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jcpenneystyleconvenient. practical. affordablewithLXFM 502 Fashion Marketing& Advertising PrinciplesProfessor Soo KimStephanie ButlerFrederick CaldwellShanetha ChisholmCary RobinsonSCAD Fall 2011

content03 Table of Contents04 Project Overview05 Introduction06 ResearchCore Value AnalysisSWOT AnalysisMarket ResearchPlan10 StrategicGoalsObjectives11 PersonasChloeJakeDebraDarryl15 Strategy11 Marketing Campaign24 Media Plan25 Budget Plan26 In-Store Experience27 Digital Experience28 Partnerships30 Measures of Success31 Conclusion32 TeamTable of Contents jcpenneystyleconvenient. practical. affordablewith03

project overviewintroductionIn our marketing plan we will:IndustryRetail FoundedKemmerer, Wyoming (1902)Founder (s)James Cash PenneyWilliam Henry McManusAnalyze JCPenney’s current valuesAnalyze their current strengths, weaknesses, opportunities and threatsObserve current customer’s perceptions of JCPenneyDevelop objectives, goals, and strategies for our marketing campaignDevelop personas to aid in targeting our desired marketPlan improvements for JCPenney’s in-store experiencePlan improvements for a better digital experienceDevelop a detailed marketing campaignProduce a media schedule and marketing budgetSuggest partnerships to strengthen the brand04 LXFM 502 Project OverviewHeadquarters Plano, TexasNumber oflocations1,106 (2010)Area servedUnited StatesKey peopleMyron E. Ullman, IIIChariman and CEOProductsClothing, Footwear, FurnitureJewelry, Beauty Products,Electronics, HousewaresProject Introduction jcpenneystyleconvenient. practical. affordablewith05

core value analysisCurrent Company ValuesRecently, JCPenney has created a long range plan in order to improve the company’s performance andreputation. Our marketing campaign can easily fit within the current plan but it’s main focus will be onredefining JCPenney’s current target market and reaching out to that specific market.CustomersAmerica’s favorite retail destination Refine marketing & messages Customer satisfaction & loyalty ExperienceMerchandiseConsistently please customers Stylish, high-quality Remarkable & CompleteAssociatesDesired choice for retail career Build company culture innovation & teamwork CustomerFIRST initiative Winning Together: integrity, performance, teamwork, quality, innovation, communityPerformanceBecome a growth leader in industry Financial performance Resources growth & innovation Longer-term growth opportunities maximize earnings potential & shareholder value06 LXFM 502 Core Value AnalysisInclusion &DiversitySocialResponsibility 150,000 employees Diversity uniqueskills &Inclusion supportiveenvironment Corporate culture Built on legacy Contributions &Volunteerism Collaboration w/cultural advocacygroups Support DiverseCommunitiesEnvironmental Environmentallyconscious retailer Responsiblesourcing Committed toconservingnatural resources By 2015 (Longrange plan) TransportationCore Value Analysis jcpenneystyleconvenient. practical. affordablewith07

swot analysismarket researchMarket TrendsStrengthsStrengths Well known private brandsStrong presence throughout the U.S.Good use of social marketingEfficient supply chainRecently implemented long range goals inorder to boost their performance andreputationLong history as a leading US departmentstoreOffer a good range of merchandise invarious sizesExtensive home selectionWeaknessesWeaknesses OpportunitiesOpportunities 08 LXFM 502 SWOT AnalysisUtilize website and social marketingMarket well-known brands to enticecustomersUpdate standards in dress, displays,customer service, etc.Increase the use of partnershipsFully utilize Sephora partnership tochange imageOffer accessible luxury brandsPut more emphasis on women’saccessories such as handbagsCreate an effective commercial time-slot Ineffective marketing strategiesLack of flow in storeLimited available staffCluttered store due to too muchinventoryPoor store image, not clear what makesJCPenney uniqueLack of modern, accessible luxury brandsInconsistent in visual merchandisingstrategiesBusiness relies heavily on holiday seasonOver-reliance on mall locationsThreatsThreatsStrong competition with otherdepartment stores, Wal-Mart, and closeout storesOther stores are currently successful inpartnershipsWeakened economy decreasescustomer’s desire to shopEconomy prohibits extensive expansionand remodelingQuickly changing trends and ficklecustomers make choosing propermerchandise difficultOne of the current trends in retail is designer collaborations.Designer CollaborationsMacy’s Karl Lagerfeld Giambattista ValliSears FCUK KardashiansKhol’s Vera Wang Jennifer LopezMarket Research jcpenneystyleconvenient. practical. affordablewith09

strategic planpersonasGoals StylishChloeEnhance the brand image of JCPenneyIncrease profitabilityIncrease amount of loyal customersWants products that are bothtrendy and stylish ImpracticalJC Penney has the cutest clothesand shoes!PracticalUnfashionableObjectives Promote our image as a family-oriented business.Increase customer awareness of our private labels.Emphasize the services we offer.Expand to target market to include younger consumers.Age: 1510th Grade StudentLifestyle: Shops with her mom and searches for the mosttrendy and stylish clothingBrands: Total Girl, Arizona, American LivingHobbies: Texting, Cheerleading, Hanging out with Friends,Fashion MakeoversTV Shows: GLEE, MTV, Oxygen, Keeping Up With Kardashians,Jersey Shore, Bravo, Vampire DiariesMagazines: Teen Girl, ELLE Girl, Cosmo Girl, Alloy OnlineWhat do we mean by a family-oriented business?We want JCPenney to be a great shopping experience for the whole family, notjust mom. We will use marketing tools which will speak to dad and the kids as well.In order to fully understand who our target market is, we have developed fourpersonas, representing different age groups which make up a family in the UnitedStates.The four personas are:ChloeJakeDebraDarryl10 LXFM 502 Strategic PlanPromotional Models (Spokespersons)Personas: Chloe jcpenneystyleconvenient. practical. affordablewith11

StylishpersonasDesires clothing and shoes that isdurable and that looks decentImpracticalPracticalJakeDebraJC Penney ROCKS! Theyhave the coolest kicks andjeans.UnfashionableAge: 1711th Grade StudentLifestyle: Loyal to Vans brand; Visits store occasionally whenhanging out with friendsBrands: Levi’s, Arizona, Vans, Decree, RustyHobbies: Skateboarding, Surfing, Rock Concerts, Playing theElectric Guitar, Partying, Video GamesTV Shows: ESPN Games, Adult Swim, The Simpsons, Family Guy,Spartacus, Entourage , True Blood, BonesMagazines: Sports Illustrated, Revolver12 LXFM 502 Personas: Jake StylishPrefers products that arecomfortable, but look goodJC Penney is convenient because Ican find clothes for my whole family.and the have great on:Occupation:Salary:HH Income:Brands:Hobbies:32High School DiplomaOffice Receptionist 25,000 65,000Liz Claiborne, Worthington, Nicole by Nicole MillerPTA Member, Church Member, Volunteering,Scrapbooking, GardeningTV Shows: Grey’s Anatomy, OWN, What Not To WearMagazines: O Magazines, Family Circle, Southern LivingPersonas: Debra jcpenneystyleconvenient. practical. affordablewith17

StylishDarryl Purchases products mainly forfunctionality, rather than for style ImpracticalPracticalFor our campaign, we will utilize all traditional forms ofmarketing, along with new digital forms of marketing.I like JCPenneyJC Penneybecausebecausetheythe havehavegood fashion forfor lary:HH Income:Brands:Hobbies:TV Shows:Magazines:14 LXFM 502 Darrylstrategy33Diesel Technician MechanicAssociate’s Degree 36,000 70,000American Living, Levi’s, Dockers, Claiborne, IZODFishing, Sports, Church, Community ActivistESPN, DIY Network, SPIKE TV, Fox, TNT, CBSSports Illustrated, Men’s JournalThe JCPenney slogan will be:“JCPenney: Convenient, Practical,Affordable .with Style”Each form of advertising will take this slogan intoconsideration along with the personas we havedeveloped.jcpenneystyleconvenient. practical. affordablewithStrategic Plan jcpenneystyleconvenient. practical. affordablewith15

marketing campaignTelevisionRadioSpecial commercials will run during special seasons, focusing on big moments infamily life. These commercials will have a very specific target customer and will runfor a relatively short amount of time.Traditional RadioTelevision commercials will show on all the major networks and several cablenetworks. Basic commercials showcasing JCPenney’s current sales andmerchandise will run throughout the year.Wedding SeasonJcPenney will air commercials on bothtraditional radio and online radio. Picture will gohere Commercial shot in black in white to give the viewer the sense that JC Penneyis classic, timeless, and chic. The commercial opens in silence to a bride gettingdressed for her wedding, camera fades then the audience sees the happy couplewalking down the aisle after their “I dos.” Then a voice says “JC Penney .there forlife’s biggest moments.” The commercial closes in color to give the audience thesense that JC Penney is relevant and modern with the end of the couple’s reception. Back-to-School Commercial opens with teenage son/daughter leaving for college on the phonewith Dad, he can’t make b/c he’s station overseas. Teenage guy/girl and momarrive at the University.They arrive at son/daughter’s dorm and are surprised tosee that it is decorated. They open the closet filled with clothes dad jumps out.The commercial fades to black in silence. With “JC Penney there for life’s biggestmoments” across the screen.16 LXFM 502 Marketing CampaignCommercials will run periodicallywhen JcPenney has special sales orpromotions.The commercials will air on popularradio stations in metropolitan areas.Will be strictly audial with a descriptionof current sales.Online Radio Pandora Radio will be the prominentstation used to promote JcPenneyCommercials will focus on audio butwill have a corresponding visual aswell.Online commercials will target youngermarket, showcasing the current salesPandora AdMarketing Campaign jcpenneystyleconvenient. practical. affordablewith17

marketing campaignDigital MediaIn our digital media campaign,we will utilize inexpensive formsof advertising with websitessuch as: FacebookTwitterYouTubePicture will gohereWe will also have a mobile appavailable .These forms of advertisingwill be used as the main toolto gain and maintain youngercustomers.18 LXFM 502 Marketing CampaignMarketing Campaign jcpenneystyleconvenient. practical. affordablewith19

marketing campaignOutdoor and Transit AdvertisingWith the ease of being placed in high traffic areas in a range of locations from small to large markets, the following advertising mediums allow JC Penney to reach out to this extensive demographic and to those who have learned to avoidtelevision and radio commercials through DVRs and TiVo. Posters and BillboardsPublic Transport AdvertisingAmbient MediaMall AdvertisingPosters and Billboards Able to communicate messages within seconds to a broadaudience, posters are a popular, highly visible, powerful, andcost effective means of communication Available in various shapes and sizes, posters easily adapt to avariety of environments and locations, becoming an integral partof the cityscapeTransit advertisements have a strong impact since they cannot be fast-forwarded through. Reaching captive transit riders and walkers and car riders looking for visual stimulation, JC Penney’s messages are sent to a broad audience of allages and at all times of the day, in a low, cost-effective method.20 LXFM 502 Marketing CampaignMarketing Campaign jcpenneystyleconvenient. practical. affordablewith21

marketing campaignConsidering income and population among many other factors, the following metropolitan areas will be used in our marketing campaignto reach a broader demographic.MARKETSAtlantaBostonCharlotteChicago Metro Atlanta ranked 5th in nation for Fortune500 companies Ranked 7th in nation as a leading touristdestination with over 35 million visitors per year Captive audience of 6.4 million riders permonth Average Commute to Work (one way): 28.3minutes Includes Atlanta Metro Area Center of economic and cultural diversity for allof New England Reach leading businesses in financial services,education, health care, research, and development Massachusetts Bay Transportation Authority(MBTA) (Bus, Light Rail and Subway) 1.3 million riders weekly and 95% of the Bostonpopulation are reached by its advertising 5th largest mass transit system in U.S. Average Commute to Work (one way): 25.74minutes Includes Boston Metro Area 1 of fastest growing cities in the nation 17th largest city in the US 2nd largest banking center in the US Charlotte Area Transit System (CATS) whosenetwork includes Buses and Light Rail (LYNXBlue Line) CATS provides transport to 25 million peopleannually Average Commute to Work (one way): 26.85minutes Includes Charlotte Metro Area Over 2.8 million people Largest city in the Midwest and 3rd mostpopulous city in the United States Home to major universities and several of theworld’s most prestigious museums and culturalcenters The Chicago Transit Authority, or CTA, is the 2ndlargest public transit system in the United States CTA operates 24 hours a day and serves 1.6million passengers each weekday Average Commute to Work (one way): 25.79 Includes Chicago-Naperville-Joliet, IL Metro AreaDallasLos Angeles/OCMinneapolis/St. PaulNew Jersey 9th Largest City in the United States 1.2 million 4th Largest Metropolitan Area in United States 3rd most popular destination in U.S. forbusiness travelers Dallas Convention Center is 1of largest andbusiest convention centers in the country Dallas Area Rapid Transit, DART daily ridershipof 228,300 largest light rail operator in U.S. Average Commute to Work (one way): 21.28 min. Includes Dallas-Fort Worth- Arlington, TX MetroArea Most populous county in U.S. and largest cityin California Multi ethnic/racially diverse city Major new groups of Latino and Asian immigrants Prominent center of culture, technology, media,business, and international trade Leader in producing popular entertainment(motion picture, television, video games, music) International fame and global status Orange County has 44 million visitorsannually, who spend over 7.8 billion Average Commute to Work (one way): 28.3 min. Core of the Twin Cities metropolitan area-the14th-largest cluster in the country Fortune 1000 company headquarters are inMinneapolis 1 of country’s largest transit systems, MetroTransit provides roughly 95% of the 73 millionbus trips taken annually Average round trip commute taking 42 minutes Lots of time to view transit advertising Average Commute to Work (one way): 18.90 min. Includes Minneapolis-St. Paul-Bloomington, MNMetro Area. New Jersey Transit is 3rd largest statewidepublic transportation system. Links New Jersey, New York, and PhiladelphiaNew Jersey ranked #2 in per capita personalincome in the U.S. Many household incomes greater than 100,000 Most densely populated state in the country559,950 people travel on NJ Transit bus systemeach day and 58% have traveled 200 miles inpast month Average Commute to Work (one way): 21.99minutesNew YorkPhiladelphiaSan FranciscoSeattle The “capital of the world” Major cultural and economic center Ethnically diverse Home to more Fortune 500 companies thananywhere else in the world Population density of 26,403 people per squaremile Tourism: 41 million people visit city’s worldfamous landmarks, museums, high-end retailstores, restaurants, and performance venuesWorld-famous commercial zones (RockefellerCenter, Broadway, and Times Square) 5th most populous city Largest city in the Commonwealth of Pennsylvania Metropolitan area is the 4th largest in the U.S 1 of the largest college/university towns Home to many major Fortune 500 companies SEPTA supports the Greater PhiladelphiaRegion and parts of Delaware and New Jersey Service area of 2,200 square miles and annualridership of 325 million PATCO works with SEPTA and NJ Transit Increasing demand for greater Philadelphia 38,000 commuters traverse Delaware River daily 2nd to New York as most densely populated city 18 million tourists visit every year Powell station is 1 of busiest metro stations,located in heart of retail shopping district near San Francisco’s most popular attractions Average Commute to Work (one way): 29.00minutes Includes San Francisco-Oakland-Fremont MetroArea Pacific Northwest’s economic center 15 Fortune 500 companies 3rd in adults with bachelor’s degree or higher 50% of residents attended college 40% spend an hour or more in round trips daily Average Commute to Work (one way): 24.76minutes Includes Seattle-Tacoma-Bellevue Metro Area22 LXFM 502 Marketing CampaignPrint MediaMagazinesAdvertising for JCPenney will be featured in: Elle Teen Vogue Home & GardenNewspapersNewspaper ads will only be used in a few newspapers in large cities.The ads will display our spokespeople and our seasonal sales. USA Today New York Times Los Angeles Times Chicago Tribune Washington PostChristmas AdDirect MailCatalogues Small and specialized for season: Wedding, Summer, Back to School, Christmas Mailing lists will consist of prior JcPenney customers who have given the company their information Design will be more artistic, similar to magazine spreads, and less focused on individual productsSpring AdPromotional Cards These mail-outs will be dispersed frequently, promoting current sales and events Mailing list will consist of current customers and purchased list from direct mailing companies Used to bring in new customers and bring current customers back to storeMarketing Campaign jcpenneystyleconvenient. practical. affordablewith23

Total 12,261,600.00media AUGSEPTNOV1 2 3 4 5 6 7 8 9 10 11 1213 14 15 16 17 18 19 2021 22 23 24 25 26 27 28 29 30 31 32 33 34 35 3637 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52ABC AffiliatesNBC AffiliatesFOX AffiliatesCBS AffiliatesBravoUSAMTVESPNABC FamilyTLCTNTA&ERadioLocal StationsPandoraDigital MediaFacebookWebsiteYoutubeTwitterMobile AppAmbient MediaTransitOtherMagazinesElleTeen VogueHome & Gardenbudget planMagazinesElleTeen VogueBetter Homes & GardenPrice 99,420.00 112,769.00 506,380.00Circulation Period12101TelevisionABCNBCCBSFOX 97,837.00 74,431.00 113,842.00 188,974.0026262626SpecialProgramming(Oscars) 1,700,000.001Cable Network TelevisionBravoUSA NetworkMTVESPNABC FamilyTLCTNTA&EPrice 13,100.00 13,100.00 13,100.00 13,100.00 13,100.00 13,100.00 13,100.00CirculationTransitBus Wraps-HalfSubway AdsBench AdsPrice 639.00/unit/mo 500.00/unit/mo 300.00/unit/mo# of AdsRadioLos AngelesNew YorkChicagoDallasPandoraPrice 13,100.00 13,100.00 13,100.00 13,100.00 1,000,000 spendsat 8 CPM525252525252525224LXFM 502 Media Plan ice 639.00/unit/mo 500.00/unit/mo 300.00/unit/moRadioLos AngelesNew YorkChicagoDallasPandoraPrice 13,100.00 13,100.00 13,100.00 13,100.00 1,000,000 spendsat 8 CPM# of Ads# of Mo2525509 2,518,550.0012 5,227,500.0012 6,205,000.00Total 13,951,050.00Circulation20202020Reaches 125,00in on year 17,000.0014,000.008,000.006,000.001,000,000.00 Total 1,045,000.00DigitalJcp.com UpdateMobile App Update Total 140,000.0025,000.00165,000.00Grand Total 44,301,944.00 1,700,000.00Total 14,052,184.00Number of slots31222323Total 2,043,600.00 681,200.00 1,362,400.00 1,362,400.00 1,362,400.00 2,043,600.00 1,362,400.00 2,043,600.00 12,261,600.00# of Mo252550Other PrintNewspaperCatalogueDirect Mail 1,193,040.00 1,127,690.00 506,380.00Total 2,827,110.00TransitBus Wraps-HalfSubway AdsBench AdsCirculation20202020Reaches 125,00in on year9 2,518,550.0012 5,227,500.0012 6,205,000.00Total 13,951,050.00 17,000.0014,000.008,000.006,000.001,000,000.00 Total 1,045,000.00Budget Plan jcpenneystyleconvenient. practical. affordablewith25

in-store experienceOne of the most important aspects of the retailing business isthe in-store customer experience. It is our goal to enhance andimprove the in-store experience for JC Penney customers. We plan to enhance the customers’ shopping experience at JCPenney is by offering services that are typically associated withhigh-end and luxury retailers.Services Offered: Wedding consultations Alterations (including for children) Checkouts using mobile phones and QR codes Children’s playroom in select stores We also plan on making improvements to the store environmentin order to make customers feel comfortable and at ease by incorporating: New and modern fixtures Comfortable and inviting dressing rooms Updated visual merchandising26 LXFM 502 Marketing Campaigndigital experienceChanges to the existing JCPenney websiteinclude visual enhancements and improvedfunctionality, offering a more clean, clearand concise layout that is more navigableand user-friendly. Categories and brands are listedhorizontally below logoSpecialty items are listed vertically alongthe left edgeFeatured ads are displayed on the frontpage along with promotional modelsDigital Experience jcpenneystyleconvenient. practical. affordablewith27

partnershipsPorter Grey Founded by sistersAmerican contemporary sportswearVersatile foundation piecesUrban elegance & relaxed sophisticationFresh, crisp, classicPared down, timeless take on quintessential American girlDesigned & produced in NYA misses collection/line by the Porter Grey sisters promote the family marketingimage, as well as show support for American companies. The misses customercan mix and match these contemporary, basic pieces for work, school, or hangingout with the girls. The collection will provide tops, sweaters, pants, jackets, vests,and outerwear for less than 200.Diesel Young and vibrantFashion and artYoung creativity with film, music, and video gamesKnown for their denimA menswear collection by Diesel will provide young men branded clothing optionscentered around his urban, self-expressive, imaginative life. The special collectionwill include denim, jackets, pants, shirts, T-shirts, sweaters, sweatshirts, underwear,belts, bags, wallets, hats, scarves, and footwear. The collection will retail for less than 300.28 LXFM 502 PartnershipsMichael Bastian Named the 2011 CFDA Menswear Designer of the YearNew American voice: modern & luxurious with a broken down familiarityA suiting and separates collection or line by Michael Bastian will give workingmen the opportunity to have more contemporary, stylish options than currentlyavailable. Offering formal and casual suits, blazers, sportcoats, trousers, shirts,ties, and trouser socks, this secondary line will retail for less than 300.Marcia Patmos Marcia Patmos is making a returnEasy, modern, understated, beautifully crafted clothingEffortless separatesComfortable wardrobe essentialsStrength, ease, and graceSocially conscious and eco-friendly where possibleSuiting byMICHAEL BASTIANOnly at Developing a womenswear line or collection with M. Patmos will be perfect for theworking mom who wants simplistic style that is comfortable to wear all day, from workto home. Retailing for less than 250, the line will include tops, tanks, tees, sweaters,cardigans, vests, dresses, skirts, outerwear, jackets, hats, and scarves.Partnerships jcpenneystyleconvenient. practical. affordablewith29

measures of successSuccess and Impact (local, regional and national markets Important -- The big pictureAccomplishing JC Penney’s objectivesStaying in tune with the company’s values and missionProper mix of media KEY to effective promotion and communicatingPrior market research (Past & future) Determine proper allocation of promotional dollars and mediumsMost efficient, cost-effective methodsDocumenting changes New and existing product, product lines, and promotional tools Understand how performance is affected Determined if justified:Cost reductionsProduct alterations (upgrades, enhancements, refinements)Repositioning (market or product line)Changes to marketing approach (private labeling)EliminationsPrice increases/decreasesVolume increases/decreasesService enhancements (income or support)Sales and revenue #1 financial indicator of company performance Tracking and monitoring sales activityIndividual sales peopleNumber of sales calls made per periodAverage number of sales calls per saleAverage dollar size per saleReorder numbers Customer service and feedback system:Monitor customer perceptions, problems, needs, & concernsLead to potential sources of marketing information and opportunitiesCreate tailored marketing tactics and action30 LXFM 502 Measures of SuccessconclusionQuantitative Measures Are numbers measurable? Are the numbers time-specific? Can numbers be tracked by product, customer, sales, territory,& store outlet/distributor?Qualitative Measures Are numbers realistic? Are numbers financially sound? Do numbers reflect seasonal fluctuations?Measuring Tools Interviews Focus Groups Survey Sales Reports Marketing & Media statements Ongoing Marketing AuditsIn conclusion, we really think that focusing on thefamily- oriented values of JCPenney will really benefittheir company.Developing advertisements and promotions whichspeak to each member of the family will increase therange of consumers JCPenney can turn into loyalcustomers.JCPenney will be there during all the importantmoments in the family’s life. Offering services andmerchandise which are convenient, practical, andaffordable make these life moments easier and lessstressfulAnd at JCPenney, they can do it with style.Conclusion jcpenneystyleconvenient. practical. affordablewith31

teamStephanie ButlerFrederick CaldwellShanetha ChisholmCary RobinsonLuxury FashionManagement, MFALuxury FashionManagement, MFALuxury FashionManagement, MFADesign Management, MA32 LXFM 502 Team

Recently, JCPenney has created a long range plan in order to improve the company's performance and . reputation. Our marketing campaign can easily fit within the current plan but it's main focus will be on redefining JCPenney's current target market and reaching out to that specific market. Inclusion & Diversity 150,000 employees