Target Market Segmentation

Introduction The Gap Inc. is a global specialty retailer that operates stores selling casual apparel and accessories for men, women, and children (Yahoo Market Guide, 2001). Under the Gap, are the Old Navy and Banana Republic brands (Yahoo Market Guide, 2001). Demographic/Psychographic/Geographic Segmentation Gap The Gap’s target age segment is males and females ranging from seventeen to twenty-five years old (Cosmopolitan, 2000, p. 2). The typical family life cycle for a Gap customer comprises of single teenagers and young adults to young married couples (Cosmopolitan, 2000, p. ). The races Gap targets consist of many minorities such as Hispanics, Asians, and African-Americans in addition to Caucasians (Cosmopolitan, 2001, p. 57). The income segment is middle to upper-class individuals who reside in urban or suburban areas in developed countries such as the U. S. and Japan (PRIZM Cluster, 2001). Common occupations of Gap customers include: high school and college students, entry-level college graduates, and young working, married couples. Gap customers tend to be energetic, work/career oriented, and active people who have significant time to shop (Cosmopolitan, 2001, p. 57). In addition, their customers have a sense of style sophistication in their wardrobe, and are confident individuals who feel they are buying the best product available. Banana Republic The target age segment for Banana Republic ranges from ages fifteen to forty-five (GQ, 2000, p. 3). The family life cycle consists of teenagers, single women and men, and career-oriented married couples (GQ, 2000, p. ). Banana Republic targets the same races as its parent company. The races include both minorities and Caucasians. The income segment includes middle to upper-class individuals who reside near urban or suburban areas in developed countries. Common Occupations for Banana Republic customers include: high school/college students, entry-level college graduates, and men and women working professionals. Banana Republic customers are people who are generally active, work/career oriented people who have little time to shop. In addition, their customers are sophisticated, confident people who seek not only trendy clothing, but also the best product available. Old Navy The target age segment for Old Navy ranges from thirteen to thirty-five years of age. The common family life cycle for Old Navy patrons is young teenagers, then single women and men on a strict budget, and most notably married couples with children (Russo, 2001, p. 2). Old Navy targets the same races as its parent company. The races include both minorities and Caucasians. Income levels for Old Navy patrons include all levels due to its family-oriented approach to marketing (Russo, 2001, p. 2). Patrons reside near urban or suburban areas in developed countries. Common Occupations for Old Navy patrons include: students, entry-level college graduates, working men and women, and housewives. The common Old Navy patron is an active, work/family-oriented person who has little time to shop. The majority of Old Navy shoppers want stylish clothing, the best value for their money, and products that are comfortable. Operating Characteristics It takes a team of nearly 140,000 workers worldwide to deliver the merchandise that customers expect (Gap, 2001). The process begins with the product managers and graphic artists that design each season’s merchandise (Gap, 2001). Employees around the globe in Gap’s Sourcing and Logistics Group, along with buying agents place orders with third-party factories in almost fifty countries worldwide (Gap, 2001). Each brand has its own marketing department located at world headquarters in San Francisco to design ad campaigns, packages, and posters (Gap, 2001). The distribution process starts out with third-party manufacturers who ship goods to modern distribution centers. From those centers, goods go to the stores to be sold in retail outlets. Conclusion From this detailed estimate of Gap Inc. ’s market segmentation, consumers will be able to figure out which Gap Company best suits their clothing needs. Although the actual target market and age may differ slightly; looking at their advertisements can prove this estimate to be accurate.

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