Executive summary
This report was conducted to understand why GAP, the world leading fashion retailer, has been suffering from falling in sales and profits in the UK.
GAP, the US clothing specialist, was first came to the UK in 1987. Since its first step in UK, GAP was challenged by the high cost of operation such as staff and rents. Its dollar/pounds pricing structure made its price seem expensive when comparing with other Mid-market brands. This can be evidenced from its continuous falls in UK clothing share, from 1.6% in 2003 to 1.1% in 2008. (Verdict, 2008)
From the secondary research, it has been shown that though UK clothing market growing from £41,155 billion in 2003 and expected to reach almost £50 billion by 2008, there are significant changes in consumers’ trends and behaviours such as Credit Crunch.
The primary research, based on The Wheel of Consumer Analysis, reveals how and why customer attitudes have created and changed also assess the effectiveness of GAP’s current marketing efforts. While GAP is perceived with only functional benefit to most of its customers but to those who are GAP true fans, it can reach the End of The Means and End Chain and contribute Instrumental and Terminal.
In addition, by using Fishbein Model, measured attitude toward GAP and the associated beliefs as well as identified areas that needed to be improved, GAP only received an average rating on style which is the main concern in consumers buying decision process and needed to be developed.
Further primary research also revealed that “Value for Money” is the main reason why consumers buy GAP. Consequently, GAP should maintain its core competency to sustain this preferable behaviour.
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