Old Navy's Marketing Strategies

689 Words3 Pages
Overview Over the past 20 years the Internet has greatly impacted the way we communicate-to the extent where we now over communicate. The average consumer rejects most advertisements before reading the message. With over 100,000 clothing and accessories retailers in the US alone how do you get your ads to make an impact? This has forced marketers to hone in on their customer base and more accurately target potential customers. This paper will analyze the industry in which Old Navy operates as well assess the way they connect to their consumers. Industry Information Women’s clothing makes up for more than 50% of the retail industry’s revenue. Men’s clothing is around 25%, children’s are around 10%, and miscellaneous products make up the…show more content…
Within the demographic segment they drill down further to the life cycle stage. “Old Navy bills itself as one-stop shop covering babies to grandparents. We want people to know they can come in and buy an outfit and not go broke,” said Old Navy VP of Marketing Richard Crisman” (Benezra, 2013). Old Navy targets middle-income families because they offer the most opportunity to both retain and reach potential customers. The core market for Old Navy is low to middle income families with a combined household income of less than 60k a year. They’ve built their pricing structure to meet this segments needs. They also focus their primary styles on the low end- casual wear that this segment gravitates towards (Strategic Focus, 2005). As their most lucrative segment, most of Old Navy advertisements are targeted toward the female consumer. Specifically, ‘Jenny’, which was a popular name for women born in 1979. Old Navy targets Jenny, the 29 year old mother who is the center of their desired market of 20-35 year olds. Within this gender segment Old Navy has been mindful of the psychographic factors that affect ‘Jenny’. They try to cater to her lifestyle by providing options for the whole family. Their value proposition, as stated by Crimson, is a fast, easy and affordable shopping experience…show more content…
For example television ads shown in San Francisco use the city as their backdrop. This creates an emotion connection with the consumer and turns a large corporation into something more relatable. Recommendations & Conclusion While Old Navy focuses most of its attention towards the gender and demographic factors they are mindful of geographic factors that impact their industry. They announced in 2014 that they will expand their reach to the Japanese markets over the next few years. As they make the move oversees it would be advisable to have Old Navy do a thorough environmental scan of their new landscape. The cultural norms that exist in the US may not apply in Japan. Old navy needs to review how the Japanese consumer views discounted retailers and assess if they need to tweak the way they target their customer. Old Navy has been systematic in the way they position themselves. As a major player in the retail industry they’ve been able to implement their marketing strategies over a variety of stages while adapting and adjusting the advertisements that have proved unsuccessful. It will be interesting to see if their success follows them oversees as they move in on Japans retail
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