She found that total sales to distributors for the first five months were 74 boxes against a first-year target of 1, boxes.
Gap retails casual apparel, accessories, and personal care products for men, women and children through more than 3, stores in the United States, Britain, Canada, France, Japan and Ireland. Though this industry is in the mature stage of the industry lifecycle and is very saturated.
With industry trends of value driven consumers, competition is also high for this industry; the company still leverages its large network of physical stores to improve margins, enhance its brand image and target new markets.
With more than stores outside the U. This business proposal is to evaluate the feasibility of developing Gap Inc. Porter's Five Forces model is also applied to analyze the attractiveness of the industry. Industry and market analysis show the growth rate in both retail sales and spending power of Chinese people which strongly support the feasibility for the company expanding to China.
After summing up the findings and analysis, ways are suggested on how Gap Inc. Market analysis According to the National Bureau of Statistics NBSthe total retail value of clothing, shoes, hats and textiles by wholesale and retail enterprises above designated size in grew nominally by Inthe nominal retail value growth slowed to We can see that there is a larger room for Gap Inc.
Inper capita disposable income of urban households increased by 8. Urbanites on average spent According to the NBS, in the first to third quarter ofper capita annual expenditure on clothing per capita was Among the 3, respondents, the average spending on apparel from the fourth quarter to fourth quarter was 2, yuan.
The average spending in each city was directly proportional to the level of disposable incomes in that city. We can see that the continuously increasing spending power of Chinese consumers and the affordability of mid- to high-end apparel segments in major Chinese cities.
Threats of substitute products Firms in specialty apparel or leisure and casual wear compete with firms that provide other substitutes such as athletic footwear and apparel.
Many younger consumers are turning to sporting good textiles and footwear as substitutes for other types of casual dress.
The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases.
Substitutes are a threat because they are in an attractive alternative product or service, which customers can easily shift to if there is low switching costs.
The availability of substitutes invites customers to make price, quality and performance comparisons. Competitively priced substitutes impose a maximum value on prices relevant industry can charge for its products or services. There is intense competition, fashion trends, and price conscious consumers that have slowed growth of the company.
This creates difficult situations for companies to produce a brand image that appeals to consumers that want to shop for cheaper apparel, but also apparel that has quality. It is not only offers a range of wardrobe essentials for men, women, and children such as T-shirts, hoodies, great-fitting pants and denim but also nursery gears for mothers and babies.
The large product ranges attracts many different kinds of consumers and enhance the recognition of the brand.
Product adaptation is necessary when a middle class American foreign brand going to Asia countries especially China.Gap Inc Essay Product/Service Gap Inc. is an American clothing and accessories retailer based in San Francisco California. The company was founded on August 21, by Donald and Doris Fisher.
PEST and SWOT analysis, and also analyze the marketing strategy. Read More. Words 14 Pages. GAP INC, A Case Study Essay.
McFit Marketing Strategy Plan MKT/ December 19, Introduction Selling protein shakes is a very viable business in today’s day and age due to many individuals becoming more health conscious.
In the effort to live healthier lifestyles as it pertains to an individual’s diet, it is important to be consistent with. One of the major problem is the marketing strategy, especially in the global market.
GAP had a poor marketing strategy at the international level as they thought they could apply uniform merchandising and marketing in all its stores around the world. Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
This will be done by highlighting the social influences that influence the Gap, Inc. marketing strategy, segmentation strategies with respect to distinct retail markets, and positioning strategies that can be used or changed in a retail setting, as requested in the course assignment (as cited in the course module).
As a result, Gap has lost some of its prominence and power in the retail clothing market to other international competitors.
It is necessary for Gap to revitalize their product line and company in order to fend off competition both domestically in North America and abroad.