Leo Burnett, now part of French advertising giant Publicis Groupe, will initially work with Gap and Banana Republic on consumer research, further refining brand positioning and developing longer-term marketing strategies.
Leo Burnett is the second agency appointment this year and follows that of start-up agency Laird & Partners in March. The agency was launched by Donna Karan's former creative director, Trey Laird, to handle the brand's creative advertising in an attempt to halt a worldwide decline in sales across its stores and was only the second agency to be appointed by Gap in its history.
Paul Pressler, the Gap president and CEO who joined earlier this year from Walt Disney, said: "Gap and Banana Republic customers have a strong, emotional connection to our brands, and we want to continue building that relationship. Leo Burnett will help us better understand how customers feel about our brands, and the many ways in which we can enhance their relationship with Gap and Banana Republic."
Laird was appointed to handle all advertising, direct marketing and in-store marketing for Gap, Gap Kids and babyGap worldwide. It was not tasked with working on Banana Republic, a task now with Leo Burnett. Earlier this year, Gap launched its latest celebrity-based advertising campaign "For every generation", which featured the singers Ryan Adams and Willie Nelson, as it seeks to shore up declining sales for the autumn season. Its latest Christmas campaign was launched last week.
Laird was the second start-up shop the agency has worked with. Its first, and its first agency appointment, was the Boston-based Modernista, which was appointed in October 2000. Modernista created spots throughout 2001, including those starring celebrities such as Macy Gray, Seal and Air.
Prior to the appointment of Modernista, Gap's ads had been developed by an in-house agency, which developed the Gap Khaki ads, among others.
Leo Burnett USA chairman and chief creative officer Cheryl Berman said: "We are very excited to have the opportunity to partner with Gap and Banana Republic. We admire its commitment to breakthrough advertising and look forward to helping position these great brands for future growth."
Gap has been criticised for moving away from its core offering of khakis, plain white shirts and T-shirts, in an attempt to win over younger customers. Earlier this year, Gap reported its 29th month-on-month sales decline in a row.
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