Old Navy – A Retail Success Story
A conversation with Jenny Ming
Li-Anne Huang, MBA1
Issue date: 10/29/01 Section: Style
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In just 7 years, Old Navy has grown from 11 to over 500 employees, from 3 to 750 stores, and has built its brand from the ground up to achieve over 97% brand awareness in the U.S.. Starting in 1994 as a new division of Gap Inc that was told to “just break even”, Old Navy was the first retailer to reach $1 billion in annual sales in a period of 4 years. What is the story behind Old Navy’s phenomenal growth?
Jenny Ming, President of Old Navy, talked to GSB students about the marketing and growth strategies behind the company’s success. Starting as an EVP in Merchandizing in 1996, Ming became President of Old Navy in 1998, and was named one of the top 25 managers in the U.S. by Business Week in 1999. Organized by the Marketing and Retail Clubs, Ming’s first ever talk at the GSB drew over 100 students to Bishop on Thursday, October 18th.
As a division of Gap, Inc., the Old Navy brand was created in 1994 as a
fun fashion label with broad appeal and a casual attitude. The brand was initially developed to fulfill an under-served segment of the U.S. retail market, with an opportunity to provide fashion at low-prices. With an emphasis on humor and mass appeal in early years, Old Navy focused on building its brand, adopting a “fun and quirky” image, while differentiating itself from Gap and Banana Republic.
When asked why the company chose “fun” as its main brand position, Ming responded that it was a reaction to the fact that shopping is often neither fun nor convenient. Old Navy wanted to give shoppers a different experience, by playing music and having bright colors in their stores, it hoped to create an image of energy and youth. Ming also emphasized the company’s focus on the community and its use of holiday seasons to market its products. The company sponsors July 4th celebration parades and recently started a P.S. Arts partnership in Santa Monica to help bring art back to public schools. More recently, Old Navy sold out 300,000 of its well-known $5 July 4th Flag T-shirt in 5 days, donating proceeds to a September 11th fund.
Jenny Ming, President of Old Navy, talked to GSB students about the marketing and growth strategies behind the company’s success. Starting as an EVP in Merchandizing in 1996, Ming became President of Old Navy in 1998, and was named one of the top 25 managers in the U.S. by Business Week in 1999. Organized by the Marketing and Retail Clubs, Ming’s first ever talk at the GSB drew over 100 students to Bishop on Thursday, October 18th.
As a division of Gap, Inc., the Old Navy brand was created in 1994 as a
fun fashion label with broad appeal and a casual attitude. The brand was initially developed to fulfill an under-served segment of the U.S. retail market, with an opportunity to provide fashion at low-prices. With an emphasis on humor and mass appeal in early years, Old Navy focused on building its brand, adopting a “fun and quirky” image, while differentiating itself from Gap and Banana Republic.
When asked why the company chose “fun” as its main brand position, Ming responded that it was a reaction to the fact that shopping is often neither fun nor convenient. Old Navy wanted to give shoppers a different experience, by playing music and having bright colors in their stores, it hoped to create an image of energy and youth. Ming also emphasized the company’s focus on the community and its use of holiday seasons to market its products. The company sponsors July 4th celebration parades and recently started a P.S. Arts partnership in Santa Monica to help bring art back to public schools. More recently, Old Navy sold out 300,000 of its well-known $5 July 4th Flag T-shirt in 5 days, donating proceeds to a September 11th fund.