Check out the marketing news for this week! Happy Thanksgiving!
Gap is Back with Legendary Marketing?
CEO Richard Dickson left Mattel back in August and claims Gap will be restoring their effectiveness without increasing spending. He insists they are still a “legendary marketing force.”
Net sales decreased 7% in the third quarter and online sales decreased 8% in 2022 so the company is in dire need of media and marketing improvements. (Rogers, 2023) There is also a need to ramp up the Banana Republic brand, which has suffered an 11% decrease.
Kanye West had something to do with this downfall. Even though Gap sales have plummeted this period, their yearly sales only dropped 1% to $2.13 billion and Kanye contributed to a 6% drop with the Yeezy controversy last year. Storytelling and diversity will be the focus of their new approach. Banana Republic rebrands as a “quiet luxury” and Athleta will prioritize “brand right marketing.” (Rogers, 2023)
90% of consumers know about Gap, but they will have to go above and beyond their October holiday campaign and stick to Dickson’s mission to rejuvenate Gap.