Mini Case Study 1:

A legendary company which is very successful in reacting adequately

to the changing market environment is Mattel, Inc. with its Barbie
Doll. Since its launch in the year 1959, Barbie has been a best-selling
fashion doll. The doll is known by millions of people all over the world
and especially young girls wish to own one Barbie at the very least.
One main reason for Mattels success has been the continuous
redefinition of its brand.
1. Please use relevant information on the history of Barbie you can
find under www.barbiecollector.com to demonstrate how Mattel,
Inc. modified its doll to effectively respond to changing
environmental factors.
2. Outline the steps involved in the analysis of Mattels initial
strategic situation and select appropriate tools for the steps you
chose.

Answer:
1. Mattel has been very successful in redefining the brand
continuously. Many examples can be found in the history of
Barbie:
Barbies with changing professions: stewardess, model, nurse,
astronaut, etc.
Barbies reflecting different ethnical groups: afro-american,
Hispanic, Arabic, Asian, etc.
Barbies following the current lifestyle: Fashion Barbie, Fitness
Barbie, Baywatch Barbie, etc.
2. Different steps helped Mattel to build up its strong brand.
The analysis of the global environment: Mattel has been
successful in detecting changes in society, macroeconomics,
politics, law, technology to align its marketing strategy
accordingly. Changes in the society (e.g. the image of
professions), in macroeconomics (from a luxury doll to a doll
for everyone), in politics and law (dolls with a dark skin during
the civil war in the US), technology (dolls able to speak). One
promising method to analyze those factors could have been
the PEST analysis (or PESTLE).
The analysis of the relevant market: Market characteristics
(changes in income), customer analysis (Barbie as a collectors
item; Barbie meets new friends from different ethnical
groups).

Mini Case Study 2:

The Gap, Inc., a well-known American clothing and accessories retailer
based in San Francisco, California, was founded in 1969. Gap, Inc.,
which has about 150,000 employees and operates in over 3,100
stores worldwide in (2007), is the largest specialty apparel retailer in
the U.S., and the second largest apparel retailer in the world.
Especially with regard to customer segmentation, GAP Inc. seems to
be very successful and therefore, it is worth to explore this company
in more in detail. For more information, please have a closer look at
the companys webpage under www.gapinc.com.
1. Please outline how the company is structured with a special focus
on which brands are owned.
2. What is Gaps segmentation strategy? Specify which segmentation
criteria are used for the different brands and how the marketing
strategy for the brands differs.

Answer:
1. Gap Inc. wants to appeal to unique markets by developing
multiple formats and designs. The company has four primary
brands: Gap, Banana Republic, Old Navy and Piperlime.
Banana Republic can be seen as high-level / upmarket brand.
The Banana Republic stores try to convey a more sophisticated
image for an upscale customer seeking "modern, accessible
luxury". To set itself apart from Gap as a more upmarket
brand, Banana Republic occasionally buys and refurbishes
historic buildings for its retail locations.
GAP as a medium-level brand and the GAP stores appeal to a
broader demographic segment. Its target customers are
younger generations.
Old Navy is the basic brand. Customers largely are fashion
oriented yet price conscious teens to adults. Old Navy is
designed to appeal to families and younger customers by
emphasizing "fun, fashion, and value" through a store
experience that aims to deliver "energy and excitement". In
addition to clothing, Old Navy also sells a variety of accessories
such as shoes (their flip-flops are very popular), handbags,
etc. With regard to advertisement campaigns the following can
be said: The most notable aspect of Old Navy's television
advertisements is, that they are kitschy, satirical and have a
retro feel to it. In sharp contrast to the Gap's advertisements,
Old Navy's feature dynamic family members sporting their
clothing line while engaging in wholesome family activities,
such as barbecuing.
2. A combination of segmentation criteria is used by Gap, Inc.:
sociodemographic characteristics (e.g. customer age, income),
psychographic variables (e.g. lifestyles, attitudes), behavioral
patterns (e.g. consumption patterns, price sensitivity), and
benefit-related aspects (e.g. quality-consciousness), Gap
distinguishes clearly between the three brands Banana Republic,
GAP, Old Navy, and most people even dont know that the three
brands belong to the same company. Ad campaigns and store
locations are adapted to the unique image of the different brands
ad their intended positioning.