Old Navy, the budget version of Gap and Banana Republic is working to create a new image for itself and will be launching a new logo as well as a marketing campaign for its Spring 2008 line. The company will be aiming its merchandise for the 20something woman and will be trying to woo back customers who moved shifted allegiance to Target. The new campaign will be unveiled in New York and will have performances by DJ AM and Natasha Bedingfield. According to Mark Montagna, senior analyst at CL King & Associates. “Since [Old Navy President] Dawn Robertson arrived in late 2006, the decisions she’s made operationally, with marketing and merchandising, have been the right decisions. Everything has been moving forward.”

The company is not yet seeing an improvement in the bottom line as yet and sales for December at Old Navy saw a decline of 8%. The company is hoping that the new campaign will make all the difference. The campaign has been designed by Michael Cape, Executive VP of Marketing, who was earlier with J C Penney.