Business Case Studies, Brands & Branding and Private Labels Case Study, Gap, Banana Republic

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Case Title:

Gap and Banana Republic: Changing Brand Strategies with Fashion

Publication Year : 2004

Authors: Gayatri. D, T. Phani Madhav

Industry: Retailing

Region:USA

Case Code: BBP0015

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Gap Incorporated, which operates retail stores under brand names GAP, Banana Republic and Old Navy, each catering to different segments of the market, experienced brand cannibalisation. The company changed the positioning of GAP when it discovered that both GAP and Old Navy were targeting the same market segment. But, a new problem arouse as GAP started competing with Banana Republic as it had done earlier with Old Navy. Then Banana Republic was relaunched with renewed focus on the modern fashion casuals segment. However, after the makeover of Banana Republic, keeping in tune with the fast changing trends in fashion became a major challenge for the company.

Pedagogical Objectives:

  • To discuss the brand strategies of the company and the need for changing branding strategies with the changing fashion trends
  • To discuss the strategies implemented by the company to avoid brand cannibalisation by creating distinct brand identity of its stores.

Keywords : Banana Republic, Brand cannibalisation, Brand clutter, Gap Incorporated, GAP stores, Old Navy discount stores, Discount retailing, Brands & Branding Case Study, Brand makeover, Redefining brand image, Value positioning, Boundaries between brands, Mickey Drexler at GAP, Fashion as brand strategy

Contents:

  • Introduction
  • Gap – background
  • Drexler – fills the 'gap'
  • Banana republic – the first make-over
  • Gap – from a 'product' to a 'retail brand'
  • With gap – one style fits all
  • Old navy vs gap

  • Making the boundaries clear
  • Brand banana republic – second make-over
  • Fickle fashion as a brand strategy
  • Banana Republic – Lifestyle Brand
  • Total Stores of Gap Inc. as of May 1st 2004
  • Comparable Same Store Sales from 1999 to 2004 at GAP, Banana Republic and Old Navy

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