1. GAP Marketing Communication Objectives & Budget Allocation -2003 Amy Ashley Kristen Penny Regina

4. In 2001, there 2,298Gap stores in the U.S, and 634 stores outside the U.S.

7. Abercrombie & Fitch

8. Aeropostale

9. American Eagle Outfitters

11. An overlapping of clientele with Old Navy

12. Strong competitive forces

13. No loyal customer base

14. Marketing Communication Strategy

15. Strategy to reach boarder target customers

16. Promotion strategy (Product line versus Brand)

17. Celebrity endorsement

18. Budget allocation

21. Reposition Gap brand

22. Strengthen brand loyalty among older generations (Baby Boomers, Generation X)

25. Strengths Strong Brand Loyalty Baby Boomers Established its identity among Baby Boomers in 1960’s They rebelled against the existing fashion standard Generation Xers One-stop store fos school and casual clothes They grew up with Gap American icon 2,298 stores in U.S. & 2,932 in the world in 2001

26. Weaknesses Weak performance of Gap brand Total domestic sales in 2001 went down by 5% Sales went down in comparable stores by 12% Problems with young generations Low attractiveness among Generation Yers Products and marketing communications Teenagers’ buying behavior Price sensitive and fickle minded No brand loyalty, stables sales, and high cash inflow

27. Opportunities 3 brands Gap Kids and Gap Baby Brand synergy effects Target “whole market” with different price strategies International market To avoid decreasing sales

29. 4 Main competitors

30. Similar target market

31. Gap was rated 4th in Brand Preference in 2001

32. A&F was rated 1st and teens’ most frequent place to shop

33. Reduced apparel demand

34. Household expenditures for apparel decreased by 6%

35. Labor policies in developing countries

37. Perceptual Map Generation Yers is… more price sensitive New Position

38. What is new positioning? Keys High familiarity among Baby Boomers & Generation Xers Reaching the wider age range of target customers How can we target Generation Yers? Basic and season-less product lines “ To Baby Boomers and Generation Xers and Yers, Gapis a brand of apparel that offers basic and a season-less line of clothing.”

39. Adspend Across Store Brands

40. Adspend for the Gap Forecasting Advertising Elasticity Coefficient Adspend projection (2003): $128.4 million

41. Media Allocation 2003 (2001)

42. Media Allocation (cont’d) Primary Media TV (60%) High-involvement and transformational TV is the top selection to build brand preference

44. Competitive forces (A&F, J. Crew, J.C Penney)

45. Experimental phrase of catalog

46. Online ads (1%)

47. Competitive forces (J. Crew & AE)

48. To reach Generation Y consumers

49. Outdoor ads (12%)

50. To avoid direct media competitionMedia Allocation (cont’d) Secondary Media Magazine (22%) Detail information provided (take out of newspaper because…) Outdoor ads (12%) Catalog(5%) Online ads (1%) 16-18 y.o

51. Reach Pattern TV, Magazine, catalog and outdoor Seasonal Priming Pattern

52. Reach Pattern Online Blitz Pattern

53. Media Selection

55. Younger generation is image-oriented; they care about the overall idea and feel of the brand.

57. Recognizable and timeless

58. Image of effortlessness and individuality

59. Older generations will recognize and identify with the message

61. Gap is an iconic brand

62. Celebrities contribute to brand recognition

64. Creative Briefs and Exhibits (cont’d)

65. Creative Briefs and Exhibits (cont’d) Action Objectives Reposition Gap brand Strengthen brand loyalty (Baby Boomers, Gen. Xers) Building brand preference (Gen. Yers) Goal: Increasing income by 6% & maintaining 2.8% market share after campaign

66. Creative Briefs and Exhibits (cont’d) Communication Objectives Category need—Remind Brand awareness—Brand recall Brand preference—Increase to strong preference Purchase facilitation—Seasonal sales notification with customer database

67. Creative Briefs and Exhibits (cont’d) Positioning Statement To multiple generations, Gap is a brand of apparel that offers basic and season-less line of clothing. Key benefit is a strong brand image which is intensely recognizable and resonated.

68. Creative Briefs and Exhibits (cont’d) Mandatory Content We recommend reinforcing a customer care service for heavy customers to increase volume of sales per customer.

70. Alternative Suggestions Highlight separate product lines (Basics, classics, Gap jeans, Gap khakis) Target Audience: Baby boomers Generation X Generation Y Target Audience: Baby boomers Generation X

71. thank you