The GapMarketing Research Proposal

Paul BustosEric ChanHenry ZhangKeerthi Pudota

o Company Background and Problem Definitiono Problem Definitiono Manager’s decision Problemo Research Problems

o Research Design and Data Sourceso Types of research designo Type of data to be collectedo Sources of Secondary Datao Methods for collecting Primary data

o Data Collection Formso Formso Questions

o Sampling Planso Populationo Sample Forms

o Dummy Tables Review

Agenda

o The Gap - American Clothing and Accessories Retailer

o Founded in 1969 o Based in San Francisco, CA.o 5 Primary brands

o Gapo Banana Republico Old Navyo Piperlimeo Athleta

o 3,076 stores o 135,000 employeeso Stores in U.S., Canada, United Kingdom, France,

Ireland, Japan, China, Italy

Company Background

o Last 10 Years struggling with sales to young customers

o Lost market share among young (13 to 26) consumers

o Competitors (Abercrombie & Fitch, Hollister, and American Eagle Outfitters)

o “Chased after rivals, rather than charting its own course”o Reduced quality and it was not appealing to

its customerso Selling what customers do not want

o Hired and fired fashion designerso Attempt to recapture its appeal among

younger customers.

Background of the Problem

• Assess the clothing style likes and dislikes of younger (13 to 26) consumers.

• Assess the regional differences in clothing preferences of younger consumers

Research Problem

Problems

o What type and styles of clothing as well as trends (that which is coming into fashion) are younger consumers (age 13 thru 26) attracted to or actively seeking.

Managerial Decision Problem

Managerial & Research Problems

MethodsDataExploratory Research

Exploratory

External Secondary

Data

Fashion Magazines

Social MediaInternal Secondary

Data

Gap Sales Data

Primary Data

Focus Groups

Research Designs and Data Sources

o End Game here is to look for clues between internal and external data

o Are highly touted styles per external data selling well

o Results of the secondary research will determine what styles are used in descriptive survey

Goal of Exploratory Research

MethodsDescriptive Research

Descriptive

Primary Data

Attitudes and Opinions

Cross Sectional Analysis

Age and Gender

Research Designs and Data Sources

Internal Secondary Data (Summated Sales

Data for Target Group Styles)

External Secondary Data

(Style Industry Magazines)

Focus Groups Primary Data

(Choose Styles & Qualitative Issue

Listing Development)

Descriptive Data Electronic Survey

(Style ratings & Qualitative Issue

Listing) Primary Data

Data Correction,

Summarization & Review

· Summarized Style Score Tables

· Histogram of Style Issues

Gap Management Deliverables

The Gap Marketing Research Process and Data Flow

o Manual Labor Summarization of data from Magazines and Social Media

o Summarized Internal Sales data sourced from “The Gap”

Secondary Data

Data Collection Methods

o Computerized Electronic Survey – Mall Intercept

o Focus group data collection will be accomplished with manually written forms filled out by the group members themselves.

Primary Data

Primary and Secondary Data

o Focus Groupso Focus groups will be used to

determine the factors that affect the likes and dislikes of the clothing

o The focus group can be controlled and can encompass different target elements such as gender, age, income, lifestyle, etc.

o The focus groups will give the Gap a better understanding of what the key factors are to consumers preferences in clothing.

o Focus Groups will be used to determine which styles are used in the descriptive data

survey.

Data Collection Forms

o Electronic, visually formatted formso Will capture the target populations attitudes and

opinions about styleso Segregated into male and female polling routeso Visually display the Gap’s, and 2 different

competitors styles Similar styles sets on the same model

Data Collection Forms

o Give Your Overall Fashion Look Impression by checking a box below: 7 Point Likert Scale is presented ranging

from very bad to very goodo Then a Root Cause Audit will then be

presented for the style “Check all that Apply!”

Data Collection Forms

Two Basic Questions are asked for each Style

Give Your Overall Fashion Look Impression by checking a box below:

Good

VeryGood

Neutral

Bad

VeryBad

Slightly Positive

Slightly

Bad

Next

Issue Poor Style Cut

Style is just plain HorridParents would Approve

Style Colors Not GoodBad imitation of hot style

Bad style for ModelClothes Look Cheap

Makes Model Look Fat

Poor Style CutStyle Outdated

Material Seems CheapStyle Fit is Poor

Check all that apply!

Next

Sampling Plano Target Population:

o Male and Females ages 13-29 years old

o The Gap historically has been a fashion staple for this target market

o Sample Frame:o Top 100 Gap retail locations by sales

volume across the United Stateso This gives the Gap the ability to

sample more consumers because of the high volume of active shoppers and clothing sales.

Sample Plan

Sampling Plan Cont.

o Sample Procedure o Non Probability Sample

o For mall intercepts, the selected individuals administering the surveys has to make a perceived judgment on customers that walk by on whether or not to approach them to administer the survey.

o Convenience Sampleo When someone is intercepted at the mall, if

they are ready and available they will take the survey. If they aren’t, then they won’t take the survey.

o Desired Sample Sizeo $100,000 budget

spread across 100 Gap retail locations at various malls. With cost per participant estimated at $10, we plan to reach 10,000 participants.

Sampling Plan Cont.

Data Resultso With the data collected through these

surveys, the Gap can see why consumers like or dislike Gap clothing, and what factors go into these consumer preferences. o The Gap will be able to get a better idea of

what consumers look for when selecting clothing and can revamp their clothing line to better match consumer wants and needs.

o Gap can also analyze the data regionally, seeing if certain regions had different preferences (for example, East Coast stores preferring jackets over West Coast consumers preferring t-shirts)

Dummy Tables Reviewo Deliverables to “Gap

Management”o Summarized Results of Competitive

Style Ratingso Competitive Scoring Summary by Age

Bar Charto Root Cause by “Issue” Histogram

Summarized Results of Competitive Style Ratings

Womens Style Number Gap

Competitor #1

Competitor #2

Mens Style Number Gap

Competitor #1

Competitor #2

W_Style #1 3 5 6 M_Style #1 3 5 6W_Style #2 4 6 6.7 M_Style #2 4 6 6.7W_Style #3 2 6 5.5 M_Style #3 2 6 5.5W_Style #4 5 7 5 M_Style #4 5 7 5W_Style #5 1.5 4 7 M_Style #5 1.5 4 7W_Style #6 3 5.2 7 M_Style #6 3 5.2 7W_Style #7 4 6 4 M_Style #7 4 6 4W_Style #8 6 5.7 4.9 M_Style #8 6 5.7 4.9W_Style #9 3.5 6.1 6.7 M_Style #9 3.5 6.1 6.7W_Style #10 5 4 5.7 M_Style #10 5 4 5.7W_Style #11 3 6 6.4 M_Style #11 3 6 6.4W_Style #12 2.3 5.7 6.7 M_Style #12 2.3 5.7 6.7W_Style #13 4 7 5.8 M_Style #13 4 7 5.8W_Style #14 2.8 6.9 6.4 M_Style #14 2.8 6.9 6.4W_Style #15 4.7 5.9 6.3 M_Style #15 4.7 5.9 6.3W_Style #16 5 6.9 6.5 M_Style #16 5 6.9 6.5W_Style #17 2 5.9 7 M_Style #17 2 5.9 7W_Style #18 3.8 4.9 5.8 M_Style #18 3.8 4.9 5.8W_Style #19 5.7 5.4 5.2 M_Style #19 5.7 5.4 5.2W_Style #20 3.9 4.7 6.2 M_Style #20 3.9 4.7 6.2

Total Score 74.2 114.3 120.8 Total Score 74.2 114.3 120.8Avg. Rating 3.7 5.7 6.0 Avg. Rating 3.7 5.7 6.0Std. Deviation 1.27 0.89 0.81 Std. Deviation 1.27 0.89 0.81

Women's Styles Men's Styles

Average Ratings with 1 to 7 Scale

13 to 15 16 to 18 19 to 21 22 to 260

1

2

3

4

5

6

7

Competitive Ratings by Age GroupGap

Competitor #1

Competitor #2

Age Groups

AVG SCORE

Age Group 13 to 15 16 to 18 19 to 21 22 to 26Gap 4.6 5.5 4.5 3.1

Competitor #1 5.4 5.7 6.1 6.4Competitor #2 4.9 5.9 6.7 6.8

Average Scores by Age Group

Competitive Scoring Summary by Age Groups

Summarized Issue Tally Table

ISSUE Gap Comp#1 Comp#2

Poor Style Cut 77 55 71Style Outdated 61 29 25Material Seems Cheap 264 112 39Style Fit is Poor 583 265 96Style Colors Not Good 202 119 47Bad imitation of hot style 839 221 60Bad style for Model 33 75 12Clothes Look Cheap 737 289 110Makes Model Look Fat 60 99 53Style is just plain Horrid 577 121 43Parents would Approve 322 121 77

To Create….

0

100

200

300

400

500

600

700

800

900Histogram of Style Issues/Problems

Gap

Comp#1

Comp#2

ISSUE COUNT

Summarized Issue Count table used to create Root Cause Histogram

Issue Tally Table

Gap

Competitor #1

Competitor #2 Gap

Competitor #1

Competitor #2

42 10 59 35 45 1212 16 6 49 13 19

109 49 22 155 63 17305 120 73 278 145 23126 30 10 76 89 37504 32 15 335 189 45

10 34 2 23 41 10459 150 76 278 139 34

37 58 17 23 41 36379 45 20 198 76 23198 76 43 124 45 34

Issue Count by Style with Competition BreakdownStyle #1

Issue TypeStyle #2

Bad style for ModelClothes Look Cheap

Makes Model Look FatStyle is just plain HorridParents would Approve

Poor Style CutStyle Outdated

Material Seems CheapStyle Fit is Poor

Style Colors Not GoodBad imitation of hot style

Questions?