Can New CEO Glen Murphy Revamp Gap Inc. ?

The once iconic American brand has since faded in the eyes of consumers in recent years, a driving force in Gap Inc.'s two year profit slump. Gap Inc has its share of issues, but the most significant seems to be simply its inability to capture its target customer and their consistent failure to produce an inspiring product offering. This trend is likely linked with Gap Inc's high turnover of executive employees who essentially are in charge of a brand's direction. It is possible that Gap has relied too heavily on its established brand name, leading the company to become overconfident with expansion and new growth market potential while subsequently loosing sight of their core product, message, and brand identity.

To combat Gap Inc.'s downturn is newly appointed CEO Glen Murphy. With a reputation in brand turn-arounds, Murphy has the difficult task of re-vamping the Gap brand and cultivating a creative atmosphere for his design and merchandising teams. Internally, Gap Inc has been noted as being a "revolving-door of talent" primarily in the merchandising department and design team.

The executive high turnover, which Murphy pledges to stop, has sent mixed messages to investors, another factor contributing to Gap Inc.'s lagging stock price and sales growth. Although Gap's low price-to-earnings ratio can be a sign of a mature or established company, it can also signify low-growth and missed sales projections.

However, it looks as though Murphy is doing all the right things as new CEO, proclaiming an "unleash" of creativity that will span throughout all of Gap Inc's divisions including Old Navy and Banana Republic. With no previous experience in the apparel/fashion industry Murphy is poised to learn about the apparel process and direct the company back to it's core values. His plans include improving the store experience, cutting costs by closing down their newest operation, Fourth and Towne, and decreasing company office space and HR costs. Perhaps Gap Inc. and Murphy will narrow their customer focus to avoid getting lost in such a broad market. Flashy advertising and the newest celebrity face will only be a quick fix for Gap; first they must redefine their customers and reconnect with their wants and expectations. This can be accomplished by putting together a winning combination of designers, merchandisers, analysts, supply chain managers, etc. and also allowing this team to grow and mature with the brand by giving them an incentive to be creative. Murphy has a long journey ahead, but I feel confident Gap's timeless appeal and accessible customer base will be helpful in their growth attempts as they strive be "back on top."

-Jane Brownfield

Give Me The Drugs: The Seduction of Prescription Drug Advertising

Within the last decade, prescription drug advertising has grown 3 fold, thus securing it's position as commonplace in the consumer market. No longer are advertisements for these drugs few and far between; now that these ads are readily displayed on television, the drug literacy of the average American has also expanded. These ads for pharmaceuticals appear regularly on television and convince many Americans that they have conditions that they may not actually have. This increase in prescription drug advertising and the subsequent result of their consumption show the strength of ad power these drug companies have. Large brands such as Lunesta, Nexium, Crestor have spent more than 200 million dollars on advertising and marketing to make these names commonplace. The advertising campaigns have been successful because of their marginalization of the real risk involved, while making them appeal to your emotions first. Once the consumers feel a connection with the ad itself, they'll seek the drug that will be conducive to their "condition". For example, Lunesta's advertising campaign featured a butterfly logo and employed dream-like sentiment throughout the message capturing the audience with its promise of a full nights sleep. The ads often feature a tired mother or a stressed out father; situations that are very common to many Americans. Often theses drug ads list the side effects towards the end of the ad, after capturing its audience with its message. This strategy has proven to be a success as the number of Americans on prescription drugs is rising. These companies are aware that many consumers are concerned more with perceived quality and results than fact and do an excellent job of convincing consumers that they are truly informed.