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

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

2. 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. Background information

3. 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. Current Climate and situation

4. 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. Target Customer

5. 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 Competitors

6. 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 Competitors

7. American Eagle Outfitters, Inc. • Est. 1977 - Novi, Michigan • 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 Competitors

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

9. SWOT ANALYSIS OPPORTUNITIES THREATS • Penetration of e-commerce • Global new markets in Europe and China • Ability to take advantage • of other companies trend mistakes • 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)

10. 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 Image Issues

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

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

13. Fast Fashion Industry Changed

14. 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? Comprehensive Strategies

15. Tactical Execution Plan • No more brand expansion • Less breadth, more depth! • Focus on fit and “wardrobing”

16. Tactical Execution Plan • 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

17. Tactical Execution Plan

18. Tactical Execution Plan • The Store- what should change?

19. Tactical Execution Plan • 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

20. Tactical Execution Plan • 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.

21. Tactical Execution Plan • 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