Gap Case Study Report

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Rutgers University *

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Marketing

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Jan 9, 2024

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Predicting Consumer Tastes with Big Data at Gap Case Study Analysis Prepared for Professor Ozge Ergin Marketing for Managers Prepared by Tyrel Samson October 15, 2023
Overview Summary Gap Inc. established in 1969. Art Peck became CEO in 2015, implementing a digital strategy using big data analytics. Use of Amazon to expand distribution network and increase global sales. Gap developed a portfolio of brands that competed in all fashion/clothing categories. Old Navy first company to ever reach 1 billion in sales 4 years after launch. Drexler was critical for the success of GAP. 1983 sales 480 million, 2000 14 billion. Peck’s innovative Why is gap doing poorly in 2017? Gap failed to adapt to changing customer behaviors and market trends. Inability to offer products aligned with customer needs. Lack of innovation to cater to basic and fashion-forward clothing products. Traditional market research methods were ineffective. Lack of customer engagement to understand changing tastes and preferences. Ignored the social construction of fashion preferences. Ineffective design directors and product innovation. Unable to keep up with innovation in ‘fast fashion.” Was Peck correct in firing his creative directors and replacing them with a big data-driven innovation process? Why or why not? Peck replace creative directors with data analytics for product innovation. This was a good decision for the Old Navy and Gap brands, less applicable to Banana Republic. Peck Embraced big data analytics to predict customer behaviors.
Technology adoption can predict customer behavior and fashion trends. Technology adoption is essential for remaining competitive in the clothing industry. Creative designers were too restrictive for the more casual lines. Should Peck allow any of Gap Inc.'s brands to be sold on Amazon and if so, which ones? Why? Use Amazon for broader distribution and data mining. Sell Old Navy / GAP brands through Amazon to access new customers and data. Online platforms like Amazon can increase sales and provide valuable market data.
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