Gap: Profile of an Advertiser

Branding, Section 51

Prepared for: Professor Stashower

Prepared by: Team 2
Antonietta Bovenzi
Therese Clancy
Alexa Kempton
Schasia Modrzynski
Maria Pangori
Brand History and Description

Thanks to Don and Doris Fisher, Gap is one of the most recognizable brands in

our country today. This couple decided to open a store of jeans and music solely

because Don could not find a pair of pants that fit him correctly. Considering the two

main products their store was to sell, Don Fisher planned on naming the store Pants

and Discs. However, it was then Doris idea to name the store after the generation gap

of the Silent Generation and the Baby Boomers. The Fishers strategically placed their

store between two colleges and a high school. They wished their simplistic brand of

jeans and music would attract 12-25 year-olds. Ever since its first location in San

Francisco, California, Gap has been an American classic.

By 1972, Gap had acquired about 25 stores across the country, and a short

seven years later, they acquired about 400 stores across the country. Gaps Fall into

the Gap jingle was the first ground-breaking advertisement that grabbed attention and

admiration from their public audience in 1973. This rapidly-growing company extended

their brand by developing Gap Kids in 1986. Just a year later, the brand went

international by opening a store in London.

Throughout the last 40 years in business, Gap Inc. has acquired five of the most

recognizable brands in the clothing industry: Gap, Banana Republic, Old Navy,

Piperlime, and Athleta. Through these brands, the company has expanded their

audiences, mission statements, and most importantly - sales.

Gap created a non-profit charitable organization, Gap Foundation. The Fishers

original plan for the Gap Foundation was to do more than sell clothes. Their goal was

to support the communities where they had their business. Now, Gap Inc. supports non-
profits organizations across the country, with a focus on developing youth programs to

better their career opportunities and work skills in their communities.

According to the Gap Inc. website, Gap creates a classic, effortlessly cool and

casual line of clothing, and continues to reach out to their audiences to supply that. The

brand and attitude start with their company mission statement. American Optimism is

a term they use to define their attitude. Other words they use to describe their brand

and attitude of Gap Inc. include, clean, comfortable, modern, and classic. They wish to

maintain these simplistic values, yet allow their audiences to have their own individual

style with a youthful, infectious spirit.

Communication of the Brand

Creating an identity for Gap has been difficult, and therefore communicating that

unclear identity to the consumers has become even more troublesome. As it is an old

company, Gap has seen its high and low points throughout its time.

The scope of Gaps advertising has shown dramatic changes throughout history.

Only until recently, the marketing team understood the importance of advertising and

managed to incorporate many campaigns that have benefited the company. Taking a

look in the past, some predominant and notable ad campaigns of Gap have helped the

company in its success. Throughout the 90s, Gap was known for their catchy song and

dance commercial ads that managed to stick with the viewers. A perfect example of this

would be the memorable Khaki Swing commercial. The clean cut and diverse dancers

highlighted the fact that Gap is for everyone. The past commercial ads have also

seemed to focus on a particular item within the store. From khakis and leather to vests,
Gap touches specifically on these deals of the season. Since 2009, Gap took a break

from television advertising but still seems to utilize their tactic of celebrity endorsement.

In more recent campaigns, it is more obvious with how Gap has lost touch with

its brand identity. The Dress Normal campaign shows its attempt to gain their special

advertising touch again but it seems that this 2014 campaign just caused confusion and

controversy. The campaign features celebrities such as Anjelica Huston, Kate Moss,

and other well-known stars in ads and commercials telling you to dress normal. This is

a risky statement in todays time. Normal was in interesting word choice for this

campaign which can come off as narrow-minded and even offensive.

The Internet has revolutionized how a brand is communicated. Within the past

few years, Gap was sure to jump into the social media craze. Analyzing their social

media statistics and content, it is clear how much of an emphasis Gap is placing on this

aspect of communication. With daily postings and a lot of interactivity on twitter, Gap

has managed to hold a huge following and succeed in the social media aspect of

communicating. In 2012, Gap Inc. generated a social media policy that happens to go

over the strict guidelines that the company enforces with its employees. Starting to

utilize social media, the company wanted to make sure that they were doing everything

right.

When reviewing Gaps Twitter account, it is noticeable how engaging the page is

with customers. Answering individuals questions and providing customer support is

giving Gap a personable image to the company. This approach to social media

deserves praise and can only help Gap continue to communicate with their target.

Taking a look at Gaps Instagram, a culture-focused photo approach seems to be

implemented. Trendy and fresh photography skills are being used and eliminating the

fact that Gap is a retail store that is trying to sell. Followers will see this page as more of

a lifestyle and fashion page opposed to an online retail outlet. No one goes on

Instagram to shop and Gap seems to understand that. Besides these examples of

Gaps social media, they seem to have jumped onto other platforms as well. From

Pinterest and Facebook to Tumblr, Gap isnt missing out on this era of social media.

Competitive Arena of the Brand

In the late 1980s to early 1990s, Gap really hit its peak for popularity defined by

their classic denim, basic shirts, and Khakis. Today, Gap is getting a hit from brands that

are defining new basics. This new basic seems to be fashionable, high quality basics

sold for less.

Because luxury is booming in todays fashion world, Gaps main competitors are

the chic and cheap foreign fast-fashion brands including H&M, Uniqlo, and Zara. In the

80s and 90s, higher-level fashion wasnt as easily accessible, so Gap did very well with

only selling the core staples of fashion. But, from the time that Gap began to struggle

with sales (starting in the early 2000s) into today, fast-fashion has become increasingly

popular. Gap is considered out-dated because the fast-fashion brands sell staples and

basics in addition to clothes that are in and trendy.

A. Fast Fashion Competitor: Uniqlo

In 2005, during the period where sales began to plummet for Gap, the retail

Japanese company named Uniqlo came to the United States. Uniqlo sells trendy

basics, therefore targeting a similar audience as the Gap. However, Uniqlo was and is

considered more trendy and fashionable than Gap. Designers and celebrities like Jil
Sander and Pharrell Williams have even designed collections for Uniqlo. Shoppers were

attracted to Uniqlo because they could get the same basic and casual product that Gap

sells but at a cheaper price. Uniqlo is still developing in the US, but in the fiscal year of

2014 has made $16.6 billion sales worldwide compared to Gaps sales of $16.4 billion.

B. Fast-Fashion Competitor: H&M

H&M stated in Sweden in 1947 and came to the United States in the year 2000.

H&M have all the basics that Gap has, however, H&M is not seen as outdated like Gap

because they get new styles shipped into the stores on a regular basis. This up to date

fashion attracts customers more so than the outdated Gap fashion.

H&Ms attraction to getting both the basics and new styles is shown in their sales.

Even though H&M has fewer stores in the U.S. than Gap, Gap has lost a huge amount

of sales from their retail stores in the US and Canada. Most recently in the fiscal year of

2014, H&M global sales were $20.2 billion while Gaps global sales were $16.4 billion.

C. Fast-Fashion Competitor: Zara

The Spanish-based retail brand Zara can be described as the cheaper version

of runway trends. Similarly to Uniqlo and Gap, Zara had basics that were considered to

be fashionable when compared to Gaps basics. For the fiscal year of 2014, Zaras

sales worldwide amounted to $19.7 billion, while, again, Gaps sales were only $16.4

billion.

D. Other Competitors

Although H&M is considered Gaps biggest competitor, one of Gaps problems

with competition is that many companies even outside of the fast-fashion companies

sell the basics and classics: plain color t-shirts and v-necks, jeans, and khakis. Also,
Gap having no brand identity has lead to Gap having tons of competitors. Gap is so

confused on what it is trying to encompass in their brand that almost any retail store can

be considered its competitor. Discount retail stores like TJ Maxx and Marshalls are

competitors because you can find what is at Gap and more. Even Target is seen as

competition for Gap because, again, Target sells the basic plain t-shirts just like the

Gap. Forever 21, American Eagle, Aeropostle, Abercrombie, and J. Crew are also seen

as competitors. Even though they target different consumers, they all sell the basics.

Overall, when shopping at Gap, a customer really only goes into the store for one item.

At all of Gaps competing stores, the basics are there and are usually cheaper, and

there are other new trendy clothes. In todays world, many people strive to be different

and the way they dress is a statement of their personality and their own self. If everyone

were to buy just Gap, everyone would dress normal and uniform. The variety of

selection that other stores have is what is hurting Gap the most.

E. Online Competitors

It is important to also realize that the online shopping world is considered a

competitor of Gap. Buying the basics online is the easiest because what you see online

is what youre going to get. If you order a white v-neck, you will receive exactly what you

expect. However, buying more fashionable apparel is more difficult online because you

dont really know the fit, the material, etc. Online sites often are cheaper as well.

Overall, Gap has a wide range of competitors because there is nothing exciting

anymore about overpriced basics. All of Gaps competitors sell cheaper basics plus

what is in and trendy, which are largely hurting Gaps sales.

The Virtuous Circle

The virtuous circles includes love and interest of the product, then moves to

obtaining the product, and last is the fulfillment you feel after you obtain the product.

Gap has broken its virtuous circle in recent times.

Gap has always been the comfy, basics brand. Known for their cool jeans and

khakis, everyone wanted to be like someone who wore Gap. This first step of the

virtuous circle has been broken. People arent in love with Gap anymore, which begs

the question, How could you be in love with something that doesn't even know who

they are? Gap has lost their identity, their target market, and therefore their virtuous

circle is broken.

Gap used to target customers in their twenties and early thirties. In the 1990s

Gap was the trendy brand to wear, and all the cool kids are wearing it. They reinvented

advertising with their swing commercials and were on top of the market. If Gap does not

define what they stand for, their virtuous circle will not be repaired. Gap was successful

in creating their off brands such as Banana Republic, Old Navy, Atheta, and Intermix. It

seems in creating these successful brands they lost what it meant to be Gap. Since Gap

doesnt know what target they are going after, this is causing confusion and loss of loyal

consumers.

Obtaining the product is as easy as it could be, this part of the circle is not a

problem for the brand. A consumer needs to feel something when buying the product.

The customer needs to feel some emotion when he/she have the Gap sweater in hand,

walking up to the register. This is a fulfilling feeling creates loyalty and love for the

brand. This love will make the consumer want to come back creating brand loyalty.
 All in all, Gap broke their virtuous circle in their initial interest and love of the

brand. No one will love the brand if the brand doesnt know who they are trying to get to

love them. In order to fix this cycle, Gap has to figure out their brand and who they are

trying to brand themselves to, and then create a loyalty and love for the brand again.

Evidence of Entrepreneurism

Don and Doris Fisher opened Gap with a specialty product to sell to 12-25 year

olds. The integration of music into their store helped to attract teens and young adults to

their store. By broadening their market to the Silent Generation and Baby Boomers,

they were more likely to be successful in the clothing industry.

The store started by selling Levi jeans in almost every size, shape, and color.

After expanding the franchise to 400 stores across the United States by 1976, Fisher

started to focus solely on clothes. By this time, Gap started to make their own line of

jeans, while expanding into other articles of clothing as well. In 1983, Mickey Drexler

became CEO of the company. His new vision for Gap included more trendy clothing, a

cleaner store layout, and a more effective advertising strategy. These three elements

turned Gap clothing into the new American-cool clothing store.

Although the company focused on clothing, they never lost their roots to pop

culture. Mick Jagger was seen wearing a Gap t-shirt, making this article of clothing a

success across America. When Gap Inc. bought Banana Republic and created Old

Navy. Each of these stores would have their own vibe, target market, and specialty to

the American customer. Due to this merger, the company earned one-billion dollars
within four years. Gap Kids and babyGap were soon introduced, expanding their

clothing lines and position in the market.

In 1988, Gap came out with their famous logo; the navy square with simple,

white, serif, capital-lettered name GAP. Fast-forward to 1990-1999, the company

earned $11.6 billion dollars in sales. Gap commercials featured celebrities in Gaps

everyday clothes. Appearing in television shows, movies, and commercials, Gap

continues their roots in culture by being a staple in the American-closet.

In the late 1990s, Gap introduced Khakis into their company. Gap supplied

traders of the New York Stock Exchange with Casual Friday, a uniform that consisted

of Gap Khakis on Wall Street. Their campaign aimed to make Khakis an everyday,

casual wear. This could have been a mistake; stock traders on Wall Street were known

to be some of the wealthiest individuals in America. By allowing them to be the models

of the new Khaki campaign, it could have given the wrong image to the middle-class

customer; if NYSE Traders were preferring Gap Khakis to other brands, they might be

seen as expensive or a luxurious item.

In 2001, the company posted an eight-million dollar loss, so Paul Pressler was

elected the new CEO to the company. They paid off their debt by re-introducing

celebrities and pop culture into their ads, with Madonna and Missy Elliot.

A few months before the holiday shopping season of 2010, Gap stunned

customers by changing their logo overnight. By this time, Gap was an active member in

social media, which gave Gap customers a platform to express their opinions about the

change. The responses from Gaps customer base were anonymously negative. The
black, bolded, sans-serif font with a small, blue fading square in the right-hand corner of

the logo looked cheap.

Gap officials responded to the controversy by asking the public their ideas for the

new logo. Not only did they receive hundreds upon thousands of ideas, it turned off

designers that worked on the logo as it was seen to undermine their expertise. Gap

quickly retracted the statement, and just six days later, reinstated the logo. Luckily for

the brand, no apparel was printed with the new logo. In 2011, they again went back to

pop culture to promote their brand. Glee was used as a platform to reach their ideal

demographic: 12-25 year olds.

Four years after not producing commercials, Gap came back into the commercial

scene with commercials featuring their Dress Normal campaign. After their rocky

attempt at refreshing their brand image, Gap is at a standstill while they determine what

makes them different from other clothing retailers.

Predictions for the Brand

As a group, we are worried the brand isnt connecting with their audience. Gap

could go out of business if they dont reconnect with the Millennial and Generation X

consumers. If they are able to reestablish a relationship with their customers, they will

be able to make it during this rough patch in the companys history. If Gap continues on

the way they have been, the company wont make it out of this generation. They are

going to be beat out by their competitors. It needs to capture an image that represents

the brand as a whole in order to cater to all of its target audience.

Next Step for the Brand

The next step for Gap needs to be solely focusing on the brand. Reverting back

to old ways of effortless and simple clothing would alone help Gap in many ways.

Instead of the Dress Normal campaign, they should have done something along the

lines of, Be Unique. In the era of Hipsters and individuality, these layers of clothing

could be staples in everyones closets. Reducing promotion on product lines and

implementing a simple branding approach will drive brand loyalty and help Gap become

what it once was.

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