Old Navy shakes up key retail seasons - advertising supplement - On Cable

Brandweek, April 13, 1998

Prior to 1997, Old Navy had never surfaced on national TV, focusing its advertising efforts instead on newspapers, magazines and spot TV and radio. The popular division of Gap Inc. was growing so fast, however, that it decided to include network cable in last year's back-to-school and holiday campaigns. Results have so exceeded initial expectations that Old Navy now considers cable a very comfortable fit.

The back-to-school campaign promoted a signature Old Navy product--cargo pants--in what was intended to have been a three-week Eight. "Toward the end of the second week, we were, asked to turn off national cable, because cargo pants were DO longer available in stores." says Pam Marcus, vice president and director of national broadcast at Deutsch Inc., which collaborated with Old Navy's in-house, advertising agency in creating the campaign. "We effectively sold out their merchandise."

Creative for the cargo pants campaign centered around a mock fashion show being directed by Magic, the company's canine mascot, who plays a designer in the spot. Fashion model Markus Schenkenburg fusses about what he's being asked to wear while fashion writer and Old Navy spokesperson Carrie Donovan provides commentary. Model Jerry Hall tries to work her way from the sidelines into the show.

Old Navy spent approximately $10 million on its fall cable TV campaign and $15 million for campaigns highlighting Old Navy fleece products prior to Christmas. It put nearly all of its national TV firepower into cable because it could deliver on a number of fronts, according to Walter Coyle, vice president, associate media director at Deutsch Inc. It provided an opportunity to build brand image, drive traffic to the local stores, which now number nearly 300, and it enabled Old Navy to expand upon and support local marketing efforts, all while reinforcing Old Navy's vision that shopping is fun again.

Cable also allowed Old Navy to "own" key programming venues and play to specific network strengths, Marcus says. "Cable let us zone in on our real core demographics. That was particularly critical when we were promoting in the midst of two of the most competitive advertising periods fop fashion retailers."

Deutsch also worked with cable networks to carry its messages beyond its spots. "One of our critical missions was extending the brand essence through each cable network we selected," Coyle says.

Marcus adds that Old Navy selected cable networks based on their ability to deliver more than simple, commercial schedules. "The challenge we brought to each network and their producers was to find the synergy between their programming and our client's product," he says. "We only considered networks that were willing to push the envelope past media and work with us creatively to rind a way to help our client stand out. The outcome of this strategy ranged from appearances by our commercial's talent to extensive product placement and ownership positioning."

Schenkenburg wore Old Navy clothes while hosting an episode of MTV dam, and during the holidays, MTV's Mike Davis wore Old Navy digs during appearances on Winter Lodge. Magic appeared during "Magic Moment" vignettes on the music network.

"In each case, the program acted as a wrap-around for the ads," Coyle says. "There is tremendous value in having regular commercials subtly supported by visual and verbal in-program reminders. You simply won't--or cant afford to--match that degree of flexibility on conventional network television."

The company sponsored programming marathons on Comedy Central, a top ton countdown on VH1 and a block party and Christmas party on Nick-at-Nite. It was also involved in a series of vignettes answering fashion questions on E! Entertainment TV.

"The beauty of cable TV was that we could get younger target prospects to find us on MTV, males on Comedy Central and moms on Lifetime," Coyle says. "Cable let us zero in on individual target groups to an extraordinary degree, and provided Old Navy with the ability to employ a seamless integrated and impactful marketing program which was a tremendous plus."

When the dust and snowflakes had settled, cable had consumed 100 percent of the national television budget for Old Navy's fall campaign. For the holiday effort, the advertiser added time in syndicated holiday specials, but still ended up putting 90 percent of its national TV budget into cable. Both national TV campaigns also had support from local TV and local radio, newspaper, direct mail and out-of-home advertising in key markets.

"We got a tremendous response in terms of overall awareness and our back-to-school sell-out speaks for itself," Marcus says. Deutsch participates another campaign in the near future in which cable will again take center stage.

"There's no other vehicle that allows you to separate your client's products from all its competitors in so many unique ways," Marcus says. "The ability to gain added value product placement--achievable by pushing the proverbial envelope--means gaining serious advantages for one's client."