In a recent interview with AdAge, Executive Vice President of Marketing at Old Navy Michael Cape spoke about their new target market; women in their 20’s.
Gap Inc.’s retail sales growth began to slow down in 2003 and has been going downhill since. Mr. Cape has decided to take matters into his own hands by restructuring Old Navy’s current image. In the past, Old Navy focused all their advertising efforts into every type of consumer, never really concentrating on a definitive demographic. Mr. Cape believes that this needs to change and in order to do so, Old Navy must pay extra attention to who they plan on going after.
He plans on using his $225 million advertising towards primarily targeting women in their 20’s. In his opinion, women in their 20’s represent a larger volume for them in stores. Additionally, Old Navy will be putting emphasis on their online spending. Mr. Cape believes that they are “very well connected to the 20-somethings."
I am not surprised to learn that Old Navy has been experiencing sales decline. To a certain extent Old Navy has lost it’s hip image that it once had when I was in junior high school. I still recall the very trendy white tank tops they would come out with every 4th of July.
It is in Old Navy’s best interest to improve their image in order to increase their sales. I believe that their new target market of female 20-somethings is a great first start. I belong to this market and believe that Old Navy needs become more fashionable so that they may appeal to a consumer such as myself. Advertising efforts should definitely be online-concentrated since that is where most of us 20-something female fashionistas could be found. Now, if they can just jump on the wave of non-traditional advertising and buzz marketing, Old Navy could really soar...