JCPenny_Plansbook_2011

Table of Contents Executive Summary . . . . . 2 Situation Analysis . . . . . . . 4 Research . . . . . . . . . . . . . . . . . . 5 Marketing Plan . . . . . . . . . . 11 Creative . . . . . . . . . . . . . . . . . . . 12 Promotions . . . . . . . . . . . . . 27 Media . . . . . . . . . . . . . . 29 Evaluation . . . . . . . . . . . 32

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Executive Summary

JCPenney is currently the number two department store for women’s apparel in the United States. The brand is already a well known and respected provider of sensible, affordable clothing, but has an identity and image problem, particularly among women ages 25-34.

Since the target audience consists of women 25-34 for this campaign, we focused our research efforts on examining how this group thinks about shopping.

Through research, we found that our target is going through changes in their lives and are establishing careers, forming new relationships, celebrating weddings, moving to new places, and starting families of their own. This group is busy and motivated. Members of the group prefer to shop in smaller boutiques for an easier, more convenient experience, instead of the clutter of department stores.

The Palmetto Group decided to position JCPenney as a trendy and convenient department store with a mission to prepare women for the important events in life with a stylish and confident wardrobe. To achieve this, we propose the creation of a boutique within JCPenney that appeals directly to our target audience. Through the little black dress campaign, we will propel JCPenney to the number one choice for apparel and accessories. Instead of shopping through department store clutter, customers will find all of their favorite lines and prices that are currently at JCPenney department stores inside a smaller and simpler shopping environment.

To further engage our target, we are recommending a partnership with Rachel Zoe, who will serve as the spokesperson for the little black dress campaign. Our campaign will take advantage of both traditional and non-traditional media outlets.

The first phase of the campaign is designed to generate awareness of the construction of the new boutique, little black dress. This will include Rachel Zoe and a unique fashion line competition. We will ask fashion design schools across the country to design a line specifically for little black dress. The winning school will have their line featured at the grand opening of little black dress in all stores nationwide. The central grand opening will be at the Mall of America and will be aired nationwide simultaneously in JCPenney stores.

The second phase is focused on promoting brand awareness of the new boutique. The central theme is focused around important events in the lives of our target audience. A little black dress is a staple piece in every woman’s wardrobe, something meaningful. We want this boutique to have everything our target needs, and be the store that comes to mind when they need to go shopping. The Palmetto Group will place heavy emphasis on nontraditional media to reach and retain our target on a personal level.

Through creative and consistent advertising and a highly integrated marketing plan, this campaign will generate 6,326,496 store visits by members of our target. It will produce 2,214,273 new regular customers and 553,568 new charge card holders.

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In the Mind of our Consumers Currently...

Members of our target audience believe JCPenney offers fashions that appeal to an older demographic.

After This Campaign...

Members of our target audience will believe JCPenney offers great value and great fashion that appeals directly to them.

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Situation Analysis History and Facts - JCPenney was founded in Wyoming in 1902 by James Cash Penney with the philosophy of treating each customer the way he himself would want to be treated.

- JCPenney is now headquartered in Plano, Texas, and has over 1,100 department stores throughout the USA and Puerto Rico.

Brands - JCPenney has introduced stylish, forward-thinking brands including:

- However, these efforts are falling short of connecting with the intended audience.

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About 34 percent of store visits overall are from adults at least 55+ years old.

The store is attempting to strengthen the relationship with younger women, bridging the gap between department stores and specialty stores.

Research Secondary Research In recent years we have seen an influx of communication technologies; these advances have given users the ability to create, share, and upload various types of heavy cell phone users. content. In order to maintain awareness of events and happenings, consumers rely on these technologies. To reach a given target market, marketers have to adapt to the style of two-way communication because consumers want to be involved in the products they purchase. This is true for department stores; women feel a need for a personalized shopping experience that many stores have overlooked. By reaching women, department stores have an opportunity to reach the majority of a household. This presents a tremendous Our extensive challenge and opportunity for marketers to reach a specific target audience. research with

90% of our target are

women 25-34 indicates that many consumers believe JCPenney caters to an older demographic.

27% of Facebook users are females 25-34 years old.

Our research showed a genuine preference among women for a smaller, boutique shopping experience. Google launched boutiques.com in November 2010; the site is fashion-forward, clean and classic, and uses items from other boutiques and online stores to allow users to create and share looks. If a consumer wants to buy an item, the user is sent to the online retailer of the item for purchase.

In our examination of women’s shopping habits, we learned that women are more likely to react strongly to personal interaction with sales associates. Since women think of shopping as an interpersonal experience, the associates need to have an understanding of the items sold, location of the item, and what will work best for the customer. The experience is the determinant for returning customers and customer loyalty. Women with many responsibilities prefer stores with limited selections; editing the available options in a manageable way will increase shopper loyalty.

The use of smartphones is on the rise. In 2011, approximately 33% of Americans will be using smartphones, up from 27% in 2010.

Women are estimated to make 80% of all household buying decisions.

The demographics of our target are changing. Single people between the ages of 25-34 now outnumber married people. This age group is more willing to spend on more basic items, such as clothing and shoes; they are more motivated by their surroundings and the events that occur in their lives. This provides marketers with an opportunity to target people who feel empowered running their own life, whether single or married.

Women are estimated to make 80% of all household buying decisions.

The use of technology is also changing how our target engages the world.

Mommy bloggers cover a wide variety of subjects, including discount shopping, fashion, and technology. An estimated 54% of moms are reading blogs on a regular basis—and 3.9 million are writing blogs.

Pandora is the leading audio app for the iPhone and iPad. The target is more likely to watch television online and use programs, such as Pandora, to do so. They are also heavy magazine readers.

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Secondary Research - Women 25 -34 in the Midwest and West are more likely to shop at JCPenney.

- Women have become early adopters of the iPad. “Within the first four months of the iPad launch, the female-to-male ratio shifted from 1:2 to 2:3.”

An application that is easy to use and has applicable information for a woman will help establish a relationship with the brand, leading to higher brand loyalty.

Primary Research We conducted a national survey of women to examine more closely how they are similar and different in their shopping habits and preferences.

- We found in this survey that the typical consumer in our target audience wants style and value to meet in a fashion forward, affable environment that is found in many specialty stores, but is rare in larger stores. We also found that members of our target prefer to shop at smaller boutique stores for accessory items and department store for clothing items.

We also found that:

National survey to assess shopping preferences and opinions of department stores

- 49% of respondents prefer to shop at a boutique for accessories - 44% of women go to department stores once or twice a month - 34.5% shop at target, 11.7% at Kohls, but only 4.5% at JCPenney When these women were asked what parts of their lives are taking a lot more attention now than they did five years ago.

Issues

Change in attitude/beliefs Money / resources

Money/resources

Relationship with friends

Fashion/Appearance

Relationship with friends

Research Sources

Physical condition Physical condition

Relationship with spouse/ - Barletta, Marti. “Marti Barletta: Big Economic Opportunity in Marketing to Women.” CMO Strategy. AdAge.com, 2 April 2007. boyfriend

Getting older Getting older

- “Blog Marketing to Moms Is About More Than Parenting.”

Relationship with spouse / partner Relationship with spouse/

Getting older eMarketer.com. October 8, 2010.

boyfriend Fashion / appearance Fashion/Appearance

- Halperin, Shirley. “How Rachel Zoe Became Hollywood’s Most Powerful Fashion Player.” The Hollywood Reporter. March 9, 2011.

Physical condition

Change in attitude / beliefs Change in attitude/beliefs

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0 0

20 20

40 40

60 60

80 80

- Hampp, Andrew. “Why Pandora Is on Virtually Every Device.”

Mediaworks, Adage.com. 17 Jan 2011.

Relationship with friends

- Lewin, Webster. “How to Mobilize your Social Media.” Adage.com.

10 October 2009.

Primary Research We also needed to understand the advertising environment in which JCPenney operates. In reviewing current advertising of our primary competitors, it was clear that there is a tremendous amount of similarity among them. To learn more we conducted a copy test, removing all logos and identifying information from eight print ads- two each from JCPenney, Belk, Kmart, and Kohls.

Copy test of current print media to asses strength of brand identity vs. competitors

- We asked 256 people to identify which company sponsored the advertisement. The results revealed that JCPenney has a big problem.

- Only 18% correctly identified JCPenney advertisements - The other brands also showed very poor unique identification. As a group, these department stores share a lack of identity, and this finding led us to recommend a new approach to advertising for our client.

Advertisement Belk Kohl’s

Identified Correctly 25% 36.4%

JCPenney

18%

K-Mart

25 in-depth personal interviews

13.8%

To expand our understanding of what motivates members of our target as well as their shopping habits and preferences, we conducted in depth personal interviews with 25 members of our target.

- A surprising number of consumers in the target market view JCPenney as a place where their would grandparents shop.

- “‘Men Buy, Women Shop’: The Sexes Have Different Priorities When Walking Down the Aisles.” Knowledge@Wharton, November 28, 2007.

- Patel, Kunur. “Boutiques.com Is So Not Google.” AdAge Digital, 18 November 2010.

- Schultz, E.J. “As Single Becomes New Norm, How to Market Without Stigma.” AdAge.com, 11 October 2010.

- Ziegler, Patti. “How the iPad Is Reshaping E-commerce.” AdAge. com, 18 February 2011.

- Several respondents described the store as too cluttered and hard to navigate, leading to what one respondent described as a “JCPenney headache.”

- Respondents generally desire a balance of value and quality in their shopping experiences.

- They also identified the following as frequent and important events in their lives:

Parties

Weddings

Having children

Forming relationships

Job interviews and career moves 7

Moving into new apartments or homes

SWOT Analysis Strengths - Strong brand image - Loyal consumer base - Currently carry brands popular with our target audience - Value of products is excellent

Weaknesses - Target does not identify with current environment and brand image - Individual fashion brands are not clearly positioned to appeal to this target - Advertising environment lacks a unique personality

Members of our target prefer the environment of a smaller boutique store over larger department stores for many purchases. One reason is that customers’ experience what can be described as a “department store headache.” In order to make our target’s shopping experiences better we decided to create a boutique, little black dress, within JCPenney. It will carry JCPenney’s brands currently popular with our target.

Opportunities - little black dress can become a uniquely competitive and popular outlet among members of our target market.

- little black dress can attract Experiencers (according to the VALS system) because they seek things that are new and exciting.

- We can produce a smooth transition into social media with a large number of fans on Facebook and a popular smartphone application.

- We know that members of our target audience want to be reached on a personal level. We will accomplish this by integrating a high volume of social media.

- The boutique will improve the overall image of JCPenney

Threats - Boutiques that offer lower prices and/or better value products - Environment of JCPenney is not viewed positively by our target - Clutter in social media could harm some promotional attempts - Advertising that is too personalized can create privacy concerns among members of our target audience

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Competition Primary Competitors - Department stores and mass discounters that challenge JCPenney in price, offerings, style, brand awareness, image, and store environment.

Target ranks first in key brand metrics such as brand choice, commitment and momentum.

Macy’s currently excels in fashion marketing. This is very important because women in our target audience demand value and style. The store also concentrates on special events, such as the Macy’s Thanksgiving Day Parade, that create awareness and boost its brand image.

Kohl’s offers competitive prices while presenting consumers with apparel by exclusive brand names.

Wal-Mart and Target are visited more frequently by members of our target than any other primary competitor.

Belk is popular with markets in the South and has done a good job of reaching consumers in this market with their advertising.

Secondary Competitors - Includes smaller boutique stores that are designed to specifically appeal to the 25-34 year-old female market These stores offer relevant styles built around a singular point of view. They all offer a more specialized shopping experience, which is what women in our target market value.

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Consumer Profiles In order to better direct advertising and promotional messages to our target audience, the Palmetto Group has synthesized our audience research and developed two consumer profiles to represent the most typical members of our target.

Jessica is a 34-year-old mother of three boys, 1, 3, and 6. She feels as though time has flown by since she graduated from college, established a career and got married. She works four days a week, but she still has time for her family and friends.

Within the past several years, she has been a part of several weddings and received a promotion at work. With her busy lifestyle, she finds it hard to take time out for herself. With such little time to spare, she needs her shopping experience to be as convenient and streamlined as possible. She needs classic, style-savvy pieces in her wardrobe that will work until the next time she can squeeze in a shopping trip for herself. This includes great fitting dark wash jeans, belted tunic tops, and cardigans.

Piper is a single, hard-working, fun-loving 26-year-old woman. She recently moved into a new apartment and is paying off student loans. She settled into her new environment, made new friends and found a new love interest.

She relies on her smartphone to provide all of the news and entertainment she needs. Piper frequently visits social media sites and keeps up with all things trendy. She wants a style trendy enough to maintain her individuality, but that also meets the needs of her everyday life.

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Marketing Plan The Problem Marketing Objectives

- JCPenney lacks a clear, well-known identity in its advertising.

- JCPenney carries fashionable, trendy lines, but that fact is not translated through communications with the target audience, thus making the target believe that JCPenney is out of touch with their lifestyles and desires as consumers.

We will be using these The client has specified three fundamental objectives for this campaign: six essential ideas to produce an 1. To acquire female customers ages 25-34 2.

To retain female customers ages 25-34 overwhelmingly 3. To increase shopping frequency and grow share of wallet among current female customers effective ages 25-34 advertising The Palmetto Group has chosen to quantify these general objectives as follows: campaign.

Little black dress construction

Build Anticipation Design a line JCPenney’s

1. We seek to persuade 70% of our target audience who are not regular customers of JCPenney to visit the store, and to convince approximately 45% of them to become loyal customers.

In fact, this campaign will increase the number of women who are regular customers of JCPenney by 63%.

2. We seek to provide a strong reason for regular customers in our target audience to remain regular customers.

3. This campaign will generate awareness of little black dress boutique to 70% of our target audience- more than 14 million women and motivate them to increase their visits and spending by 10% during the campaign year.

revitalization

Consistent messaging Personalized touch

Campaign Objective - We will create a distinctive identity, unique in our category, that will allow us to develop strong relationships with members of our target market.

- This campaign will increase the number of women 25-34 who are regular customers of JCPenney by 63% This campaign will generate awareness of the little black dress boutique to 70% of the target audience, and will generate 2,214,273 regular customers among women 25-34. In addition, we will persuade 6,326,496 store visits during the campaign year

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Creative The Challenge Members of the target audience feel that the environment and clothing lines at JCPenney are out of touch with their age group. They feel that JCPenney largely caters to the styles of an older demographic and therefore pay little attention to the lines JCPenney carries for them.

Women in our target audience also think shopping should be a fun, easy and relaxing experience. Almost universally, they prefer to shop at smaller boutique stores for many items.

They enjoy the more relaxed environment, the edgy fashion selections and accessories. They share common experiences and life changes regardless of race, income or lifestyle. We want our campaign to connect to our target both emotionally and individually. We want to use the significant events in their lives as a common ground to forge a strong connection between them and the unique environment of little black dress.

The Big Idea We will connect with members of our target audience emotionally by appealing to life defining events and positioning JCPenney as the target’s perfect choice for success in each situation. little black dress is the center focus for our campaign because it embodies confidence and success, two things that JCPenney wishes to offer the target. little black dress will be a custom boutique inside all JCPenney stores. It will be small and comfortable, relaxed and focused on fashion. It will have everything the target wants – an experience that will connect our target to the brand in a powerful way.

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Strategy Advertising Objective - To generate awareness for little black dress among members of our target market in the United States, we will launch an advertising and communications campaign in two phases.

- The first phase will include the introduction of a fashion line competition that will build awareness and anticipation of a big change to come within JCPenney. This campaign will focus on the reconstruction and revitalization of one special part of the store.

- The second phase will reveal two major elements: the boutique created specifically for our target audience and the introduction of the competition winners, who have designed the clothing line to be featured inside little black dress. Media released during the second phase will focus on building brand awareness by offering ways to personalize the target’s shopping experience at little black dress.

Positioning Statement - The Palmetto Group will position little black dress boutique at JCPenney as the store that has a trend-right look for every occasion, the obvious choice for success in any situation.

Target Market - Women in the United States, ages 25-34 - Members of this demographic have a lot in common, including a vast array of experiences that shape who they are, sometimes for the rest of their lives. Success in these experiences is therefore very important.

Communication Objectives - To build an identity for a new boutique within JCPenney that is desirable, fun, fashionable, and the obvious choice for success for any event in the target’s life.

Tone and Manner - Classy, Confident, Sassy, Excited, Successful

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Ideas & Executions little black dress Construction The first phase of this campaign will build anticipation for the opening of little black dress boutique. It will occur during the early months of 2012 and continue until the grand opening of the boutique on April 7th.

Throughout various JCPenney locations, women dressed up in clothes that will be found in little black dress will wear hard hats and participate in construction-like activities within designated areas of the store. The intent is to generate buzz around what is going on. The reconstruction translates to a revitalized new look and feel for little black dress boutique.

Another event that will trump up attention is a fashion Design-A-Line competition between the top fashion design schools in the nation. Participating schools will work on a fashion line and the winning line will be produced and sold in little black dress. The winning school will be announced at the grand opening of the JCPenney store at the Mall of America.

Teaser print and video advertisements will offer limited introduction to the new boutique, in conjunction with the fashion competition, to build awareness and anticipation for the boutique’s grand opening. The winning school will win a trip to New York Fashion week accompanied by Rachel Zoe. In addition, the school will be presented with a scholarship endowment of $100,000.

Build Anticipation Teaser print and video advertisements will offer limited introduction to the new boutique, in conjunction with the fashion competition, to build awareness and anticipation for the boutique’s grand opening.

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Design-A- Line Competition Spokesperson Rachel Zoe will be the spokesperson for the little black dress Design-A-Line competition. She is already a go-to force among “it” starlets, fashion houses, beauty firms, and magazine editors. She likes to give attention to the individual, and will be a perfect compliment to our overall strategy. Ms. Zoe has already won awards in the fashion community, has judged on Project Runway, and has created her own affordable fashion line. Currently her clothing is sold in select Schools invited to compete: stores and QVC. Rachel Zoe is well known and respected by members of our target audience. Some of her current clients are Cameron Diaz, Kate Hudson, Anne Hathaway, and Kate Beckinsale. Rachel Zoe has found success among the masses while maintaining - Parsons The New respect from fashion elites. She has a signature style for School for Design herself: bohemian and classic, but she realizes the individuality - Fashion Institute of with each client to allow their personality to complement the Technology clothing. Ms. Zoe is now pregnant with her first child.

- Pratt Institute - Drexel Logistics University On February 4, 2012 the competition will be announced to the -SCAD public at an event at the JCPenney inside the Mall of America.

- Academy of Art Representatives from each of the participating schools will be present for the introduction. The spokesperson Rachel Zoe will also University be in attendance to kick off the event. Over the next two months, - California College the competing schools will work to design a top fashion line for the of Arts new little black dress boutique opening inside every JCPenney - Kent State department store. Teaser advertisements will give sneak peaks into the working process of each of the teams in order to feed University anticipation for the grand opening.

- University of Cincinnati - School of Art Institute Grand Opening of Chicago The formal unveiling of little black dress will be April 7th, 2012. The grand opening will be held in conjunction with a major fashion show at the Mall of America - Cleveland Institute of Art showcasing the winning school’s line of fashions designed for little black dress.

- Massachusetts College of Sephora will be in charge of make-up. The models will walk to the little black Art dress boutique and open the doors. Everyone who attends the show will -Rhode Island School of receive a discount to the boutique on his or her ticket. The winning school will also win a trip to New York Fashion Week, accompanied by Rachel Zoe and a Design scholarship endowment of $100,000. The grand opening and fashion show - Woodbury University will be streaming live on YouTube, and on screens in JCPenney department - Fashion Institute of Design and stores throughout the country. Local news stations will be encouraged to Merchandising provide additional publicity. JCPenney will post the introduction of the competition on Facebook and Twitter pages as well. Our proposal is to coordinate the unveiling of little black dress boutique so that it happens at the same time at every location in the country.

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JCPenney’s Revitalization The little black dress boutique layout is simple and stylish. Clothing will be folded neatly on modern looking shelves and racks. It is important that the area is easy to navigate and not cluttered. Mannequins will be trendy and dressed in outfits that correspond to the important events in our targets’ lives. Employees will be members of our target age group. The store will be clean, well-lit and have a friendly atmosphere. Below are sample designs for the boutique layout.

We recommend that JCPenney keeps their current logo, but adopts the gold color used in little black dress as their new trademark color.

This will create a stronger brand identity by distancing JCPenney from the color schemes of competitors.

This recommendation is based on our research findings that showed the target audience had difficulty recognizing JCPenney advertisements from other competing department stores.

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JCPenney’s Revitalization As an extension of little black dress and the changes going on at JCPenney, setups of rooms using JCPenney furniture items will be placed throughout some of the largest malls across the country. Tags on each item will feature JCPenney and little black dress brand information. It will also feature the item’s price and a QR code that will refer the viewer to other items JCPenney carries that would coordinate well in the same room. The little black book is JCPenney’s version of a style guide that will also be available in the boutique. It will highlight upcoming trends and classic looks for all of your special events (More on the little black book later). With a target audience that is often making moves to new apartments or homes, these room setups will offer easy interaction with JCPenney’s home furnishing selection.

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JCPenney’s Revitalization Shopping Bags The little black dress boutique will have its own branded shopping bags. The idea for a new shopping bag emerged out of our research that indicated many respondents were unhappy with the design of the current JCPenney bag. This is a stylish new bag that members of our target audience can be proud to carry around the mall.

QR Code To further connect with our tech-savvy target, all price tags and print advertisements for little black dress materials will feature QR codes. QR codes are an excellent way to connect retail shopping with new technology to create a better overall experience. The customer simply uses his or her smartphone camera to scan the small square located on the bottom left of little black dress items. From there, the QR code links the consumer to one of many options. Scanned in-store clothing items will link to similar items or different accessories that go with that particular outfit. Print advertisements will link to the JCPenney or little black dress website where they can find the price, availability and matching accessories for that item. The possibilities are vast with what can be achieved with QR codes, and we intend to make the target’s experience with little black dress and JCPenney personalized and easy to use.

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Scan this code with your smartphone to see where it takes you!

Consistent Messaging Print Advertisements little black dress print advertisements are simple and stylish. The visual focus is on a single clothing item available at the boutique, and the copy takes the voice of that particular item speaking to its wearer. The ads are intended to highlight the selection at little black dress, but more importantly they form an emotional connection with the reader by instilling feelings of confidence, excitement and success. These advertisements will be placed in popular magazines read widely by members of our target audience and will always close with a strong call to action. QR codes on each ad will refer the reader to the website where they can view prices, availability, matching accessories and fashion tips.

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Consistent Messaging

Video Commercials As part of our little black dress campaign, we plan to make extensive use of video on television and the Internet to personally connect with our target. In the same vein as our print ads, these commercials will use clothes to talk to the audience. The focus of these commercials will be on common events in our targets’ lives (job interviews, dates, a friend’s wedding, etc.) Our commercials will focus on the problems that are associated with these exciting times, (what to wear, how you look, etc.) and explain how little black dress is the answer. By using common life situations that our target audience can relate to, we will position our brand and products as the obvious choice for these exciting and life changing events. In the screen capture below a young woman is single at her younger sister’s engagement party. She is feeling envious of her younger sister, but is comforted by her dress from little black dress, which points out that she is beautiful, stylish, and is catching the attention of many of the men at the wedding party, including the groom.

:30 Radio Commercial Radio executions will carry the same theme, with the clothing contributing to (and in some cases carrying) the dialog.

SFX: TV show In background DRESS: Hey you, quit procrastinating!

SFX: Vacuum cleaner DRESS: You have a big day today. First you have to finish cleaning to impress the mother in law, and order

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takeout so she thinks you’re a good cook.

SFX: Vacuum turning off, noise of putting dishes up DRESS: You don’t have to worry about the outfit though. You picked me out online and then tried me on at the little black dress boutique at JCPenney.

DRESS: (overly sophisticated voice) I fit like a glove; I scream class, but also sophistication.

SFX: Rummaging through a closet DRESS: And I would just love it if you paired me with those little peep toe shoes, or the pumps in the corner.

SFX: Brief silence DRESS: Okay, so what are you waiting for? Time to put me on.

DRESS: If anyone else out there needs my help, find me and my friends at littleblackdress.com

Consistent Messaging Stylebooks little black dress will also produce stylebooks that contain fashion advice and how to dress for certain events.

These stylebooks, called the “little black book,” will be at the store and placed in every shopping bag. Meant to be a quick reference for our target, the informative books are another great way we can convey that little black dress knows what’s going on in their lives of our target and will be there to help.

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Personalized Touch Smartphone Application We will update the JCPenney Smartphone/Ipad application to create a more connected experience for the user. Using QR code technology, we will enable customers to look-up products more quickly and conveniently—making shopping and buying that much easier. These QR codes will be scannable by the application, allowing the user to more closely examine products from advertisements and store tags. Like the dress in the latest JCPenney ad? A quick scan will pull up the product page with sizes, colors, availability and purchase information. It will also be linked to a user’s JCPenney account. Since many shoppers preview items they are planning on buying before they come to the store, having a list of products from online browsing will be extremely useful. Users can sign in with their Facebook accounts. The new and improved JCPenney app will link to pages on Twitter and Facebook, as well as the new little black dress events page.

The application will have the capability to generate a special barcode that acts as a personal identification card. Users will have the ability to scan the barcode at checkout and receive special deals. Special kiosks located throughout the boutique will also be able to scan the barcodes. Virtual store guides will greet customers personally, point out products that they may have browsed online, and allow them to pull up registries and gift lists for any upcoming events.

The application will be free and available in all smartphone app stores.

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Personalized Touch Membership Card little black dress will encourage an active relationship with our customers through the informative and engaging membership program cards issued to members. Each member is issued one for your keychain, and one for your wallet. The card has a bar code that will be scanned at checkout, and also will be used at in-store kiosks to pull up specific information about the customer (much like the Smartphone application).

Our membership database will serve as the launching pad for an aggressive interactive marketing campaign. Through this effort, we will let members know about special sales, Rachel Zoe events, and more. In addition, the system will send messages to members congratulating them on birthdays, special events, and opportunities.

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Personalized Touch Email Blast Members of little black dress at JCPenney will receive emails with discounts periodically. The emails will embody the same creative voice as the rest of the creative and IMC, from the point of view of the clothes.

Brochures little black dress at JCPenney will publish a brochure that includes information on the store and our relationship with Rachel Zoe. The brochures will be placed around the mall, especially in the sponsored room setups. In addition to general information, the brochure will include an application for the distinctive little black dress charge/membership card and promotional/ discount information

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Personalized Touch little black dress Website The little black dress campaign will, of course, include a website for the boutique. The website will be simple to navigate and pleasing to the eye.

Customers have the option to shop by brands, occasion, and to schedule an appointment with a personal shopper. By signing up for this personal shopper you can take the outfits you chose online and have them waiting for you in the store to try on and purchase. Not only will your personal shopper have these outfits ready and waiting for you but they can also assist you in accessorizing and styling new outfits. The website will also feature virtual mannequins that customers can create and customize their outfits.

little black dress Twitter page The little black dress campaign will utilize a Twitter page under the name @LBD_atJCP. Customers will be able to tweet questions about outfits for certain events around the clock. They will also be able to upload pictures of what they are thinking of wearing. The dedicated staff at little black dress will receive these messages and give feedback on the outfit.

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Personalized Touch Facebook Customers and members of JCPenney and little black dress will become fans on Facebook. Our customers will have an option to download a JCPenney application, that will allow them to customers will be able to create, plan, and post events on the little black dress Facebook page. Interested parties will be able to discuss the event, what to wear, and play games on the page that are relevant to the event. We want our customers to stay plugged in and connected, and keep the little black dress updated with their events.

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Promotions Digital Billboards After a customer/ member posts on Facebook or Tweets about an upcoming event in her life, little black dress will display an electronic message (in the appropriate geographic location) offering words of encouragement or congratulations. If location does not permit, little black dress will send an email with the personalized message. This is another impressive way to connect with the target to show that little black dress and JCPenney cares about her personally.

Branded Sleepshirts little black dress will also produce soft, comfortable sleep shirts available at the store. During the grand opening and special events that customers are involved with, sleepshirts will be given away for free to those in attendance and around the mall.

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Blogs Mommy blogger’s are an important part of the demographic. Not only do these women care about their fashion and style up-keep, but they are concerned with their little one’s outfits as well. Mommy blogs are a great way for members of our target to keep up with the latest fashion, parenting and product tips from people to whom they can relate. little black dress will involve these opinion leaders by sending them sneak peeks of our new apparel and accessories to try out and blog about. These bloggers will wear and use the accessories and apparel and give feedback to followers. This will be another innovative way to keep our target informed of what’s coming at little black dress and give them insight from someone they can trust. Mommy bloggers are “one of us” in the eyes of our demographic, so allowing them to honestly and openly discuss our newest products will give customers a real opinion. little black dress will work with mommy bloggers like coolmompicks.com, alistmom.com, and amominredhighheels.com. These are three of the top mommy bloggers on the web.

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In order to maximize our exposure, we plan strong emphasis in these spot markets:

Media

We are recommending a national campaign for the little black dress with heavy emphasis on spot markets. Because our target feels a strong disconnect to JCPenney, media that are more personal and direct are being incorporated with more traditional outlets. We are trying to increase our share of wallet all over the country, with a focus in the West and Midwest area, because research indicates a stronger presence there. Also, the top 10 markets will be targeted to retain loyal customers throughout the country, as well as those trendsetters in these top cities. Spot market focus within our campaign will help to involve the consumer with little black dress and change their attitude about JCPenney. Because of our target’s media preferences, spot market media are vital to the campaign.

1. New York, NY 2. Los Angeles, CA 3. Chicago, IL 4. Philadelphia, PA 5. Dallas- Ft. Worth, TX 6. San Francisco et al, CA We will run a flighting schedule through January and February, then in March and April we 7. Boston, MA will add additional pressure to emphasize the fashion show and new line for the little black 8. Atlanta, GA dress boutique. We will decrease our media buys throughout the summer. As Christmas season approaches during November and December, we will again boost the schedule.

9. Washington, D.C. 10. Houston, TX

Media Rationale

Television Tulsa,OK :30 spots shown during early afternoon and primetime throughout late afternoon talk Tucson, AZ shows and the evening news. We have both national and spot commercials running Denver, CO during these times, as well as cable. Our target is just getting home from work, school, Phoenix, AZ or picking up the kids.

Des Moines, IA Radio Portland, OR :30 spots during morning and afternoon drive. Our spots will feature clothing items Indianapolis, IN speaking to a woman in a variety of situations. The dress typically gives her a pep San Diego, CA talk and boosts her self-confidence.

Las Vegas, NV Magazines- Women’s Milwaukee, WI 4C full spread will focus on events that members of our target audience will Salt Lake City, UT have in common. These ads will be placed in women’s magazines such as Fresno- Visalia, CA Cosmopolitan, US Weekly, Better Homes & Gardens, and The Knot.

Albuquerque, NM Oklahoma City, OK Movie Theater :30 pre-show spots and lobby advertisements in top ten markets are Kansas City, KS-MO designed to further publicize the little black dress and connect to our Wichita- Hutchinson, KS target where they spend time. Research indicates members of our Green Bay- Appleton, WI target enjoy going to movies. These are trendsetting locations that 29 Sacramento- Stockton, CA are spread out across the country.

Minneapolis- St. Paul, MN

Media Rationale Internet Radio- Pandora and Grooveshark We placed heavy emphasis on interactive audio products because our target listens to these stations on their computers, as well as their smart phones and iPods. Our target is heavily engaged in free online music- Pandora and Grooveshark. Unless she is a paid subscriber, the user must listen to the advertisements if they wish to continue listening.

South Bend- Elkhart, IN Colorado Springs et al, CO Sioux Falls- Mitchell, SD Santa Barbara et al, CA Internet Video- Hulu and YouTube Corpus Christi, TX We will be buying premium branded slates (backgrounds) and before show North Platte, NE advertisements on Hulu and on YouTube. We will also incorporate webisodes of Great Falls, MT updates from our Design-A-Line contest and the latest fashion advice from our in-store stylists.

Mankato, MN Missoula, MT Outdoor/ In Store Billboards Rapid City, SD Electronic billboards will be placed in major cities across the United States with Lafayette, IN encouraging messages for the target, such as “Amanda, Good luck on your job interview tomorrow!� When people post an event on the little black dress Facebook wall or send a tweet, Yakima, WA this information will be constantly updated with current tweets and posts to the billboard.

Omaha, NE Helena, MT Facebook In addition to creating an account for little black dress, we will create new event pages through Eugene, OR our online application Bend, OR Reno, NV Twitter Butte, MT The personal account for JCPenney will take on a persona of a little black dress and provide fashion advice for our target and will also give info about upcoming sales and

Eureka, CA events within the stores.

Spokane, WA Madison, WI Blogs Medford, OR We will be partnering with mommy bloggers in return for free merchandise. They will create a heavy online presence for little black dress boutique.

Sioux City, IA Palm Springs,CA Media Budget Breakdown Email Idaho Falls et al, ID According to the personal interviews, our target likes to receive email blasts as a way to learn about sales and in-store promotions.

Chico- Redding, CA Casper- Riverton, WY Media Grand Junction et al, CO Budget Breakdown Joplin- Pittsburg, KS-MO Minot- Bismarck et al, ND Television Radio La Crosse- Eau Claire, WI Magazine Bakersfield, CA Internet Tv

Radio

Magazine Internet Outdoor Theatre

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Outdoor Theatre

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National contingency 224,800

Spot contingency 1,750,000

Evaluation No promotional campaign can be successful without a comprehensive assessment component. The Palmetto Group has included a multi-phased evaluation for the little black dress campaign to assure JCPenney that the company’s expectations are being met.

The company has provided three essential goals for the campaign:

• There are 20,084,000 women between the ages of 25-34 in the United States.

• Of those, 4,796,000 have shopped at JCPenney in the last three months. This represents 23.9% of the target population.

• Women aged 25-34 are 52% more likely than the average woman to have spent $100 or more for a dress in the last 12 months.

• The problem is that members of our target audience are 18% less likely than the average women to have shopped at a JCPenney store in the past three months.

The campaign to promote the creation of the little black dress boutique will generate 793,160,000 total impressions, reaching 70% of our target market an average of 5.6 times.

We expect the new boutique to generate a strong following from the opening, due to the increased promotion in construction as well as the fashion competition. From there, we expect to see creative advertising and integrated marketing campaigns continue to boost the shopping frequency of our customers, specifically women in our target audience.

Total Reach: Members of the target persuaded to visit the store Members of the target persuaded to become regular customers Members of the target persuaded to sign up for membership/charge card

14,058,880 6,326,496 2,214,273

70% 45% 35%

553,568

25%

The Palmetto Group makes use of a system we call “4-3-2” to estimate the eventual impact of a solid promotional campaign. We know from experience and our study of the industry that we can expect certain percentages to hold up very well as we reach our target audience. We are able to convince a percentage of them to sample a product, convince a percentage of them to become regular customers and convince a percentage of them to take an additional step, in this case to apply for a membership/charge card. The numbers for this campaign follow this same formula.

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1. Acquire female customers ages 25-34 2. Retain female customers ages 25-34

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

Source MediaMark Research Report: Fall 2009 Product database.

Women who have purchased a dress in the last 12 months costing $100 or more.

MediaMark Research Report: Fall 2009 Product database. Women who have shopped in Department, Clothing/Shoes & Specialty Stores—JCPenney in the last three months—any.

Creative Media Sources

Stock photos courtesy of Corbis Images Model photos from www.thebudgetbabe.com and jcpenney.com Rachel Zoe photo courtesy of http://fashionlife-peggy.blogspot. com/2010_08_20_archive.html Media chart created with Media Flight Plan Competitor logos from google.com/images and en.wikipedia.com