• by David Goetzl  @dgoetzl, April 24, 2006

After some boom years, Old Navy's "great fashion at great prices" positioning has come under siege. Competitors are now beating it at its own game, offering cargo pants and vintage T-shirts at even lower prices.

So Old Navy is looking for new ways to differentiate itself through what the retailer calls "the kind of creative marketing that helped make the brand famous."

Traditionally, the highlights have been over-the-top ads featuring has-beens such as Morgan Fairchild and Fran Drescher; spoofs of old shows such as "The Brady Bunch;" and cloying yet catchy jingles for offerings like Performance Fleece or the Item of the Week.

It's unknown what the next iteration of the ad campaign will be, although it's clear from a recent brand integration appearance that the retailer has no intention of jettisoning its campy style. The brand played a role in the April 13 episode of Fox comedy "The Loop," a sitcom with a tongue-in-cheek tone that meshes well with the image Old Navy has cultivated.

The brand integration (evaluated and ranked via research firm iTVX as one of the five most effective product placements last week) began with an Old Navy bag in the background and ended with one of the show's characters doing a send-up of the retailer's advertising.

The scene centers on twenty-something, super-cute "Piper" as she preps for a date. With the shopping bag visible on her bed, she chats on the phone with a friend and admires her new purchase in the mirror. "God, I look great in this Old Navy skirt," she says proudly, modeling it to herself (not coincidentally, the new line of women's skirts are the current featured items on oldnavy.com).

Now off the air after anemic ratings, "The Loop" was distinguished by its ongoing conversation with the audience during the show via on-screen text and audio overlays. And in that vein, the parenthetical tip-off "(product placement)" next appears on the screen as Piper turns to the camera and makes like a spokesmodel. "Thanks Old Navy," she says, in a tone reminiscent of the retailer's ads, while flashing a sardonic smile. Then, the mocking sound of a ringing cash register is heard.

Credit both producers of "The Loop" and Old Navy for some creative marketing artifice. Adults in the 18-to-34 demo are saturated with ads and cynical because if it. By being up front with the audience in a clever manner, Old Navy catches their attention.