table of contents Executive Summary
2
Objectives
3
The Situation
4
Research
5
Target Market
7
Barriers
9
Competitive Analysis
10
Big Idea
11
Advertising
12
Partnerships & Outreach
16
Special Events
17
Sales Promotions
19
Digital
21
Retail & Merchandising
24
Media & Budget
26
Evaluation
29
Conclusion
30
Sources & Acknowledgements
31
table of contents
executive summary Since its beginning in 1902 when it was known as the Golden Rule, JCPenney has been a leader in the retail world. Time and time again, the store has demonstrated its ability to adjust to the ever-changing market. However, recent years have yielded a disconnect between JCPenney and younger generations. Therefore, JCPenney challenged Adhesive to create a fully-integrated campaign that acquires new customers, retains current customers and increases both shopping frequency and share of wallet. Our team analyzed recent sales of JCPenney and its competitors and established measurable goals. Using primary and secondary research, we determined which communication methods are most effective for reaching the target. From there, we set out to create a strategic campaign that combined advertising, partnerships, public relations, special events, sales promotions, digital tactics and retail and merchandising to create lasting relationships with the target. In order to get its message to the target, JCPenney must overcome key perception barriers: inconsistent in-store experiences, ineffective advertising and a brand image to which the target cannot relate. Adhesive has worked tirelessly to develop a campaign that meets JCPenney’s challenge while following the motto, “creating ideas that stick.” And how do ideas stick in a world moving a million miles a minute? By being twisted, pulled, stretched and pushed to their limits. Adhesive has put together a unique and engaging campaign that promotes active participation with JCPenney while staying true to the brand’s core values. Our message will attract new and retain current female shoppers without alienating customers outside the target. Turn the page to see what’s in store!
executive summary
2
OBJECTIVES
This campaign will position JCPENNEY to become a MARKET LEADER by implementing a MULTIFACETED CAMPAIGN which establishes a UNIFIED BRAND IMAGE and acquires fashion-conscious female shoppers 25-34 years old who seek competitive prices, strong emotional connections and a consistent shopping experience. We will increase the target’s share of wallet by 11.3%, net sales by 88% and Rewards members by 100%. Our engaging tactics come from a strong strategy and will ultimately BUILD LIFELONG RELATIONSHIPS between the target and JCPenney. MEASUREMENT SYNOPSIS Our campaign will increase total market share by .5%, bringing total net sales to $20.5 billion, an increase of 13.4%. Net sales for the target will increase by $2.75 billion or 88%. This will make the target’s total spending $5.89 billion and increase the target’s share of wallet by 11.3%. We will acquire one million new customers with at least 500,000 signing up as Rewards members, increasing the target’s Reward membership by 100%. The campaign will increase shopping frequency of the target. Rewards members will shop an average of 1.2 more times per year, totaling 6.4 million trips per year and $1.65 billion in sales, while non-Rewards members will shop an average of one more time per year, adding up to 4.3 million trips per year and $4.36 billion in sales.
3
OBJECTIVES
the situation
The world supplies her with seemingly endless options of places to shop. Keeping up with the latest trends is important to her, but she knows the value of a dollar and shops where hers can go farthest. Women with buying power have remained the primary target for retail stores. In a highly saturated market, retailers strive to create relationships with these women. Retailers will find success only after evaluating where they have been, understanding where they are and defining where they want to be.
STRENGTHS
WEAKNESSES
Strong social media presence
Perceived as old fashioned
Number one customer service among department store retailers for 3 years in a row
Store aesthetics and layouts are not consistent from store to store
Powerful cause marketing
Brand inconsistency
Quality of services (salon, portrait, optical, gift registry)
Advertising does not stand out against the competition
Partnerships with exclusive brands
Too many discounts cheapen merchandise and brand Inconsistent pricing from store to store
OPPORTUNITIES Create a more attractive and consistent store environment Expand current Rewards program Evolve mobile marketing and website Create awareness about designer brands Develop strategic partnerships Highlight JCPenney services
THREATS Intense competition due to overlapping markets, price wars and alternate store models Saturated market causes brand confusion Recession negatively affected consumer spending Females 25-34 are more attracted to specialty stores than department stores
Improve employee satisfaction Meet demand for home goods created by stabilized housing market
situation
4
research objectives Understand her attitude toward JCPenney Find opportunities to connect her with JCPenney Discover what media influences her Understand her shopping habits
Primary research
130 interactive surveys 55 intercept interviews 24 in-depth personal interviews Hundreds of field observations Multiple focus groups
SECONDARY RESEARCH Studied websites that Facebook, Blogger)
influence
the
target
(Amazon,
Reviewed articles, databases, scholarly journals and books on department stores and target demographics (MRI+, Nielson Company, Lexis Nexis, RAMA All About Moms) Monitored online discussions (Facebook, Twitter) Studied competitors’ websites (Target, Macy’s, Kohl’s) Analyzed past campaigns from JCPenney and competition (Everyday Matters, It’s All Inside, The More You Know, The More You Kohl’s, The Magic of Macy’s) Tracked JCPenney in news and current events (Marketing Charts, Market Watch, Business Week, Money, US News)
Within our focus group testing, we utilized projective techniques including “Dear John” letters, which put the target’s true feelings about JCPenney on paper.
5
research
Primary Research Reach
key findings marketing to females 25-34 She wants more than just merchandise; she wants a relationship with the store
lifestyle and behaviors She browses online before purchasing She reads reviews online before purchasing
She wants to be a part of the brand’s identity She prefers to buy in-store She looks to others before making decisions She’s an avid user of social networks She is tech savvy and spends a lot of time digitally connected Moms want to be spoken to as women, not just as “moms”
Style, quality, price and convenience are the most important factors in store selection Women without children are more likely to shop at specialty stores Moms are more likely to shop at department stores Many new moms blog about their experiences
research
6
target market
THE MOM
Julie values her family above all things.
A wife and mother of three children ages 2-6, Julie is constantly on the move and never gets a day off.
She checks prices and reviews online before visiting a store.
She cherishes those peaceful times when she can go shopping alone because when her children are with her it's a whole different story.
She always wants to get a good deal but ultimately values quality.
7
target market
THE HOMEOWNER
Claire is a recently engaged homeowner who loves the challenge of decorating her space.
THE HOMEOWNER
Claire is a recently engaged homeowner who loves the challenge of decorating her space. Time is important to her, so she'll shop online before making a trip to the store.
Time is important to her, so she'll shop online before making a trip to the store. Much of her spending is on home goods and things for herself.
Much of her spending is on home goods and things for herself. Buying her house taught her the value of a dollar, so she’s become a savvy consumer.
Buying her house taught her the value of a dollar, so she’s become a savvy consumer. Claire is a high school English teacher planning her wedding so she lives on a budget. Claire is a high school English teacher planning her wedding so she lives on a budget.
THE SINGLE
Paige is a young single who is ready for anything.
THE SINGLE
She knows she should invest her money and buy a house but for now, is heradowntown loft suits her is lifestyle Paige young single who readyperfectly. for anything. She knows she should invest her money and buy a house but for now, her downtown loft suits her lifestyle perfectly. She works hard but plays harder. She is a veteran of the nightlife scene but is ultimately looking for someone to settle down with.
She works hard but plays harder. She is a veteran of the nightlife scene but is ultimately looking for someone to settle down with. She is finishing her master’s degree and reveling in her newfound, yet cash-strapped independence.
She is finishing her master’s degree and reveling in her newfound, yet cash-strapped independence. She loves the excitement and thrill of the hunt for a good deal.
She loves the excitement and thrill of the She believes shopping should be fun and social and values hunt for a good deal. style and the in-store experience above all else.
She believes shopping should be fun and social and values style and the in-store experience above all else.
target market
8
barriers
“
We conducted multiple focus groups that yielded key insights about JCPenney’s relationship with the target and their perceptions of the brand.
Layout
Appearance
IN-STORE EXPERIENCE
ADVERTISING
Associates
Misleading
“Every time I find something cute in JCPenney’s ads, it’s never in the store.”
Message
“Right now JCPenney is just
Recall
Inconsistent
9
barriers
“JCPenney’s atmosphere is uninviting.” “The staff’s style is outdated.”
Disconnect
BRAND PERCEPTION
“I find the clothing sections confusing. Is JCPenney for me, my mom, my grandmother or my teenage step-daughter?”
Unappealing
predictable and boring.” “Red and 80% off? Or was that Macy’s?”
“JCPenney is a store for my mom or grandma.” “JCPenney doesn’t hold my interest, intrigue or excite me.” “I don’t believe JCPenney fits my taste or lifestyle.”
competitive analysis Our interactive surveys revealed the target’s shopping habits and attitudes towards retailers’ advertising.
HOW STORES? HowOFTEN often DO doYOU youSHOP shopAT atTHE theFOLLOWING following stores?
17.4%
14.7%
37.7%
25.4%
16.4%
26.5%
20.3%
10.4%
19.4%
18.8%
8.6%
14.7%
10.1%
2.9% 1.6%
1.5%
1.5%
0.0% 0.0%
more than once a week
3.0%
0.0%
once a week
18.8%
14.5%
10.1%
13.4%
4.3%
4.7%
11.8%
1.6%
every 2-3 months
18.8% 18.8%
13.4% 14.9%
7.2%
every 4-6 months
5.9%
1-2 times a year
27.5% 23.9%
14.1% 13.4%
7.2%
16.4%
1-2 times a month
40.6%
19.4%
11.8% 7.5%
2.9%
2.9%
less than once a year
0.0%
never
JCPenney Macy’s Kohl’s Sears Target Wal-Mart The following stores advertising messages are meaningful to me. 20.6% 35.3% 43.9% THE FOLLOWING STORES’ ADVERTISING MESSAGES ARE IMPORTANT TO21.2% ME.
JCPenney
4.5% 6.1% Macy’s
10.6%
Kohl’s
25.8%
Sears
19.7%
20.6% Target
13.6% 4.5%
6.1% 4.5%
Wal-Mart 14%
25.8%
13.6%
6.1%
35.3%
20%
6.1%
19.7% 39.4% 19.7%
39.4% 39.4%
22.7% 21.2%
21.2%
21.2% 34.8%
19.7%
19.7%
19.7%
16.7% 16.7%
9.1%
19.7% 19.7% 13.6%
4.5%
43.9%
34.8%
30.3% 26.5%
10.6%
39.4%
22.7% 10.3%
21.2%
9.1%
16.7%
7.4%
21.2%
27%
10%
7.4%
30%
20%
16.7%
“I really like New York & Co. clothes. I shop there the most.” -engaged “My favorite stores are Target, Marshals, and The Limited. Target has everything. Marshals has name brands for less. The Limited has fashionable, quality clothing.” -single “I like Anthropology because I seek unique thiings, which can be difficult to find.” -married “Value is the most important quality in a store. A store’s atmosphere has a lot to do with this. I prefer stores like Banana Republic, J. Crew, and Loft.” -married with children
competitive analysis
10
the big idea You Just Know Women’s Intuition. She has been honing hers for years and now she’s tuned in. She’s tried the fads, experimented with trends but she’s not a teenager anymore. She knows what works for her. It’s not calculated; it’s not logical, somehow she just knows what she wants. It’s that feeling she gets in her stomach when she sees a pillow that would work perfectly with her living room couch or that rush she experiences when she tries on the dress she had a feeling she would love. It’s charming and mysterious but all the while so reliable. “You Just Know” is a natural extension of “New Look. New Day. Who Knew!” Who knew? She did. The new campaign answers JCPenney’s previously posed question with a confident tone that gives her credit for following her intuition.
Creative Vision The visual approach of “You Just Know” incorporates shape, color and copy to define intuition’s role in the lives of JCPenney customers. The headlines and copy are in boxes similar to the JCP logo, giving the advertisements identity. The bold colors draw attention to the uniqueness of each product. Using one product per advertisement embodies the new life we are giving to JCPenney. It’s classic and clean and allows her intuition to take the lead. We do not use any lifestyle visuals because we want to focus on the quality of JCPenney’s products, not dictate who should buy them. Close-up shots highlight the quality of the merchandise, a characteristic upon which the store prides itself. To illustrate intuition’s intangibility and romanticism, patterns will radiate off the products and reflect the texture, color and design of each item. We call these “Swimples.” A combination of “swirly” and “simple,” Swimples bring products to life just as women’s intuition does. They are unique to each item and act almost as auras around the products, drawing her in. The headlines in the advertisements have a charming disconnect from the images. This contradictory approach takes effect when the target’s intuition tells them what they see is a pillow or a boot, but the headline labels it something completely different. The use of textual and visual contradictions will impel the audience to read the copy, which tells stories of how different women will use their intuition to make the products more than just products but integral parts of their lives. The “You Just Know” campaign uses the new square logo to symbolize JCPenney’s reintroduction to the target in a modern, simple and intuitive form. JCPenney is constantly evolving and the new logo is the next step in the process. Our campaign will familiarize the target with the updated version of the trusted JCPenney name. It is our unique visual approach that will make JCPenney stand out from the competition, get women in the store and keep them coming back for life.
11
the big idea
ADVERTISING
She knows how to stay in the loop
WINE
CONNOISSEUR’S
SECRET This is the accent piece she will use to cover up the Pinot Noir stain on her first couch in her very first home. It's the comfy accessory she will spot a mile away for its perfect shade of coral, the same shade as the heirloom lamp passed down to her from her grandmother, the one who taught her to love Pinot Noir. It's not a pillow. It's her little secret. Continue your style story at jcp.com
Cindy Crawford
You Just Know
From her curtains to her haircut, intuition guides her every decision. JCPenney provides her with the merchandise variety she wants and the personal services she needs to follow those instincts. With supreme quality products at competitive prices, only JCPenney lets that ever-evolving, all-encompassing intuition come alive.
advertising
12
print ads Magazines are her constant companion. She reads them on the elliptical while working out and throws them in her beach bag for a day at the pool. She’ll notice JCPenney’s new “You Just Know” ads while catching up on her favorite tips, gossip and trends. And now the smart phone that keeps her life in order will also help her find the best JCPenney deals. When captured by her smartphone, Microsoft Tags located on the bottom left corner of every magazine advertisement will instantly route her to the product’s profile page on the website for instant and easy purchase. The FindMore kiosks will be Microsoft Tag-enabled.
ACCOMPLICE TO
SEDUCTION
THE
CUSHY INHERITANCE
This is the daring date night staple that will hug her curves better than her boyfriend can. It's the oh-so-flattering accoutrement complete with a built in weapon that will make concealing her love affair with glazed donuts a cinch. It's the ensemble she'll assemble when she wants to stop him dead in his tracks. It's not a dress. It's her partner in crime. Continue your style story at jcp.com
This is the purchase that will make her realize the apple doesn’t fall far from the tree. It’s the piece with a sneaky resemblance to the furniture in the house where she grew up. It’s where she’ll write her thank you notes, just like her mother taught her, in very familiar handwriting. It’s not a chair. It’s proof taste is hereditary.
THE
Continue your style story at jcp.com
TRAVEL
MNG by Mango
BUG
You Just Know
This is the accessory that will inspire her to journey outside her comfort zone. It's what will spark her curiosity for something new. With this, she'll light the pilot of her desire to see the world, to really experience it. When her hunger for life takes her overseas, it will be the one thing that stays consistent as she tries on a myriad of new identities. It's not a scarf. It's a portal to new adventures. Continue your style story at jcp.com
Chris Madden
You Just Know
MNG by Mango
You Just Know
13
advertising
TELEVISION
DRESS AND FLOWERS FROM BOYFRIEND
SHOES AND SALSA LESSONS FLYER
BELT AND NAPKIN WITH SPRINKLES, CHOCOLATE SMUDGES
EARRINGS AND CARD FROM PARENTS, VOICE MESSAGE FROM MOM PLAYING
NECKLACE AND 20’S HEADBAND
JCPENNEY BAG ON BED
Never underestimate her love for the latest season of American Idol. Whether she’s enjoying her hard-earned leisure time, getting ready for work or making dinner, the TV is always on. That’s why we’re bringing “You Just Know” to life in 30-second spots during her favorite shows. No matter if she’s tuned into network TV, cable or an online streaming site, she will discover she can follow her intuition at JCPenney. Our spot, “Her Bedroom,” features JCPenney products in a real environment, a woman’s bedroom. Copy explains what roles the items play in her life as Swimples animate them. Personal touches such as flowers from her boyfriend show her personality.
billboard & transit She spends a great deal of time outside her home, be it commuting to work, picking up her child from a play date or checking off errands on her to-do list. JCPenney billboards and transit advertisements will provide frequent message exposure and alert her intuition of JCPenney’s new relatable brand image. Microsoft Tags will be placed on transit ads, promoting further interaction with the brand.
at jcp.com r style story u o y e u n ti Con
advertising
14
direct mail Through direct mail we will increase her awareness of two key JCPenney services and partnerships that make her feel ultra-feminine: Modern Bride and Sephora.
modern bride Modern Bride rings sticky notes: A sheet with 16 different ring designs lets her choose her favorites and place them in key locations where her boyfriend will see them. Ring sizing chart: She places one of her own rings on top of the circle that’s the same size. She can then “accidentally” leave it where he will find it. Because sometimes his intuition needs a little push. JCPenney’s interactive direct mailers will motivate store visits among the 1,277,000 adults ages 25-34 who purchase engagement rings each year.
sephora A free sample of Guerlain eyeshadow will motivate her to open this visually stimulating direct mail piece.
As a Sephora Beauty Insider, you’ll love the deluxe samples, free products and exclusive birthday gifts you receive. But why stop there when there’s so much more? Join the ranks of the beauty elite by becoming a VIB, a Very Important Beauty Insider. Rack up 350 beauty-full points and you’re in, baby. Sample Guerlain Eyeshadow
LIVE THE BEAUTIFUL LIFE V.I.B.s receive: *10% welcome offer
*early access to not-yet-launched products
*exclusive gifts throughout the year *invitations to special events *and more!
15
advertising
PARTNERSHIPS & OUTREACH SHe KNOWS SHE CAN MAKE A CHANGE Weight loss is the number one New Year’s resolution women make. With our campaign launching in February, the time when she might start feeling like she needs a little guidance, a partnership with Weight Watchers will provide her with the support she desires. Weight
Watchers meeting centers will be installed in JCPenney stores to accommodate customers’ weekly and monthly weigh-ins. Women 25-34 years old make up the largest age group of Weight Watchers members, making this partnership a great move for JCPenney.
Jennifer Hudson American Idol fan favorite, Grammy and Oscar winner and champion of weight loss, Jennifer Hudson, will be JCPenney’s new spokesperson. Recently, her partnership with Weight Watchers has made her an inspiration to millions of women. The target not only sees her as trendy and talented but as a viable representative of healthy living. Partnership Perks: Hudson’s CDs will be available one week early in JCPenney stores CD signings at JCPenney’s Manhattan flagship store and select high-volume stores Weekly JCPenney Twitter updates from Hudson about fashion, healthy living, her favorite JCPenney brands, her current projects and more A nationwide, JCPenney-sponsored summer tour will promote the brand through signage and vending, as well as through the JCPenney styles Hudson will wear during the tour Each time a Rewards member makes a purchase in February, she will be entered in a drawing to win a shopping trip with Hudson “We are all the same. We all have struggles, but if we support each other, we can get through anything.” – Jennifer Hudson
Give the Difference Increasing her awareness of JCPenney’s goodwill begins with the Give the Difference program. Give the Difference promotes three charities with which JCPenney is closely involved: Boys and Girls Club of America, United Way of America and The American Red Cross. Starting in August, back-to-school season, a customer will have the option to round up her online or in-store purchase total to the next whole dollar and donate the difference to the JCPenney charity of her choice. Rewards members will earn one point for every ten cents they donate. Customers who donate online can update their Facebook statuses to show their contributions, encouraging friends to donate as well. The total amount donated to each charity will be available on JCPenney’s website and announced weekly via Facebook and Twitter. There will be a nationwide, three-month competition to see which JCPenney store can collect the most charity donations. Everyone
GIVE THE
DIFFERENCE who made a donation at the winning store will be invited to an exclusive Jennifer Hudson concert held at an appropriate venue in the area. Employees at the winning store will each receive five additional tickets as an incentive to promote the Give the Difference program.
PARTNERSHIPS & outreach
16
Special Events she knows how to own her look The jcp fyi tour Give twenty different women the same dress and you’ll get twenty completely different styles. A nationwide event called The JCP FYI (Follow Your Intution) Tour will celebrate her style instincts. We’ll supply the little red dress, she supplies the style. Each woman adds her own flair by selecting pieces from
THE
JCP FYI
a range of JCPenney shoes and accessories. The JCP FYI Tour will make strategic stops across the country in tandem with Jennifer Hudson’s tour, as well as additional stops in California, Florida and Texas to ensure maximum exposure in the states with the highest store volumes.
You Just Know
TOUR
Inside the customized tour bus will be multiple dressing rooms, clothing racks and accessories/shoe shelves Dresses will be supplied by three JCPenney brands: Liz Claiborne, Bissou Bissou and MNG by Mango iPads on the bus will let her upload a picture of her outfit to Facebook and Twitter, and broadcast her intuitive style to her friends
jcp A screen on the side of the tour bus will show past participants’ pictures and video clips from previous JCP FYI stops to get onlookers interested in participating If she is a Rewards member or signs up for the Rewards program, she will get to keep the dress and accessories The JCP FYI Tour will create buzz and awareness of JCPenney’s new campaign
Refresh your senses Sometimes she needs an intuition tune-up. Our semi-annual Refresh Your Senses event at the JCP Salon gives customers compelling discounts on several salon services. Semi-annual — occurs for one week in March for spring primping and one week in November in preparation for the upcoming holiday season Promoted through e-mail blasts, Facebook and Twitter
REFRESH YOUR
SENSES
The more services she purchases, the bigger her discount Sephora associates will be available for free makeovers and give out complimentary gift baskets to Rewards members Makeup tutorials on “the perfect smokey eye” conducted by Sephora makeup artists. Women who attend receive smokey eye palettes, eyeliner and mascara to create the look at home
17
Special Events
JCP Salon customers make 3.3 additional store visits per year. Only 11% of these customers are part of the target. This means there is enormous potential to grow the JCP Salon clientele base.
THRILL OF THE HUNCH
Thrill of the Hunch Scavenger Hunt From posting their bra colors to promote Breast Cancer Awareness to changing their default pictures to ones of their celebrity doppelgängers, women in our target have been active in viral trends. To engage women in the target, JCPenney will post exciting, social challenges on its Facebook page. The Thrill of the Hunch is a largescale, interactive scavenger hunt that will give women the opportunity to celebrate their individuality. Fifty lucky ladies will get the chance to participate in the grand finale challenge in the Manhatten JCPenney store, Eight mini challenges allow women to recognize and refine their intuition. For these, women are prompted to post something on Facebook, which will create a community between contestants. Participants’ names will be entered in a raffle to participate in the final challenge each time they complete a mini challenge, adding incentive to join in.
Share how your favorite shoes perfect your look.
Show us how much you heart Ronson.
FEBRUARY
MARCH
In addition to the opportunity to compete in the final challenge, winners of the drawing will receive a two night, all-inclusive trip for two to New York and VIP tickets to Jennifer Hudson’s concert that weekend. For the final challenge, each contestant will be given an electronic scanner and list of clues for items they must find and scan. The woman who follows her intuition and finds the items in the least amount of time wins. The grand prize winner will receive $100,000, second prize winner $50,000 and third $25,000. Timeline: Begins in February and ends in April
Design a unique ring on the Modern Bride website.
APRIL
COMPETE IN NEW YORK FOR A CHANCE TO WIN!
Special events
18
sales promotion She knows there’s nothing like a good deal
JCPenney rewards her intuition JCP Rewards is an exclusive program through which members can learn about discounts, contests and special offers before anyone else. Since Rewards members make an additional 1.9 trips to the store each year, the “You Just Know” campaign includes updates to the Rewards program that will increase members by 100%.
INCREASE REWARDS MEMBERS BY 100% Style Her Story App JCP FYI Tour Learn.Earn.Evolve. Training
The Daily FYI Give the Difference E-Mail Blasts
Refresh Your Senses Event Jennifer Hudson Partnership Weight Watchers Partnership
JCP Rewards with Weight Watchers When a Rewards member is also enrolled in Weight Watchers, her JCPenney account links to her Weight Watchers profile. She can build a Goal Closet of clothes she wants to buy when she reaches her ideal weight. A monthly personalized e-mail will be sent to every member with a message congratulating her on her progress and a suggestion of merchandise she should consider based on the items in her Goal Closet. When she loses weight, e-mails will suggest clothing. When she doesn’t, it will be shoes, jewelry and makeup. As an added incentive, she will receive a $10 JCPenney gift card for each Weight Watchers milestone she reaches.
JCP Rewards Extras Roll-over points: Customers bank points until they reach 250, the number needed for the $10 Reward Refer-a-Friend: Share JCPenney’s Facebook page or retweet JCPenney on Twitter and receive 20 Rewards points Birthday Rewards: 15% off, valid during birthday month Exclusive Offers: Early notice of sales like The Daily FYI and early entrance to Black Friday sale
19
sales promotions
THE
DAILY
FYI
The Daily FYI The Daily FYI (Follow Your Intuition) is a national flash sale that features one hot item each day. The item will be available until it is out of stock or until the next day’s sale. The JCPenney smartphone app will alert customers of in-store Daily FYIs, while the online sale will be promoted on Facebook.
groupon The Groupon customer database is key to the success of the JCPenney Groupon concept. Deals are delivered straight to her inbox by a trusted source, giving JCPenney unprecedented access to millions of potential customers across the country. Groupon now offers deal personalization, which means the JCPenney Groupon will be e-mailed to the people most likely to buy. We will produce four Groupon offers for JCPenney services over the span of the campaign.
GROUPON USERS women with full-time jobs 77% are
50% 50% 29% 22%
are single salaries of $70,000+ salaries of $100,000+ store return rate
sales promotions
20
Digital She knows how to stay plugged in BlogHer Connection 85% of women who read blog posts say they would buy a product based solely on a blogger’s recommendation. BlogHer reaches 20.5 million unique visitors each month. To kick off the “You Just Know” campaign, 200 BlogHer bloggers will receive gift cards good for merchandise in one of four different departments: clothing, shoes, jewelry and furniture as an incentive to blog about their buying experiences at JCPenney.
We will also reach out to bloggers at the BlogHer 2012 Annual Conference. We will install a JCPenney “pop-up store” featuring all items on People’s Style Watch. JCPenney will sponsor a guest Style Watch speaker to talk to women about trends, dressing for their body types and what’s going on at People magazine. Via raffle, JCPenney will give away ten $50 gift cards good for all merchandise and visits to the JCP salon, portrait studio and optics center. Winners will then blog about their experiences, spreading the good word.
DIGITAL EXPERIENCE
Clean layout for a more stress-free online shopping experience
JCPenney jcpenney jcpenney
http://www.jcpenney.comhome
JCPenney JCP REWARDS | YOUR ACCOUNT | SHOPPING BAG
YOU JUST KNOW
Simplifed navagation bar lets users reach any portal of the website in two clicks
SHOP ONLINE
SPECIALS
SERVICES
JCP rewards
ONLY
People
$79.99
StyleWatch
More info
MUST HAVES
JCP Rewards People’s Style Watch Weight Watchers Give the Difference
at
BRANDS
Studio Mojave Comforter Set
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The Daily FYI is prominently featured on the homepage everyday
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21
digital
Quick links to partner brands
Online Radio Ads Pandora fits in perfectly with “You Just Know.” It seems to operate on intuition, playing music based on listeners’ preferences. Therefore, we will execute a Pandora Takeover, infiltrating the website and smartphone application with JCPenney ads for 15-seconds at a time. We will also create Pandora stations for some of our existing and new brands such as MNG by Mango, which will play hip, upbeat music, and Lululemon, which will play relaxing yoga music.
100%
COTTON
ALIBI
100% COTTON ALIBI
ONLINE COMMERCIALS Fifteen-second spots that convey the “You Just Know” theme will showcase the latest JCPenney styles and services, and play on Hulu, YouTube and network television sites.
smartphone application The JCPenney application will provide a more customizable experience. Offering an in-store Wi-Fi “experience” merges customers’ online and offline shopping habits. It also allows JCPenney to better understand customers’ shopping patterns and evaluate the effectiveness of the store layout. Options to personalize the app reduce clutter and create a convenient, intuitive browsing experience. When shopping in-store, a customer can easily connect to the store’s Wi-Fi by taking a picture of an in-store tag. She will be given access to these following “smart phone only” features: Syncs to JCP Rewards profile Syncs to personal online wish list and Weight Watchers Goal Closet Pinpoints locations of items in store from wish list or search function In-store Daily FYI alerts with locations of sale items She can register with JCPenney by scanning products’ barcodes. Items she scans are sent to her registry which can be printed at the Findmore Kiosk, e-mailed to family and friends or uploaded to Facebook
E-mail Blasts
banner ads
Existing robust digital marketing efforts will be simplified in order to retain current customers and attract new ones. The subject lines of e-mails will focus on one product, just as our advertisements do. Lines such as, “the clutch you won’t want to let go” will get the target curious and excited. Only mentioning one product will make her consider how it might fit into her life.
With rich media and traditional banner layouts, advertisements will highlight JCPenney’s gift registry in addition to a multitude of JCPenney products. We will place banner ads on sites she frequents (Brides, The Knot, Amazon, Facebook) to lead her to the JCPenney website. Through SEO, we will focus on how to stay relevant to her.
digital
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STYLE HER STORY Style Her Story Facebook Application Style Her Story is a Facebook game available on the JCPenney Facebook page that allows her to use her flair for fashion to have fun, become familiar with JCPenney products, connect with other women like herself and earn JCPenney Rewards points. She will be given a Fashion Bio, a digital profile with a woman’s picture, name, age, occupation and personality traits. She must choose an outfit from JCPenney for the event the woman is attending.
She will earn Fashion Flair points and Rewards points for every profile she completes. Her unique sense of style guides her as she is awarded fashion titles ranging from Fashion Intern all the way to Style Guru. JCPenney brands are unlocked as she achieves higher style ranks. Every new style ranking is posted to her Facebook wall for all her friends to see. All who reach Style Guru will receive $10 gift cards. Each week, the woman whose outfit gets the most “likes” will receive 20 Rewards points.
Tablet APPLICATION The tablet app’s homepage features a modern version of the classic JCPenney catalogue, something our target remembers and associates with the store. She can click on the catalogue, “flip” through pages and circle items she likes with red “ink.” Circled items will automatically be put on her online wish list. Other features will include The Daily FYI, JCPenney’s Pandora stations, a calendar of events and promotions and a personal appointment planner.
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digital
retail &She Merchandising knows her way around a store in-store experience Through our retail and merchandising tactics, we will position JCPenney as the only retail store that lets her instincts lead her in whatever direction they choose. Integral to our effort to make all JCPenney locations consistent around the country, the same color palette will be implemented in every store. The walls will be a warm tan and the furniture a rich mahogany color. To show a distinction between styles in the clothing departments, furniture and shelving units will act as dividers. In-store signage will follow the look of the campaign and contain Swimples. POS materials will resemble our ads and only feature one product. A sale section will be in each department with signs reading “SPECIALS.” This will effectively improve customers’ impressions of discounted merchandise. Specials sections will be organized by item, color and brand. Framed art will hang in all sections and will incorporate abstract shapes much like Swimples. The different brands will be separated, creating a boutique-like feel that will let customers shop within their particular style of clothing. All future stores will have window displays in front. Future stand-alone stores will follow a spacious, two story layout to make for a more relaxed shopping experience. The JCP Salon will be moved to the forefront of the store and have an entrance from outside, which will increase awareness of this great service that sets JCPenney apart from its competition.
Future Two-Story Layout Intimates
JCP Portrait
Maternity
Women/ Juniors
Clearance
Fitting Room
Women’s Accessories
Jewelry
Gift/Reg
Purses
Fitting Room
Clearance
Toddler
Fitting Room
Boys
Infant/
Juniors
Fitting Room
Young Men
Girls
Shoes
JCP Optical
Women SEPHORA
Fitting Room
Fitting Room
Map Key
Customer Service
Petites
Weight Watchers
JCP Salon
Kiosk
Men’s Accessories
Home Goods
Escalator/ Elevator
Men
Restrooms
Fitting Room
Emergency EXIT
retail
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brand additions
The target comprises 24% of all women who participate in yoga and 27% of all women who purchased at least $100 worth of activewear in 2009. Lululemon is a growing clothing line whose net revenue increased 56% over the past quarter and whose popularity continues to grow among women maintaining an active, healthy lifestyle.
Jessica London is one of the top ten catalogue and online sellers of plus-sized clothing brands that offer stylish clothing aimed at women ages 25-40. By offering a new plus-sized brand, JCPenney will appeal to a greater portion of our target.
Nom is a maternity line geared toward 20-35 year-old women who don’t want to sacrifice style during pregnancy. There were one million births in our target last year, which account for 50% of all births. This makes a new fashionable maternity brand a smart addition for JCPenney.
HGTV’s Design Star, David Bromstad, will create an exclusive interior décor brand for JCPenney to attract homeowners and renters in our target. HGTV reaches 93 million households and women account for 77% of viewers.
Associate Relations We have created a unique associate training program called Learn, Earn, Evolve. Associates will participate in engaging exercises to keep them informed of current trends, policies and procedures at JCPenney. When hired, employees will receive an online account, which will keep track of their progress.
LEARN
In addition to the traditional orientation, associates will participate in “fashion training.” Meetings will be held four times a year and will keep associates up to date on the fashions and trends of the season. Management will be supplied with fashion booklets which cover topics such as the best styles for different body types and suggestions from brand designers. To help strengthen the message that all women can wear JCPenney styles based on their own intuition, the dress code will require employees to wear the style of clothing sold in their departments in their own ways.
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EARN
An incentive points program will reward sales associates who reinforce JCPenney’s strong record of excellent customer service. Exceptional service earns employees one point and signing customers up for the JCPenney Rewards program and credit card earns them two points. Managers keep track of points on each employee’s online account and once an associate reaches 25 points, she will earn $10 off a JCPenney purchase or she can bank them and turn them in for a prize such as an MP3 player.
brand Additions / Associate Relations
EVOLVE
To encourage communication between all levels of JCPenney employees, an associates' blog will be created. “In The Know” will inform employees of current JCPenney marketing, messaging and advertising as well as events and fashion trends from designers, Jennifer Hudson, Sephora and salon specialists. Sales associate involvement will be tracked and they will be rewarded for participation, encouraging them to share ideas, concerns, opinions and stories with other employees nationwide to better serve the wants, needs and intuitions of JCPenney customers.
Media & Budget
budget breakdown
Media Plan Rationale
40% Television
Network and Cable
Whether catching up on her favorite TV shows or browsing the web for a good deal, she is constantly tuned into media. She spends most of her time with television, followed closely by reading magazines and participating in social media. Our budget reflects her habits.
Outdoor: Billboard and Transit
2.5%
Newspaper
3%
25%
4.5%
Magazines
11.4%
Direct Mail
13.9%
Digital
Online Commercials BlogHer SEO Banner Ads
Radio
Broadcast and Online Streaming
media reach map Washington
Montana
North Dakota Minnesota Vermont
Wisconson
Maine South Dakota
Oregon
Idaho
Michican
Wyoming Iowa
New Jersey
Indiana West Virginia
Kansas
Virginia
Kentucky
Oklahoma
Tennessee
Arkansas
New Mexico
Louisiana
North Carolina
South Carolina
Mississippi
Texas
Delaware D.C. Maryland
Missouri
Arizona
Rhode Island Connecticut
Ohio
Illinois Utah Colorado
Massachusetts
Pennsylvania
California Nevada
New Hampshire
New York
Nebraska
Alabama
Georgia
Florida
JCPenney Locations Light Targeting Areas Moderate Targeting Areas Heavy Targeting Areas
media & budget
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Media Breakdown & Budget February ‘12
March
PD AA
April
May MD ED
6 13 20 27 5 12 19 26 2
June FD
July
August OL
LD
9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24
Traditional Television† Network Television* Cable Television**
Radio Broadcast Radio Online Streaming Radio Print Magazines***
Newspaper Direct Mail Outdoor Billboards Transit
Digital Online Commercials Banner Advertising Social Media E-mail Blasts SEO BlogHer Connection
Promotions & Events The Daily FYI Concert Tours Thrill of the Hunch Contest
The JCP FYI Tour Refresh Your Senses Groupon PD - President’s Day | AA - Academy Awards | MD - Mother’s Day | ED - Memorial Day FD - Father’s Day | OL - Summer Olympics | LD - Labor Day
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media & Budget
October
November
December
TD BF CM
1
8 15 22 29 5 12 19 26 3 10 17 24 31
January
Total Cost
To cater our media schedule to her life, we created a flighting schedule divided into four segments.
NY
1
8 15 29 22 One-a-day Advertising
$10,000,000 $30,000,000
Target: Broad Audience * FOX, NBC, ABC, CBS ** Galavision, E!, Bravo, FX, BET, HGTV, TBS, Food Network *** Shape, Runner’s World, Brides, Fitness, Latina Target: Moms
$3,896,000 $10,000,000
$25,000,000 $3,000,000 $4,500,000 $1,500,000
** Lifetime, OWN, Disney XD, Nick at Nite, Oxygen, The Disney Channel *** Fit Pregency, Baby Talk, Parenting, Parents, American Baby, Scholastic Parent & Child, Marie Claire, Family Fun, Working Mother Target: Singles and Homeowners ** VH1 *** OK! Weekly, US Weekly, In Touch Weekly, Life & Style Weekly, Lucky, In Style, Cosmopolitian, Bridal Guide, Elle † Includes fee for music
$1,000,000
$6,000,000 $5,000,000 $0 $0 $54,000 $50,000
TD - Thanksgiving Day | BF - Black Friday CM - Cyber Monday | NY - New Year’s Eve
$100,000,000 = 7,891,408,431 Total Impressions
media & Budget
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evaluation
Goals In Reaching Her
REWARDS
SHARE OF
MEMBERS WALLET increased by 100%
increased by 11.3%
NET SALES increased by 88%
Tracking Success IN-STORE & DIGITAL
EXPERIENCE
PROMOTIONS &
ADVERTISING
BRAND
PERCEPTIONS
customer satisfaction
medium impressions
interviews
click-throughs
coupon redemption
Rewards surveys
application downloads
promotion involvement
focus groups
tag usage
contest & event participation
nationwide brand study
Continuing The Relationship The strong message of the “You Just Know” campaign will establish and ensure longevity of JCPenney’s new brand image. Adhesive understands women’s intuition. We created stories of how different women will use their intuition to make JCPenney products special and meaningful to their lives. The concepts created for all mediums are purposeful and follow Adhesive’s deep-rooted strategy. The key to JCPenney’s success with the “You Just Know” platform will be strategic communication through traditional and more innovative advertising as well as a strong social media presence that promotes high levels of consumer/brand involvement.
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evaluation
Building ideal relationships with the target will ultimately lead to JCPenney meeting its goals. With the continuation of our productfocused campaign, the target’s intuition will instinctively lead them to JCPenney first. Our innovative tactics can be pushed as new technology emerges. Yearly evaluations will be necessary to assess JCPenney’s stance as a market leader. Adhesive created the “You Just Know” campaign to reconnect with her. We understand that gaining her loyalty is all about establishing the strong, lifelong relationship she desires.
CONCLUSION She Knows We Know
“You Just Know” is the national, fully-integrated campaign we constructed based on extensive primary and secondary research. Once we uncovered the barriers to JCPenney’s success, we were able to create a message that broke them down. JCPenney got to know Julie, Claire and Paige. Now JCPenney knows Julie wants to savor every moment of her solo shopping trip. JCPenney understands Claire’s excitement when she sees the perfect lamp and wants to fit it into her budget. Paige wants a store that listens to her and gives her what she wants; JCPenney has learned to listen. And in turn, each woman got to know JCPenney. Because we injected the new brand image into her daily life and celebrated what makes her style unique, she learned to trust JCPenney again. She knows JCPenney wants her to be herself and she feels for the first time they want the same things. In JCPenney, she has found a lifelong retail partner.
conclusion
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SOURCES online Marketing Charts Market Watch TIME Magazine Weight Watchers Brand Channel JCPenney Lululemon Nom Jessica London HGTV Retail Sails BPS BlogHer Census J.C. Penney Corporation, Inc. I-Stock Groupon Lululemon Stats Google Maps Fast Company WSJ Money US News Business Week The Motley Fool: Lululemon
Databases Alexia MRI+ Nielson Company Lexis Nexis Galenet SRDS Books RAMA All About Moms Mind Your X’s and Y’s
acknowledgements Adhesive is beyond grateful for the assistance we received during our journey. To Julie Clark. Thank you for your dedication, your constant availability and your guidance, the code of which we are still trying to crack. To Michael Whitmer. Thank you for your time, your hospitality and your ability to make this daunting task seem manageable and even fun. To Susan Seymour for giving us the research skills that let us really get to know our new favorite brand and the target. To Kristen DiFate for your honesty and keen eye. To Chris Phillips for your creativity and your confidence. To Scott Layne for your time and your talents. To Webster Mail & Copy Solutions for ink, paper and unconditional love. To Tom Etter at TFE Design LLC for your generosity and expertise. To the Emerson Library staff for putting up with our noise and landfill-size stacks of takeout boxes.
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sources & acknowledgements