Case Studies

Developing Retail Expansion Strategy

Gap Inc. is one of the world's largest specialty retailers, with more than 3,100 stores and fiscal 2008 revenues of $14.5 billion. Gap has stores throughout the United States, as well as in Canada, the United Kingdom, France, Ireland and Japan and world headquarters based in the San Francisco. More than 150,000 employees around the world support Gap.

Challenges

US apparel manufacturer wanted to develop entry and expansion strategy for Japanese market

Needed to include differentiated approaches for GAP, Banana Republic and Old Navy brands

Approach

Conducted comprehensive market research related to Japanese consumers, competitors and potential geographic markets

Conducted focus groups, quantitative research and competitive analysis

Recommended apparel categories where GAP could “own the zone” within the Japanese market

Visited high potential geographic markets to assess consumer traffic, competitor locations and benchmark retail sales productivity

Developed specific strategies for market entry and expansion that included:

Target customer segments and apparel occasions

Brand positioning relative to international and domestic apparel brands

Retail store locations by brand within key markets

Product design and target specifications regarding color, quality, etc.

Desired print advertising vehicles and key message content

Multi-year retail expansion strategy by brand

Pro-forma financial statements

Results

Identified target consumer segments and occasions

Determined that one of brands was not well suited to Japanese market

Developed “own the zone “ apparel category to focus on

Category focus strategy was extended globally

Established store expansion strategy to add 150 stores and grow revenues to $500 million in 4 years

Download file