Gap Inc. Segmentation, Targeting and Positioning: An Effective Application of Multi-Segment Positioning
Gap Inc. segmentation, targeting and positioning practices refer to ways in which the fashion and accessories retailer identifies specific groups within the population to sell their products to and increases the attractiveness of its products to this specific group of buyers.
Segmentation includes dividing population into groups according to certain characteristics, while targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix that is the most attractive for the target customer segment.
Gap Inc. uses multi-segment type of positioning and accordingly, the company exploits more than one customer segment with different brands within its portfolio. For example, Gap brand targets individuals interested in American casual style, whereas the target customer segment for Athleta includes fitness-minded women. The company also uses imitative positioning style occasionally by imitating the design of luxury clothing brands such as Ralph Lauren Corporation, Versace, Giorgio Armani, Louis Vuitton and others.
The following table illustrates Gap Inc. segmentation, targeting and positioning:
| Type of segmen-
tation |
Seg-
Men-tation crite-ria |
Gap Inc. Target Customer Segment
|
||||
| Gap | Banana Republic | Old Navy | Intermix | Athleta | ||
|
Geogra-phic |
Region | North America
Asia, Europe |
North America
Asia, Europe |
North America
Asia |
North America | North America |
| Den-sity | Urban, Rural | Urban, Rural | Urban, Rural | Urban | Urban | |
|
Demog-raphic |
Age | 3 – 45 | 18-40 | 3 – 40 | 18 – 45 | 16 – 50 |
| Gen-der | Males & Females | Males & Females | Males & Females | Males & Females | Females | |
| Life-cycle stage | Bachelor Stage
Newly Married Couples Full Nest I Full Nest II |
Bachelor Stage
Newly Married Couples Full Nest I
|
Bachelor Stage
Newly Married Couples Full Nest I
|
Bachelor Stage
Newly Married Couples Full Nest I |
Bachelor Stage
Newly Married Couples |
|
| Occupation | Students, employees, professionals | Students, employees, professionals | Students,
employees, professionals |
employees, professionals | employees, professionals | |
| Behavi-oral | Degree of loyalty | ‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
‘Hard core loyals’
‘Soft core loyals’ ‘Switchers’ |
| Benefits sought | Cost advantage
Self-expression |
Self-expression | Self-expression | Self-expression
Cost advantage |
Functionality
Perception of leading healthy lifestyle |
|
| Personality | Easygoing | Easygoing | Easygoing | Determined and ambitious | Determined and ambitious | |
| User status | regular users, or ex-users of a product | non-users, potential users, | non-users, potential users, | non-users, potential users, first-time users, regular | non-users, potential users, first-time users | |
| Psychog-raphic | Social class | Lower class/working class/middle class/ | working class/middle class/ | working class/middle class/ | middle class/upper class | middle class/upper class |
| Lifestyle[1] | Struggler
Aspirer Explorer |
Aspirer
Succeeder Explorer
|
Succeeder
Explorer Reformer |
Aspirer
Succeeder Explorer
|
Aspirer
Succeeder
|
|
Gap Inc. segmentation, targeting and positioning
Gap Inc. Report Report constitutes a comprehensive analysis of marketing strategy and business strategy of Gap Inc. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Gap Inc. Moreover, the report contains analysis of Gap Inc.’s leadership and organizational structure and discusses the issues of corporate social responsibility.
[1]According to Cross Cultural Consumer Characterization by Young & Rubican