Download Case Study Part 1 - Montgomery County Schools

Case Study Part 1:
Closing the Gap?
Since 1969, Gap, Inc., has opened stores in mall across the United States. The popular retail
clothing chain experienced the economic boom of the 1990s, as sales almost tripled from $5.3
billion in 1996 to $14 billion in 2001. The company continued to open new stores, construct a
new corporate headquarters, pour money into distribution centers.
Gap was banking on the continued success of its products. That success, however, never
completely materialized. There were too many stores, and Gap’s customers did not like the
new, edgier designs and unfamiliar clothing lines. By the end of 2001, Gap, Inc., showed a loss
of $8 million.
In October 2003, Gap hired Paul Pressler from The Walt Disney Company to revive Gap, Inc.
as chief executive of Gap. Inc., Pressler’s first step was to insist that the company “listen to
customers.” But was this approach successful?
Analyze and Write
1. Why did Gap’s expansion result in losses? List two reasons.
2. How important is understanding the needs and wants of the consumers for Fashion businesses?
Discuss you answer in one paragraph.
CHAPTER 2: FASHION AND
MARKETING
2.1 Fashion Marketing Basics
How Fashion Is Marketed

Marketing
 The
process of developing, promoting, and distributing
products to satisfy customers’ needs and wants.

The Marketing Concepts
 The
idea that businesses must satisfy customer needs
and wants in order to make a profit.
Target Market


Target Market - The specific group of people that a
business is trying to reach.
Market Segmentation – a way of analyzing a market
by categorizing specific characteristics.

Marketers divide the people into groups of consumers
based on various shared characteristics
Demographics
 Psychographic
 Geographic
 Behavioristic

Demographics

Statistics that describe a population in terms of
personal characteristics such as
 age
 gender
 income
 ethnic
background
 education
 religion
 occupation
 lifestyle
Psychographics

Studies of consumers based on social and
psychological characteristics such as
 Attitudes
 Interests
 Opinions
Chart:
http://highered.mcgraw-hill.com/sites/dl/premium/0078682959/instructor/265262/FM_OLC_Fig_2_1.pdf
Geographics


Statistics about where people live
Breakdown could include:
 Region
of Country
 Size of the City or County
 Density of the Population (urban, suburban or rural)
 Climate
Behavioristics

Statistics about consumers based on their
 Knowledge
 Attitudes
 Use
 Response
to a Product
Fashion Merchandising

The planning, buying, and selling of fashion
apparel and accessories to offer the right
merchandise blend to meet consumer demand.

Retailers and Fashion Merchandising

Merchandising Market Factors
Quiz:
What is target marketing?
1.
a)
b)
c)
Specific group of people that a business is trying to reach.
A way of analyzing a market by categorizing specific characteristics.
Process of developing, promoting, and distributing products to satisfy
customers’ needs and wants.
Which of the following is not customer characteristics used to segment
markets?
2.
a)
b)
c)
Demographics
Psychographics
Promographics
What is fashion merchandising?
3.
a)
b)
c)
Specific group of people that a business is trying to reach.
A way of analyzing a market by categorizing specific characteristics.
The planning, buying, and selling of fashion apparel and accessories to offer
the right merchandise blend to meet consumer demands.