Chapter 11 : Developing and Managing Products

       Banana Republic is known as an innovative and fast moving retail company. Like other companies such as Inditex’s Zara, Banana Republic is a company that can be considered a part of the “fast fashion” movement of the past few years. This means that retailers are constantly changing product in order to keep up with changing trends and consumer wants as opposed to releasing collections every season. As a result of this, their product life cycle is somewhat skewed; they don’t have just one product making its way through the life cycle but rather a steady supply chain. However, it is clear that Banana Republic products are not in the decline stage, since the company is still growing and expanding.

Banana Republic and H&M : Two companies constantly releasing products to consumers

      
       This expansion comes as a result of Banana Republic’s constant adaptation to the changing fashion environment and its customer base. There is always new product development since the company is constantly making products the consumers want. They base this development off of customer service surveys as well as market research. Also, since Banana Republic is heavily customer service based, this development applies to its services as well. An example of this is when Banana Republic created their Reserve-In-Store service for customers. Banana Republic is innovative with its products and services, however, it can be seen as a store trying to please its customers, in which case they focus more on what their customers want as opposed to trying to be creative. A good example of this is during their last winter 2013 collection. Banana Republic attempted to stand out by creating their clothing in tons of colors and styles rather than just focusing on what the consumer really wanted. That is why in the future they are shifting their model to specifically provide clothing in the colors and styles that sell the best and please the customers. However, Banana Republic still continues to use a team of experts to develop new products that will keep the customers returning to its stores.

Chapter 12 : Services and Nonprofit Organization Marketing

       Not only does Banana Republic treat their customers with care, but they also treat their employees well. They are a company that utilizes internal marketing, which is when a company is treating their employees as customers by developing systems and benefits that satisfy their needs. Yes, they may be looking for employees to purchase product, but they do this by providing the employees with all kinds of different benefits. According to a store employee, one example is their employee discount, which is an incentive for employees to purchase clothing not only in Banana Republic, but at all the Gap Inc. brands. The company also allows employees to extend this discount to spouses of employees as well as in certain cases partners (for same-sex relationships). Banana Republic and Gap Inc. are some of the few company's that actually recognize LGBT relationships (non-marriage) with their discount. Banana Republic also allows employees to take out Banana cards which allows employees the freedom to participate in regular customer sales. Banana Republic offers their employees these discounts and opportunities because they want to show their employees appreciation for what they are doing for the business. Not to mention, if employees are able to buy their clothing due to the discounts awarded to them, they are more likely to wear that clothing in store. This is a cheap marketing technique, since customers and people outside the stores will see Banana Republic clothing being worn by the employees.
 

The Banana Republic/Gap Inc. Employee Discount Policy

       As mentioned in previous posts, Banana Republic is a very customer service oriented business. One thing they are known for is their reliability and responsiveness to customers. Someone looking to buy Banana Republic clothing knows that they can walk into any of the store locations and be helped immediately. If they can’t find an item, an employee is there willing to find it or locate it at another store. They offer customers empathy when they come in looking for clothing for a specific reason and they go that extra mile to make the customer’s experience a great one. This type of service is intangible; it’s not like the product that they can buy. Banana Republic goes above and beyond just providing a core service because they really want to be seen as a business that cares for its customers. 

Chapter 10 : Product Concepts

       Banana Republic is a distinguished brand that many people associate with good quality products and customer service orientated employees. The products this company offers can be considered shopping products, which essentially means that the products are usually more expensive than a convenience product and they can only be found in a few stores. Typically, these kind of products don't have substitutes, but the consumer does their research in order to find the right product for them. In Banana Republic’s case, there are substitutes for clothing, but a customer would consider the style they are aiming for, their price range, lifestyle compatibility, etc. and make the decision whether to purchase their products or not. There are two types of shopping products: homogeneous and heterogenous. Homogeneous shopping products are mainly for consumers looking for products at the lowest price with the desired features. Meanwhile, when a consumer is shopping for heterogenous shopping products, one can’t really compare them because the price, quality, and features are so different. Banana Republic’s products would thus be considered as heterogenous shopping products. 

       Banana Republic’s products are also released in product lines, typically during each new fashion season along with the company’s different ad campaigns. These lines can include anything from handbags and jewelry to suiting to every day casual attire. In terms of branding, Banana Republic has made great efforts in establishing themselves as a company of distinct quality and customer service and their products are evidence of that. Also, the brand name, including the Banana Republic logo lettering is distinct and known to be that of the company. 

Banana Republic's logo with its iconic lettering

       Hand in hand with Banana Republic’s aim to provide the best customer service possible, the company also offers guarantees on their products to help satisfy their customers. Banana Republic offers an express warranty, meaning they have a written guarantee for their customers. Should the customer need to return a product or they were sold an incorrect item, the Banana Republic written policies would help protect the customers. Not only that, but the policies and guarantees provide customers with knowledge. This is just another way in which Banana Republic is working for their customers. 

One of Banana Republic's guarantees on returns and credits

Chapter 17 : Personal Selling and Sales Management

      Since Banana Republic is a company so heavily concerned with customer service, their selling strategy seems to be that of relationship selling, meaning that they want to interact with their customers so they can get to know more about them and what they want to get out of their experience at Banana Republic. This process helps build, maintain, and enhance customer-business relationships and ultimately long term satisfaction from the customers. This is carried out by the Banana Republic store employees, either through general interactions or services the company offers such as personal shopping and styling. 

  Banana Republic is very customer-centric, and although they pay attention to certain trends happening in the fashion industry, they never fail to consider the opinion of the consumer. The company is always gathering information to help better the customer experience in their stores and there are several touch points such as customer surveys and requested services that help Banana Republic acquire this information. 

An example of a survey given to Banana Republic customers

       As mentioned previously, a huge goal of Banana Republic’s is to retain loyal customers. They do this with their loyalty rewards program, or their Banana card. This rewards program offers Banana Republic’s loyal customers additional discounts and rewards to apply towards future purchases. 

An exclusive discount to loyal customers [cardholders] at Banana Republic

Another exclusive discount available to loyal customers of Banana Republic

       Banana Republic has a pretty straight forward business model, and therefore it requires no sales presentations, negotiation, or cold calls (speaking in terms of in-store employees, not upper management). The in-store employees are focused on developing those long term relationships with its customers and the strategies they have put into place in order to do so continue to bring the company success.