According to an article on Target Market News website, Gap Inc. is “looking to younger blacks and Hispanics to lure new customers.” The company is doing this not because they really want to appeal to these groups, but because their bottom line says they need to.
The story opens by saying “that The Gap Inc. is hoping to reverse less-than-expected sales at its U.S. retail outlets by re-positioning its marketing strategy.” If further states that “the marketing budget will be shifted “disproportionately to acquiring new customers.’ The new target will be younger and ethnically diverse consumers, meaning specifically African-Americans, Latinos and Asians.” The article continues by reporting that “The Gap’s marketing expenditures had been focused on holding onto its traditional customer base during the tough economic downturn. There were no specific plans announced yet on selecting an African-American ad agency for new creative, or using more black media outlets.”
So, here are my thoughts on the Gap’s strategy.
- As I stated early, they want the money of minorities, they could really care less about these group. If they weren’t losing money, these groups would not be in their marketing budget.
- The Gap had to “disproportionately shift their market budget.” It sounds to be that they are really stretching to reach out to people they really don’t want, but their bottom lines says they have to do it.
- And, the article even states that they were holding tight to their “traditional customer.” Unfortunately, it’s not keeping them afloat.
- Lastly, I’m willing to bet that the ad agency they select for the campaign will not be representative of the groups to which they are trying to appeal. Sigh…
Read the full story at Target Market News. What are your thoughts on the Gap’s new marketing strategy?