This plans book presents the Texas Advertising Group’s (TAG) recommended national, fully integratedmarketing campaign for JCPenney (JCP) targeting females 25-34. The campaign runs February 1, 2012to January 31, 2013 and is designed to acquire new and retain existing customers to grow JCP’s share ofwallet from this segment.TAG has established an overall marketing objective of increasing sales to females 25-34 by $210million. This will be achieved primarily by garnering new business from three main competitors (Kohl’s,Macy’s and Target) and by increasing sales to current JCP customers who are members of the target.TAG’s recommended $100 million satellite campaign is built around the positioning and brandarchitecture used in the currently successful “We make it affordable, you make it yours” campaign.All TAG’s recommendations are based on a research foundation that includes 365 mind-maps, 9 in-depth interviews, an online survey with 102 respondents, as well as extensive secondary research.Based on these building blocks, TAG analyzed females 25-34 and concluded that they are an extremelydiverse group that breaks down along maturity fault lines. For example, the target includes Fresh-FacedPractical Pros (25 – 27), Newly Married Go-Getters (28 – 30) and Fashion-Conscious New Moms (31 – 34).Although these groups are diverse, TAG’s single big idea is focused on the emotional bond between thetargeted females and retailers that bridge the entire demographic. This bond is based on the fact thatthe strength of a relationship between a customer and a retailer relies not only on the merchandisesold, but more importantly, on the stories created by the customer, based on their experience with thatmerchandise.The campaign will achieve the increased sales objective by utilizing a media strategy built aroundengagement, buzz, cohesion and utility, as well as a creative strategy that focuses on the storiescreated by females 25-34 based on their experiences with JCP’s clothing. In order to continuouslyand effectively reach the target, the 360-degree media plan is built around touchpoints that are bothtraditional and non-traditional. Non-traditional touchpoints include Groupon, Pandora and Shazam.The media and creative strategy will be complimented by TAG’s suggested new partnerships withSeattle’s Best, Glamour’s Young & Posh and Carrie Underwood. Importantly, TAG recommends againstadding additional clothing lines but instead highlighting JCP’s new partnerships with MNG by Mangoand Call It Spring by Aldo.In conclusion, TAG’s strategy of focusing on the emotional bond between a customer and a retailer willcreate a lasting impression of JCP among females 25-34. Through TAG’s fully integrated campaign ofcreative, media and partnerships plus an enhanced digital and in-store experience, the target will beeffectively reached. TAG is confident that this marketing campaign will deliver the $210 million in salesthat will signify success.
This chapter presents a JCP company and brand history, a brief evaluation of JCP’s products and service mix plus an overview of TAG’s primary and secondary research findings. This chapter concludes with TAG’s SWOT analysis. JCP: A Company Rich with History JCP is more than a department store; it’s a place where stories begin, where the first page to many life chapters are turned. Whether it be a new graduate searching for the perfect suit for her first interview, the love-smitten bride registering for all her essentials for the next twenty years, or a soon-to-be mom eagerly anticipating her new baby’s arrival; all of these women and their lives are as genuine as the store they love to shop at, JCP. Since its inception, JCP has stayed true to a platform revolving around hard working Americans and treating both consumers and employees no less than the way they would treat their own families. From the first time the flagship store opened its, then, quaint shop doors in 1902, JCP has evolved into a household name and a major player in the nationwide retail industry. From the beginning, JCP has been home to affordable, fashion-forward brands at the national level and even host to select private brands exclusively designed for JCP. JCP’s tenacity and flexibility in adapting to changing times and social demands is evident in its thriving ecommerce site and expansion to over 1000 department stores in the US and Puerto Rico, continuing the story telling of not only a mere department store, but building the story of it’s shoppers for over 100 years. A Look at JCP Products & Services TAG recognizes that JCP is more than a seller of merchandise, but also a source for giving life to that merchandise. Because JCP plays an integral role in many life stage developments, there are several very large categories where JCP acts as a major player. Staying aligned with modern trends, JCP’s broad scope of products and services are available not only through classic “Brick and Mortar” stores, but also has successfully expanded to the online space, with most transactions taking place through JCP.com, but also through social media and mobile applications.“I go to Penney’s as a retreat.”April Rains, Age 28
As the pie chart from the case indicates (left), JCP’s sales are concentrated in three major categories: women’s apparel, home fashions, and men’s apparel. However, women’s apparel and accessories, which are the prime drivers of department store selection, constitute 35% of JCP’s sales. JCP also offers services including full salon services, professional portraits, and a comprehensive baby and bridal gift registry. JCP’s versatile product offering reflects the individuality of its target and its versatility in not only fashion styles, but lifestyles. JCP has Services and other successfully recognized its changing demographic and has responded 4% 11% in a bold way by introducing modern, fashion-forward brands to better Womens Apparel embrace the style quotient of the19% name. JCP Men’s Apparel Home JCP is not like every department store, and that is one of its greatest 19% Womens Accessories assets. JCP’s key differentiating factors include: (1) Sephora product offerings within JCP; (2) exclusive7%brands including- MNG by Mango, Children’s Apparel Call it Spring by Aldo, Liz Claiborne and American Living; and, (3) Family Footwear host to private label brands, each one exuding a distinct look, including: 11% Arizona Jeans, St. John’s 24% IYRonson, and many others. Bay, Fine JewelrySecondary Research: Key InsightsBased on Mintel’s Department Store Retailing August 2010 Report and Mintel’s ClothingShopping December 2010 Report, TAG has identified the six key insights stated below. Theseinsights into females 25-34 were critical in the development of TAG’s plan.1. Shopping is a social experience.2. As this demographic matures, the once frivolous shoppers, now view most purchases as an investment. This is where the importance of creating value perception is key.3. In all categories of purchases, females 25-34 identify themselves more closely with younger females than their older counterparts, indicating their desire for younger styles and attire for jump-starting their career.4. When it comes to shopping, these women do their homework. The Internet is a major research tool, with in-store follow-up purchases not far behind. 5. The way clothing fits becomes more important with each passing year. As they age, these women want clothing that fits well, polishes their look and can still be personalized.6. JCP customers have a desire to be rewarded for showing loyalty to their favorite stores, and they long for a more personalized relationship. The JCP woman feels like her favorite store is a large part of her life; she creates a relationship with the store and wants to feel as if she is as important to the store as they are to her.
Primary ResearchTAG’s primary research focused exclusively on females 25-34 and consisted of the following: (1) 365mind maps; (2) 102 online survey respondents; (3) 9 in-depth interviews; (4) ten on-spot interviews;and, (5) an in-store and general retail observation study.Based on this primary research, TAG derived six key insights. These insights provide the basis of TAG’starget market definition and all other strategic and tactical recommendations.1. Maturity Fault Lines: Different life stages, same wants.Within the age range of 25-34 there are three major “maturity fault Lines” which TAG identifiedthrough our primary research. These women have distinct personalities and are in differing life stages.However, while this effects the media placement and messaging strategies used, all women in the targetessentially want an exciting brand experience that offers stylish merchandise that they will cherish andvalue over time.2. Time: A precious commodity.Females 25-34 are pressed for time. Whether it be due to a bustling career or a demanding family/sociallife, shopping is an activity that is squeezed into a tight time frame. This impacts a variety of target-relevant decisions including choosing between free-standing versus mall department stores.3. Motivation: “ME time”Whether “burden” or “escape” shoppers, both segments of the target want shopping to be as painlessand enjoyable as possible. Many women interviewed depicted shopping at JCP as “an escape” or “atime to relax”. This “ME time” sentiment plays a strong role in decision making in the target’s choice ofwhere to spend their limited shopping time.4. Brands: Appreciated, but not a deal breaker.Many members of the target communicated that brand names were less important than style quotientand versatility of the merchandise in their purchase decisions.5.Value: It’s a perception not a dollar amount.The target perceives value as a combination of merchandise quality, item price and brand personalityperception. No one variable dominates.6. Lineage: A missed opportunity.A majority of the targeted females interviewed, as well as those surveyed online, reported having visitedJCP at some point in their lives. Many of these women experienced JCP as youngsters with their family,most often with their mothers. However, many of these women are not continuing the lineage of JCPbeing the family shopping destination for their own lives and new families.
Based on these six insights, TAG developed the following profile of the targeted females 25-34: They are REAL women: • Independent shoppers; they don’t like being hounded by salespeople • Frugal and proud of their ability to save • Apathetic to high-end branding They lead REAL lives: Give them a REAL experience: • Limited spare time • So they feel the personality of the store • A desire for versatility within seconds of entering • Family and friends are a high priority • That surpasses the pricey boutique • New lives of their own to build and alternative shopping destinations grow into • To highlight their eclectic and unique styleIn addition to these key insights, TAG created the archetypes of “burden” shoppers and “escape”shoppers to capture the variability of attitudes toward the retail shopping experience. These archetypes,as defined below, also emphasize the importance of the in-store experience.Burden shoppers view shopping as a necessity not an enjoyable activity. They pursue in-storeexperiences in short bursts and typically search for a specific item and abandon their efforts if the itemis not immediately found. Burden shoppers are more inclined to employ online shopping and otherdigital techniques to decrease the time spent searching for merchandise.Escape shoppers love to shop. They view the retail experience as a getaway and a stress reliever.Similar to the burden shopper, they also appreciate easy in-store navigation. However, they spendlonger periods of time perusing shelves and enjoying any extra services offered by a retailer. Escapeshoppers research online as well, but frequently browse in-store before completing a purchase.It is important to note that based on individual circumstances, at any given point-in-time, members ofthe target market can be either a burden or an escape shopper.SWOT Analysis StrengthsTAG’s review of the external • Value/Price Points Weaknesses Style quotientenvironments revealed the following • Private & exclusive brands In-store ambiancestrengths, weaknesses, opportunities • Sales, coupons, JCP Rewards Store layout and navigabilityand threats for JCP. These • Unobtrusive customer assistance Brand ambiguityconclusions guided the development • JCP.com online salesof TAG’s plan. The creative work Opportunitieswas built on current JCP strengths Threats • Create in-store/personalized spaceof value/price and exclusive brands, • Shopping experience for targetand was designed to impact the • Style perception and expectations • More JCP branding in-store and onlineweaknesses of style, in-store • Brand ownership • Partnerships: an opportunity toambiance and brand ambiguity. reinforce existing and attract new • In-store or nearby food and customers beverage retailers • Memories, personal connections
A mind map is a visual representation of the complex network of associations that constitutes aconsumer’s brand perceptions. TAG used the analysis of mind maps to unearth critical insightsthat were not readily apparent.During the Fall of 2010 mind maps were constructed, via in-depth interviews, for 365 females25-34. This data set included JCP and four of its competitors: Macys, Kohls, Target andWalMart.These mind maps provided TAG with unique perspectives that influenced TAGsrecommendations across all campaign decisions. Summary mind maps were constructed forJCP, Kohl’s, Macy’s and Target. These are presented below and on the next page.
This chapter opens with statements of JCP’s vision and positioning. This is followed by TAG’s overallmarketing objective against the 25-34 target of increasing sales by $210 million. Next, a brief discussionof marketing mix strategies is presented. The chapter concludes with a comprehensive statement ofTAG’s recommended creative strategy including the single big idea around which all efforts centered.A Vision for JCP“Our vision is to be America’s shopping destination for discovering great styles at compelling prices.”Mike Ullman (From 2009 Annual Report)PositioningJCP is positioned as the department store that invites customers to discover a wide-variety of clothing andother merchandise while providing customers with an attractive blend of style and quality at compellingprices.Marketing IBP/ObjectivesThe overall marketing objective of TAG’s campaign (February 1, 2012 – January 31, 2013) is to increaseJCP’s sales to females 25-34 years old by 11%. This increase will be achieved primarily by stimulatingKohl’s, Macy’s and Target shoppers to shift a portion of their purchases to JCP. In addition, a significantportion will come from increasing purchases made by current JCP shoppers.Building on JCP’s already well established success as an online retail leader, TAG will increase onlinesales to females 25-34 by $21 million over the course of the campaign. This increase is based on Forresterprojections of online growth coupled withTAG’s campaign strategy and focusing Source of Sales Increase % Garnered Sales Increase on the consumer (millions) experience, which isspecifically targeted to female customers25-34. Kohl’s 25% $52.5 Macy’s 20% $42.0 Target 15% $31.5Note: In terms of dollar sales, based on Reuters estimates, JCP sales to females 25-34 in All other 10% $21.0 the preceding period (2.1.11- 1.31.12) will be $1,910.43 million. An 11% increase will expand sales to $2,120.57 Current JCP 30% $63.0 million. The $210.1 million in- crease will be generated by increased sales from current JCP customers, customers of JCP’s top three competitors and other retail stores. Therefore, 70% or $147.07 million of the increase will be garnered from JCP’s competitors. Kohl’s shoppers will contribute 25% or $52.5 million of this total, Macy’s shoppers will contribute 20% or $42.0 million and Target shoppers will contribute 15% or $31.5 mil- lion. The additional, 10% or $21.0 million will be garnered from other department stores, stand-alone stores and boutiques. Furthermore, 30% or $63.1 million of the increase will come from expanded spending by current female JCP shoppers aged 25-34.
Rationale for Attracting Customers Away From Kohl’s, Macy’s and Target TAG’S campaign targeting females 25-34 will capture customers from Kohl’s, Macy’s and Target. The rationale for focusing on these three competitors is explained below. 1. In-depth interviews and mind map analyses indicated that apparel/accessories are the key motivators which dictate store switching behavior among members of this market. 2. The Mango and Aldo lines are a great fit for females 25-34. TAG has concluded that the appeal of these brands is strong enough to motivate competitors’ shoppers to switch to JCP. For example, these women would be strongly attracted to Mango and Aldo versus Kohl’s Lauren Conrad and Simply Vera lines. The same is true with Macy’s Style &Co and BCBG as well as Target’s store brands. 3. Leveraging these JCP brands via TAG’s persuasive creative appeals coupled with innovative and savvy media strategies and other IBP programs will effectively position JCP to pull customers away from these competitors. 4. Based on both the size, as measured by women’s apparel sales volume, and the similarity in consumer profiles between JCP and each of the three competitors: TAG forecasts that the source of JCP’s new business will be 25% from Kohl’s, 20% from Macy’s, 15% from Target, and 10% from all other stores.Product PlaceTAG recommends no change in JCP’s merchandise mix. By TAG recommends no change in JCP’s current network ofleveraging the recently acquired, exclusive partnerships with store locations, as it would be inappropriate to recommendLiz Claiborne, Aldo and MNG by Mango, style will be placed at such changes as a part of a supplemental campaign focusingthe forefront of JCP’s branding. Supplementing these clothingand shoe partnerships with the Sephora beauty partnership exclusively on females 25-34.will create an attractive product mix for the target. TAGwill also focus on creating a segmented space with clothingspecifically for females 25-34.Price PromotionTAG recommends continuing to transition JCP from the low TAG recommends an aggressive promotional strategy centeredprice leader to the value leader, while maintaining current around the emotional bond created between females 24-35 andprice points. TAG’s focus will be making JCP the leader in department stores.value rather than price. Currently, Macy’s beats JCP as the“luxury” department store leader, while Kohl’s gains share in This strategy is supported by an innovative blend of mediathe discount department store market. TAG anticipates that including digital, online and traditional. These are supplementedKohl’s will maintain its position as the leader in low price. by enhancing the in-store experience, new partnerships, and community relations all specifically targeted to these women.
Statement of Creative StrategyTAG’s creative strategy and tagline, “life’s little closet,” is based on research drawnfrom analysis of perceptions of department stores pulled from consumer mind mapsand in depth interviews.First, the underlying strategy is explained in the Creative Origins section, thisdiscussion is followed by coverage of TAG’s Creative Brief.Creative OriginsFashion is a FeelingOur strategy for JCP was borne of human truth: clothes are only clothes until you givethem a story. Fashion sense and style is measured by how clothing makes the wearerfeel. Worldwide, shopping is a female obsession; for some, a new pair of black heels ismore important than paying a phone bill on time. This is not because new clothing isimbued with some kind of fashion magic; it is because clothing brings what a womanfeels to the surface. She may not realize her little black heels are magical until threemonths, an awkward first date and a dinner party have passed, but her clothing is nowpart of her life story.The JCP WomanJCP is a department store that sells great clothing and products at a great price. Butthe lives lived by the women who pass through the aisles is far more exciting thana new cardigan or a sale-priced toaster oven. This JCP woman is uniquely differentfrom the Macy’s woman; she rides the subway. She has a group of great girlfriendsthat she’s known for years, and while she may not be married yet, she loves the feelingof being in love. She lives a fun life and only wants it interrupted by advertising if it’smeaningful to her, and meaningful is real and unique.Back To RealityThis strategy is a shift away from the short-lived, trendy glam of department storebranding. Our creative plans involve the use of real women telling their stories inrelation to JCP clothing and products in order to encourage a life-long quality rela-tionship with each item and the store itself. Branding efforts under this strategy take aholistic and forward-thinking approach in appealing to the consumer through non-traditional ad placements and emphasis on social media and web technology. Thisnew vision for JCP will extend to the in-store experience, from the labeling of depart-ments to store organization and displays.More Than A NameFrom here on out, JCP is no longer a seller of clothing and goods, but a player ina million life stories. This book you are reading right now is a small sample of thisstrategy: the stripping-down of the superficial and the return to the perspective of theconsumer. Stories are much more interesting, personal is much more meaningful, andbrands should be more than a name.
Identifying the target market:Who are we talking to? • Females, ages 25 – 34 • JCP customers and females 25-34 who are loyal Kohl’s, Macy’s, and Target customers.Where these women may be: • Just out of college, single, entry-level • New career, new boyfriend, new chapter • Just married, moving, looking forward • Better job, better home • Settling down, pregnant • Child, focusing on what’s importantMaturity Fault-linesThe target is a diverse audience separated by important life events – careers, marriage,children – that distinguish not only their ages, but their maturity. As a womanprogresses through these nine years, important markers like these dictate the tone of herlife. Three examples of the groups that makeup this demographic cohort are describedbelow.Fresh-faced practical pros (25 – 27)New graduates, they’re looking to get their professional lives on track before they settle downwith a boyfriend and think about family. They value their individuality and want to express itthrough what they wear. They look for value in what they buy for their wardrobe and home.Newly married go-getters (28 – 30)These women have settled down with a significant other without compromising theirprofessional ambition. They are focused on their careers and have less time to indulge inpersonal desires. They may be planning for children, but they’re most concerned aboutspending time with their significant other and enjoying the little moments they haveaway from work.Fashion-conscious new moms (31 – 34) These women have recently had children and are more concerned with being goodmothers. However, they have not lost a sense of individuality and want to lookfashionable as they work out to get their figure back. Just because they’ve hadchildren doesn’t mean they need to wear Mom Jeans.Note that not all females 25-34 will move along this timeline at the same pace.While recognizing these women’s diversity of lifestyle and AIO’s, TAG’s strategywill focus on the appeals that span and resonate with the majority of all suchsubgroups.
Creative Brief What are we trying to accomplish? To further establish JCP as a brand that celebrates the customer experience through surprising clothing style, compelling prices and an intimate connection with its consumers. (TAG will focus primarily on clothing because research revealed that it is the strongest motivator of the target in selecting a shopping destination.) What do we want the target to feel about the JCP brand? We want the target to feel a close, personal trust with the JCP brand that is fostered by its continued efforts to celebrate them in their everyday lives. What is the Single Big Idea? JCP understands that the strength of a relationship with the consumer relies not only on the merchandise sold, but on the stories created by the customer, based on their experience with that merchandise. What is the ammunition that supports the Big Idea? Stories reflect ownership. Analysis of TAG’s depth interviews and mind map research uncovered that emotional bonding with a retailer is based primarily on the stories created by the consumers themselves. Stories create the strongest emotional bond with a store. What is the tone and personality to be conveyed? The right voice is personal, empowering, real and contemporary. Creative Mandatory 1) Must use JCP.com in all messaging 2) Must use the JCP logo in all messaging“I realized that I could wear certain things that kind of express mypersonality and maybe start up a conversation. For me, it became moreof an art and expression of my personality. I don’t necessarily needsomebody to flap a mannequin in front of me and tell me what to wearbecause it has nothing to do with me.”- Britney Murray-Jackson, Age 25
This chapter reveals TAG’ s media and creative executions simultaneously. Jointly presenting mediaand creative elements illustrates TAG’s integration of concepts across platforms. After addressingmedia and creative, TAG’s recommendations for enhancing JCP customers’ digital and in-storeexperience, partnerships and community relations are presented. The chapter concludes with aflowchart that visually displays TAG’s media plan.Media StrategyThrough primary and secondary research, TAG developed four important media objectives:engagement, buzz, cohesion and utility. TAG’s recommended media tactics focus on achieving theseobjectives. The media plan described below will reach the females 25-34 where they already are throughmultiple touch points. To yield a cohesive, multi-platform campaign, TAG’s media efforts will providefemales 25-34 with more ways to interact, become engaged and fall in love with JCP.The primary purpose of TAG’s media recommendations is to increase market share and shoppingfrequency among females 25-34. Secondary purposes include acquiring new customers and retainingcurrent JCP shoppers ages 25-34. JCP has a long and successful history of utilizing a digital platform.To continue this forward-thinking approach, TAG’s plan emphasizes digital media tactics and utilizingmobile platforms.TAG constructed a holistic media plan that reaches females 25-34 at multiple touch points. Throughextensive primary and secondary research, such as Nielsen AdViews, TAG examined retailers’ mediaspending from 2007-2010. Using these and other data, TAG built a media plan that highlights thecreative strategy in an efficient and effective manner.Note that after careful consideration, TAG has elected not to suggest recommendations for changesto JCP’s Search Engine Optimitization or Search Engine Marketing tactics. The proposed satellitecampaign targeting females 25-34 will operate under the umbrella of JCP’s current efforts in thisdomain.
Media Objectives & Creative ExecutionsTAG’s four media objectives along with selected creative executions within the “life’s little closet”campaign are described in the sections below. Note that a complete media breakdown, detailed infour tables, is presented on page 30.EngagementEngaging the consumer will deepen relationships and create brand loyalty.Social Media-FacebookFact: Forty-five percent of JCP’s target use social media at least once a day; forty-six percent ofInternet users are influenced by online reviews when making purchases. 1Idea: JCP will sponsor an online “Story Telling Contest” via the existing JCP Facebook page.Initially, 25,000 women 25-34 who are friends of JCP will be invited to participate in the contest.The first 500 of these women to “like” the contest will receive a featured article of clothing from theJCP store. These women will be asked to upload a photograph or video accompanied by a short story(300 words or less) describing her experience with the item of clothing. The uploaded photo/videowill become the participating women’s profile picture with a JCP “Vote for Me” link, engaging herfriends and family to vote for her, while spreading this contest throughout her friends’ news feeds.The entrant with the most votes at the end of the month long contest will be featured as the JCPFacebook profile picture for one week.Outcome: Five hundred members of the target audience will be directly engaged by the campaign.More importantly, a larger pool of their friends, many of whom are in the target, will be routedto the JCP website. These stories will influence other women to make purchases and establish arelationship with JCP.Success Measure: The success of this contest will be measured by the number of people whobecome new fans, click-throughs to the Facebook fan page or JCP.com and total number of peoplewho voted.1. JCP Case Study; http://www.marketingprofs.com/charts/2010/3419/facebook-mobile-tops-100-million-usersShazam and JCPFact: With a hundred million users and over one billion songs identified and approximately250,000+ purchases a day; Shazam is one of the most popular and increasingly adopted freeapplications for smart phones. 2Idea: Beyond just music, Shazam has the ability to capture dialog and attach it to content. JCP canreach its tech-savvy females 25-34 by utilizing this technology and communicating with the targetwhile they watch TV. First, JCP can sponsor the fashion featured on their favorite TV show. Second,while viewers are watching the show, JCP will feature pop-up content along the bottom of the screenasking viewers to Shazam the show to access exclusive JCP content or even unseen clips/footage.
Outcome: JCP can link consumers via their mobile device to their JCP WAP siteor directly to the outfits seen on the show. Furthermore, this presents possiblepartnership opportunities with shows like “The Bachelor” and “The Bachelorette,”a show popular among our target audience. This application engages consumersby providing added value to their media usage and enables JCP to connect and sellmerchandise to the target through their mobile devices.Success Measure: TAG will evaluate the success of this promotional effort bymonitoring how many viewers “Shazam” the featured content, connect to the WAPsite and view/purchase the clothing featured on the show.2. http://thenextweb.com/mobile/2011/01/14/shazam-currently-boasts-30-million-total-ios-and-android-users/TelevisionFact: Based on Nielsen AdViews, females 25-34 are heavy TV viewers and indexhigh for particular networks. Also, JCP and key competitors are heavy televisionadvertisers. 3Idea: TAG suggests running thirty second spots on broadcast and cable networksthroughout the campaign period. Also, TAG recommends implementing additionalspots during peak shopping seasons such as the winter holidays and back to schoolmonths. Broadcast networks provide effective coverage of females 25-34 and cablenetworks attract highly targetable, diverse and passionate viewers. Broadcastnetworks like ABC, NBC and Fox all indexed high in terms of viewership amongfemales 25-34. Cable networks like Style, E!, WEtv, Bravo, Oxygen and ABC Familyalso indexed high among our target. In order to strategically reach the target, JCPcommercials will air on these nine networks. A TV spot is described in storyboardformat on the following two pages. See the table on page 30 for a breakdown ofspecific television buys, costs and impressions.Outcome: Females 25-34 will be exposed to targeted commercials that will befun, engaging and relevant. These commercials will enable JCP to emotionallyconnection with the target by showcasing stories of real JCP women.Success Measure: To measure success, TAG will monitor Nielsen reports toobtain the number of impressions among females 25-34.3. Nielsen AdViews; MRI; http://tvbythenumbers.zap2it.com/2010/08/03/the-bachelorette-finale-leads-abc-to-
TV Spot: This 30-second TV spot aims to give the viewer a peek into “life’s little closet”. The visuals remove the frame of the closet from the usual placement in a bedroom to the places where fashion becomes a feeling.1. Scene 1 opens to woman in an open air environment opening up a closet door andchoosing a red JCP sweater. SFX: Silence until woman picks sweater off rack, which signalsa symphony of soft environmental noises and song “How Sweet It Is” begins byMichael Bublé.3. Scene 2 opens to close-up of different woman in a vibrant seaside environment. Woman puts onthe same red sweater as the woman in scene 1. SFX: Soundtrack continues; sound of a distant bellringing.5. Scene 3 opens with wide shot of a third woman walking into a subway train throughsliding doors. Shot cuts to close up of her walking across the main hall of the car as thesecond set of subway train doors open to reveal another closet with the same red sweater.
2. Long shot reveals the closet is simply a standalone door and rack in a sunny field. Womanwalks over to bike and rides off. SFX: Soundtrack continues.4. Long shot of woman hopping gleefully into a boat in a harbor wearing sweater. Closetis standalone on pier. SFX: Laughing, sounds of rocking boats and seagulls; soundtrackcontinues.6. Close up of original subway train doors opening to reveal third woman transformed bysweater. As she walks out of the car, scene cuts to level camera angle shot of the front of herred sweater as she leaves the platform into the light of day. JCP.com logo appears centered,overlayed on moving image, with tagline, “life’s little closet.” Scene ends.
best-summer-monday-ratings-in-over-10-years/58979BuzzBuzz: Capturing the target’s attention in an exciting and unexpected mannerBus Stop Shelter TakeoverFact: Bus shelters in high foot traffic locations in the top ten markets have the potential to generatesignificant buzz. Bus ridership in these markets is substantial. 4Idea: To generate buzz around the JCP brand, five bus stop shelters in each of the top ten markets willbe transformed into interactive closets. The interactive closets will contain JCP outfits that women cansort through, plus mirrors to check their hair and make-up. The closet will consist of three horizontallyscrolling bars, each one devoted to either tops, bottoms or shoes. For example, the consumer could picka blouse and see how it fits with different pairs of pants or various skirts. If she finds an outfit she likes,the consumer will have the option to printout the outfit immediately or send it via her mobile device tosave for a later purchase. The printout will include a coupon as an incentive to shop at JCP.Outcome: This event will generate buzz among females 25-34 in the top ten markets. Additional buzzwill be stimulated by word-of-mouth and unpaid media coverage.Success Measure: To measure success, TAG will monitor how many women printout selectedoutfits and how many redeem their coupons in a JCP store. Viral and press exposure surrounding thetakeovers will also be measured. Intera ctive C loset - User I nterfa ce set nteractive Clo Bus Stop - I
4. http://www.apta.com/resources/statistics/Documents/FactBook/APTA_2010_Fact_Book.pdfOnlineFact: JCP’s target audience are high users of online streaming video, social media sites and 39%regularly access the internet from their mobile phone. 5Idea: TAG recommends utilizing display ads, rich media and video pre-roll on websites relevantto females 25-34. Rich media and pre-roll ads have a higher rate of engagement among web usersand therefore are emphasized in the plan. Since 27% of all Facebook users are females 25-34, TAGrecommends reaching these consumers via the Facebook display network. Facebook allows JCP totarget its consumers using attitudinal information. Since a large percentage of the target accesses TVshows and video online, TAG recommends reaching the target on sites like Hulu.com and YouTube.com. Based on television research, TAG knows that the target is heavy viewers of shows on ABC, FOXand NBC. Therefore,TAG recommends advertising on these three networks websites. See the table onpage 30 for a breakdown of specific online buys, costs and impressions.Outcome: These advertisements will not only increase JCP’s brand awareness, but also drivecustomers to the JCP website and connect users to other online media efforts.Success Measure: All online efforts will be measured in terms of impressions and conversions.Success will be measured by monitoring click-stream data showing the number of users who click-through to the JCP landing page and the number who completed a purchase.5. JCP Case Study; Good AdPlanner; QuantcastCohesionCohesion will leverage the impact of offline, online, mobile and non-traditional media.People Magazine, StyleWatchFact: Through primary research, TAG found that females 25-34 enjoy seeing clothing displayedor worn by models and celebrities to generate new ideas about how they might wear the clothesthemselves. 6Idea: TAG believes that JCP’s current involvement with StyleWatch, which is popular with females25-34, should be extended. TAG recommends JCP be the sole sponsor of an entire issue of StyleWatch.“Owning” an entire issue will increase the brand’s reputation and have a significant impact among thetarget. This JCP issue will feature JCP ads and style tips. To connect this sponsorship to the in-storeexperience, TAG recommends that JCP place StyleWatch signs throughout the store and create a spacein the store with a grouping of all JCP clothes featured in the magazine. Also, QR codes on print ads inStyleWatch will be used to take the consumer directly to the online store.Outcome: The shock value of a magazine takeover will generate buzz and increase JCP brandexposure. The JCP takeover and strategic placement of QR codes will allow readers to directly connectwith JCP apparel and accessories featured in the magazine.Success Measure: The success of this takeover will be measured by readership of the JCP issue andQR linked purchases of JCP featured merchandise.6. SRDS; Primary Research, Mind Map Database Bus Stop Shelter (page opposite): The JCP Woman is always on the move. This interactive bus stop shelter gives her the freedom to style herself in an unexpected location.
Magazine Fact: Females 25-34 are heavy readers of magazines. 7 Idea: TAG recommends purchasing full page ads in magazines such as baby, bridal, parenthood, fashion, lifestyle, epicurean and health because they index high among our target audience.TAG has included QR codes on selected ad placements to take readers from a traditional experience to a digital one. Readers can access JCP content sites and make a purchase. These ad placements will showcase the lives and real stories of JCP women. See the table on page 30 for a breakdown of specific magazine buys, costs and impressions. Outcome: By selecting high circulation magazines that index high with females 25-34, awareness of JPC will be expanded. QR codes will create a revenue channel and also provide analytics for later use in optimization and planning. This effort will result in creating cohesion between online and offline efforts. Success Measure: The number of readers who use the QR code to access the JCP website and the number who make an online purchase will be used to measure success. 7. SRDS; JCP Case Study Utility Utility will make it easier and more effective for females 25-34 to shop JCP. JCP Mobile AppFact: Fifty-three percent of females 25-34 who are JCP customers have a smart phone and thisdemographic has a significantly higher penetration of smart phones than the general population.Nielsen forecasts that 50% of all cell phones will be smart phones by the end of 2011. 8Idea: TAG’s recommends that a new feature be added to JCP’s current app. The addition to the JCPapp would allow females 25-34 to create their own palette of colors, patterns and fabrics using theirsmart phones. Using image recognition software, the app will take the colors, patterns and fabricsthe user photographs and create suggested JCP apparel and accessories combinations that reflect herpalette. For example, a woman takes a photo of a sunflower in her garden. The add-on to the JCP appPrint Ad: Every woman has a story. Traditional print executions are designed tofocus on not the clothes themselves, but the emotional ties created while wearingJCP clothes. Each print is punctuated with the tagline, “life’s little closet.”
will pull merchandise inspired by the color of the sunflower, such as a canary-colored bracelet, a mustard-colored sun-dress and complimentary coloredbeige sandals.Outcome: The overall goal of the app is to inspire females 25-34 byallowing them to create combinations of apparel and accessories based ontheir own preferences. The app’s unique experience is buzz-worthy andwill provide the target with a source of entertainment and engagementwith the JCP brand.Success Measure: The success of this app will be measured by how manyfemales 25-34 use the app and by their purchases that can be linked to the use ofthe app.8. JCP case study; http://twittown.com/mobile/mobile-blog/usa-add-80-million-new-smartphone-users-201Online Groupon CouponsFact: Seventy-seven percent of Groupon’s users are women and 68% are betweenthe ages of 18-34. Therefore, a high proportion of the targeted females 25-34 areGroupon users. 10Idea: TAG recommends incorporating online coupon promotions into JCP’smedia plan using Groupon. These coupons can be targeted precisely to females25-34 and attract new customers from within the target to JCP. The use of thesecoupons can be shared with friends on Facebook and Twitter adding a viralcomponent to this promotion. In addition, social networking is built into the Grouponmodel. Groupon users earn points by encouraging others to participate. JCP’s use ofGroupon would preempt key competitors Macy’s, Kohl’s and Target.Outcome: By tapping into coupon marketing and social networking, JCP canattract new customers and provide females 25-34 with a convenient way to shopand save money.Success Measure: The success of this promotion will be evaluated by thenumber of coupons purchased. In addition to tracking the number of couponssold, JCP will also have data on how many females 25-34 that received andopened the JCP Groupon email.10. www.grouponworks.com/why-groupon/demographicsOnline Pandora InitiativeFact: Eighty million Pandora users streamed 3.9 billion hours of music in the pastfiscal year. 9Idea: TAG recommends creating a page takeover on Pandora to showcase thevariety of JCP styles. After logging on to Pandora, only female listeners 25-34 willimmediately be prompted with five different JCP outfits from which to choose. Witheach new log-in, the targeted listener will be presented with a randomly generated newset of five outfits. Based on the style of the chosen outfit, Pandora suggests a playlist thatMobile App (above right): Inspiration can be found in any of life’s moments.The addition to the existing JCP Mobile app will allow the user to capturethe things that inspire their look. The app then recommends apparel andaccessories that parallel styles for each woman’s source of inspiration.
aligns with the style preference selected. This type of Pandora takeover has not been used by a retailer.Hence, JCP would preempt Kohl’s, Macy’s and Target.Outcome: Using Pandora to create a personalized radio station will set JCP apart from its competitorsand deepen relationships with females 25-34.Success Measure: The success of this promotion with Pandora will be measured by the number ofunique listeners who interact with the JCP station and by the number of listeners who click through tothe JCP website.9. JCP Case Study; Pandora WhitepaperPandora Takeover (above): The JCP woman is an avid music listener. With this Pandora takeover,JCP can provide a station for each woman’s style.RadioFact: Females 25-34 index high on multiple traditional radio formats and even higher for streamingradio and MP3s. 11Idea: TAG recommends thirty second spots airing strategically throughout the campaign. These spotswill reach listeners in their cars during peak listening times, like morning and evening rush hours. Thismedium will serve as yet another way to reach potential consumers and build relationships between JCPand listeners. See the table on page 30 for a breakdown of specific radio buys, costs and impressions.Outcome: Increase in brand awareness of JCP by reinforcing the frequency of the overall message.Success Measure: The success of radio delivery will be measured using Arbitron ratings.11. JCP Case Study; http://costofradioadvertising.com In-Store (page opposite): Creating an environment to nuture the relationships between the JCP Woman and the store is a critical element in TAG’s plan. In store signage will reflect a personal and yet whimsical look consistent with the entire campaign.
In-Store RecommendationsTAG recommends clarifying and expanding clever signage, the creative use of mannequins and otheraesthetically appealing visual cues to increase ease of navigation within the store for females 25-34.These recommendations are intended to enhance the shopping experience and leave the targetedcustomers feeling more special and valued.As discussed under TAG’s primary research, two archetypes were identified: “burden” and “escape”shoppers. Both burden and escape shoppers have similar, and clearly defined, expectations in a retailenvironment. Because they are often looking for a specific item in a short amount of time, burdenshoppers desire organization and ease while searching for merchandise. In addition, burden shoppersrely heavily on visual cues such as mannequins and displays for fashion inspiration. They also lookfor clearly legible signs for navigation and seek customer service only when needed. Similarly, escapeshoppers seek this same type of environment, but for different reasons. For the escape shopper,shopping is also a time to relax and self-indulge.To satisfy both shopping types, TAG recommends JCP display all apparel merchandise for the targetwith better organization and clearer differentiation between styles, designers and age-appropriatecategories. To accomplish this, TAG recommends updated signage, mannequins and visual cues toappeal to the target’s contemporary aesthetic. Further, TAG suggests using lighting and the addition ofmore mirrors to create a more pleasant ambiance. Finally, merchandise featured on mannequins shouldbe available within close proximity to each display. Burd en Sh oppe r er Escape Shopp
PartnershipsTAG recommends three new JCP partnerships. TAG’s suggested partnerships will improve thecurrent targeted shoppers’ perception of JCP and attract new potential customers by increasingJCP’s fashion perception and expanding overall awareness.In-Store Café’s – Seattle’s Best CoffeeSipping on a latte while searching for the perfect little black dress and laughing withgirlfriends are the small details that can turn a day of simply shopping into a day of memories.It’s a story that practically writes itself and research supports this insight. Based on primaryand secondary research, it is clear that providing the target with an easy refreshment optionwould enhance their overall shopping experience. This is especially true in JCP’s 316 stand-alone stores. To address this opportunity TAG recommends a partnership with Seattle’s BestCoffee (SBC).As stressed in a recent article in QSR, a top industry trade publication, SBC has been steadily growing,gaining new distribution points and attracting an increasing customer base since 2009.1 SBC’s businessstrategy and the quality of its products make it a great potential partner for JCP. A partnership with JCPwould also help SBC reach its distribution goals, making the partnership a mutually beneficial relationship.TAG has received a favorable response from Christine King, Marketing Manager at SBC, to establishingsuch a partnership.2 Upon successful completion of a three-month test in three markets, TAG recommendsrolling out 1,000 square-foot SBC café stores inside JCP 316 stand-alone stores.Entertainment Partnership – Carrie UnderwoodCurrent JCP customers favor inspirational and Christian music while females 25-34 prefer Popand Top 40 hits. Carrie Underwood appeals to both markets with her single “Jesus Take theWheel” peaking at No. 4 on Billboard Christian Songs and “Before He Cheats” peaking at No. 8on the Billboard Top 100.3 Carrie Underwood, 27, has modern style, a warm small-town charmand the inspirational story of achieving stardom after winning American Idol. Carrie Underwoodhas the ability to connect with and inspire women by partnering with JCP while on tour and whileparticipating in JCP philanthropy events.Carrie Underwood will be used to promote and encourage the success of JCP’s philanthropicpartners.4 Most significantly, this partnership will include selling Carrie Underwood’s CD’s atthe checkout counters and money earned from CD sales will be directly distributed to the four primaryphilanthropic organizations supported by JCP.In addition to supporting JCP philanthropy efforts, a partnership with Carrie Underwood will create a positiveassociation between the artist’s fans and JCP. Utilizing JCP/MNG mobile pop-up stores outside of CarrieUnderwood concerts during the campaign, fans will create a positive connection with both the artist and theMNG line. Pairing Carrie Underwood, a young, stylish and relatable celebrity, with the fast- fashion trends ofMNG will further promote the trending styles of JCP and improve the store’s overall fashion perception.1 QSR Magazine Online; accessed March 9, 2011: SBC data; http://www.qsrmagazine.com/news/seattle-s-best- takes-skies2 Telephone conversation with Christine King, SBC, March 9, 2011; Confirmation email, March 11, 20113 Data, MRI Spring 2010; February 23, 20114 TAG’s negotiations with Jessica Schmidt, Carrie Underwood’s agent, are ongoing and favorable. However, endorsement of TAG’s proposed partnership was pending at plans book press time.
Glamour.com/Young & Posh Blogger NetworkGlamour.com brings fashion to life with its new, chic blogger network, Young & Posh (Y&P). Y&P’snetwork launched in February 2011 and encompasses eighteen different style gurus from around theglobe including Milan, Paris, The Netherlands, London, New York City, Dallas and Los Angeles. EricWilson of The New York Times stresses that fashion blogs have made remarkable strides in gainingboth readership and higher profiles.4 By becoming a part of Y&P’s growing network, JCP will become anintegral part of honest conversations that appeal to the style of everyday women.Glamour.com receives three million impressions per month and is expanding overall readership bypromoting the Y&P network.5 Thus, this partnership will increase JCP awareness among the rapidlygrowing segment of the target that actively engages with fashion websites and blogs. JCP clothes andstyle tips will be incorporated into a different blog each month. Bloggers will wear and style JCP clotheson their personal pages that will correspond to potential in-store appearances.TAG has received a favorable response from Jenny Bowman, Creative Services Director at Glamour,concerning exploring the possibility of this partnership.6 We recommend this partnership beimplemented throughout the campaign.No New Apparel PartnershipsJCP’s partnerships with Mango, Aldo and Liz Claiborne 7 positions JCP on the edge of fast-fashiontrends and strengthens its overall fashion perception. Adding other apparel lines would clutter anddetract from these three signature brands. Utilizing MNG as an anchor brand will draw our targetaudience into the unique store-in-store experience. Furthermore, the addition of the Call It Springline by Aldo allows JCP to offer our target consumer the spectrum of items she most often purchasesfor herself. The immense selection of footwear and handbags offered by Call It Spring, along with theapparel choices offered by MNG and Liz Claiborne, will substantially enhance the value perception ofJCP in the minds of targeted shoppers.TAG’s mind map primary research indicates that women in our target do not take an interest incelebrity clothing lines, and so, adding another new line to JCP would be unnecessary, confusingand ineffective. Further, the target is not swayed by clothing lines designed by high-end fashiondesigners. Females 25-34 do not place as much emphasis on brand name as they do on value perceptionand quality. Therefore, TAG does not recommend a new apparel partnership; rather, we suggestemphasizing the recently obtained partnerships that have vast potential to step-up JCP’s overall styleand value perception. 4 Wilson, Eric. “Bloggers Crash Fashion’s Front Row.” The New York Times. 24 Dec. 2009. Web. 08 Mar. 2011. <http://www.nytimes. com/2009/12/27/fashion/27BLOGGERS.html>. 5 Email conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011.6 Conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011.7 Liz Claiborne helped lift JCP profit 36% in fourth- uarter 2011; MNG soon to follow: D’Innocenzio, Anne. “Liz Claiborne Helps Lift J.C. q Penney Profit 36% - USATODAY.com.” USA Today. 25 Feb. 2011. Web. 15 Mar. 2011. <http://www.usatoday.com/money/companies/ earnings/2011-02-25-jcpenney_N.htm>.
Community RelationsTAG’s community relations objective is to increase the target’s awareness of JCP’s role in aiding itsfour primary philanthropies: Boys & Girls Clubs of America, YMCA of the USA, National 4-H andFIRST. To accomplish this, TAG proposes three recommendations, which are described below.Personalizing Local Charitable DonationsTAG recommends that JCP make it easier for shoppers to visualize the impact of JCP’s donationsto its four primary charities. This will be accomplished by expressing JCP’s donations at the localcommunity level and in human terms. This will help to give the target audience a more concrete ideaof how powerful JCP’s donations are at their community level.Rather than stating that JCP donated $4.7 million to after school programs in 2009, TAGrecommends expressing the appropriate amount in terms of its impact on each local community. Forexample, “the Round-Up efforts provided x,000 children in Austin, Texas with a safe, educationallyrich after school program in 2009.” Such points would be communicated using in-store signage or viaJCP.com.Boston College Center for Corporate Citizenship (BCCCC)TAG recommends that JCP enter BCCCC’s Film Festival highlighting corporate engagement in localcommunities. This will allow JCP to promote its efforts to better communities across the nation. TheBCCCC program has widespread coverage with links to the films accessible through Facebook andTwitter. Past participants include FedEx, PriceWaterhouseCoopers, Coca-Cola, Microsoft, AT&T andAllState.Athletic Gear DonationsBecause JCP focuses heavily on supporting the YMCA and the Boys & Girls Clubs, this creates aunique opportunity for JCP to emphasize in-kind donations of athletic gear during the 2010 SummerOlympics. TAG recommends JCP make in-kind donations supporting summer athletic programsoperated by the YMCA and the Boys & Girls Clubs. This activity will be communicated to targetedshoppers through in-store signage and via JCP.com. “I deserve high quality, without the high quality price, unlike Macy’s.” - Lauren Timm, Age 26
As described in presenting the media alternatives, TAG recommends the use of conversionmetrics and end-goals to track the success of the campaign. Specifically,TAG will measurein-store and online traffic and sales, online behavior, social media audiences, emailmemberships, and attitudinal measures of the campaign’s effects.Attitudinal data on the campaign’s effectiveness will be collected before, during and afterthe completion of the campaign. These data will be gathered and analyzed by a professionalresearch firm, this effort is budgeted at $350,000.In order to build the strongest and most successful campaign, TAG’s media team hasincorporated testing, measuring, optimizing, and repeating. Continuously monitoring andadjusting the media plan will help to optimize the plan’s impact and maximize JCP’s returnon ad spend.Note that advertising and other IBP programs have a cumulative and delayed or carry-over effect for retail stores, and the full impact of the creative and media exposures willextend beyond the campaign’s one-year life. The benefits of this carry-over effect will not bemeasured.
FEB MAR APR MAY 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 :30 spotsTelevision Bachelor/Bachelorette Sponsorship National MagazinePrint People StyleWatch Takeover Pandora Page TakeoverRadio Pandora Radio Spots :30 spots (traditional)Online Display JCP AppMobile ShazamOutdoor Bus Stop Shelter Takeovers Facebook, TwitterSocial Media Blog - Young and Posh Social Couponing - GrouponSponsorship Carrie Underwood SponsorshipContingency Cost % of Budget TRPs/IMPs :30 spots $49,825,000 50% 8,089,800,000Television Bachelor/Bachelorette Sponsorship $4,500,000 5% 11,500,000 National Magazine $17,449,652 17% 200,193,927Print People StyleWatch Takeover $2,000,000 2% 3,750,548 Pandora Page Takeover $2,000,000 2% 100,000,000Radio Pandora Radio Spots $2,200,000 2% 550,000,000 :30 spots (traditional) $2,602,720 3% 282,380,800Online Display $6,559,500 7% 101,000,000 JCP App $0 0% 76,000Mobile Shazam $2,000,000 2% 4,000,000Outdoor Bus Stop Shelter Takeovers $4,500,000 5% 2,250,000 Facebook, Twitter $0 0% 1,604,000Social Media Blog - Young and Posh $0 0% 684,000 Social Couponing - Groupon $2,000,000 2% 450,000Sponsorship Carrie Underwood Sponsorship $500,000 <1% 10,000,000Contingency $3,863,128 4% -Total $100,000,000 9,357,689,2751. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf2. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf 3. SRDS Consumer Magazine Consumption 20104. In a New Yorker First, Target to be Sole Advertiser, http://www.nytimes.com/2005/08/12/business/media/12adco.html5. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mm- and-do-125mm-in-2010/6. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mm- and-do-125mm-in-2010/ 7. Average Radio Cost by Market, http://costofradioadvertising.com/8. Digital Media Pricing Models by Pricing Method, http://cfpnyc.com/digital-media-advertising-models-by-pricing-method.html#more-1749. Clear Channel Outdoor Assets, http://www.clearchanneloutdoor.com/assets/downloads/media-planning-guide/2010-11-eyeson-rates.pdf
JUN JUL AUG SEP OCT NOV DEC JAN1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 <1% 2% 4% 2%Budget Appropriations by Medium 5% 7% Television Outdoor Print Social Media 5% 53% Radio Events 21% Online Contingency Mobile
Online Television Monthly Purchased Network (Index) Cost Per Spot Average Imps Frequency Total Imps Total CostWebsite CPM Cost Reach Imps ABC $150,000 4,000,000 50 200,000,000 $7,500,000Display NBC $130,000 1,500,000 50 75,000,000 $6,500,000Facebook 18,000,000 15,000,000 0.75 $11,250.00 FOX $135,000 4,500,000 45 202,500,000 $6,075,000Blogspot 160,000 10,000,000 0.75 $7,500.00 Style (209) $45,000 50,000 50 2,500,000 $2,250,000msn.com 150,000 8,000,000 0.75 $6,000.00 E! (174) $80,000 1,200,000 75 90,000,000 $6,000,000ebay.com 150,000 4,000,000 0.75 $3,000.00 WE tv (167) $45,000 400,000 65 26,000,000 $2,925,000diaperswappers.com 3,300 1,000,000 0.75 $750.00 Bravo (150) $75,000 900,000 100 90,000,000 $7,500,000mycharmingkids.net 2,700 750,000 0.75 $562.50 Oxygen (148) $55,000 500,000 65 32,500,000 $3,575,000favoriteideas.com 2,000 750,000 0.75 $562.50 ABC Family (137) $75,000 433,000 100 43,300,000 $7,500,000Monthly Total $29,625.00 Total 13,483,000 600 8,089,800,000 $49,825,000Yearly Total $355,500.00 PrintRich Media Full Page 4Cyoutube.com 240,000 10,000,000 6.00 $60,000.00 Category Magazine Circulation Total Impressions Frequency Total Cost Price/Issueweather.com 100,000 7,000,000 6.00 $42,000.00 Baby American Baby 2,002,940 24,035,280 $450,000 Monthly $5,400,000netflix.com 84,000 5,000,000 6.00 $30,000.00 Bridal Modern Bride 331,049 1,986,294 $62,532 Bi-Monthly $375,192Amazon 240,000 2,500,000 6.00 $15,000.00 Parenthood Parenting 2,176,843 23,945,273 $136,020 11x a year $1,496,220Monthly Total $147,000.00 Family Circle 3,953,651 47,443,812 $220,000 Monthly $2,640,000Yearly Total $1,764,000.00 Fashion Elle 1,060,634 12,727,608 $116,145 Monthly $1,393,740Pre-roll Redbook 2,350,000 28,200,000 $103,400 Monthly $1,240,800Hulu.com 3,400,000 15,000,000 10 $150,000.00 Lifestyle People 3,750,548 45,006,576 $241,975 Monthly $2,903,700ABC.com 466,900 10,000,000 10 $100,000.00 whole issue Whole mag $2,000,000NBC.com 1,300,000 7,000,000 10 $70,000.00 Epicurean Cooking Light 1,716,636 10,299,816 $94,600 Bi-Monthly $567,600Fox.com 29,043 5,000,000 10 $50,000.00 Health Health 1,356,227 10,299,816 $89,000 Bi-Monthly $534,000Monthly Total $370,000.00 Total 203,944,475 $17,449,652Yearly Total $4,440,000.00 *All circulations and pricing was gathered from the 2010 SRDS Magazine Consumption book. Complete Total 101,000,000 $6,559,500.00 Radio Pandora Cost (CPM) Impressions Total Cost Page Takeover $20 100,000,000 $2,000,000 Audio Spot $4 550,000,000 $2,200,000 Total 650,000,000 $4,200,000 Terrestrial Markets Spots/Week Cost /Week Frequency Total Costs Imps/Week Total Imps (Weeks) New York 50 $70,250 16 $1,124,000 5,197,300 83,156,800 Los Angeles 50 $44,950 16 $719,200 4,027,200 64,435,200 Chicago 50 $18,100 16 $289,600 1,868,000 29,888,000 Houston 40 $10,560 20 $211,200 2,152,700 43,054,000 Phoenix 40 $6,720 20 $134,400 1,155,600 23,112,000 Philadelphia 35 $3,080 12 $36,960 1,471,300 17,655,600 Dallas 35 $7,280 12 $87,360 1,756,600 21,079,200 Total 300 $2,602,720 282,380,800 *Rates and imps are averaged for the top performing stations in each market. Arbitron, http://www.arbitron.com/home/mm001050.asp. Rates for Radio-info. com/markets
“2010 Public Transportation Fact Book.” American Public Transportation USA Today. 25 Feb. 2011. Web. 15 Mar. 2011. <http://www.usatoday.com/ Association. Accessed February 17, 2011. Last modified April 1, 2010. money/companies/earnings/2011-02-25-jcpenney_N.htm>. http://www.apta.com/resources/statistics/Documents/FactBook/AP TA_2010_Fact_Book.pdf. “Macy S Inc (M.N) Financials | Reuters.com.” Business & Financial News, Breaking US & International News | Reuters.com. Web. 27 Mar. 2011.Barkley Evergreen & Partners, Inc, & Chabria, A. (2005, October 24). <http://www.reuters.com/finance/stocks/financialHighlights?symbol=M. Cause N>. Survey 2005. PR Week, 17-25. Retrieved from http://www.barkleyus. com/ Oches, Sam. “Seattle’s Best Takes to the Skies.” Quick-Service and Fast who_we_are/press_clips/show/32-prweek_barkley_cause_sur- Casual Restaurant News and Information - QSR Magazine. 10 Feb. 2011. vey_2005. Web. 9 Mar. 2011. <http://www.qsrmagazine.com/news/seattle-s-best- takes-skies>.Department Store Retailing. (2010, August). Mintel International Group Ltd. Roper, Pete. “Pandora | Mobile Marketing Guide 2010 | Advertising Age.” Advertising Age Custom Programs. 2010. Web. 15 Feb. 2011. <http://Enright, Allison. “Top 500 - J.C. Penney Taps Chief Information Officer to brandedcontent.adage.com/mobile10/network.php?id=4>. Oversee E-commerce - Internet Retailer.” Industry Strategies for Online Merchants - Internet Retailer. 3 Aug. 2010. Web. 27 Mar. 2011. <http:// Schonfeld, Erick. “Forrester Forecast: Online Retail Sales Will Grow To $250 www.internetretailer.com/2010/08/03/jc-penney-taps-chief-informa- Billion By 2014.” TechCrunch. 8 Mar. 2010. Web. 27 Mar. 2011. <http:// tion-officer-oversee-e-commerce>. techcrunch.com/2010/03/08/forrester-forecast-online-retail-sales-will- grow-to-250-billion-by-2014/>.“Facebook Mobile Tops 100 Million Users.” Marketing Profs. Accessed March 16, 2011. Last modified February 17, 2010. http://www.market- “Shazam Currently Boasts 30 Million Total iOS and Android Users.” The ingprofs.com/charts/2010/3419/facebook-mobile-tops-100-million- Next Web. Accessed March 2, 2011. Last modified January 14, 2011. users. http://thenextweb.com/mobile/2011/01/14/shazam-currently-boasts- 30-million-total-ios-and-android-users/.“Jcpenney – Quarterly Newsletter – Brand Facts – Monthly Sales.” jcpen- ney - Investor Relations - Investors. JC Penney, n.d. Web. 1 Feb. 2011. Siwicki, Bill. “Mobile Commerce - Shoppers Would Rather Use Smartphones <http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-faq>. than Consult Store Associates, Survey Finds - Internet Retailer.” Industry Strategies for Online Merchants - Internet Retailer. 6 Dec. 2010. Web.JCPenney Corporate Social Responisbility Report 2009. (2010, April). Re- 27 Mar. 2011. <http://www.internetretailer.com/2010/12/06/shoppers- trieved from http://www.jcpenney.net/shared/content/CSR/csr_2009/ would-rather-use-smartphones-store-asociates>. index.html “Social Media - Facebook Mobile Tops 100 Million Users : MarketingProfs“J. C. Penney Company, Inc. Reports Solid Fourth Quarter and Full Year Article.” MarketingProfs: Marketing Resources for Marketing Profession- Financial Results Exceeding Sales and Earnings Expectations.” JCPen- als. 17 Feb. 2010. Web. 27 Mar. 2011. <http://www.marketingprofs.com/ ney - JCPenney Home. Web. 27 Mar. 2011. <http://www.jcpenney.net/ charts/2010/3419/facebook-mobile-tops-100-million-users>. about/jcpmedia/corporatenews/articles/J_C_Penney_Company_Inc_ Reports_Solid_Fourth_Quarter_and_Full_Yea,188.aspx>. “Target Corp (TGT.N) Financials | Reuters.com.” Business & Fi- nancial News, Breaking US & International News | Reuters.com.“JC Penney Co Inc (JCP.N) Financials | Reuters.com.” Business & Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ Financial News, Breaking US & International News | Reuters.com. financialHighlights?symbol=TGT.N>. Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ financialHighlights?symbol=JCP.N>. “’The Bachelorette’ Finale Leads ABC to Best Summer Monday Rat- ings in Over 10 Years.” TV by the Numbers. Accessed February“Kohls Corp (KSS.N) Financials | Reuters.com.” Business & Fi- 26, 2011. Last modified August 3, 2010. http://tvbythenumbers. nancial News, Breaking US & International News | Reuters.com. zap2it.com/ 010/ 8/ 3/ he-bachelorette-finale-leads-abc-to- 2 0 0 t Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ best-summer-monday-ratings-in-over-10-years/58979. financialHighlights?symbol=KSS.N>. Wilson, Eric. “Bloggers Crash Fashion’s Front Row.” The New York“Liz Claiborne Helps Lift J.C. Penney Profit 36% - USATODAY.com.” Times. 24 Dec. 2009. Web. 08 Mar. 2011. <http://www.nytimes. com/2009/12/27/fashion/27BLOGGERS.html>. Women’s Attitude Toward Clothing Shopping. (2010, December). Mintel International Group Ltd.
Letter of Agreement Between JCPenney and the Texas Advertising GroupThe Texas Advertising Group (TAG) will provide advertising agency services for JCPenney (JCP)until this agreement is cancelled by either party with 90-days notice. TAG’s services include strategicrecommendations that focus on developing and implementing a targeted and impactful integratedmarking communication plan designed to support and build the JCP brand.Compensation to TAG will be derived from a fee system coupled with a bonus or incentive fee system.Both aspects of this plan are explained below.Fee System(1) TAG will be paid based on billable hours for the work it does, not by how much JCP spends; (2)TAG does not mark-up outside costs incurred on the client’s behalf. All expenses, such as productioncharges, travel, copies, etc. will be billed at net to the client; and (3) TAG’s hourly billing rate is theemployee’s base salary multiplied by a factor to cover overhead costs (120%). A profit percentage (20%)is then added and the sum of these three items represents the costs billed to JCP.Base salaries for TAG’s employees are set yearly using regional industry averages, which are compiledby the AAAA. TAG uses the average regional salary for each job title by department for agencies withgross income between $3.75 million and $7.5 million.Bonus SystemThe bonus system has two distinct benefits to JCP: (1) The bonus will be used to reward the agencybased on their contribution to achieving JCP’s brand health and incidence of consumption objectives;and, (2) allocation of the bonus will be solely at JCP’s discretion, based on JCP’s evaluation of TAG’sperformance against the measurable objectives specified in the marketing objectives section of TAG’splans book.The total amount of the bonus fund equals one-half TAG’s anticipated profit or ten percent (10%) of thetotal salary plus overhead costs that TAG will contribute to the fund. In addition, JCP will match TAG’sallocation and that total will comprise the bonus fund. After an annual review of performance, JCPdetermines what portion, if any, of the fund will be paid to TAG as a bonus.Note that TAG trusts JCP to grade our efforts fairly and award an equitable bonus. TAG believesin accountability and welcomes the challenges of leaving a portion of our compensation tied toperformance. The TAG team assigned to the JCP account is aware of this arrangement and bothwelcome the challenge and expects to share in the rewards. This arrangement helps to build team focusand commitment._________________________________ _________________________________On behalf of JCPenney On behalf of the Texas Advertising GroupDate: __________________ Date: April 14, 2011
Deepa Iyengar or Dustin O’Neal Laci Mosier Julia Meter O’Conn Lillian An Art Director, An Account Planner, A Copywriter and mild Deepa explored the A Media Planner, Julia This Art Director’s mannequins wouldn’t shopaholic, she spots target’s whims and is passionate about style is her canvas from dare wear one of his bargains and blogs interpreted their solving media puzzles head-to-toe. bold ensembles. about them later. accessories to tell and never leaves a store their stories. without a new pair of shoes. ehta Amar M Michelle Trou tt Michael McAfee Dr. John Murphy Tanya Assar Meredith Raico dy‘ Jonny Howle Erin Lan Megan Rid gway Elaine Hirsch cIntosh Simcha M Sabra Thomas Anjali Patel Sonal Modi Christine Risdale Megan McGeeAnthony Hoang fey Nichole Palmietto Kimberly Sher inkard Amber P Rochelle Prins Manuel Hernandez