According to an article in ABC news on March 2, 2007, Gap Inc.’s shares have fallen as much as 4.9 percent. This took place after the company said 2007 would be a transition year, with earnings coming up shorter than Wall Street expectations.
According to the article, interim CEO of Gap Robert Fisher acknowledged that the problems in the company’s management have hindered the success of the company and its ability to bring new, exciting fashion and style to the struggling brands. There has also been some confusion over who Gap’s target market/publics are and the specific demographics of these groups. Gap acknowledged that the previous demographic of 18 to 35 was “too broad and created confusion among designers and consumers” (article). According to the article, Fisher said the company is going to focus on “turning around its underperforming business, attracting new talent and simplifying operations.”
As Gap’s earnings continue to fall, what measures will they take to turn the company and the brand’s image around? Can they change the target demographic and target markets/publics? Will this measure prove to be successful? It is important for a retail company and brand to be clear on the markets they are targeting with their products; these markets must be specific, so programming and objectives for performance can be measurable and definite. How will Gap decide what specific target to market? Will this help to salvage the brands?
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I can not believe that GAP stocks have fallen. I really thought that when Oprah was promoting her "red campaign" for AIDS that the sales of GAP and other retailers would increase. This was a large public relations campaign, which included top brands, such as Motorola and Apple.
I recommend that GAP bring in a guest designer. The designer could design his/her own line of clothing, which would be sold exclusively at GAP stores. This would encourage consumers to shop in GAP stores and hopefully increase the company's stocks.
Personally, I would hate to see GAP go out of business. It is a great company that has become reputable worldwide. I hope action is taken, and the company is saved!
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