Gap New Segmentation Integrated Marketing Plan for ADV 826. This proposal includes industry overview, competitors force, SWOT, Positioning, Target Audience, Advertising & Promotion Plan, Budget and Evaluation.

2. Introduction
Repositioning
Advertising
&Promotion
Evaluation and
Improvement
Achieve Goals
and Objectives
1. How to tell the customer Gap already expanded their product line to meet
more customers’ needs.
2. How to promote and advertise Gap products to the wide age range of
customer segmentation.
3. How to attract teenagers and young adults (Generation Y) to shop at Gap, and
ultimately turn them into loyal customers.
4. How to bring those middle age adults (Baby Boomers, Generation X) back to
Gap and become loyal customers again.

3. Background & Issues
1. Poor sales performance
2. Target segmentation/Positioning
- Failed to meet Generation Y’s needs and wants
- Blurred positioning: compete with Old Navy

4. Background & Issues
3. Poor sales performance Leadership
- The absence of a strong leadership
4.Marketing communication strategy
- How to reach their new target audience
- Promote Gap as a brand or core product line
- Celebrity endorsement?

5. Industry Overview & Competitors
Apparel Industry
• Four Formats:
 Mall-based specialty store,
 Mass merchant or promotional department store,
 Traditional department stores,
 National chain stores
• Sale Performance:
 2001 is increased by 1.3% from $182 billion in 2000.
Sales keeps grow in coming year
27% of apparel sales comes from the specialty stores

6. Industry Overview & Competitors

7. SWOT

8. Target Audience
Strategic Marketing Plan Recommendation
 Customers aged between 15 to 55.
Generation Y
Brand Switcher
Price Sensitive
Fashion Sensitive
Generation X and Baby Boomers
 Brand Loyal
 Special connection with Gap
 Prefer basic and classic design, esp, semi-casual

9. New Positioning
Strategic Marketing Plan Recommendation
To Gap target customers aged between 15 to 55, Gap is the brand of
apparel retailers that offers the customers the classic, fashionable and
affordable clothes that meet their different needs and exceptional value.

10. Objectives
Strategic Marketing Plan Recommendation
Stop the negative growth in sales
Increase domestic sales by 15% during fiscal year 2003
4.4
4.6
4.8
5
5.2
5.4
5.6
5.8
1999 2000 2001 2002 2003
Forecast
Ideal

11. Objectives
Strategic Marketing Plan Recommendation
Maintain the market share 2.8%
Repositioning the overall Gap brand
Win back the Baby Boomers and the Generation Xers
Increase /strengthen the brand loyalty of Generation Yers

12. Advertising Plan
Strategic Marketing Plan Recommendation
Advertising Objective:
Build Gap new brand image through advertising by differentiating
Gap from other competitors and avoid cannibalization internally with
Old Navy.
Recall the image of “American icon” among old generations (Baby
Boomers and Generation X) in order to win back and reinforce their
brand loyalty.
Emphasis “Classic is the new fashion” among young generations
(Generation Y), and gradually help them build brand preference with
Gap.

13. Advertising Plan
Strategic Marketing Plan Recommendation
Message Strategies——High-involvement Transformational
Gap as a brand & Individual product lines.
By adopting affective strategies, we came out three taglines ：
“Back to Classic” ——Brand image. (version 1).
“Classic is the new fashion” Gap Basic product line.(version 2).
“Welcome back, old sport” Gap Classic product line. (version 3).

15. Advertising Plan
Strategic Marketing Plan Recommendation
Media selection
 TV
 Outdoor
 Print
 Online

16. Promotion Plan
Strategic Marketing Plan Recommendation
Consumer Promotion
(1)Coupon
Free sample give-away coupon
Discount Coupon
Time-limited price-off coupon
“Birthday gift for you” VIP coupon
(2)Premium: Membership Program
VIP only free- gifts
VIP Coupons
VIP exclusive event invitations
Seasonal Gap magazine

17. Promotion Plan
Strategic Marketing Plan Recommendation
Consumer Promotion
(3)Contests:
“Gap and I” Photo Contests
(4)Events Promotion
Gap Fashion Show
In-store VIP Appreciation Night
In-store Party
“Welcome Home Old Sport, Come to Join Us, New Dude!”

18. Promotion Plan
Strategic Marketing Plan Recommendation
Retailing Promotion:
-Store layout:
Separate Gap Basic and Classic
End-cap marketing
Feature ads
-Store atmosphere:
Store Music

19. Promotion Plan
Strategic Marketing Plan Recommendation
• Public Relations:
Corporate Social Responsibility (CSR)
 Human Right(labor issues)
• Press Release

20. Media Allocation & Media Plan
Strategic Marketing Plan Recommendation
TV-60%
Magazine-18%
Outdoor-12%
Catalog-7%
Online-3%
Sales of Gap follows a seasonal pattern, and reach its peak before holiday season
Seasonal Priming Pattern
Media Allocation

21. Budget
Strategic Marketing Plan Recommendation
2001 2002 2003
Sales(billion) $5.2 $4.9 $5.65
Adspend (million) $102.3 $88 $125*
Advertising/sales
ratio
1.97% 1.80% 2.21%
* Based on the advertising elasticity coefficient for durables, an
increase of 15% in sales for 2003 would need an adspend increase
of 41.7% over the 2002’s, which would be $125.

22. Evaluation
Strategic Marketing Plan Recommendation
Panel survey
- Measures: Brand recall & recognition, brand preference,
brand action intention, brand promoted ad recognition and
recall
- Time: before the campaign, 6 months , and 12 months
Focus group
Sales and market share

23. Thankyou!