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Marketing Plan

By: Tara Seitler

The Gap Company

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Agenda

Current Marketing Situation•Market Description•Product Review•Competitive Review•Distribution Review

SWOT Analysis•Micro-environments•Macro-environments

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Current Marketing Situation

Market Description•Target Market•Market Targeting strategy•Value proposition – The Gap Company•Consumer behavior•Buyer decision principles

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Target Market• GAP is a brand-builder. • We create emotional connections with customers around the

world through inspiring product design, unique store experiences and compelling marketing.

• It’s goal is to simply make it easy for customers to express their personal style throughout their life.

• GAP hoped that effective Web initiative could let company to solidify its brand, improve customer relationships, serve markets that could not support a store and cut costs.

• Company also believed that going online would attract new customers and steal market share from competitors.

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Target Market- Segmentation

Target Section of Market• Residential, • Non-residential,• Mobility and • PersonalBuyers Category• Upper middle and upper class individuals

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Marketing Strategy• Marketing objective is to create a perception in the mind of

the customer about the product. • Build image of product as a different product through

adopting the strategy of differentiation of porter• Restructure the business

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Restructure Business

• Transform business management focusing on from quantity to profitability

• Reduce fixed cost and downsize business structure to fair size• TV set business

• Product• Create competitive products on its strength

• Cost structure• Thoroughly improve cost structure

• Restructuring• Completion of domestic sites integration and acceleration of

overseas sites restructuring

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Pricing Decision and Strategy• Keep Retailer and Customer pricing strategies different• Captive Product Pricing• The company makes its pricing strategies by having the

knowledge of its competitor`s pricing• We can include USB connectivity devices• We can include Home Theatre along with• The prices of these accessories are kept relatively than other

brands.

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Sale Strategy• Sale Strategy - Sale Through

Manufacturer whole seller/dealer consumer

• Sale Out (Sales To the retailer)Manufacturer (company) Authorized Dealers

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Value Proposition • They are predicated value proposition from the mindset of your customer

base. • The ultimate goal is to bridge that gap and come up with a value

proposition that truly defines your company’s core competencies. • Process is much easier when you take the time to define how your

customers see your enterprise. • Start by defining your company from your own viewpoint. • Outline the benefits of acting, versus the consequences of doing nothing. • Focus on those strengths you want to accentuate, versus those weaknesses

you want to eliminate.• Finally, put a plan in motion to redefine your company’s value proposition

and make sure your team adopts it as their own doctrine.

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Consumer Behavior

• Characteristics affecting consumer behaviour: ▫Cultural Factors

Buyer’s culture Buyer’s subculture Buyer’s social class

▫Social Factors Reference groups Family Roles and status

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Consumer Behavior ▫Personal factors

Life Style - A person pattern of living Occupation – Capability to afford SMART TV and

PLASMA TVs▫Psychological

Motivation Perception Learning

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Buyer Decision PrinciplesComplex Buying Behavior:• Purchasers are highly motivated when:• Product is expensive• Product is risky• Product is purchased infrequently• Product is highly self-expressiveDissonance Reducing Buying Behavior:

• It occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands.

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Buyer Decision Principles

Habitual Buying Behavior:• It occurs when consumers have low involvement and there is

little significant brand differenceVariety Seeking Buying Behavior:• It occurs when consumers have low involvement and there are

significant brand differences

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Current Marketing Situation

• Product Review▫Levels of product/service▫Type of product/service▫Product/service life cycle▫Benefits/features analysis▫Differentiation▫Branding strategy

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Type and Level of Product/Service• Level

▫ With respect to our product, market segmentation are as follows:▫ GAP decided to use multichannel strategy.▫ Company saw its bricks-and-mortar stores not as an impediment, as

many Internet pure-plays liked to assert, but as a key asset that it could leverage to give consumers a complete shopping experience:

• Type▫ Type of our product is Speciality.▫ It is not necessary for all▫ Not everyone can afford it▫ Only special people (brand & technology conscious) can buy it

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Product/Service Life Cycle and Benefits

• Customers compare the service they 'experience' with what they 'expect' and when it does not match the expectation, a gap arises

• Product/Service Life Cycle▫5 to 7 year of life cycle with terms and condition▫One year manufacturer and service warranty

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Differentiation and Branding Strategy

Promotion mix of our brand/product is define bye the two processes

◦ ATL and BTL

ATL (above the line)

◦ promotional activity done by the company through mass media

such as radio, TV, print media, etc.

BTL (below the line)

◦ promotional activity used by the marketer to target specific

market or exhibition in any store or Mall

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Current Marketing Situation

• Competitive review▫Competitive analysis▫Market share▫Competitive positions and roles▫Strategic sweet spot▫Positioning

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Competitors• There are many competitors of the Gap Corporation.• Large market of retail stores• Abercrombie and Fitch; Limited; Express; American Eagle, etc.• Comparing Gap to the competition: Last month all retail sales were down. Gap sales were down 3%

however comparable stores were down 6%Web initiatives would attract new customers and steal market share from competitors.

Opportunity to solidify company’s brand, improve customers relationships and serve market that could not support a store.

Going online also opened opportunities to cut costs in selling and support services, service and operations, property and equipment.

Retailers could sell more if they reached consumers through multiple channels.

Offline retailers such as GAP could allay fears to buy online, whereas Internet-only competitors could not.

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Market Share

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Market Sales by Region

Japan50.0%

China10.4%

Asia12.3%

Europe13.4%

Latin America 2.0%

North America11.9%

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Current Marketing Situation

• Distribution review▫Current supply chain members and roles

Members – Manufacturers, Suppliers, whole retailers, customers

• Roles▫Suppliers – supplies the product▫Manufacturers – Build the product▫Wholesale retailers – Sells the product▫Customers – End Users of product

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SWOT• Microenvironments

▫Analysis of competitors, customers, supply chain, public and finance.

• Macro-environments▫Defines position and direction for organization or business

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Micro-Environment

• Suppliers• Marketing intermediaries

▫ Resellers of the products• Different Departments of company

▫HR, Marketing, Production, Sales and other• Competitors

▫Discussed in competitive Analysis

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Macro-Environment• The major portion of the company’s macro environment

includes “Demography”.• Demography refers to studying human populations in terms of

size, density, location, age, gender, race, and occupation. • Very important factor to study for marketers and helps to

divide the population into market segments and target markets.

• Political environment▫ all laws, government agencies, and groups that influence or

limit other organizations and individuals within a society• Economic Environment

▫purchasing power of potential customers ▫ways in which people spend their money.

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SWOT AnalysisSTRENGTHS WEAKNESSES

•Technological innovations and product development capabilities

•Leading market position garnered on strong brand equity

•Broad product portfolio

•Strong workforce of over 300,000 people

•Among top five TV producers

•Excellent top of the mind presence due to advertising and sponsorship of events

•One of the largest Japanese electronics producers, alongside Sony, Toshiba and Canon

•High leverage combined with revenues and profits decline

•The brand faces intense competition from leaders and also faces trouble from fake replicas

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SWOT Analysis

Opportunities Threats

Focus on eco-line products to drive future growth

Emerging markets of Asia and Latin America presents business expansion opportunities

Growth in semiconductor market

Intense competition

Rapid technological changes

Competition with black market, parallel import and smuggled goods Japan’s 2011 earthquake and tsunami’s impact on the company’s operations

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References

• Thomas, D. J., et. Al. (1996). Coordinated supply chain management. European journal of operational research, 94(1), 1-15.

• Lu, W., Li, H., Shen, L., et.al.(2009). Strengths, weaknesses, opportunities, and threats analysis of Chinese construction companies in the global market. Journal of Management in Engineering, 25(4), 166-176.

• Lambin, J. J. (1976). Advertising, competition and market conduct in oligopoly over time. Amsterdam: North-Holland.

• Liu, J., Cao, Y., Lin, C. Y., Huang, Y., & Zhou, M. (2007, June). Low-Quality Product Review Detection in Opinion Summarization. In EMNLP-CoNLL (pp. 334-342)