Solved Assignments Search for the Perfect Jeans We all have them. And if you don’t, you are probably looking for…


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Search for the Perfect JeansWe all have them. And if you don’t, you are probably looking for them—the perfect pair of jeans. Preferably, they are faded, soft, and perfect. In 1969, Don and Doris Fisher opened the first Gap store in San Francisco “to make it easier to find” that perfect pair. This store was only the beginning. Gap, Inc., expanded its consumer market through Banana Republic, Old Navy, and, most recently, Forth and Towne.Something for Every “Body” Why did a single retail shop morph into four different brands? In the 1990s, Gap seemed to be losing its edge. A boastful rival claimed to Gap’s then-CEO Mickey Drexler that “he could create a cheap Gap knockoff that one day would be bigger than Gap itself.” Drexler liked the idea and ran with it himself. Enter Old Navy. Just as each body requires a different pair of jeans— be it boot cut or low rise—each Gap, Inc., brand has a unique identity that is carried out in the store environment and marketing agenda. For example, budget-conscious consumers can peruse the deals at Old Navy while standing on concrete floors and listening to loud music. Down the street at Banana Republic, a more sophisticated crowd is checking out the season’s trendiest fashions at “approachable prices.” Meanwhile, at Forth and Towne, the target is the female baby boomer. These 35-and-over women are treated to chandeliers and lavish fitting rooms stocked with bottled water and chocolates.Retail Success The economics and marketing savvy behind the retailer’s rise to success are pretty simple: provide a product of value at different price levels in order to reach the maximum number of consumers. It seems to be working. With more than 3,000 stores and 2005 revenues topping out at $16 billion, Gap, Inc. operates under the notion that every “body” deserves that perfect pair of jeansQuestion Summarizing How did Gap, Inc., tackle the economic problem of consumers having to make choices? 2. Analyzing Investigate each brand’s Web site. How does each site’s design reflect the brand’s target audience?

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