Old Navy's mobile marketing campaign and digital strategy evolution

Old Navy's Mobile Marketing Campaign

Over the last several years, there has been a shift in consumer tastes. This is because the overall demographic is changing with more of a younger audience becoming the largest segment. To reach out to this new audience, requires changing the basic strategy that is being used during this process. This means that traditional approaches are no longer valid. Instead, there must be an emphasis on using alternative tools to reach out to customers. The most effective approach is to concentrate on mobile applications and online tools. ("Digital Marketing Works Better for Millennials than TV," 2012)

In the case of Old Navy, the firm must be able to redefine itself. This is because the parent company, (i.e. Gap) has been facing challenges associated with reaching out to consumers. Moreover, the recession and slow recovery have made this more challenging for the company. As a result, Old Navy has been asked to redo their basic marketing strategy. To fully understand how the firm can achieve these objectives requires focusing on: the choice of young adult males as the target audience, the assumptions / recommendations and the creative strategy for this campaign. Together, these different elements will offer specific insights as to how the company is redesigning their approach in order to reach out to new demographics of consumers. ("Gap Inc. Names Global Brand President," 2012)

Evaluate the choice of young adult males as a target for an Old Navy promotion.

The choice of young adult males is logical for Old Navy. This is because traditional advertising efforts were concentrating on this demographic indirectly through: their mother, sister, wife or girlfriend. Moreover, male consumers have been shown to have tremendous amounts of buying power. Evidence of this can be seen by looking at the below table (which is showing the total amounts of spending for different demographics of males).

Spending Power of Male Consumers

Age Group

Spending Power

25 -- 34

27%

35 -- 44

26%

45 -- 54

20%

55 -- 64

16%

These figures are illustrating how the 25 to 44-year-old segments will spend the most amounts of money. As a result, the company's strategy to focus on these individuals is prudent. ("Listener Profile," 2010)

In choosing mobile media for this campaign, what assumptions were made about the viewing habits of this target? Do you believe these assumptions are valid? What would you recommend regarding this choice?

The basic assumption is that traditional forms of advertising (i.e. TV, radio and print) are ineffective. This is because these younger demographics are entertained through different online sources (such as: social networking, You Tube videos and mobile technology). The combination of these factors means, that Old Navy must use a strategy that will focus on a medium that is most popular with these two groups. As a result, there is an emphasis on posting different ads on You Tube. Inside them, is the use of humor, which helps to make them more controversial and stylish. This is from these two groups having a lower attention span. Yet, they will retain the ideas and images from advertisements better in comparison with older generations. ("Digital Marketing Works Better for Millennials than TV," 2012)

The assumptions are valid. The reason why is because there has been a shift in how all firms are reaching out to consumers (with many using online and mobile technology). If Old Navy wants to be able to compete, they will need to use similar strategies that will help them to reach out to this segment. Over the long-term, this will allow the firm to rebrand its image and establish a new core market of customers. ("Digital Marketing Works Better for Millennials than TV," 2012)

When implementing these kinds of changes, it is imperative that management evaluates which approach is more effective. This means having the advertising department run a series of promotions. Their objectives are to understand which responses and formats that is most favorable. When this happens, researchers will create strategies that can have a lasting impact on customers. This is the point that they are willing to shop in Old Navy locations (based upon these views). ("Digital Marketing Works Better for Millennials than TV," 2012)

However, there must be a certain amount of flexibility applied. This is from the changes in tastes and what areas are most popular. If Old Navy can focus on these segments, they can be the first retailer to reach out to new audiences using the most cutting edge applications. Once this takes place, is when they will quickly adapt with any kinds of changes. This is how the firm can dominate this segment and create a lasting image in the minds consumers. ("Digital Marketing Works Better for Millennials than TV," 2012)

What do you think of the creative strategy chosen for this campaign? What are the positives and negatives of content that relies on humor? Would you propose some modification to the concept chosen? What - and why?

This strategy can help Old Navy to be able to effectively market to these two groups. The benefits of the content are to create a lasting impression in the minds of the male customers. When they are laughing at a video, is the point that they are able to relate to the ideas and they are entertained. This will help them to remember what they saw, which will have an impact on their spending patterns. Once this takes place, is when Old Navy will be associated with these kinds of feelings (leading to an increase in sales). ("Want to Reach Male Shoppers," 2012)