In class on yesterday we talked about the Gap and how the company's brand equity has been on the steady decline in the past couple of years. We credited their continued demise to the fact that their core customer the middle class consumer is thinning out and becoming non existent. I agree that their target customer may becoming small, but there are some ways that the company could improve its products in order to regain a better position in the marketplace.
The first improvement I believe the Gap could make is to establish differentiation between itself and it's competitors in the marketplace. There have been many times when I have found an identical garment in Old Navy and the Gap. The Gap needs to look at what their competitors are doing well, stores such as Express and The Limited. The stores sell more of a lifestyle geared to the middle class consumer. Though their target price point is middle class, consumers of many economic classes are drawn to their products because they feel the products are differentiated from those of other retailers and portrays a lifestyle they wish to attain. The Gap has failed to differentiate themselves at all.
I believe that the Gap could become much more of a success if they try to differentiate their products with maybe a more fashion forward design. They also could benefit by promoting a certain lifestyle to be associated with the consumer. Portraying exactly whom they choose to target. With these improvements I think that the Gap will have a long future as the flagship store of its company.
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1 comment:
there is never just ONE reason why brand sales starts declining. especially one as big and strong as gap.
the target market thining was just one reason. i agree with you, they also differentiate and stand out in the market place. i don't think people are not visit gap. i think they just more often come out empty handed.
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