This paper presents a business plan outlining strategic recommendations for revitalizing Old Navy's brand and sales performance. The plan identifies Old Navy's core problem as an over-reliance on price-based messaging, which has attracted price-loyal rather than brand-loyal customers. It proposes a repositioned brand identity centered on authenticity, unpretentiousness, and lifestyle appeal, targeting single women aged 24–30 with modest incomes and active social lives. The plan also outlines a specific target segment profile based on psychographic and attitudinal characteristics, recommends celebrity and musical artist partnerships, and details an integrated marketing campaign spanning print, digital, direct response, and national television channels.
The intent of this business plan is to outline strategies for improving Old Navy's sales and expanding its customer base. Consumers are increasingly finding Old Navy to be synonymous with value and trendy clothing, positioning the brand near the lower end of the value segment relative to higher-status brands like J. Crew. For Old Navy to revitalize itself, it needs to first reinvent its branding and messaging, followed by specific steps in marketing strategy execution. The following recommendations are organized by area and describe how Old Navy can achieve that revitalization.
Old Navy has allowed its branding to become too centered on price, and as a result now finds itself competing for customers who are price-loyal rather than brand-loyal. These same customers will just as readily shop sales at Target, GAP, or even smaller independent stores. To reinvent its brand, Old Navy needs to identify the most meaningful and fun moments in its newly proposed target markets and strive to capture unpretentious, honest moments between friends. This approach differs sharply from GAP's strategy of using celebrity endorsements. Instead, Old Navy's branding should focus on the following values:
Old Navy's uniquely quirky, off-center brand identity has been abandoned as the company shifted its focus entirely to price. In addition to these branding recommendations, the company needs to align itself with emerging musical artists who exemplify and reinforce the brand. Artists such as The Dixie Chicks, Carrie Underwood, and Christina Aguilera — women who speak their minds and project an unpretentious confidence — should be considered as potential sponsorship partners. Aligning with these musicians' public images would strengthen Old Navy's identity around authenticity and self-expression.
This branding strategy is grounded in a clearly defined target segment, proposed as follows:
The following are the suggested media channels for delivering the revised brand message.
"Defines demographic and psychographic target segment"
"Outlines print, digital, direct, and TV channels"
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