Analysis of the Marketing Communications Campaign of GAP - Case Study Example

Introduction It all starts with an idea. A product that has something its competition doesn’t. It is a solution for a problem that has yet to be identified. Gap Inc. started with a solution for the problem of buying jeans, pain free. Once it was an established clothing company it redefined its aim and grew its brand. Initially selling music and clothing, it focussed on clothing alone. Initially focussing on baby boomers, it grew sub brands for other target groups. Initially employing sweatshop workers, it developed its image into a human rights example for the fashion industry. But Gap Inc. had to start somewhere and by identifying the steps of an integrated marketing communications campaign we will begin to see some similarities. Developing a Model Developing a model for a consumer IMC campaign involves a number of steps. These include identifying target audiences, analysing the situation, setting marketing communications objectives, developing strategies and tactics, setting a budget and evaluating the effectiveness of the campaign. For this assignment, we will look these steps in relation to a mock product and a mock IMC model, and compare them with the successful Gap Inc. clothing brand. Product Our mock product, to help us make the developed IMC model clear is titled “non-uniforms”. It is clothing for schoolchildren in western European countries whose schools do not expect students to wear uniforms. If marketed properly, the clothing for schoolchildren will be bought and worn for the same reasons uniforms are worn in schools in the United Kingdom. Only it will not be compulsory and the stock will not be identical. It will be sturdy, basic and strong, cheap, readily available from school and, ideally, promoted by schools. The product is likely to succeed because it is recreating, rebranding and redefining something that is successful in other like countries. According to Articlebase (Sep 2005) school uniforms reduce distraction, promote discipline, reduce fighting and violence, are cheaper and highlight that individuality is not determined by designer clothing. However, the cons are that uniforms stifle self-expression and can be uncomfortable, (Pros and Cons of School Uniforms 2009). Target Group The target group for our non-uniforms is male primary school students, aged six to 10. Analysing the Situation By analysing the situation, we find that male primary school students, aged six to 10 do not purchase or choose their own clothing. Therefore, the target group is the parent or carer who chooses and purchases the clothing. Marketing Communications Objective Our marketing communications objective is to identify or create a buyer’s problem and solve it. One of the target group’s problems is “time”: you don’t have enough to choose your son’s clothing every morning before school. Another is “money”: you don’t have enough money to keep up with the latest trends. All problems should be identified through market research and the best problem will become the focus of the campaign. Once this problem has been identified, non-uniform will be marketed as the solution. According to Kulik (2009), providing solutions is the bottom line of any business and what every corporation and small business strives for daily. Strategies and Tactics The main strategy and tactic of the campaign will be obtaining a great number of schools to support the product. If schools back the project it will be easier to sell the product. School cooperation will be essential if onsite marketing campaigns are part of the IMC. Budgeting Budgeting the campaign is something that will be directly involved with the market response. According to McGraw-Hill/Irwin (2004), the basic principles of marginal analysis are to “increase spending if the increased costs are less that the incremental (marginal) return; decrease spending if the increased cost is more than the incremental (marginal) return; and hold spending if the increased cost is equal to the incremental (marginal) return”. Effectiveness of the Campaign The effectiveness of the campaign will rest on market research, because “thorough understanding of the audience's needs, emotions, interests and activities is essential to ensure the accuracy and relevance of any message”, (MMC Learning). Market Research The market research should involve finding what the consumers “want in exchange for what they are willing to pay and do for it.” (Hosford-Dunn Apr, 2006). Market research for this product could start as broadly as researching the pros and cons of school uniforms in a search engine and cataloguing and studying the results. This will provide years worth of direct consumer research. Other ways to obtain more targeted information is to visit primary schools and conduct surveys with parents and teachers. Production Once the product has been defined, research must be undertaken on the best cost-related method of production. Locally, or internationally where labour and material costs are lower? If international labour is considered, so should be ethical standards. When the media uncovered unethical and disturbing facts about Nike sweatshops in Indonesia there was a market trend to boycott the brand (Left Feb, 2001). Integrated Market Communications Once we have a product, a target, a plan and enough market research data to drive the campaign the IMC model must follow. An IMC is a simple concept. It ensures all forms of communications and messages are carefully linked together, (MMC Learning 2009). To link these communications and messages, a clear message should be developed to drive the marketing strategy and cut through the noise of other advertisements, delivering the clear message straight to the consumer (Shockley Oct 2009). The campaign can include advertising, public relations, sales promotions, direct response marketing, events, sponsorships, point-of-purchase materials, packaging, trade shows, customer service, and personal sales (Hosford-Dunn Apr, 2006). Starting Small The key to getting this message across is to start locally and concentrate on timing. Contact the schools (before the school year ends) and organise an open day at the school before the school year begins. Advertise opening days in school newsletters and local newspapers. Include giveaways and promotional packages to spread the brand. Create incentives such as discounts by purchasing packs. Initially this target group will be small, however if market research is continually obtained and used to drive the campaign we will slowly allow the target group to grow in size. Circular Motion The below diagram illustrates the IMC process as being circular and data driven, using database information to link consistent and continuously refined messaging and dialog with target markets in an accountable manner. IMC can use any mix of MC components (centre box), depending on the audiology practice, (Holsford-Dunn Apr, 2006). Growing the product After the product has established a concrete market, the company can consider expanding the size and diversity of its target group. As the profit increases the target group can begin to include females, teenagers and eventually companies who are possibly seeking non-uniforms. Eventually, non-uniforms can be marketed in more European countries and then the world. Comparison with the Gap Inc. Clothing Empire Much of the above IMC campaign can be compared to the successful Gap Inc. clothing empire. First, we will have a look at the history of the company and then we will draw likenesses to the above basic plan. History of Gap Inc. Gap Inc. was created after co-founder Donald Fisher had an infuriating experience trying to exchange a newly bought pair of jeans. With his wife, Doris, Fisher sought to create a clothing company “to make it easier to find a pair of jeans”, (The Times, Sep 2009). According to The Times obituary of Fisher (Sep 2009) Gap Inc., was established in 1969 and named after the generation gap created by the war. Gap opened 181 stores within five years. It was targetted to baby boomers who had the money to spend on a wardrobe of casual clothes. Location was a big part of the marketing strategy, as Gap managed to be housed in central shopping areas. And variety was also prominent to the success of the brand. By the early 1980s the business began to lose momentum, so one of the sub brands was born through the purchase of the clothing chain Banana Republic. Following Banana Republic, Old Navy was established, a parallel brand selling clothes more cheaply than the Gap label, (The Times, Sep 2009). Sub Brands The brand has developed a lot since its 1969 opening. Target focuses have become more complex and the brand itself has been divided into the sub brands of Old Navy, Banana Republic, Piperlime and Athleta (Gap Inc. home). As the target group grew and became more diverse, Gap too grew and became more diverse. When consumers wanted to pay less for clothing Gap created a sub brand Old Navy, rather than compromising its secure brand of staple, quality clothing. Ethical Issues Each sub brand has a different focus, but Gap Inc. is most publicised for its central focus on human rights. The whole branding of Gap Inc. is focussed on the problem of human rights in relation to sweatshop or factory standards in poorer economies. When a consumer walks into a Gap Inc. store he is doing so with the idea that he is making a concienscience statement about human rights. According to Gap Inc. president and CEO, Paul Pressler “improving garment factory conditions is a central element of [the] overall commitment to social responsibility”, (Kanzer et al, 3, 2008). Gap Inc. is branded by these standards. It is a clever branding because it receives free advertising, while keeping employees happy. Product Red The success Gap has had with its ethical campaign was redirected in 2006 into a new campaign: Product Red. Product Red is a Gap Inc. brand that exists under the pretence that “clothing can be fashionable and make a difference, all at the same time”, (Gap Inc. home). The clothing line is a diverse range of illustrated t-shirts, all of which having some vague visual link to the pink ribbon or the colour red or to Africa. This is because Gap is promoting the fact that with this line of clothing, half of profits go to the Global Fund to finance programs to help African women and children afflicted by HIV/AIDS. “The Gap INSPI(RED) t-shirt was the best selling item across the entire Gap brand in October 2006. On October 13, 2006, Oprah Winfrey featured Gap (PRODUCT) RED on her nationwide U.S. television show, and within hours of the show’s East Coast airing, gap.com had sold through its entire inventory of INSPI(RED) t-shirts.” The success was reaped through more than sales, even prospective employees said, “(PRODUCT) RED inspired them to want to work for Gap Inc.”, (Gap Inc. home). “Just six months after the (RED)TM range was launched in the United States, $25 million had been generated for the Global Fund —five times the amount given to the Global Fund by the private sector over the previous four years” (Gap Inc. home). Balancing Act This clean branding encourages consumers to spend money at Gap Inc. stores to make a statement. However, according to Alessandra Brunialti, Design and Product Development vice president at Gap Inc.’s Banana Republic, the price still has to be reasonable. “‘If we alienate the consumer with too high a price point, she’ll lose interest,’ Brunialti says. ‘It’s a balancing act of trying to do the right thing and keeping things viable for our market’”, (Social Responsibility Report, 82, 2008). Conclusion Initial target groups change over time. This can be because of outside factors, from market trends to ethical standards, or it can be because company profitability outgrows its initial targets. As illustrated by clothing empire Gap Inc., the key to a successful IMC campaigning is to continue to evolve by continuing to collect data and using it to redefine and drive its target group, wherever it may take you. References A Marketing Solutions Company Strategy, Consulting, Implementation, 2009, http://www.rd-marketing.com/communications-plans.htm Articlebase “Pros and Cons of School Uniforms”, Sep 9th, 2005 http://www.articlesbase.com/advice-articles/pros-and-cons-of-school-uniforms-182.html Cunningham, Claire 2004 “Integrated Marketing Communications: Top 7 Steps for Developing a Marketing Communications Plan” http://top7business.com/?id=790 Gap Inc. home http://www.gap.com/ Hosford-Dunn, Holly, Ph.D., “Integrated Marketing Communications (IMC), Part II – Strategic Messaging to Build Brand” Apr 2006, http://www.audiologyonline.com/Articles/article_detail.asp?article_id=1732 Kanzer, A, Kayal, AZ, MacKerron, C, Rosenbaum, R, Social Responsibilities Report, Public Reporting Working Group: Education and Action, Inc. 2008. http://www.gapinc.com/socialresponsibility/ Kulik, Anita Your Niche Target Market – How Do You Find Your Audience? http://www.squidoo.com/identifyingyourtargetmarket Left, Sarah “Nike” Guardian Unlimited, Feb 2001 http://www.contagiousmedia.org/press/nike/nike-guardian.htm Marketplace, Gap Inc. 2005-2006 “Can business and human rights go hand in hand?” www.gapinc.com/socialresponsibility. McGraw-Hill/Irwin “chapter seven: Establishing Objectives and Budgeting for the Promotional Program” An Introduction to Integrated Marketing Communications, 2004. MMC Learning, 2009, “What is IMC” http://www.multimediamarketing.com/mkc/marketingcommunications/ Pros and Cons of School Uniforms, Love to know Corp, 2009 http://kids.lovetoknow.com/wiki/Pros_and_Cons_of_School_Uniforms Shockley, Chris “Is your marketing Message Clear Enough?” Oct 2009 http://ezinearticles.com/?Is-Your-Marketing-Message-Clear-Enough?&id=3076967 The Times, Sep 2009 “Donald Fisher: co-founder of the Gap clothing chain” http://www.timesonline.co.uk/tol/comment/obituaries/article6852733.ece Read More