JCPenney - NSAC 2011

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COUGAR CONCEPTS UNIVERSITY OF HOUSTON

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executive summary objectives the jcpenney brand their brand research meet the target geography brand destination the campaign paid earned owned contact plan calendar return on investment evaluation and future thoughts appendix the team

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jcpenney is truly a unique advertising challenge. While

Target

Connection

most advertising campaigns focus on a single product

The target will be called the “Transitioners” because

The campaign connects to the target audience through

or service, jcpenney is the conduit for hundreds of

they are moving from one life-stage to another. They

a combination of paid, earned and owned media.

different products, services and brands.

have been segmented into three groups (Me’s, We’s

This integrated plan uses broadcast, print, digital,

and Us’s) based on their life-stage to discover the

promotions, sponsorships and social media in unique

needs and perceptions shared by all.

and innovative ways.

Consumer Insight

15 opportunity markets for special local emphasis have

The research shows Transitioners are looking to express

been selected in jcpenney-identified states of Texas,

Cougar Concepts’ task is to uncover insights into this

their unique style. They don’t want to compromise, but

Florida and California.

problem and provide a complete, persuasive integrated

many times they feel that they must.

Communicating jcpenney’s benefits and linking it to the broad selection of products and services it offers is a difficult task.

solution. This is our plan to transform how young

Customer Experience

women think of jcpenney and help them discover one of

Positioning

America’s greatest retail institutions.

The proposed campaign will make jcpenney a relevant

customers, a program has been developed to impact

part of their everyday lives by giving them more choices

every part of the customer journey. These include

to express themselves.

enhancements to the in-store and digital customer

So, let’s begin.

To help increase share of wallet from existing

experience and a personal URL program. Creative The creative strategy builds on the “Who Knew!”

Conclusion

campaign by showing women discovering the choices

The proposed plan will deliver $12 of revenue for every

that the jcpenney brand offers. The creative execution

$1 of advertising with a comprehensive measurement

breaks the mold of traditional model-driven category

program to monitor success.

campaigns. The campaign is consistent yet flexible enough to showcase all categories of merchandise,

The plan is set. Cougar Concepts is ready to start.

sales and events.

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The challenge is to develop a fully-integrated marketing communication program to increase jcpenney’s share of wallet of women ages 25-34. To accomplish this, a four-year plan has been developed to increase sales by 51% or a compounded annual growth rate of 11%.

Brand Purchase Funnel The department store industry is under 25-34-year-olds

tremendous pressure. Three major trends that

in the target market.

impact the jcpenney brand have been identified. Changing Merchandise Department stores aggressively compete for

will be aware of the advertising

exclusive rights to popular and up-and-coming

by reaching 90% of the target.

brands rather than competing just on price. will become regular jcpenney shoppers.

will consider shopping at jcpenney.

Changing Shopping Habits Consumers are changing the way they shop in response to the economy and the evolving digital retail world. Surveys show 67% of consumers are logging online to compare prices, find coupons, hunt for bargains and seek advice from other shoppers before leaving home.

will become new jcpenney shoppers.

Changing Competition Competition for department stores has changed in recent years because of the accessibility and convenience of discount, specialty and exclusive online retailers.

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The following are areas in which jcpenney excels, and those in which it can improve.

Surprising Competitive Strengths

SWOT Analysis Strengths

Weaknesses

Holds a diversified supplier base of more than

Low customer brand loyalty

3,500 vendors

Lack of awareness of exclusive store brands

Operates more stores in the United States

Perceived by customers as being outdated

than any other department store •

Recognized as a well-respected and trusted

and unfashionable •

Decreasing profit margin

company •

the following advantages compared to other department stores: •

Operates more department stores

Offers more exclusive brands

Offers more services

Offers more compelling prices

Offers exclusive power brands

Opportunities •

It was surprising to discover that jcpenney possesses

Threats

Increase in online marketing and mobile

Economic uncertainty

application use

Increased competition in department store industry

Rising consumer demand for private labels

Changing demographics

Consumers driven by convenience, price and style

New competition from vendor stores and online channels

Rising commodity prices

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Department stores compete largely on style and price. jcpenney needs to break out of the sea of sameness of the category’s advertising.

All department stores feature fashion models, celebrity designers and sales.

The style of your life. •

296 stores in 29

Expect great things. •

states •

Women’s apparel and

(37%) of its revenue

states •

accessories account for more than a third

1,089 stores in 49

Save money. Live better.

50th anniversary in America’s fastestgrowing department store

states •

2012 •

3,616 stores in 48

50th anniversary in

850 stores in 45

states •

Exclusive and store

Life. Well spent.

Expect more. Pay less.

The magic of Macy’s.

2,003 stores in 49

states •

50 states and Puerto

50th anniversary in

Rico •

No. 1 American

2012

labels account for

The world’s largest

approximately 35% of

The second-largest

retailer of home

retailer

total annual revenue

discount retailer in the

appliances, lawn

Uses celebrity

U.S. behind Walmart

mowers and fitness

2012

929 full line stores in

designers as its official spokespeople

equipment •

The nation’s largest provider of home services

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Objectives

Strategies

Understand brand equity of jcpenney advertising.

surveys, mystery shoppers, cartooning, focus groups, mind mapping, semantic

Understand the linkage of jcpenney and its exclusive brands.

perceptual mapping, visual perceptual mapping and word association.

Understand the brand perception of jcpenney among women ages 25-34.

Both qualitative and quantitative research methods were used including: online

Gain insight into department store shopping behavior.

Quantitative - Online Survey (1,200 respondents) When you think of department stores, which come to mind? Macy’s

Dillard’s

recalled

recalled

recalled

“Every Day Matters.”

“It’s All Inside.”

“New Day. New Look. Who Knew!”

jcpenney “jcpenney is a store that appeals to...” From which of these department stores have you made a purchase in the last 30 days? Target Walmart

agree for 35+

agree for 25-34

don’t like jcpenney

like jcpenney

Macy’s What was Discovered:

jcpenney

are very or somewhat

Macy’s owns top-of-mind awareness

jcpenney is the least visited/shopped department store

associate

jcpenney is the least liked department store

jcpenney with

jcpenney has low brand equity

the color red.

familiar with jcpenney.

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Qualitative Mystery Shopper (50 respondents)

Cartooning (50 respondents)

What was Discovered:

Shoppers perceive jcpenney as a place to find necessities; they prefer to visit other department stores for special items.

What was Discovered: “My dad’s birthday is today. I am getting him a

The target audience doesn’t want to be associated with the jcpenney brand.

last minute gift.”

“I hope he doesn’t shop there.”

“My cousin’s baby shower is tomorrow and “I’m looking at the new fall line of Jessica Simpson shoes.”

she is registered here.” Focus Group (50 respondents) What was Discovered:

What do you think about jcpenney?

Transitioners shop jcpenney for price, but not for quality or style. “I find three

“I buy all my cosmetics from

“I forgot it was

here.”

still in business.”

things I can buy at jcpenney, but

“Affordable, but

then go to Macy’s

cheap quality.”

and get one great thing.”

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Qualitative Mind Map (50 respondents)

Semantic Perceptual Map (50 respondents)

Teenage memories and outdated imagery are associated with jcpenney.

Transitioners positioned jcpenney as “old” and moderately priced.

What was Discovered:

What was Discovered:

dark stores

was old fashioned/ more classy now old people

cheap with sales can’t find anything

Teen Years

Image

coupons

buying school clothes

Memories

daughter’s first pictures

fashionable

early teen years American Living LEE/LeviJeans Martha Stewart Southpole Liz Claiborne Nike Shoes Calvin Klein

Brands

Christmas shopping

bought my work suit from there shopping for house items

DKNY Bisou Bisou Sephora I heart Ronson Mango

Apple Bottom Baby Phat NY and CO. A.N.A. Arizona

fabric

Inexpensive

Expensive

comforting

feels cold

old cookie

out of place

Sight

not eye catching

Taste

Touch

overwhelming neat

cheap

neat children pics cute

sales

Modern

fresh

trendy organized

always has good prices

shopping with my mom

prom dress

“Minnie Pearl”

disappointed

friendly

quality products

5 Senses

pink/grey/black old people

Smell

old

Hear neutral

fresh scent perfume

fabric

mozart music calming/relaxing soft music

don’t see much of it

Recall

random models

Advertising

word of mouth gift card

commercials newspaper sales

Medium

magazines

radio

Old

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Visual Perceptual Map (50 respondents)

Word Association (50 respondents)

The target audience associates jcpenney with traditional and conservative

There is a disconnect between jcpenney and the newer power brands it

styles and not with trendy merchandise.

carries.

What was Discovered:

What was Discovered:

Barriers to overcome The following are key barriers the campaign must overcome: •

The perception of jcpenney is outdated

jcpenney has low brand loyalty

There is a disconnect between jcpenney and the new brands it carries

jcpenney has limited advertising equity

jcpenney is greatly misunderstood by the target

The plan is to break these barriers and integrate jcpenney and its offerings more fully into the target’s lives.

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The target will be called the “Transitioners” because they are moving from one life-stage to another. They have been segmented into three groups (Me’s, We’s and Us’s) based on their life-stage to discover the needs and perceptions shared by all.

Me’s

We’s

beginning their careers

mature relationships

Population: 7,704,000

Population: 2,475,000

Ashley is an ambitious

Katie values her privacy

and dedicated young

and is in a committed

career woman committed

relationship. She’s

to succeeding at

always in the market for

whatever cost. She does

the latest fashions. Katie

Single women

Women in

not allow much time for

doesn’t seek advice

social events, but she does make time for shopping. Ashley’s shopping mantra is

directly, but refers to experts for insights into what is “in.” Katie is a smart shopper;

“people don’t envy function, so I buy what looks good.” She believes fashion-forward

she doesn’t mind shuffling the clearance racks for discounted clothing or rummaging

merchandise does not justify high prices. She always researches competitor pricing

through shelves and aisles for home accents.

before finalizing any purchase.

Us’s

Women who are mothers Population: 10,204,000 Cristina is a professional power mom. Her family is her top priority. Even with her full-time job, managing a home,

Shared Values

Shared Challenges

Convenience

Time constraints

Customization

Style

Authenticity

Budgets

Discovery

and taking care of the children, she always sets time aside to shop. Cristina does not care about blending in, but prefers to stand out effortlessly. She is an early adopter but does not aim to make fashion statements. If the store sells it, Cristina has it.

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Fifteen opportunity markets have been selected in the jcpenney-identified states of California, Florida and Texas based on penetration of Transitioners and department store category sales. A national umbrella campaign will support all markets.

Hot Spot Markets Markets

% of US

% to US Dept. Store Sales

($89,724 million/205 markets)

Los Angeles, CA

5.0%

5.9%

Dallas - Ft. Worth, TX

2.1%

2.9%

Houston, TX

1.7%

2.5%

Miami - Ft. Lauderdale, FL

1.4%

2.3%

San Francisco - Oakland - San Jose, CA

2.3%

2.1%

Sacramento - Stockton - Modesto, CA

1.2%

1.5%

San Diego, CA

0.9%

1.4%

Tampa - St. Petersburg (Sarasota), FL

1.5%

1.2%

San Antonio, TX

0.7%

1.0%

Palm Springs, CA

0.1%

0.9%

Orlando - Daytona Beach - Melbourne, FL

1.1%

0.9%

West Palm Beach - Ft. Pierce, FL

0.7%

0.9%

Fresno - Visalia, CA

0.5%

0.7%

Austin, TX

0.5%

0.6%

Jacksonville, FL

0.6%

0.5%

Total

20.2%

25.1%

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This shows where the jcpenney brand is now and where the campaign will take it.

Current Belief

“jcpenney is an old-fashioned discount

Future Belief

“jcpenney is a store where I can buy the

department store that caters primarily to

basics and also discover fun and unique

older women. It is a place for basics and

items that help me express my individuality.”

services, but I don’t think of it as a place that offers contemporary fashion or merchandise

Consumer Insight

for me.”

Transitioners want to express their unique style. They

Current Behavior

“As a result, I occasionally shop jcpenney.

Future Behavior

don’t want to compromise, but many times they feel that they must.

“jcpenney is the first store I check for new

I usually do when they have a great sale.

merchandise. I use jcpenney for adding

I will buy basics for me, like underwear;

a variety of things to my life from fashion,

housewares; or items for my child or

to housewares, to some of their unique

husband. I shop at other department stores

services.”

for items that I wear or things that I want to show my friends.”

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Brand Truth

Consumer Truth

jcpenney offers more brands and services at

Transitioners want to express themselves

better prices than any other department store.

but feel that they must compromise.

Discover more ways to express yourself. Why the Idea Works

It taps into the consumer’s human need for self-expression and offers jcpenney as the solution.

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The creative strategy directly builds on the “Who Knew!” campaign by showing women discovering more ways to express themselves by simply including jcpenney in their lives. Positioning

Art Direction

By positioning jcpenney as the solution for Transitioners to express themselves, the

The campaign will use silhouettes of Transitioners in a variety of ways. Solid

campaign will make jcpenney a relevant part of their everyday lives.

silhouettes will be used as a brand identification tool. Silhouettes filled with products will be used to demonstrate the breadth and depth of jcpenney. The new jcpenney

Changing jcpenney Perception

logo will complement all executions.

From

To

Functional •

Fashionable

Copy

• • • • • • • •

• • • • • • • Dated

• • • •

Contemporary

The copy strategy connects words and phrases that the target uses to express

• • Sporadic visits

• • • •

Everyday visits

themselves to the jcpenney brand. For example: “Celebrate. jcpenney.”; “Give joy.

• • • • • • • Tired •

• • • •

Surprising

jcpenney.”; and “Discover. jcpenney.”

• • • • Not for me •

• • • •

Just for me

Execution Idea The campaign expresses the big idea using silhouettes of Transitioners filled with

Call to Action The campaign will direct Transitioners to the jcpenney website to research, shop, or find a nearby store.

products. This takes jcpenney beyond the sea of sameness of runway models, celebrities or a single spokesperson.

Multi-Cultural Transcreation The campaign is adaptable to every language and culture. Cougar Concepts will

Why the Idea Works

work with the jcpenney ethnic agencies to ensure that the campaign reaches every

Silhouettes of Transitioners are a direct connection to the target. Silhouettes are

audience.

iconic fashion and art metaphors. This iconic imagery adds freshness to jcpenney’s advertising equity. Silhouettes are flexible and adaptable to any advertising situation from the big screen to in-store. They act as an invitation to join the jcpenney experience.

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Pre-Testing The creative has been pre-tested with both Transitioners and current jcpenney customers. Testing affirmed that Transitioners and current customers would be motivated to shop at jcpenney. Why are we advertising? To increase the level of purchase penetration and frequency among

Transitioners

Current jcpenney Customers

women, ages 25-34. Whom are we advertising to? 25-34 year old female consumers; the “Transitioners.” What do they currently believe/think? jcpenney is convenient and reliable when it comes to staple items, but it is not a store for items that would express their personality.

Light, friendly, sincere and confident. Mandatories Use new jcpenney logo with Pantone color 186.

trendy.” “It’s different than older

renewed.”

campaigns.” “I like the text, it makes me want to go

compelling prices that will let them express their unique style.

What tone do we want to take?

very hip and

at jcpenney.”

fresher,

By discovering jcpenney, they will find surprisingly contemporary fashion at

They can discover more ways to express their unique style at jcpenney.

“It’s

“It seems

What do we want them to do/think?

What is the most compelling thing to say?

“I like it! I would shop

shopping.”

“I like it, it’s something different.” “I would

“Looks classic

definitely join

and simple.”

the baby registry.” “They make me want to go and check them out.”

“I like it more than ‘Every Day Matters’.”

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Connection Planning not only reaches Transitioners, but also connects them to the brand. The Connection Plan consists of three categories of media: Paid, Earned and Owned. Each provides a different level of consumer engagement. Paid media is anything that is purchased on behalf of jcpenney activating the brand funnel.

Objectives

National Network Television

Reach 90% of Transitioners (females ages 25–34)

Support key sales periods and events

Why: Highest reach with top 20 rated programs for Transitioners.

Provide additional support to hot markets

Strategies

Vampire Diaries

National Cable Television

Olympics

What: 15-second commercials on six cable networks.

Why: The Olympics had a 16.2 rating in 2008.

How Many: 715,000,000 impressions

What: 15-second commercials in the 2012 Summer Olympics.

Why: The selected cable networks have 120+ viewing index for Transitioners.

How Many: 280,000,000 impressions

How Much: $14,900,000

How Much: $7,000,000

Gossip Girl

How Much: $7,000,000

One Tree Hill

How Many: 250,000,000 impressions

House

viewed fashion event with 41.7 million viewers in 2010.

Bones

Why: jcpenney has a rich tradition of sponsoring the Academy Awards; the highest

Glee

What: 15-second commercials in the Academy Awards.

The Good Wife

Kick-off: 2012 Academy Awards

How I Met Your Mother

Support hot spots with local media and promotions

Law & Order: SVU

Schedule support with emphasis leading into seasonal thrusts

The Office

How Much: $29,200,000

Grey’s Anatomy

Use traditional, non-traditional and digital media to reach Transitioners

How Many: 890,000,000 impressions

Dancing with the Stars

What: 15-second primetime commercials on five networks.

my style.

®

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Celebrate: 15-second

Frame 1: Music fades in.

Frame 2: Silhouette

Frame 3: Silhouette fills

Frame 4: Real woman

Frame 5 VO: “Celebrate

Frame 6: Music fades out.

appears.

with product.

replaces silhouette.

choice.”

VO: “jcpenney.”

VO: “With exclusive

VO: “jcpenney gives you

VO: “to express your

brands like Aldo, Mango

so many ways...”

style.”

Frame 2: Silhouette

Frame 3: Silhouette fills

Frame 4: Real woman

Frame 5 VO: “Give joy.”

Frame 6: Music fades out.

appears.

with product.

replaces silhouette.

VO: “Give a lot without

VO: “From Mango to

VO: “jcpenney makes it

spending a lot.”

American Living to

easy to reward those on

Cuisinart...”

your ‘nice’ list.”

and Cindy Crawford Style...”

Joy: 15-second

Frame 1: Music fades in.

VO: “jcpenney.”

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Total Print – Magazine

What: 101 full-page 4-color ads in 10 magazines. Why: Transitioners read 6+ magazines a month. How Many: 361,000,000 impressions How Much: $13,700,000

Parenting

Parenting: 6 full page, 4-color ads: $1,000,000

American Baby: 6 full-page, 4-color ads: $1,200,000

Fashion

People StyleWatch: 11 full-page, 4-color ads: $900,000

Vogue: 12 full-page, 4-color ads: $1,600,000

Bridal

Women Interests

InStyle: 12 full-page, 4-color ads: $1,800,000

Modern Bride: 12 full-page, 4-color ads: $1,600,000

Elle: 12 full-page, 4-color ads: $1,200,000

Marie Claire: 12 full-page, 4-color ads: $1,400,000 Glamour: 12 full-page, 4-color ads: $1,600,000

Cosmopolitan: 6 full-page, 4-color ads: $1,400,000

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Search Engine Marketing

Video Websites Pre-roll

Why: SEM is the top method to drive consumers to the jcpenney website.

Why: 43% of Transitioners visit YouTube or Hulu at least once a month.

What: Search engine marketing on Google, Bing and Yahoo. How Many: 480,000,000 impressions

How Many: 9,000,000 impressions How Much: $1,100,000

How Much: $1,500,000

Campaign Keywords

What: 15-second advertisement on Hulu and YouTube.

Brand Keywords

Outdoor

What: 25 GRP/showings of 14’x48’ outdoor boards placed in hot markets. Why: Outdoor has a 125 index for Transitioners. How Many: 80,000,000 impressions How Much: $3,900,000

Discover

style.

Dating Website Rollover Banners

What: 336x280 pixel banner advertisement on Match.com and eHarmony.

Why: “Me’s” represent 25% of the total monthly visits to online dating services. How Many: 200,000,000 impressions How Much: $3,000,000 A

B

Celebrate

choice.

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Color-sensitive Digital Mall Display

Cinema

interactive mall displays in the hot

Why: Cinema advertising recall is three times greater than television.

What: 15 color-sensitive backlit markets.

Why: Engages shoppers by reflecting

What: 15-second commercial in 75 theatres in hot markets. How Many: 55,000,000 impressions How Much: $1,100,000

the color of their clothing onto the display. How Many: 378,000,000 impressions How Much: $650,000

Added Value - Media Banners

What: Banner ads on websites of purchased media (Academy Awards, Olympics, network and cable television channels, and magazines). Why: Ads will increase reach by 10%. How Many: 249,600,000 impressions How Much: Free as bonus weight.

Considered, But Not Recommended What: Radio Interactive Transparent Mall Display What: 15 interactive transparent mall displays in hot markets. Why: Transparent displays allow

Why: The campaign is visually driven. What: Newspaper

Why: Daily readership is below average for Transitioners and the jcpenney insert program covers the newspaper category.

shoppers to incorporate themselves into the advertisement, which helps generate buzz. How Many: 378,000,000 impressions How Much: $650,000

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Earned Media makes jcpenney a part of the consumer conversation.

Objectives

110th Anniversary Guerrilla RV Event

Olympics “Summer Star” Contest

Beginning April 14, 2012, jcpenney will tour in the “Miles

Women will be asked to submit a 60-second video to be

of Style” RV to the hot spot markets. Once there, a

in the next jcpenney television commercial. The winner

team of jcpenney employees will provide makeovers to

will be featured in the summer Olympics commericals

jcpenney customers. Destinations will remain a secret

and will receive a $5,000 shopping spree.

until the day of its arrival. Locations will be announced

Why it Works:

Academy Awards Ceremony

exclusively on Twitter and Facebook. An on-going blog

Similar to the profitable and praiseworthy “Real Women

on Tumblr will chronicle the event.

of Dove” campaign, this approach breaks from the

Prior to the Academy Awards, simultaneous fashion

Why it Works:

category tradition by asking real women instead of

Create buzz for jcpenney campaign and support the seasonal events

Create events to reach Transitioners

Build an active community of jcpenney followers

Build on existing jcpenney causes

Events

How it Works:

shows outside jcpenney stores break out in a flash

How it Works:

These events are attention-grabbing and will create

How it Works:

models to try out for a national commercial.

a community of jcpenney

mob style. Videos of each market will be immediately

followers.

uploaded to YouTube.

Holiday Sales Event: “Monday Before” How it Works:

Why it Works:

jcpenney preempts the holiday shopping season the

The fashion shows will generate buzz for the Academy

Monday before Black Friday by launching “Monday

Awards telecast and alert shoppers of the “red carpet

Before,” a special event in which jcpenney Facebook

ready” looks available at jcpenney.

fans receive push discounts as deep as Black Friday’s. Why it Works: It will differentiate jcpenney from other retailers by Sales Event: “World’s Biggest BOGO”

offering a specialized savings day.

How it Works:

In honor of jcpenney’s 110th anniversary, every Tuesday in April shoppers who spend $110 or more will receive $110 worth of jcpenney store credit. Why it Works: Tuesday is the slowest day for retail sales and BOGO (buy one, get one) events have proven successful for similar retailers.

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Media Partnerships

Merchandise Partnerships

Brand Partnerships

How it Works:

How it Works

How it Works:

Match.com and eHarmony

Elie Saab

Co-Branded Credit Card: Visa

A “personal stylist” smartphone application will be

jcpenney will offer an exclusive line of Elie Saab fashion

jcpenney will partner with Visa to create a jcpenney/Visa

featured on Match.com and eHarmony that Transitioners

merchandise.

credit card that can be used anywhere. Cardholders

can use for assistance in selecting the “perfect outfit.”

Why it Works

will earn points for all purchases and bonus points for

Saab is a highly regarded fashion designer and has

purchases made exclusively at jcpenney.

Similar to other fashion applications, this promotion will

dressed high-profile celebrities, such as Beyoncé, Halle

Why it Works:

build buzz amongst the “Me’s.”

Berry and Angelina Jolie, who appeal to Transitioners.

Like Amazon and Target, co-branded cards have

Great Bridal Expo

Anne Hathaway

To extend the media purchase targeted to “We’s”, a

Create a partnership with Anne Hathaway to design an

co-sponsored booth with Modern Bride will feature

exclusive line of clothing and housewares.

literature about jcpenney’s bridal registry merchandise

Why it Works

at the Great Bridal Expo touring tradeshow.

Anne Hathaway was selected to host the 2011

Why it Works:

Academy Awards for her appeal and relevance to

The Great Bridal Expo reaches 80,000 “We’s” in hot

women in the jcpenney target audience.

Why it Works:

proven to add value, profit and customer retention. How it Works:

How it Works

markets with free additional media exposure. “Mommy Makeover” How it Works:

To extend the media purchase for the “Us’s,” a “Mommy Makeover” contest will be announced in American Baby magazine. Five winners will be selected and one will be featured each month for five months. Why it Works: Like other makeover campaigns, which generated thousands of entries, this will extend the reach of the paid media purchase.

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Owned Media allows jcpenney to directly engage with consumers by controlling the channel.

Objectives • • •

Develop ongoing mobile-rewards program to increase shopping frequency

PURL

How it Works:

by 10%.

Customized invitations containing personalized

Develop a loyalty program to increase customer shopping frequency and

URLs (PURL) will be mailed to jcpenney customers.

average ticket by 15%.

Users will be able to set up their own personalized

Increase number of jcpenney website visits by 10%.

shopping site that ties to the jcpenney rewards program.

Mobile

Why it Works:

How it Works:

PURL programs have proven to be 50% more

A smartphone application that allows Transitioners to search for and

effective than other customer retention efforts.

buy merchandise.

Cost:

Why it Works:

$3,800,000

It simplifies and customizes the Transitioners’ shopping experience.

Home

jcp.com

Select your favorite brands a.n.a. adidas adobe star aldo alfred dunner allen b alyx american living arizona bisou bisou bloni nites briggs new york corp byer california

Find my jcp Outfit

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Website

Recommended Changes: What’s Your Style?

My jcp

Users can select their style

A link directs customers to sign up

(modern, traditional, etc) to create a

for their own URL (PURL) where

customized shopping experience.

they can customize their shopping experience and receive merchandise updates.

What’s New? A feature showcases jcpenney’s fast fashion that pulls together the latest choices in one place.

Employee Favorites Associates will tweet their ‘likes’ based on merchandise in People’s StyleWatch, thus pushing and personalizing the latest looks.

Personal Shopper Users will be able to receive assistance with all matters pertaining to jcpenney and fashion. Live chat allows users to create a personal connection with jcpenney.

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In today’s retail environment, customers expect a highly personalized and integrated cross-channel brand experience. Every touchpoint has been mapped to provide Transitioners a highly customized and enjoyable shopping experience in order to maximize share of wallet for jcpenney.

Entering

How it Works:

Bag Expression

An interactive kiosk provides shoppers

How it Works:

the ability to navigate through the store

Reusable shopping bags will be sold to

on an electronic map and schedule salon or portrait studio appointments. Why it Works:

shoppers at a discount. Proceeds will be directed to a jcpenney charity of the

Discover.

customer’s choice.

This allows shoppers to quickly find what

Why it Works:

they want.

Reach.

It extends the campaign and creates positive buzz.

$19.99

Fashion Presentation

In-Store Expression

Black plastic mannequins and

Three dimensional jcpenney posters

branded price tags will emphasize

will be placed throughout the store.

How it Works:

How it Works:

jcpenney’s contemporary fashions.

Why it Works:

Why it Works:

This reinforces the campaign benefits

They better sell merchandise and

and links jcpenney with its exclusive

complement the campaign.

power brands.

Ce

leb

rat

e er

cov

Dis

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Express and Share How it Works:

Virtual Fitting

A photo booth enables shoppers

How it Works:

to take pictures of their looks and

Digital gesture recognition technology will be used to

share them with friends via social

display virtual outfits on customers.

media or e-mail.

Why it Works:

Why it Works:

This will encourage shoppers to try new styles and

This provides instant approval of

make additional purchases.

one’s friends, which is important when making purchasing

y

n

decisions.

Personal Touch Black Enamel Necklace Liz Claiborne $22

exit

How it Works:

The “I Make My jcpenney G.R.E.A.T.” program allows associates to personalize their work environment and share information. Why it Works:

Recommendations Based on Items You Like

Celebrate

This builds on the current jcpenney G.R.E.A.T. program used to motivate

Discover

associates. Crystal Accent Watch Bulova $53

Ruffle Silk Top Worthington $20

Sequenced Black Dress Bisou Bisou $40

Black Leather Pumps Aldo $49

Beige Leather Purse Mango $99

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February 2012

March

April

May

June

July

August

September

October

November

December

January 2013

Annual Sales Percentage (%)

7.2

7.9

7.7

8.4

7.7

7.4

8

7

7.5

10.1

14.7

6.4

Seasonal

Academy Awards

Holidays

Valentine's Day

Mother's Day

Father's Day

Independence Day

Weeks

6

13

20

27

jcpenney 110th Anniversary

5

12

19

26

2

9

16

23

Olympics / Back to School

30

7

14

21

28

4

11

18

25

2

9

16

23

30

Holiday Season Labor Day

6

13

20

27

3

10

17

Thanksgiving 24

1

8

15

22

29

5

12

19

26

Total

Impressions

Cost ($)

Christmas 3

10

17

24

31

7

14

21

28

Paid Media Print: Full-Page, 4-color 10 Magazines

361,000,000

13,700,000 29,200,000

Television: 15-second 5 Networks

890,000,000

Summer Olympics

280,000,000

7,000,000

Academy Awards

250,000,000

7,000,000

715,000,000

14,900,000

Cable: 15-second 6 Cable Networks Outdoor: Hot Spot Markets 80,000,000

3,900,000

Color-sensitive Digital Mall Display

25 GRP Outdoor Boards

378,000,000

650,000

Interactive Transparent Mall Display

378,000,000

650,000

Search Engine Marketing

480,000,000

1,500,000

Dating Website Rollover Banners

200,000,000

3,000,000

Video Website Pre-roll

9,000,000

1,100,000

Added Value - Media Banners

249,600,000 **

Digital

Cinema: Hot Spot Markets 15-second in 75 Theaters

55,000,000

1,100,000

Earned Media Promotional Events Great Bridal Expo

500,000 *

"Mommy Makeover"

200,000 *

Guerrilla "Miles of Style" RV Tour

1,700,000 *

Academy Awards Ceremony

1,700,000 *

Charity Reusable Bags

3,800,000 *

Olympics "Summer Star" Contest

20,000,000 *

Social Media

Owned Media Digital jcpenney Website

15,500,000 ***

Personal URL (Direct Mail)

3,800,000

Smartphone Application In-store

* 4,373,100,000

* ** ***

3,800,000

300,000 *

Funded by a separate jcpenney budget. Will be added as bonus weight with paid media. Covered under IT.

$87,500,000

6840 GRP Annual: 95% Reach/ 72 average frequency Monthly: 95% Reach/6 average frequency

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$100 Million Total Budget

Return on Investment By reaching 90% of Transitioners with a compelling

Academy Awards

message, at least half the audience should consider shopping at jcpenney. If only 13% of those who are

Paid Media

aware of the advertising become regular jcpenney

Summer Olympics

shoppers, an additional $948 million of annual revenue will be generated. This, coupled with a 15% increase in

Agency Fee

existing jcpenney shopper’s sales of $270 million, will yield a total of $1,218 million in additional annual sales. The result is $12 of revenue for every $1 spent on advertising.*

Local

Direct Mail (PURL)

Budget The $7.5 million agency fee is an estimate of the hours it will take to provide jcpenney with a dedicated team

Contingency

Digital Network Television

of management, planning, creative, media, production, traffic, social media, public relations and digital development. This fee returns $7.5 million to jcpenney to either add to the budget or to take to the bottom line. Cougar Concepts considers itself a partner with jcpenney and intends to provide high-caliber service

Magazine

that yields results. Because of this, Cougar Concepts proposes that the compensation be fee-based rather than commission-based. Cable Television

*See appendix for details

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Campaign Evaluation

Future Thoughts

Final Thoughts

Cougar Concepts will measure the effectiveness of the

This campaign sets into motion a self-expression

Cougar Concepts discovered that the jcpenney brand

campaign through:

movement that will pave the way for jcpenney to reach

is not just in the department store business, but in

A post-wave to the benchmark awareness, attitude

the 2014 goal of becoming one of America’s favorite

the self-expression business as well. By releasing the

and usage study

retailers.

benefits that jcpenney has hidden in plain sight, Cougar

The number of impressions in the connection

Concepts can re-connect the jcpenney brand with

schedule

today’s Transitioners. That is exactly what this campaign

The response to the PURL program

has been designed to accomplish; it is an insight-based

The number of fans generated by social media on

and fully integrated campaign that builds on the equity

Facebook and Twitter, and other digital applications

of the jcpenney brand.

Cougar Concepts asks you to provide measures of:

Cougar Concepts is confident that this plan will not only

Overall sales for the target

meet your objectives, but exceed them.

Comparable store sales of the system and the hot markets

Retention and sales from the PURL program

New credit card holders

Associate satisfaction of the overall program

The campaign will be adjusted based on market and

Thank you. When can we start?

jcpenney authorization

media dynamics.

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Online Articles 
AARPWashington. “ YouTube - MXYPLYZYK Store Tour .” YouTube - Broadcast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/watch?v=sjbjuFQ64-g>. AARPWashington. “ YouTube - Paco Underhill on Channel 2 Israel March 2007 .” YouTube - Broad cast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/ watch?v=xvJWRUBJNGI>. Adology. Sales Development Services, Inc., n.d. Web. 5 Mar 2011. <http://www.ad-ology.com/>. “American Baby Media Kit.” Meredith. Meredith Corporation, n.d. Web. 8 Mar 2011. <http://www. meredith.com/mediakit/ab/print/abmk_rts.html>. “America’s Families and Living Arrangements: 2010.” U.S. Census Bureau. U.S. Department of Commerce, n.d. Web. 5 Mar 2011. <http://www.census.gov/population/www/ socdemo/hh-fam/cps2010.html>. “America’s Shopping Destination for Discovering Great Styles at Compelling Prices .” jcpenney.net. jcpenny, n.d. Web. 3 Mar 2011. <http://www.jcpenney.net/about/jcp/default.aspx>. “CAC Research.” Cinema ad Council. Cinema Advertising Council, 2010. Web. 8 Mar 2011. <http:// www.cinemaadcouncil.org/cac_researchMain.php>. “Calculated estimated U.S. population of males and females with Fabry disease.” The National Fabry Disease Foundation. The National Fabry Disease Foundation, n.d. Web. 5 Mar 2011. <http://www.thenfdf.org/wsc_content/pics/user_upload/Fabry%20population.pdf>. Cardon, Mercedes. “Dollar Stores are Taking Walmart’s Lunch Money.” Daily Finance. AOL, 4 Dec 2010. Web. 4 Mar 2011. <http://www.dailyfinance.com/story/company-news/dollar- stores-walmart-customers-market-share-competition/19740366/>. Chang, Andrea. “Kohl’s is fitting in with the new frugality.” articles.latimes.com. Los Angeles Times, 30 Jan 2010. Web. 24 Feb 2011. <http://articles.latimes.com/2010/jan/30/business/ la-fi-kohls30-2010jan30/3>.

Gill, Cassandra. “The Colours of the Top 100 Web Brands.” Truly Deeply. Truly Deeply, 04 Feb 2011. Web. 5 Mar 2011. <http://www.trulydeeply.com.au/madly/2011/02/04/the-colours-of- the-top-100-web-brands/>. “Green Rankings: U.S. Companies.” www.newsweek.com. newsweek, 18 Oct 2010. Web. 15 Jan 2011. <http://www.newsweek.com/2010/10/18/green-rankings-us-companies.html>. “HFMUS.” ELLE Rates. HFM U.S. , 2011. Web. 8 Mar 2011. <http://www.hfmus.com/hfmus/media_ kits/fashion_beauty_design/elle/magazine_advertising/rates>.

Hiestand, Micheal. “An Olympic ratings analysis.” USATODAY. USATODAY, 8/24/2008. Web. 1 Mar 2011. <http://www.usatoday.com/sports/columnist/hiestand-tv/2008-08-24-olympics- ratings_N.htm>.

“Cosmopolitan Media Kit.” 2011 Advertising Rates. The Hearst Corporation, 01/01/2011. Web. 8 Mar 2011. <http://www.cosmomediakit.com/r5/showkiosk. asp?listing_id=3903638&category_code=rate&category_id=27809>. “Database Search UH Libraries.” Database Search. The University of Houston, 2010. Web. 8 Mar 2011. <http://info.lib.uh.edu/edbs/search/srds>. “Department Stores Industry Research in the US.” IBISWorld. IBISWorld, 07 Dec 2010. Web. 4 Mar 2011. <http://www.ibisworld.com/industry/default.aspx?indid=1090>. “eHarmony Media - Advertising Information.” eHarmony. eHarmony, Inc., 2010. Web. 8 Mar 2011. <http://www.eharmony.com/advertising>. envirosell. “ YouTube - Doug Miles interviews author Paco Underhill.wmv .” YouTube - Broadcast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/ watch?v=IHADYEaQ8A8>.

riversharkinc. “ YouTube - Paco Underhill - Brasilshop 2008 .” YouTube - Broadcast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/watch?v=xaRsmhP0dtM>. “Shopping Survey.” SurveyMonkey. SurveyMonkey, 20 Sep 2010. Web. 5 Mar 2011. <http:// surveymonkey.com/shopping_sur>. “Site Comparison of jcpenney.com (rank#46), macys.com (rank#82).” Compete. Compete, Inc., 2011. Web. 8 Mar 2011. <http://siteanalytics.compete.com/jcpenney.com+macys. com/>.

“How to Price Vinyl Banners.” Airpark Banner & Signs. N.p., 2006. Web. 15 Feb 2011. <http://www. airparksign.com/banners/how-to-price-vinyl>.

“The Parenting Group Media Kits/Parenting/Parenting early Years/Rates, Closing dates, Rates.” The Parenting Group. The Parenting Group, Inc., 2010. Web. 8 Mar 2011. <http://www.theparentinggroupmediakit.com/p_early_rates.php>.

“Hulu - About.” Ad Specs. Hulu, 2011. Web. 8 Mar 2011. <http://www.hulu.com/about/advertising/ adspecs>.

“Wedding DJ Cost.” CostHelper. N.p., July 2007. Web. 15 Feb 2011. <http://www.costhelper.com/ cost/wedding/wedding-dj.html>.

“InStyle Media Kit l InStyle l General Ad Rates.” InStyle. Time, Inc., 2011. Web. 8 Mar 2011. <http:// www.instyle.com/instyle/static/advertising/mediakit/instyle/generalad.html>.

“World’s Most Admired Companies.” Fortune. CNN Money, 22 Mar 2010. Web. 4 Mar 2011. <http:// money.cnn.com/magazines/fortune/mostadmired/2010/full_list/>.

“Investor Overview.” investor.shareholder.com. Dillard’s, 03 Mar 2011. Web. 4 Mar 2011. <http:// investor.shareholder.com/dillards/?splashlink=footer_investor>.

“YouTube - Audience & Targeting.” YouTube Advertising. YouTube, 2009. Web. 8 Mar 2011. <http:// www.youtube.com/t/advertising_targeting>.

jbatistaj2. “ YouTube - Money$marts - Paco Underhill Feature .” YouTube - Broadcast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/watch?v=RghUwYUHDUA>.

Articles “ELIE SAAB popularity and ELIE SAAB trends.” Marshall IDX. Marshall Index Corporation, 08 mar 2011. Web. 8 Mar 2011.

“Marie Claire Media Kit.” Media Rates. Hearst Corporation, 2011. Web. 8 Mar 2011. <http://www. marieclairemk.com/r5/showkiosk.asp?listing_id=3866738&category_id=19147>. “Match.com MediaRoom-Media Kit.” Match. Match.com, L.L.C., 2008. Web. 8 Mar 2011. <http:// match.mediaroom.com/index.php?s=23>.

Holmes, Elizabeth. “Fashion Week Tips Hat to Blog Site.” Wall Street Journal 9 Feb 2011: B8. Print. 
 

 Kelley, Larry, and Donald Jugenheimer. Advertising Media Workbook and Sourcebook. 2nd ed. Armonk, New York: M.E. Sharpe, Inc., 2008. 110-14. Print.

“MEDIAKIT.” Condé Nast. Condé Nast, 09/20/2010. Web. 8 Mar 2011. <http://www. condenastmediakit.com/gla/genrates.cfm>.

Pegler, Martin M.. Visual merchandising and display . 5th ed. New York: Fairchild Publications, 2006. Print.

“MEDIAKIT.” Condé Nast. Condé Nast, 09/20/2010. Web. 8 Mar 2011. <http://www. condenastmediakit.com/vog/genrates.cfm>.

Schechner, Sam, and Ethan Smith. “Oscar Show Aims at More, Younger Fans.” Wall Street Journal 24 February 2011: B8. Print.

“Media Planning Guide.” Clear Channel Outdoor. Clear Channel Outdoor, Inc., 2010. Web. 8 Mar 2011. <http://www.clearchanneloutdoor.com/resources/sales-and-marketing/media- planning-guide/>.

How Cougar Concepts Got The Numbers Based on jcpenney annual report, the total revenue for 2009 was $17.6 billion. Based on the case study, jcpenney reports 31.3 million customers.

“Movable Tower Light.” Alibaba.com. N.p., 2011. Web. 15 Feb 2011. <http://www.alibaba.com/ showroom/movable-tower-light.html>.

$17,556 billion/31.3 million customers= $561 per customer. Based on the case study, 25-34-year-olds represent 10.6% of jcpenney sales, or $1,861 million. Based on the case study, there are 3.8 million jcpenney customers ages 25-34.

“Color Sensitive Interactive Billboard.” Vimeo. Web. 14 Mar 2011. <http://vimeo.com/10695851>. “Corporate Overview.” Target. Target, n.d. Web. 4 Mar 2011. <http://investors.target.com/phoenix. zhtml?c=65828&p=irol-homeProfile>.

“Rates, Dates & Specs.” People StyleWatch. Time Inc., 2011. Web. 8 Mar 2011. <http://www.people. com/people/static/stylewatchmediakit/rates.html>.

Neely, Brett. “J.C. Penney To Close Catalog Business, Outlets.” National Public Radio. National Public Radio, 25 Jan 2011. Web. 5 Mar 2011. <http://www.npr. org/2011/01/25/133200323/j-c-penney-to-close-catalog-business-outlets>. “Online Advertising by Google.” Google AdWords. Google, 2011. Web. 8 Mar 2011. <https://www. google.com/accounts/ServiceLogin?service=adwords&hl=en&ltmpl=adwords&passi ve=true&ifr=false&alwf=true&continue=https://adwords.google.com/um/gaiaauth?ap t%3DNone%26ugl%3Dtrue>.

Fitzgerald, Drew. “JC Penney Installs Touchscreen Interfaces At 120 Stores.” The Wall Street Journal. Dow Jones & Company, Inc., 07 Feb 2011. Web. 5 Mar 2011. <http://online.wsj.com/ article/BT-CO-20110207-709205.html>.

“Press Releases.” kohlscorporation.com. Kohl’s, 01 Mar 2011. Web. 4 Mar 2011. <http://www. kohlscorporation.com/InvestorRelations/press.htm>.

floralparkkid. “ YouTube - Paco Underhill in Ruse, Bulgaria_6 .” YouTube - Broadcast Yourself. . N.p., n.d. Web. 7 Mar. 2011. <http://www.youtube.com/watch?v=Tiijm2NDWj4>.

“Profit Rises for J.C. Penney, but Discounts Are a Concern.” New York Times (2010): n. pag. Web. 3 Mar 2011. <http://www.nytimes.com/2010/11/13/business/13shop.html?_r=2>.

“Focus Groups.” University of Wisconsin-Extension. Downtown and Business District Market Analysis, n.d. Web. 4 Mar 2011. <http://www.uwex.edu/ces/cced/downtowns/dma/7. cfm>.

“PSFK presents Future of Retail report.” Upload & Share PowerPoint presentations and documents. N.p., n.d. Web. 1 Feb. 2011. <http://www.slideshare.net/PSFK/psfk-presents-future- of-retail-report>.

$1,861 million/3.8 million= $489 per customer. If Cougar Concepts moves sales from 10.6% to 16% of jcpenney total sales; that is $2,809 million or $948 million incremental. This is an increase of 51%. It would be adding an additional 1.938 million customers at $489 per customer, which will yield $948 million. Note that this is not increasing the current average revenue per customer. If Cougar Concepts increases the average revenue per customer to $560, the new incremental revenue would be $1,085.280 million. If current sales are moved from $489 to $560 per customer, there would be an incremental gain of 15%, or $71 x 3.8 million= $270 million.

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Account Director Traffic Director

Plans Book Art Director

Plans Book Editor

Account Planning

Brittany Rodriguez Matthew Martinez Gabrielle Nguyen Jaime Alvizar Randy Cantu Henry Lee Ngoc Nguyen

Creative

Ambreen Salim Whitney Grohman Kristin Bird Katie Hartshorn Courtney Kaminski

Media

Scott Gilbert Esteban Bazan Jeanette Esquivel Mike Le

Public Relations

Kelly Rizzo Alex Benitez Rhonda Vaca

In-Store

Advisors

Stephanie Villacorta Larry Kelley Rosario Laudicina

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Diamond Donations Friends of University of Houston Advertising University of Houston Lopez Negrete Communications, Inc. Western Litho

Silver Donations Beatrice Houng Le Pham Frank Hill Corrence Rizzo Lorenzo Diaz Sharon Edwards

Platinum Donations Advertising Education Foundation American Advertising Federation - UH

Ronnie Cantu Ricardo and Joanna Zapata Ad 2 Houston

Kelsey Edwards FKM Advertising Agency Peregrine Oil & Gas II, LLC

Bronze Donations Hanh Nguyen Schneider & McKinney, P.C.

Gold Donations Erin and Robert Steele Maria Vaca

Jose and Belen Vara Emilio Rodriguez Ronald and Roberta Brightwell Frank Rodriguez Imelda Bazan Yamaha Motorsports Jesus Dela Fuente Do Le

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