Old Navy Wants to Shake Off Discount Rep

New-Look Campaign Includes TV Effort That Unfolds Like a Miniseries

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NEW YORK (AdAge.com) -- Old Navy: your new fashion destination.
Old Navy ad

Old Navy aims to recapture market share lost to competitors like Target with a new logo and marketing campaign geared toward women in their 20s.

The division of the struggling Gap Inc. is trying to shake off its traditional discount image with a new logo and marketing campaign for the spring 2008 season aimed at women in their 20s. The aim is to recapture some of the market share lost to competitors such as Target in recent years.

The campaign will be officially unveiled today in New York at an event featuring performances by DJ AM and Natasha Bedingfield.

"Things are looking up," said Mark Montagna, a senior analyst with CL King & Associates. "Since [Old Navy President] Dawn Robertson arrived in late 2006, the decisions she's made operationally, with marketing and merchandising, have been the right decisions. Everything has been moving forward."

No improvement yet in bottom line
That's not yet, however, showing up in the bottom line. For the month of December, Old Navy reported an 8% decline in stores open at least a year, on top of a 10% falloff during the same period a year ago. In the third quarter ended Nov. 3, the most recent quarter for which information is available, Old Navy saw same-store sales drop 8% on top of a 7% tumble in the comparable period.

The new campaign, which was overseen by Exec VP-Marketing Michael Cape, a former J.C. Penney marketer, will include TV, print, online, direct mail and in-store elements. The TV commercials are intended to be a miniseries, with each spot following a group of 20-something women as they embark on relationships, road trips and the like.

Chandelier NYC served as the creative agency on the push, which was shot in Sao Paulo, Brazil, and Buenos Aires, Argentina, using models from the U.S. and Brazil. That agency, founded by Richard Christiansen, an alum of Suede and Radar, also produced several spots for the retailer's summer 2007 and fall 2007 collections.
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