchises to operate Gap and banana republic brands in stores in nearly 80
franchise stores across the world. They have franchise agreements with
unaffiliated franchisees to operate Gap and/or Banana Republic stores in
Australia, Bahrain, Bulgaria, Croatia, Cyprus, Egypt, Greece, Indonesia,
Israel, Jordan, Kuwait, Malaysia, Mexico, Oman, Philippines, Qatar,
Romania, Russia, Saudi Arabia, Singapore, South Korea, Thailand, Turkey,
and United Arab Emirates. It is enable Gap Inc. to cater the international
market more effectively.

Launch of Forth and Towne - Gap launched Forth and Towne brand, the
company’s new women’s apparel retail in April 2005. The new brand focuses
on women over age 35 and would offer a broad range of sizes, with a focus on
fit, and assortments that serve a variety of occasions. A rapidly growing
segment of the population, this group’s spending power accounts for about
39% of women’s total apparel expenditures. Forth and Towne will launch in
four test stores in the Chicago market and one in New York in fall of 2005.
This represents an important long-term growth opportunity for the company.
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
Elimination of textile quotas - The elimination of textile quotas offers
immense growth opportunities to retail apparel companies such as Gap. Under
the terms of World Trade Organization’s (WTO) Agreement on Textile and
Clothing, US quotas on imports of textiles and apparel from most WTO
members were lifted in January 2005. This will enable US retailer to produce
high quality merchandise at a low cost, whilst providing the opportunity to
broaden their product portfolios. This event would improve flexibility in
obtaining imported merchandise manufactured in WTO countries. Since Gap
sources its merchandise from more than 700 vendors in 50 countries, such an
agreement may provide ample savings opportunities to the company.

Online data mining – The data collected via customer’s online shopping will
enable Gap Inc. to analyze customer’s attributes such as shopping experience,
spending habits, styles and their favorite items. It will help to retain loyal
customers and improve requisition process efficiency.
4.3 :

Weaknesses
Geographically concentrated operations - Gap relies heavily on the North
America markets to generate revenue. The company has a weak presence in
other geographies, including Canada, Europe and Asia from the company
revenue. In contrast, competitors such as Hennes & Mauritz (H&M), Levi’s,
Tommy Hilfiger have more globally diversified operations, which provide
them with a better revenue profile. Geographic concentration of operations
increases the company’s vulnerability to adverse market conditions in the US
and limits growth opportunities.

Geographically fragmented manufacturing and sourcing – It will directly
impact the cost of the products due to different currency rate and the risk of
delay in shipment. Gap Inc. sources the merchandise from approximately
1020 vendors in 50 countries and independent third parties outside of their
principal sales markets manufacture nearly all the products. (Gap Inc., 2011)
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
Relatively less differentiated fashion collection - Basic apparel items tend to
be commodity-like, and thus differentiation comes mainly through price, with
lower priced competitors usually winning market share. The current pricedriven sales environment places the company at a disadvantage. In an
environment where basic wardrobe product offerings are indistinguishable
from one specialty retailer to the next, and the shopping decision is made on
price, Gap is likely to lose its customers to lower priced discount retailers.
Moreover, the more fashion-conscious customers would be willing to buy
from other supply chain leading stores that offer exclusive fashion garments
such as H&M, Target and Zara. The company’s competitors have become
much quicker in getting in new fashions, increasing competition and putting
Gap at a comparative disadvantage.

Cannibalization risk – Cannibalization risk amongst its own brands due to
some overlapping of target customers especially between
The Gap and
Banana Republic. Maintaining the uniqueness of each brand has become a
challenging task.
4.4 :
Strength

Strong brand recognition - The Gap's multiple brands have become some
of the most recognizable labels within the apparel industry. Its product
line offers a selection of clothing for all ages. The company used multiple
brand strategy to acquire greater market share. This strategy allows a
company to seize their opportunities from multiple approaches. For some
benefits of the multiple brand strategy, it enables a company to get more
shelf space of its products and to respond to consumer demand for
something new. It can saturate a market by filling all price and quality
gaps. It also offers products to brand-switchers who like to experiment
with different brands. In 2009, CRO magazine ranked Gap Inc. one of the
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"100 Best Corporate Citizens" among major U.S. companies for the fourth
straight year.

Large network of physical stores - Gap has a large network of physical
locations. At the beginning of February 2010, the company had 3,167
stores, including 1,249 in the US and 1,918 in international locations such
as Canada, the UK, France and Japan. Gap has also entered franchise
agreements to operate Gap stores or Gap and Banana Republic stores in
Singapore, Malaysia, United Arab Emirates, Kuwait, Qatar, Bahrain,
Oman, Indonesia, and Korea. Comparatively, Gap’s competitor,
Abercrombie & Fitch Co, operated 1,035 stores in the US, Canada and the
UK. Another competitor, Aeropostale merchandise operates 828 stores.
Gap’s large physical network of stores enhances the company's sales
penetration and gives it a competitive advantage.

Strong financial base - Gap’s cash flow from operations reported a
significant growth in FY2008. The net cash provided by the operating
activities increased by 66% from $1,250 million in FY2007 to $2,081
million in FY2008. The company’s operating margins increased from
7.69% in 2007 to 8.34% in 2008. The strong cash position would boost
the company’s dividends. Gap Inc. reported the earning per share
improved by 19% and a strong cash flow of 1,187 million in 2010. Unlike
Gap, its competitors recorded a decrease in net cash from operating
activities. For instance, Aeropostale’s cash flow from
decreased from $177.4 million in FY2007
operations
to $171.08 in FY2008.
Similarly, American Eagle Outfitters’ cash flow from
operations
decreased from $749.3 million in FY2007 to $464.3 million in FY2008.
Gap’s strong cash position provides the company with a strong financial
base to pursue its expansion plans.

Strong online presence - The role of the internet has been a major growth
driver for the company. Gap operates three websites for trapping this
opportunity – gap.com; bananarepublic.com, and oldnavy.com that offer
the respective brands. Websites provide a virtual showcase for companies;
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giving customers the ability to shop for merchandise, whilst allowing
them to see and experience the brand. In light of rising online sales, a
strong web presence has given the company a competitive edge within the
market.
5.0 : UNCOVERED MARKET SEGMENT
As mentioned previously, GAP Inc. is one of the world’s leading international specialty
retailer with five brands and over 3,200 stores and approximately 134,000 employee’s world
wide. In order to sustain the company’s growth and expansion, it needs to counter it’s over
reliance on the domestic US Market.
The global apparel industry is growing at very high rate as the demand for garments are
increasing rapidly. Mass merchandiser like Tesco, Walmart and Target, category killers and
specialty retails (J.Crew, and Abercrombie) have all developed successful retail models. Due
to the intense competition, GAP Inc needs to continuously to expand the store globally to
enhance its profits and positive growth.
One of the potential country in South East Asia is Malaysia, This is because it subsidiary The Gap and Banana Republic brands are represented by FJ Benjamin, a specialist retail
which is the official franchisee for Malaysian market. There is an opportunity for GAP, Inc to
introduce Old Navy through FJ Benjamin by providing useful insights and guidance to Old
Navy to penetrate the untapped market segments in Malaysia.
5.1 : The Ansoff Matrix
After identified the product and uncovered market segments, it is very important for
GAP. Inc, to exploit the right marketing strategy. Based on the Ansoff Matrix, there
are four strategies to decide the product and market growth.
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i) Market Penetration: - This growth strategy is where the business focuses on
selling existing products into existing markets. There are four main objectives:

Maintain/increase market share of current products.

Secure dominance of growth markets.

Restructure a mature market by driving out competitors.

Increase usage by existing customers.
ii) Market Development :- This growth strategy is where the business seeks to
sell its existing products into new markets. Here are four possible ways of
approaching this strategy:

New geographical; for example, exporting the product to a new
country.

New product dimensions or packaging.

New distribution channels.

Different pricing policies to attract different customers or create new
market segments (niche).
iii) Product Development :- This growth strategy is where the business aims to
introduce new products into existing markets.

This strategy may require the development of new competencies and
requires the business to develop modified products which can appeal to
existing markets.
iv) Diversification :- This growth strategy is where the business markets new
products into new markets.

This is an inherently more risk strategy because the strategy involves
moving into markets in which the business has little or no experience in. For a
business to adopt a diversification strategy, it must have a clear idea about
what it expects to gain from the strategy and an honest assessment of the
risks.
- 22 -
Figure 6: Ansoff Matrix
Getting the right product to the right market at the right time is very important. GAP,
Inc can implement the market development strategy by setting up a joint venture with
FJ Benjamin that has vast experience in Malaysia fashion industry. With the joint
venture, GAP Inc. can access to greater resources of FJ Benjamin such as distribution
channels, technology, and management expertise to reduce risk of investment.
In order to mass market in Malaysia, they can use new distribution channel in major
retails outlets like Jaya Jusco, Tesco and Giant Hypermarket. With high traffic flow
and provided superior shopping experience for its target customers. The existing Old
navy product positioning of low price, on trend casual wear will be the key attributes
to reach the price-conscious in Malaysia.
5.2 : BCG Matrix
Based on relative market share and annual rate of market growth as criteria to map the
position of profitability, The Gap is the “Cash Cow” model that generates a relatively
stable cash flow to GAP, Inc. Old navy and Banana Republic are the “STAR”
models due to high market growth opportunity in North America. Piperlime and
Athleta are the “Question Marks” model due to their slow market share in the high
market growth environment. There is no “DOG” model for GAP,Inc.
- 23 -
Old Navy
Banana Republic
Piperlime
Athleta
The Gap
Figure 7 : BCG Matrix for GAP, Inc.
Old Navy has the potential of reaping long term benefit of attracting a large segment
of customers based on reasonable pricing strategies for quality and fashionable
apparels. With well establish and brand name well known, it is rapidly growth and
capture market share without high investment, This eventually will turn into cash
cows for Gap Inc.
6.0 : MARKET DEVELOPMENT OF OLD NAVY IN MALAYSIA
Malaysia’s retail industry has recorded sales growth of 8.5% in Q4’10 (Eugene, 2011) The
hypermarket, supermarket, and department stores such as Parkson and Jaya Jusco have seen
tremendous growth with continuing dominance of the market in urban areas. In addition,
government has allocated more funds for advertising and promotional campaigns aimed at
making Malaysia a preferred shopping destination leads the growth of Malaysia’s textile and
apparel industry both directly and indirectly.
Gap Inc has been in Malaysia for quite a while now with 5 Gap stores and 3 Banana Republic
boutiques throughout the country. It is no surprise as Malaysia has a growing population of
28 million in 2010 out of which demographics show a substantial 63% of the population
between 15 – 64 years old and a 315 from 0 – 14 years old. This alone would justify the
move by Gap to penetrate into Malaysian market. Furthermore, 70% of the population is
- 24 -
urbanized of which would be primary market for an apparel brand like Gap Inc. Also, the
increasing spending power of the population enables Gap Inc. to sustain and grow their
business. Hence, there is promising future for Gap Inc. to introduce Old Navy in Malaysia.
6.1 : Primary research
This section will present the simple data from the survey that was conducted in Klang
Valley with the objective to analyze the characteristic of shoppers and popularity of
GAP in Malaysia.
Three main shopping malls located in city centre were selected as research locations,
namely Time Square, One Utama, and Mid Valley. Data was collected using a selfadministration of short survey questionnaire. The survey was done over the weekend
to target different age groups of shoppers including their family members, partners
and friends. A convenience sampling was used to recruit 150 respondents to complete
the survey.
The survey findings are divided into three sections, which are shopper’s demographic
and shopping behavior, shopper’s perception on GAP and shopper’s opinion on Old
Navy
6.1.1 Shopper’s Demographic and Shopping Behavior
Age
11%
3%
Gender
8%
<20
20-30
48%
31-40
33%
45%
41-50
>50
- 25 -
52%
Male
Female
<RM18K
Income
RM18K 23.99K
3%
1%
13%
9%
RM24K 35.99K
RM36K 47.99K
35%
RM48K 71.99K
39%
>RM72K
From the total of 150 shoppers who took the survey, it was consisted by 48% male
and 52% of female while 78% of them are fall under the age category 20-40 years
old. Besides, 74% of the respondents are from middle income group which can earn
between RM24,000 to RM47,999 per annum.
Every day
Shopping Frequency
More than once a
week
1%
0% 8%
15%
Like Shopping For Clothes & Accessories
1%
Once a week
Yes
More than once a
month
22%
54%
No
During sales period
only
99%
Rarely
Brands Doesn't Matter to Me
Preferred Clothing Style
Casual
4% 10%
33%
20%
8% 0%
Smart
Elegant
19%
Moderate
Sporty
Classic
17%
16%
Strongly agree
Agree
28%
Disagree
45%
Strongly disagree
Sexy
In terms of shopping frequency, 54% of the respondents go shopping once a week
while 22% shop more than once a month. In the shopping premise, 99% of
respondents will shop for clothes and accessories. Furthermore, all the respondents
will look for casual wear and 45% of respondents agreed brand doesn’t matter as long
as the clothes are reasonably priced and of good quality.
- 26 -
Type of store
Amount Spend in The Store
Department
store
10%
Fashion
store
0%
7%
42%
10%
10%
<RM100
RM100 - 200
Specialty
store
RM201 - 300
32%
Others
41%
2%
46%
RM301 - 400
>RM400
All of the above
The survey also attempt to find out the amount respondent spent in the store for each
shopping trip. Based on the survey, department and fashion stores are the most
popular store which occupied 83% of total respondents. 46% of respondents spent
RM100 – RM200 while another RM32% spent RM201 – RM300.
6.1.2: Shopper’s Perception on GAP Inc.
Have you heard of GAP?
Have you bought from GAP?
10%
47%
Yes
Yes
No
53%
90%
0%
0%
17%
23%
Strongly agree
Agree
Moderate
Disagree
60%
Is the price paid reasonable?
- 27 -
Strongly disagree
No
The respondent also asked about their opinion on the popularity of GAP. From the
result of the survey, 90% of the respondent aware with the brand of GAP, however,
only 53% of them bought from GAP. Also, only 17% of respondent agreed the price
paid for the clothes are reasonable for the brand and quality while 60% chosen
moderate, which believe brand can provide better values.
6.1.3: Shopper’s Opinion on OLD NAVY
Have you heard of Old Navy?
Acceptance level of Old Navy
17%
Yes
35%
Yes
52%
No
Maybe
13%
83%
No
Competitors
8%
15%
G2000
15%
Giordano
Padini
24%
12%
Hang Ten
Bossini
Romp
26%
It is not surprise that majority of the respondents (83%) did not aware of the Old
Navy brand since it is not available in Malaysia. However, 52% of the respondents
are excited and willing to try the Old Navy products after they were informed that it is
a parent brand of GAP and positioned as affordable, high quality clothing retailer. On
the other hand, 50% of the respondents feel that Old Navy able to compete with
Giordano and Padini which offer similar line of merchandise.
6.1.4: Concluding Remarks on the Survey Findings.
- 28 -
From all the survey findings, it is obviously shown that huge opportunities for GAP
Inc. to introduce Old Navy in Malaysia. Target customer group can be those
consumers fall under the age groups of 20-40 years old, which normally shop once a
week and willing to spend around RM100-200 in the store. These shoppers area
middle-income group with monthly income of RM2,000 – RM4,000 and always look
for casual wear that provide best value for their money. Furthermore, they are aware
of GAP brand and willing to try the new product from GAP. However, a few
competitors compete against the proposed Old Navy and further external analysis
need to be evaluated clearly before enter the market.
6.2 : Michael Porter’s Five Forces
To further understand the external factors of fashion industry in Malaysia to develop
an edge over rival firms, we may use Michael Porter Five Force to access the industry
profitability.
Diagram 11: Michael Porter 5 Force Model
- 29 -

Rivalry and threat of substitutes
The fashion and apparel industry is a highly competitive and constantly
changing. Thus, Old Navy needs to compete with various retailers who have
established their strong portfolio in Malaysia. The primary competitors of Old
Navy will face are predominantly local or Asian based which are perceived to
be fashionable and affordable such as Padini, Baleno, Giordano and TopShop.
Also, Old Navy needs to face the stiff competition from large retailers or
departmental stores offering in-house brands as well as non-private labels
such as Metrojaya, Parkson, Jaya Jusco and Isetan. Thus, it is crucial that Old
Navy to differentiate itself with the competitors and create the value to attract
customers and retain customers.
In general, the more specialized a retailer is, the more threatened
by
substitutes it can become. In Malaysia market, Gap is moderately recognized;
more efforts needed to pour in to sustain the customer loyalty and gain the
market share.

Threat of new entrants
Theoretically, as companies grow and become bigger, the barriers for entry
become larger as well. Gap inc. is already a well-established retailer and has
already overcome most barriers. Thus, the threat of new entrants is consider
low for Gap Inc. although low start-up cost required when enter the fashion
industry in Malaysia. Gap’s vertical structure and centralized buying gives
chain stores a competitive advantage over independent retailer. In addition,
brand equity also is Gap’s advantage appealing to the esteem needs of the
individual customer. However, the entrant of well-established international
brands might pose a significant threat, but subject to their target market
segments and the pricing strategy.

Supplier power
The bargaining power of supplier is low for Gap Inc. As stated in the annual
report 2010, independent third parties in 50 countries manufacture nearly all
- 30 -
the products. Although there is a risk of rising materials and labor costs,
however each manufacturer only accounted for a small proportion of firm’s
output that is not more than 3% of the annual demands. Therefore, supplier
power overall can be judged to be low. There is also little threat of vertical
integration by suppliers, as they are not residing within U.S. As such, the
suppliers have limited power to dictate the price and quality standards of the
products as Gap Inc. has little reliance on single sourcing.

Buyer power
Consumers enjoy high buying power in the apparel industry because of the
intense competition. Because of the Gap’s mid level prices for the type of
clothing it sells, the Gap’s strength is in its quality. Still, buyers have power
because of the numbers of competitors and the ease at which buyers can
switch to a different retailer. Shopping-savvy consumers relish the search for
value and will buy more sale merchandise in department stores. These
tendencies have shifted the industry market share somewhat to discount and
factory outlet stores.
6.3 : Hofstede Cultural Dimension Analysis
After analyze the development and macro-environment factors of fashion industry in
Malaysia, it is important for Gap Inc. to understand the intercultural differences
within regions which have strong influences on the values and lifestyles of
individuals to better scrutinize the market.
- 31 -
Diagram 12: Hofstede’s Dimension for Malaysia

Power Distance Index (PDI) that is the extent to which the less
powerful members of organizations and institutions (like the family)
accept and expect that power is distributed unequally. Diagram 4 above
shown it is high for Malaysia (104), which indicates the society’s
readiness to accept power and authority in the social hierarchy. It suggests
that the fact superiors want to clearly differentiate themselves from
subordinates by dressing differently. Gap Inc. won the competitive
advantage at this point as it subsidiaries – Banana Republic and Old Navy
which is aiming different market segment able to satisfy the different
customer group respectively with different price range.

Individualism (IDV) refers to the strength of the ties people have to
others within the community. A society with a low IDV score would have
strong group cohesion, and there would be a large amount of loyalty and
respect for members of the group. Malaysia score a low “26” displaying a
collective culture is the norm of Malaysian. Gap Inc. scores its
competitive advantage here as it multiple brands pursue a market
segmentation strategy; each brand represented a unique image and catered
to a distinct demographic inclusive age group. By positioning it product
- 32 -
correctly, Gap Inc. manages to cater the huge market share due to the
needs of the collective to follow.

Masculinity (MAS) refers to how much a society sticks with, and
values, traditional male and female roles. Malaysia scores in the middle at
50. The ambitious and aggressive nature of this cultural dimension may
again feed the esteem need that is crucial in the clothing industry. Thus, to
win the market, Gap may need to get more celebrities which always
represent “successful” icon in the promotion and advertisement.

Uncertainty Avoidance Index (UAI) refers to the extent to which
people feel threatened by uncertainty and ambiguity. It is moderately-low
for Malaysia by scoring “36” which suggests the society is more ready to
accept risky situation and willing to try new products. Malaysian
consumers may be less prone to economic uncertainties as other high
characteristic cultures; it reflects on the youngsters’ tendencies to spend
more without proper consideration made.
Based on the above analysis, the conditions do favour the growth of the apparel
industry in Malaysia.
7.0 : IMC PROPOSAL
Integrated marketing communication (IMC) is a process for managing customer relationships
that drive brand value primarily through various communication efforts by a firm. These
efforts may include general advertising, direct response, sales promotion, and public relations
and combines one or more channels to provide clear, consistent and impact through the
seamless integration of messages to the intended audience (Kotler & Keller, 2012). This
integration affects all firm’s business-to-business, marketing channel, customer-focused and
internally directed communications (Clow & Baack, 2007). Thus, to develop effective
- 33 -
marketing communications, Gap Inc. needs to identify the target audience and product
positioning of Old Navy, determines the marketing strategy, design the communications,
select the marketing communication channel and establish the budget.
7.1 : Segmentation Strategy , Positioning Mapping & Target Marketing
Looking at Gap Inc. case, it was only set-up it first store in Malaysia in October 2006,
thus, it is consider still a rather brand new in the Malaysian market and has the most
potential to grow. Presently Gap Inc. already has presence in Malaysia retail market
through Banana Republic and Gap. Banana Republic is a luxury and high quality
brand, which target high income group of consumers. Gap appeals to middle income
group of consumers with its cool and casual style of apparels. It even introduces
brand extension to target baby and kids.
The clear product attributes and pricing positioning defined the competitive
positioning of each brand. To prevent cannibalization of its own brands, the Old Navy
needs to focus on the new target market segments by introducing high quality and
best value products. Furthermore, it also provides an opportunity for consumers to
remain loyalty and upgrade from affordably priced Old Navy to accessible luxury
products of Banana Republic at different stage of their life.
To launch Old Navy successfully, it need to target audience from middle-class to welloff families.. The target segment could be from mid-to-late teens to their forties which
can be classified a few major divisions as follow:

Young Executive: Old Navy, since its creation has had a very conservative,
casual and clean cut look. Old Navy has a knack for attracting young ladies
especially those well-educated who seldom have time to shop for their
business and casual suit.

Entry-level students: As nowadays youngster become more independent, so
do their shopping habits. They are able to express their thought, fashion styles
through what are they wearing. Most of them are fashion oriented as well as
price conscious.
- 34 -

Young-couple & Family with kids: As Old Navy provides a wide range of
apparel, shoes and accessories as well as maternity line, consumables and
personal care product, it is suitable for the lower-income family who fashionoriented with bargain-minded.
Under the World Bank Classification, Malaysia is considered an upper middle
income country. The recovering economy, growing retail environment and the
demand for quality apparel at reasonable price would favor an international brand
like Old Navy. As part of the Gap Inc., consumers will be able to identify with the
perceived quality of the brand. The positioning of Old Navy would therefore need
to communicate the quality and stylish range at a lower price bracket compared to
Gap.
7.2 : Integrated Marketing Communication
Implementing an effective Integrated Marketing Communication (IMC) for Old Navy
in Malaysia is a crucial step needed to be adopted to ensure the proper flow of
promotional information between Old Navy and the customer. The process of
marketing communication involves the usage of the following
communication
process as follows:
Diagram 13: Elements in the Communication Process
Source from http://www.mbaknol.com/business-communication/elements-of-the
communication-process/
- 35 -

Source/Sender: In this case, Gap Inc is the sender and will deliver its
message through different channel for instance advertisement, articles and
etc.. to its receiver- the target customer of Old Navy in Malaysia.

Encoding: It is the formulation of messages in the sender’s mind, that is, the
sender not only translate his purpose (ideas, thoughts or information) into a
message but also decides on the medium and media to communicate his
planned message. In this case, Gap Inc encoded the message through different
channels such as promotion and advertisement to reach its targeted customers.

Message: It is a set of symbols which will be transmitted to the customer by
Gap which is done for the purpose of advertisement.

Medium: The most important step in the communication process where how
the sender conveys its message to the receiver. In this case, Gap Inc. can make
use of effective media such as print media, outdoor media and electronic
media to grasp the customers’ attention and thus lead the customer do more
purchase.

Decoding: It is the interpretation of the message by the receiver. Actually, the
receiver looks for the meaning in the message, which is common to both
receiver and the sender. Thus, Gap’s customer is the one who decode all the
information released by the Gap Inc. Thus, usage of proper symbols, text and
selection of language is the crucial steps that Gap Inc need to concern of to
provide a clear understanding of the conveyed message of customers.

Receiver: At the other end of the communication, is the recipient of the
message and must possess the same orientation as the sender. In this case, the
target market segment is the receiver.

Response: This refers to the reaction given by the target market after being
exposed to the message provided by the sender or company.
- 36 -

Feedback: It is the response or acknowledgement of receiver to the sender’s
message. The exchange is possible only of the receiver response. This process
is extremely important for an company such as Gap Inc in continuing or
improving the existing products and strategies.

Noise: It is an interruption that can creep in any point of the communication
process and make it ineffective. The noise can occur in Gap Inc. could be the
improper language, symbol, text and design was used on the print media,
electronic data or outdoor media.
7.3 : Understanding Local Media
The advertising industry in Malaysia can be divided into three mediums, which are
traditional media, digital media and out-of-home media. The traditional media are
newspaper, magazine, and radio which comprise of 3 languages (Chinese, Malay &
English) as well as Pay TV (Astro), and Free-To-Air TV (RTM, TV3, NTV7, 8TV,
NTV9); the digital media are online advertising, mobile advertising, gaming, blogs,
social network, and email marketing; out-of-home media are billboard, digital
signage, banner, floor graphic, table-talk advertising (mamak stores), transport
advertising (bus, taxi, LRT), and out-of-home television media (Power Screen)
(SKMM, 2009).
Gap Inc. advertises mainly through major newspaper publications, but it also
advertises in fashion magazines and on mass transit posters, billboards, and exterior
bus panels. All advertisements stress the central theme of American design, quality,
and moderate pricing, although they are produced separately in each country to suit
local tastes.
7.4 : Target Marketing and Porter’s Generic Strategy
According to Porter, there are four different target-marketing strategies as shown
below:

Undifferentiated marketing
- 37 -

Differentiated marketing

Concentrated marketing

Micromarketing
In GAP Inc’s case, it should adopt differentiated marketing strategy to market each of
its brands, which appeal to different target market segments. By doing so, GAP Inc
able to differentiate itself with other competitors and seed the branding in the
customer’s mind clearly to avoid cannibalizing their sister brand.
For Old Navy itself, it needs to build a sustainable competitive advantage that the
competitors cannot or will not match. Again according to Michael Porter, there are 3
general types of strategies, namely – cost leadership, differentiation and focus. Old
Navy, which is appeals to broad market scope, needs to adopt differentiation strategy.
It can ride on the strong brand image of its parent brands in Malaysia to introduce the
affordably priced, high quality casual apparel. This will become the unique attribute
of its image differentiation in the low-end casual fashion market segment.
Furthermore, the strong global supply chain management of GAP Inc. in sourcing
merchandises across the world will help Old Navy to remain the cost as low as
possible compare to its competitors.
7.5 : Select the Marketing Communication Channel
For Old Navy, the firm must be prepared to allocate a large budget for advertising and
promotions to introduce the brand to the market. The proposed media are as follows:

Advertising: A primary and important tool of promotional mix which
has considerable impact in creating awareness. Channels for advertising
the launch of Old Navy can be through electronic advertising as discussed
in the section 7.3. Most of the Gap’s marketing has been celebrity-driven,
featuring stars known for their personal style in Gap basics. The same
strategy can be used to penetrate to Malaysia market since Malaysian
scores middle at 50 in Hofstede culture measurement, which feed the
esteem need of the Malaysian.
- 38 -

Sales Promotion: used to create desire for customers to purchase the
firm’s products. As mentioned above, Old Navy can provide attractive
offers via tie-up with banks and credit cards. Customers can also be
reached through database collected by Gap stores which have been
operating in Malaysia for several years.

Direct Marketing: This is selling through mailers and
through
internet using email and e-catalogues. Gap Inc. can use Facebook,
Youtube, Twitter, MySpace and etc. to create/ and use viral marketing ads
in promotion for Old Navy Malaysia. It will create hype for the new
stores, allow for sales/discounts updates, and most importantly: provide
the perfect forum for customers or potential customers to complain,
compliment, and even explain why they are or are not supporters of the
Gap Inc. The underlying and most important benefit here is that Social
Networking is all measurable. Gap can use its resources to find out who is
logging on to our pages, when they are logging on, and how often.

Personal Selling: It is the interpersonal part of the promotional mix
that involves that sales forces in the retail-store chains. The sales force
need to develop the walk-in prospects into customers, and grow the
business. This can be done by communicating the products information
clearly and provide good service to customers. It is important to make
customers happy and their shopping experience satisfying one for the
benefit of word-of-mouth.

Public Relations: It is a channel to promote brand image and build
good relationship with interested publics by obtaining favorable publicity.
Old Navy can give out the press kits during launch day to assist media to
present the brand in the most positive light. Subsequently, it can sponsor
some lifestyle advertorials in newspapers to highlight the new arrivals or
latest promotions. Furthermore, it also can become official attire sponsor
for lifestyle events or TV programs to further enhance its brand image in
the fashion industry.
- 39 -
8.0 :
CONCLUSIONS
Established in 1969 as a small retailer of jeans, Gap Inc. has been able to surpass various
hurdles to reach today’s designation of top U.S apparel retailer. However, in order for Gap
Inc. continues to expand into foreign markets, for instance, Malaysia, it requires an in-depth
study of internal and external factors of the country. Market research needed to be conducted
to get insights of the fashion industry of the target country before identify target market
segments and create the brand positioning for its products. Besides, a practical and effective
IMC plan needed to be designed to counter the market competitors and gain the market share.
With the strong market preparation, Gap Inc. will have no difficulty to introduce Old Navy in
Malaysia fashion industry.
REFERENCES
1. Clow, K.E & Baack, D (2007). Integrated Advertising , Promotion and Marketing
Communications 3rd Edition. Pearson Education
2. Eugene, Mahalingam (2011). “8.5% sales growth for retail sector in Q4 last year”,
The Star. Retrieved May1,2011,
http://biz.thestar.com.my/news/story.asp?
sec=business&file=/2011/3/5/business/8193660
3. Kotler,P. & Keller, K.L. (2012). Marketing Management (14th e Ed.). Upper Saddle
River, Pearson.
4. Malaysian Retailer Chains Association (2011) “Latest News & Events – Retail
Players expect 5 -6 percent growth this year”, Retrieved on 2 May, 2011 from
http://www.mrca.org.my/news/newsdetails.aspx?id=155
5. Price Waterhouse Coopers – China (2010) “ Strong and Steady – 2011. Outlook for
the Retail and Consumer Product Sectors in Asia”, Retrieved on 2 May, 2011 from
http://kc3.pwc.es/local/es/kc3/publicationes.nsf/V1/90C27490610D19C125781E003
CA6C8/$FILE/Strong%20&%20Steady.pdf
6. Suruhanjaya Komunikasi dan Multimedia Malaysia (SKMM)., (2009). “ Advertising
Development
in
Malaysia”,
Retrieved
May
19,
2011
from
http://www.skmm.gov.my/link_file/what_we_do/Research/Industry
%20studies/Ad_Dev_Malaysia.pdf
7. GAP
Inc.,
(2011).
“About
http://www.gapinc.com/content/gapinc/html.html
Us”.
Retrieved
8. GAP Inc., (2011). “Financial Information- Annual Report 2010: Results of
Operations”. Retrieved from
http://www.gapinc.com/content/dam/gapincsite/documents/GPS_AR_10.pdf
- 40 -
from:
9. GAP Inc., (2011). “Old Navy”. Retrieved from
http://www.gapinc.com/content/gapinc/html/aboutus/ourbrands/OldNavy.html
10. GAP Inc., (2011). “Banana Republic”. Retrieved from
http://www.gapinc.com/content/gapinc/html/aboutus/ourbrands/BananaRepublic.html
11. Maslow's hierarchy of needs - Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs
12. Opportunity Management For Profit – Forum. Retrieved from
http://www.ecademy.com/module.php?mod=club&t=1069682
13. Boston Consulting Group - Wikipedia, the free encyclopedia. Retrieved from
http://en.wikipedia.org/wiki/Boston_Consulting_Group
14. http://www.gapinc.com/content/dam/gapincsite/documents/GPS_AR_10.pdf
15. http://reviewessays.com/print/Case-Study-Analyses-Gap-Inc/24942.html
16. http://www.theproduct.com/marketing/segmentation_circle.htm
17. http://encyclopedia.jrank.org/articles/pages/1754/The-Gap-Inc.html
18. http://www.jiffynotes.com/a_study_guides/book_notes/cps_01/cps_01_00110.html
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Inc
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mc_0000_0002_0_00115.html
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24. http://www.scribd.com/doc/58946985/Swot-Analysi-of-GAp
- 41 -
APPENDIX
QUESTIONNAIRE & FINDINGS
Questionnaire:
1. What is your age?
< 20
20 – 30
31 – 40
41 – 50
50
2. What is your gender?
Male
Female
3. Please indicate your annual income.
- 42 -
< RM18K
RM18K – 23.99K
RM24K – 35.99K
RM36K – 47.99K
RM48K – 71.99K
>RM72K
4. How often do you go shopping?
Every day
More than once a week
Once a week
More than once a month
During sales period only
Rarely
5. Do you like shopping for clothes and accessories?
Yes
No
6. What type of cloth do you look for? (you can tick more than one)
Casual
Smart
Elegant
Sporty
Classic
Sexy
7. A brand doesn’t matter to me, as long as the clothes are reasonably priced and of
good quality.
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
8. What clothing store do you shop in? (you can tick more than one)
- 43 -
Department store
Fashion store
Specialty store
Others
All of the above
9. How much do you usually spend in the store for each shopping trip?
<RM100
RM100 – RM200
RM201 – RM300
RM301 – RM400
>RM400
10. Have you heard about of GAP, Inc.?
Yes
No
11. Have you bought any clothing items from GAP?
Yes
No
12. Is the price paid reasonable for the brand and quality?
Strongly agree
Agree
Moderate
Disagree
Strongly disagree
13. Have you heard of the Old Navy (parent brand of GAP in US)?
Yes
No
14. Would you be interested if GAP introduces Old Navy as affordably priced, high
quality casual clothing retailer in Malaysia?
Yes
No
May be
- 44 -
15. In your opinion, what other brands offer the similar line of apparels as Old Navy?
(you can write more than one)
Answer:
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