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    Brand Positioning

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    Ajay Sahu
    GAP has historically segmented the apparel market and positioned its brands (Old Navy, Gap, Banana Republic) across three major segments based on price - discount/value, mid-priced, and high-end. While this differential strategy allowed GAP to enjoy growth for decades, intensifying competition from companies targeting the same segments poses new threats. To diversify, GAP explored brand extensions into new product categories and a new brand, Gap North/Towne, targeting a more mature customer segment. However, the ability of this new brand to contribute financially is still uncertain.

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    Brand Positioning

    Uploaded by

    Ajay Sahu
    655 views2 pages
    GAP has historically segmented the apparel market and positioned its brands (Old Navy, Gap, Banana Republic) across three major segments based on price - discount/value, mid-priced, and high-end. While this differential strategy allowed GAP to enjoy growth for decades, intensifying competition from companies targeting the same segments poses new threats. To diversify, GAP explored brand extensions into new product categories and a new brand, Gap North/Towne, targeting a more mature customer segment. However, the ability of this new brand to contribute financially is still uncertain.

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    Renew Poistioning

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    GAP has historically segmented the apparel market and positioned its brands (Old Navy, Gap, Banana Republic) across three major segments based on price - discount/value, mid-priced, and high-end. While this differential strategy allowed GAP to enjoy growth for decades, intensifying competition from companies targeting the same segments poses new threats. To diversify, GAP explored brand extensions into new product categories and a new brand, Gap North/Towne, targeting a more mature customer segment. However, the ability of this new brand to contribute financially is still uncertain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    655 views2 pages

    Brand Positioning

    Uploaded by

    Ajay Sahu
    GAP has historically segmented the apparel market and positioned its brands (Old Navy, Gap, Banana Republic) across three major segments based on price - discount/value, mid-priced, and high-end. While this differential strategy allowed GAP to enjoy growth for decades, intensifying competition from companies targeting the same segments poses new threats. To diversify, GAP explored brand extensions into new product categories and a new brand, Gap North/Towne, targeting a more mature customer segment. However, the ability of this new brand to contribute financially is still uncertain.

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    Brand Positioning and Market Segmentation Brand positioning is an important strategy for achieving differential advantage.

    Essentially, positioning reflects the place a product occupies in a market or segments. GAP has a wide range of products that are reflected in multi segments. !nitially, as a specialty clothing retailer, GAP segmented the market using price as the sole criterion. GAP strategically decided to serve three ma"or segments, which can #e seen from price differences among GAP$s three #rands% &ld 'avy (discount)value*, Gap (mid price*, and Banana +epu#lic (high end*. !n the past decades GAP$s differential strategy worked successfully, and this allowed GAP to en"oy phenomenon growth. Part of the success was clearly to due to GAP$s a#ility to play on its #rand names. As stated #y Grant, #rand names and the advertising that supports them are especially important as signals of ,uality and consistency. GAP #rand names provide a guarantee #y GAP to customers of the ,uality of GAP products. 'evertheless, in the recent years competition intensified as new players also targets some of the same market segments aimed #y GAP #rands. GAP$s ma"or competitors included vast array of companies from three market segments. !n the discount)value market the main competitor is -al .art, who is capturing shares in the apparel market as it is striving to target more fashion conscious consumers. !n the mid priced market, the ma"or players that Gap faces are A#ercrom#ie / 0itch and American Eagles &utfitters. All three #rands target the same age group. 1hirdly, in the high end apparel segments, 2. 3rew and 4r#an &utfitters are Banana +epu#lic$s #iggest opponents. Based on the information, a positioning map can #e constructed to show GAP$s current position relative to its competitors. E56!B1 is a diagram that shows GAP$s three #rands and its competitors in terms of the price and the targeted age group. Beside the three original market segments, GAP also e7plored a new segment% more mature group of customers, who were underserved #efore. 1he creation of 0orth / 1owne allows GAP to transfer #rand e,uity from the three original #rands to this new #rand. !n addition, GAP would also #e a#le to relate its previous #rands$ e7periences to the new #rand in order to increase the chances of success. 6owever, the a#ility of 0orth / 1owne to contri#ute to the overall financial condition of GAP is still ,uestiona#le. Brand Extension Brand e7tensions refer to the use of successful #rand name to launch a new or modified product in a same #road market. 8uccessful #rands help a company to enter new product categories more easily. GAP #roadened its focus #y introducing #rand e7tension for different product lines. 0or instance, GAP developed GAP9id, #a#yGAP, GAPBody, GAP.aternity, GAPAccessories, and GAP.en. Essentially, GAP wants to capitali:e on its #rand e,uity in order to capture more shares in the apparel industry. Brand e7tension can also #e considered as GAP strategy to diversify. 1he intense competitions lead to a limited room for growth which increases GAP$s #usiness risk. By putting eggs in different #askets, GAP effectively reduces the amount of #usiness risk.

    Old Navy 1arget 8egments 8elling Points &pportunities 1hreats

    Gap Target Segments Although people of various ages shops at Gap, #ut Gap specifically targets ;< to => year old. 1he su# #rands of Gap also targets shoppers for shop for intimate apparels, #a#ies, and kids. Selling Points Gap products include modern and stylish wardro#es for work or going and casual weekend wear. !t appealed to people who want to have sense of modern fashion. Opportunities Gap has competent people in #oth of its management and design team. 1hey all have strong #usiness e7perience prior to "oining Gap. 1his increases the likelihood that the two teams would lead Gap into the right direction. 1he redesigning of stores has a favora#le impact on customers$ shopping e7perience, which can ultimately ma7imi:e sales. 3hina served as a #oth demand of supply market for Gap, which also true for the other two #rands. 1he international market is risky as was shown in Gap$s e7it of the German market, #ut at the same time it is rewarding. !f Gap is a#le to capture the opportunities in 3hina, it "ust opened the door for huge growth. Threats 3ontinuous research and customer surveys are needed in order to keep pace with the apparel industry. 3ustomers feed#ack to Gap$s offering are really important. Gap is risking losing #usinesses to competitors if it ignores customer feed#acks and insights. Also, maintaining Gap$s identity can also #e an issue as some people #elieved that &ld 'avy was canni#ali:ing Gap. !f customers see no difference #etween Gap and &ld 'avy, they would #e indifferent #etween two #rands and simply #uy the cheaper one. !n that case maintaining separate #rand would #e a complete waste.

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