Chapter 4 : The Marketing Environment

       In terms of Banana Republic’s marketing environment, the company places focus on several different aspects such as demography and consumers’ incomes. In fact, the company has created an entire consumer profile based on market research they conducted. Their target market is mainly males and females belonging to Generation X and Generation Y with a percentage of baby boomers belonging there as well. The Banana Republic customer values what Banana Republic calls “versatile work,” which means clothing that can be worn to both work and during free time. The Banana Republic customer also enjoys professional and classic styles. Looking at psychographics, they are fashion forward individuals and like to have more sophisticated outfits or to look sharp (men). The majority of these consumers are Caucasian and have completed some sort of undergraduate education.

As for economics, the Banana Republic consumer income range can be seen below :

Income Range	Percentage of Banana Republic Consumers
$0 - $50,000	10%
$50,000 - $100,000	23%
$100,000 - $150,000	36%
$150,000 +	31%

   As one can see, the company’s main consumers typically have a higher annual income. Due to Banana Republic’s higher prices, those consumers with the higher incomes are the regular Banana Republic consumers. 

       A great example of targeting this group of people was when Banana Republic launched their collection based off of the popular “Mad Men” television show. It was a  clear effort to make a mature collection aimed at consumers in their mid-twenties to middle ages with college degrees and professional employment. The prices of this clothing were higher, which demonstrates the company was not aiming to market this campaign to a younger demographic. 

Banana Republic's Mad Men Collection, displaying their business-like attire marketed to employed consumers 

Chapter 3 : Ethics and Social Responsibility

       Banana Republic is a company known for its social responsibility initiatives and desire to take into consideration society’s welfare. One of the most evident ways Banana Republic is demonstrating social responsibility is through green marketing. In 2008, Banana Republic took into consideration customer opinions and began to create clothing of organic cotton and sustainable fibers. Not only does the company market products that are good for the environment, but it is very committed to becoming an all around environmentally-friendly brand. Below is an excerpt illustrating Banana Republic’s continued environmental efforts.

Banana Republic's statement on environmental efforts

      
       According to Banana Republic’s website, the company is trying to make their stores as “green” as possible. They are partnered with the U.S Environment Protection Agency's Climate Leaders Program and are attempting to help lower greenhouse gas emissions. Not to mention, they have made the actual store locations “greener” by introducing energy-efficient halogen bulbs in all stores and by using recycled materials such as wood and tiling to actually build the stores. They also installed a solar system power unit at their distribution center. Lastly, they have a denim clean water program, which requires their laundries to follow strict guidelines to maintain water quality when dyeing clothing. 

   
       I myself stepped into a Banana Republic recently to get some more information about Banana Republic’s social responsibility programs and ethical guidelines. The manager of that store mentioned that most of their clothing is imported from Italy and Bangladesh and assured me that those making the company’s clothing worked under good conditions. Not to mention, as part of the bigger Gap Inc., women garment workers employed by the company have the opportunity to participate in the P.A.C.E program. According to the Gap Inc. website :

        "The Gap Inc. P.A.C.E. (Personal Advancement & Career Enhancement) program offers female 
        garment workers the life skills, education, and technical training they need to advance at 
        work and in life."

These are just a few ways in which the company is demonstrating its ethics and its treatment of employees. 

For more information regarding Banana Republic's Environmental Efforts, click here.

For more information regarding Gap, Inc.'s Social Responsibility campaign regarding the community, the environment, its employees, or human rights, click here. 

Some of Banana Republic's efforts to be "green"

Sources :

"Environmental Efforts." Banana Republic. Web. 16 Feb. 2014. <http://bananarepublic.gap.com/customer

       Service/info.do?cid=16552#packaging>.

"Our Commitment." Gap Inc. Web. 16 Feb. 2014. <http://gapinc.com/content/gapinc/html/social_responsibility/

       our_commitment.html>.

Chapter 2 : Strategic Planning for Competitive Advantage

       Banana Republic, like the other Gap, Inc. companies, has strength in it’s strategic plan. In a very cluttered market, Banana Republic focuses on it’s customer services to act as the point of differentiation from its competition. In this way, Banana Republic utilizes product/service differentiation competitive advantage. Rather than place emphasis on cost competitive advantage in their efforts to win market share, Banana Republic provides something more unique and valuable in order to create an “authentic relationship” and connection with their customers. One of these services is “ship from store,” described as a service that “takes advantage of Gap Inc.’s advanced inventory engine to seamlessly connect online demand to in-store inventory.” Basically, if a customer needs an item and they can’t find it in store, an associate will locate it elsewhere and have it sent to the customer’s door, leaving the hassle of going to another store out of the picture. 

An advertisement for the new service, "Reserve In Store"

       Another way Banana Republic recently differentiated itself from its competition was by introducing a brand new service called “Reserve In Store.” This service is an online concierge service that allows customers to reserve items through the Banana Republic website that can later be picked up and purchased in store. None of the company’s competitors offer this type of service to their customers, allowing Banana Republic to stand out amongst other brands. According to Julie Rosen, Executive Vice President, Banana Republic North America, “Reserve in Store helps to make our customers’ shopping experience seamless and efficient so that they can get the latest, covetable Banana Republic pieces with ease.” The company is determined to gain competitive advantage through its customer services all while bringing consumers top quality fashion. 

A snapshot of "Reserve In Store" on the Banana Republic website 

Sources :

Banana Republic. Gap, Inc. Web. 9 Feb. 2014. <http://bananarepublic.gap.com/>.

"Gap and Banana Republic Make Shopping Easier for Customers this Holiday Season." Gap, Inc. 20 Nov. 2013. Web. 9 Feb. 2014. 

       <http://www.gapinc.com/content/gapinc/html/media/pressrelease/2013/med_pr_Gap_Inc_Announces_Reserve_

       In_Store.html>.

Rooney, Jennifer. Interview with Catherine Sadler. An Inside Look At Banana Republic and Its Brand Strategy. Forbes. 04 Dec. 

       2013. Web. 9 Feb. 2014. <http://www.forbes.com/sites/jenniferrooney/2013/12/04/video-an-inside-look-at-banana

       -republic-and-its-brand-strategy/>.

A Brief History of Banana Republic

  Banana Republic is an international clothing and accessories brand. It was originally founded in 1978 by Mel and Patricia Ziegler in Mill Valley, California as a two-store safari and travel themed clothing company. In 1983, Gap, Inc. acquired the company and began to transform the Banana Republic image into one of higher quality, design, and class. Banana Republic has since become one of the country’s most well known mainstream luxury clothing retailers for men and women. 

  Throughout it’s 35 years as a company, Banana Republic has opened up over 700 retail locations worldwide, throughout both their specialty and outlet channels. They also have a growing presence online, with their website reaching and shipping to over 75 countries worldwide. Their global footprint is expanding, with recent locations opening up throughout Europe and Asia.

  Not to mention, Banana Republic embraces technology and uses it as a tool to succeed in its market. The company has a strong social media presence, similar to all the Gap, Inc. brands. Banana Republic also recently launched “Reserve-In-Store,” an online concierge service that allows customers to reserve items through their website that can be picked up and purchased in store.This has helped set the company apart from competitors and demonstrates the company's ability to adapt to new technological changes.

  With the company now having expanded its product (Banana Republic produces footwear, personal care products, casual attire, and even house ware), online presence, and its store locations throughout the world, it is quickly becoming a strong international competitor in the fashion market. Their constant innovation, devotion to customer needs and service, and their top quality product will lead them to future success. 

The Original Banana Republic, 1978

A current Banana Republic store

Banana Republic's most recent Global Footprint Map

Sources :

Banana Republic. Gap, Inc. Web. 1 Feb. 2014. <http://bananarepublic.gap.com/>.

"Banana Republic." Gap, Inc. n.d. Web. 1 Feb. 2014. 

      <http://www.gapinc.com/content/gapinc/html/aboutus/ourbrands/BananaRepublic.html>. 

Schawbel, Dan. "The True Story Behind the Banana Republic Brand." Forbes. 2 Oct. 2012. Web. 1 Feb. 2014. 

      <http://www.forbes.com/sites/danschawbel/2012/10/02/the-true-story-behind-the-banana-republic-brand/>.