Old Navy Marketing Strategy & Marketing Mix (4Ps)

Published in Products category by MBA Skool Team

Marketing Strategy of Old Navy analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Old Navy marketing mix, help the brand succeed in the market. Let us start the Old Navy Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Old Navy Product Strategy:

The product strategy and mix in Old Navy marketing strategy can be explained as follows:

Old Navy is one of the leading fashion labels based out of USA. Old Navy carries a huge selection of apparels and accessories for all groups and categories in its marketing mix product portfolio. They have clothing, essential wear, footwear, swimwear, intimates, sleepwear, activewear, jewelry, cosmetics etc. They stock products for groups such as Men, Women(Plus Size, Maternity wear), girls, Boys, Toddler, Baby. They have various sizes available according to the body type of the person which is not very common in all the apparel stores, which usually carry only S, M, L, XL, etc. sizes or the like.

The target customers of Old Navy includes people of all age groups. This complies with its parent company’s(GAP) tagline which says “There’s a Gap for Everyone”. The online site for Old Navy also has many categories for your choice. There’s something for the wanderer, the party freak, the family, the sports freak. It’s very easy to find the products that you have been looking for and there’s a thing for everyone.

Image: Wikimedia

Old Navy Price/Pricing Strategy:

Below is the pricing strategy in Old Navy marketing strategy:

Old Navy targets customer from lower-middle to middle-class income groups. In order to comply with the demands of those customers, Old Navy has marked their prices accordingly.

But since this brand sells apparels and that being a very competitive industry it has to keep its prices in tandem with the market trends. Old Navy has an e-commerce site and it runs various offers on its site from time to time which would encourage more shoppers to be attracted to this brand. This is done to hold its share in the marketplace and provide a plethora of choices to the shopper and a cheaper and a high-quality alternative for budget shoppers. They offer gift-cards, clearance sales, discount coupons, online sales from time to time which would offer the customer a great deal on their shopping.

Old Navy Place & Distribution Strategy:

Following is the distribution strategy in the Old Navy marketing mix:

The Old Navy stores are designed like grocery stores, the way the aisles are arranged, or the shopping carts, or the way the store is designed and the small products kept at the checkout counters give the customers the intended feel. The stores are separated into sections such as Men’s, Women’s, Kid’s, Toddler’s, Girls, Boys, Baby’s, etc. Old Navy had over 500 stores in the U.S. till 2000 after which it entered the international markets after opening stores in Ontario, Canada in 2001. They have a wide distribution strategy in its marketing mix. Currently, they have their flagship stores in New York, Chicago, Seattle, and San Francisco. They have plans to expand by entering into the Asian markets. They have opened stores in Japan, China, and Philippines etc. They have gained a stronghold in these markets and the brand has performed exceptionally well. Apart from the conventional brick and mortar stores, the products are also available for sale online.

Old Navy’s distribution is carried out by a company called Clayco which provides distribution facility within the U.S.

Old Navy Promotion & Advertising Strategy:

The promotional and advertising strategy in the Old Navy marketing strategy is as follows:

Old Navy imbibes its aim from Gap which states that it makes you to express your style throughout life. There’s a style for everyone. Gap achieved this through Old Navy which absorbed all their principles from Gap. This made the lower income group population connect with Old Navy and their association with Gap gave them some edge and credibility over other discounted clothing stores. Old navy ran several advertising campaigns, like TV ads featuring their mascot, magic the dog and Morgan Fairchild. Old Navy had competitors like Hollister and American Eagle Outfitters which were slightly more impressive brands. Hence, they started marketing themselves more attractively and not just be labeled as the inexpensive brand. In order to change the mindsets of people, they rearranged their store layouts, brought out changes in the interiors, the color combinations. They gave their stores a boutique feel. They also renamed their stores to “New Old Navy” for this purpose. They have also developed various commercials for marketing their brand and it has been pretty successful. They regularly run promotional activities within the stores such as discount coupons, gift cards, sale, prizes, etc. Hence this completes the marketing mix of Old Navy.

About Old Navy:

Old Navy is an American apparel and accessories brand owned by Gap Inc. It was founded in 1994 as a child company of Gap Inc. It was opened as a new decision under Gap which would provide less expensive options in clothing by Gap. It was headed by Millard Drexler and was named “Everyday Hero” which later got renamed to “Old Navy”.

The first store opened up in San Francisco and has its headquarters there. It later entered the international market by opening its first international store in Canada and then later in the Asian countries like Japan, Philippines, and China.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Old Navy. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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