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Current Situation

Industry Overview
With modern department stores and other clothing retailers becoming increasingly competitive, most companies are striving to increase their share of wallet and the frequency in which shoppers return to their stores. Competitors are vigorously searching for new and inventive ways to attract and keep new customers. Business Week reports that women ages 24-54 make 80% of the buying decisions in all homes. This is greatly changing how department stores attract their target audience and what messages they send. It is forcing JCPenney to reevaluate its perceived image and to change its target audience to increase its share of wallet. The simple message of a large selection of cheap clothes is no longer enough to distinguish a company. The current economic situation has customers searching for the best goods per dollar. Although low prices are important, an internal study performed in 2010 by JCPenney shows that most buyers are not willing to sacrifice quality for a cheaper price. They are looking for the best value from well-manufactured goods. Members of the target market are looking for quality, trendy and high-value goods. JCPenneys long term goal must include becoming a one-stop-shop for high quality services and merchandise.

JCPenney Profile
With more than 1,100 stores and $17.8 billion in total revenue in 2010, JCPenney is a major player in American retailing. JCPenney is currently ranked 5th in market share for apparel sales and 3rd for bed/bath products. The U.S. population spends $510 billion each year on the categories that JCPenney sells, and 25 to 34 year olds spend $82 billion. JCPenney offers family apparel, footwear, furniture, accessories, cosmetics and jewelry. Merchandise includes various national exclusive and private brands, which account for 50% of its annual sales. JCPenney also features a variety of supplemental services, including 980 full-service salons, 425 custom decorating centers, one of the nations largest wedding and gift registries and optical centers. The portrait studio provides photo services for all occasions including family portraits and passports. The partnership Sephora inside jcpenney is currently in 231 stores. Plans are to expand that number to 430 by end of 2011. The companys marketing campaign, New look. New day. Who knew! is the start of a reinvention process to distinguish JCPenney from its competitors. Its website is the largest for apparel and home furnishings with customers totaling 6.4 million with an average of 2.0 orders a year. Online 2010 Christmas sales were up 12.9%, ranking JCPenney number one during the holiday season. In February 2011, the company introduced the FindMore kiosk in 120 stores, an updated logo, a spring tagline, We Make It Affordable, You Make It Yours, and the Modern Bride partnership with Cond Nast. The Modern Bride brand features an expanded assortment of stylish, high-quality bridal jewelry from wedding bands to engagement rings.

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Competitive Analysis
Walmart
Walmart is the worlds #1 retailer with 2.1 million employees in more than 8,400 stores, including 800 discount stores, 3,100 discount and grocery stores and 595 Sams Club warehouses. Walmart offers groceries, mens, womens, childrens apparel, accessories, cosmetics, home furnishings, consumer electronics, automotive repair and maintenance, a full salon and family portrait studios. Walmarts current sales are more than $408.2 billion.

Kohls
Kohls operates 1,050 discount department stores in 49 states. More than a quarter of its stores are in the Midwest, where Kohls continues to grow. Over the past few years, Kohls has been aggressively building brand momentum, surpassing JCPenney and Macys in key brand-ranking measures. Kohls specific strength and focus is on its private and exclusive national brand name offerings at competitive prices. Moderately priced namebrand apparel, shoes, accessories and housewares are its main merchandise. Kohls net sales are approximately $17.2 billion.

Target
Target, the nations #2 discount chain, describes itself as cheap chic. The company operates about 1,745 Target and SuperTarget stores in 49 states, as well as target.com. Targets sales have grown steadily since aligning itself with artists, fashion designers and architects to offer designer clothing and artsy home furnishings. Currently, Target has net sales of $65.4 billion.

Sears
Sears is the nations #4 retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears, the leading home appliance retailer, also offers tools, lawn and garden, consumer electronics automotive repair and maintenance. Consumer appreciation of Sears has waned over the past few years, with common perception of the department store hinting towards very low style. Sears net sales are $41.1 billion.

Macys
Macys, the nations #1 department store chain, operates about 850 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the Macys and Bloomingdales banners. Macys specific strength is in its style and national brand name offerings across mens, womens, childrens apparel, accessories, cosmetics and home furnishings and operates macys.com and bloomingdales.com. Macys net sales are $23.5 billion.

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current situation

Target Audience
Overview
Members of the target audience make up 12.9% of the U.S. population, yet they account for 85% of their household purchases. They are optimistic, confident and seek and demand a sense of fulfillment. Communication and friendships are essential, and peers help steer their attitudes and acceptance while creating an extended family. They share information about deals or finds; each has an average of more than 175 mobile or email contacts. Convincing this audience to make a purchase will include convincing her friends. Compared to the general population, the 25- to 34-year-old JCPenney customer is more likely to be Caucasian or Asian, have a higher education and work fulltime. Members of this segment are increasingly technologically savvy and use their third screens to make purchasing decisions. This segment is very environmentally conscious. More than one-third is more likely to pay attention to brands that are committed to environmental causes. They develop a strong brand loyalty making the introduction of new ideas or products difficult. However, they also are a very forgiving segment, as more than half would give a company a second chance. Some have established families, are budget-conscious and want increased style and luxury without an increased price. They often juggle a career, a family and other day-to-day responsibilities. They are also multitaskers and social networkers. This segment can be very indulgent; therefore, they will make purchases at different clothing stores. In order for JCPenney to compete with leading department stores, it must attract the target audience with stylish fashions, great prices and modern advertising.

Demographics

25- to 34-year-old women Known as Millennials, Generation Y, Generation X 65% Caucasian, 16% Hispanic, 13% African American, 5% Asian American Represents 18.4 million households Likely to live in urban areas or second cities than older counterparts 62% cohabiting or married In 2010, 2.1 million births in this age group; 50% of all births 88.4% high school graduate or higher

Lifestyles and Interests


Ratings and reviews are very important in purchasing decisions Value convenience, simplicity and ease Rely on the Internet as a major source of information Creators of their own content More likely than older females to depend on technology and social media to unite friends and family

Cohorts
Single Independents
25- to 34-year-old women without children Purchase triggers include: work wear, nightlife/social wear, weddings and special occasions More concerned with style than price Heavy desire to be seen as individuals More connected to new media for fun and entertainment Heavy listeners of traditional radio Heavy readers of magazines PRIZM: City Start-ups or Young Influentials

Psychographics

Have a sense of discovery Confident, independent and indulgent High self-esteem Transform wants into needs Hesitant to change unless benefits outweigh costs Value health and wellness Friends equal family More likely to seek advice from peers

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Family-Conscious Mothers
25- to 34-year-old women with children Purchase triggers include: physical changes (pregnancy), new baby and work wear More price-conscious More likely to subscribe to digital/satellite radio Moderate readers of magazines, likely to read parenting magazines PRIZM: White Picket Fences, Upward Bound

Media Use

Research shows that the target audience members use their cell phones more than any other media device. They seek user-friendly, informative and attractive websites and are more likely to research a products price and availability online before going to a JCPenney store. Prefer to read direct mail and email blasts than to read newspapers Are light TV viewers but do watch selective network primetime programs and cable networks Are most likely to watch videos online, VOD or on their DVRs Enjoy communicating through Instant Messenger (chat) and social media (Facebook, Twitter) Heavy users of streaming media (video, music etc). 92% pass along information about deals or finds to others 90% have a cell phone 45% use social media at least once a day; watch TV online. 39% access the Internet from cell phone 31% receive text alert messages 27% of Facebook user population is 25- to 34-year-old females 22% shop online at least once a day 19% download apps 8% made purchase from cellphone in last 30 days

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target audience

Supporting Research
Primary Research
Primary research was conducted to gain first-hand information on the target audiences perception and attitude about the JCPenney shopping experience. Four methods of primary research in fall 2010 consisted of focus groups, personal interviews, secret shoppers and surveys.

Research Objectives

To measure perceptions of JCPenneys overall image, services and brands To determine attitudes toward various types of advertising and promotions To discover ideas about enhancing the current shopping experience at JCPenney To identify what triggers a purchase online and in a department store To observe significant differences between ages and the presence of children

Method: Personal Interviews


Significant Findings

Six personal interviews were conducted to gain knowledge of previous shopping experiences at JCPenney.

Participants felt JCPenney was best suited to an older customer base. Most believed that JCPenney lacked an identity.

Method: Secret Shoppers

Method: Focus Groups

Six focus groups were conducted. Participants were comprised of various ethnicities, income brackets and women with and without children.

Seven members of the research team monitored two JCPenney locationsan anchored mall store and a stand-alone storeto determine quality of customer service, store setup and cleanliness.

Significant Findings
Attitudes toward shopping
Most demonstrated a heavy concern for sales and overall pricing of items. Most preferred brand names for shoes, purses, makeup and jeans categories. Most ranked atmosphere as a very important factor in selecting where to shop. Most explained store loyalty came from good customer service and superior selection in categories offered.

Significant Findings
When customers were approached, employees only greeted them and did not ask if they could help them find a product. Displays were often set up in the middle of aisles, making it difficult to navigate.

Method: Survey

Members of the target audience completed 374 surveys concerning their shopping habits. Compared to the total U.S. population, the level of participation ensured a 5.25% margin of error with a 95% confidence level.

Attitudes toward JCPenney


Most stated that JCPenney did not appeal to their generation. Most felt having Sephora in-store was positive. Many agreed that they go into JCPenney looking for something cheap, not something of great quality. Many did not find JCPenneys brands appealing.

Characteristics of Sample
Age: 25 to 29 years old, 56.7%; 30 to 34 years old, 43.4% With children, 44.9%; without children, 54.8% Race: Caucasian, 70.6%; African American, 19%, other, 9.6% Income: $0-39,999, 47.3%; $40,000-79,999, 43.9%; $80,000-100,000+, 7.2%

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Significant Findings
Attitudes Toward Shopping
93.8% believed that the mention of sales and promotions in an advertisement was important. 84.3% found a quick checkout to be an important characteristic while shopping. 67.9% found quality to be more important than price.

Analysis and Recommendations


See shopping as a major part of their lives Price, customer service and return policies are most important shopping attributes Brand loyal toward certain types of products Did not recognize any of the brands JCPenney currently offers Lack of recognizable brands was major discouragement from shopping in store Perceived JCPenney as cheap, unorganized and average Not willing to sacrifice style or quality for a cheaper purchase Because JCPenney is struggling to connect a trendy, fashion forward image with its brand, the task is to find a balance between affordable prices and desirable brands.

Attitudes Toward JCPenney


90.9% were unaware of the JCPenney iPhone application JCPenney Weekly Deals. 81% were unaware of the JCPenney Facebook page. 72.2% believed JCPenney has a respected reputation. 64.1% would recommend JCPenney to family and friends 58.3% had visited the JCPenney website.

Quotes from Research


JCPenney is stuck . . . having an identity crisis. I want to go to Macys because I know I can find Michael Kors, Kate Spade, Coach . . . I like knowing its there. It makes me feel like the other stuff in the store is going to be better quality. I look mostly for accessibility for things. If a rack looks like its been turned upside down and picked back up, I usually walk straight past it. JCPenney is where my grandmother goes to shop or get her hair done. Its important not to spend more money than you have to. So, if I can get something just as nice on sale, whats the point of me paying a regular price? I hate digging through racks when shopping the clearance section at department stores.

Children Differences
Women with children were significantly more likely to choose quality over style than were women without children. Women with children were significantly more likely to be interested in JCPenney advertisements than were women without children. Women with children were significantly more likely to participate in a rewards card program than were women without children.

Age Differences
30- to 34-year-old women were significantly more likely to perform research online before shopping in-store than were 25- to 29-year-old women. 30- to 34-year-old women were significantly more likely to prefer shopping online than were 25- to 29-year-old women.

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supporting research

Marketing
Statement of the Problem
Although JCPenney is one of the largest department store and e-commerce retailers in the U.S. with more than 1,100 department stores, it must overcome several obstacles in order to successfully reach its target audience and increase its share of wallet. JCPenneys target age group represents 16.2% of JCPenneys total market; however, it accounts for only 10.6% of JCPenneys sales. It is predicted that spending by consumers ages 25 to 34 will grow as they increase their family size and household income; however, since they are establishing shopping patterns during this current phase of their lives, JCPenney could miss out on an entire generation of customers. JCPenneys target audience has negative views of the company and its stores. They are looking for trendy clothes of good quality and value and see JCPenney as outdated and out-of-touch with their wants and needs. Lastly, they are using their third screenscell phones and other portable media playersmore than ever, and JCPenney is not effectively using this technology.

SWOT Analysis
Strengths
Current merchandise partnerships include top brands such as Sephora, Mango and Aldo. JCPenney produces more online purchases than its two main department store competitorsMacys and Kohls. JCPenney ranks above its two main competitors in customer service. JCPenney has the largest department store salon chain with 980 full-service salons. JCPenney has a strong charitable brandJCPcares.

Opportunities
JCPenney boasts established locations in shopping malls offering potential for high traffic. JCPenney can use new forms of media and technology to separate itself from its competition. JCPenney can reinvent its image to appeal to the target audience. JCPenney can use viral marketing and social media to reach its target audience with relatively low cost. JCPenney can partner with recognizable brands to update its image and appeal.

Threats
The competition is investing in the same target audience, which could steal customers from JCPenney. JCPenneys competitors have signature events, such as the Macys Thanksgiving Day Parade and the Big One Day Sale, which build high awareness among consumers. JCPenneys competition offers name brands that are popular with the target audience.

Weaknesses
JCPenney ranks last in brand commitment against its competitors. JCPenney ranks last in market share for apparel with the target. JCPenney is not recognized as a destination for quality brands. JCPenneys clothing is perceived as cheap. JCPenney is viewed as old-fashioned and outdated. Older stores are aging and in need of an updated, modern look. Members of the target audience do not readily recognize JCPenney advertisements.

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Objectives

To acquire female customers ages 25 to 34 To retain female customers ages 25 to 34 To increase shopping frequency and grow share of wallet among current female customers in the target audience To develop and establish a new store image that is more appealing to a younger target age group To establish JCPenney as a relatable and up-todate department store

Use social media and technology


Social media is more than just a fad. Social media presents numerous opportunities for businesses that might otherwise cost a company millions of dollars in advertising spending. Social media allows a business to monitor what their competitors are doing and what other people are saying about them. The following are specific methods in which this campaign will use social media: Use the JCPenney Facebook and Twitter pages to increase connectivity between the store and the target audience. Use the JCPenney YouTube channel to help the target relate to the company and create content. Use the JCPenney smartphone/iPad app and mobile messaging to keep the target updated on new products, fashion trends, sponsorships and events. Create several microsites to drive JCPenney customers to the JCP Style Generator and the JCPenney mobile app.

Strategies and Rationales


Develop a three-phase campaign with a pre-campaign period
Pre-campaign: January 2012 Phase One: February to May 2012 Phase Two: June to September 2012 Phase Three: October to January 2013

Introduce JCP Style Generator


The JCP Style Generator will be a free-standing kiosk located in all JCPenney stores. The software for the recently-introduced FindMore kiosk could be replaced by the JCP Style Generators software because it allows for more applications. The in-store touch screen JCP Style Generator will generate suggestions for customers styles, serve as a merchandise locator and access the stores inventory, JCPenneys database, bridal and baby registries. The name JCP Style Generator is currently not copyrighted. Software will allow users to input information about a style of clothing, jewelry, shoes, bedding or furniture, and the JCP Style Generator will offer suggestions to complete the ensemble or decorate rooms. Based on information about the users complexion and skin tone, makeup options also will be suggested. Because of promotions that include points for JCPenney Rewards members, the JCP Style Generator will allow users to post their creations to their Facebook and Twitter pages. If the user is a JCPenney Rewards member, the JCP Style Generator will accumulate rewards points. If the user is not a JCPenney Rewards member, it will allow her to sign up. The JCP Style Generator will make the virtual closet unnecessary and will integrate the Look Book and Little Red Book. Two JCP Style Generators will be placed in each store during the first year of the campaign.

JCP Style Generator

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marketing

Upscale brand selection


JCPenneys current branding strategy includes offering merchandise that reflects the full range of its targets four lifestylesconservative, contemporary, modern and traditional and offering three brand familiespower brands, destination brands and concepts. Power brands are top private brands that are well known and build customer loyalty. These include St. Johns Bay, Worthington, cooks and Linden Street. Destination brands are private, exclusive and national brands that offer quality and value at the best price points. These include private (Ambrielle), exclusive (Cindy Crawford Style) and national (Dockers). Concept brands differentiate JCPenney, create a deeper emotional connection with customers and bring new customers to JCPenney. These include American Living, Call it Spring, MNG by Mango, Modern Bride and Sephora inside JCPenney. Strong brands do not just meet rational needs; they create emotional reactions. To leverage its branding strategy and encourage new customers, JCPenney should continue to add to its brand inventory. Research shows that the target audience associates high-end brand names with quality services and products; therefore, strategically adding new brands will attract new customers while maintaining the current loyal customers. Additionally, to strive for consistency in all stores, Sephora should be added to every JCPenney.

Partner with established companies to manage the supplemental services


JCPenney will partner with established brands to attract new customers and create a more reputable perception for the services. As an incentive, JCPenney will cover all renovations according to their specifications.

Suggested supplemental service partners:


LensCrafters The stores offer prescription frames and sunglasses, contact lenses and vision exams by an on-site optometrist. LensCrafters has recently begun remodeling stores and boosting the supply of fashionable, designer prescription frames and sunglasses. By upping the fashion quotient, LensCrafters hopes to convince its customers to replace their glasses and sunglasses more frequently with the latest styles. Regis Salon Regis Corporation is the beauty industrys global leader in beauty salons and hair restoration. The company believes that employees are the competitive advantage. Regis is an affordable, upscale salon with well-trained stylists who stay up-to-date with modern trends. Olan Mills Inc. Olan Mills is the worlds leading producer of family portraits, with hundreds of photo studios across the USA. The company has several current partnerships, including Toys-R-Us. The company has seen a large increase in revenue from its partnerships and would be a strong candidate to partner with JCPenney.

Suggested new brands include:


Accessories/Shoes Fossil Gianni Bini Jessica Simpson Nine West TOMS Clothing Calvin Klein DKNY Kenneth Cole Levis Lucky Brand Silver Housewares/Furniture All-Clad by Emeril Paula Deen Rachael Ray Wolfgang Puck

Redesign and remodel stores


Research shows that the typical JCPenney store layoutprimarily in the older storesdoes not appeal to the target audiences ideal shopping experience. Suggested changes include: Use brighter lighting in all locations. Place clear and easily-viewed signage to increase the efficiency of traffic flow and encourage the exploration of new areas. Place supplemental services toward store entrances to increase traffic. These renovations should be part of a long-term remodeling strategy.

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Revamp JCPenney Rewards Program


Currently, the JCPenney Rewards Program only is connected to registered credit cards; however, customers enrolled in the new free Rewards Program will be able to attain points using the following social media: Liking the JCPenney Facebook page. Following JCPenney on Twitter. Retweeting JCPenney tweets on Twitter. Visiting the JCPenney microsites. Using the JCPenney smartphone app. Commenting on and reposting Hauler YouTube videos to Facebook or Twitter. YouTube Hauler videos will be used to promote new JCPenney merchandise purchased by YouTube subscribers. Customers will still have the ability to earn points by registering their credit cards with the rewards program and make purchases in store and online for both regular and sale-priced merchandise. Using the JCP Style Generator to create looks to upload.

Execute national campaign while emphasizing top 20 DMAs


2010 Top 20 DMAs* DMA
New York Los Angeles Chicago Philadelphia Dallas/Ft. Worth San Francisco Boston Atlanta Washington, D.C. Houston Detroit Phoenix Seattle/Tacoma Tampa/St. Pete Minneapolis/St. Paul Denver Miami/Ft. Lauderdale Cleveland/Akron Orlando/Daytona Sacramento

TV Homes
7,493,530 5,659,170 3,501,010 2,955,190 2,544,410 2,503,400 2,410,180 2,387,520 2,335,040 2,123,460 1,890,220 1,873,930 1,833,990 1,805,810 1,732,050 1,539,380 1,538,090 1,520,750 1,455,620 1,404,580

Expand JCPenney database


The database will give JCPenney access to customer information to further engage and provide them with personal advertising and opportunities to earn reward points and discounts toward JCPenney merchandise. As the database grows, JCPenney will be able to target its advertising and expand its customer base. Methods to gather names for the database include: The JCP Style Generator will collect data about the customers personal style, including clothing, accessories, homewares, furniture, along with purchasing behavior and patterns. Customers who sign up for bridal and baby registries. Rewards Program members and non-members who post JCPenney-related content on Facebook, Twitter or YouTube.

*Represents 51% of the population.

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Branding
JCPositioning
JCPreferred
Of the 6.3 million JCP Rewards members, 500,000 million are 25 to 34 year olds. Currently, reward members earn one point for every $1 they spend on regular and sale-priced merchandise in stores or at jcp.com with their JCPenney Rewards Credit Card or another registered card. In the revamped program, JCPenney customers will also be able to earn points through social media and the JCP Style Generator. JCPenney has positioned itself as a uniquely designed store with exclusive brands and supplemental services. Its goal is to create exceptional products and services for the best customer value. In positioning its stores, JCPenney has focused on several strategies: specific brands, online sales, supplemental services and the JCPenney Rewards program. By presenting these attributes with a new and exciting approach, JCPenney can effectively reach the target audience.

JCProducts
Primary research indicated that the target audience connected value with quality brands. Focus groups revealed that the target audience found JCPenneys current brands to be unappealing and old-fashioned. Although JCPenney has national brands, the current advertising seems to focus on the in-house JCPenney brands and not the well-known national brands. One of the main focuses of this campaign will be to effectively communicate JCPenneys new brands with the target audience.

JCPossible

By combining JCPenneys existing strategies and implementing newer, up-to-date concepts, JCPenney will be able to more effectively reach its target audience. Creative strategies will focus on the target audiences need to identify with JCPenney and promote new, fashionable brands. Primary research has shown that these are the most important attributes related to the shopping experience.

JCPlugged-In
Research show that 69% of women use the Internet to make purchases. Since November 2010, JCPenneys online sales have increased 12%. With this campaign, customers will have access to jcp.com not only through their second screen (computer) but also through their third screen (smartphone). JCPenney must extend its online presence beyond its website.

JCPartners
JCPenney currently offers three supplemental servicessalons, optical centers and portrait studios; however, none are partnered with national businesses and not all stores have the three services. This campaign recommends partnering with national, well-known companies, which would create consistency among the stores and increase customer traffic.

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IC Schedule & Budget


PreCampaign Jan12 MEDIA Tradi2onal ConsumerMagazines CableTV Internet LocalCableTV NetworkTV DirectMail Cinema LocalRadio NonTradi2onal InternetTV MallDisplays InternetRadio Groupon InteracWveGaming Wallscapes MobileProjecWons SPONSORSHIPS ProjectRunway JCPenneyGiZCardGiveaway America'sNextTopModel CustomerAppreciaWon GMA/JCPSummerConcert SusanG.Komen SOCIALMEDIA StyleGenerator Youtube Twi`er Facebook Microsites Smartphone/iPadApp TOTAL PhaseI Feb March April May PhaseII June July Aug Sept PhaseIII Oct Nov Dec 13Jan Expenditures $67,410,777 $36,150,777 $12,747,827 $8,499,600 $4,617,000 $3,245,760 $3,000,000 $576,000 $2,928,350 $536,240 $31,260,000 $10,000,000 $9,960,000 $4,000,000 $3,000,000 $2,500,000 $1,000,000 $800,000 $8,862,900 $3,500,000 $241,000 $510,000 $840,000 $2,614,400 $1,157,500 $12,177,000 $12,177,000

$88,450,677

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Social Media
Overview
By establishing and maintaining a strong presence in the social media world, JCPenney will connect directly with its target audience in the most efficient manner.

Smartphone/Tablet App

Currently, the JCPenney app includes good information, but most members of the target audience are unaware of its availability. A new JCPenney Smartphone/ Tablet app must be updated to include: An option to sign up for coupons/mobile alerts via mobile messaging The JCP Style Generator Store locator Links to JCP.com, Twitter, Facebook and other microsites An option to check a rewards members point status A link to post personal videos or referrals for specific JCPenney products A JCPenney QR code reader Platforms for the application will include the iPhone, iPad, Android network, Windows Mobile 7 and Palm OS.

JCPenney Twitter page will feature: Links to JCP.com, the JCPenney Facebook page and JCPenney microsite Daily tweets about the JCPenney campaign Information about sponsorships and events Other incentives for following the JCP Twitter account such as special deals or discounts

YouTube/Hauler Videos/ Viral Marketing

Facebook Page

Facebook offers JCPenney an opportunity to continually connect with the target audience, including the current 116 millions users in the USA. By connecting the JCPenney Facebook page to their personal account, members can earn rewards points, receive specialized offers and updates and create or view personal Hauler videos. 25- to 34-year-old females represent 27% of the Facebook user population Ratings and reviews are important to this demographic Between 35-45% of the target audience use Facebook at least once a day About 13% of them are fans of JCPenney on Facebook

Customers will be encouraged to post videos of their items purchased at JCPenney on social media sites such as Facebook and YouTube. They will be rewarded with JCPenney rewards points and exclusive discounts. Instructions will be listed on each website as to how to post a video and what to include. Individual haulers will be instructed to be honest. If they love the product, they will tell their friends. If they do not, they should tell JCPenney. This consumer-generated content will act as a two-way communication between JCPenney and the target audience. The best videos will be featured each week on JCP.com throughout the campaign.

Microsites
Stylegenerator.com
An online and mobile version of the JCP Style Generator Microsite will direct viewers to the nearest JCPenney location or the JCPenney website to make a purchase

JCPafterdark.com
Microsite will notify customers of the nearest JCPenney after dark party as well as a schedule and calendar for the years sponsorships and events

Twitter Page

Twitter offers JCPenney an opportunity to reach the target audience, including the more than 25 million users in the USA. Users will be able to track JCPenneys campaign via Twitter and communicate with JCPenney. The

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JCPconcerts.com
Microsite will follow the Good Morning America summer concert series sponsored by JCPenney. Microsite will be the go to destination for a list of performers, summer concert schedule and posted links for the artists and their content.

JCPink.com
Microsite will provide race schedules and locations about the Susan G. Komen Race for the Cure. A link to sign up will be included. Microsite will explain the new JCPink line.

YourJCPchoice.com
Microsite will provide details about the Project Runway sponsorship. Fans will vote whether to carry the design created on the show in JCPenney stores.

Quick Response (QR) Codes


Quick Response codes will be on all print executions. A QR code reader will be embedded in the new JCPenney app and will link the barcodes to the interactive microsites as well as JCP.com. QR codes are free of any license.

JCPrewards.com
Microsite will provide details about upcoming promotions and sales targeted towards JCP Rewards card members. Microsite will include a link to sign up for the Rewards Program. Rewards member can see how they rank among their peers and compete to see which member has the most JCPenney points. Microsite will include a link to Stylegenerator.com.

Try this!

Facebook Places/ Foursquare/Yelp

These GPS tracking applications allow users to make a social post displaying their geographical location. When rewards members check in at a JCPenney, rewards points will be automatically added to their profile. This location-based update will be sent to their social media sites informing their friends they are currently shopping at a JCPenney.

After Dark Microsite

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social media

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Creative
Overview
The lifestage theme establishes a foundation for the campaign. Research determined that the creative should focus on the target audiences need to identify with JCPenney. Because the target audience is tech savvy, the creative concept will extend beyond traditional media to interactive media, including the microsites, Internet banners, Facebook, viral marketing, QR code and smartphone apps.

Objectives

To reposition JCPenney as a stylish and up-todate retailer To establish consumer awareness of new brands and updated supplementary services (optical, portraits, salon) To increase consumer awareness of current brands and products To establish consumer awareness of the JCP Style Generator

storyboards for the JCPenney campaign. Topics discussed included: concept, branding, visual appeal, use of logo and effectiveness.

Significant Findings
The updated JCP scrolling logo concept was well received. Several participants stated that they felt this concept was relatable and memorableI feel like I could Google that [JCP scrolling logo]. Participants responded positively to the lifestages concept, which reaffirmed the importance of their purchasing triggers. Participants enjoyed the modern look and feel of the creative executions and said they could imagine themselves in the ads. When presented with the concept of the QR code in the print executions, participants were enthusiastic about having access to the items featured in the advertisements. I love using the QR code. Ive gone through a magazine and scanned every code. Participants stated that if brand names were included in the ads, they would only be interested in the higher profile brands, like Calvin Klein.

Strategies

Begin with a teaser campaign Use the new jcp logo in every creative execution to expand upon the updated branding strategy Incorporate different lifestages and JCP scrolling logo to create interest in JCPenneys products and services Use engaging copy and imaginative visuals to appeal to the target

JCP scrolling logos

Theme

Concept Testing
Purpose:
To test the concepts for their effectiveness and likeability

Method
A focus group was held with members of the target audience. Individuals were shown print ads and television

The lifestages theme will be integrated with the JCP scrolling logo. Messages will make an emotional connection with the target audience members by appealing to their purchase triggers, which include having a career, dating, getting married, having children and other special occasions. The JCP scrolling logos will be combined with the lifestages theme to create a simple, catchy and emotionally-charged campaign. Words such as perfect, parents and pampered appeal to the target audiences purchase triggers. Copy will emphasize that JCPenney has what members of the target audience need, regardless of their lifestage.

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Mandatories
JCPenney website: jcp.com JCP scrolling logos Updated logo Brand Positioning Strategy

Teaser Campaign
The teaser campaign15-second TV spots, mobile projections and Internet skyscraperswill introduce the updated jcp logo, the JCP scrolling logos and the JCP Style Generator. All executions will be consistent with the scrolling logos and the lifestages theme. All executions will cycle through six frames showing each scrolling logojcpampered, jcperfect, jcparent, jcpartners, jcp. com, jcpenney. The full-motion skyscraper will include links to the JCPenney website.

15-Second Teaser TV & Mobile Projections

Music: In. The JCP logo drops into the frame.

Music: Continues The JCP logo slides to the left and ampered falls into place next to it from above. VO: JCPampered

Music: Continues ampered slides out of the bottom of the frame as erfect lands from the top in its space. VO: JCPerfect

Music: Continues erfect slides out of the bottom of the frame as arent lands from the top in its space. VO: JCParent

Music: Continues erent slides out of the bottom of the frame as artners lands from the top in its space. VO: JCPartners

Music: Continues artners slides away. The JCP logo moves right with the .com sliding from behind. The text See what were doing at appears above it. VO: See what were doing at JCP dot com

Music: Fades The floating text and .com slide away into the bottom of the frame. enney slides into place next to the logo. Every Day Matters appears beneath it. VO: JCPenney. Every Day Matters.

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Teaser Internet Skyscrapers

Cable, Network Television


The 30-second spots will engage the audience on an emotional level, showing their potential lifestages. To make a convincing emotional appeal, the spots use the Life Rules concept. Life rules will be used for television because it has the most direct connection with the audience. By providing a life rule, JCPenney can show the consumer that it knows her lifestyle. Each commercial will begin with the red and white gradient screen, a Life Rule and a number. The female announcer explains that while JCPenney understands that while lifestages may be similar, they are not the same, and that JCPenney can meet her style. The JCP scrolling logo, JCPenneys logo, website address and Every Day Matters ends the spot.

Music: In Frame opens with the red and white gradient. Life Rule # 274 drops in. VO: Life rule number two-hundred and seventy four: Every day isnt the same.

Music: Continues Frame moves to an office. A woman of target audience age is shaking hands with a man in a suit. VO: Some days are busy.

Music: Continues Frame switches to a woman eating lunch in a caf. VO: Some days are casual.

Music: Continues. Frame switches to a woman dancing with her friends in a trendy club. VO: And some days are just fun.

Music: Continues Images in a single frame. VO: And we know what your day is like. Thats why no matter if its a chic suit, [Emphatically] the dress, or a frisky top, JCPenney will have you looking and feeling

Music: Continues Frame switches back to the gradient screen as the scrolling logo appears as JCPerfect. VO: JCPerfect.

Music: Fades enney replaces erfect next to the JCP logo, and jcp.com drops out of the box beneath it. Every Day Matters appears beneath both. VO: JCPenney. Every Day Matters.

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Cable, Network Television

Music: In Frame opens with the red and white gradient. Life Rule # 106 drops in. VO: Life rule number one-hundred and six: Every day is priceless.

Music: Continues Every day is priceless. Frame moves to a pregnant couple, looking at a sonogram. VO: Whether its the first kick...

Music: Continues Frame moves to couple with a toddler. VO: The first words

Music: Continues. Frame moves to mother and father with children. VO: Or the first day of school.

Music: Continues Images in a single frame. VO: We know you dont want to miss a single moment. Whether its the first picture frame, the first pair of shoes or the first school uniform, JCPenney will make sure youre the perfect

Music: Continues Frame switches back to the gradient screen as the scrolling logo appears as jcparent. VO: JCParent

Music: Fades enney replaces arent next to the JCP logo, and jcp.com drops out of the box beneath it. Every Day Matters appears beneath both. VO: JCPenney. Every Day Matters

Viral Marketing/Hauler Video


Video haulers will help create a buzz about JCPenneys new brands, products and services. Haulers are self proclaimed fashionistas who show off their purchases on sites like YouTube and Facebook. These videos act as short product reviews with the haulers talking about everything from chic dresses to quality bedding. They also give their opinion on the quality of the purchased products, in turn making them unofficial spokes models for a company. These hauler videos are the perfect marriage of two things the target audience lovesshopping and technology.

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Consumer Magazines
The print advertisements seek to build an emotional connection with the target audience by appealing to their purchase triggers through the use of three main elements. The first element is the scrolling logo, which sets the overall theme for the ad. The second element, three visual images, will showcase various lifestages related to the scrolling logo. The third element is the body copy, which connects the consumer with JCPenney on a personal level. Each ads copy ends stressing that JCPenney has what the consumer needs. This emotional approach is necessary to acquire and retain the target audience. Headline:
The chosen jcp scrolling logo, at the top right corner, draws reader attention and reflects the lifestage theme.

Visuals:
The three images are visually related to the chosen JCP scrolling logo (Pampered, Perfect, Parent, etc.) and the targets purchase triggers. The visuals help the consumer distinguish how JCPenney can meet her various needs no matter what her lifestage.

Copy:
The copy connects on a cognitive level with the consumer by literally drawing the audience into the ad, causing them to imagine themselves in the lifestage.

QR Code:
This code makes all print executions interactive, connecting the consumer to jcp.com and microsites to determine brands and services featured.

Brand Positioning Strategy:


Every Day Matters complements the lifestages theme. The strategy, combined with the visuals and copy will make an emotional connection with the target audience.

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Consumer Magazines

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Internet Banner
JCPenney will increase awareness and provoke curiosity about its products and services through the creation of full-motion leaderboard banners with links to the JCPenney website. The visuals and copy tone will remain consistent with advertising in all other executions and will reinforce the emphasis on the JCP scrolling logos and lifestages theme. All banners will cycle through five frames showing off each scrolling logo (jcpampered, jcparent, jcpartners, jcperfect, jcpenney).

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Mall Displays

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Wallscapes

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Media
Overview
The media plan gives JCPenney the opportunity to position itself with the 25- to 34-year-old target audience as a premier shopping destination. To promote its new image and connect with the target audience in a unique and interactive way, JCPenney must combine traditional and non-traditional media to effectively reach its target audience.

Objectives

To effectively reach 70% of the 25- to 34-year-old target audience with an average frequency of 3.3 To give media support to an integrated campaign, including sponsorships, events and partnerships

Phases
Pre-Campaign
Implement teaser campaign to spark curiosity of an updated JCPenney Devote approximately 3% of media budget Use Internet and national cable television Use mobile projections in the top 20 DMAs

Strategies

Use a three-phase campaign with a pre-campaign period Spend 70% on national media and 30% on local media Spend 53.6% on traditional media and 46.4% on non-traditional media Use Internet, cable television and mobile projections in the pre-campaign period Use national continuous base of consumer magazines, cable television, Internet, Internet television, Internet radio and interactive gaming Heavy-up in the top 20 DMAs with a continuous base of cinema, spot cable, Groupon and mall displays Flight spot radio, direct mail and wallscapes in the top 20 DMAs Flight network television

Phase I
Devote approximately 36% of media budget Begin national continuous base of consumer magazines, cable television, Internet, Internet television, Internet radio and interactive gaming Begin continuous local cinema, spot cable, mall displays and Groupon in the top 20 DMAs Flight spot radio, direct mail and wallscapes in the top 20 DMAs Flight network television

Phase II
Devote approximately 31% of media budget Maintain national and local continuous base Flight spot radio and direct mail in top 20 DMAs

Media Flight Plan


Jan12 Tradi&onal/Units ConsumerMagazines CableTV Internet SpotCableTV NetworkTV Cinema DirectMail SpotRadio NonTradi&onal/Units InternetTV MallDisplays InternetRadio Groupon InteracHveGaming Wallscapes MobileProjecHons Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13 72FP/4CUnits 720GRPs 6205GRPs 240GRPs 6Units 600kUnits
40GRPs/DMA

146,000Units 600kUnits
40GRPs/DMA

250MillionUnits 20Units 10MillionUnits 240Units 250,000Units 20Units 80Units

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Phase III
Devote approximately 30% of media budget Maintain national and local continuous base

US Weekly Circulation: 1,950,000 Median HHI: $76,124 Audience: 13.9 million

Vehicles
National Continuous
Consumer Magazines
Members of the target audience are moderate to high users of consumer magazines. They have the ability to target specific audiences, provide high reach with little waste and offer a long shelf life with a high pass along rate. Strong creative and continuous insertions will leave lasting impressions to the reader with a credible source. Four-color, full-page ad placement will be used throughout the campaign. A one-year buy includes a 15% discount and added-value placement on the magazines websites. Total Units: Total Cost: Percent of Media Budget: Cosmopolitan Circulation: 3,046,229 Median HHI: $62,620 Audience: 9.5 million Glamour Circulation: 2,320,325 Median HHI: $87,500 Audience: 12.3 million Parents Circulation: 2,229,253 Median HHI: $59,616 Audience: 15.3 million People Circulation: 3,553,420 Median HHI: $68,882 Audience: 29.3 million People Style Watch Circulation: 882,683 Median HHI: $75,560 Audience: 5.1 million 72 $12,747,827 18.9%

Internet Television
Members of the target audience are moderate to heavy viewers of online and streaming media. Added value includes banner ads. Hulu 400 million streams a month 41.5 million users Shows available 24/7 Shows include: The Bachelor, Saturday Night Live, Modern Family, The Office and 30 Rock 30-second spots $40 250 million $10 million 14.8%

CPM: Total Impressions: Total Cost: Percent of Media Budget:

Cable Television
Cable television offers programming that targets narrowly defined markets and achieves reach and frequency goals at a minimum cost. 30-second commercials will run continuously on nine cable channels. One-third of the GRPs were purchased during prime time; one-third during late fringe and onethird during daytime. Buy includes added-value placement on the channels websites. Total GRPs: Total Cost: Percent of Media Budget: Bravo 88 million subscribers .6 rating E! Entertainment TV 54 million subscribers .5 rating Food Network 100 million subscribers .5 rating 720 $8,499,600 12.6%

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Lifetime 79 million subscribers .5 rating OWN 76 million subscribers .2 rating Oxygen 74 million subscribers .5 rating TBS TNT 100 million subscribers .9 rating 61 million subscribers .7 rating

YouTube 14.8 billion streams a month 100.9 million users 15-second spots, banner ads, home page expansions

Internet Radio
Target audience members are heavy users of radio both traditional and Internet. Internet radio allows users to select and sort songs from specific artists. CPM: Total Cost: Percent of Media Budget: $4 $4 million 5.9%

USA Network 90 million subscribers 1.0 rating

Internet
In addition to the value-added of the cable television and consumer magazine websites, Internet advertising will include banners, buttons and links to jcp.com. Total Units: Total Cost: Percent of Media Budget: 6,205 $4,617,000 6.9%

Pandora 80 million listeners Total sessions: 62,153,000 Music available: 24/7 Categories include: country, alternative, rock, hiphop, pop and adult contemporary Female: 59% Ages 25 to 34: 21% HHI: $25,000-$49,000 Average listening session: 23 minutes 30-second spots and static banners to run during song play

Interactive Gaming
Interactive gaming is popular with target audience members as 65% play online. The add-on pack for Sims 3 will include a virtual JCPenney store with fashions, home decorations and service options. Users who download the free JCPenney add-on pack will also receive a $10 JCPenney online gift card. 4.5 million units sold Game available: 24/7 250,000 $2.5 million 3.7%

Facebook 80.7 million female users in the USA 33.2 million women 25- to 34-year-old users Sidebar ads Google Dominant search provider, yields more than 60% of online queries Organic keyword search optimization MSN 46 million users in the USA 5.6 million women 25- to 34-year-old users Organic keyword search optimization, banner ads Yahoo 110 million users in the USA 12 million women 25- to 34-year-old users Organic keyword search optimization, banner ads

Total Impressions: Total Cost: Percent of Media Budget:

National Flighted
Network Television
Network television viewership is typically light for the target audience; however, some shows achieve high ratings for 25- to 34-year-old female viewers. Ad placement within these shows will have the ability to achieve reach and frequency goals.

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The Oscars 41.2 million viewers 30-second spots Total Units: Total Cost: Percent of Media Budget: 6 $3 million 4.6%

Spot cable will complement the national cable television schedule buy to increase reach and frequency within the selected markets. Total GRPs: Total Cost: Percent of Media Budget: 240 $3,245,760 5.0%

Local Continuous
Mall Displays
Mall displays are effective and versatile and will be placed in high traffic areas to ensure maximum exposure. Displays will be continuous in malls where JCPenney stores are located in the top 20 DMAs. Floor graphics trumpet banners, ad rails and door clings will be used to direct mall shoppers to JCPenney. Total Units: Total Cost: Percent of Media Budget: 20 $9,960,000 14.8%

Cinema
In 2010, 172 million people attended the movies an average of 8.5 times. 30-second spots on two screens in the top five cinemas will run continuously in the top 20 DMAs. Total Units: Total Cost: Percent of Media Budget: 146,000 $2,928,350 4.3%

Groupon
Groupon, available across the USA, has more than 26.5 million subscribers. Monthly spot buys in the top 20 DMAs JCPenney supplemental services to be included Groupon receives 60% profit from each deal Total Units: Total Cost: Percent of Media Budget: 240 $3 million 4.5%

Spot Cable
Additional 30-second run-of-station spots will be purchased on the same nine cable channelsBravo, E! Entertainment, Food Network, Lifetime, OWN, Oxygen, TBS, TNT and USA Networkin the top 20 DMAs.

Mall Displays Placement


DMA Rank 1 New York 2 Los Angeles 3 Chicago 4 Philadelphia 5 Dallas-Ft. Worth 6 San Francisco 7 Boston 8 Atlanta 9 Washington 10 Houston 11 Detroit 12 Phoenix 13 Seattle 14 Tampa-St. Pete 15 Minneapolis 16 Denver 17 Miami-Ft. Lauderdale 18 Cleveland-Akron 19 Orlando 20 Sacramento Mall Palasades Center Del Amo Fashion Cntr. Gurnee Mills Franklin Mills Grapevine Mills The Shops at Tanforan Fox Run Mall The Mall @ Stonecrest Potomac Mills Memorial City Mall Lakeside Mall Arizona Mills Alderwood Mall The Shops @ Wiregrass Southdale Center Greeley Mall Aventura Mall Sandusky Mall Altamonte Mall Arden Fair Sq. Footage 2,000,000 2,100,000 1,852,928 1,742,823 1,479,865 1,000,000 601,000 1,300,000 1,635,065 1,700,000 1,550,450 1,227,442 1,270,000 800,000 1,490,078 548,407 2,400,000 1,381,000 1,150,000 1,116,102 Monthly Traffic 1,666,666 2,304,369 1,855,918 1,583,333 1,250,000 916,667 750,000 916,667 2,000,000 1,142,000 650,000 1,333,333 1,365,000 400,000 1,226,700 724,000 1,666,666 825,000 903,000 865,166 HHI$ $88,587 $42,000 $77,060 $55,000 $62,992 $92,037 $68,056 $72,000 $72,000 $71,114 $68,276 $45,448 $76,093 $97,037 $74,051 $64,540 $56,000 $59,432 $70,921 $61,909

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Local Flighted
Wallscapes
Wallscapes will be featured in the top 20 DMAs during Phase I. These colorful and stylish outdoor vinyl posters will be placed in high traffic areas and will have the ability to effectively reach the target audience. Total Units: Total Cost: Percent of Media Budget: 20 $1 million 1.5%

Groupon

Mobile Projections
Mobile projections will be featured in the top 20 DMAs each weekend as part of the teaser campaign. Static and full motion pictures will illuminate city buildings at night spanning up to 30-40 square feet. Total Units: Total Cost: Percent of Media Budget: 80 $800,000 1.2%

Direct Mail
Direct mail has the capability to send personalize messages. Rewards program members in the top 20 DMAs will receive direct mail in Phases I and II to promote the JCPenneys After Dark Customer Appreciation Celebration. Total Units: Cost Per Piece: Total Cost: Percent of Media Budget: 1.2 million $0.48 (includes printing, postcards, envelopes, postage) $576,000 .9%

The Sims 3 Add-on Pack

Spot Radio
Spot radio will be purchased during Phases I and II in the top 20 DMAs to promote the JCPenneys After Dark Customer Appreciation Celebration. Country, hip-hop, adult contemporary, classic rock and pop formats Buys will include value-added remote advertising 30-second spots in March and August 2012 during AM and PM drive time. 40/per month $536,240 .8%

Total GRPs: Total Cost: Percent of Media Budget:

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Sponsorships
Overview
JCPenneys challenges to its current image can be overcome by creative and targeted sponsorships, events and partnerships. They will increase awareness, increase sales, alter perceptions and decrease negative and indifferent thoughts.

Objectives

To improve JCPenneys image as a trendy, stylish department store To associate JCPenney as a socially active and responsible company To increase awareness of supplemental servicessalon, optical and portrait studio To use interactive methods to capture the target audiences attention To drive the target audience to JCPenney stores and its online site to use the in-store JCP Style Generator and its online version

includes a challengeto create a one-of-a-kind item for JCPenney customers. Votes will be cast on a JCPenney microsite, Facebook and Twitter to determine if the item should be created and sold on the JCPenneys website and in stores. Sponsorship value for JCPenney include: Name recognition and promotion on air by the hosts 3 full-page/four-color ads in Marie Claire magazine during each season Three 30-second spots per episode during each season Banners and buttons on Project Runway and Lifetimes website When: Phases I and II Cost: $3.5 million ($2,363,850 for 102 total 30-second spots during the two seasons of Project Runway; $765,000 for 6 full page/4 color ads in Marie Claire magazine; $371,000 to ensure positive name recognition and on-air promotion by Project Runway hosts)

Strategies

Increase consumer word-of-mouth through sponsorships, events and partnerships Provide sponsorships for entertainment programs and goodwill organizations Create memorable events that aid in improving JCPenneys image Offer incentives to shoppers to shop more and use supplemental services

Americas Next Top Model Sponsorship


Why: Sponsorship of CWs Americas Next Top Model, hosted by Tyra Banks, will promote a positive attitude about JCPenney fashions and the JCP Style Generator. With 3.36 million viewers, Americas Next Top Model has a 2.6 rating with an 8 share among women 18 to 34 years old. How: JCPenney will sponsor one episode during both seasons in 2012. Models will complete a challengeto create their best look by using the JCP Style Generator or by shopping in a JCPenney store. The chairman of JCPenney, or his designee, will select the winners in the first season; the vice president of marketing for JCPenney or his designee, will select the winners in the second season. The prize is a $5,000 gift card; her friend wins a $2,500 gift card. Sponsorship includes three spots during each episode and Internet banners and buttons on Americas Next Top Model website. Added value in-

National Tactics
Project Runway Sponsorship
Why: Hosted by supermodel and fashion icon Heidi Klum, the hit series Project Runway provides talented designers an opportunity to launch their careers in fashion. Project Runway was 2010s number one rated and most watched competitive reality program on adsupported cable among women 18-54. How: JCPenney will sponsor two seasons with the final prize to create a couture clothing line for the everyday woman to be sold in JCPenney stores and on its website. In addition to the usual Project Runway prizes, the winners will earn $50,000. The sponsorship also

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cludes JCPenney mentions at the beginning and ending of each episode and models putting together ensembles from JCPenney. When: Phases I and III Cost: $510,000 ($255,000 per season includes $139,050 for 3 spots each season; $5,000 gift card one each cycle for winning model; $2,500 gift cardone each cycle for models friend; remaining amount ensures JCPenney name recognition.)

to refreshments, gift cards, DJ and music, members can use the JCP Style Generator and be eligible for the monthly JCP Rewards Gift Card Giveaway. Customers not in the rewards program can enroll in the store, on the jcp.com website or at the celebration. A microsite will be created to notify customers which stores will host the thank you party and provide a link for the JCP Rewards program. Spot radio will support the event. When: Phases I and II Cost: $840,000 ($20,000 for DJ; $140,000 for food/ beverage; $680,000 for gift card giveaways)

JCP Rewards Gift Card Promotion


Why: This tactic is an opportunity to reward loyal JCP Rewards customer and JCP Style Generator users. How: JCP Rewards members will earn points shopping at the stores and the website, using the JCP Style Generator and posting their new looks on Facebook, YouTube and Twitter. JCP Reward members who earn the greatest number of points win a JCPenney gift card. Prizes will be awarded every month in four geographic areasNorth, South, East and West. A microsite will provide details about the promotion, indicate which states are in each region, provide a link for the JCP Rewards program and provide a link to the JCP Style Generator. Prizes include: $2,000 gift card, first place; $1,500 gift card, second place; and $1,000 gift card, third place. The JCP Rewards member with the highest reward point total wins a $25,000 gift card. When: Phases I, II and III Cost: $241,000 (includes monthly $2,000, $1,500 and $1,000 gift cards in the geographic areas plus one $25,000 winner)

Good Morning America JCPenney Summer Concert Series


Why: This fresh, hip series of mini-concerts is an excellent opportunity for JCPenney to improve its image with the target audience. How: JCPenney will sponsor the Good Morning America Summer Concert Series. Concerts are for 12 weeks June through August 2012 in New York City during the last 20 minutes of each Fridays show. JCPenney will create a microsite to showcase each weeks performer, promote jcp.com and the JCP Style Generator and provide links to both. The sponsorship includes: Two commercials and at least six mentions Monday through Thursday during the two-hour show leading up to the Friday live concert Six commercials on Friday including between the concert and interview with the band members Signage on the JCPenney Stage in Central Park On-air graphics during the performance Banners and buttons on the Good Morning America and ABCs website for 12 weeks In-store recorded messages will remind shoppers to watch the Good Morning America Friday live concerts When: Phase II Cost: $2,614,400 million ($2,150,400 for 168 spots on the ABC network during Good Morning America; $464,000 for adequate signage and to ensure positive name recognition and on-air promotion by Good Morning America and its hosts)

Local Tactics
After Dark Customer Appreciation
Why: This tactic serves as a thank you party and sales event for JCP Rewards members and to increase membership in the JCP Rewards program. How: JCPenney stores in the top 20 DMAs will host this event. E-mail blasts and direct mail invitations will be sent to members of the JCP Rewards program. Incentives include: $50 gift card for members and four drawings for $500 gift cards at each celebration. In addition

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Susan G. Komen Race for the Cure Sponsorship


Why: This sponsorship will improve the image of JCPenney and show support for a good cause. How: JCPenney will provide JCPink t-shirts for all participants and volunteers during the walks in the top 20 DMAs. These t-shirts and a line of JCPink clothing and accessories will be created; 50% of the profits from this line will be donated to the Susan G. Komen Foundation for Breast Cancer Research. An additional donation of $1 million will elevate JCPenney to the Million Dollar Council. A microsite will include: 3-day race schedules for the cities in the Race for the Cure

Details about the sponsorship Link to the website komen.org JCPink line of clothing and accessories Added value includes JCPenneys name added to the official Race for the Cure t-shirt.

JCPenney will provide a $250 makeover from the Sephora make-up line and Regis Hair Salon for the first place winner and her sponsor. October is Breast Cancer Month; however, walks begin in July and run through November. When: Phases II and III Cost: $1,157,500 ($1 million sponsorship donation; $7,500 for make-overs; $150,000 for t-shirts donated to the race participants.)

JCPink t-shirt, wristband, water bottle

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Evaluation
Overview
Both quantitative and qualitative methods will be used to evaluate the success of the JCPenney campaign. Quantitative methods will measure: Acquisition of female customers ages 25 to 34 Retention of female customers ages 25 to 34 Increase of shopping frequency and growth of share of wallet among current female customers ages 25 to 34 Qualitative methods will measure changes in the target audiences attitudes towards JCPenney and its campaign.

Quantitative

Conduct a benchmark study of the target audience during the pre-campaign phase to determine current awareness and opinions of JCPenney Monitor traffic on the JCPenney website and the number of smartphone apps downloaded Monitor average time spent on the JCPenney website monthly during the campaign period Compile database information gained from The After Dark Celebration, the gift card giveaways, the JCP Style Generator Monitor participation levels of the JCPenney Rewards members Measure participation at the Susan G. Komen Race for the Cure Measure sales of new brands introduced in JCPenney stores Conduct a post-buy analysis to ensure that reach, CPC, CPP and CPM media goals are being met at six months into the campaign and at the end of the campaign Measure growth in target audience participation and retention six months into the campaign as well as at the end of the campaign Measure return on investment in every aspect of the campaign through revenue, cost savings, paid versus earned search rankings and social capital six months into the campaign and again at the end of the campaign Monitor sales of Sims 3 add-on pack

Qualitative

Conduct a follow-up study of the target audience six months into the campaign and at the end of the campaign to determine awareness and opinions of JCPenney Conduct focus groups and personal interviews with members of the target audience to determine the overall effectiveness of the campaign following each phase of the campaign period

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