JC Penney Brand Re-Launch - Mikaela Yeager

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1 REBRANDING PROPOSAL | PHASE 1 CLIENT: JCPENNEY STEP 1: DEEP DIVE BACKGROUND Founded in 1902, JCPenney Co. Inc. is one of the nation’s largest apparel and home furnishing retailers. Along with merchandise, the company’s more than 1,000 department stores provide customers with services such as beauty salons, optical departments, portrait photography studios, in-home custom decorating sessions, and beauty products from its store-within-a-store partner, Sephora. RISE OF THE DOWNWARD SPIRAL Like all businesses aiming to make a profit, JCPenney faced the challenge of meeting sales numbers during the Great Recession that shook the U.S. economy from late-2007–mid-2009. However, unlike its competitors, JCPenney did not take appropriate action and found itself struggling to keep its head above water. In fall 2011, JCPenney hired retail savant Ron Johnson as its new CEO in hopes he would breathe new life into the stagnant brick-and-mortar department store and achieve similar levels of success as he did for his predecessors, Target and Apple. But Johnson’s tenure at the top of JCPenney was anything but successful. Within 16 months under his leadership, the company’s stock had plummeted nearly 50 percent, 19,000 employees had lost their jobs, and sales had fallen by more than 25 percent—an almost unheard of slide for a major retailer (D Magazine, 2013). A combination of mistakes on Johnson’s end led to this downward spiral. First, Johnson moved too quickly. By early 2012, JCPenney’s implemented the new CEO’s idea to offer “fair and square” pricing, in which original prices started at least 40 percent lower to begin with, to replace the “fake prices” the company used for decades (Tuttle, 2013). But by listing realistic prices, discontinuing coupons and banishing the words “sales” and “clearance” from its ad campaigns and in-store displays, Johnson left customers feeling stripped of receiving

Transcript of JC Penney Brand Re-Launch - Mikaela Yeager

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REBRANDING PROPOSAL | PHASE 1

CLIENT: JCPENNEY

STEP 1: DEEP DIVE

BACKGROUND

Founded in 1902, JCPenney Co. Inc. is one of the nation’s largest apparel and home furnishing retailers. Along with merchandise, the company’s more than 1,000 department stores provide customers with services such as beauty salons, optical departments, portrait photography studios, in-home custom decorating sessions, and beauty products from its store-within-a-store partner, Sephora.

RISE OF THE DOWNWARD SPIRAL

Like all businesses aiming to make a profit, JCPenney faced the challenge of meeting sales numbers during the Great Recession that shook the U.S. economy from late-2007–mid-2009. However, unlike its competitors, JCPenney did not take appropriate action and found itself struggling to keep its head above water.

In fall 2011, JCPenney hired retail savant Ron Johnson as its new CEO in hopes he would breathe new life into the stagnant brick-and-mortar department store and achieve similar levels of success as he did for his predecessors, Target and Apple. But Johnson’s tenure at the top of JCPenney was anything but successful. Within 16 months under his leadership, the company’s stock had plummeted nearly 50 percent, 19,000 employees had lost their jobs, and sales had fallen by more than 25 percent—an almost unheard of slide for a major retailer (D Magazine, 2013). A combination of mistakes on Johnson’s end led to this downward spiral.

First, Johnson moved too quickly. By early 2012, JCPenney’s implemented the new CEO’s idea to offer “fair and square” pricing, in which original prices started at least 40 percent lower to begin with, to replace the “fake prices” the company used for decades (Tuttle, 2013). But by listing realistic prices, discontinuing coupons and banishing the words “sales” and “clearance” from its ad campaigns and in-store displays, Johnson left customers feeling stripped of receiving

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the deals they’d long cherished and eventually drove them away. Perhaps the sizable collapse in sales could have been prevented had Johnson dedicated some time to understanding JCPenney’s long-standing customers who are drawn to price markdowns and get a thrill out of bargain shopping

On top of failing to acknowledge the preferences of JCPenney shoppers, Johnson also misread the company’s brand as a whole. His vision featured trendier brands, coffee and juice bars and a more intimate boutique-like shopping experience to replace their standard rows of overcrowded clothing racks. He quickly revamped the home goods sections by forming partnerships between JCPenney and higher-end home décor retailers like Martha Stewart and Michael Graves and fashionable apparel and accessories from designers like Joe Fresh and Nanette Lepore.

However, reverting back to traditional JCPenney customers—lower- and middle-income families that are accustomed to shopping for discounts—made the idea of saturating stores with boutiques that didn’t want their brands diluted by discount pricing even more challenging to carry out, and sales continued to plummet.

In the midst of the chaos, Johnson spearheaded a brand refresh that included a new logo and ad campaign that reflected his new “fair and square” pricing strategy. The new logo came just one year after JCPenney remodeled its look under Mike Ullman, JCPenney’s former CEO of seven years.

The “fair and square” TV ads were colorful and reminiscent of Target, with a touch of Apple whimsicality. One ad featured a dog jumping through a hula-hoop held up by a cute little girl. A message streamed across the screen that said: "No more jumping through hoops. No coupon clipping. No door busting. Just great prices from the start. That’s fair and square.” A series of

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TV ads starring comedian and newly named JCPenney spokeswoman Ellen DeGeneres also aired during the 2012 Oscars.

Despite his attempts, Johnson’s strategies weren’t working, and by the time he caught on and accepted that JCPenney’s customers were not who he wanted them to be (more upscale, Apple consumers who don’t expect discounts), it was too late to make a turnaround. The JCPenney identity was in a state of turmoil. Even after reintroducing markdowns, sales continued to fall, and Johnson was ousted in April 2013. Ullman returned as interim CEO, and the company began to bring back its old-fashioned pricing strategy.

REINVENTING THE BRAND

Over the last two years, JCPenney has been working to rebuild its identity and regain momentum in the marketplace, but the progress is slow-coming. While the company restored sales growth last year, its stock remains down more than 71 percent from when Johnson took the helm in 2011 (Townsend, 2015). Additionally, at the start of 2014, JCPenney announced 33 store closings, leading to the loss of about 2,000 jobs. As of November, the company had 1,095 department stores, down slightly from past years (Hess & McIntyre, 2014).

One of the first steps JCPenney took was apologizing to consumers for the dismay of the last year-and-a-half via a TV spot that aired around Mother’s Day 2013. Next, the company restored—in full force—its frequent sales, discounts and coupons; it brought back many of the traditional JCPenney clothing brands Johnson dumped; and it started rebuilding its home business by offering more lower-priced items and in-house brands.

Another almost instantaneous change was reinstating the “pre-Ron Johnson era” logo in an attempt to signal its return to the company's traditional values and reassure shoppers it’s safe to come back (Rashall, 2013). (See display of JCPenney’s recent logo evolution on the following page) Perhaps the main message JCPenney is aiming to get across is that its brand has evolved in recent years, but it still holds on tightly to the core of its 113-year-old identity.

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JCPENNEY LOGOS FROM 2006–PRESENT

Additionally, JCPenney has relinquished a number of taglines over the years, including: "It's All Inside," "Every Day Matters," "New look. New day. Who knew!" and "We make it affordable. You make it yours."

The current tagline, “When it fits, you feel it,” went into effect in February 2014 and triggered a series of TV spots, many of which premiered during major broadcast events like the Winter Olympics and the Oscars. “From a branding perspective, our new tagline celebrates the emotion that comes from finding the perfect fit, underscoring our commitment to deliver the sizes, brands, styles and prices that fit the real life needs of our customers,” said a JCPenney spokesperson (Mahoney, 2014). Many of the ads also feature exclusive discounts and sales that stream across the television screen.

2012 Redesigned under

Ron Johnson to reflect “fair and square” pricing

2006–2008

2011–2012 Bringing the red

square back

2008–2011

2013–Present Renews old logo

2013–Present: Social Media

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“WHEN IT FITS YOU FEEL IT” TV ADS

More recently, the “When it fits you feel it” TV spots have heavily targeted women, ages 25–45. They are upbeat, free-spirited and aim to empower women and self-expression.

Back-to-School Ad, July 2014

JCP Home Collections Ad, March 2014

“Trend Anthem” Ad March 2015

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ONLINE & MOBILE ENGAGEMENT

JCPenney is also focusing more on digital, social, mobile and paid search advertising. The company’s 2014 holiday campaign “Just Got Jingled,” which featured videos of customers receiving surprise gifts from strangers in stores, generated 3 million views on Twitter. Nine out of 10 impressions were unpaid, organic tweets viewed by users without the promoted tag, so the total cost for the campaign was a mere $120,000, which equates to just 4 cents per ad (Sloane, 2015).

In spring 2014, JCPenney Optical wanted to increase its in-store sales and brand awareness. To achieve this, the brand ran Lightbox Ads and YouTube TrueView ads across the Google Display Network to reach a broad yet targeted audience. To help boost its mobile presence, it adjusted bids to ensure that ads were prominently featured on mobile devices. All in all, its efforts resulted in an 830 percent increase in online exposure and a 285 percent rise in conversions (THINK Newsletter, 2014).

Last July, JCPenney targeted kids and their moms in a multi-pronged back-to-school campaign. It kicked off with two television spots, “Stand Out” and “My Fit,” as well as a Hispanic marketing spot apart from an interactive digital campaign on its online microsite called “Express Yourselfie” and a campaign targeting the moms called “That’s My Kid.” The “Express Yourselfie” allowed users to create customized emojis from uploading their personal selfies. They could pick customized accessories, hairstyles, and facial expressions to match their own personal style. After creating their emoji, users could enter a sweepstakes to instantly win an e-gift card and were then re-directed to shopping suggestions through JCPenney based on their personal style (Dua, 2014).

JCPenney currently has 4.7 million followers on Facebook (JCPenney Facebook page, 2015) and 374,000 followers on Twitter (JCPenney Twitter page, 2015). The brand utilizes these pages daily to communicate important information about the company, new brands and services, trends, new marketing campaigns, and contests. With Mother’s Day around the corner, the company is currently

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pushing its # IGotItFromMyMama and # JCPSketchMe hashtags, which encourages followers to tag a photo of themselves with their mothers and tell how their looks were influenced by them. JCPenney will then randomly select photos to sketch and include in its new spring lookbook.

JCPenney is also driving growth with the launch of its “Find It, Keep It” iPhone app in 2014 (JCPenney, 2015). The new and improved shopping app lets customers navigate jcpenney.com with ease. Customers shopping inside a JCPenney store find it useful for locating coupons and applying them at the register. The app also enables users to scan an item’s barcode to access product information and customer reviews, as well as determine its availability online or at nearby stores.

Above: A @jcpenney Twitter follower tweets a photo of herself and her mother; Right: The current lookbook features women who have submitted individual photos of themselves, which JCPenney has re-sketched and then made recommendations of which of its store-brand apparel can be used to recreate the look.

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REWARDS & PERKS

Shoppers who sign up for a JCPenney credit card can earn $10 in rewards for every 100 points earned in store and at jcp.com—up to 10 each month when you use your JCPenney Credit Card (JCPenny, 2015). Every dollar spent is equivalent to one point. Three levels of credit cards are offered—standard, gold, and platinum. Shoppers receive more perks the higher the level, such as special discounts, sales and coupons, birthday gifts, and free shipping.

All in all, JCPenney is currently focused on repositioning its brand to fit the mold of what long-time JCPenney shoppers knew it to be—a discount/affordable apparel and home goods department store—and coupling that identity with a more trendy and chic image.

COMPETITOR ANALYSIS

Even before the Johnson era, JCPenney, though profitable, was losing ground to primary competitors like Macy’s and Kohl’s, and Target also became a threat. Now, in the midst of its turnaround, the company is not only fighting for its place in the market; it’s also fighting to bring back the customers who shifted their business to these competitors in recent years.

Macy’s, established in 1858, is an American department store chain/retailing brand with about 800 stores operating coast-to-coast with its flagship store in Herald Square, New York City (Macy’s Inc., 2015). It positions itself in the market as a modestly upscale, fashion-forward company that offers a powerful assortment of both high-end and affordable merchandise and brands. Macy’s ads primarily target stylish men and women ages 25–45 and tend to be hard-hitting with sales promotions and discounts.

Since 1924, Macy’s has sponsored the annual Macy's Thanksgiving Day Parade in New York City. Other special events include Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging

from the arrival of Santa Claus to tree lightings and animated window displays.

Macy’s also differentiates itself from other major retailers through its strategy of focusing on the customer experience. The strategy, dubbed “MOMM,” rolled

Fall 2014 Macy’s ad.

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out around 2008. The first part is My Macy’s, the brand’s localization effort. Groups of individuals living in cities across the country are designated as local experts responsible for determining the wants and needs of consumers in individual markets (Touryalai, 2013). By supplying stores with the specific shoe sizes, appliances, pant styles, etc. that local shoppers are requesting, Macy’s can sell these items before having to mark them down for clearance.

The “O” stands for “Omnichannel,” which essentially gives customers access to Macy’s inventory through several channels. For example, if a customer finds a dress but the store is out of her size, a sales associate can search the company’s online inventory or that of other area stores to find and deliver the appropriate size to the customer. The second-to-last “M” is for “MAGIC Selling,” and happens at the point-of-sale. Employees use this process to “Meet and make a connection;” “Ask questions and listen;” “Give options and advice;” “Inspire to buy;” and “Celebrate the purchase.” The last “M” is for “Millennial,” and represents the special attention Macy’s gives to consumers who are 13–30 years old.

Macy’s is prevalent on Facebook, Twitter, Instagram, Pinterest, and YouTube. The brand also has its own mobile app and blog, “M-Blog,” where consumers can view the latest trends in fashion, beauty, home and more. In 2008, the company launched macysgreenliving.com to highlight the work the retailer has accomplished to reduce its carbon footprint and become a leader in sustainability and corporate social responsibility. Macy's Backstage Pass is a mobile initiative launched in 2011 that delivers timely beauty and fashion tips from some of the world's top designers right to customers’ phones.

In an effort to attract a new customer segment, Macy’s announced in February that its priority for 2015 will be on piloting a chain of “off-price” discount stores that will pit it against the likes of T.J. Maxx and Marshall’s stores. Off-price is an area of retail that has boomed as shoppers gravitate toward designer brands at big discounts to department store prices ((Wahba, 2015).

Macy’s shows its commitment to giving back to communities and non-profit organizations like United Way, Make-A-Wish, and American Red Cross. The company’s annual charity shopping day, “Shop for a Cause”, has raised more than $48 million since 2006 (Macy’s Inc, 2015). Currently, the company is holding the “Thank-A-Mom” digital campaign that invites customers to post a mom throwback picture on Instagram, Twitter or Tumblr with #MacysLovesMoms to help support mom-approved charities. The company also celebrates cultural diversity and heritage with a series of month-long initiatives and special in-store events aimed at recognizing diverse groups and communities. (Macy’s Inc., 2015).

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Kohl’s has become another serious threat to JCPenney in recent years. The company, incorporated in 1993, operates about 1,160 family-oriented discount department stores in 49 states and a website (Kohls.com) that sell apparel, footwear, accessories, home products and housewares. (Yahoo! Finance, 2015). Some of the company’s in-house brands include Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Life + Style; it also carries exclusive lines such as Simply Vera Wang and Food Network. Last year, the company began to focus its advertising efforts more on its national brands, such as Nike, Izod, Levi’s, and Juicy Couture.

Kohl’s has relied on promotional plays for much of its marketing strategy, but, in spring 2014, the company shifted its position with more emotional, heartwarming messages. In the “Find Your Yes” campaign, products take a backseat to tugging on consumers’ heartstrings. One of the campaign’s TV spots is shot from the point of view of a young boy preparing to jump off a diving board. A voiceover recites, "Yes to small steps. Yes to giant leaps. Yes to big boy trunks." Presumably, the products and clothing shown in the spot can be found at Kohl's, but the emphasis is squarely on the kids' achievements and their parents' excitement.

Despite this semi-shift toward sentimental messaging, Kohl’s continues to be a leader in promotional advertising. Direct mail and other print advertisements are prevalent with coupons, exclusive savings and discounts. Kohl’s released the following ad just last month.

Kohl’s is also very competitive with its customer rewards. Anyone with a Kohl’s Charge card receives exclusive discounts and offers via direct mail coupons. With the launch of the “Find Your Yes” campaign, Kohl’s also introduced the Yes2You rewards program. Shoppers earn one point for every dollar they spend in stores or online; once they reach 100 points, they receive $5 of Rewards Cash to be used the following month. This is a five percent lower return than the JCPenney Rewards program offers.

Between the new rewards program and a heavier marketing emphasis on familiar national brands, Kohl’s stock has outpaced Macy’s this year. Total holiday-quarter same-store sales

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alone rose 3.7 percent, the biggest gain since 2010 and almost twice the 2 percent increase at Macy’s in the same period (Rupp & Lochner, 2015).

TARGET AUDIENCE

Traditionally, JCPenney’s core customer base consisted of middle-class, coupon- and sales-loving shoppers, the vast majority being female. However, since the Ron Johnson era, many of those middle-income shoppers have migrated elsewhere, causing JCPenney to broaden its target audiences.

As of spring 2013, nearly half the people shopping at JCPenney’s stores were older than 55, and 20 percent were under the age of 35 (Stock, 2013). Presumably, the remaining 30 percent of the company’s consumer base consists primarily of shoppers who fall between the ages of 35 and 55. Additionally, they are relatively price-sensitive, as 29 percent of customers make less than $35,000 a year (Stock, 2013).

The current “When it fits, you feel it” spots mainly target middle-class women (and the secondary audience of middle-aged men), ages 30–45 who lead urban lifestyles and take an interest in personal appearance and clothing trends. Other spots are more geared toward women who are mothers and homeowners, highlighting the array of affordable and contemporary home décor, furniture and tableware JCPenney offers. Lastly, the back to school spots target children, teens and parents who are seeking new clothing, shoes and accessories that are up to par in terms of style and quality but do not exceed their price point limit. All of the spots promote heavy discounts and sales, which shows the primary audience, while slightly more fashion-forward and trendy than in years past, continues to be the bargain shopper.

Ron Johnson’s stint as CEO provoked a mishmash of target audiences for the brand. JCPenney has spent the last two years striving to regain the loyalty of its traditional core customers but has also shifted its attention to younger consumers and a marginally more fashion-forward audience who is willing to pay full-price for higher-end brands like Joe Fresh, MNG by Mango, and Sephora. However, the primary target customer continues to be, according to the company’s chief marketing office in an interview in October 2014, multi-cultural with "two little kids, too little time and too little money," (Mahoney, 2014). Moving forward, JCPenney needs to continue to find unique ways to communicate with and stay in front of each of these niche demographics.

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BRAND INSIGHTS

Despite its recent struggles, JCPenney has several unique attributes that play in its favor. First, it is a well-known brand with a longstanding history. Secondly, it was a pioneer it point-of-sale marketing in retail. This strategy was fundamental in the reputation JCPenney built for being an affordable, family-friendly department store. That identity was key in the brand establishing itself as the go-to clothing retailer for back to school shopping. Families of multiple generations can share distinct memories of bargain shopping at JCPenney in the summer months leading up to the start of a new school year.

Another hugely unique attribute about JCPenney is the 1,000-page semi-annual home catalog it began distributing to customers in 1963 (Halkias, 2009). In 2009, the company discontinued phone book-sized print catalog, reporting that it was no longer a cost-effective way to communicate to customers given the rise of online shopping and the increasingly high cost of print and distribution (Halkias, 2009).

This past January, JCPenney announced it would bring back its “Big-Book” catalog after a five-year hiatus A JCPenney spokeswoman told NPR that research has shown JCPenney customers, particularly when it comes to looking at home merchandise, still prefer to browse a traditional print piece, and then go online or visit a nearby store to purchase the item(s) (Sanders, 2015). Resurrecting the print catalog, which will now take the form of a thinner, more versatile lookbook, is part of JCPenney’s omni-channel effort to drive traffic to J.C. Penney wherever that be online, via mobile or tablet, or in store.

STEP 2: BRAND REFRESH

INSIGHT & RECOMMENDATIONS

JCPenney is on the right track to regaining customer trust. Reinstating sales on its merchandise and bringing back in-house and private brands beloved of longtime JCPenney customers have proven to be effective strategies. In fall 2014, JCPenney’s gross profit margin was 36.6 percent of sales, compared to 29.5 percent a year earlier—almost back up to its historical levels (Wahba, 2014).

For three primary reasons, it is not recommended JCPenney make any changes to its logo or tagline at this time.

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1. Too much in too little time. In the last four years, JCPenney has tested out four different logos and taglines. Changing it yet again could reflect poorly on the company, suggesting to customers it is still in the midst of an identity crisis. JCPenney needs to show it understands its brand.

2. Needs more time. The new tagline only surfaced one year ago and needs more time to resonate with customers. No recent research suggests the current positioning is not on target with customers. If (and we emphasize “if”) another year of careful and aggressive marketing passes and JCPenney does not feel its new tagline is a fit, an evaluation of its effectiveness may be worthwhile.

3. Too expensive. Changing a logo and everything attached to it is not a cheap undertaking. Modifying store signage and print materials could potentially cost upwards of millions of dollars. JCPenney cannot afford such an overhaul. Moreover, the company can allocate those funds toward more essential needs, such as creating brand cohesiveness in all stores and brand training for employees.

Additionally, JCPenney has made a lot of positive changes in the last 12 months. The company has honed in on its target markets and positioned itself as a brand that holds on to its original brand promise (affordable merchandise) while also expressing how it has evolved to offer more trendy products without sacrificing that promise.

MAY Advertising suggests JCPenney continue down its current track of marketing its well-known in-house, private, and national brands, as well as it’s competitive discounts, savings and rewards offerings. The company should also continue to focus on its Home department, reiterating the message to customers that the merchandise is within their price-point.

BIG IDEA

MAY Advertising recommends JCPenney leverage the reinstitution of its renowned “Big-Book” catalog via an aggressive two-month-long advertising “Catalog Comeback” campaign. The campaign will affirm the current JCPenney brand identity as being a trustworthy, family-friendly department store committed to providing customers with stylish, quality clothing, shoes, accessories, and home goods at a bargain price. From a functional standpoint, middle- and below-average-income shoppers will be reminded of the wide assortment of the tried-and-true private and national clothing and home goods brands JCPenney offers at a comparably low price.

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The “Catalog Comeback” campaign will also reflect the brand’s organizational associations, particularly its concern for customers and its perceived quality. By enabling shoppers to hold on to a tangible piece of JCPenney’s history and then also experience the ease and enjoyment of finding, purchasing and receiving their products, the customers will gain more confidence in the brand by simply receiving the level of care, respect and dependability that makes them feel important and valued.

In highlighting the continuity and return of JCPenney’s various in-store and private brands, Arizona, St. John’s Bay, Liz Claiborne, Ambrielle, and Stafford among them, that have long generated about half of Penney’s sales and give shoppers a reason to shop at JCPenney specifically (Sanders, 2015). The new lookbook will feature and position such brands as value brands with acceptable quality at a relatively low price. Headlines such as “We Never Go Out of Style” or “The Classic Look without the High-Class Price” will stream across the pages.

The return of the catalog will also serve as a vehicle for JCPenney to express many of its core brand-as-a-person attributes. Customers will note that JCPenney has not ridden itself of its past but has also opened its mind to the future. Hanging on to old traditions provides comfort and shows loyalty to an older customer base, while finessing those customs to be more modern shows younger generations the brand is aware and innovative. Shoppers can feel frugal and unpretentious while also feeling trendy and proud of their bargain purchase.

The long-lived tradition and history of the JCPenney catalog is an attribute the brand can use to more meticulously position itself in the market. For decades, the semi-annual catalog was a key differentiator for JCPenney. Families looked forward to receiving the catalog in their mailboxes—one in time for the back to school season; the other for the holiday season. The nostalgia of the 1,000-page “Big-Book” will be key in re-establishing the relationship with longtime customers, as well as driving them to jcp.com and area stores to expose them to the brand and, ultimately, gain back lost equity.

With recent research providing evidence that catalogs facilitate the purchase of in-store and online products, MAY Advertising recommends building a campaign around the comeback of the catalog as a means to connect with the core JCPenney customers on an emotional level. The idea is to evoke excitement about the return of the catalog (lookbook).

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EXECUTION STRATEGY

A bulk of the campaign will consist of paid search display advertising and paid social media advertising utilizing the channels most commonly used by JCPenney’s target audience: Facebook, Twitter, and Pinterest. Other strategies will involve the use of JCPenney’s “Find It, Keep It” mobile app, national print and outdoor ads, a national TV spot, and a partnership with a nationwide office supply retail store.

DISPLAY ADVERTISING STRATEGY

JCPenney can further increase the exposure of its returning catalog via paid search display advertising. MAY Advertising will create a record of users’ browsing history and general online behavior by using cookies placed in users’ web browsers. This process of behavioral targeting will ensure that standard and rich media ads featuring the new lookbook are delivered to specific audiences that fit the JCPenney customer profile. The display ads will track the performance of your campaign daily to measure metrics such as impressions, clicks and conversions to calculate your ROI.

MAY Advertising will build the creative for two–three distinct display ads to stream across the target audience’s e-mail, web pages, and news feeds. Adjustments to keywords, ad titles, and ad text can be made at any time.

SOCIAL MEDIA ADVERTISING STRATEGY

The goals of advertising on each social media platform will be to:

• Increase Interaction: With the ad and content prevalent on the homepage, users will be able to interact with it like they do any other piece of social content.

• Increase Reach: Expand reach to new potential customers who can interact with JCPenney’s content by commenting, liking, favoriting, retweeting, etc.

• Increase Sign-Ups: Whether signing up for a JCPenney credit card or creating an account, users will be prompted to input their information to receive their lookbook.

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The #CatalogComeback will be used across multiple channels. Posts will include sneak peek photos from the lookbook accompanied by warm, playful copy that conveys the products as stylish and affordable. When users click on the images, they will be redirected to jcp.com and prompted to complete a form to register an account. By providing up-to-date contact information, JCPenney will be able to mail a copy of the lookbook to the user. If the user already has an account with jcp.com, (s)he will have already been in the database to receive a lookbook.

Utilizing product cards on the Twitter campaign will allow JCPenney to offer rich media experiences that go far beyond a 140-character written message right within Twitter. Any users who tweet links to JCPenney’s content will have a “card” added to the tweet that’s visible to all of their followers.

Utilizing a similar process as display advertising, a series of ads will stream to targeted audiences’ Facebook pages and news feeds on mobile, tablet, and desktop devices. With Pinterest, JCPenney will purchases a set of promoted pins featuring the lookbook that will show up in searches (where they can be bought on a CPC basis) and in category feeds for topics like "home decor" and "women's fashion." In addition to targeting by category or keyword, the promoted pins can also be targeted by users' gender, city and the device they're using to access Pinterest. Pinterest doesn't report on how many users it has, though it does say that 75 percent of usage occurs on mobile (factoring in just its native apps and not the mobile web.) and puts its user base of people who use the service at least on a monthly basis at 40.1 million in the U.S. for 2014 and estimates that 85 percent of those users are female (Delo, 2014).

“FIND IT, KEEP IT” STRATEGY

JCPenney can also leverage the “Find It, Keep It” app by enabling users to scan items in the print catalog and then generate results that show the products availability online and in nearby

Example of a Twitter Card used by clothing retailer Modcloth.

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stores. Near the front of the catalog will be a promotion for the mobile app and a description of how shoppers can use it as they peruse the catalog.

PRINT & OUTDOOR STRATEGY

MAY Advertising recommends creating a four-color, full page print ad to run in highly targeted magazines. These publications will need to be in sync with the primary JCPenney audience (women, ages 25–55). Such magazines may include Real Simple, Good Housekeeping, Cosmopolitan, Better Homes & Gardens, O the Oprah Magazine, and Marie Claire. The ads will include a headline that communicates the catalog’s return, as well as a description that tells of its “new and improved” look and feel, and will direct readers to jcp.com. The homepage will include a banner ad showcasing the catalog comeback. When users click on the ad, they will be asked to either sign in or register to receive a lookbook.

Additionally, MAY Advertising recommends running a national billboard/wallscape ad campaign that features a 30–35 year-old woman gripping her new lookbook. Shot from the waist up, she will be off to the side in trendy (but not overly trendy) clothing as a headline next to her reads something like “The mother of catalogs is back” followed by “Get yours at jcp.com.” The billboards (standard and digital) will be displayed in various major cities across the country in high-traffic areas.

TELEVISION STRATEGY

MAY Advertising will lead the conceptualization and production of a :30 TV employs a similar look and feel as the print ads, i.e., a woman/mother excited about her new lookbook. The spot will air on primetime cable networks for a two-week period. Possible networks include Lifetime, Bravo, Oxygen, Style, E!, Food Network, Cooking Channel, and HGTV.

PARTNERSHIP STRATEGY

MAY Advertising recommends JCPenney consult office superstore Staples for a possible partnership that would elicit increased distribution of the new lookbook. Staples recently acquired Office Depot, who, in 2013, acquired Office Max. The new merger, which is currently in

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the works, will make Staples the largest office supply retailer in America (Staples, 2015). Through its partnership with Staples, JCPenney could supply Staples stores that have a nearby JCPenney store with a designated number of lookbooks as parents and their kids are fleeting to Staples for their back to school supplies. Customers who spend a minimum amount (TBD by JCPenney) on office supplies will be offered a free JCPenney back to school lookbook. Likewise, JCPenney customers who spend a set amount in stores or online at jcp.com will be offered coupons for Staples. Along with the coupons, a promo piece that explains the partnership between the two retailers will be handed out at checkout.

COST BREAKDOWN

DISPLAY ADVERTISING: $15M SOCIAL MEDIA ADVERTISING: $5M The proposed budgets for paid search/display and social media advertising will be stretched across a two-month span. The campaigns will target all types of devices—desktop computers, tablets, and mobile phones. We will set a bid amount (TBD by JCPenney), which will be the maximum amount paid per ad click (CPC), impression (CPM), or conversion, (CPA). For example, if you do not want to pay more than $50 for a conversion, we would set a $50 CPA. We will also set a daily budget that allows the ads to run enough to meet the desired goals. Let's say views cost $8 on average, and you'd like around 20,000 views per day. We would suggest budgeting $10 per day. Traffic fluctuates, so you may spend up to 20 percent more than your daily budget on a given day.

MAGAZINE SPEND: $6M As of 2013, a full-page color ad for O, the Oprah Magazine ran at $150k. At the time, the magazine had a readership of 2.3 million, which would equate to a CPM of roughly $60. If JCPenney runs a full-page color ad in six–eight high-profile (more than 1 million readership), national magazines (some being biweekly; some being monthly), MAY Advertising estimates a total of 40 ads, equaling a spend of $6M.

BILLBOARD/WALLSCAPE SPEND: $18M The national average cost for print and digital billboards is approximately $1,850K for a four-week campaign (Fit Small Business, 2013). In high-traffic areas with large markets, the cost can reach $2,500K. The average production cost to print a standard vinyl billboard is $500.00 (Fit Small Business, 2013).

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If JCPenney runs a combination of 3,000 print and digital billboards at an estimated cost of $4K each (eight-week campaign with locations changing at four weeks in), the total would be approximately $12M. Production for the print billboards would cost an estimated $1.5M (1,500 printed for first four-week period + 1,500 printed for second four-week period x $500 = $1.5).

Due to their tendency to be much larger, wallscapes are typically more expensive than standard billboards. Most standard billboards are 14 feet high and 48 feet wide. Depending on the location, a wallscape ad can be 60 to 80 feet high (Clear Channel Outdoor, 2015). Pricing varies widely, largely based on location. For instance, in New York one location might cost $15,000 to $20,000 per month, while a higher-profile location might cost $40,000 to $60,000 per month. If JCPenney runs 100 wallscapes at an average cost of $40K, the total would be approximately $4M.

TV SPEND: $11M Weeknight primetime :30 spots can range anywhere from $19.333–$326,260, depending on the channel/show during which the ad airs (International Business Times, 2013). This equates to an average cost of $172,500. We propose JCPenney run a total of 60 spots across three–four networks during the two-week duration. Estimated total cost: $10,350,000.

PARTNERSHIP SPEND: $36M If JCPenney prints one million lookbooks to distribute accordingly to Staples locations across all 50 states and each magazine averages $3.50 to print, the total print cost would be $35M. Distribution of the magazines to the stores would cost an estimated $500K.

TOTAL SPEND: $91M

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REFERENCES

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Dua, T. (2014, August 19). JCPenney taps emojis, selfies in new back-to-school effort - Digiday. Retrieved from http://digiday.com/brands/inside-jcpenneys-back-school-campaign/

Halkias, M. (2009, November 18). J.C. Penney is turning last page on its Big Book. Retrieved from http://www.dallasnews.com/business/headlines/20091117-J-C-Penney-is-turning-3244.ece

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JCPenney Optical Boosts In-Store Traffic and Brand Exposure With Google Advertising – Think with Google. (2014, November 1). Retrieved from https://www.thinkwithgoogle.com/case-studies/jcpenney-optical-boosts-in-store-traffic-and-brand-exposure-with-google-advertising.html

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Mahoney, S. (2014, February 24). JCPenney to Break New Campaign During Oscars. Retrieved from http://www.mediapost.com/publications/article/220171/jcpenney-to-break-new-campaign-during-oscars.html

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Rupp, L., & Coleman-Lochner, L. (2015, March 29). How Kohl's Is Outperforming Its More Upscale Rival Macy's. Retrieved from http://www.bloomberg.com/news/articles/2015-03-30/kohl-s-backs-big-name-brands-to-boost-shares-faster-than-macy-s

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Severson, D. (2013). The Average Cost of National Advertising Campaigns. Retrieved from http://yourbusiness.azcentral.com/average-cost-national-advertising-campaigns-26091.html

Sloane, G. (2015, February 17). JCPenney's 4 Cent Video Ads on Twitter Could Threaten YouTube's Longtime Dominance. Retrieved from http://www.adweek.com/news/technology/jcpenneys-4-cent-video-ads-twitter-threaten-youtubes-longtime-dominance-162998

Touryalai, H. (2013, December 24). How Macy's Is Winning The Retail Battle (Hint: It Knows Which Cities Need Size 11 Women's Shoes). Retrieved from http://www.forbes.com/sites/halahtouryalai/2013/12/24/how-macys-is-winning-the-retail-battle-hint-it-knows-which-u-s-cities-love-cuffed-pants/2/

https://www.facebook.com/jcp

https://twitter.com/jcpenney

http://www.macys.com/