Gap Inc.'s Marketing Strategy

Paper Summary:

This paper analyzes The Gap Inc.'s marketing strategy and how successful it has been for the company. The strategy's attempt to make middle-class clothes available to the lower classes at Old Navy; solid middle to upper-middle class-type clothes at struggling middle-class prices at The Gap, and yuppie/upper-middle-class-level clothing at solid middle-class prices at its "high-end" store, Banana Republic, is discussed, as well as how this strategy has effected The Gap Inc.'s sales, profitability, cost-saving measures, and advertising campaign.

From the Paper:

"Because retail space is one of the largest components of a company such as Old Navy's cost, market segmentation makes plain sense: Old Navy stores tend to be large and in strip malls whereas Gap stores predominate in malls. In this manner, Gap, Inc. is able to rent or purchase retail space more effectively as incomes are highly correlated with geographic factors and pedestrian traffic in places such as shopping malls. Demographic factors also play into the location of Gap Kids and Baby Gap outlets; these are more often than not found in malls where middle class families may stroll and browse shops in a comfortable attitude of relative safety."

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