Gap

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Gap (PRODUCT) RED

Can a t-shirt change the world? This one can.







• Economic initiative not charity

• Private sector with public buying power

• Raise money for Global Fund for HIV/AIDS

• Contributions controversial ($57, $25)

• Licensed brand– Apple, Motorola, Armani, American Express

Bono and Shriver see RED

Gap Inc.: Brand struggles



• Specialty retailer• Created the casual workday • Trends changing, Gap not adjusting• Challenges from Target, JCrew, H&M• Declining sales since 2004• Gap Inc. looks to RED to change image with

consumers



What is RED about for GAP?



• Market ready for corporate social responsibility:• Give the consumer the chance to give back• CSR trend setter in retail • Clean up factories and publicize work in Lesotho• Psychographic audience segmentation

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• Younger group than traditional Gap audience• Men and women psychographic• Eco-conscious, socially conscious• Personal emotions, personal style• Inspi(RED), uncenso(RED)

RED targets new customer



LAUNCH

• Announced March 15, 2006 in London• 22 page feature in Dazed and Confused magazine

in UK• October 13, 2006 in US• 40 items

– shirts, hoodies, jeans, tote bags, leather jackets

• 200 of the largest stores, flagship in Chicago• 5 years, 2011





Demonstrate Gap’s dedication to the Global Fund and show their determination to affect change in Africa

Improve economic development of African regions affected by HIV/AIDS

Leverage the strong Gap brand to educate the public on the world AID crisis

Improve Gap image in the mind of consumer’s in order to increase profits for the company in the future

Establish Gap as the pioneer in retail corporate social responsibility

Show Gap is trendy and hip with current consumer desiresMake clothing that people will wear and feel comfortable

wearingIdentify with consumer emotion





Celebrity Advertisements



Outsource to Lesotho

• Production of cotton t-shirt to Lesotho• Administered necessary drugs• 30 percent of workers HIV +• Shows dedication to changing the region• Shows Gap is changing social practices and

changing lives• Best selling t-shirt in Gap history



Profit to Global Fund

• 50 percent of profit

• Leading company partnered with RED

• Partnered until 2011

• Long-term dedication











Chicago Flagship Debut

• Oprah wore the shirt on her Oct. 13 show

• Fashion show with Christy Turlington, Penelope Cruz and 300 Gap employees

• Sales of RED t-shirt were up 600 percent in October, best selling shirt in Gap history



Oprah Show

RED holidays

• Christmas, Valentine’s Day

• Show RED line is the perfect gift for holidays

• “spreading peace and love this holiday season”





Grammy’s green room to RED

• Grammy’s in February but Gap announced the transformation during the launch

• Generated buzz with media



Educating Public Left Out• Many people know

what RED is • Most do not know

where the money is going

• Television advertisements needed to give the message

• Long term?





Marketing and Media

• Print, outdoor (buses, major metropolitan areas)• Vanity Fair, Vogue, W, Rolling Stone and O, The

Oprah Magazine– Annie Leibovitz and powerful celebs– 500,000 or over of each sold on stands

• $7.8 or $25• Oprah-150 million impressions• Bloggers spread fire, majority support• Campaign of the Year 2006 in Promo Magazine



Immediate results • Sold out RED online within 2 hours of

Oprah show

• 30,000 sign up for alerts

• $10 million in profit (determined after marketing costs)

• Store profits down 7 percent in 4th quarter



Skeptical opinions



• Impact proportional to advertising

• Exact figures not disclosed

• Profits from disease marketing

• Consumers should just donate to charity

Results: RED wins but does Gap?

• Conflicting figures are incorrect: Ad Age

• Short term success, long term?

• RED sales are up but company is failing

• Shows dedication to Africa

• Changes brand in mind of consumers

• Contributes most to Global Fund



The Gap still cannot sell

• While Gap created the hip trendy and socially responsible RED that consumers were looking for, the company itself did not change much of their other clothes

• Traditional lines that were not selling pre-RED still are not selling

Gap RED and customers

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Questions

Responses of 30 people

Heard of RED?

Buy RED for charity?

Socially responsible?

Shop Gap now more than before?

Date post:	16-Dec-2014
Category:	Health & Medicine
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Gap

Health & Medicine