Gap Inc. Segmentation, Targeting and Positioning: An Effective Application of Multi-Segment Positioning

gap-inc-segmentation-targeting-and-positioningGap 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.

gap-inc-report

[1]According to Cross Cultural Consumer Characterization by Young & Rubican

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