Ansoff Matrix of GAP

GAP Inc. is a retail accessories, clothing, and fashion American multinational company. Doris F. Fisher and Donald Fisher founded the retail fashion clothing company in 1969. Today, we’ll discuss the Ansoff matrix of GAP; and its four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification growth strategy of Ansoff matrix business example.

Marketing Penetration Strategic Campaigns of GAP

• Precisely targetint the right fashion loving audiences
• Following corporate social responsility and establishing positive brand image
• Personalized and customized offers
• e-Gift cards to the loyal customers
• Relatable and personalized marketing campaigns
• Free and speedy delivery
• Production recommendations and rating

Top Selling Markets and Geographical Regions of GAP

• South American and Middle East – 1.45%
• Europe – 2.33%
• Asia – 3.93%
• USA – 83.74%
• Canada – 8.55%

Latest and Best Selling Collection of GAP

• Smocked Neck Sripe Blouse
• Wool Car Coat
• Mockneck pullover sweater
• Wide-leg pants
• Fur jacket
• High rise crop denim straight jeans
• Classic girlfriend blazer
• Front button skirt
• Long sleeve turtleneck top

The Ansoff matrix of GAP would focus on the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the GAP Ansoff matrix company example as follows;

Ansoff Matrix of GAP

Let’s discuss the four main growth matrix strategy analysis quadrants of the BCG matrix of GAP as the BCG matrix company example; they’re as follows;

Market Penetration Strategy of GAP

The market penetration quadrant in the GAP Ansoff matrix business example as a growth matrix strategy has the lowest risk in the growth strategy. It is because here the fast-fashion brand sells its current products and services in the existing customer market. However, the fast-fashion market is growing, and the market penetration growth strategy is possible.

I-Aggressive Marketing & Advertisement

In order to penetrate the existing customer market with the current product portfolio; GAP runs aggressive marketing campaigns on various media channels, social media, and digital media. It helps the company to create desire among fashion lovers for unique designs and styles and increases sales as a result.

II-Brand Ambassadors

GAP hires various celebrities and public figures as brand ambassadors. They have a huge fan following and their brand endorsement helps the company to further penetrate the market and approach new segments of the customer market.

• Babil Khan
• Kritika Khurana
• Saad Sultan
• Ellen DeGeneres

III-Discounts & Offers

GAP launches various types of offers and discount promotions like weekly sale offers, holiday sale offers, limited discount offers, and others. These types of offers strike the attention of customers and compel them to make a quick shopping decision. As a result, it amplifies conversion rate, sales, and revenue to the company.

IV-Store Setting & Environment

GAP creates the interior designs of its stores so unique, charming, and attractive that they compel the customer’s attention to purchase something. It helps the retail fashion brand to penetrate the market, attract new customers, and increase its sales.

Market Development Strategy of GAP

The market development quadrant in the GAP Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your fast-fashion market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Global Marketing Expansion

GAP has established a network of 3400 stores in roundabout 45 countries across the globe. The company’s e-commerce platform and online store is running its business in 90 countries. However, the retail clothing brand is building new stores in the new geographical regions and markets worldwide.

II-Strategic Alliance

GAP develops strategic alliances with other brands and stores like Walmart, IMG, Lifestyle Brands, and others. It helps the company to increase the exposure of its brand when other retailers showcase GAP’s fashion clothes in their stores. 

Product Development Strategy of GAP

The product development quadrant in the GAP Ansoff matrix business example as the growth matrix strategy has a higher risk than the market penetration strategy. It is because here you launch a new product service in the fashion line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-New Designs & Styles

GAP invests a significant amount of capital resources in the creative design team for the development of new fashion designs and styles. The objective is to introduce new fashion clothing designs and styles in its stores and attract the attention of customers.

II-Quick Launch

The retail clothing and fashion industry has become highly competitive in recent years. As soon as the introduction of a new design or style is in the market, the low-cost mimicking brands would launch counterfeit products in the market. It poses a great challenge to the retail brand and launches such a product that is unique, signature, difficult to copy, and satisfies the needs and demands of customers.

III-Product Variants

GAP pays significant attention to customer feedback, comments, and reviews. While introducing new products in the market, the retail brand improves the existing product designs based on customer feedback and introduces the new improved product variants in the market.

Diversification Strategy of GAP

The diversification quadrant in the GAP Ansoff matrix business example as a growth matrix strategy has the highest risk growth strategy than all three previous growth strategies. It is because here you launch a new retail fashion clothing product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

GAP has successfully expanded its retail clothing and fashion portfolio and entered 45 countries across the world. It has always been a risky strategy, but the retail clothing brand manages to pull it off. The company plans to do the same in the upcoming years.

Conclusion: GAP Ansoff Matrix Company Example | Ansoff Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of GAP; we have realized that GAP is the world’s leading retail clothing and fashion brand. If you are learning about the GAP Ansoff matrix company example; then you should keep in mind the abovementioned growth matrix strategy quadrants; market penetration, market development, product development, and diversification.