Gap Inc. is a specialty retailer that operates stores selling
casual apparel, shoes, and other accessories for men,
This case was prepared by Masaaki Kotabe for class discussion
rather than to illustrate either effective or ineffective
management of a situation described (September 1999).
women, and children. It includes six registered trade
names: Gap, GapKids, BabyGap, Gap Shoes, Banana
Republic, and Old Navy Clothing Company.
During fiscal 1998, the company continued to focus
on developing and growing its brands, and the company
believes that its brands are among its most important
assets. The company is taking action to maintain and
strengthen brand loyalty, including significantly increasing
its investment in advertising and marketing.
Gap significantly increased its investment in advertising
and marketing during fiscal 1998. Besides expanding
the number of print ads placed in major metropolitan
newspapers and their Sunday magazines, major news
weeklies and lifestyle and fashion magazines, the company’s
ads appeared in various outdoor venues, such as
mass transit posters, exterior bus panels, bus shelters, and
gigantic billboards spanning entire buildings. The company
continues to run TV ads for all of its brands and
radio ads for Old Navy and to continue increasing its
investments in advertising and marketing in 1999. All advertisements
stress the central theme of American
design, quality, and moderate pricing, although they are
produced separately in each country to suit local tastes.