JCPenney Plans Book by Bruin Advertising and Marketing Team

Uni ve r s i t yofCa l i f or ni a , LosAnge l e s| Adv e r t i s i ng&Ma r k e t i ngTe a m2 01 1

table of contents

2. TABLE OF CONTENTS 3. INTRODUCTION 4. EXECUTIVE SUMMARY

Research & Planning 6. RESEARCH OBJECTIVES & METHODS 7. CULTURAL CLIMATE 8. MARKET LANDSCAPE 9. BRAND ESSENCE 10. TARGET PROFILE 11. TARGET PROFILE 12. BRAND STRATEGY & POSITIONING

Creative Strategy & Executions 14. CREATIVE STRATEGY 15. “ONE DRESS” COMMERCIAL

16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

ONLINE PRESENCE ONLINE PRESENCE ONLINE PRESENCE PRINT IN-STORE EXPERIENCES IN-STORE EXPERIENCES & ON THE GO EVENTS GIVEAWAYS PARTNERSHIPS PARTNERSHIPS

Media Plan

27. MEDIA OBJECTIVES & STRATEGY 28. CAMPAIGN CALENDAR & BUDGET 29. MEDIA RATIONALE 30. MEASUREMENTS OF SUCCESS & EVALUATIONS 31. CONCLUSION 32. SOURCES & CREDITS

introduction

Eager to make an impact. Passionate and Optimistic. Articulate and Savvy. She loves who she is. Today’s woman is empowered. She’s paying off her Graduate loans, she’s wearing that something new as she walks down the aisle, she’s choosing to change lives before she changes diapers. With a demanding schedule, she’s always in transit and constantly finds new ways to assert her unique presence onto the world. Everything she does is an extension of her confident self—the way she works, the way she lives, the way she shops. But amidst her strength and charisma, she also experiences the very real and very vulnerable moments of anxiety and self-doubt—the moments where she curls up in her favorite sweater, drinks her homemade coffee, and snuggles with her favorite bed pillow.

Our campaign aims to reveal that JCPenney (JCP) can effectively cater to the needs of every woman, independent of where she is now and where she aspires to go. Whether change is taking place around her or within her, we understand that today’s woman admirably manages the pressures of constant adaptation. The last thing a woman needs is the additional stress of wondering whether her suit jacket will withstand her next interview, if her trusty coffee-maker will break down in the middle of the night, or if the purchases she makes are truly worth her hard-earned money. Retail should not merit a woman’s concern nor should it have a one-size-fits-all strategy. We see JCP as the optimal department store that catches women on their own terms, where they can shop confidently to live confidently, and then be on their way.

Most department stores, specialty stores, and brands sell prepackaged identities to these women who are keenly aware of their unique personalities and lifestyles, their strengths, and areas for improvement. But while those stores dwell on idealized appearances, JCPenney’s sincerity has the emotional connection that stands out.

JCPenney. You’re on your way. 3

executive summary

With a handshake and a warm smile, the interviewer leads Jennifer through the lobby to the exit. She steps out into a crisp breeze and takes a deep, satisfied breath, an electrifying tingle building in her toes.

Transition. It’s the central theme of a woman’s life when she finds herself between the ages of 25 and 34. Life during those ages consists of a whirlwind of decisions, changes, friends, and family. Jennifer is on the cusp of a new job, and her friends are switching careers, changing living spaces, getting engaged, having children, and everything in-between. Jennifer’s life, like those of her peers, is characterized by strengthening her self-identity in the context of rapid decision-making and change. Living in the post-recession economy has taught Jennifer the importance of value, and she loves to brag about finding the best deals on new dresses and outfits. She encompasses the concept of multiplicity, playing numerous roles in her daily life. She’s well past the confusion of her teenage years and now understands both who she is and who she wants to be.

In the age of Facebook and Twitter,

Expression is Everything. Our target consumer welcomes new, inexpensive, and convenient ways to express herself. For Jennifer’s generation, connection and expression inject beauty and meaning into everyday life. This connection is expected from friends and family, and as the Internet continues to increase our connectivity, it is also expected from the brands we interact with. Early into our research, we found that JCPenney has struggled to kindle an emotional connection with the women in our target demographic. Jennifer’s generation mostly sees JCPenney as dull, outdated, unfashionable, and cheap. However, our research also revealed some positive findings. JCPenney has made major strides as an online retailer and is well-established and well-known. JCPenney has the foundation and the potential to return to its previous status as a top department store, but for this to happen, there need to be major changes. JCPenney’s brand is, and has been for quite some time, in a state of decay. To connect with the target demographic, JCPenney needs a spark. It needs a connection. To connect to our target demographic, we must first understand them.

research & planning

research objectives & methods During a 5-month time span, Adteam11 implemented and conducted comprehensive yet succinct research to elucidate the way 25-34 year-olds perceive, distinguish and interact with the retail industry. The following research methods establish our conceptions of the transitional individual, allowing us to strategize our executions to maximize efficiency and congruency while maintaining awareness of our target’s values.

Research Objectives: Understand the JCP culture and where JCP stands among its competitors. Identify major cultural factors that affect the target. Discover the mindset, values, lifestyle, and behaviors of the target. Learn the target’s shopping behavior and the factors that influence it. Recognize the target’s perceptions of and attitudes about the JCP brand.

Research Strategies 1. Industry Research: Analyzed proprietary research reports and press releases to understand cultural factors that influence the target, industry trends, and competitor strategies.

2. Primary Holistic Research: Shadowed and interviewed shoppers for over 4 months to observe consumer shopping behaviors during normal and holiday periods and to pinpoint the reasoning behind consumer purchases and store preferences.

Visited 20 JCP stores and competitor stores on the East and West Coast to ascertain similarities and differences between store environments, sales and promotions, and customer service.

Interacted with JCP customer service and sales associates in-store and online to gauge JCP’s treatment of customers.

Infiltrated online communities via blogs, message boards, and chat room groups to discern perceptions of the department store industry and their brands.

Hosted a nationwide survey that garnered responses from 6,689 participants to examine our target’s personalities, shopping mentalities, lifestyles, values, and perceptions of JCP and other department and boutique stores. Examined profiles of our target on online dating sites such as eharmony. com and match.com to understand and categorize how women portray themselves through online social media.

3. Brand Awareness Research: Held in-depth focus groups (using selected participants that are well-represented in the target's age group) to ascertain brand affinity and awareness of JCP and competitors among 25-34 year-old females. Conducted content analyses of JCP and competitor social networking sites, such as Facebook, Twitter, and YouTube, to cohesively identify popular trends and preexisting notions of department store brand attitudes.

cultural climate What We Want, When We Want It Facebook has more than 500 million active users

Twitter logs an average of 55 million tweets daily -huffingtonpost.com 40% of time online in the U.S. is spent social networking, playing games, blogging, and emailing. -Nielsen Zynga, maker of social networking games Farmville and Cityville, raised $1 million to donate to tsunami relief in Japan within 36 hours. -Nielsen

Multi-Sensory Media

The Recovering Economy

1 million iPads were bought within the first 28 days on the market. -Steve Jobs

The economic crisis is causing many Americans to postpone some major life decisions, including having children, getting married, and getting a divorce. -FindLaw.com National Survey

In August 2010, approximately 65% of U.S. mobile devices featured touchscreen input. - Millenial Media In January 2011, users spent an average of 667 minutes using smartphone applications. -Wireless Intelligence

2/5

of all Americans describe themselves as "the kind of person who always looks for ways to save money." -Nielsen

Corporate Social Responsibility

U.S. households will have a 3D-TV by 2014. -IMS Research

BP's brand satisfaction score plummeted from 19.1 to -13.9 in the two months following the oil spill disaster, reflecting a negative perception of BPâ&#x20AC;&#x2122;s lacking corporate responsibility and honesty. -BrandIndex

The Organic Connection As of September 2010, more than 3,000 photos were uploaded and shared per minute to Flickr. -Flickr 91% of mobile phone users keep their phone within armâ&#x20AC;&#x2122;s reach 24/7. -Mary Meeker, Managing Director of Morgan Stanley

50% of American Internet users are expected to contribute to UGC. -Tech Crunchie

With 3.6 million users, texting is the most widely used data application on the planet. -Tomi T Ahonen, former Nokia Executive

As of December 2009,

Netflix has over 20 million members in the U.S. and Canada. Time spent viewing video online from home and work increased by 45% in one year. -Nielsen

of the most popular online video content was user-generated. -Flickr

Cultural Takeaway Enhanced social hyper-connected.

connections

through

technology

has

made

individuals

Entertainment is becoming an interactive and multi-sensory experience, with technologies such as touchscreens, 3DTV, augmented reality, and webcam-style gaming on the rise. Open access to multitudes of information creates an environment in which people want to know about others and want others to know about them. Consumers are engaging with social media and user-generated content now more than ever before. Technology has created a new breed of participatory consumers. Equipped with social media tools to publicly praise and criticize products and services, consumers now demand and expect companies to be transparent, authentic, and honest.

market landscape

Market Landscape Takeaway To differentiate from its competition, JCP must re-position its offerings and rebrand its image. Other department stores and specialty shops that tend to dictate who customers should aspire to be or how they should shop to achieve a better life leave JCP the opportunity to reach 25-34-year-old females in a new and profound way. Instead of selling a prepackaged identity and lifestyle, JCP can leverage its “down-to-earth” personality and strong online and mobile presence to build a genuine connection with customers, one that supports and celebrates rather than defines their individuality. By embodying the “friendly” tone of Walmart and adopting the style and quality standards of Macy’s through its new focus on fast fashion, JCP can demonstrate its unparalleled commitment to customer values and understanding of customer needs based on their own terms.

brand essence

BRAND PERSONALITY

BRAND EMOTIONS

Strengths: JCP is viewed as being down-to-earth and well-rounded. Threats: JCP lacks the boldness and reliability of Target and Macyâ&#x20AC;&#x2122;s.

Strengths: JCP exudes emotions of assuredness and satisfaction. Threats: Unlike Target, which is found to be comforting in nature, JCP is labeled as detached and boring.

target profile Personality

Mindset The Transitionals

Confident Self-Expressers

We define our target market of 25-34 year-old females as the â&#x20AC;&#x153;transitionals.â&#x20AC;? The transitionals are in a constant state of change, navigating through adulthood by traversing through pivotal life events such as higher education, engagement or marriage, young motherhood, new careers, and first-time homeownership. Frequently prompted to make important decisions, the transitionals alternate between feelings of accomplishment and feelings of insecurity. While in the prime years of their lives, the transitionals fear the 30-year-old milestone and beyond, which to them signifies less time and fewer opportunities to actualize their life goals and make their mark on the world. Despite their insecurities, the transitionals steer their own course with youthful energy and informed ambition, adopting multiple roles and acquiring their own belongings that fit their specific personalities, values, and lifestyles. Above all, the transitionals desire a sense of authenticity and self-worth, striving to be comfortable in their own skin, confident in their decisions, and to be taken seriously by others.

Pivotal Life Transitions

Unlike their younger counterparts who define themselves through brand identities, these women are more certain of their own identities and creatively assemble aspects of the material world to fit their own self-concept.

Budget-Conscious Decision-Makers These women are smart about their spending, prioritizing must-buys and scouting for the best deals. They will, however, indulge themselves if they consider the quality of a product, service, or experience worthwhile.

Ambitious Multi-Taskers This demographic is driven to succeed in all areas of their lives, including their families, careers, personal fitness, and health. Although they fear failure, they set high short-term and long-term goals, aiming only for the best.

Tech-Savvy Connectors To actively maintain relationships with close friends and family, these women embrace emerging social media in all of its forms. They are a part of the first generation to comprehensively use internet, mobile, television, and radio to stay up-to-date on current events and entertainment.

Perpetual Planners Nearing or surpassing the 30-year-old mark, these women feel the pressure to achieve and succeed while avoiding costly mistakes. Thus, they plan far ahead and evaluate multiple possibilities to ensure that they are making the best decisions.

Intimate Relationships

Motherhood

Home Ownership

The average age for a woman to get married for her first time is 26, and the average age for remarriage is 34.

The average age for females to have their first baby is 25.

The average age for a first-time home buyer is 34.

Approximately 54% of females aged 25-29 and 73% of females aged 30-34 have children. About half of these women have 1 or 2 children.

About 21% of the 40 million 2534 year-olds in the United States moved in 2009, which accounts for about 1/3 of all moves in nationwide.

Mothers aged 25-34 constituted 10% of the total female population aged 25 years or older in 2008.

In 2010, 39% of 25-34 year-olds were living with their parents while 43% were living in their own homes.

24% of women aged 25-34 are cohabiting, compared to 22% of women aged 35-39. For women aged 25-34, 49% are married college graduates, compared to 51% of married non-college graduates.

Higher Education

Early Career

In 2008, 46% of females 25-34 received a college-level education, compared to 37% of males 25-34.

In 2008, among women 2534, 74.5% were labor-force participants. - National Institute of Labor Relations

The most popular Masterâ&#x20AC;&#x2122;s Degrees for women are Business Administration, Education and Social Work. The most popular Doctorate / Professional Degrees for women are Law, Medicine (MD) and Pharmacy.

In recent years, women 25-34 have shown the biggest career growth of any group in the world. -Suzanne Coldfeather, close2love.com Women account for slightly less than half of all pharmacists in the U.S. and earn about 85% as much as their male colleagues.

target profile

Target Profile Takeaway Despite leading busy lives, Transitionals are able to stay one step ahead of the game with the help of technology. They know what they want and what they’re doing. It’s JCP’s job to support them.

JCP must establish an engaging, reliable, and accessible brand personality that invites rather than forces participation in order to meet our target’s expectations.

brand strategy & positioning With insights from the cultural climate, market landscape, brand essence, and target profile sections, we were able to build an effective brand position and strategy for JCPenney.

The Tone

The Big Idea

First and foremost, JCP must:

Develop an emotional connection that accurately portrays JCP’s philosophy and values. Establish a unique personality that is relatable to 25-34 year-old women.

In order to establish a stronger connection and personality, JCP will showcase its most relevant quality — its practical understanding of each woman’s individuality. JCP will show that it is both reliable and accessible to all women in our demographic by:

Consistently highlighting the importance of the individual consumer through ad executions. Maintaining an honest and dependable relationship with consumers based on their individual needs.

The How

The campaign will leverage JCP by connecting to the transitionals. JCP will display their understanding of the Transitionals’ pivotal life stages by: Giving them the quintessential retail options that they need to support them through times of both accomplishment and insecurity. Creating participatory spaces and opportunities for consumers to validate and solidify their identities as they progress through the stages of life.

creative strategy & executions

creative strategy

The Big Idea:

“You’re on your way.”

Concept:

The voice – JCPenney. The subject – You. Allowing JCPenney as a brand to participate in and supplement the demographic's very real and personal life transitions.

Look:

Real. Organic. Quick, unaltered glances into real people’s lives.

Tone:

Supportive. Reassuring. Heartfelt. JCP products are made for real people and the imperfect world they occupy. Their lives do not follow a predetermined or linear path, and each individual makes the ups and downs uniquely their own. JCPenney celebrates these distinct paths rather than imposing their own pre-packaged vision of who these women should be.

“You’re on your way,” is a positive maxim reflecting on the universal direction and motivation that the Transitionals embark on, no matter what their stage in life may be. JCP focuses on the core values of honesty, reliability and ease of service.

The goal is simple. JCP customers must realize that JCP cares about their individuality and uniqueness in the various roles they perform. While other retail competitors may focus on pushing a certain style or identity on their clientele, JCP embraces the unique variation within the target demographic in terms of style, aspirations, and personal needs. In times of stress and inadequacy, this uplifting affirmation will serve as a reminder of a woman’s innermost perception that she is on her way.

executions TV Spot: “One Dress” DELIVERABLES The progression of a single JCP dress throughout the many stages of a woman’s life. A heartwarming look at how the small things have such tremendous meaning in our lives. Shot from the first person perspective in short clips without words.

SUBSTANTIATION JCP will show that they understand the realistic role that clothes play in a woman’s lives, compared to other retailers who stress ever-changing fashion styles. Advocating for this standout message will tap into the budget-conscious mentality of our demographic while showcasing how timeless and versatile JCP pieces are.

PLACEMENT Official campaign launch date: 84th Annual Academy Awards. 30-second spots on: 84th Annual Academy Awards; network shows-The Bachelor, Dancing with the Stars, Modern Family, Desperate Housewives; cable shows- TLC’s Say Yes to the Dress, Lifetime’s Project Runway, and Bravo’s Real Housewives franchise; a video streaming ad for these programs on Hulu.com, Pandora.com, and the network websites.

online presence Web/TV: “You Made It”

Web: Youreonyourway.com

DELIVERABLES

“I’m on my way to the mountains...to a big interview...to parenthood.” JCP website visitors can use their own self-shot videos with a provided template to make a professionally produced video shareable anywhere online. A collection of the best clips will air in a commercial on New Year’s Eve with the added message: “You made it.”

JCP’s landing page will be transformed into an open-ended search tool where women can explore JCP’s offerings in a whole new way. Type anything: “cocktail party,” “black and gray,” “interview.” The results: cocktail dresses and hostess gifts, items tailored to that specific color combination, and outfits to impress an interviewer accompanied by a blog post for great interview tips. With this new organic search tool, JCP will offer the perfect outfit, gift, or advice for any occasion.

SUBSTANTIATION This UGC commercial is made for our customers by our customers and lets anyone and everyone become involved with the JCP “You’re On Your Way” campaign, fostering a connection with the brand.

PLACEMENT Call for video submissions on campaign site beginning on launch date. Airing on the last week of each month on 63,000+ digital out-of-home screens in 20 major cities. Locations of screens include restaurants, bars, health clubs, office buildings, gas stations, and taxi cabs. A final TV commercial broadcast during Dick Clark’s New Year’s Rockin’ Eve.

SUBSTANTIATION Sometimes people don’t know exactly what they’re searching for. JCP’s new search page will offer a distinct and innovative search option where not every result is a product to be bought. JCP wants to help their customers get exactly what they need.

PLACEMENT On JCPenney.com from beginning to end of campaign cycle.

online presence Partnership: Norah Jones

Web: “Making A Mend”

Facebook: Virtual Style

Facebook: My JCP

DELIVERABLES

Every woman has goals (what they are ultimately “on their way” to) and JCP wants to hear about them via personal videos or narratives on JCP.com. Shoppers will be able to browse these posts and vote on their favorites. Every three months the highest ranked post will be used by Norah Jones as inspiration for a new single.

Customers will create unique outfits online in JCP’s Virtual Outfit Creator that complement each week’s featured piece of clothing. The top 100 outfits will be displayed on the JCP Facebook page and shoppers will browse outfits to vote for their favorite by “liking” it. At the end of each week, the person whose outfit receives the most “likes” will be deemed a JCP Fashionista and will receive the entire outfit for free. Other customers will race to be one of the first 500 people to buy the complete winning outfit at a discounted price.

DELIVERABLES

Don’t throw away that coffee-stained shirt. Instead, pull up JCP M.D. on your laptop or web-enabled phone to find the right diagnosis for whatever is ailing your apparel. Learn how to sew a button, hem a pant leg, or even turn that old skirt into something completely new.

SUBSTANTIATION By encouraging customers to fix small problems and to find new uses for their clothes, JCP shows that they’re not about throwaway fashion. Having a retailer encourage customers to not always buy something new will show a stark difference between JCP and other companies and will show that JCP really understands the lives of their moneyconscious demographic.

PLACEMENT Videos will be uploaded to the JCP YouTube channel and displayed on the campaign site throughout the campaign cycle beginning from launch date.

SUBSTANTIATION The Norah Jones partnership ensures that customers feel recognized by JCP. The contest encourages consumer participation and interaction and boosts online traffic for our tech-savvy demographic, but above all radiates warmth and positivity.

PLACEMENT Call for submissions on campaign site beginning on launch date and lasting until the end of the campaign. Four singles will be released on iTunes.

SUBSTANTIATION Online shopping becomes fun and engaging when customers visualize and design outfits centered around a specific article of clothing. With enticing discounts, the many online shoppers in our demographic will check back throughout the week to see which JCP outfits are most popular.

PLACEMENT

In the My JCP game on Facebook, users will build and manage their own JCP store. Players stock their virtual departments from an up-to-date selection of JCP items. As game players successfully reach to higher levels, they will expand their store to include more departments and items. Aside from enjoying this social game on its own, our demographic will be excited to win a rewards coupon for every five levels played.

SUBSTANTIATION Women in our demographic age group are the most frequent social media game players, so sponsoring a Facebook game is an effective and engaging way to connect with them. Also, incorporating actual JCP items will showcase what’s on trend and encourage users to purchase them from JCP.

PLACEMENT Available on Facebook starting on launch date.

Available on JCPenney.com and Facebook starting from launch date.

online presence Web: As Seen on TV

DELIVERABLES

“Puppy Love,” a web series created by a former writer of “Sex and the City,” focuses on women struggling in relationships with men due to their relationships with their dogs. JCP will provide the entire wardrobe for the web series, including clothing, jewelry, and other accessories. The female characters (whom our demographic can relate to) will shop for outfits for their dates in a JCP store, each woman finding the perfect outfit for her specific taste.

This unique banner ad experience will utilize cache search history and cookies to target consumers based on past searches related to JCP merchandise. Multiple banners on a single page will depict models showcasing one particular item that the consumer has shown interest in, like a little black dress.

SUBSTANTIATION There is already an established audience that follows Amy Harris’ work. As she makes the transition from “Sex and the City,” which still remains an extremely popular series for our demographic, a great way to reach Ms. Harris’ established audience will be through product placement in “Puppy Love.”

PLACEMENT Two webisodes to be aired on Hulu.com in early November 2012.

Web: Banner Ads

SUBSTANTIATION An important part of building JCP’s brand image is connecting to tech-savvy women. This banner ad caters to each consumer’s unique preferences in a fresh, engaging style that says, “JCP is not about cookie-cutter fashion. JCP emphasizes beauty through individuality.”

PLACEMENT Placed on popular websites including Pandora, Amazon, YouTube, Perez Hilton, Pogo, Big Fish Games, and Monster from start to finish of campaign cycle.

Magazine Ad: “Adaptive Apparel” DELIVERABLES

DELIVERABLES

Today’s woman is capable of taking on diverse roles within a single day. This magazine and iPad-compatible advertisement illustrates JCP’s potential for accommodating the multiple roles that individual women juggle.

At first glance the woman in this print ad is wearing featured items (like the Worthington Lace Trim Cami and a.n.a. Destructed Straight Leg Jeans), but by flipping through the overlays for the tops and bottoms, women will be able to create up to sixteen outfit combinations.

SUBSTANTIATION Women work by day, socialize by night, and spend time at home in-between. JCP understands this and can assist these women in meeting these overlapping, yet distinct, daily roles. Our

Quick

Response

Code will accompy all print ads and direct viewers to youreonyourway.com.

Magazine Ad: “Flip Out”

PLACEMENT Monthly ads in entertainment, fashion, bridal, and parenting print and iPad magazines, including InStyle, People, People StyleWatch, Lucky Magazine, Elle, Brides, Fit Pregnancy, and Parenting.

SUBSTANTIATION Real fashion is fashion the way you would really wear it, not just the single permutation often offered in magazine ads. This fun, dynamic print ad will catch your eye and allow you to design an outfit “your way.”

PLACEMENT Seasonal inserts in fashion magazines including InStyle, People StyleWatch, Elle, and Lucky Magazine.

in-store experiences In-store: “Role Models”

In-store: “Collective Closet”

Mobile: Shopping Zone

DELIVERABLES

At select JCP stores, live mannequins will showcase new products and trends in a surprising and authentic way. Each window display will show real women in different roles and settings, such as a woman enjoying coffee with her friends or a professional woman on her way to work.

Clothing displayed in-store will be showcased as closets customized by featured designers, sponsored personalities, and winners of the different JCP online fashion contests. Closets will display JCP items along with personal touches from the curator such as framed photographs, favorite movie posters or paintings, fashion sketches, or other inspiration.

JCP will send deals to customers as they walk into stores by using ShopAlerts by PlaceCast to send SMS coupons to customers who opt into the system. No spam will be sent at any time, just coupons and deals.

SUBSTANTIATION Women will take notice of these live, eye-catching window displays. Store mannequins are stark and lifeless, so by showcasing real women wearing real JCP clothing, we will demonstrate that JCP itself suits the real, modern woman.

PLACEMENT Showcased in 20 JCP stores in the nation’s largest cities right before the launch date, Mother’s Day, Black Friday, and Christmas/Hanukkah.

SUBSTANTIATION Giving JCP customers a peek into the closet of a notable person will increase brand interest while emphasizing the campaign’s message of individuality and realism. The displays will take JCP’s interactive virtual forum to a more personal level, generating interest in preexisting online contests and the JCP blog and choosing famous personalities will also engage their fans within our target market.

PLACEMENT Different closet design displayed on rotating basis throughout the campaign cycle in JCP stores nationwide.

SUBSTANTIATION Though women don’t want to be out of the loop, they don’t want their attention grabbed at inconvenient times. By using the ShopAlerts system, JCP will interact directly with customers with information that is timely and relevant to where they are.

PLACEMENT Accessible by any phone capable of SMS messaging. Geofence GPS technology will be placed in JCP stores nationwide beginning from the launch date.

on the go App: QR Code Scanner

Billboard: “Traffic Trends”

Radio Spot: “Fine-Tuned” Sample Script

“Right now, you’re probably on your way to the Chargers game. I bet you already have your cooler, team jersey, and foam finger, but are you prepared for the after game? JCP’s got you covered for everything you need to recover from 3 hours of cheering, including luxurious Pacific Coast® pillows, Adidas sweatpants, and if you’re feeling a particularly intense post-win high, leather massage chairs. JCP is here for you after but for now, you’re on your way.” DELIVERABLES

DELIVERABLES

A mobile application designed for our on-the-go, “I check my email while in line at Starbucks” type of woman. This is a barcode scanner, wish-list generator, total price calculator, inventory checker, store directory, and outfit guru all in your pocket. We cut the hassle and complication of so many other apps and created an intuitive, natural, and easy-to-use tool.

Women today are always driving somewhere, and driving is boring. With a dynamic, car-sensitive billboard, drivers themselves will change the image on the billboard simply by passing an infrared sensor. The billboard features several women modeling JCP’s latest fashions. As cars speed past the sensors the corresponding lane’s clothing will change rapidly through several outfit options, creating a rhythmic and energetic ad.

A series of radio ads will target local audiences heading to big events in their area. Families driving to “the big game” will hear that JCP sells coolers, tail gate chairs, and team jerseys. Other people on their way to a big local marathon will hear about JCP’s workout clothes and running shoes. The spot would also describe a contest in which people will bring their event tickets to their local JCP to enter a drawing for a chance to win items mentioned in the radio spot.

SUBSTANTIATION JCP already has a well-developed and renowned app as well as in-store interactive kiosks, but they are missing key functions that much of our demographic wants. The JCP Pocket Kiosk includes everything they need and nothing they don’t.

SUBSTANTIATION Whether they are the lone driver going home late at night or one of many commuters passing during rush hour, each driver will individually impact the billboard’s image. In the outfits shown, JCP’s modern styles will be showcased in an exciting fashion.

PLACEMENT

Available for download on iPad, iPod Touch, and iPhone and Android smartphones starting from launch date.

Beginning on launch date, for every two months, a new brand will be featured on 2000 digital billboards in 35 major cities.

SUBSTANTIATION By acknowledging the specific events people may be on their way to, it creates an emotional connection to our demographic.

PLACEMENT Stations playing hits from the 80’s, 90’s, 2000’s, and today. Aired during peak traffic and after targeted local events. In addition to the contest, a series of radio ads will run that emphasize how clothing can play an important role in women’s recollections of fond memories.

events Event: “Accessible Apparel”

Event: “Along For the Ride”

Event: “Make a Run For It”

DELIVERABLES

The JCP On-The-Go Style Trucks will be tightly curated to include stylish and compatible accessories, shoes, and clothing that will help accent any outfit. These trucks will be parked in business districts, tourist zones, and shopping districts without a nearby JCP store. Women will also be able to follow each truck’s updates on Twitter to keep track of its next location.

Hailing a cab is always a hassle, but when the JCP fleet of taxis roam the streets, city-goers will be excited at the prospect of flagging down a free ride. On weekends and holidays in select cities, JCP Cabs will drive around looking for lucky patrons who will receive complimentary rides between clubs, bars, and restaurants, helping and surprising people “on their way.”

The JCP Women’s Half-Marathon will give women an opportunity to accomplish a self-empowering goal while raising money for the Women Helping Women charity. Free training sessions held for participants at JCP stores will bolster the participants’ physical capabilities and confidence. A banquet will be held the night before the marathon, complete with a dinner, speakers from the charity, and a raffle to promote JCP merchandise and our healthy-lifestyle sponsors.

SUBSTANTIATION These mobile stores offer a unique and convenient shopping experience for women, perfect for a quick shopping break. By only offering select merchandise, shopping becomes manageable, allowing for quick finds. Women can plan ahead to stop at a JCP On-The-Go Style Truck or can spontaneously stumble upon one and take a break from their busy day.

PLACEMENT In the month prior to the start of each season, 30 Style Trucks will travel through the nation’s largest cities, one per city.

SUBSTANTIATION Targeting a trendy city crowd, complimentary cab rides will demonstrate JCP’s desire to make nights out on the town, and life in general, easier and more enjoyable for women everywhere. Creating a city-wide hype, cab-goers will constantly be on the lookout for the next free ride, keeping JCP on everyone’s mind.

PLACEMENT For one weekend each month, 20 taxis will travel through the nation’s 30 largest cities.

SUBSTANTIATION Sponsoring a half-marathon will frame JCP as an altruistic company that inspires and strengthens women’s confidence. Training sessions will show participants that JCP wants them to develop skills needed to successfully complete the race. Completing a half marathon is a significant personal achievement that will leave participants feeling accomplished.

PLACEMENT Marathon will take place in Denver, CO. Registration begins March 2012 and the event will take place in September.

giveaways Giveaway: Ellen

DELIVERABLES JCP will host a month-long giveaway on Ellen, the popular 31-time Emmy-winning talk show. People across the country will nominate the most influential woman in their lives, and as the nominations are submitted Ellen will choose her Top 20. These selected women will all be flown to L.A. with a guest, provided with hotel accommodations, featured on the Ellen show, and given a complete JCP wardrobe along with $10,000.

SUBSTANTIATION The Ellen show has elevated itself to become one of the top daytime TV shows in the nation. This giveaway allows JCP to connect with its audience and reminds them that JCP sees customers as unique individuals with important ideas to share.

PLACEMENT 20 episodes of The Ellen DeGeneres Show to air in May.

Giveaway: “Bundle of Joy”

Giveaway: “Zip-Flip”

DELIVERABLES

JCP will donate Binky Bags to new mothers in maternity wards all across America on Mother’s Day. The JCP Binky Bags include plush blankets, clothing for their newborn, bibs, and colorful toys tucked into a convenient diaper bag, all of which are available at JCP. The kit will also contain the exclusive JCP zip-up hoodie and flip-flops package.

Slipping into a comfy, loose sweater and a pair of flip flops always feels great. JCP gets it. In our ZipFlip Giveaway, JCP will hand out those comfort items simply to make life that much more enjoyable. This perfect pair of JCP items will be given out during our Along for the Ride event, Bundle of Joy giveaway, and at our JCP Make a Run for It marathon.

SUBSTANTIATION

Even with nine months to plan, new mothers may still feel anxious about the new addition to their family. By giving out JCP Binky Bags, we will give new mothers a feeling of relief, helping them with their next big step into their new role as a mom.

We want women to know that JCP is here for them, whether inside the store or out. This giveaway directly reaches out to JCP customers and is also a great way to spread the word about JCP’s commitment to women everywhere. Giving out a sweater and flip-flops shows that JCP is devoted to keeping their customers comfortable.

PLACEMENT 2,500 bags will be donated to hospitals in each of the nation’s 20 largest cities on Mother’s Day.

partnerships TV Spot: “Put a Ring On It”

In-Store Partnerships

DELIVERABLES

To build JCP brand awareness and to further provide current JCP customers with the merchandise they love, the following strategically chosen merchandise partnerships will give customers fashion-forward, good quality products at the affordable price that JCP is known for.

PLACEMENT Launched individually on different holidays in JCP stores nationwide and JCPenney.com.

LULULEMON ATHLETICA

Promoting DELIVERABLES Youthful novelty rings and mood rings are replaced by class rings as she grows older, eventually showcasing a sophisticated Modern Bride engagement ring. Nostalgic and emotional, this spot acknowledges the importance of all the stages of a woman’s life and and promotes one particularly fundamental stage: her marriage. Shot from the first person perspective in short clips without words.

SUBSTANTIATION Research shows that 65% of brides give direct input for their engagement rings, revealing that women place great importance in selecting the rings that symbolize the love in their lives. Creating an emotional connection between potential brides and the Modern Bride collection is essential so that Modern Bride rings will shine on their fingers for years to come.

PLACEMENT Network shows-The Bachelor, Dancing with the Stars, Modern Family, Desperate Housewives; cable shows- TLC’s Say Yes to the Dress, Lifetime’s Project Runway, and Bravo’s Real Housewives franchise; a video streaming ad for these programs on Hulu.com and the network websites.

health and happiness, Lululemon will design affordable, highquality, yoga-inspired clothing and gear for JCP. To launch the partnership, JCPs across the country will host complimentary, in-store yoga lessons during the summer leading up to the JCP Women’s Half-Marathon in the fall. Women will enjoy the physical and emotional benefits of yoga that JCP help provide.

DAVID YURMAN

This partnership will provide shoppers with affordable jewelry from a high-end designer with classic American style. To further JCP’s already established Modern Bride concept, David Yurman engagement rings are an elegant but affordable option.

SUBSTANTIATION JCP cares about the health and happiness of the incredible, superheroesque women in this country. By partnering with Lululemon to give the gift of yoga, JCP hopes to recognize these women for all that they do.

PLACEMENT Lululemon activewear will be available in JCP stores nationwide and JCPenney. com beginning June 2012. Yoga sessions will also begin in June 2012 in 500 JCP locations across the country and continue on a bi-monthly basis for three months.

KATE SPADE

Kate Spade, known for its colorful, cheerful designs, will infuse JCP’s handbag collection with a fun and modern twist. A label many women admire will finally be a reasonable and affordable option.

CRATE&BARREL

Known for its upscale and contemporary style of home items, Crate & Barrel is the perfect home store collaboration for JCP, providing customers with affordable yet stylish home items to match their lifestyles.

partnerships Blog Partnerships MICHAEL KORS

To connect with our tech-savy demographic, JCP will partner with various bloggers and tap into the immense popularity of blogs. These bloggers have been selected to represent the values and lifestyles that are important to our demographic.

GOOP

Michael

Kors is synonymous with classic, clean style. JCP’s collaboration with Michael Kors will give customers the option to purchase timeless Michael Kors pieces at an incredible price.

TORY BURCH

CORPORETTE

JCP will partner with writer Kat Griffin from Corporette.com to reach out to hardworking professionals in our demographic. This partnership will engage our demographic through blogs, vlogs, and in-store workshops, using outfits and accessories from the JCP catalog to promote JCP’s professional apparel.

KANDEE JOHNSON Gwenyth Paltrow’s blog, GOOP, embodies important aspects of a well-rounded woman’s lifestyle. A new section on GOOP called JCP’s Savvy Spender will promote a variety of JCP items, while Gwyneth’s Picks on the JCP website will feature products chosen by Ms. Paltrow.

PIONEER WOMAN

Kandee Johnson, a mother of four whom our demographic can relate to and trust, uses YouTube to showcase her expertise about hair, makeup, and fashion. Kandee will create a set of five videos for JCP with accompanying blog posts to showcase JCP’s variety of fashion-forward products and services.

MONEY SAVING MOM

JCP will partner up with Tory Burch to create her first ever bedding line to be sold exclusively through JCP. Her fresh prints will attract young members of our demographic who are looking for a more contemporary style.

On her blog, thepioneerwoman.com, Ree Drummond chronicles her life as a rancher’s wife and mother of four. With sections dedicated to everything from home decorating to cooking, she keeps readers amused with her unique perspective. JCP will sponsor product reviews and giveaways related to each section.

Our partnership with deal-finding connoisseur Crystal Paine of MoneySavingMom.com will include a JCP Deals of the Day tab on her website to feature JCP items’ great price and quality. To engage budget-conscious shoppers, a “share” button will be available for women so they can suggest items to friends in their social networks.

media plan

media objectives and strategies

Target

Reach/ Frequency

Geography

Timing

Creative

Objective:

Turn JCP into a lovemark and premier shopping destination among 25-34-year-old females.

Reach 75% of the target audience with the effective frequency of 7.

Establish brand contact with target markets that are likely to have access to JCP.

Strategy:

Utilize various schedules to strategically launch and propagate executions through the campaign cycle across multiple media platforms.

Use a diverse set of traditional and emerging media to achieve the optimal reach-to-frequency ratio among our highly segmented target audience. Select media vehicles that correspond highly with the target’s media consumption habits.

Utilize a combination of national and local media to capture both broad and niche markets. Dedicate extra communicative efforts to metropolitan areas where the target is especially concentrated and JCP is a highly-considered and accessible retail choice.

Provide the best situational context and frame of mind for our target to understand the creative message, which illustrates JCP’s unique narrative and distinctive value over competitors.

Strategy: Create and deepen the cognitive-emotional connection between the target and JCP at all customer touch points. Enhance existing and generate new points of contact that highlight JCP as the solution to the target’s particular wants and needs.

Strategy: Continue JCP’s tradition of launching creative during the 84th Annual Academy Awards-the “Women’s Superbowl”. Take advantage of spikes in target spending behavior during holiday and shopping seasons through flighting and pulsing schedules while maintaining a stable brand presence through continuous and blinkering schedules. Consider target’s lives as opportunities to establish brand relevancy.

Strategy: Utilize specific media alternatives that reflect the mobile and transitional core of the “You’re on your way” campaign.

campaign calendar & budget

February 19 26

March 11 18

April 15

May 20

June 17

July 15

August 12 19

September 9 16 23

October 14 21

November 11 18 25

December 9 16 23

January 13 20

Traditional 30-Sec TV Spot Radio Ad Radio Contest Magazine Ad Magazine Insert Online Site enhancements JCP MD My JCP Virtual Outfit Creator Paid search Banner ads Video streaming Puppy Love product integration Blog partnerships Moneysavingmom.com KandeeJ.com PioneerWoman.com Corporette.com Goop.com Music Partnership Norah Jones Mobile Pocket Kiosk Step Into Savings Digital OOH Billboard Screens Events Live Mannequins Free Taxi JCP On-The-Go Style Truck Yoga JCP Women's Half Marathon Giveaways Ellen Degeneres TV Show Binky Bag Partnerships Michael Kors Kate Spade David Yurman Lululemon Crate & Barrel Tory Burch Instore Instore Closet

February 10 17

Impressions Cost Production Costs /000,000 /000,000 /000 934 1728.94342 39.893027 750 22.7734 1,458.43 9 2.975 139.197876 100 0.06 4.73332 25 117.23222 12.618354 50 9.35 1.466273 444.57 30.4688 766.376 145.2 0 750 0.25 0 50 35 300 0 266.376 22.1 0 0 70.6 15 150 38.42 5.6988 0 130 9.75 0 3 0.02 0 90.265258 1.37 0 42 0.18 0 0.08786 0.005 0 43 0.095 0 4.246 0.09 0 0.931398 1 0 25.83 75 0 25.83 75 3.9 2.05 210.8 0 1.05 100 3.9 1 110.8 270544.38 2.4266855 700 0.91 269,100 600 1,444.38 1.5166855 100 0 12.177 12415 0 3.6 1720 0 0.012 1350 0 8.4 6400 0.15 0 650 0.015 0 2295 65.1 0 2823.5 65 0 323.5 0.1 0 2500

122.07 122.07 Total Impressions

Campaign Evaluation & Success $9,150

Commission $2,000,000

Contingency $2,007,661

Total Production Cost $17,924,676

Total Cost $78,058,513 Grand Total $100,000,000

$100,000,000

0 0

332.4 332.4 273,035,386,000

media rationale TV + Online Video Streaming

Keywords Search

Commercial ads will air during both traditional programming, allowing for high impact and reach to broad audiences, as well as online video streaming, enabling viewers to decide when and where to watch. While commercial ads raise brand awareness and interest, product integration in the webisode series will emphasize JCP’s fashionforward products in an organic and realistic story line.

Google, Yahoo, and Bing are the top three search engines in the nation. Our techsavvy Transitionals utilize search in their everyday web habits. Therefore, advertising through these search engines will help position JCP as a relevant solution in their search for apparel or home goods.

Digital OOH Digital out-of-home advertisements will penetrate areas where our demographic consistently spends their time. This includes restaurants, bars and lounges, office buildings, health clubs, gas stations, major freeways, taxi cabs, and hotel lobbies. One benefit of digital advertising is that each ad can be tailored to the time of day, place, or occasion.

Magazine + iPad We placed our print ads in specific magazines that are popular for women in our age group. These magazines highlight parenting and affordable fashion, which tie into our campaign’s down-to-earth tone. Monthly ads will aid in increasing overall brand awareness, while seasonal inserts will aim to increase sales for spring and fall fashion lines.

Radio Our demographic is comprised of heavy listeners of radio, and this medium allows us to reach a large audience, whether they are on their way to work, daycare, or the gym. The most popular stations stations among females 25-34 were chosen, and our ads will broadcast during the times these women are most likely to be driving.

Mobile Because more and more women in our demographic are using smart phones, our mobile app will provide convenient functionality to aid in the JCP shopping experience. We will still ensure the largest reach possible by incorporating an SMS text messaging program to drive in-store traffic by offering exclusive mobile promotions.

Website enhancements Because of the important role of search in today’s world, the JCP splash page will be an easy-to-navigate feature for our tech-savvy Transitionals. With the popularity of sharing content on blogs and social media sites, the participatory nature of the campaign microsite will be embraced by our demographic.

Social Media The Transitionals have a high rate of engagement with social media. Because of JCP’s extensive group of followers across social media platforms, all executions are complemented by social media components, which serve as an effective way to keep these women engaged and interested in JCP.

Web Banner Ads Our tech-savvy demographic spends a significant amount of time on the internet. These banner ads, carefully placed on websites that Transitionals enjoy, will integrate JCP with their current interests.

Special Events Live events communicate to costumers that JCP is an uplifting, exciting, and personable brand. These unexpected, new ideas will foster attention and press while showcasing JCP’s concern for their customers’ well-being.

Live Stunts These stunts grab attention, while simultaneously stimulating interest and generating buzz about JCP, which helps to establish JCP as a modern, of-the-moment brand. Scheduled around major shopping periods, these stunts aim to increase traffic into JCP stores.

Mobile Boutique + Taxis These events provide face to-face interaction between brand ambassadors and our target audience in a unique setting. Furthermore, these events bring an element of novelty, surprise, and added convenience for the target, which helps demonstrate that JCP has their best interests at heart.

In-store Displays The in-store closet display adds a personal touch to the in-store JCP shopping experience. They provide a means for popular designers and personalities to engage with the target, while also encouraging participation through showcasing the styles of contest winners.

Rewards + Giveaways Giveaways associate JCP with positive feelings of generosity and create an emotional connection with the consumer. By rewarding women who are embarking on new chapters in their lives, JCP demonstrates that it is in touch with the different life stages that they are experiencing.

measurements of success & evaluations Campaign Metrics We will evaluate our campaign based on the opening of new online accounts. Based on our research and optimizations, we expect that for every $30 we spend on paid media, one new account will be opened. Throughout the year we will continue to optimize our campaign based on the following metrics, and we will pull or add in media accordingly to maintain our goal.

$30 per Online Account Open $78,058,513 / 30 = 2,601,950 new online signups in the first year alone. On average, they will spend $100 in one year at JC penneys: 2,601,950 x 100 = $260,195,000 in gross revenue.

Continuous Maintenance

Periodic Maintenance

Estimated Cost

Quantitative:

1. Survey:

Search volume of related JCP keywords

Online survey featured on JCP’s main site, as well as a link placed on JCP’s Facebook page

Reach for 5,000 samples and give out 500 rewards $5 each 500 x $5= $2,500

Qualitative:

2. Keyword Research

Secret shoppers will account for the success of the in-store experience.

Use WordTracker (http://www.wordtracker.com), for which a subscription costs approximately $250 per year.

JCP will be able to check for the successful implementation of the in-store experience.

3. Secret Shoppers

Internet Cookies to identify web users & frequency of visit Conversion rate of consumers due to search While customers remain loyal, JCP struggles to keep up with the competition in attracting new customers. Therefore, by observing the rate of those who are new to the brand and purchase an item, JCP can see how the brand successfully appeals to a broader audience.

Qualitative: Social Intensity: represents the rate at which social actions occur, such as rating, sharing, blogging, recommending, commenting, etc. In addition to click-through rates, we will use view-through rates to measure how well our campaign is achieving positive branding through paid media. Media Coverage: Television, Radio, Online Mediums Feedback from social media, such as Facebook and Twitter

To assess brand image, we will test for brand recognition and perceived values. JCP will be able to check how the brand has evolved and see if the targets’ perception of the brand is in line with the image JCP is trying to project.

Top 100 JCP stores (based on sales) nationwide; JCP sends 2 people to the store quarterly and they act as secret shoppers and report how customers shop at JCP for 4 hours each. 100 stores x 2 secret shoppers x 4 times/year x 4 hours x $15/ hour rate= $6,400

Estimated Evaluation Total $9,150

conclusion

Consumers today are savvier, more demanding, and have more options and choices than ever before. While technology has enabled them to pick and choose from millions of options with the touch of a finger, navigating through the clutter can be hectic for them. The transitional woman is constantly on the go, in more ways than one, and to win her respect and engagement, a company must develop a unique and genuine connection with her. The brand that sparks the most honest conversation and provides the most helpful customer experience, both in-store and online, will be the one she champions. The company that builds the best connection, the most effective and honest relationship with each and every one of its unique customers, will become the leader of its industry.

In order to retain loyalty and to establish a connection with new the consumer, JCPenney must be transparent, honest, reliable, and understanding. JCPenney must prove that they care about their customers, utilizing their feedback in a proactive way and reaching them on their own terms. Our campaign proves that JCPenney understands the lifestyle of transition and progression, of accomplishment and passing doubt. “You’re on your way” highlights JCPenney as the modern woman’s place to shop for all of her life transitions, hassle-free, while consistently delivering style, quality, and affordability. It’s a relationship that leaves you feeling content, confident in the purchases you’ve made, and ready to tackle the rest of your day.

JCPenney. You’re on your way.

credits Managing Directors Account Directors Raquel Castro Sam Milechman Nicole Shamtoob

Special Thanks to

Strategic & Media Planning

Jane Bitar Lily Berticevich, Editor Tianna Cisowski Jennifer Greynald Eloisa Julio, Strategic Planning Director Esther Kim Andrea Liao, Media Planning Director, Content Manager Cathleen Miclat Jennifer Noonan, Media Planning Director, Media Budget Manager Yina Qiao, Media Planning Director Jenny Ta, Strategic Planning Director Sami Vega

Creative Kristin Bisely Mesa Dobek Journey Kan, Visuals Manager Aki Kondo Jacob Masga Shanley McDonald, Creative Director, Content Manager Michael J. Morillo, Copy Manager Jason Owyang Ali Saldinger, Editor Eva Slusser Christine Takaichi, Creative Director Shawn Tharayil

Design Fredo Chen, Design Director Gage Nguyen, Layout Manager Nate Villegas, Second Layout Manager Rosalie Yu

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