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http://news.yahoo.com/s/nm/20061217/bs_nm/gap_advertising_dc_1
NEW YORK (Reuters) - Gap's new hip-hop-infused TV ad has captured a lot of attention from the young crowd the struggling retailer hopes to attract to reverse its fortunes.
But financial analysts and advertising specialists say Gap's fashions clash with its advertising style, and its efforts have not yet generated a steady stream of shoppers.
Gap -- run by Gap Inc. (NYSE:GPS - news), which also owns the Banana Republic and Old Navy stores -- is in the midst of a much-needed image and merchandise change.
Though its ads featuring music, dance and celebrities have won acclaim for their inventiveness, store traffic is down as teens and young adults flock to trendier retailers Abercrombie & Fitch Co. (NYSE:ANF - news) and Aeropostale Inc. (NYSE:ARO - news), believing Gap jeans and sweaters are more appropriate for their parents.
Older shoppers, on the other hand, have been confused by Gap's focus on younger-styled apparel like skinny pants and the use of hip-hop music in ads, analysts and customers say.
Critics say promotions focus too much on single items and do not showcase what Gap has to offer. While celebrities like actress Helen Mirren and singer Seal wear hooded sweatshirts in its "Holiday in Your Hood" campaign, shoppers of any age still are not convinced the clothes are cool.
Arun Daniel, a consumer and retail analyst for ING Investment Management, described Gap's advertising as a "disaster."
"They do these very targeted ad campaigns where they get people in who buy the product and they don't buy anything else," he said. "They don't have the assortment that people are looking for."
Gap spokeswoman Erica Archambault disagreed, saying the skinny black pant promotion and the Product Red campaign, which focuses on red apparel and accessories and gives some sales proceeds to charity, had brought more people into its stores.
"We are seeing customers sticking around and buying from other categories," she said. "We have seen halo effects into our other product categories and we are encouraged by that."
Third-quarter profit dropped 11 percent and Gap Inc.'s same-store sales, a closely watched measure of stores open at least a year, have dropped for 10 straight months. Even in the hot shopping month of November, same-store sales at North American Gap-branded stores sagged 7 percent from a year ago.
Gap said its Project Red promotion brought people into stores early in October, but traffic for the month fell 7 percent on a year ago, after a 5 percent fall in September.
Still, Archambault described the "intangible benefits" of a well-received campaign as "invaluable."
"When you're building the strength of the brand and of the company, it's not about month to month," she said. "It's about the impact you're making and how it's resonating. We have positive signs that give us confidence we're on the right track."
ADVERTISING MISSTEPS?
In hopes of improving its image, Gap launched a new TV ad campaign this summer, while pressing its message on radio, outdoor signs and in print.
The company first rolled out a campaign about denim, and then another for skinny black pants, with TV ads featuring footage of the late actress and style icon, Audrey Hepburn.
Hooded sweatshirts then took the spotlight in the "Holiday in Your Hood" campaign, created by Laird+Partners and featuring model Claudia Schiffer and actress Diane Kruger.
A TV spot for the campaign features an original song by rapper and actor Common, and the holiday ads were among the top 10 TV favorites, a National Retail Federation survey found.
The hoodie worn by Common in the ad has sold out online and "is flying off shelves," according to Archambault.
But marketing experts say even with innovative, creatively strong advertising campaigns, the San Francisco-based retailer's brand problems cannot be solved overnight.
"You're assuming that just because they did this big campaign that people were going to pay attention," said Robert Passikoff, founder and president of Brand Keys Inc. "The issue is one of engagement with the brand. It's not a matter of awareness of the campaign or even liking the campaign."
For example, Kelly Collazos, a 15-year-old New Jersey high-school student, said she liked the music on the ad, but still skipped the store on a recent Christmas shopping trip.
"The music and the commercials are good but the styles, well, it's a Mom store," she said. "My aunts shop there." ..|.,
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