Given these troubles, its not a surprise that Gap management has been trying to shake things up in order to reignite growth. First, Gap tried refreshing its brand image by altering its longstanding logo - this effort turned into a public relations fiasco by causing a significant consumer uproar. Within what seemed like a matter of hours, Gap reversed course and restored its old logo, but not before proving just how out of touch the fashion giant is with its core consumers.
Now Gap is back at it again, trying to put a brand-aid on its sales challenge. Gap announced last week it would refreshen its image as the "People's Brand"
http://www.nytimes.com/2011/04/08/business/media/08adco.html?_r=1
The effort is being led by Gap's new chief global marketing officer, Seth Farbman, a former advertising executive from Ogilvy & Mather Worldwide. Farbman describes the “a people’s brand” positioning as a focus on fun, optimism and value for money.
Hmmm...does this positioning raise red flags to anybody? Thinking about this positioning from both a consumer and marketers perspective "Fun, optimism and value" sounds like the company may be confusion its Gap brand with its Old Navy brand. Doesn't Old Navy owns fun and value (at least in the mind of this consumer)?
So, why is Gap treading on its own tracks? Farbman claims “This is not a five-year turnaround strategy . . . This is a right-now.” Farbman is correct in that Gap needs to “set a clear point of view for the brand”, which it has clearly lost over the past few years; but Gap is losing sight of the bigger picture by not thinking about the longterm equity of both Gap and Old Navy.
I would venture to say Gap has struggled in its consumer positioning for a few reasons. First, Gap over-expanded its brand, which has caused it to lose some of its specialness. Second, as Gap Inc.'s other brands Old Navy (position: fun and value) and Banana Republic (position: sophistication and style), have effectively sandwiched the positioning of the Gap brand in the middle making it harder to find a unique space to own.
To get back to a position of growth, Gap needs to get back too its roots and focus on the basics. Instead of trying to chase what it is not, Gap should embrace what it is - America's brand. What made Gap so iconic in the first place. The positioning should be optimistic and patriotic, with a focus on selling a modern take on the classical American lifestyle (bring on the swing dancing and all) - in summary a middle class version of Ralph Lauren.
The effort is being led by Gap's new chief global marketing officer, Seth Farbman, a former advertising executive from Ogilvy & Mather Worldwide. Farbman describes the “a people’s brand” positioning as a focus on fun, optimism and value for money.
Hmmm...does this positioning raise red flags to anybody? Thinking about this positioning from both a consumer and marketers perspective "Fun, optimism and value" sounds like the company may be confusion its Gap brand with its Old Navy brand. Doesn't Old Navy owns fun and value (at least in the mind of this consumer)?
So, why is Gap treading on its own tracks? Farbman claims “This is not a five-year turnaround strategy . . . This is a right-now.” Farbman is correct in that Gap needs to “set a clear point of view for the brand”, which it has clearly lost over the past few years; but Gap is losing sight of the bigger picture by not thinking about the longterm equity of both Gap and Old Navy.
I would venture to say Gap has struggled in its consumer positioning for a few reasons. First, Gap over-expanded its brand, which has caused it to lose some of its specialness. Second, as Gap Inc.'s other brands Old Navy (position: fun and value) and Banana Republic (position: sophistication and style), have effectively sandwiched the positioning of the Gap brand in the middle making it harder to find a unique space to own.
To get back to a position of growth, Gap needs to get back too its roots and focus on the basics. Instead of trying to chase what it is not, Gap should embrace what it is - America's brand. What made Gap so iconic in the first place. The positioning should be optimistic and patriotic, with a focus on selling a modern take on the classical American lifestyle (bring on the swing dancing and all) - in summary a middle class version of Ralph Lauren.
