This was a group project of the JCPenney Company and shows the breaking down of their strategies financially, economically, competitively, etc. These strategies define their operations and its ups and downs throughout the company’s history. This ppt. was made as a visual aid for our presentation back in the Fall of 2012.
BARCO’S INTRODUCTION
PRODUCT LINE STRATEGY BARCO
MEANING OF STATEMENT
DECISION OF SONY ON REJECTION OF BARCOS DECISION
SONY’S OBJECTIVES
MISTAKES BY BARCO
BARCO’S NEXT STEP TOWARDS PRICE & PRODUCT DEVELOPMENT PLAN ?
Dunkin Donuts is an International Doughnut and Coffee Retailer Founded in 1950 in Quincy, Massachusetts by William Rosenberg.
This Presentation will tell us the journey From a Small Donuts Retailer in 1950 and How he Become the Global brand.
For More Details you can Contact me -
My LinkedIn Profile - https://www.linkedin.com/in/naman-makhija-621359167
In this presentation you will find a guide to prepare a presentation that you will be exposing on wednesday. Remember to use the tenses that we practiced last week. The simple present and the simple past.
Case Study- STARBUCKS: JUST WHO IS THE STARBUCKS CUSTOMER?Rajib Mia
Case Study-
STARBUCKS: JUST WHO IS THE STARBUCKS CUSTOMER?
Q-1: Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted coffee market?
Q-2: What changed first- the starbucks customers or the Starbucks Experience? Explain your response by discussing the principle of market targeting?
Q-3: Based on the segmentation variable, how is starbucks now segmenting and targeting the coffee market?
Q-4: Will Starbucks ever return to the revenue and profit growth that it once enjoyed ? Why or why not?
This was a group project of the JCPenney Company and shows the breaking down of their strategies financially, economically, competitively, etc. These strategies define their operations and its ups and downs throughout the company’s history. This ppt. was made as a visual aid for our presentation back in the Fall of 2012.
BARCO’S INTRODUCTION
PRODUCT LINE STRATEGY BARCO
MEANING OF STATEMENT
DECISION OF SONY ON REJECTION OF BARCOS DECISION
SONY’S OBJECTIVES
MISTAKES BY BARCO
BARCO’S NEXT STEP TOWARDS PRICE & PRODUCT DEVELOPMENT PLAN ?
Dunkin Donuts is an International Doughnut and Coffee Retailer Founded in 1950 in Quincy, Massachusetts by William Rosenberg.
This Presentation will tell us the journey From a Small Donuts Retailer in 1950 and How he Become the Global brand.
For More Details you can Contact me -
My LinkedIn Profile - https://www.linkedin.com/in/naman-makhija-621359167
In this presentation you will find a guide to prepare a presentation that you will be exposing on wednesday. Remember to use the tenses that we practiced last week. The simple present and the simple past.
Case Study- STARBUCKS: JUST WHO IS THE STARBUCKS CUSTOMER?Rajib Mia
Case Study-
STARBUCKS: JUST WHO IS THE STARBUCKS CUSTOMER?
Q-1: Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted coffee market?
Q-2: What changed first- the starbucks customers or the Starbucks Experience? Explain your response by discussing the principle of market targeting?
Q-3: Based on the segmentation variable, how is starbucks now segmenting and targeting the coffee market?
Q-4: Will Starbucks ever return to the revenue and profit growth that it once enjoyed ? Why or why not?
En esta presentación he completado una investigación sobre la empresa JCPenney y sus operaciones en Estados Unidos pero particularmente en Puerto Rico. La presentación cubre temas como la vision y misión y el proceso operacional de la empresa tomando en cuenta el servicio al cliente y los procesos de inventario, calidad, mercadeo internacional y procesos de control. Este trabajo fue realizado para la clase de Estrategia de Procesos bajo el cargo de la Profesora Rosa Berlingeri en la Universidad del Turabo.
En este trabajo presento la empresa JCPenney como parte de un trabajo solicitado por la profesora Berlingeri para la clase de Administración y Producción de operaciones en la Universidad del Turabo. Este trabajo escrito complementa la presentación en formato Power Point que he colocado en mi cuenta de Slideshare anterior a el mismo.
Analyzed sales data using market analysis, SWOT analysis, GAP analysis and implemented matrices
Represented graphical charts for sales prediction(Current and Future) using Tableau and identified growth with future prediction
Designed data models, logical models, data mart, data warehouse, relational database, star schema, extended star schema, tables, columns, attributes, relationship (primary, foreign , composite keys), sorting
The past several years JC Penney has made drastic shifts to their pricing strategy and store operations, including several leadership changes. Bringing back CEO Mike Ullman, after an 18-month stint of former Apple retail guru Ron Johnson, has helped to stabilize this classic American brand. Since then, JC Penney has posted two quarters of growth for the first time in several years.
This strategy was presented at my NYU’s Business Leadership class, where we were tasked with analyzing the company’s current leadership and provides our recommendations for a new sustainable strategic approach.
After years of isolating their customers and employees, resulting in industry irrelevance and financial decline, this strategy would bring this American staple brand back to retail prominence. This proposal is meant to take place shortly after Ron Johnson’s departure, prior to the recent growth JC Penney has seen in Q4 ’13.
NYU Team Members:
- Raquel Vicente (designed deck)
- Jessica Aiello
- Yulibel Lamorena
- Alejandro Munoz
Customers aren't for Christmas: a whitepaper from Cherry LondonPhemmie Wilkinson
This Christmas, brands will spend millions trying to entice customers to action – to choose their particular product or service over another, to get their message across, to get their Facebook post liked and shared...
Each will be trying to carve a unique space in people’s hearts “guaranteeing” their share of the Christmas buzz and spend. This year it has started earlier than ever – the blockbuster ads have been out for what feels like weeks, the mince pies are on the shelves and your Christmas ‘essentials’ could be found as early as August on some retailers’ shelves.
But just how important is marketing activity in getting customers to act? Is it even worth it or are people’s minds already made up? What can brands do to really connect? Does investment in a long term loyalty programme help?
And how can Brand Partnerships be used to help cut through in this increasingly over-whelming cluttered world?
Travel Companies Becoming Travel Connoisseurs by Finbar O'NeillFinbar O'Neill
Finbar O'Neill takes a look at how travel companies are moving from simply planning flights and hotels to become true connoisseurs in terms of activities, food and alcohol, and hospitality.
Get Advertising Smart - Realistic Advertising: Aspirational to Honestemmersons1
Brands today are increasingly portraying a more realistic way of life in their advertising. This week's article looks at the reasons for this shift, and who is doing it well.
This is a compilation of the best work I completed during my time at university. It portrays my vast array of skills including: advertising strategy, design, creative content creation, audience profiling, branding, media scheduling, creative briefs, crisis management, press releases, mobile business and many more.
1. 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
2. 2
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
3. 3
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.
4. 4
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
5. 5
“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
6. 6
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
7. 7
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.
8. 8
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.
9. 9
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).
10. 10
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
11. 11
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.
12. 12
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.
13. 13
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.
14. 14
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
18. 18
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).
19. 19
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
20. 20
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