DEUTSCH WINS OLD NAVY AD ACCOUNT

Work Valued at $181 Million

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NEW YORK (AdAge.com) -- Gap Inc. has selected Interpublic Group of Cos.' Deutsch, Los Angeles, as the first outside agency to handle the $181 million advertising account of its Old Navy unit.

Havas' Euro RSCG MVBMS, New York, and WPP

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Group's J. Walter Thompson, New York, participated in the review, which was conducted by Pile & Co., Boston.

First creative agency
Old Navy has used agencies for various projects, but this is the first time it sought a full-time creative shop to work with its in-house team.

Since Paul Pressler's arrival as CEO in September 2002, Gap Inc. has been differentiating its three main brands, The Gap, Banana Republic and Old Navy. The Gap has steered toward classic pieces such as corduroys and jeans, while Banana Republic has featured "business casual" and dressy weekend wear aimed at 30-something professionals.

Creative director sought
Mr. Pressler has focused on upgrading the marketing functions at all of the marketer's brands, including hiring new marketing heads at all three units. Old Navy is also due for a new creative leader, as Dennis Leggett will step down as senior vice president and creative director after the transition to the new agency is complete. Mr. Leggett and the in-house team at Old Navy are now working on a summer campaign.

Banana Republic hired Omnicom Group's Goodby Silverstein & Partners, San Francisco, in January to bring in new ideas for the brand. Goodby is already working on developing an effort for the fall that will likely continue the brand's upscale positioning.

Old Navy spent $181 million on measured media last year and $158 million in 2002, according to TNS' Media Intelligence/CMR.

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Hillary Chura, Alice Z. Cuneo and Lisa Sanders contributed to this report.

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