UTEP Advertising Plans Book 2011

Page 1

surprise!

University of Texas at El Paso


EXECUTIVE SUMMARY The paths women take throughout their lives are very unique from one another. Every woman loves to ZOHYL OLY TLTVYHISL Z[VYPLZ OLY KLÄUPUN TVTLU[Z and the times when something unexpected captured her attention and surprised her. Whether it’s the news that she is going to be a mother, or a phone call telling her that she earned the promotion she has fought hard for, these emotional aspects in her life are ones that she’ll never forget. We want to make jcpenney part of her memories by giving her exciting and surprising moments. Which is why UTEP Advertising is thrilled to present to our female audience the Surprise! advertising campaign. Our primary research showed that our 25 to 34 .LU4P_ JVUZ\TLY PZ MHZOPVUHISL ZLSM JVUÄKLU[ fun-loving, savvy and going through various life stages. In order to create an effective campaign we must engage her on an emotional level. Surprise! mirrors that energy. It represents everything she told us through our extensive primary and secondary research. This research clearly revealed that she loves the unexpected and delights in life’s surprises. As you review the information on the campaign, you ^PSS ÄYZ[ KPZJV]LY H [LHZLY LSLTLU[ [OH[ ZL[Z [OL Z[HNL for the ensuing campaign. This effort is designed to generate tremendous buzz because it is important that we grab the attention of the GenMix consumer in a big way and then keep her interested for the remaining 12 months. Through an exciting blend of events and activities, our promotions do more than encourage a consumer to make a purchase; they help build brand loyalty. Our interactive segment displays cutting-edge technology in a fun, immersive way, with the ultimate

goal of pulling GenMix consumers into the store for a purchase. Want to go to the Oscars? We’ll take you there. Unorthodox fashion shows? We’ve got them. Artist-packed concerts? Got those too. These L]LU[Z ILULÄ[ PTWVY[HU[ WOPSHU[OYVWPJ HJ[P]P[PLZ that jcpenney currently supports. Unfortunately, the GenMix consumer is unaware of these activities, so a new Golden Hanger Foundation insures new and positive exposure for the company.

TABLE OF CONTENTS Executive Summary

1

Company Analysis

2

Product Analysis

4

Market Analysis

6

Our media plan is exhaustive. It encompasses everything. From traditional media our GenMix JVUZ\TLY PKLU[PÄLK [V PTWVY[HU[ ZWV[ HK]LY[PZPUN PU key geographical areas. Most importantly, we have PKLU[PÄLK V\Y TLKPH PU ]LY` ZWLJPÄJ ^H`Z IHZLK VU our consumers marital status and whether or not she has children. This is fundamental to our proposal, as her life stages dictate her choice of media vehicles.

Competitive Analysis

7

SWOT Analysis

9

One of the most exciting ways we communicate directly with our GenMix consumer is with the all new Surprise! THNHaPUL ( Z[`SPZO WHNL MV\Y color quarterly publication that does much more than spread our advertising message. Discover the Surprise! campaign developed for jcpenney. We know you’ll be delighted in our recommendations. Please review our suggestions for engaging upgrades to the in-store experience. And when you get to page 32, we’ll be ready and excited to explain all of our ideas to you in a faceto-face conversation. Until then… Surprise! It’s a new jcpenney advertising campaign from the senior advertising team at the University of Texas at El Paso. Note: All references to jcpenney in this proposal are made using their lower case form, consistent with jcpenney’s own typography.

*VUZ\TLY 7YVÄSL

Research Findings

12

Campaign Strategy

14

Creative Direction

16

Media Plan

19

Interactive

23

Direct Response

25

Promotions

26

Public Relations

28

Event Planning

29

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Campaign Evaluation

31

Campaign Budget

32

1


COMPANY ANALYSIS Z\WWVY[LK I` NYV^PUN WYVÄ[Z -YVT jcpenney accelerated store growth and renovations, HUK PU LHYS` [OL ¸,]LY` +H` 4H[[LYZ¹ JHTWHPNU was released to establish a better relationship with its customers. Following that was the value proposition campaign, “Style, Quality, and Price 4H[[LY¹ 0U QJWLUUL` PU]P[LK [OL J\Z[VTLY [V experience the “new” jcpenney with its “New Look. New Day. Who Knew!” campaign that provided customers a sense of discovery and excitement during each shopping visit.

Current Advertising Efforts golden rule store co.

jcpenney today

About jcpenney

jcpenney, one of America’s leading retailers, currently VWLYH[LZ V]LY Z[VYLZ HUK LTWSV`Z TVYL [OHU HZZVJPH[LZ -VSSV^PUN [OL Z\JJLZZ VM ^OLYL [OL` YLJVYKLK IPSSPVU PU revenue, jcpenney has had an assertive start to HUUV\UJPUN ZL]LYHS Z[YH[LNPJ HJ[PVUZ HZ [OL company follows through on their four-year plan to become the shopping destination of choice for great styles and quality, at compelling prices.

jcpenney boasts a wide array of merchandise and services that cater to all areas of its target customer’s possible lifestyle purchases, from HWWHYLS [V OVTL M\YUPZOPUNZ ÄUL QL^LSY` [V RP[JOLU goods, a full service salon and a portrait studio. jcpenney categorizes its merchandise by competitive WYPJL WVPU[Z MVY L_HTWSL MHZOPVU PZ JSHZZPÄLK HZ “Conservative”, “Traditional”, “Modern” or “Trendy.”

Retail has changed dramatically from what jcpenney L_WLYPLUJLK H[ P[Z PUJLW[PVU PU [OL LHYS` »Z H time when it sold jeans and work clothes in the small mining and farming town of Kemmerer, Wyoming. By keeping up with the ever-evolving retail-landscape, jcpenney’s tactics range from restructuring moves to forging new territory in terms of “digitizing” their PU Z[VYL L_WLYPLUJL QJWLUUL` PZ HSZV ÄUL [\UPUN its focus to the 25-34 year old female consumer, seeking to draw more of these young women into its stores.

To attract more women 25-34 years old, jcpenney is looking to strengthen the “Modern” and “Trendy” parts of its identity and ascertain a bolder top of mind presence among competitor names such as Macy’s, Kohl’s, and Target.

Past Campaigns QJWLUUL` OHZ ILLU OHYK H[ ^VYR ZPUJL implementing centralization, hiring external talent, HUK KL]LSVWPUN H Ä]L `LHY ÄUHUJPHS WSHU [V [\YU [OL Z[VYL HYV\UK I` [OL Z\JJLZZ VM ^OPJO PZ

jcpenney debuted its “We Make it Affordable. You Make it Yours.” spring campaign during the 83rd annual Academy Awards. As the exclusive retail sponsor of the Oscars, jcpenney showcased its exclusive brands and designers, as well as their partnership with People StyleWatch, with seven separate commercials. This was the sixth consecutive year that the company sponsored the famed event on the ABC television network. 4PRL )V`SZVU QJWLUUL`»Z JOPLM THYRL[PUN VMÄJLY says “Our new marketing campaign reinforces our commitment to making fashion more accessible than ever. At jcpenney, we believe that great style doesn’t have to be expensive. That’s why we’re leveraging our superior trend, design, product development and sourcing capabilities; partnering with top names in fashion; and providing exciting shopping experiences and superior service to deliver style inspiration to our customers ever day.” PR Newswire supports these claims by reporting that “jcpenney’s new campaign underscores its dramatic style-authority transformation and recent initiatives to provide customers [with] the fashion they seek to create their [own] uniqute style – at an affordable price point.” In addition, PR Newswire

2


“CHANGE

is vital, improvement the logical

FORM OF CHANGE.�

- James Cash Penney

jcpenney store

highlighted the company’s interactive efforts by discussing jcpenney’s involvement on Twitter, Facebook, and Polyvore.

Corporate Information jcpenney is listed in the New York Stock Exchange \UKLY [OL [PJRLY ¸1*7š ^P[O MV\Y[O X\HY[LY LHYUPUNZ VM WLY ZOHYL QJWLUUL` YLWVY[LK UL[ WYVĂ„[Z VM TPSSPVU MVY [OL [OPYK X\HY[LY LUKPUN 6J[VILY HUK ZHSLZ H[ Z[VYLZ SVJH[PVUZ open for at least one year) rose 1.9 percent. Geographically, the southeast and central regions of the country were the overall best performers. The strongest merchandise sellers were men’s apparel, women’s accessories and Sephora inside jcpenney. -VY [OL `LHY QJWLUUL`ÂťZ MV\Y[O X\HY[LY HUK M\SS `LHY Ă„UHUJPHS YLZ\S[Z YLWVY[ Z[H[LZ [OH[ PU[LYUL[ ZHSLZ [OYV\NO QJW JVT [V[HSLK TPSSPVU K\YPUN the fourth quarter; comparable store sales increased WLYJLU[" PU[LYUL[ ZHSLZ NYL^ I` TPSSPVU [V [V[HS IPSSPVU MVY [OL `LHY" [V[HS ZHSLZ PUJYLHZLK WLYJLU[ MVY [OL `LHY" JH[HSVN ZHSLZ [V[HSLK TPSSPVU" NYVZZ THYNPU PUJYLHZLK TPSSPVU" HUK HKQ\Z[LK VWLYH[PUN PUJVTL PUJYLHZLK TPSSPVU" HSS LX\HSPUN IPSSPVU PU YL]LU\L ^P[O PUJYLHZLZ PU every category.

jcpenney in 2011 )` [OL LUK VM Z[VYLZ ^PSS OH]L VWLULK most of them in the off-mall format. PR Newswire reports that jcpenney plans to expand the Call it

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jcpenney’s Diversement Achievements

JCP Cares

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;OL QJWLUUL` (M[LYZJOVVS WYVNYHT H UVU WYVÄ[ organization, is committed to helping jcpenney communities offer safe, quality, and fun afterschool programs across the United States. Since its inception in 1999, jcpenney has contributed over TPSSPVU [V [OL SVJHS HM[LYZJOVVS WYVNYHTZ I` supporting leading youth organizations such as the Boys & Girls Clubs of America, YMCA of the USA, National 4-H, United Way and FIRST. 0U QJWLUUL`Z 9V\UK <W L]LU[Z OLSWLK YHPZL V]LY TPSSPVU [OH[ Z\WWVY[LK HM[LYZJOVVS programs in local communities. Other community advocates that jcpenney has aligned with, as listed on jcpenney’s corporate website, are: Human Rights Campaign, National Urban League, National Council of La Raza, Working Mother’s Media Inc, and the Organization of Chinese Americans. jcpenney also offers charitable contributions to the USO, the American Red Cross, the National Organization on Disability, the National Minority Supplier Development Council and DECA.

jcpenney is well aware of the changing face of America and its population. With Patricia Romero leading its multicultural marketing efforts, jcpenney has garnered various acclaims, including:

;VW *VTWHUPLZ VM +P]LYZP[` +P]LYZP[`0UJÂťZ " Ranked Top Organizations for Multicultural Business 6WWVY[\UP[PLZ +P]LYZP[`)\ZPULZZ JVT " 4VZHPJ (^HYK HZ SPZ[LK VU QJWLUUL` UL[ " HUK Human Rights Campaign’s Corporate Equality Index Award. jcpenney’s dedication to inclusion and their “Every Day Mattersâ€? campaign is trying to form a deeper, more emotional and enduring relationship with their new and existing multicultural customers. For example, the exponentially growing Hispanic population is a market that jcpenney wants to continue building a successful relationship with and does so by awarding three Hispanic high ZJOVVS NYHK\H[LZ ^P[O ZJOVSHYZOPWZ K\YPUN Univision’s Premios Juventud.

3


PRODUCT ANALYSIS Long-Range Plan

Services

jcpenney’s forward-thinking approach is evidenced by its development of a four-year plan consisting of four integrated business strategies intended to KYP]L WYVÄ[HISL ZHSLZ NYV^[O LUOHUJL P[Z ÄUHUJPHS performance and achieve industry leadership. Key points include:

Apart from its many merchandise brands jcpenney offers a great variety of services ranging from interior decorating to professional gift-wrapping. jcpenney IVHZ[Z M\SS ZLY]PJL OHPY ZHSVUZ [OH[ PU [\YU JHYY` top-brand hair products such as Matrix and Paul Mitchell. The wedding and gift registry departments cater to brides all over the country by helping them plan their special day, pampering them with options. jcpenney also offers professional portrait studios for all occasions, such as graduation, birthday, family, portraits and passport photos, among others. Their optical centers offer professional eye-exams and carry contact lenses and quality, fashionable brands of eyewear for men, women and children.

Close underperforming stores, wind down the catalog and outlet operations, and streamline the call center and custom decorating business; .LULYH[L IPSSPVU PU ZHSLZ NYV^[O [OYV\NO YL[HPS L_WHUZPVU V]LY [OL UL_[ Ä]L `LHYZ" Aggressively expand Sephora inside jcpenney, MNG by Mango, Call it Spring by Aldo, and Liz Claiborne collections; Provide a trend-right image to females through the People StyleWatch collaboration. Increase technology in stores, as well as engage consumers with iPad applications, and a more interactive online site; and Enhance in-store experience with “FindMore” technology.

jcpenney’s interior decorating service is known as one of the most extensive decorating networks in the country with more than 425 studios nationwide. They offer one-on-one consultations at home by decorating professionals to meet customers’ design needs. The store also offers gift cards and credit cards and with the use of jcpenney Rewards customers can earn points towards future purchases. Customers can also track offers and promotions through the web, via mobile coupons or KL]PJL ZWLJPÄJ TVIPSL HWWSPJH[PVUZ

4


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5


MARKET ANALYSIS The United States economy is showing healthy signs as it recovers from the latest economic recession. Business and consumer spending showed ZPNUPĂ„JHU[ NYV^[O PU HUK [OL WVZP[P]L [YLUK PZ HSZV YLĂ…LJ[LK PU [OL ZSPNO[ PTWYV]LTLU[ PU ^HNLZ salaries and general employment. According to the Bureau of Labor Statistics the unemployment YH[L MLSS I` WLYJLU[HNL WVPU[Z [V WLYJLU[ PU 1HU\HY` ;OL U\TILY VM \ULTWSV`LK WLYZVUZ KLJYLHZLK I` HIV\[ PU 1HU\HY` [V million, while the labor force was unchanged. The current unemployment rate for adult women is 7.9 percent. *VUZ\TLY JVUĂ„KLUJL Z\Y]L`Z TLHZ\YL [OL level of optimism that consumers have about the performance of the economy. Generally ZWLHRPUN JVUZ\TLY JVUĂ„KLUJL PZ OPNO ^OLU [OL unemployment rate is low and GDP growth is high. 4LHZ\YLZ VM H]LYHNL JVUZ\TLY JVUĂ„KLUJL JHU IL useful indicators of how much consumers are likely to spend. 0U [OL WHZ[ `LHY JVUZ\TLY JVUĂ„KLUJL OHZ YPZLU slowly but steadily since the index hit a record low VM PU -LIY\HY` ;OL PUKL_ YVZL [V PU 1HU\HY` VM MYVT PU +LJLTILY VM Economists pay close attention to measures of JVUZ\TLY JVUĂ„KLUJL HZ H WYV_` MVY JVUZ\TLY spending, which drives the bulk of the U.S. LJVUVT` (Z JVUZ\TLY JVUĂ„KLUJL PUJYLHZLZ P[ PZ important to keep in mind that lending and credit HYL Z[PSS SPTP[LK Z[YHPUPUN [OL JVUZ\TLYÂťZ Ă„UHUJPHS resources. The retail industry has faced a rocky road to recovery since the economic downturn, as discretionary spending took a hit and consumers MLS[ \UZHML PU [OL Ă„UHUJPHS JSPTH[L VM [OL WHZ[ ML^ years. The majority of the retail chain stores reported

KLJSPUPUN ZHSLZ PU ^P[O < : 9L[HPS 0UK\Z[Y` ZHSLZ [V[HSPUN [YPSSPVU HJJVYKPUN [V H YLWVY[ MYVT the U.S. Census Bureau. ,]LU K\YPUN [V\NO LJVUVTPJ [PTLZ [OL Survey of Buying Power in “Sales and Marketing 4HUHNLTLU[š PKLU[PĂ„LK NLVNYHWOPJ HYLHZ ^OLYL retail sales were the strongest: the highest total retail sales were found in the South Atlantic region, but the highest per household retail sales were in [OL 4V\U[HPU YLNPVU QJWLUUL`ÂťZ [OPYK X\HY[LY pacing seemed to mirror this trend. In an article W\ISPZOLK I` .SVIHS -PUHUJPHS 5L^Z 7V^LY 6J[VILY VM ¸2VOSÂťZ 1*7LUUL` WVZ[ OPNOLY :LW[LTILY Comps, Update,â€? jcpenney’s best performing regions were the Southeast and Central. Another economic indicator to consider is Effective )\`PUN 0UJVTL ,)0 >OLU KL]LSVWPUN H THYRL[ analysis for jcpenney, knowing EBI is valuable to determine the top markets with the highest disposable income. Generally these numbers JVYYLZWVUK ^P[O WVW\SH[PVU U\TILYZ (Z KLĂ„ULK in “Sales and Marketing Management,â€? the current top ten EBI markets, many of which are also top ten DMAs, are New York City, Los Angeles, Chicago, Washington D.C., Dallas, Philadelphia, San Francisco, Houston, Miami and Boston. )HZLK VU ZHSLZ [YLUKZ HUK ^OH[ OHZ [YHUZWPYLK PU [OL Ă„YZ[ X\HY[LY VM JVUZ\TLY spending points to a positive, if still cautious, attitude towards our recovering economy, and the retail industry seems to believe more growth is on the way. Mark Zandi, chief economist and co-founder of Moody’s Analytics, reported at the January Big Retail Show an improving job market, increased availability VM JYLKP[ [OL YLJLU[ [H_ J\[ L_[LUZPVU HUK [OL Ă„]L to six percent nominal sales growth of the holiday season as reasons to be upbeat.

Among the major themes of the National Retail -LKLYH[PVUÂťZ [O (UU\HS *VU]LU[PVU HUK ,_WV were mobility, multichannel integration and social media. An increased focus on customer-centricity and seamless channel experiences as well as direct marketing are optimal. Customer-Centricity or “Clientelingâ€? refers to researching customer information, including birthdays and shopping preferences, in order to be able to cater to desires. Direct marketing optimization assesses marketing program effectiveness, whether online, mobile or instore, to determine what works and what does not work for a company. Along with the various opportunities emerging for the retail industry, there are some challenges ahead. According to the New York Times article published PU -LIY\HY` ¸*VTWHUPLZ >HYU ;OH[ /PNOLY Prices Are Looming,â€? there is a probability that the prices in retail and other industries will increase by autumn. This is as a result of the upcoming rise of the price of cotton, which has reached its highest level in more than a decade, as well as increases in the cost of leather and polyester. Retail prices ^LYL Ă…H[ VY SV^LY K\YPUN [OL YLJLZZPVU HUK UV^ P[ÂťZ important for the retail industry to raise prices to WYV[LJ[ ZVTL VM [OLPY WYVĂ„[Z ;OPZ TLHUZ [OH[ P[ PZ crucial for retailers to stay away from price points when presenting their Unique Selling Position, and instead, should build on the opportunity to attract the target consumer on the basis of style, variety, or quality and to establish an emotional connection between brand and consumer.

6


COMPETITIVE ANALYSIS

Physical Stores: UTEP Advertising recognizes jcpenney to be in direct and indirect competition with a plethora of department and specialty stores that range from local and regional venues to the national markets. jcpenney’s direct competitors and key threats are Kohl’s, Macy’s, Sears, Target and Wal-Mart. These are well-established national retail stores that offer similar products that jcpenney offers. Macy’s, Sears, and Target have long, rich histories like jcpenney, ^P[O HSS VM [OLT ILPUN MV\UKLK MVY V]LY `LHYZ whereas Kohl’s and Wal-Mart are considered newcomers, both starting in 1962. UTEP Advertising’s primary research was able to YLWSPJH[L [OL ÄUKPUNZ [OH[ HYL Z[H[LK PU [OL JHZL study, where Macy’s and Target are the biggest threat to jcpenney. According to UTEP Advertising survey research, females, ages 25-34, are 59 percent and 41 percent more likely to shop at Target and Macy’s, respectively, where jcpenney stands at a lower 23 percent. Target is the overall winner in terms of brand choice, brand commitment, word of mouth and brand leadership. This is largely due to Target’s colorful and inviting aesthetics, exclusive partnerships with top designers and recognized brands at affordable prices. Macy’s, in contrast, offers upscale brands such as Armani, Burberry, and Louis Vuitton as well as many exclusive and private brands, and is certainly recognized by their nationally televised Thanksgiving Day Parade.

0UKPYLJ[ JVTWL[P[PVU HZ PKLU[PÄLK PU [OL JHZL Z[\K` are specialty stores that offer in-style fashion for men and women, such as Banana Republic, Crate & Barrel, Express, IKEA, New York & Co., Old Navy, Pottery Barn and Victoria’s Secret. UTEP Advertising further investigated the appeal of specialty stores and found out through primary research many more stores that offer competition to jcpenney in every product category they offer. Participants in our focus groups agreed that specialty stores are preferred over department stores because they are convenient, easy to walk through and “[they] don’t waste a lot of time browsing for things [they] don’t need.” This leads us to include discount, regional, and specialty stores in the product categories jcpenney participates in. Dillards, Nordstrom, Marshalls, Ross, TJMaxx, AmericanApparel, Forever 21, Guess, H&M, The Limited, and Pier 1 Imports are a few examples of stores that indirectly compete with jcpenney. Also, because jcpenney houses beauty salons and photo studios, national, independently owned salons and freelancers must be considered as indirect competition.

These websites include Amazon.com, Walmart.com, Target.com, Sears.com, Overstock.com, Macys.com, Kohls.com, QVC.com, and Kmart.com. >L HSZV Z\NNLZ[ MHZOPVU ZWLJPÄJ VUSPUL ^LIZP[LZ as direct competitors because they offer the styles of clothing that are close to what jcpenney offers. Because there are so many out there, UTEP (K]LY[PZPUN ^PSS ZWLJPÄJHSS` PKLU[PM` / 4 JVT HUK Zara.com as key competitors as they are listed in the [VW IYHUKZ VM [OL ^VYSK HJJVYKPUN [V 0U[LYIYHUK JVT»Z ;VW )YHUKZ YLWVY[ Based on different variables, e.g. Advertising, Events and Sponsorships, Number of U.S. stores, and Revenue, a side-by-side comparison chart has been provided on the following page.

“There’s no better friend to any merchant

than a fair competitor.” - James Cash Penney

Online Stores: jcpenney’s heavy investment in its online presence is also being noted by UTEP Advertising, which leads to the inclusion of the top Internet websites that directly and indirectly compete against the jcp.com website.

7


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SWOT ANALYSIS STRENGTHS

WEAKNESSES

››› jcpenney is one of America’s leading retailers, with over 1,100 stores operating throughout the U.S. and Puerto Rico.

››› UTEP Research found that 41 percent of the women interviewed

››› jcpenney carries the largest apparel catalog in the U.S. ››› jcpenney focuses on customer service to increase customer retention. ››› jcpenney is taking an innovative approach by giving women what they want and focusing their marketing efforts on her. ››› jcpenney offers quality products at affordable prices. ››› Women associate jcpenney with affordable prices. ››› jcpenney offers a variety of services and products such as interior decorating, optical services, hair salon, portrait studio, wedding and gift registries, gift cards, gift-wrapping, jcpenney rewards, and credit cards, along with the apparel department. ››› jcpenney is collaborating with People Style Watch in order to increase brand awareness and improve store perception. ››› jcpenney has contributed over $100 million to local after school programs by supporting youth organizations. ››› jcpenney is strengthening their image among its target market by

are not aware of brands that jcpenney carries. ››› jcpenney’s perception is related to negative attitudes. ››› jcpenney is associated with older demographics. ››› Fifteen percent of women interviewed see jcpenney as stylish. ››› jcpenney has an inconsistent brand image throughout the store, catalogs, webpage and advertising. ››› The efforts from jcpenney to contribute to the community are not recognized by our target market. ››› Unlike the competition jcpenney lacks Events and Sponsorships that are recognized by the public. ››› jcpenney does not differentiate itself from its competitors. ››› jcpenney does not have a brand voice that speaks to its customers. ››› jcpenney has limited in store display options.

becoming more present online in social networking sites.

OPPORTUNITIES

THREATS

››› The target consumer is buying for herself, for her kids and for

››› Cotton, leather and polyester prices have reach their highest

her spouse. ››› jcpenney launched “high profile brands” such as Sephora, MNG, Nicolle Miller, Allan B, Bisou Bisou, Liz Clairbone

level in more than a decade; directly affecting current prices for apparel. ››› The current unemployment rate for adult women is 7.9

among others in an effort to be perceived as a modern, trendy store. ››› Ninety five percent of women interviewed use the Internet on a daily basis, through various devices. They use social networking sites and look for new products online. ››› Women aged 25-34 uses a variety of traditional media on a daily basis. ››› By 2011, 250 new stores around the country will open. ››› jcpenney has launched the “Findmore” technology, adding large touch screens in more than 120 stores. ››› Consumer confidence is steadily rising.

percent. ››› Bank credits are being reduced. ››› Current economic pressures affect consumer sales. ››› The main competitors for jcpenney include not only department stores but also specialties stores. ››› Women see Macy’s and Target with the best overall image compared to jcpenney.

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CONSUMER PROFILE Demographics

Psychographics

For the purpose of this report, UTEP Advertising is identifying the consumer target audience as GenMix. GenMix represents the American female consumer between the ages of 25 to 34, a mix of two recognized generations, Generation Y and Generation X. According to the U.S. Census Bureau the total number of women who qualify as GenMix HYL ^OPJO YLWYLZLU[Z WLYJLU[ VM the total U.S. female population. The ethnicity of these women is as follows:

In examining the GenMix consumer we have PKLU[PĂ„LK [OL ]HYPV\Z JVTTVUHSP[PLZ PU [OPZ JVUZ\TLY group. In an audience research study conducted I` =/ HUK 4;= PU HUK HJJVYKPUN [V HU article published on fashionablymarketing.me, these women are in search of products that will help them in their current lives. They are a strong consumer group who is entering different stages of their lives to include marriage, establishing and building careers, and having children, among other things.

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According to the VH1/MTV Research study, GenMix is driven by emotional motivations to buy things that make them feel closer to the people they care about. A Bazaar Magazine research study reveals that 23 percent of GenMix is more prone to attend movies at least once a month. When it comes to her personal entertainment and nightlife, she is 45 percent more likely to visit a bar or club as a means to go dancing at least once a month. All these activities are part of the consumer’s desire to experience the value of togetherness with the people they care about.

>>> >>> >>> >>> >>>

Following the U.S. Census Bureau information, WLYJLU[ VM [OLZL ^VTLU SP]L PU [OL ZV\[O WLYJLU[ PU [OL ^LZ[ WLYJLU[ PU [OL TPK^LZ[ HUK WLYJLU[ SP]L PU [OL UVY[OLHZ[ YLNPVU 0U HKKP[PVU ^VTLU WLYJLU[ OH]L ZVTL JVSSLNL VY HU HZZVJPH[LÂťZ KLNYLL WLYJLU[ OH]L H IHJOLSVYÂťZ KLNYLL WLYJLU[ HYL OPNO ZJOVVS NYHK\H[LZ WLYJLU[ OH]L HU HK]HUJLK KLNYLL HUK WLYJLU[ ^VTLU OH]L SLZZ [OHU H high school education. Also, according to the U.S. Census Bureau, the income of females in this age IYHJRL[ YHUNLZ IL[^LLU [V (TVUN [OPZ ZHTL NYV\W WLYJLU[ ^VTLU HYL THYYPLK ^OPSL WLYJLU[ HYL widowed, divorced, separated or have never been married.

Another key motivator that drives GenMix, according to the VH1/MTV Research study, is the desire to buy products that will express who they are. GenMix SPRLZ I\`PUN ZWLJPĂ„J IYHUKZ MVY ZOVLZ JSV[OLZ accessories, personal care and beauty products. For fashion, these women focus on price and are PU[LYLZ[LK PU Ă„UKPUN SLZZ L_WLUZP]L ]LYZPVUZ VM styles they see on the runway. GenMix likes to “look MVY SLZZš H[ WSHJLZ ^OLYL [OL` JHU Ă„UK KLZPNULY collaborations like the ones seen in Target and H&M or stores like Zara and Forever 21. According to Kit Yarrow, a consumer psychologist at Golden Gate University and author of the book Gen BuY:

How Tweens, Teens, and Twenty Somethings Are Revolutionizing Retail, this generation visits the THSS MV\Y [PTLZ H TVU[O HUK ZWLUKZ TVYL [OHU minutes per visit. The VH1/MTV Research study reports that GenMix likes the sense of empowerment. They want to buy things that will make them feel like they are getting things done successfully while preparing for the future. The Bazaar Magazine research study also reveals that GenMix is 36 percent more likely to be engaged in a form of exercise like pilates or yoga and 22 percent are engaged in a regular exercise program at a club or other facility. GenMix depends heavily on their friends for product referrals, brand recommendations, and style cues because they are dedicated shoppers. For this reason GenMix is 27 percent more likely to make purchases online and is 13 percent more likely to think she dresses more fashionably than most people. Twenty four percent HYL [OL Ă„YZ[ VM [OLPY MYPLUKZ [V [Y` UL^ WYVK\J[Z VY services and 15 percent tend to buy technology or electronic products. According to the study, GenMix would rather have no furniture at all than not have a [LSL]PZPVU ZL[ HZ .LU4P_ PZ PUĂ…\LUJLK I` [OL HK]LU[ of communication technologies and platforms. GenMix loves television ads with celebrities doing interesting, entertaining things. They also love “Celebingâ€?, if their favorite celebrity makes a brand endorsement in an authentic way, they view it as a friend recommendation. GenMixers love to hear about celebrity mistakes because it helps validate their own mistakes, causing them to feel better about themselves. Per the VH1/MTV Research study, GenMix likes to stay updated on things that are happening around them in order to feel connected with their world.

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SAMANTHA THOMPSON

VANESSA BROWN

According to Forrester Research they like to watch full-length TV shows and shows online. Social networking sites like Facebook and Twitter, videosharing sites such as YouTube, instant messaging, text, blogs, and email have elevated importance among GenMix. Also, following the Radar Research report, GenMix enjoys reading blogs written by both professional editors or subject experts and nonprofessionals alike, they browse shopping websites, subscribe to email newsletters, and visit before they purchase items to make sure they get a great deal. Finally, it is evident from the various studies and articles on this consumer segment that the GenMix woman has more choices than ever, and she is more discerning with her spending in the face of what has been a tough economic climate. The GenMix consumer is a growing population, and the fact that these women are entering into different life stages makes them an important consumer who is in an age of acquisition. To effectively attract the GenMix consumer, it is imperative to understand that she is driven by value, a sense of identity and motivated by emotion, and she looks for seemingly contradictory attributes such as: variety and constancy; edge and practicality; and high style and sensible prices.

AGE: 29 RELATIONSHIP STATUS: Single CHILDREN: One ETHNICITY:

TV SHOWS Fringe, House, Bones, Jersey Shore

MOVIES Twilight, Meet Joe Black, P.S. I love you

MAGAZINES Cosmopolitan, Vogue, InStyle

Hispanic/African American

AGE: 25 RELATIONSHIP STATUS: Single CHILDREN: None ETHNICITY: White/Non Hispanic

MUSIC HOMETOWN: Dallas EDUCATION: Associates Degree INCOME: $35,000

Rock, Pop, Dance/Electronic

HOMETOWN: Los Angeles

WEBSITES Facebook and YouTube

EDUCATION: Finishing College

HOBBIES

INCOME: $35,000

Going to the Movies

CHRISTINA MOORE

AGE: 27 RELATIONSHIP STATUS: Married CHILDREN: Two ETHNICITY: White/Non Hispanic HOMETOWN: Baltimore EDUCATION: College Graduate INCOME: $47,000

TV SHOWS

AGE: 33

MOVIES Any Action

RELATIONSHIP STATUS: Married

MAGAZINES

CHILDREN: None

MUSIC Country and Jazz

WEBSITES

ETHNICITY: Hispanic HOMETOWN: Chicago

eBay and On Line Shopping

EDUCATION: College Graduate

HOBBIES

INCOME: $42,000

Working Out and Traveling

The Real Housewives of Beverly Hills

MOVIES Action, Chick Flicks, Comedy

MAGAZINES Cosmopolitan, People Style Watch, Allure

MUSIC Pop, Alternative Rock

WEBSITES Facebook

HOBBIES Dancing, going out with friends

VERONICA GARCIA

Chuck, Big Bang Theory, Bones

Real Simple, People, Parenting

TV SHOWS

TV SHOWS Clean House, Project Runway, Glee

MOVIES Money Trap, Pretty Woman, Dirty Dancing

MAGAZINES Marie Claire, Glamour, Elle, Lucky, Shape

MUSIC Rock and Pop music

WEBSITES Facebook, MSN, Food Network

HOBBIES Dancing and Working Out.

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RESEARCH PLAN AND FINDINGS Objectives >>> >>> >>> >>> >>> >>>

;V KLÄUL WZ`JOVNYHWOPJZ HUK KLTVNYHWOPJZ VM GenMix consumer group; To discover GenMix’s media usage; To pinpoint GenMix’s perceptions of jcpenney; To explore shopping behaviors among GenMix target audience; To indentify GenMix’s attitudes towards jcpenney’s competitors; and To determine the level of jcpenney brand awareness among the GenMix audience.

Strategies >>> >>>

A mix of qualitative and quantitative research methods were used to meet objectives; and Focus groups, online surveys, and the collection of secondary research were used in the research phase of the campaign development.

Methodology and Findings: FOCUS GROUPS Seven focus groups were conducted to determine the GenMix consumer’s attitudes and behaviors towards technology, media advertising and their purchasing criteria toward department stores. The fundamental objective of the focus groups was to discover their recall and likeability to a variety of creative approaches and strategies. Close to 95 percent of participants recalled advertisements that had unexpected situations in the executions. These same “surprises� were seen as distinctive compared to other creative approaches that were reviewed. These “surprises� or “unexpected� results included use of music, humor, and storylines, among others.

Through personal observation, UTEP Advertising found that women between the ages of 25 to 29 are more inclined to use the Internet for social networking and entertainment. Furthermore, WLYJLU[ VM V\Y WHY[PJPWHU[Z ^LYL PU[LYLZ[LK PU fashion, entertainment, and gossip type magazines YLNHYKSLZZ VM [OLPY HNL YHUNL ;OLZL Ă„UKPUNZ JVTL as a result of a pre-focus group opportunity which allowed participants to search the Internet and review magazines while waiting for the focus groups to begin. As a part of the focus group activity, our participants were given the opportunity to choose from different Z[VYL NPM[ JHYKZ 2VSOÂťZ 4HJ`ÂťZ QJWLUUL` :LHYZ Target and WalMart). They were told to choose the one gift card they would be most inclined to purchase for a friend. Their responses were recorded. Then they were asked to select the gift card they would want for themselves. Once again, their responses were recorded. This activity ^HZ ZWLJPĂ„JHSS` KLZPNULK [V Z[\K` WLYJLW[PVUZ VM jcpenney against its key competitors. Overall, Target

HUK 4HJ`ÂťZ ^LYL JOVZLU WLYJLU[ VM [OL [PTL Participants said that they regarded these particular stores as more. fashionable, prestigious, and stylish than the other stores included in the activity. At the end of the focus groups, participants were shown nine different color combinations to identify their preferred color associations. The primary color used was the jcpenney red and the secondary colors ranged from purple to white to an assortment of metallics. The desired color combinations most preferred by the participants were red with black, red with white, red with gold, and red with purple. These color combinations were seen as elegant and expensive.

Online Surveys Two separate online surveys were distributed nationwide via surveymonkey.com. The surveys were designed to identify the GenMix consumer’s shopping behaviors, brand perceptions and media \ZHNL ( [V[HS VM Z\Y]L`Z ^LYL JVSSLJ[LK ^P[O [OL following results. 7904(9@ 9,:,(9*/! 65305, :<9=,@: KEY FINDINGS ON MEDIA USAGE: INTERNET USE >>> >>> >>> >>> >>> >>>

focus group gift card selection

\ZL .VVNSL HZ [OLPY WYPTHY` ZLHYJO LUNPUL WYLMLY [L_[PUN HUK JLSS WOVUL communication with friends and family \ZL ZVJPHS UL[^VYRPUN ZP[LZ Z\JO HZ Myspace, Facebook, and Twitter, among others \ZL -HJLIVVR HZ [OLPY WYPTHY` ZVJPHS networking site ILJVTL MHUZ VM H ZVJPHS UL[^VYRPUN ZP[L VM a retail store due to promotional offers \ZL [OL 0U[LYUL[ VU H KHPS` IHZPZ

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>>> >>> >>> >>> >>> >>> >>>

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Electronic Media ^H[JO JHISL [LSL]PZPVU WYLMLY LU[LY[HPUTLU[ WYVNYHTTPUN >>> ^H[JO TV]PLZ VU [LSL]PZPVU >>> ^H[JO [LSL]PZPVU K\YPUN [OL WYPTL[PTL daypart >>> WYLMLY [V ^H[JO ()* UL[^VYR [LSL]PZPVU >>> WYLMLY [V ^H[JO -6? UL[^VYR [LSL]PZPVU >>> >>>

Print Media YLHKZ THNHaPULZ H[ SLHZ[ VUJL H TVU[O >>> KV UV[ OH]L H THNHaPUL Z\IZJYPW[PVU >>> WYLMLY [V YLHK MHZOPVU JVU[LU[ THNHaPULZ >>> WYLMLY [V YLHK LU[LY[HPUTLU[ JVU[LU[ magazines >>> ZLHYJO MVY PU[LYLZ[PUN HY[PJSLZ PU THNHaPULZ >>> WYLMLY [V YLHK *VZTVWVSP[HU >>> WYLMLY [V YLHK 7LVWSL 4HNHaPUL >>> YLHK H UL^ZWHWLY >>>

Radio >>> >>> >>> >>> >>> >>>

SPZ[LU [V YHKPV SPZ[LU [V YHKPV PU [OL TVYUPUN SPZ[LU [V -4 YHKPV SPZ[LU [V 0U[LYUL[ YHKPV SPZ[LU [V WVW T\ZPJ SPZ[LU [V HS[LYUH[P]L YVJR

Key Findings on Shopping Behaviors and Brand Perceptions: SHOPPING BEHAVIORS: >>> >>>

ZOVW H[ SLHZ[ [^PJL WLY TVU[O MVY HWWHYLS ZWLUK H[ SLHZ[ [^V OV\YZ ^OLU ZOVWWPUN for apparel

ZWLUK H[ SLHZ[ VU HWWHYLS WLY ]PZP[ ZWLUK H[ SLHZ[ VU HWWHYLS WLY ]PZP[ >>> VM ^VTLU ZOVWWLYZ NV HSVUL >>> VM ^VTLU ZOVWWLYZ NV ^P[O MYPLUKZ >>> VM ^VTLU ZOVW MVY [OLTZLS]LZ >>> VM ^VTLU ZOVW MVY [OL O\ZIHUK IV`MYPLUK >>> VM ^VTLU ZOVW MVY [OLPY JOPSKYLU >>> Price, quality, and style are the key factors they consider when shopping for apparel >>> Money availability, necessity and special occasion are the primary factors that motivate them to shop >>> \ZL [OL 0U[LYUL[ HZ H ZV\YJL [V SVVR MVY new products in the market >>> \ZL MYPLUKZ HZ H ZV\YJL [V SVVR MVY UL^ products in the market >>> \ZL THNHaPULZ HZ H ZV\YJL [V SVVR MVY UL^ products in the market

VM ^VTLU Z\Y]L`LK ZOVW H[ QJWLUUL` VM ^VTLU L_WLYPLUJLK H ZVTL^OH[ pleasant in-store experience >>> VM ^VTLU ZLL QJWLUUL` HZ HMMVYKHISL >>> VM ^VTLU ZLL QJWLUUL` HZ Z[`SPZO >>> VM ^VTLU ZLL QJWLUUL` HZ J\YYLU[ >>> VM ^VTLU ZLL QJWLUUL` HZ ZPUJLYL

>>>

>>>

>>>

>>>

Brand Perceptions VM ^VTLU ZOVWWLYZ MYLX\LU[ ;HYNL[ ^OLU shopping for apparel >>> VM ^VTLU ZOVWWLYZ MYLX\LU[ =PJ[VYPHZ Secret when shopping for apparel >>> VM ^VTLU ZOVWWLYZ MYLX\LU[ 6SK 5H]` when shopping for apparel >>> VM ^VTLU ZOVWWLYZ MYLX\LU[ 4HJ`Z ^OLU shopping for apparel >>> VM ^VTLU ZOVWWLYZ MYLX\LU[ 2VOSZ ^OLU shopping for apparel >>> VM ^VTLU ZOVWWLYZ MYLX\LU[ QJWLUUL` when shopping for apparel >>> When comparing the in-store experience between specialty and department retail stores, Target leads the competition >>> Women identify Macy’s with the best overall image compared to other department retail stores >>>

jcpenney Perceptions VM ^VTLU VUS` RUV^ ZVTL VM [OL IYHUKZ that JC Penney carries >>> VM ^VTLU KV UV[ RUV^ ^OPJO IYHUKZ jcpenney carries >>>

Primary Research Findings SOCIAL MEDIA A review of the jcpenney Facebook page and the posting of consumer comments provided us with interesting insight into jcpenney online customer service. jcpenney currently has over 1.5 million -HJLIVVR MHUZ ^P[O H KHPS` H]LYHNL VM WVZ[Z representing online exchanges between Facebook fans and jcpenney employees. Customers are taking the opportunity to post positive comments regarding the great customer service, the ample selection of clothing and sizes, prices, and the use of coupons. Among these Facebook users there seems to be a strong sense of brand loyalty. Customers who speak negatively about jcpenney are met with comments from other customers saying, “not all jcpenney locations are that way,� the “staff is helpful� and the “online service is not at bad as they say.� Negative comments are usually the result of incorrect catalog orders shipped, the hassle of online ordering, defective diamond rings, and the lack of response from calls about various issues. At the time of our review, feedback about the new online store on Facebook was not seen.

Secondary Research Findings UTEP Advertising collected secondary research from numerous sources to include scholarly websites, social networking sites, business databases and [YHKL W\ISPJH[PVUZ >L PKLU[PĂ„LK QJWLUUL`ÂťZ ZHSLZ HUK LHYUPUNZ YLWVY[Z HZ ^LSS HZ P[Z WHZ[ Ă„UHUJPHS situations from business databases such as EBSCO, LexisNexis and the jcpenney corporate website to yield insights to our company analysis. We also researched social and demographics trends from

13


the Pew Research Center and the U.S. Department of Health. Furthermore, the U.S. Bureau of Labor Statistics yielded information for our market analysis. The jcpenney case study provided valuable statistics [OH[ HPKLK V\Y LMMVY[Z [V KLÄUL [OL JHTWHPNU»Z objectives. Finally, we studied detailed information from the competitor’s backgrounds and strategies from Business Week, social networking sites HUK WYLZ[PNPV\Z ÄUHUJPHS YL]PL^Z )LJH\ZL V\Y secondary research was so extensive, we have compiled these sources in a separate listing which follows this narrative. All of these sources provided fundamental information, statistics and data for all of the analyses in the Situation Analysis as well as MVY V\Y *VUZ\TLY 7YVÄSL (KKP[PVUHS ZV\YJLZ MVY our subsequent sections such as those for media, promotions and interactive, have cited sources as needed. Secondary Research Sources Adage Advertising Age Bureau of Labor Statistics Business Week Chain Store Age Datamonitor Direct Marketing News Dollars and Sense Ecommerce Junkie Information Week jcpenney Company Kohl’s Company Los Angeles Times Macys Company Market Intellisearch MarketWatch Mediamark Research Inc. Mobile Commercial Daily Pew Research Center PR Newswire Sears Company Sloan Work and Family Research Network Sugar Inc. Target Company The Wall Street Journal U.S. Census Bureau U.S. Department of Health and Human Services VH1 Strategic Insights and Research Walmart Company

CAMPAIGN STRATEGY Overview

Advertising Campaign Objectives

UTEP Advertising is aware that any advertising effort geared towards females between the ages of 25-34 needs to be interactive, engaging, and it must connect with her on an emotional level to truly be effective. We recognize that our GenMix consumer is going through various stages in her life that can be very contrasting, depending on whether she is single or married, and whether or not she has children. Regardless of the roads she takes, she is still the MHZOPVUHISL [YLUK` VW[PTPZ[PJ ZLSM JVUÄKLU[ M\U loving, savvy woman she has always been.

>>>

She loves surprises. She loves the unexpected. How do we know this? She told us. She told us over and over again in focus groups, in one-on-one conversations, and in our survey research. jcpenney wants to become her favorite shopping destination. UTEP Advertising knows that to do this we must continually give her “shocks” and “awes” through advertisements, products, and memorable shopping experiences. As a result, we have developed a brand voice for jcpenney that speaks both to the young mother as well as the aspiring professional. It is, after all, all about her.

Marketing Objectives >>> >>> >>>

Acquire female customers ages 25-34, Retain female customers ages 25-34, and Increase shopping frequency and grow share of wallet among current female customers ages 25-34.

>>> >>> >>> >>>

>>> >>> >>>

Develop an integrated marketing communications campaign that is cohesive across all elements: creative, media, interactive, direct response, public relations, promotions and event marketing; Change perceptions of jcpenney as an outdated and un-fashionable store; Develop a distinctive brand voice that speaks to the GenMix consumer; Create an emotional connection between the GenMix consumer and the jcpenney brand; Increase awareness of departments and corresponding brands carried by jcpenney among our GenMix consumer; Drive GenMix consumer to experience a jcpenney store or jcp.com; 4V[P]H[L .LU4P_ JVUZ\TLY [V THRL ÄYZ[ [PTL a nd repeat purchases at jcpenney and jcp.com; and Generate excitement over the contemporary, chic style of jcpenney and its exclusive brands.

Advertising Campaign Strategy Connect each element in this IMC approach through a common strategic approach and creative theme and messaging; Revitalize jcpenney’s image with an attitude adjustment in order to appeal to the GenMix consumer audience; Capitalize on jcpenney’s recent fashion transformation and continue to enhance it;

14


Set the stage and emotional appeal to the GenMix consumer through a compelling creative strategy and relative executions; :WLJPÄJHSS` PKLU[PM` HUK ZWV[SPNO[ KLWHY[TLU[Z Z\JO HZ [OL IYPKHS ZHSVU WVY[YHP[ Z[\KPV ÄUL QL^LSY` department, beauty salon, home furnishings, and various apparel departments in all areas of the campaign, from promotions and interactive to direct response and public relations; Create curiosity through the use of a two-week teaser JHTWHPNU WYPVY [V [OL SH\UJO VM [OL -LIY\HY` campaign to generate curiosity and jumpstart the excitement for the subsequent 12 month campaign ^OPJO ^PSS JVUJS\KL H[ [OL LUK VM 1HU\HY`

Our Big Idea UTEP Advertising believes that in order to become the retailer of choice for the GenMix customer, jcpenney must connect with her on an emotional level. Our primary research has found that the consumer already considers jcpenney as a logical and positive choice when it comes to value and quality. This creates a valuable opportunity to build upon existing perceptions. We will leverage this brand strength and offer our consumer something truly exciting. Surprise! is an excellent way to complement jcpenney’s current advertising efforts, because it adds on to jcpenney’s current fashion-authority transformation. Our Surprise! campaign will

JHWP[HSPaL VU [OL ZLSM PUK\SNLU[ JVUÄKLU[ ZH]]` woman. There wouldn’t be a successful business woman or a great mother if it were not for the woman that is behind those labels. Surprise! connects with this woman by creating an attitude that resonates with her.

“surprise! connects with this woman by creating an attitude THAT RESONATES WITH HER.” - UTEP Advertising

Throughout our focus groups there were many recurring themes, which led us to the conclusion that this consumer group craves what we call “The Unexpected.” They like being caught off guard. They truly enjoy surprises. Although they expect jcpenney to be value oriented the bigger question is, what surprises them about jcpenney? Using “The Unexpected” idea as our umbrella concept allows us to develop a brand image campaign that will, in return, allow the GenMix customer to re-discover jcpenney. This campaign strategy strategically uses the consumer’s current perception of the store to its advantage by presenting it in its new, evolved manner.

Positioning Statement jcpenney is the store that will consistently surprise the .LU4P_ JVUZ\TLY ^P[O H JVUÄKLUJL HUK LULYN` [OH[ PZ YLÅLJ[LK PU P[Z L_JS\ZP]L IYHUK JVSSLJ[PVUZ J\[[PUN edge in-store technology which offers a customized shopping experience, and its customer service.

15


CREATIVE DIRECTION & EXECUTIONS Objectives >>> >>> >>> >>>

Develop a creatively appealing brand voice for jcpenney; Develop a creative concept that is appealing, cohesive, and consistent in all executions; Make jcpenney stand out from the competition with a vibrant creative direction; and Develop a simple yet clear message that resonates with the GenMix consumer.

Strategy >>> >>> >>> >>>

>>>

Surprise our GenMix audience by showing her a jcpenney they didn’t know existed; Create emotional advertising elements that will resonate with the GenMix consumer; Create clever, unexpected executions that will surprise our consumer; Incorporate the use of iconic elements as mnemonic devices to stimulate curiosity, interest and recall; and Develop a continuous, unique art direction and apply it to all creative materials.

Teaser Campaign OBJECTIVES >>>

Create intense buzz about the launch of the Surprise! advertising campaign

STRATEGY >>>

Design a variety of creative executions that will generate interest but be void of any sponsor

>>>

Strategically schedule media placements to include billboard, interactive, newspaper and network television.

Teaser Campaign Creative Executions The teaser campaign, which will be executed for two weeks beginning in mid-January, supports our overall campaign strategy of creating an element of the unexpected. Creatively, a “random” red carpet image with the message “Get ready. We’re rolling out the Red Carpet will generate curiosity because widely recognizable icon and typically associated with glitz and glamour. By omitting information as to what event it pertains to, it is sure to create tremendous buzz.

GET READY WE’RE ROLLING OUT

GET READY CAMPAIGN BILLBOARD

GET READY CAMPAIGN WALLSCAPES

THE RED CARPET

A continuous image of a red carpet will be used in front of a white background throughout all of the print executions. Fifteen-second television spots will feature a carpet being rolled out against a white background with music from Aerosmith’s iconic Walk This Way. Again, all creative executions will be void of any sponsor logo. To support the creative intent, executions will be designed for 14’ x 48’ outdoor poster panels, full page four color newspaper ads, interactive banners, and 15-second TV spots. At the end of the two-week teaser campaign, the logos of both jcpenney and ABC will be integrated into the ads, both print and electronic. jcpenney has been associated with the Oscars telecast for several years, but this effort will elevate their sponsorship to a new level and support our efforts to revitalize jcpenney’s image and help establish jcpenney’s new brand voice.

16


79 7HDVHU ´*HW 5HDG\ ZHҋUH UROOLQJ RXW WKH 5HG &DUSHWµ

CU Red carpet Music: Walk this Way intro

CU women legs walking towards the middle of the red carpet

CU women walking on the red carpet towards the camera

Cross Dissolve, Screen goes white, Get Ready... logo

CU Women’s legs stops on the red carpet

Cross Dissolve, Screen goes white Get Ready... logo

During our primary research, our GenMix consumers PKLU[PÄLK T\ZPJ HZ [OL RL` LSLTLU[ MVY Z\JJLZZM\S broadcast spots. As a result, UTEP Advertising has selected music for all electronic executions that will project high energy and optimism necessary to capture the GenMix consumer at an emotional level while promoting jcpenney’s new attitude.

79 7HDVHU ´*HW 5HDG\ ZHҋUH UROOLQJ RXW WKH 5HG &DUSHWµ

CU Red carpet rolling out Music: Walk this way intro

CU Women legs passing through the red carpet

Z\YWYPZL

Cross dissolve, screen goes white with surprise!

Cross dissolve, jcp logo appears

Cross dissolve, abc logo appears

Surprise! Campaign Executions ART DIRECTION FOR PRINT EXECUTIONS The campaign’s psychological continuity by means of theme, image, tone, and attitude will be achieved with the use of our consistent art direction that UTEP Advertising calls “casual high-fashion.” For example, full-page, four-color magazine ads will contain silhouette images on warm-color backgrounds that consumers can relate to, and are designed to arouse an emotional response. Copy will be limited to headline, tagline and price.

Z\YWYPZL >>>

The campaign’s physical continuity will be embodied through:

>>>

the surprise! tagline that precedes the jcpenney logo;

>>>

“jcp.com” as the call to action; and

>>>

the warm-colored backgrounds.

MUSIC FOR ELECTRONIC EXECUTIONS

These three aspects will be included in all Surprise! executions. To complement the jcpenney lowercase logo, surprise!, in lower case, serves HZ H ÄUHS statement and is a strong way of communicating jcpenney’s newly created brand voice.

Classic hits such as “Walk this Way” by Aerosmith, “ La Grange” by ZZ Top and more recently, “I Like the Way You Move” by The Bodyrockers, are the chosen songs because they transcend generations and remain ever-present in modern day pop culture. In addition, these songs serve a secondary purpose, in the form of a mnemonic device. Due to the energy these songs evoke, we should create a little space in the consumer’s mind that gets them excited about jcpenney whenever they hear this type of music. Examples and brief descriptions of creative executions follow.

BILLBOARDS

UTEP Advertising’s primary research showed that the colors red, black, purple, white and gold were the ones that GenMix consumers felt evoked a feeling of elegance and sophistication. Therefore, we will implement these colors in all of our executions. Helvetica Neue, in its different weights, is the typography that has been selected for this direction. jcpenney already uses Helvetica as its typeface, so transitioning to Helvetica Neue is a logical choice. It gives us the ability to present jcpenney in a more modern way, while staying close to the typeface that consumers have already been exposed to. The sizes VM [OL OLHKSPUL HUK [HNSPUL ^PSS IL UV SHYNLY [OHU W[ and 15pt, respectively.

We will employ traditional 14’ x 48’ outdoor poster panels that will feature jcpenney’s refreshed image.

17


INTERNET

MAGAZINES

Internet ads will be in the form of banners, and contain the same JVU[LU[ MYVT IPSSIVHYKZ I\[ YL HYYHUNLK [V Ă„[ HJJVYKPUN [V [OL ZPaL of the banners.

Mandatories With the exception of the teaser campaign, all advertising will feature the new jcpenney logo and the surprise! tagline.

Full page, four color ads will be used

All of the collateral material designed to support the elements of this IMC approach to include Interactive, Direct Response, Promotions, Public Relations and Event Marketing will follow the same creative execution style that is utilized for the Surprise! campaign.

NEWSPAPER Full page, four color ads will be used.

TELEVISION The main goal of the TV spots is to showcase jcpenney’s new attitude and remove the “salesmanâ€? feel, therefore, creating a more fashionable, contemporary spot. The spots will sell jcpenney as HU L_WLYPLUJL HUK [OL` ^PSS LTWOHZPaL [OL ILULĂ„[ of living the jcpenney lifestyle. Television spots will rely heavily on the energy of the chosen music. The ZLJVUK ZWV[Z ^PSS MLH[\YL MVV[HNL VM H TVKLS PU front of a white backdrop, being herself. She will be LUQV`PUN [OL TVTLU[ SVVRPUN ]PIYHU[ HUK Ă…H\U[PUN H UH[\YHS LULYN` [OH[ ^PSS Ă…V^ ^P[O [OL T\ZPJ ;OLYL ^PSS IL UV JVW` K\YPUN [OL Ă„YZ[ ZLJVUKZ VM [OL HK ;OL MVSSV^PUN Ă„]L ZLJVUKZ Z[HY[ ^P[O [OL UL^ surprise! tagline followed by the new jcpenney logo.

MS, model walking Music: Walk this way

Model keep walking facing camera

CU model’s legs, tilts up camera goes

CU to model’s body, tilts up camera goes

MS model grabbing her hair

MS to model walking towards through the camera

CU model winks

MS model walking against camera away from camera

Z\YWYPZL Cross dissolve, screen goes white with surprise!

Cross dissolve, jcp logo appears

TV Storyboards Surprise! : 30

18


MEDIA PLAN & EXECUTIONS Media Overview The challenge of a comprehensive media plan is to put the right message in front of the right consumer at the right place and at the right time. UTEP Advertising has devised a media plan that not only does all of the above, but also does so in a cost LMÄJPLU[ HUK TLKPH LMMLJ[P]L ^H` -VY[\UH[LS` V\Y GenMix consumer uses media and likes advertising. 6\Y WYPTHY` YLZLHYJO JVUÄYTZ [OH[ )\[ ZOL PZ H busy lady... she works, she has a family, she’s active with extracurricular activities. Therefore, we have JYLH[LK H TLKPH LMMVY[ [OH[ YLÅLJ[Z OLY SPMLZ[`SL HUK not only uses traditional media but also incorporates traditional media in nontraditional places. A pre-launch campaign media blitz will be strategically rolled out two weeks prior to the launch of the main Surprise! campaign, scheduled to premiere during the 84th Academy Awards. This strategy goes hand-in-hand with the actual surprise element of the one-year campaign, which will begin PU -LIY\HY` )LJH\ZL [OPZ [LHZLY JHTWHPNU plays on the excitement of the Academy Awards, we will negotiate an exclusive partnership with the ABC Network for the airing of both the 15-second [LHZLY ;= ZWV[Z HUK [OL ZLJVUK ;= ZWV[Z ^OPJO will launch the actual Surprise! campaign. The goal is to place the jcpenney advertising everywhere the target audience is and at a time she is receptive to the message. Along with the creative direction of the campaign the advertising will be placed in unexpected places creating a real Surprise! with our target audience.

Media Objectives To reach females between the ages of 25 and YLWYLZLU[LK I` ^VTLU HSZV referred to as GenMix. The target audience is divided into key tiers. These tiers represent our consumer’s marital status and whether or not she has children. Each tier is titled accordingly.

>>>

Tier M - Married women

Tier S - Single women

Tier MC - Married women with children

Tier SC - Single women with children

Media Strategy

>>>

Dividing the consumer group into tiers is important as this consumer group’s taste and use of media varies extensively according to their lifestyle and life stage. For example, a young married woman with children is much more inclined to watch programming on cable networks such as Nickelodeon and Disney channel. In contrast, a single female without children will be drawn to shows such as The Bachelor and Glee.

>>>

To reach 85 percent of the current target H\KPLUJL VM MLTHSLZ ^OPJO [YHUZSH[LZ [V ^VTLU ^P[O HU H]LYHNL MYLX\LUJ` VM V]LY H MV\Y ^LLR period for a total frequency level of 65.

>>>

To strategically deliver advertisements on a national level to support jcpenney’s advertising and marketing efforts. In addition there will be spot advertising in the south, west, and southeast areas of the United States; these areas have a large concentration of the target consumer.

Strategically we will use a media dispersion approach, which allows us to schedule placements throughout the year but at different levels. Some of the media types such as Internet, television, and magazine will be placed year-round on a consistent basis. Other media types such as cinema, outdoor, and radio will have seasonal placements. Key advertising periods will be at the launch of the JHTWHPNU K\YPUN [OL Ă„YZ[ X\HY[LY HUK HNHPU K\YPUN the fourth quarter to support the holiday season. This is important, as we need to stay competitive with V[OLY OPNO WYVĂ„SL YL[HPSLYZ ;OPZ Z[YH[LNPJ HWWYVHJO also allows us to meet our reach and frequency levels.

To schedule media placements using a pulsing method to correspond with important parts of our target consumer’s lifestyles. Advertising will vary from quarter to quarter. The year long campaign will start with a teaser effort during the SHZ[ [^V ^LLRZ VM 1HU\HY` ;OLU [OL ÄYZ[ ISP[a VM [OL JHTWHPNU ^PSS IL PU -LIY\HY` along with the promotion of the Oscars. During the fourth quarter there will be another increase for the holiday season. The campaign will run MYVT 4PK 1HU\HY` [OYV\NO 1HU\HY`

>>>

To complement the ‘unexpected’ creative elements, an emphasis on both traditional media matched with traditional media in nontraditional places will be scheduled in an effort to create a mixed-media approach.

>>>

To achieve all the media objectives within a total TLKPH I\KNL[ VM TPSSPVU ^P[O H JVZ[ WLY WLYZVU VM HWWYV_PTH[LS`

In addition to scheduling ad placements on a national level, we will include spot advertising in key regions with the use of newspaper, outdoor and radio advertising. Recognizing traditional media types and vehicles such as newspaper, magazines, television and radio and identifying how these media types can be read, watched and listened to in a nontraditional format HSSV^ \Z [V LMĂ„JPLU[S` YLHJO V\Y .LU4P_ JVUZ\TLY Television commercials on Internet sites such as abc. com and hulu.com and radio spots on Pandora. com help accomplish this objective and support our creative direction of the ‘unexpected’ and the ultimate Surprise.

19


A media partnership with the ABC Network for the two-week teaser campaign and the month of February will allow us to extend our budget in a cost LMĂ„JPLU[ ^H` 3PRL^PZL TLKPH WSHJLTLU[Z ^PSS IL scheduled in vehicles in such a way that appropriate frequency discounts will be negotiated. We will stretch our media budget in an effort to get the ‘biggest bang for our buck’. Magazines ($13,856,085) Total Number of FP/FC ads: 78 Avg. cost per ad $180,725 Avg. RPC per magazine title 6.57

Magazines are a crucial medium for the campaign because they communicate emotion, prestige, quality, and tradition. They are the ideal medium for our GenMix consumer because she tends to read magazines in her limited but free time. With a long shelf life, both in stores and in homes, comes an important pass along audience. Also, the high quality color of magazine production allows us to present the jcpenney brands in an effective way. The vehicles chosen for magazines were chosen based VU YLZ\S[Z MYVT V\Y YLZLHYJO ;OLYL HYL [P[SLZ [OH[ Ă„[ into the different tiers of the consumer. VEHICLES: For all tiers

TV Guide

For Tier M: In Style, Women’s Health, For Tier MC: New Parent Magazine, American Baby the First Year of Life, For Tier S: Cosmopolitan, Brides For Tier SC: New Parent Magazine, American Baby the First Year of Life, People Weekly TIMING: Magazine ads will be scheduled on a consistent basis throughout the campaign. Different titles will be incorporated to address each consumer tier at key points in the campaign calendar. Television Total ($38,560,505) Network Television ($28,291,610) ;V[HS VM ZLJVUK ZWV[Z! Avg. cost per ad $146,353 Avg. rating per vehicle 6.03

Television is the ideal medium to communicate emotion. The target market likes to watch TV to take a breather from their busy life and enjoy their favorite

shows. They watch network TV, especially during the prime-time hours. Network television gives jcpenney the broad coverage that this campaign needs. Almost 99 percent of Americans have a television at home, so this will be an effective way to reach the consumer. During the teaser portion of the campaign and during the launch month of February, we will schedule 15-second commercials exclusively with the ABC Network in promoting the February Oscar’s telecast. This will create a key media partnership that HSZV ^PSS JVUULJ[ \Z [V H OPNO WYVÄSL UH[PVUHS L]LU[ )LNPUUPUN PU 4HYJO ^L ^PSS ZJOLK\SL ZLJVUK commercials on the following networks and vehicles. VEHICLES: ()* +HUJPUN ^P[O [OL :[HYZ .YL`Z (UH[VT` .VVK 4VYUPUN (TLYPJH ;OL )HJOLSVY -6? .SLL American Idol, House, Bones) TIMING: Throughout the year with a higher concentration K\YPUN [OL ÄYZ[ HUK MV\Y[O X\HY[LYZ

Project Runway, E! News, True Hollywood Stories, Jersey Shore, Movies, House Hunters. VEHICLES: For Tier M: For Tier MC: For Tier S: For Tier SC:

HGTV, TNT, Style Disney Channel, Nickelodeon, and Food Network E! , Bravo, MTV Disney Channel, Nickelodeon, and Bravo

TIMING: All year, with higher impact during the fourth quarter. Syndicated Television ($5,664,347) ;V[HS 5\TILY VM ZLJVUK ZWV[Z! Avg. cost per ad $131,729 Avg. rating per vehicle 4.2

The use of syndicated television increases our frequency at an affordable price. In particular, original programming such as Entertainment Tonight complements the glitz and glamour of the Oscars, which marks the launch of the main Surprise! campaign. VEHICLES: Entertainment Tonight.

Cable Television ($4,604,548) Total

5\TILY VM ZLJVUK ZWV[Z Avg. cost per ad $4,891 Avg. rating per vehicle .83

Cable Television offers a variety of networks that HSSV^ \Z [V ZWLJPĂ„JHSS` [HYNL[ [OL MLTHSL JVUZ\TLY based on her life stage, and to do so with minimal advertising waste. A big advantage of cable television is that it is less expensive than network television. Also, research showed that GenMix consumers have a preference for cable over satellite or syndicated TV. The vehicles chosen for cable are networks that carry entertainment and reality shows popular with this consumer segment, and ads will be placed on prime-time. In addition, because of the Ă…L_PIPSP[` VM JHISL HK]LY[PZPUN ^L ^PSS PUJS\KL ZVTL daytime programs watched by GenMix mothers who are home during the day. Ads will be placed mostly on primetime hours during programs such as: Real Housewives, Top Chef,

TIMING: 7YPTHYPS` K\YPUN [OL Ă„YZ[ X\HY[LY ^P[O HKKP[PVUHS advertising during the fourth quarter holiday season. Radio ($1,629,000)

;V[HS 5\TILY VM ZLJVUK ZWV[Z Avg. cost per ads: $4,500 Avg. rating per vehicle 1.0

(JJVYKPUN [V YLZLHYJO WLYJLU[ VM V\Y [HYNL[ audience are heavy traditional radio listeners, tuning in from their cars. Radio is an ideal because it is a medium that actively involves its listeners, allowing jcpenney to tie into local markets and target our GenMix consumer effectively. VEHICLES: Westwood One TIMING: Spots promoting campaign promotions and special events will be scheduled to support those activities.

20


Newspaper Total ($8,570,216) National Newspaper ($5,340,680) Total Number of FP/FC ads 36 Avg. cost per ad $182,095 Avg. RPC per newspaper title 4.3

Sunday Supplement ($1,436,030) Total Number of FP/FC ads 4 Avg. cost per ad $718,015 Avg. RPC per newspaper title 1.75

Local Newspaper ($1,793,506) Total Number of FP/FC ads 81 Avg. cost per ad $62,530 Avg. RPC per newspaper title 3.06

use of search engines and keyword advertising, social networking and media sites, among others, provide us with a key opportunity to schedule traditional style advertising such as TV and radio commercials in online formats.

TIMING:

Advertising will be set up on a click-through basis, which also provides us with evaluation and tracking methods to monitor the advertising placement. Banners and webmercials will be also used in some of the vehicles chosen.

Mall Advertising ($2,834,000)

VEHICLES:

The target audience does not read the daily newspaper, however, they do read the Sunday edition, when they have more time, and they pay particular attention to Sunday supplements featuring department store advertisements and sales. Sunday supplements reach many local markets on a national level and have a high quality color format. As part of the teaser campaign, ads will be scheduled accordingly. Additional advertising to support important retail events such as Valentine’s Day, Mother’s Day, Backto-School Season and Christmas will be placed in national newspapers and in some of the local papers from jcpenney’s targeted geographical areas.

Google.com; Yahoo.com; Bing.com; Facebook.com; MySpace.com; Twitter.com; Flixster.com; Bebo.com; Pandora.com; Abc.com; Hulu.com; Fancast.com; Clicker.com; aol.com; eBay.com; amazon.com; oscars. com.

VEHICLES:

Avg. cost: $24,065 per month Total Wallscapes: 12 Avg. cost: $79,192.

Sunday Supplements: USA Weekend and Parade. Newspapers Nationals: USA Today, New York Times Newspapers Locals: Dallas Morning News, Houston Chronicle, Los Angeles Times, Miami Herald, San Francisco Chronicle, St. Petersburg Times, The Mercury News, The Orange County Register, TIMING: Sunday supplements will be used only the Sunday of the Oscar’s. National and local newspapers will be used for the teaser campaign and during February in relation to the Oscar’s, also during important retail events. Internet Advertising ($7,317,670)

;`WL VM HKZ! JSPJR [OYV\NO HKZ ^LITLYJPHSZ Avg. cost per click $1. 10/Avg. cost per webmercial $138,643

The target audience is online everyday, whether it is as part of their job, for product research, to listen to music, to watch television programs, to connect with friends, or to shop. The Internet is an affordable medium and there are limitless opportunities for creative executions. The

TIMING: Throughout the year with special emphasis during the teaser and launch portions of the campaign as well as the fourth quarter retail season. Outdoor ($5,763,304) ;V[HS )PSSIVHYKZ!

Out of home is an impactful marketing vehicle that contributes to a brand’s overall advertising campaign effectiveness. It provides a direct sales lift by increasing brand awareness and consideration. It also increases the effectiveness of other marketing vehicles. Billboards have the advantages of 24-hour exposure, geographic selection and a big creative space for messaging. Poster panels along with wallscapes to support the teaser campaign in selected locations, based on jcpenney’s three geographical areas of increasing sales: California, Florida, and Texas. They will be placed Z[YH[LNPJHSS` ULHY OPNO [YHMĂ„J ZOVWWPUN THSSZ HUK PUKLWLUKLU[ QJWLUUL` Z[VYL SVJH[PVUZ 6\[ VM [OL [VW markets cities where billboards will be placed are: Los Angeles, San Francisco, Dallas, Houston, Tampa Bay, Miami, Sacramento, Orlando, San Diego, San Antonio, West Palm, Jacksonville. VEHICLES: Billboards 14’ X 48’ >HSSZJHWL š ? š WLY TV

;LHZLY HKZ ^PSS IL WSHJLK K\YPUN [OL Ă„YZ[ X\HY[LY Seasonal ads will be scheduled during the second and third quarters.

Total Number of Locations: 784 jcpenney stores at malls Type of Ads: 784 Interior Banners/120 Tall Boys Avg. cost per Ad $3,500 IB per month/ $750 TB per month

Our research showed that women are active shoppers, making Mall Advertising a must to reach consumers at, or just before, the point of purchase. jcpenney has 784 mall-format stores around the country. Using eye popping, full color displays can deliver a clear and dramatic advertising message. VEHICLE: 0U[LYPVY IHUULY š ? š TV ;HSS IV`Z š ? š WLY TV TIMING: Interior Banners will be placed for one month during the teaser and the start of the campaign in all the jcpenney stores located at malls. Tall boys will be placed during holiday season on the ZWLJPĂ„J HYLHZ ^L HYL MVJ\ZPUN Cinema Advertising ($480,000) (]N JVZ[ WLY TVU[O

Going to the movies is one of the favorite activities of our GenMix consumer. She goes to the movies at least once H TVU[O LP[OLY ^P[O OLY ZPNUPĂ„JHU[ V[OLY OLY MYPLUKZ VY OLY JOPSKYLU *PULTH THRLZ MVY H JVZ[ LMĂ„JPLU[ TLKP\T that can deliver advertisements in a powerful way to an attentive audience before the beginning of the movie. VEHICLE: 9LNHS *PULTH .YV\W :JYLLUZ HYV\UK [OL country :WHJL! ZLJVUK ZWV[ JVTTLYJPHS TIMING: +\YPUN 4HYJO Ă„YZ[ X\HY[LY 1\UL HUK 1\S` ZLJVUK HUK [OPYK HUK 5V]LTILY +LJLTILY MV\Y[O X\HY[LY Contingency ($1,614,400) Total Media Expenditures ($80,619,000)

21


22

4

4

2

ABC - The Bachelor

16 4 12 4

4 2 2 2

36 12 24 12 15 15 12 12 12

Bravo Disney E! Food Network HGTV MTV Nickelodeon Style TNT

5,000 5,000

15,000 15,000

clicker.com ebay.com

Cinema National CineMedia

Tallboys

784

8

4

Interior Banner

40

40

Bulletin Wallscapes Mall Advertsing

450

30

40

20,000

20,000

Outdoor

20,000

20,000

20,000

yahoo.com

20,000

24 20,000

twitter.com

pandora.com

oscars.com

myspace.com

hulu.com- webmercial

google.com

5,000

5,000

5,000

5,000

5,000

5,000

15,000

@0=9,7 *53

15,000

5,000

15,000

fancast.com 20,000

5,000

facebook.com

15,000

20,000

5,000

bing.com

15,000

20,000

5,000

12

abc.com- webmercial

15,000

6

The Orange County Register Internet

bebo.com

6

St. Petersburg Times

5,000

6

SJ Mercury News

5,000

6

San Francisco Chronicle

15,000

6

Miami Herald

15,000

6

Los Angeles Times

amazon.com

6

Houston Chronicle

aol.com

6

Dallas Morning News

12

2

Newspaper- Local

2

Parade

4

4

USA Weekend

4

4

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

2

2

2

2

2

18

140

USA Today Newspaper- Sun.suplements

6

14

14

14

10

12

10

20

3

4

16

New York Times

Westwood One Natl. Newspaper- National

Entertainment Tonight Radio

18

4

4

FOX - House Television- Cable

60

14

2

2

FOX - Glee

Television- Syndicated

14

4

3

16

3

2

5

4

4

1

11

2

8

4

1

1

1

1

May

FOX - Bones

2

1

4

1

1

1

1

Apr

FOX - American Idol

8

4

3

ABC - Grey's Anatomy 10

4

4

ABC - The Oscar's

8

8

ABC - Dancing With the Stars

4

ABC - Good Morning America

Women's Health Television- Network

TV Guide

People Weekly

New Parent Magazine

2

1

InStyle

2

Mar

2

Feb

1

2

Jan

Cosmopolitan

Brides

American Baby The First Year of Life

Medium Type MAGAZINE

Media Schedule

450

40

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

18

2

2

2

2

4

12

4

18

1

1

1

2

June

jcp's Surprise! Flow Chart

450

30

40

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

18

7

7

7

2

2

4

12

2

16

4

2

1

2

1

July

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

2

2

2

2

2

18

6

10

10

10

14

14

10

12

12

20

8

1

2

1

1

Aug

18

1

1

1

4

4

4

12

4

18

2

2

8

8

1

1

1

Sept

18

2

12

4

16

1

1

1

1

1

Oct

450

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

2

2

2

2

2

18

6

12

12

12

10

10

10

18

10

20

6

9

3

6

8

2

2

1

1

Nov

30

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

20,000

3

3

3

3

3

18

9

16

16

16

10

20

16

16

14

28

6

1

2

2

2

1

Dic

30

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

7,500

2

2

2

2

2

6

6

6

12

12

6

12

6

18

2

8

1

2

2

2

1

Jan


INTERACTIVE Overview:

Strategy:

UTEP Advertising has found that our target market is on the Internet every day. Whether she is shopping, listening to music, watching her favorite television programs and chatting with friends on her social networking site, she is there several times a day. In MHJ[ 5PLSZLU 5L[9H[PUNZ PKLU[PÄLZ OLY \ZL IV[O H[ home and at work, to be close to two hours per day. jcpenney has a clear presence on the Internet with both their shopping site and their Facebook page. Our primary research, which included a review of the -HJLIVVR WVZ[PUNZ PKLU[PÄLK QJWLUUL`Z Z\JJLZZ PU online customer service. However UTEP Advertising believes an improved interactive component, online HUK VMÅPUL ^PSS LUJV\YHNL JVUZ\TLYZ [V [HRL advantage of jcpenney’s online resources and inspire them to physically go and visit a jcpenney kiosk and/or store, with the ultimate goal of making a purchase.

>>>

Establish a fashion forum and online blogging opportunity with information on store brands and designers;

>>>

Create a virtual fashion experience that promotes the jcpenney product lines and encourages repeat visits to the online site with extended time spent online;

Objectives: >>>

Create important relationships with GenMix consumers;

>>>

Create an interactive shopping experience for consumers that will, in turn, generate brand loyalty to that same online experience;

>>>

Inform and educate consumers on the name brands and services that are offered by jcpenney;

>>>

Promote online shopping at jcpenney.com; and

>>>

+YP]L [YHMĂ„J [V [OL WO`ZPJHS QJWLUUL` Z[VYLZ

online. Those comments provide valuable feedback to jcpenney. Consumers can also message the jcpenney’s customer service department. YOUR VIRTUAL CLOSET AT JCP.COM/ VIRTUALCLOSET 4HYJO Funded Separately

Create a video channel that showcases [LSL]PZPVU JVTTLYJPHSZ J\YYLU[S` PU Ă…PNO[ instructional webinars from store designers and fashion experts, and behind the scenes footage from special events and fashion shows; and

>>>

>>>

Provide year round opportunities for consumers to interact personally with jcpenney.

>>>

All of the following tactics will be overseen by the jcpenney Interactive/Social Media departments within the jcpenney Corporation.

Tactics: JCPSURPRISE.COM -LIY\HY` HUU\HSS` jcpSurprise.com is jcpenney’s all new fashion blog. Based on consumer preferences, this blog will cater to our consumer’s interest in fashion, while giving jcpenney a platform to disseminate information about upcoming apparel brands, current trends, and V\[Ă„[ Z\NNLZ[PVUZ QJW:\YWYPZL JVT ^PSS HSZV MLH[\YL exclusive ‘inside scoops’ from the store designers in a non-commercial format, as well as advanced notice of upcoming events. This interactive blog will allow visitors to leave comments, writing openly about the jcpenney brands and reviewing them

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GenMix consumers will be invited to create their V^U VUSPUL V\[Ă„[Z [OYV\NO [OLPY WLYZVUHS ¸QJW =PY[\HS Closetâ€? account. In creating their account, they I\PSK [OLPY V^U H]H[HY [OH[ WLYZVUPĂ„LZ [OLT [OYV\NO physical characteristics such as height, weight, skin and hair color. Once a quarter, during the duration of [OL JHTWHPNU [OL Ă„YZ[ ^VTLU [OH[ JVTWPSL HU VUSPUL V\[Ă„[ [VW IV[[VT ZOVLZ HJJLZZVYPLZ HUK ¸OHUN P[ \Wš PU [OLPY JSVZL[ ^PSS YLJLP]L WLYJLU[ VMM [OL LU[PYL V\[Ă„[ PM [OL` W\YJOHZL P[ PU H physical jcpenney store. This will encourage visits to stores and also provide opportunities for additional purchases during their visit. It also gives them a

23


JOHUJL [V [Y` VU [OL V\[Ă„[ ILMVYL W\YJOHZPUN P[ ;OPZ ZHTL V\[Ă„[ JHU IL ¸ZOHYLKš ^P[O MYPLUKZ [OYV\NO [OL Add-a-Friend online promotion as described later in this proposal. The Virtual Closet will also host several chat sessions during the campaign calendar, featuring fashion tips from brand designers. This online feature will be advertised on the jcpenney website, Facebook.com, Twitter.com, and Polyvore. com accounts. Consumers will also hear about this VUSPUL MLH[\YL VU [OL UL^ QJW YH^ @V\;\IL JOHUULS

JCPFASHION FORUMS 4HYJO 1\UL (\N\Z[ 5V]LTILY HUU\HSS`

JCPQR READER AND QR CODES Available throughout the Campaign Year Funded Separately The current jcp app available for smart-phones will be updated to include a QR code reader. QR codes will be used for all promotional executions dealing with Public Relations, Interactive, Event Marketing, and Promotions. Pictures of the QR codes will direct users to jcp.com, jcp’s Virtual Closet, the jcp Facebook.com page, and the jcp/ youtube page for exclusive videos. The application will also send mobile coupons and special offers that consumers can use at any jcpenney store.

These fashion forums will be held four times during the campaign year and available in a variety of ways‌ from webinars on the jcp/youtube channel to scheduled live video chat sessions on Facebook 3P]L *VUZ\TLYZ ^PSS IL UV[PÄLK PU HK]HUJL VM [OL webinars so that they can register for the events. ;OLZL MHZOPVU MVY\TZ ^PSS MLH[\YL OPNO WYVÄSL Z[VYL designers such as Cindy Crawford, Sephora artists HUK RL` KLZPNULYZ MYVT OPNO WYVÄSL IYHUKZ Z\JO HZ Liz Claiborne, Mango, Jones New York and others. <[PSPaPUN LTHPS PU]P[H[PVUZ HUK -HJLIVVR UV[PÄJH[PVUZ consumers in the current database will be invited to participate in the forums.

SURPRISE! YOU’RE OUR VIP. Available throughout the Campaign Year Funded Separately

JCP RAW – YOUTUBE.COM CHANNEL (WYPS Funded Separately

JCP STYLE KIOSK Available throughout the Campaign Year Funded Separately

The jcpenney/youtube channel will be refreshed as an exclusive way for our loyal consumers to view things jcpenney does “behind the scenesâ€?. These ‘looks’ will include outtakes from television commercials, exclusive interviews with various artists we feature in our advertisements, as well as nationwide events and fashion shows. We will also PUJS\KL Ă„YZ[ OHUK YLWVY[Z MYVT [OL ^PUULYZ VM [OL various promotional events, so that others can hear about the various online and in-store promotions throughout the year.

For the ultimate surprise, consumers visiting shopping malls across the country that also house H QJWLUUL` Z[VYL ^PSS IL KLSPNO[LK [V Ă„UK H ZWLJPHS jcpenney interactive kiosk featuring state-of-the art motion-sensor technology. The kiosks will be positioned in the interior of the mall, close to the existing jcpenney store. The kiosk will measure HWWYV_PTH[LS` Âť_ Âť_ Âť HUK ^PSS IL THUULK I` H jcpenney associate.

<ZPUN JVUZ\TLYÂťZ Ă„YZ[ UHTLZ QJWLUUL`ÂťZ :VJPHS 4LKPH Z[HMM ^PSS ^YP[L UV[PĂ„JH[PVUZ [V YHUKVT MHUZ on their Facebook walls promoting the latest events, sales, or coupon savings. This interaction on a personal level will make consumers feel like they get a “V.I.Pâ€? customer service experience at jcpenney. The jcpenney Facebook will continue to WVZ[ UV[PĂ„JH[PVUZ HUK YLZWVUZLZ [V JVUZ\TLYZ PU a timely fashion as well as conduct polls, and allow consumers to shop online via Facebook.

0UZPKL [OL RPVZR ^PSS IL H Ä_LK JHTLYH [OH[ ^OLU executed by the jcpenney associate will capture the consumer’s head to toe image and then display her image on a virtual mirror. Once she is projected on the virtual mirror, the camera tracks her movements. On a touch-screen monitor next to the virtual mirror, the consumer will be able to choose clothes that QJWLUUL` VMMLYZ Z\JO HZ V\[Ä[Z MYVT 45. I` 4HUNV and Call it Spring, and project them onto her virtual image. She can also select a background from a menu of locations and settings. At that point, she JHU TVKLS HUK WVZL PU OLY V\[Ä[ HSS ILPUN JHW[\YLK HUK ZH]LK [V HU LSLJ[YVUPJ ÄSL Once she has completed the activity, she will be given information on how she can secure her photo MVY WLYZVUHS \ZL (SS ÄSLZ ^PSS IL [YHUZMLYYLK [V [OL jcpenney portrait studio in the same mall location. She will have the option to stop by the portrait studio and pick up a framed, high-resolution portrait MVY HUK HSZV ZPNU \W [V OH]L [OL WVY[YHP[ transferred to her Facebook page.

StyleKiosk

24


DIRECT RESPONSE Tactics: Direct response marketing is just what it sounds like, directly reaching existing customers and potential customers on a personal level through the use of methods from private mailings to mass-media efforts such as magazine ads and infomercials. However, direct response efforts have grown over the past few years and now we see everything from email and mobile marketing to the development of consumer databases and loyalty programs. jcpenney has always had a direct marketing effort in place and recently updated their efforts with new versions of the traditional catalog. At UTEP Advertising, we agree that direct response efforts are important elements in the retail industry and proposed the following tactics to complement the jcpenney Surprise! campaign.

Objectives: >>> >>> >>> >>>

To build customer relationships directly with the GenMix consumer group; To communicate directly with current and potential GenMix consumers; ;V VMMLY PUJLU[P]LZ [OH[ KYP]L JVUZ\TLY [YHMÄJ [V the stores and the jcp.com website; and To build jcpenney’s current consumer database.

Strategies: >>>

>>>

>>>

Direct Mail Marketing allows us to send advertising materials directly to the consumer’s home; Email marketing and text messaging allows immediate communication with the targeted consumers through their Email accounts and personal cell phones; and SMS messaging provides opportunities to announce campaign promotions and online activities.

SURPRISE! MAGAZINE Quarterly

TPSSPVU KVSSHYZ MVY WYVK\J[PVU MVY [OL THNHaPUL HUK MVY THPSPUN MVY LHJO X\HY[LY A new consumer magazine will be introduced during the launch of the campaign which will position jcpenney as a fashion forward store. This new magazine will be used also to show new surprising styles at compelling prices. The four-color Surprise! 4HNHaPUL ^PSS TLHZ\YL š _ š HUK IL WHNLZ in length. It will feature editorial content to include articles on everything from the latest fashion looks, jcp fashion on a budget and home decorating tips to a special baby trendsetter section, wedding ideas and articles on beauty products and tips. Also, there will be articles highlighting jcpenney’s philanthropic activities and year round special events such as the Oscar’s sponsorship and the national Runway Tour. The magazine will initially be distributed to consumers who have an existing credit account ^P[O QJWLUUL` ( ZOVY[LY WKM ]LYZPVU WHNLZ VM the magazine will be available online with consumer registration. This registration effort will add to the existing jcpenney consumer database. As the campaign progresses, new consumers and Virtual Closet members will be able to sign up for the free online and mailed Surprise! magazine.

Surprise! Gift Card 4H` HUK 6J[VILY ,Z[PTH[LK I\KNL[! What better surprise is there than to receive a gift card in the mail from a friend? The Surprise! gift card will be mailed in May and again in October to J\YYLU[ KH[HIHZL J\Z[VTLYZ 0U VYKLY [V ÄUK V\[ what the customer has won she has to enter the gift card’s promo code online at www.jcp.com. The ]HS\L VM [OL JHYK ^PSS IL YL]LHSLK H[ [OL [PTL of her login to her account. If she does not have an existing account, she will be encouraged to register VUSPUL PU VYKLY [V YLKLLT [OL NPM[ JHYK ;OL gift card can be used toward an online or in-store purchase.

SMS messaging Scheduled throughout the campaign year Messages sent directly to current and potential consumers via their personal cell phones regarding in-store promotions and special events along with reminders to visit the Virtual Closet will be incorporated throughout the campaign period. We will be careful to not bombard the consumer with text messages as they can be irritating but will choose key periods and times to SMS the consumer when she is receptive to the communication.

Email messaging Scheduled throughout the campaign year FREE Email messages are currently sent to consumer’s email accounts and we will continue this practice. However, we will focus primarily on alerting current and potential consumers about in-store promotions and special events along with reminders to visit the Virtual Closet.

25


Txt me a jcp Coupon Available throughout the campaign year $75,000 When jcpenney holds in-store sales throughout the campaign, text messaged coupons will be sent to the consumer’s cell phones informing them about the sale itself. A picture message coupon will follow and the consumer can show the message to a store clerk and the code will be input/scanned into the register for the discount. This service will help jcpenney continue to be environmentally friendly by encouraging paperless coupons and savings to consumers. This direct response effort will only be available to those consumers that have a SmartPhone or access to applications through their cell phone.

Credit Card Statement Stuffers

PROMOTIONS Overview Consumer sales promotions represent a variety of short-term promotional techniques designed to motivate customers to purchase a product. But consumer promotions can do more than just encourage a consumer to make a purchase; they can be used to create product awareness and build brand loyalty. Because the retail industry is highly competitive, UTEP Advertising believes that a large variety of consumer promotions are necessary for the Surprise! Campaign. However, we also believe that the more interesting promotions are much more creative than coupons alone and have devised a group of sales promotions that are sure to interest the GenMix consumer. All of the following activities are designed with a 30-day window.

Available throughout the Campaign Year $1,048,344

Objectives

When jcpenney credit card customers receive their

>>>

incentive to shop: a special insert with exclusive offers, promotions, and information about jcpenney’s magazine, Sephora inside jcpenney, and the jcp giftwith-purchase tote bags, among other events. This direct response initiative is a simple yet effective way to communicate with existing jcpenney customers and motivate further purchases.

>>> >>> >>> >>> >>>

>>>

>>>

>>>

>>>

Demonstration of jcpenney products in the personality will attract the GenMix consumer to the jcpenney store; The use of promotional products will keep the name of jcpenney in front of the GenMix consumer; and The introduction of a frequency card for purchases will reward consumer loyalty.

Tactics SURPRISE! JCPENNEY IS TAKING YOU TO THE OSCARS! February 2012 $4,000

Encourage the GenMix consumer to experience location; Keep the name of jcpenney in front of the GenMix consumer; Stimulate interest in jcpenney and its store brands; Encourage purchase of store products; and Support consumer loyalty.

Strategy >>>

>>>

Appropriate product discounts will be used to attract the GenMix consumer to the jcpenney stores; Specially branded premiums will be given away to GenMix consumers when they visit the store as part of planned birthday promotion; High value contests and sweepstakes will be used to reward GenMix consumers;

This sweepstakes is the classic promotion for a free trip and helps launch the Surprise! campaign. To embellish on the existing six-year partnership with the Academy Awards, this promotion takes the winner and a guest to Hollywood for the annual Oscar’s event and telecast. One lucky jcpenney GenMix consumer and their guest will travel to California, stay overnight for three days and two nights in a four-star hotel, have their hair and makeup done for the event at a Los Angeles jcpenney hair salon, and have their pictures taken at the local jcpenney portrait studio. l from designer Rachel Zoe and loaned a diamond To enter, consumers with a credit account simply register online at jcp.com. For those consumers who do not have a credit account can apply online or in the store and are then eligible to enter the sweepstakes.

26


WHO’S THE BACHELOR’S BRIDE? CONTEST 4HYJO

This contest is held in partnership with ABC’s “The )HJOLSVYš HUK Z\WWVY[Z IV[O [OL Ă„UL QL^LSY` HUK the Modern Bride departments. The contest starts 4HYJO HUK JVUJS\KLZ VU [OL ZHTL 4VUKH` [OH[ ;OL )HJOLSVY WYVWVZLZ [V OPZ Ă„HUJt VU [OL ()* reality show. To participate, GenMix consumers will be invited to submit the name of the young lady they expect to be chosen at the end of the season. From those individuals selecting the correct choice, a random drawing will be held for a special Diamond Bridal Set. EASTER PHOTO (WYPS WHY[PJPWHU[

During the month of April GenMix consumers who have children will be given a special Easter discount when they bring their children in to the jcpenney portrait studio for their Easter Photo. The discounts will be available when consumers purchase one JOPSKYLUZ V\[Ä[ PU [OL QJWLUUL` Z[VYL VM [OLPY JOVPJL ;OL WVY[YHP[ Z[\KPV KPZJV\U[Z ^PSS YHUNL MYVT [V WLYJLU[ HUK ^PSS IL PKLU[PÄLK VU [OL WYPJPUN [HNZ VM the children’s apparel.

CUT-A-THON FOR 2 1\UL This is a promotion in cooperation with the Public 9LSH[PVUZ +LWHY[TLU[ VM QJWLUUL` +\YPUN [OL Ă„YZ[ two weekends in May, GenMix consumers will be contacted by email for a special jcpenney sponsored activity. In partnership with the American Cancer :VJPL[` (*: JVUZ\TLYZ ^OV KVUH[L H TPUPT\T of three inches of cut hair in the jcpenney hair salon will not be charged for the haircut. Their donation will support the manufacturing of human hair wigs for ACS patients. Additional hair services such as styling and coloring will be available to donors at a WLYJLU[ KPZJV\U[ ;OPZ ZHTL WYVTV[PVU ^PSS IL advertised nationally via the Internet and open to all interested participants. JCP ADD-A-FRIEND (\N\Z[

Service desk and will include fashionable tote bags styled to look like a snappy purse with the Surprise! and jcpenney logos positioned on the bag. LET’S COOK! 6J[VILY

Cooking in a department store? That right! Come meet the winner of Bravo TV’s popular Top Chef reality show as they prepare an in-store holiday meal using the popular Cooks cookware. The tables will be set with jcpenney dinnerware and utensils along with tablecloths and all of the necessary linens. Consumers will be offered a one-day only 25 percent discount off any purchase made in the housewares and linen departments as a result of the demonstration promotion. VIP FREQUENCY Year round

In tandem with the online Virtual Closet, GenMix JVUZ\TLYZ ^PSS IL UV[PÄLK [OH[ PM [OL` YLMLY Ä]L VM their friends to set up their own Virtual Closets, they will receive a free pair of shoes from the jcpenney shoe department to add to their own closet. This valuable premium must be picked up at their local Z[VYL ^P[OPU KH`Z VM UV[PÄJH[PVU 0M [OLYL PZ UV store in their area, the shoes can be ordered online. SURPRISE! IT’S YOUR BIRTHDAY CLUB Year Round

There’s nothing better than gifts on your birthday. GenMix consumers will receive a email birthday card and coupon for a free jcpenney branded gift when they stop in to pick it up at their local jcpenney store. Branded gifts must be picked up at the Customer

VIP FREQUENCY CARD

Consumers don’t have to be a credit account holder PU VYKLY [V LUQV` [OL ILULÄ[Z VM MYLX\LUJ` ZOVWWPUN and/or discounts. They just need to register for the frequency card during a visit to their local jcpenney store and bring the card with them on their store visits. Each time they make a purchase in the store, their card is swiped and they receive points for their W\YJOHZL 0M [OL` ZWLUK K\YPUN H ]PZP[ [OL` YLJLP]L WVPU[Z 6UJL [OL` YLHJO WVPU[Z they will receive discount points that can be used against store purchases. For example, to receive a KPZJV\U[ [OL` ULLK WVPU[Z" KPZJVP\U[ WVPU[Z KPZJV\U[ YLX\PYLZ WVPU[Z" HUK KPZJV\U[ YLX\PYLZ WVPU[Z >OLU [OL` \ZL their discount, the points will be deducted from their card but they can continue to reload their card with points by making additional in-store purchases.

27


PUBLIC RELATIONS Overview 7\ISPJ 9LSH[PVUZ 79 PZ H I\ZPULZZ WYHJ[PJL concerned with maintaining a public image for VYNHUPaH[PVUZ 6\Y WYPTHY` YLZLHYJO JVUÄYTLK [OH[ jcpenney has a good corporate image. However, in visiting with our GenMix consumers, very few of them were aware of the various activities and organizations that jcpenney supports. Few individuals knew about the afterschool programs and even less of them were aware of jcpenney’s association with the Boys and Girls Clubs. Therefore, UTEP Advertising has devised a Public Relations program that will highlight the activities jcpenney is currently associated with in addition to introducing several new activities that will promote the organization as a good corporate citizen.

Objectives >>> >>> >>>

To gain publicity for jcpenney’s philanthropic activities; To create interest in jcpenney through corporate hosted events and programs; and To sponsor celebrity events and concerts.

Strategy >>> >>>

>>>

The use of public media will help create publicity for the various proposed activities and events; Controlled media such as the jcpenney Facebook page will insure that our information is disseminated to our GenMix consumer; and Interactive media through the use of blogs and chat rooms will allow for year round promotion of our proposed events.

Tactics

THE GOLDEN HANGER FOUNDATION AND AWARDS jcpenney currently sponsors a number of philanthropic activities as listed in the company analysis. We would like to realign all of these corporate activities under a new foundation umbrella titled The Golden Hanger Foundation. This would allow for a more cohesive organization of activities and allow for improved publicity for the various events as the information would be generated from the foundation rather than the jcpenney commercial entity. That will also increase the credibility of the events As part of the new foundation, we will host the .VSKLU /HUNLY (^HYKZ :WLJPÄJHSS` .LU4P_ consumers will be invited to submit an entry that PKLU[PÄLZ [OLPY JVTT\UP[` ZLY]PJL HUK OV^ [OL` are working to improve their local neighborhoods. To coincide with Women’s History Month, the H^HYKZ ^PSS YLJVNUPaL ^VTLU MYVT HJYVZZ [OL <UP[LK :[H[LZ HUK H^HYK [OLT H JHZO award that they can use toward the continuation of their particular activity. The selected women will be featured throughout the year in the Surprise! magazine and booked on local television talk shows in their areas of the country. ,Z[PTH[LK JVZ[

RASCAL FLATTS SURPRISE! CONCERT TOUR SPONSORSHIP UTEP Advertising would like to continue the current sponsorship of the Rascal Flatts musical tour, as explained in the Event Marketing section of this proposal. However, we want to increase our exposure of this sponsorship and secure summer

concert appearances on the major television morning programs to include ABC’s Good Morning America, NBC’s The Today Show, and CBS’ The Early Show. Appropriate signage with these events and introduction of the group as being sponsored by jcpenney will be mandatory elements in the presentations. Press kits and news releases will be sent out in advance of all nationally televised events to announce the appearances. CUT-A-THON (Z WYL]PV\ZS` PKLU[PÄLK ^L ^PSS ^VYR ^P[O [OL Promotions Department on a special Cut-A-Thon HJ[P]P[` [OH[ ^PSS ILULÄ[ [OL (TLYPJHU *HUJLY :VJPL[` We will schedule interviews on national talk shows and send out press releases announcing the event HUK OV^ P[ ^PSS ILULÄ[ JHUJLY Z\Y]P]VYZ SPECIAL EVENTS ( U\TILY VM OPNO WYVÄSL L]LU[Z HYL PKLU[PÄLK PU [OL Event Marketing section of this proposal. As part of the activities, we will publicize these events through scheduled interviews on national television programs such as The View, the Ellen DeGeneres Show, Rachel Ray and others on both national broadcast and national cable television networks. These events include our national Runway Tour and the 12 Hr. jcp Music Jam. PRESS KITS AND PRESS RELEASES Throughout the campaign, we will sent out the appropriate news releases on the various activities hosted by the Golden Hanger Foundation and in support of the Rascal Flatts Surprise! Concert Tour. A special press kit will be sent out in late January HUUV\UJPUN [OL ZWVUZVYZOPW VM [OL 6ZJHYZ telecast and will include information on the company and the new Surprise! advertising campaign. In addition, press releases on the Golden Hanger Awards will include feature stories on the individual women will be circulated. Women’s magazines such as Cosmopolitan and InStyle will be contacted to promote these same individuals. ,Z[PTH[L JVZ[ H[ LHJO ;V[HSPUN

28


EVENT MARKETING Overview Event Marketing allows us to associate and link jcpenney to a series of events that will create experiences for our GenMix audience and generate a new perception of jcpenney as a hip, modern and trendy department store. Likewise, these events helps to create an emotional level between jcpenney and the consumer. By having a series of special events we are able to create and establish a connection and a relationship with the consumer, generate publicity and present the latest brands that jcpenney carries.

Objectives >>> >>> >>> >>>

To support the campaign’s objective to highlight jcpenney’s surprising fashion styles and brands; To create awareness among the consumers that jcpenney has updated and refreshed its image; To create positive change in the consumer’s perception of jcpenney; and To develop a stronger relationship between jcpenney and the GenMix consumer.

Strategy >>>

>>> >>> >>>

;V Z[HNL H OPNO WYVÄSL MHZOPVU L]LU[ HZ H ^H` to let the consumer know about the latest trends, brands and fashion styles that jcpenney carries; To utilize celebrities and music as a way to connect to the consumer on an emotional level; To support jcpenney’s afterschool programs and Golden Hanger Foundation, and To design and stage events that have the potential to be annual events.

Tactics

“JCPENNEY RUNWAY TOUR� (\N\Z[

THE 12 HR. JCP MUSIC JAM -LIY\HY`

MUSIC JAM

jcpenney will launch the campaign with The 12 Hr. jcp Music Jam. The one day concert will showcase 16 of the latest and hottest artists in the Kodak Theater in Los Angeles from 12 noon to 12 midnight VU :H[\YKH` -LIY\HY` /PNOSPNO[Z MYVT the concert will be edited and televised on CBS in OPNO KLÄUP[PVU HUK ^PSS MLH[\YL [OL UL^ Surprise! campaign commercials. The show will open with country music group Rascal Flatts and close with the iconic rock group Aerosmith. Other artists will range from Keith Urban and Lady Antebellum to Cheryl Crow and Enrique Iglesias. All artists will be asked to donate their talent fees in an effort to generate publicity and money for the jcpenney after school programs. Immediately following the concert, a CD/DVD will be available for purchase only in the QJWLUUL` Z[VYLZ (SS VM [OL WYVÄ[Z ^PSS NV KPYLJ[S` [V this program. This event will position jcpenney as an innovative and stylish store and will improve the relationship between jcpenney and the consumer by reaching them though a medium that is both emotional and energized‌ music.

QJWLUUL` ^PSS ZWVUZVY Ă„]L MHZOPVU Y\U^H` L]LU[Z PU the most exciting cities in the U.S. and with strategic NLVNYHWOPJ W\YWVZLZ 3VZ (UNLSLZ +HSSHZ 5L^ York, Chicago and Miami). These cities are selected ILJH\ZL [OL` HYL PU [OL [VW +4(Z HUK [OL` represent the geographic focus jcpenney is looking for in terms of potential increased sales in the states of California, Florida and Texas. We will include New York as it is considered the ‘fashion capital’ of the U.S. and Chicago gives us the additional geographic presence in a Top Five DMA. Our special runway events will be held in the strategic HUK OPNO WYVĂ„SL HYLHZ ^P[OPU LHJO VM [OLZL JP[PLZ Actual venues will be chosen based on audience capacity, dressing rooms, parking and rental fees. Ideally we will hold the Miami event in the South Beach area. Fair Park in Dallas will be utilized as will Pershing Square in Los Angeles. Chicago’s Portage Park Chicago Gate and New York’s Central Park areas will round out the various locations. The Runway Tours will be open to the public at no charge. Spectators will have the chance to see what happens behind the scenes before the runway show

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actually starts. By setting up an open style salon, viewers can watch as models get their hair and makeup done by stylists. Dressing rooms will be closed to the public but wardrobe racks featuring the jcpenney fashions will be visible. Local musical groups and artists will be invited and booked to perform prior to the actual fashion show. This openstyle fashion show gives the viewers a chance to see a fashion show both behind the scenes and from the audience’s point of view, allowing for an unusual experience with jcpenney. “The Runway Tourâ€? will be advertised during the month of July, one month before the tour begins in ]LOPJSLZ PKLU[PĂ„LK PU [OL TLKPH WVY[PVU VM [OPZ WSHUZ book. “THE RASCAL FLATTS SURPRISE! CONCERT TOURâ€? ;OYV\NOV\[ UTEP Advertising recommends the continuation of the Rascal Flatts concert series as we believe this popular country music group’s demographic

CONCERT TOUR FT. RASCAL FLATTS

is a perfect match with our campaign’s consumer group. Likewise, we feel the commitment between HUK OHZ I\PS[ [YLTLUKV\Z TVTLU[\T that should be continued rather than lost. However, we are recommending that the tour cities include venues in California because of the number of large volume stores and population centers. Because the concert tour will be called the Surprise! tour, we will incorporate a number of audience surprises at each performance to include a surprise backstage visit, a picture with the band during intermission, and four upgraded front row seats among others. jcpenney will produce a special concert CD which will be available for purchase only in jcpenney stores with all WYVÄ[Z MYVT [OL ZHSL KPYLJ[LK [V [OL .VSKLU /HUNLY Foundation.

INSTORE EXPERIENCE Red Carpet at jcp OSCARS CEREMONY Mid January - February Funded Separately At the beginning of the Surprise! teaser campaign, a red carpet will be installed at every jcpenney store. Depending on the layout of each individual store, [OL YLK JHYWL[Z ^PSS IL WSHJLK H[ [OL LU[YHUJL Z HUK KPYLJ[ JVUZ\TLYZ [V [OL ÄUL QL^LSY` OHPY ZHSVU portrait studio and apparel departments. In each of these department will be framed posters advertising the jcpenney sponsorship of the Oscar Telecast. This will generate excitement over jcpenney hosting the Oscar’s, as well as offer a more memorable in-store experience during the time-period.

In-Store Music AVAILABLE THROUGHOUT THE CAMPAIGN YEAR Funded Separately Using Mood Media North America, formerly known HZ ;Y\ZVUPJ ^L ^HU[ [V PUJVYWVYH[L ZWLJPĂ„J ZVUNZ that will play in the music loops provided to us by Mood Media North America. These songs give off the same high-energy that the consumers have been exposed to in our advertisements. By playing music from the spots, as well as other carefully

selected songs, we can strengthen and reinforce the new attitude that we’re introducing to jcpenney consumers.

jcp Collector’s Bags SPECIAL OCCASIONS Funded Separately jcpenney will introduce the jcp Limited Edition Collector’s shopping bags. These fun shopping bags, made out of recycled canvas, will be introduced for one time only per quarter, to commemorate special occasions. Customers can obtain one bag per purchasing trip, based on the purchase of a selected advertised brand, i.e. MNG by Mango, Call it Spring, etc. Each store will only receive IHNZ MVY [OL X\HY[LY [O\Z JYLH[PUN H KLZPYL MVY the bags and giving them a collector’s item status. The IHNZ ^PSS KYP]L [YHMÄJ [V [OL QJWLUUL` Z[VYLZ TV[P]H[L purchase of advertised brands, create strong word-of mouth, and hopefully become trending topics amongst women who become excited about the allure of Limited Edition Collections. THEMES: Z[ X\HY[LY $ 6ZJHYZ 9LK *HYWL[ ,KP[PVU -LIY\HY` UK X\HY[LY $ ,HY[O +H` ,KP[PVU (WYPS YK X\HY[LY $ 9\U^H` ;V\Y ,KP[PVU (\N\Z[ [O X\HY[LY $ 5L^ @LHYZ ,]L ,KP[PVU +LJLTILY

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jcp Shopping Bags

CAMPAIGN EVALUATION Available throughout the Campaign Year Funded Separately To further strengthen jcpenney’s new brand image, we are getting rid of the plastic shopping bangs, and introducing red paper bags with a coated, glossy Ă„UPZO VU [OL V\[ZPKL 0[ÂťSS OH]L [OL ¸:\YWYPZL QJWš logo on one side.

jcp show offs Available throughout the Campaign Year Funded Separately Consumers will have the option to take pictures of themselves wearing clothes, products, and accessories from jcpenney. These pictures will be uploaded to the jcpenney website and/or their social networking sites. Cameras will be positioned next to mirrors throughout various departments and consumers can choose at their own discretion to take photos of themselves and their friends. They can visit the jcpenney website to see if their photos have been featured. They will also be able to post and send their pictures via a message on Facebook. com with their full name and city. Fans of jcp’s Facebook page can “likeâ€? their favorite photos. The [VW Ă„]L TVZ[ SPRLK WOV[VZ VM LHJO X\HY[LY ^PSS IL featured in the surprise magazine.

When considering necessary methods to assess the success of a campaign, we will include the typical qualitative and quantitative methods of consumer panels, mall intercepts, personal interviews, and online surveys. Indeed, these are the best ways to determine that we have created a campaign that delivers a credible message to the right audience at the right place and time. Evaluation techniques will be incorporated during each quarter of the year long campaign. Using the top ten media markets as measurement arenas, ^L ^PSS OVZ[ UV SLZZ [OHU Ă„]L JVUZ\TLY WHULSZ PU HKKP[PVU [V L_P[ PU[LY]PL^Z WLY X\HY[LY ([ [OL LUK VM [OL JHTWHPNU WLYPVK [OPZ ^PSS `PLSK H Ă„UHS [V[HS VM JVUZ\TLY WHULSZ H[ HWWYV_PTH[LS` WLYZVU WLY WHULS HUK L_P[ PU[LY]PL^Z ^OPJO ^OLU combined, will be representative of a national sample. Tracking social networking sites and consumer JVTTLU[Z VU PKLU[PĂ„LK ISVNZ HUK ZVJPHS UL[^VYR sites will give us valuable qualitative information. Likewise, on a national scale, we will meter hits to the jcp.com website with special attention to those areas that have been added as a result of our campaign proposal, such as the Virtual Closet and registration areas supporting an increased consumer database.

The most obvious measurement of the campaign’s success is sales. If sales go up during and after the campaign, then the campaign will be considered successful. Likewise, during the campaign the effectiveness of the advertising can be measured by tracking sales as the ads are running and comparing them with sales prior to the start of the campaign. Sales literally tell us a lot about the efforts of the campaign and if the media plan was effective. However, it is equally important to UTEP Advertising to determine if we have developed consumer loyalty. We simply do not want one-time customers. We want customers who will return to jcpenney time and time again. The best way to determine this will be through evaluation efforts after the campaign is completed. Phone interviews and consumer panels will give us an opportunity to visit with shoppers beyond the proposed advertising efforts. At the end of the campaign we will have used the most extensive research methods available to evaluate if we have, in fact, increased the number of female consumers between the ages of 25 and 34, increased their shopping frequency, and grown jcpenney’s overall share of the consumer’s wallet.

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surprise!

The University of Texas at El Paso


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