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Competitor Analysis

Gap.com : 5 shops-1 check out model

Prepared by : Hai Anh TO

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Gap.com overview

• Gap: Clothes for women, men, maternity, baby and kids

• Old Navy: Women, Men, Maternity, Baby and Kid clothing

• Banana Repubic: Apparel, Handbags, Shoes and Accessories for Women and Men

• Athleta: Outfit Women for Sport

• Pipelime: Shoes, handbags, apparel and jewelry (Newest and online-only brand)

Gap.com is a 5 stores – 1 low flat shipping website

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Gap.com performance

• Attracted over 18 million visitors annually (2008)

• E-commerce pioneer in the industry. Long before other companies even started to consider about e-commerce, Gap began developing its online strategy.

• Consistently reinvented itself several times by introducing new brands (Athela and Piperlime) and innovating merchandising.

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Market segmentation strategy: Gap segmented each brand to represent a unique image, and

catered to a distinct demographic.

• Gap: middle-class of college-age, teens and 25 to 35 year-olds / basic, casual styles

• Banana Republic: Older and more affluent consumers /more stylized products

• Old Navy: Families, bargain-minded consumers / fashionable, value-oriented clothing at lower price

• Athleta: For modern and active women/premier and sophisticated

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Competitive advantage : ''EASIER AND EASIER”:

• Broader range of sizes and products than retail locations: some special items that are not available in stores (ie extra-large pants sizes pants).

• Integrated technology to enhance customer experience: helps shoppers have a good idea of how Gap clothes fit

• Retention of customer preference: Wish lists

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Website design / Usability features : Gap

All brands has the same and standardized front page design

Easy to find the subscribing field

1 brand also link to and promote for other brands

Flash banner promoting for GapCard

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Website design / Usability features : Bestseller

• Different front page designs that change regularly for each brand

avoid boringness

• More sophisticated and professional design: fit to targeted customers and market

• Teaser: summarizing the new updates of other brands attract customers ‘attention.

• Not so “outstanding” subscribing field

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Harvesting email : Gap.com

•Easy to find the Sign-up box. Special offer for subscribers is clearly indicated

•Subscribing consist of some steps, but easy and simple

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Harvesting email : Gap.com

• Customers-oriented sense: offer special gifts/ discount for birthdays

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Harvesting email : Gap.com

• Tailored messages to customers’ specific interest.

• One sign up for all brands

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Harvesting email : Gap.com

Encouraging memberships :

• Receive direct offer just after registering,

• registered members have obvious greater benefits compared to non-registered members

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Harvesting email : Bestseller

• One-step-only subscription

• Sign up for each shop separately.

• No offer when signing up

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Email campaigns

• Plain text version comes alone

• Short (1-3 days) and long-term offers rather than promoting new products

• Variable offers : free shipping, % off, off with membership card…

• Short subject lines- Chic Summer Dresses, Starting at $25- Last day to save up 40%- The hot 10 summer top dress

• Messages go to inbox, not to Spam

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Email campaigns• Simple and standard design template

for all brands, regardless the message content

• Bottom banner: Link to social network, Logo of other brands…

• 2 times scrolling-down

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Good about GAP

• Variety of offers and promotions program encourage customers

• Customer retention: • Membership with exclusive benefits. • GapCard offer an easy way to shop.

• Quick page loading, no over-use of flash and motion effects

• Website is user-friendly • good search tool, • signing – up is simple, easy

• Strategically cooperate with trusted and well-known partner to • offer greater service, • maximize convenience, • increase website reliability (VISA) and reputation (Youtube, Facebook, Twitter)

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Recommendations for Bestseller

• More customer-focused strategy: Customers should feel they are appreciated, cared and supported when shopping in our store.

• Introducing more promotions and offers. Offer do not need to be at high value, but should make customers feel excited that they get a special deal when buying

• Design of newsletter : simple, and professional. • Increase customers retention and loyalty: Subscribers should receive

distinctive benefits compared to non-subscribers. That should be advertized on front page.

• Reducing loading time• Trying short –term offers ( 1 to 3 days just like Old Navy is doing)• In a long term: Strategic cooperation with well-known partners and social

network