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Research Outline

Prepared for Tyler L. | Delivered September 5, 2019

Gap Inc. Analysis

Goals

The goal is to create an analysis of Gap Inc. that includes their competitors, financial performance, marketing strategies, social media presence, and if they have been involved in any controversies.

Early Findings

  • According to NASDAQ, some of Gap's top competitors include Abercrombie & Fitch, American Eagle, Buckle, and The Children's Place.
  • Gap's 2019 revenue so far is over $16.5 billion, which is a 4.57% increase from the previous year.
  • Gap acknowledged a pain point of having customers frustrated with online shopping because they cannot try things on. They are working on tech-related solutions such as a dressing room app and body scanning technology that will create more realistic avatars in the clothing pictured online.
  • The company also says that they are constantly running internal tests to detect pain points in their customers' online shopping experience.
  • Gap spent $650 million on advertising in 2018.
  • Gap takes a personalized approach to their marketing strategy. They use their own data gathering techniques, as well as outsource to third-party data companies, to gather data on their consumers that they use to target different groups of people through digital advertising. They claim this strategy has yielded 50% more effective ads.
  • The company not only uses social media to advertise, but they gain data for their marketing from social media. One example is last year's fall campaign, "Good Makes Good", where they gathered uplifting tweets from Twitter and created a unique song from the hashtags for their commercials.
  • Gap Inc. was the center of controversy in 2016 when they put out an advertisement on Twitter for Gap Kids that many people said appeared racist. A few weeks later, they released another ad on Twitter that featured an interracial family which created a huge divide among Twitter users. Some claimed the ad was promoting "forced blending" while others were very supportive of the ad.
  • We found some proprietary research from one of our data partners which may be helpful:
The Gap, Inc. - Strategy, SWOT and Corporate Finance Report (MarketLine, $175)
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