Chapter 14 : Marketing Channels and Retailing

       Banana Republic is one of the several daughter companies owned by Gap, Inc. In a sense, Banana Republic operates as a series of chain stores, in that one Banana Republic store is part of a group of the same stores owned and operated by a single organization (or in this case, a company [Gap, Inc.]) .The company has over 600 stores located internationally with recent franchise agreements in Asia, the Middle East, and Europe. Due to these franchise agreements outside of the United States and Canada, Banana Republic is also seen as a franchise. 

       If one were to open their own Banana Republic store there would be several rules to follow based on company standards such as continuing with the Banana Republic atmosphere. This basically means décor within a store must be up to Banana Republic’s standards and must follow license/agreement guidelines. There are also specific guidelines as to how to arrange the stores layout. This is based on research conducted by the company which found out the most optimal way to layout the stores in order to entice a customer to purchase their clothing. Banana Republic doesn’t want to be associated with something they don’t stand for or think does not represent their brand well, so that is why these rules are set in place for new store openings.

A Banana Republic storefront, up to the typical Banana Republic layout standards

     Banana Republic is also well known for its high level of service and quality and can therefore charge more compared to a Banana Republic factory outlet.  These factory outlets are an off-price retailer that is owned and operated by a manufacturer and in the case of Banana Republic, their factory outlets sell lower priced clothing and different clothing lines (specific for BR factory outlets) than a regular Banana Republic retailer. According to an associate at Banana Republic, most of their clothes are mainly from Bangladesh and Italy. These clothes and other products are later transported to a warehouse and from there they are dispersed to their final destinations at retail stores worldwide. 

  

       For many years, Banana Republic has been working with intermediaries but lately they have been starting to focus more on non-traditional channels. Banana Republic allows for nonstore retailing with their online website and customer service phone line. This means that the consumer can shop from home instead of visiting an actual store. By using Banana Republic´s new e-tailing, this requires the consumers to have a phone or a computer with access to the internet, which is typical amongst most consumers these days. This new way of selling things has boosted Banana Republic’s yearly income by around 20%. Needless to say, Banana Republic´s leadership teams really know what to focus on.

Banana Republic's website, their e-talining effort

An example of Banana Republic's m-commerce 

Chapter 6 : Consumer Decision Making

       One of the most important part of marketing is to understand your customers behavior and what they either want and/or need from your business. In order to do, a marketer must follow the consumer decision-making process, which consists of five steps that customers typically use or “go through” when buying services or goods. 

       First, the customer must experience recognition. After talking to an Banana Republic employee, it is evident that the company services the wants of a portion of its customers. However, the company also focuses a great deal of attention to a significant amount of consumers who enter their stores with a need. This need can be anything from a woman who just lost a significant amount of weight and is looking for a new wardrobe or a student who just graduated and is looking for a suit for his or her new job.  

       After recognizing a need or a want, consumers will then search for information about the product that they are interested in. This search for information can take or have many forms. Banana Republic focuses a lot on tapping in to an internal information search in the minds of their consumers, which is the process of recalling a past memory [about their experience with the company]. Banana Republic wants you to associate them with high quality clothes and helpful employees and hopes that good experiences in the past will draw customers back into their stores.

       Once a customer has realized his or her needs (or wants) and has decided what kind of product he or she wants, it is time to decide where and how to get it. Banana Republic has certain competitive advantages compared to its competitors such as their Reserve-In-Store online concierge service (as mentioned in Chapter 2) which its competitors don’t currently offer. This is one reason as to why Banana Republic is a leading company in the clothing business.

       Next is the actual purchase. Because of the high quality and good service that Banana Republic offers, their products tend to sell at a higher price. This leads us directly to the last step, which is post purchase behavior. Consumers want to get what they expect and they want to know what they are buying. When customers buy products at Banana Republic, they know for sure that the product is of good quality coming from a reputable business. That is how they continue to create and maintain a large customer pool.

A Banana Republic customer

Banana Republic's Spring 2014 campaign demonstrates the luxurious and sophisticated clothing the company is known for

Banana Republic's Spring 2014 campaign reaches out to the LGBT community and illustrates the company's support of gay rights (like its parent company, Gap Inc.)

Chapter 5 : Developing a Global Vision

      Banana Republic is an expanding company with a growing international presence. Although most of their stores currently reside in the United States and Canada, the company (along with their parent company, Gap Inc.) have big plans for the brand to reach global markets. They originally made their first appearance in an international market in 2005, when the company opened its first store outside North America in Tokyo, Japan. And just two years later, Banana Republic opened another store in a different Asian market, Seoul, South Korea. Ever since, Banana Republic’s global vision has been growing. The next step in their plan is to do a major push in Europe along with adding franchise outlets in Africa and the Middle East. The company also wants to expand its locations in Asia, where disposable income is rising, making those countries perfect markets to penetrate. However, the company is a luxury brand, so as they expand they are taking into great consideration the markets in which they enter.

       In terms of their strategy, when it comes to opening new stores in new countries the company believes it is best to go all in. By the end of 2014, Banana Republic hopes to increase its number of stores to 700, with new international locations added. All their new stores have a common factor, that being that they all are located in big, heavily populated cities and in “fancy” areas where there are likely to be the type of consumers that purchase Banana Republic clothing. Some of Banana Republic’s earliest global stores in Europe opened in France and Italy, since the company desire to be highly recognized by the fashion world. Banana Republic also ships to nearly 50 different countries, which also aids in spreading the company’s product and brand all over the world.

Banana Republic now offers international shipping to nearly 50 countries worldwide

       The company has also expanded its outreach by putting itself in the world of social media. Banana Republic can be found on Facebook, Twitter, Pinterest, and Instagram. By having a social media presence, the company is able to expand internationally. Consumers far and wide have the opportunity to interact and connect with the company. They can see what the company is, what it represents, and the type of product it offers. Not to mention, the company can also learn about their consumers through the use of these sites and apps. Social media is a strong marketing and learning tool for this company. 

Banana Republic's Facebook page

Banana Republic's Twitter page

Banana Republic's Instagram 

Sources :

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

"Gap Inc. To Grow As Banana Republic Plans To Establish An International Presence." Trefis. 18 Nov. 2011. Web. 3 Mar. 2014.   

       <http://www.trefis.com/stock/gps/articles/85152/gap-inc-to-grow-as-banana-republic-plans-to-establish-an-

       international-presence/2011-11-18>. 

"International Shipping." Banana Republic. Web. 3 Mar. 2014. <http://bananarepublic.gap.com/browse/info.do?cid=9476>.

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/>.