Question 1: Was Peck correct in firing his creative directors and replacing them with a big data- driven creative process? Why or why not?

Peck took the decision of firing his creative directors because he was not satisfied with the job creative directors as case study presents that directors were not showing the efforts from last many years through which company could increase sales rapidly. In fact, Gap was looking for the next saviors from last many years rather than looking for more and more creative designs to increase sales in the targeted market. Considering this factor Peck took the decision to fire his creative directors and invest that money on digital systems and data mining. Considering this factor, we can say that Peck decision was right as directors were unable to provide what was desired from them.  However, he suggested the management of the company to use big data from Google trends, Google Analytics and database managed by the company for the customers.

In accordance to the case study, Peck was with the idea that using the digital approaches and big data mining company can collect data about the requirements, and trends of the market that has great importance in providing the market understandings to the fashion designers and managers to make the products for the next session according to the desires of market. in my opinion even there are a number of benefits for using big data but still there are some limitations as big data can cause to reduce uniqueness as competitors are also using that data to design their products. While excessive use of big data analytics reduces creativity from the company. however, customers are also not fully aware of their requirements sometimes a new innovative design because of need understanding by venders, and designs can help out the company to introduce such a product that customers were searching for that can increase sales. In accordance to this Peck decision was wrong as he should keep balance between both directors and big data.      

Question: 2

What do you predict will happen to Gap Inc.’s sales going forward as a result of this decision? How will it affect each of its brands equity?

The decision taken by the Peck will draw negative and positive impact on the overall performance and brand equity of the Gap Inc. Basically brand develop and promote equity through increasing the customer satisfaction that is also a key to increase sales of the company. Decision taken by the company will affect the sales of the company as designs, quality, uniqueness, and innovativeness of the product will get change. In the past, company was used to follow up the ideas of the creative directors but after the use of big data company will take decision from the data provided by Google trends and Google analytics, as both are different therefore outcomes of the both will be different.

  The decision can support in short-run through enhance in the sales and brand equity if employees of the company are capable to collect the right data form the big data mining. Failure of employees in understanding the big data and implementing solution will reduce the sales. while opposite to this efficient use of big data can help out the company in understanding the actual needs and requirements of the customers and particularly through maintaining customer databases in the company, they can better understand what customers are demanding from the company as a result of this company can produce products that meet their requirement, increase customer satisfaction, encourage sales and build brand equity. However, in the long run, it decision will fail because of lack of creativity. In exhibit 10 case study present that net sales of the company is 77% from last three years, because of lack of creativity and uniqueness fashion and clothing industry cannot work. Thus decision will result in negative consequences in long run for sales.

Question: 3

Does the big data approach work for all three of Gap Inc's primary brands? Why or why not? Which brands are better/worse served by this strategy? Why?

The big data approach used in the three major brands of the Gap Inc has different results and outcomes, as some brands got improvement while other were affected badly, therefore we can say that Gap Inc primary brands were served by this strategy in both manner positive or negative.  Therefore we cannot. Before understanding impact at the first we have to determine what the three major brands are in this case. According to the case study three primary brands of the Gaps Inc are Banana Republic Brand, Gap Global and Old navy.

In accordance to the provided financial information of these three brands we can conclude that big data approach/ strategy was only better for the Old Navy Global as during last few years 2014, 2015, and 2016 sales of the old Navy Global are increased [1]. In 2014 sales were recoded as 6619, 6675 in 2015, and 6814 in 2016. Thus as overall three year analysis show that total improvement in the old Navy Global brand is $195 (see exhibit 10 in case study). As sales are improved and increased therefore we can say that big data approach served the old Navy Global brand in better way.

 While according to the case study, big data was not a good strategy for the banana republic Global Brand and Gap global because sales of these brands were decreased as a result of change in the strategy. In exhibit 12 a graph clearly presents the downward trend of the banana republic Global brand and Gap global sales as strategy was unable to support these brands to run their functions efficiently and successfully in the market as the brands were used to do before this strategy [1].       

Question: 4

For which purposes is big data/predictive analytics more or less useful in marketing? As we move into a world filled with more data, what is the role of art versus science in marketing?

Digital big data support the companies to understand the customer buying behavior, and customer buying trends. Effective use of big data mining in decision making is really important particularly when a company is going to introduce new products in the session or to want to meet the customer’s needs in order to become market leaders. Companies can understand their customers in a better to through the use of big data as a result of this they can formulate marketing strategies to win competition and build competitive advantages. In short, big data and predictive analytics are useful in marketing for developing strategies that can encourage the sales increase, building loyalty, targeting right market/customers, and for distribution models.   

However, if we are going to introduce new products having innovation and creativity then big data and predicative analytics cannot be considered as enough capable to deliver the desired outcomes as big data provide information about what is current there in the market rather than how to bring creativity and innovation that are essence of marketing. Big data inform the company about the intuitions but is not enough sophisticated to provide prediction about the future of product as whether it will or will not hit the market. As we move towards more big data the roles of art and science of marketing are getting change as it is viewed that need for these roles are getting changed. in past marketing was art that was mainly concerned with creativity, and innovations, but now, marketing is becoming science through the excessive use of big data mining and technology use in marketing to understand the customers. Now companies are using big data as science and technology to take decision while in past they were used to take the decision on the basis experiences, skills and market understandings of managers [1].  

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