MKT 501 MOD 3 CASE STUDY

MKT 501 MOD 3 Case STUDY

MKT 501 MOD 3 Case Study

Old Navy is a casual, fashion-clothing store for adults, children, and babies. Merchandise in the Old Navy line includes jeans, khakis, T-shirts, pajamas, accessories, shoes, and personal care items. Currently, merchandise is only sold in Old Navy brick and mortar stores. Old Navy is a division of Gap, Incorporated. Gap incorporated started its Old Navy spin-off in 1994 with its first three stores in California. Today, there are more than 450 Old Navy stores located throughout the United States (Mittelstaedt, 2005).

Old Navy's target market is composed of both children and adults, male and female. Primarily, Old Navy targets school aged children and young adults concerned with brand recognition. For the most part, Old Navy's pricing is very affordable, so the income of the shopper does not play a large part in their marketing factors. Since Old Navy does not allow e-commerce transactions yet on their site, customers are only able to shop at the stores located in the United States.

Old Navy has succeeded as a notable store due to two factors. The first factor relates to the company's ability to provide cost leadership. Old Navy offers affordable clothing and accessories to customers through moderate pricing strategies. This allows the company to target a larger market base of people with average and lower incomes. Old Navy also offers merchandise promotions and the web site contains a link to the "Item of the Week". The item of the week reflects popular items that are currently on sale in their brick and mortar stores (Mittelstaedt, 2005).

The second factor is based on the quality products offered and the image portrayed by the company. Old Navy's image is all about "fun, fashion, family, and value". This image attracts a large market ...