Brazil 2013

Oí Brasil… I AM

2016

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Oí Brasil… I AM

Oí Brasil… I AM

2011

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GAP INC.

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GAP

Iconic. Inventive. American.

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Global Apparel Industry

In 2014, the industry is forecast to have a value of $1,162.8 billion an increase of 12.7% in 5 years

Source: Data Monitor, 2010

Demand in Emerging Countries is Rising

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Expanding to Latin America

Chile 2011Colombia 2012

Brazil 2013

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Why Brazil?

Economic GrowthDemand Growth

FIFA 2014 & Olympics 2016American Culture Fit

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Competitors

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Target Competitors

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Marketing Goal

Successfully enter the Brazilian market, thereby increasing the profitability of Gap as a global brand.

Marketing Objective

10 apparel companies in terms of market share in Brazil by 2016. September 21st 2013

Flagship store in Sao Paulo

6 month later

Rio de JaneiroBrasilia

2016

Top 10 in Brazil

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Core StrategyRule of 3: 3 stores in 3 big cities in 3 excellent locations

Sao Paulo

Sao Paulo – September 2013

Rio de Janeiro

Rio de Janeiro- March 2014

BrasiliaBrasilia- March 2014

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Strategic Alliances

Contract with Brazilian flip-flop company, Havaianas -

Havaianas by Gap

A new, younger, trendy line designed by Brazilian designer, Alexandre Herchovitch- I am Gap by Alexandre Herchovitch

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Targeting and Positioning

“Classic American style, everywhere”

Gap wants to be the premier seller of the American style while creating local ties in Brazil

Target Market: Ages 15-40, with purchasing power and an interest in the American style.Looking for a balance between quality, comfort and price

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Risks

Sorry! No availability Taxes! taxes! taxes!Oh no! We are too good for you!

Action Plan…

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Pricing

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Product Development

The Classic American Style

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Product Development…

Brazilian designer Alexandre Herchcovitch

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Product Development…

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Sales and Distribution Channel

Sao Paulo Rua Oscar Freire Street

Rio de Janeiro Leblon Mall

Brasilia Brasilia Shopping

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“Oí Brazil... September 21, 2013”

Advertising and Promotion

Buzz campaign

Opinion LeadersJournalistBloggers

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Print AddsUrban Spaces

Buzz Campaign…

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Buzz Campaign…

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Gap Store Launch event

Fashion Show + Cocktail Party

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Oí Brasil… I AM GAP

Gap Store Launch event

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Gap Store Launch event

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Gap Store Launch event

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Gap Store Launch event

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GAP surprise bag for guests

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Online campaign: Social Media and Web page

BRASIL

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“MONEY WILL COME WHEN YOU ARE DOING THE RIGHT THING” – Mike Phillips

Finances

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Finances: 3 year analysis

Sao PauloSeptember 2013

Brasilia and Rio de Janeiro March 2014

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Revenues per square foot

2013: $381 per sq ft

2014: $383 per sq ft

2015: $385 per sq ft

Revenues Growth

75% year 1

85% year 2

100% year 3

Cost of goods sold 60% of revenues

Other expenses 26.7%Investment per store Sao Paulo: $400,000

Brasilia and Rio: $250,000

Taxes 62.25%

Finances

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WE BLEND ALL THIS NUMBERS AND…

NPV: $5.7 millions

Year of repayment: 2014

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Contingency Plan

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Q&A

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THANK YOU!