NATIONAL INSTITUTE OF FASHION TECHNOLOGY, KANGRA

MARKETING OF FASHION

ASSIGNMENT-1

MARKETING MIX OF GAP Inc.

SUBMITTED TO : SUBMITTED BY :
Mr. Saurabh Chaturvedi Drishti
Snigdha Mahajan

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 Acknowledgement

Any attempt at any level cannot be satisfactorily completed

without the support of all those who have directly or indirectly
helped me in this assignment. I would like to express my immense
gratitude to Mr. Saurabh Chaturvedi who provided me the
opportunity to come up with this assignment.

A special thanks to the all those who rendered their whole

hearted support to all times for the successful completion of this
assignment.

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 INDEX…

S.No TOPIC PAGE No.

1. Introduction 4.

2. Marketing Mix of Gap Inc ( The 5-8

4P’s)-

a) Product

b) Price

c) Place

d) Promotion

3. References 9

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 INTRODUCTION

Fig .1.1: Window Display of one of the GAP stores

Gap Inc. is a global apparel retail company that owns Gap,

Banana Republic, Old Navy, Athleta, and Intermix clothing,
fashion and accessories brands. The first GAP store was opened in
1969 by Doris and Don Fisher and today Gap Inc. is the largest
specialty apparel retailer in the North America with 3,721
company-operated and franchise store locations around the
globe. The company has more than 140,000 employees
worldwide (Annual Report, 2015) and its organizational structure
can be characterized as hybrid integrating certain elements of
divisional and hierarchical organizational structures.

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 MARKETING MIX OF GAP Inc. ( 4P’s)

Fig 1.2 : The 4P’s Of Marketing

1. Product

Gap is a popular clothing and accessories brand spread globally.

Gap Inc. provides products in its marketing mix strategy like T-shirts,
jeans, jackets etc for use in daily life, sunglasses for everyone,
shoes, jewellery, perfumes etc. The brand wise products can be
seen as:

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1. GAP: Trendy shirts, t-shirts, denim apparels, sunglasses, etc.,
basically for summer and spring seasons
2. Banana Republic: This is slightly premium segment dealing in
better craftsmanship and luxurious materials. The products include
clothes, sunglasses, accessories, footwear, bags, and perfumes
3. Old Navy: Widespread types of apparels, with target of ‘lower
middle to middle income consumer
4. Athlete: Sports apparel including yoga, tennis, skiing and seasonal
sports.
5. Intermix: Clothing, shoes, bags and accessories

Thus, the wide range of products by Gap Inc, with different brand
names, help target the customers of both mass market and
premium segment.

Fig 1.3: Different Product Range by Gap

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2. Price

In US markets, Gap is the market leader in its segment. Apparel

industry is highly competitive and hence it follows a competitive
pricing strategy in its marketing mix. Gap protects its market share
by optimizing cost for offering reduced prices for quality products.
People buy apparels that are more affordable to them. It
optimized its operations for decreased cost and reduced prices.
The supplier power in this industry is also limited due to many
options available. The new pricing strategy of Gap Inc. integrates
the combination of psychological and product line pricing
techniques. It achieved this through localizing the inventory of its
retail stores. Thus, transportation cost was minimized. Thus, it
maintains its competitive edge for pricing through optimized
operations.

3. Place

Gap has got an extensive distribution network ensuring a strong

presence worldwide. The products can either travel from
company to wholesaler to retail or to the direct Gap stores. There
are 3700+ store locations operated by Gap Inc. itself. Most of the
stores are in USA itself. The retailers use both online channels and
offline channels in integration. Gap allows its customers to shop for
multiple brands on the same site. It has increased its focus over
internet sales channel. Even third party online channels like
amazons, are open for Gap Inc. customers, to buy apparels or
merchandises Customers also have the luxury to find the address
of the nearest store to their location from the official website. One
differentiating factor is that, Gap products even if bought online
can be returned on the stores to increase convenience. It is easily
available brand in most metro cities of the nation’s worldwide.
Although, self-operated Gap stores are less in number (only 20% of
total), the online presence and third-party stores have enabled
Gap’s presence around the world.

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4. Promotion:

Gap Inc. offers various hard and e-gift card which can be used for
buying across all sites and stores. Even online gift cards get
delivered in around 3 days, with the option of personalized
message. Presenting the product in the best way, through
mannequins display or boards and posters with trendy tag lines is
one of the main sales promotion’s techniques used by Gap Inc.
Print and media advertising is very extensive form for promotion. It
is the main tool to deliver message to the target customers.
Magazines are specially preferred by Gap Inc. Gap has used viral
marketing in controversial manner, many times like stationing
support for interracial family through its ads, which caused lots of
discussion around the topic, gaining popularity for the brand
name. These stories attract a lot of attention. Some other tactics
also include organizing competitions and gifting GAP accessories
and merchandise as gifts. Gap’s Athlete brand introduced its Girl’s
apparel line with commercial ads focused around women
empowerment and focusing on ‘Power of She’ to introduce
equality at the most impressionable age of 6 to 14. Hence this
completes the marketing mix of Gap.

Fig .1.4 : Discounts incorporated by the brand for promotion

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 REFERENCES

1. https://www.mbaskool.com/marketing
2. mix/products/17355-gap.html

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