Product Repositioning
GAP Inc is one of the most well-known global retail giant with the global positioning strategy that says ‘Be the World’s favorite for American Style’. The global business comprises of GAP, Banana Republic, Old Navy, Athleta and Intermix.
In it’s hey days the brand identity connected with the target market as the brand used to represent ‘effortlessly cool’ (Monllos. K, 2015).
With the global business being, intense and dynamic with many retailers offering cheaper options and in house issues relating to supply chain and designs not being able to translate into current trends and creating an emotive connect with the millennial consumer due to a’gap’ in the brand identity, have resulted in GAP profits taking a hit of 33%, i.e. $214 million in the first three months of 2016 from $ 319 million last year (Barrie. L, 2016)
GAP led the market in the 90’s due to its innovative positioning, however it has been overtaken by brands like, H&M, Zara, and Forever 21, besides, by launching Banana Republic and Old Navy they were able to create a new segmentation successfully, but that came at the cost of Gap’s core business.
The primary reason GAP lost its edge to the competition, is in view of the slow response of the supply chain that could not meet the demands of the consumers on a constant basis, the ever changing trends and needs of the consumers demand an efficient supply chain system that produces results in terms of designs and production to cater to high street demands.
Repositioning Strategy
The key steps to create a turnaround in terms of brand image and its positive effect on sales will revolve around the following steps:
Brand Image: A new communication that is geared towards the millennial consumers with an intent on creating a pull effect ‘focus on branding’ and eventual push effect ‘marketing and sales’, by utilizing social media and on ground brand activations to generate a one on one interaction.
The strategy is to be geared towards influencers, who the millennial consumers follow or look at, thus creating a direct impact in terms of celebrity endorsement that has always been a major communication strategy of GAP in the earlier communication, with celebrities such as Kate Moss and Anjelica Huston used in last year’s ‘Dress Normal’ Campaign (Monllos. K, 2015).
Young celebrities such as Justin Bieber, Selena Gomez to name a few and social celebrities such as Paris Hilton, Kim Kardashian should be utilized to connect with the millennial consumer base effectively.
Supply Chain: The supply chain needs to be up to the mark in terms of quality and the production speed, since quality is one the key issues that disconnected the brand with the consumers. Tactical campaigns focusing on consumers and their input in terms of design needs to be created, with the company sharing limited editions designs in a quick manner, with quality, to dispel the notion of a company lacking in quality.
Designs: The consumers besides the quality, will be primarily attracted due to new age designs, a new group of young designers needs to be recruited in the design team, as ultimately, it will be the innovative designs that will be eventually turn the wheel for GAP’s brand identity.
Marketing: A new marketing team to focus on a new set of consumers and actions with a key focus on , brand activation, social media and mobile technology to create a connect with the channels that are most used by the millennial consumer base.
The aforementioned strategies if implemented sequentially will be able to connect with consumers on a global basis and bring back the mojo in Brand GAP once again.
References
Barrie, L (2016). New prodcut proceesses help GAP “guess less, fix faster”. Just-style. Retrieved from http://www.just-style.com/analysis/new-product-processes-help-gap-guess-less-fix- faster_id127507.aspx
Monllos, K (2015). The Gap's Biggest Problem Is That It Lost Its Brand Identity. Once effortlessly cool, now everything—and nothing—to everyone. Adweek. Retrieved from www.adweek.com/news/advertising-branding/gaps-biggest-problem-it-lost-its-brand- identity-165367
