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Executive Summary Research Brand Loyalty Target Audiences Branding Workshop Rompe Barriers Campaign Objectives

We are Circle Advertising. We are hand-crafted. We are a compilation of students from different majors. We represent different opinions and ideas, and yet when we come together, we create something greater than the sum of our parts. With this book, we have done the same. Each page is individual, with every graph and chart handmade, every title and word illustrated. Like the pages of this book and the characters on our team, we know our demographic is individual, and we wanted to represent “Her� the best way we knew how.

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Big Idea Media Strategy Campaign Cycle Reaching Her Paid Executions Owned Executions PEO Integration Introduce

25 26 27 28 29 30 31

Illuminate Engage Empower Associate Incentives Media Plan Budget Pitch & Evaluation


“Treat others as you would like to be treated.” The Golden Rule might be a simple, timeless sentiment, but in 1902 it was the name James Cash Penney chose for his small, dry goods store in Kemmerer, Wyoming. Under The Golden Rule, James Cash Penney built a company that encouraged giving. He decreed that employees should be addressed as “Associates.” His contribution to communities added a touch of heart that would extend to future generations. While jcpenney held a strong positioning in past generations competing against major department stores, it has found itself in a different landscape competing among an ever-changing retail category. It now must stand against mass-merchandisers, upscale department stores, specialty stores, fast fashion retailers and with today’s technology, just as many or more stores online. To succeed in this increasingly competitive and oversaturated market, jcpenney has employed strategies similar to many of these retailers. However, this has led to its lack of differentiation, leading it to drift from its founding values and become irrelevant to Her.

The most significant interpersonal interactions are not those between Her and a sales Associate, but between Her and the people She loves. It’s about the moments She extends to Her inner circle. It’s about those moments when She becomes the living embodiment of the golden rule. It’s about using these moments to connect what’s important to Her with the founding values of jcpenney. By choosing Circle Advertising you are making an emotional connection with Her. Our agency of 51 “Associates” brings concentrations in Strategic Planning, Research, Media, Public Relations, Promotions, Creative and Guerilla Marketing, delivering a fully-integrated marketing campaign that will reach Her in every medium with which She interacts. Also, we are experts in social media. We will leverage this expertise to engage Her in conversations both on and offline. This campaign was developed to make you more relevant in Her life and to integrate you into the moments She holds most valuable, making jcpenney a lifestyle brand rooted in the golden rule. Ultimately, at the end of all of this, you want a loyal customer. And to develop this customer, you must make Her experience, engage and trust in you. With our campaign that integrates not only paid, traditional media, but incorporates spectaculars, promotions and giving initiatives that engage Her, you will develop in Her a brand advocate and reinvigorate the jcpenney brand. jcpenney will not only embody a company with history, but a brand with heart.

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Evaluating jcpenney… Our first step was to understand our demographic. We had to understand Her. We set specific objectives to see who She is and what She cares about. Using “She/Her” rather than “our demographic” will help us focus in on whom we care about and what She values.

Research Objectives • • • • •

Understand how She views jcpenney and how it currently fits into Her lifestyle Evaluate jcpenney’s brand voice Learn how to reach new and current customers in relevant ways to develop and strengthen brand loyalty Test concepts and creative ideas to increase Return on Investment (ROI) and connect to Her Increase shopping frequency and grow share of wallet among current female customers by making jcpenney top of mind

Strengths

Opportunities

Weaknesses

Threats

• Company history, an American tradition • Forward-thinking practices through text messaging, use of iPads in-store, and social media customer engagement • Partnerships with philanthropies and in-store brands • Range of merchandise and affordability in 1,108 store locations with online availability

• Customer perception of organization and customer service • Excessive sales promotions create perception of cheap products • Muddled brand voice

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• Develop customer service initiatives and training among Associates to increase brand reputation • Own the niche between mass merchandisers and upscale department stores as an affordable department store • Target primary shoppers in the household

• Target and other mass merchandisers that offer similar products at cheaper prices • Upscale department stores that offer quality products and more consistent customer service • New entrants (ie. Kohls) in our niche


…and how we fit in Her life Research Methodology

We developed a range of research initiatives that would best capture a snapshot of the retail marketplace as well as Her shopping habits and views of jcpenney and its competitors. Using seven distinct methodologies we generated both qualitative and quantitative research that enabled us to gain insight into Her life.

Professional Interviews

We conducted professional interviews with our competitors’ management, Bloomberg analysts and sociologists on generations X & Y to better understand the retail industry from a business standpoint and gain qualitative research.

Surveys

WOTS

Shopping Shadows

Holiday Observations

Focus Groups

Secondary Research

We developed four surveys to best identify Her: 1. Insights on current macrotrends 2. Views of jcpenney as a brand 3. Reasoning in identifying with brands 4. Elements that build brand loyalty

Every member of our team went to jcpenney, Macy’s, Target, and Kohl’s beginning Black Friday and extending through Christmas to observe shopping patterns, customer service interactions, and general feel of the store to understand jcpenney operations and the people who shop there.

Our 115 Woman on the Street interviews (WOTS) challenged us to capture a psychographic snapshot as we learned about Her relationships, Her career, and Her place in life transitions. Using iPads and iPhones, we surveyed at bridal conventions, antique fairs, and in downtown areas during happy hour.

To determine how to segment our audience, we split our focus groups into four sections: Gen X, Gen Y, mothers, and macrotrends such as health habits and sustainability. This enabled us to establish whether the break in generations and ages would factor into our campaign objectives, and also whether larger trends or having a family changed Her habits.

All team members partnered with women ages 25-34. We accompanied them on trips to the mall. From finding parking, to browsing accessories, to making the final purchase, our team was able to examine Her shopping experience and gain insight into Her habits as a consumer.

We examined retail market analyst reports, studied the history of jcpenney and James Cash Penney, read books pertaining to social media strategies by Seth Godin and Chris Brogan, and evaluated annual reports for both jcpenney and its competitors. With this breadth of information we were able to gain insight into the retail industry as a whole.

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From awareness to advocacy The Brand Loyalty Pyramid identifies two things: where She is now, and where we want Her to be – at the top. Split into four stages, the pyramid segments Her behavior with the brand. Our goal is to move Her up the pyramid, and to get Her into the store more frequently because at the core, brand loyal customers create long-term profitability as they become reliable return customers.

From the bottom up: Non-Customer

Begins progression.

Step 1: Experience the brand

Get Her into the store. She doesn’t realize all jcpenney has to offer and needs to be aware of both the quality and range of merchandise.

Step 2: Trust the brand

After experiencing the value of the brand, She will see jcpenney as an authentic company with heart and a care for the community. Her renewed shopping experience will spark Her investment in jcpenney and what it stands for as a brand.

Step 3: Loyalty to the brand

As She becomes emotionally connected to jcpenney, it becomes top of mind as one of Her preferred retail brands.

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Three different women in three different stages Secondary

Tertiary

Self-Oriented Shopper 38% of the demographic

Practical Shopper 12% of the demographic

Budget-Conscious Shopper 37%* of the demographic

With Her, we have the greatest opportunity for integration into Her upcoming life transitions as She is currently single and without kids. Her self-focused attitude causes Her hobbies, shopping patterns, and social life to revolve around Her.

She is married and developing a stable residence as she settles down. She thinks through all of Her purchases before spending, but enjoys a little splurge every once in a while. It is possible that She has experienced wedding purchases elsewhere, which could be a lost opportunity for brand loyalty.

She is more likely to spend on Her family than Herself, allowing us to capitalize on Her purchase patterns in multiple jcpenney departments. She constantly evaluates how much She spends and sees extra purchases as frivolous. However, She still provides an opportunity, as half of current jcpenney shoppers are mothers.**

Meet Erin

Meet Jessica

Meet Michele

• Single, independent woman • Up-and-coming in her career • At a point in her life where spending revolves around her • Enjoys discovering new recipes and doing yoga on the weekends

• Recently married and moved into her first home • Balancing a part-time teaching job and finishing her credentials • Occasionally splurges on herself but is typically a sensible spender • Fitness-oriented and spends time watching home makeover shows

• Married and a full-time mother of two • Recently moved into a larger home to accommodate her growing family • Primary shopper for her family and budget-oriented • Enjoys watching reality television and staying connected with friends through social media

Primary

Primary Audience

Secondary Audience

Tertiary Audience

*Based on Census reporting which includes an “Other” category. Percentages do not add up to 100 percent as this is based on the total number of women ages 25-34, not just current shoppers. **As stated in the Case Study.

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It’s the character behind the brand In November, Circle Advertising held its first branding workshop to examine how brands establish an identity among consumers. How did Nike become the definitive mark of the athlete? What makes Ikea a reputable destination as opposed to just another discount furniture retailer?

We applied this thinking to jcpenney. How do we ensure the brand translates to our consumer?

We began by identifying brand beliefs and how they influenced brand behaviors. We studied brands including Apple, Nike, and Coca-Cola.

• focus on the individual brands within the store • absence of a definitive message • lack of a relationship with Her

Brand belief: Overarching message that the brand must follow for every decision made. It’s the “why?” behind the brand’s actions.

Brand behavior: Initiatives executed under the brand belief. It’s the “how?” when we execute our beliefs and interact with the consumer.

We discussed how consumers have intuitive emotional connections with certain messages, and how these messages have been used to equate brands with feelings. It’s not simply about computers, sportswear, or soft drinks. It’s about the character behind the brand.

Brand

Belief

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We believe in creativity & innovation

We believe in empowering athletes

We believe in happiness

Insights led us to believe that a strong and cohesive brand message was missing from jcpenney. These findings resulted from its:

By exploring the process by which a product becomes a brand, we came away with the understanding of an architecture to build the jcpenney brand into an idea. She will more readily and more frequently integrate it into Her life, bringing Her into the store more often. The branding workshop prepared us for Rompe to identify who jcpenney is as a brand.


Breaking through The analytical process comes to life in a room full of data, from demographic insights to in-store signage, from television commercials to guerilla flashmobs. Rompe (pronounced: rome-peh), from the Spanish word “to break,” is an annual event we hold on behalf of our NSAC client. For two days, we take over a professional sound stage with 53 stationary boards and two interactive stations, all for us to analyze, absorb, and discuss. In order to differentiate jcpenney from its competitors, it’s imperative to first understand the current retail landscape. Only then can we break out in a new, strategic direction. Every member of Circle Advertising spent 90 minutes studying the research we spent three months collecting. This analysis led to several key insights: • jcpenney lacks a strong brand voice as it focuses on promoting individual labels rather than the store itself • jcpenney has left behind its foundation of the golden rule in an attempt to compete with fast fashion retailers • jcpenney provides its customers with more departments and services than any other department store • jcpenney has a heart for giving, although She doesn’t know it

In the end, we determined that jcpenney should no longer follow the marketing trends of fast fashion retailers or mass merchandisers. It needs a strategy it can really own – something authentic that does not yet exist in the marketplace. It must be something that will develop organically out of the company’s history defined by the golden rule. We found a need to reach Her with a simple, true concept that stands out from a vein of retail advertising saturated with excess and abstraction.

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She’s disconnected from jcpenney…

Lost Brand Voice

James Cash Penney originally named his store The Golden Rule, following his own philosophy:

Generational Perception

She sees jcpenney as Her grandmother’s store. It is outdated. It is old fashioned. It gives Her no incentive to experience the brand.

“Treat others how you’d want to be treated.”

“They seem to market to women older than me.” – Survey

In its drive to be trendy and modern, jcpenney lost that very thing on which it was founded. Its empathy. Its golden rule. Its heart. “To tell you the truth it just seems bland to me, there’s nothing that really draws me to it.” – Thatiana, 30

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“The selection seems to be geared towards a more mature clientele.” – Survey “I think of my childhood, my mom used to purchase a lot of stuff for us there.” – Survey

Promotion Saturation

Subjected to constant promotions from in-store to online, She feels bombarded by sales and perceives jcpenney as “cheap.” “Their sales!…they have sales every weekend.” – ‘Woman on the Street’ interview “I have changed my perspective of thinking. I used to go for the sale to get more for my money. Now I will consciously wait. I will probably buy something a little more expensive for quality because it will save me more money in the long run.” – Darlene, 32


…but we found something She could connect with

jcpenney has developed a long range plan that integrates strategies that benefit customers, Associates, and shareholders, and abides by a mission statement anchored in profitability. Our goal is to integrate a higher reaching message into these current brand philosophies, a guiding belief and form of inspiration for jcpenney to follow. Taking from our primary research, we developed a series of brand beliefs as a motivational direction for our jcpenney messaging as we aim to extend a great deal of heart back into the golden rule.

ROI Measurements

Brand Beliefs

Currently, the average jcpenney shopper in the demographic makes 3.3 visits per year.* This number will correlate to the shopper that Trusts the brand, per our Brand Loyalty Pyramid. With our campaign, we plan to increase this number by at least one trip.

• We believe in treating others how you’d want to be treated • We believe in providing stylish products at affordable prices for every phase of your life • We believe that the most valuable moments are those that are shared • We believe that a company should always support customers, Associates, and shareholders

Because Her spending patterns change with each shopping trip, we will be most successful in calculating how often we get Her into the store, rather than the average dollar amount generated by each shopper’s visit. To calculate this, we will align our Brand Loyalty Pyramid to our evaluation of store visits.

We can convey these beliefs through the use of brand behaviors embodied in our executions. We recommend these beliefs infiltrate every touch point between Her and jcpenney.

*As stated in the case study.

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Big Idea

Extending Heart

Our job is to make sure the golden rule resonates with Her. We examined what She finds important in life and we learned: She values those She loves and the meaningful interactions She shares with them. In these moments, She finds fulfillment in the give and take of gratitude, appreciation, and positivity. The best way to describe this is through “heart.” It embodies all of these emotions, which are individual to the person and authentic to Her. By implementing the Big Idea of Extending Heart, we not only manifest the golden rule, but also focus on the specific moments She values.

Creative Vision

Moment to Moment

Every product we sell Her is more than a piece of merchandise – it is a part of a moment She might always remember. It might be the jcpenney wine glasses for the chardonnay at Her housewarming party, celebrating with friends. Or the jcpenney backpack She bought for Her daughter’s first day of kindergarten. What it comes down to is that each product acts as a touch point for a specific moment – a moment that creates a memory. We will illustrate how jcpenney fits into Her lifestyle, thereby establishing an emotional connection. The Creative Vision of Moment to Moment enables us to recognize both day-to-day moments and lifestyle changes. It establishes a continuity that illustrates how each moment builds into a memory, and it embodies the individuality of Her moments. It’s more than a product. It’s Her life. And we want to Extend our Heart by offering an assortment of merchandise that makes each moment memorable.

Tone

Authentic, personable, heart-warming

Tagline

Your life is our department


A new look at media We have found it too limiting to label media as “traditional” and “non-traditional” or “above-the-line” and “below-the-line.” Media is every connection between a brand and its audience. To think of media holistically, and to best reach Her, we used the PEO model: These categories determine how we gain Her attention. Do we pay for it? Do we earn it? Do we own it?

Paid

Any vehicle that we must purchase. This includes most ‘traditional’ media: television, radio, print, outdoor, and digital. These vehicles attain the most reach over any other medium and help with initial awareness of our campaign.

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Earned

Anything that gives Her incentive to bring jcpenney into Her life as a topic of conversation, whether through word of mouth, public relations or social media. Earned media gives Her the opportunity to interact with jcpenney in a way that is personal and meaningful.

Owned

Any existing touch point we already own. This could include signage, shopping bags, clothing tags, or the jcpenney website. While it is normally overlooked because it is not in the traditional media mix, owned media allows us to influence Her experience of the brand in a cost-effective yet fresh way.


Incorporated step-by-step Extending Heart is implemented in four cycles beginning February 2012 to January 2013. Each cycle pairs a component of our strategic media cycle with our PEO strategy, creating a meaningful relationship between Her and each piece of the campaign. Through these cycles, we are able to break each of our barriers and reach each of our three audience segments. To reinforce that jcpenney Extends Heart year-round, we partner our philanthropies with an Earned media endeavor for each cycle, developing four Extending Heart pillars to further our message.

February – April 2012

May – August 2012

September – December 2012 January 2013

We will emphasize Paid media for this portion because it has the most reach, exposing our campaign to the widest range of people. We will use a concert series to partner our campaign with a recognized artist to increase initial campaign interest.

We will emphasize Earned media for Her to experience the brand. Now that She has seen our message, we want Her to learn about the Extending Heart concept and have a positive jcpenney interaction.

We will place an emphasis on Owned media for this portion as store interactions will bring Her to trust the brand. Our main event will include product interactions and expert opinions to engage Her.

Introduce the campaign by building interest and familiarity with Extending Heart.

• Super Bowl to kick off music partnership • Concert series to premiere print ads • Academy Awards sponsorship for launch of commercial

Foster an understanding of jcpenney’s history and values, and encourage Her to share this with others.

• Beach Takeover 5K Run • 5K entry fees and proceeds to benefit The Y, showcasing jcpenney Extending Heart

Demonstrate value through the instore experience. She believes in the benefits of jcpenney because She has experienced the brand first-hand.

• Customer Service Map App will launch • Giveback Getaway will increase product interaction • “My Department” Membership Card push

Acknowledge the benefits of Her decision to shop at jcpenney, and reward Her for being a loyal customer. We will place an emphasis on Earned media to affirm Her purchases. We will Extend Heart in the form of storewide events so the messaging is organically shared by both Her and Associates, rather than coming directly from us. • “Fresh Look” event • Random Acts of Kindness for Associates • Boys & Girls Clubs of America volunteer opportunities

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Our message is the one She hears We know our challenge: communication is in Her hands. We provide the content, but She decides when, where, with whom, and how She will listen to us. Our executions must be meaningful to Her and Her lifestyle in order to engage Her. When She is engaged, She’ll invite us into Her community. This is how She becomes a brand loyal customer. We offer a well-integrated media plan to build a connection between each execution, thereby establishing ROI and developing a relationship between our online and offline initiatives. Our website, social networks, and mobile capabilities all reinforce each other and bolster our efforts in-store and in Her life. It’s not about online versus offline anymore; Extending Heart is a concept She can access anywhere, anytime, in the way that best suits Her lifestyle.

Our campaign strategy accounts for a wide range of women 25 – 34 in our messaging. This enables our Self-Oriented Shoppers, Practical Shoppers and our Budget-Conscious Shoppers to access Extending Heart in the way that best relates to them. With Extending Heart, we can ensure that our message is consistent, regardless of the manner in which She chooses to engage with the brand.

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Extending Heart: A how-to guide To reestablish jcpenney’s brand voice, we developed a creative strategy with objectives and mandatories that unify the executions of our campaign under the Big Idea. 1. We will embody the idea of the golden rule and our history, reestablishing the heart of jcpenney as a brand that gives back and encourages Her to extend Her heart. 2. We will illustrate the idea of sharing moments, moment to moment, in every moment to embody our creative vision into every execution of our campaign. 3. We will position jcpenney as a lifestyle brand that focuses on how jcpenney products are integrated into Her moments, connecting them to the emotion of the moment associated with the product. 4. We will embody the style that jcpenney highlights by using visually appealing imagery and represent Her individual style through custom fonts. 5. We will make an emotional connection to Her, adding value to the products and differentiating jcpenney from Macy’s and Target. 6. We will reinforce our four philanthropic pillars: FIRST, The Y, 4-H, and Boys & Girls Clubs of America.

The Extending Heart Style

Extending Heart executions follow a specific style guide to unify all elements of the campaign. • Red box representing the “department” signs • Hand-illustrated titles • Inclusion of “The” and “Department” • jcpenney logo • Your life is our department tagline • Call to action: jcp.com

the

department

jcp.com

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Capturing Her moments... Bringing Our Vision To Life

These are examples of our print and OOH executions. Each moment has custom, hand-drawn typefaces to embody its individuality. No two letters are the same, just as no two moments are the same. The products aren’t just accessories or clothes, they are a part of moments, represented in “The Business Luncheon Department,” “The Dress Up, Stay In Department,” and “The Opening Night Department.”

jcp.com

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the

the

department

department

jcp.com

jcp.com


...and bringing them to life :30 Second Spot “Erin’s Moment”

Our :30 second spot focuses on our Self-Oriented shopper as we capture her life transition moving into a new home. The celebration of an “annual housewarming party” celebrates the individuality of the moment. The combination of jcpenney products and the company of people she cares about create a moment she will never forget.

“The first housewarming was four years ago, this weekend... The place is still warm” - Erin

A husband and wife enter with two kids, who rush for candy on the counter.

Scott comes up to Erin, holding a red gift box.

Scott joins the crowd. Her friends introduce themselves to the new guy.

Subway Tunnel Spot (storyboard)

A live-action scene of an unexpected subway romance will unfold on the walls of subway tunnels as riders pass by. The headline will read, “The How We Met Department.”

“When I was looking for a place, I knew I wanted to entertain. I love everything about it...”

Scott, late 20s, approachably handsome, enters the apartment.

Title card appears: “Scott just moved in next door.” Erin blushes and shoots her The Good Company Department eyebrows up – a wink of excitement jcpenney. your life is our department

Subway Car Takeover

Print ads featuring subway-inspired moments will be posted inside subway cars. It’s not just about where She’s headed – jcpenney is there for those moments along the way.

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Using conventional mediums in unconventional ways Little Things Radio Spots (not pictured)

Radio spots will play on hit stations featuring daily jcpenney Little Things challenges to start Her day.

the

Guerilla Wild Postings

department

The Little Things Department will post “nice deed” suggestions on the walls of Her neighborhood to encourage Her to Extend Heart to others everyday.

News Rack Tags

A paper’s not just a paper. It’s one of those Little Things that makes Her life brighter.

Times Square Takeover

What Little Things make Her smile? Digital billboards will display a live Twitter feed of Little Things as She challenges others to do good under the hashtag #thegivingdepartment. The takeover will launch with jcpenney’s Little Thing of the day – distributing square, red, branded umbrellas throughout New York City during our Engage Cycle.

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Kinect

jcpenney has used innovative technology to enable Her to virtually try on clothes at home. We’ve expanded this idea using the Kinect, an innovative console that enables Her to connect to the new membership program.

Black Friday Coffee Giveaway

She woke up with a mission to accomplish. We’re there to help, with coffee to hand out as She enters the mall.


Extending gratitude through takeaways and challenges

http://jcpmothersday.com/michelekahn

the

department

happy mother’s day, michele!

Mother’s Day Gratitude

Family members can send customizable jcpenney Mother’s Day cards to Her home that include a personalized link. Upon visiting the link on Mother’s Day, She will find a recorded video of Her family’s gratitude, with links to share the video with friends. A jcpenney gift card may also be included.

jcp.com

share

meet

, a fun friend that can’t wait to hang out with you!

you can even put him together without glue or scissors. have fun!

The Moment Cam

On New Year’s Eve in Times Square, a roaming camera will send a live feed to the digital billboards, with the footage centered in a jcpenney Moments Frame.

Guerilla Moment Frames

To tease our New Year’s Eve event, 30 life-size branded picture frames will spot Manhattan. A picture frame makes any moment worth remembering.

Craft Supplies, On Us

Inserts in parenting magazines will contain branded paper cutouts of Ralph, jcpenney’s little monster… something fun for Her little monsters!

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Using owned media to build trust... “My Department” Membership Program

A membership program allows Her to shop online, in-store, and receive tips and promotions based on a tracked purchase history, separate from the credit card. The foundation of the rewards program is rooted in the idea that it should work to fit Her lifestyle. • E-receipts enable Her to track Her purchases • “Wish Lists” can be sent to friends and family • Recommended purchases will appear based on purchase history • She can opt-in to receive promotions, both sales and events • She can refer to a phone number if She forgot Her card • Her “My Department” can link up to Her Facebook profile, as well as Her Kinect • An iPad App will make the program available anywhere, anytime • As She earns points on purchases, She will receive discounts on products, similar to the current rewards program

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...and energize her store experience Customer Service Map App

We will encourage Her to share Her best customer service interactions online to Extend Her Heart to Associates. Using a smart phone or through Facebook, She can check-in on the Google Map inspired Facebook page, where nearby check-ins will also appear. Associates will be encouraged to help customers in order to accumulate check-ins, and She will feel invested as She has the opportunity to give back. This will be introduced during the Engage Cycle, and for every 100 posts, jcpenney will donate $1000 to 4-H.

In-Store Philanthropy Messaging

During each media cycle, we’ll position one of jcpenney’s four philanthropic partners throughout our stores. iPads will feature photos from employee volunteer days and information on the organization, periodically including #thegivingdepartment Twitter streams. Customers can also purchase $2 sustainable shopping bags benefitting the philanthropy of the cycle.

the

department

Mannequin Moments

Mannequins featuring apparel and accessories for different moments in Her life will spot each department’s floor in order to incorporate Your life is our department into in-store messaging.

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We help Her, so She can help us She is exposed to over 3,000 corporate messages every day. Most of them She doesn’t process – it’s just noise. Our task is to execute our initiatives in ways that fit organically with Her lifestyle. We will make jcpenney’s Extension of Heart and its philanthropic efforts something She’s willfully aware of by using Earned media.

PR Strategy

Promotions, public relations, and spectaculars build upon our Paid endeavors to develop a fully-integrated marketing campaign. Each media cycle acts as a pillar for an Earned grouping of initiatives.

To embody Extending Heart and change Her perception of the jcpenney brand, our PR initiatives will communicate jcpenney’s efforts with communities, Associates, and customers in a way that reaches Her. She will be extending heart to future generations by helping them, as each organization is dedicated to cultivating the community and developing future leaders. These events help establish jcpenney’s brand beliefs and behaviors, breaking the barrier of Lost Brand Voice.

Promotion Strategy

Our promotions will encourage Her to Extend Heart everyday. We will focus on moments She experiences, rather than focus on sales that She expects of jcpenney, thus breaking the barrier of Promotion Saturation. • Each media cycle will include an event to correlate with one of jcpenney’s four primary philanthropies • Two will kick off the fall and spring fashion lines, while the others will center on a music partnership and giving back • Integrating spectaculars into each media cycle generate awareness

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While jcpenney has granted more than $100 million to its after school initiatives – FIRST, The Y, 4-H and the Boys & Girls Clubs of America – and won a variety of awards for diversity and customer service, our research showed that She wasn’t aware of this.

• Associates will share information with Her and participate in initiatives to illuminate giving • Continuing current jcpenney partnerships will enhance Extending Heart by furthering its relationships and helping the community We will employ a social media strategy to bring our offline initiatives online to generate a larger conversation – each promotion has a Facebook, blog, or Twitter element that allows Her to participate nationwide. Using #thegivingdepartment hashtag throughout the year will incorporate our philanthropies digitally into each promotion.

Concert Remix

Beach Takeover

Giveback Getaway

Fresh Look

February – April

May – August

September – December

January


Launching the campaign Florence and the Machine Partnership

FIRST and Will.i.am

Super Bowl Teaser (Feb. 5, 2012)

• Flash drives will be sold with exclusive remixes from Florence and the Machine and Will.i.am; information on FIRST will also be included • Concert goers can vote on their favorite robot by tweeting #thegivingdepartment hashtag, with the winning team’s robot featured in their local jcpenney

As the partnership with Rascal Flatts comes to a close, a new music partnership will provide a great platform to launch the Extending Heart campaign. In order to attain the most reach and awareness, we’re associating with the up-and-coming, Grammy-nominated band Florence and the Machine.

As a teaser for our official campaign launch, Florence Welch of Florence and the Machine will perform the National Anthem at the Super Bowl. During the performance, She will wear jcpenney clothing to introduce our partnership.

Concert Remix (Feb. 9-23, 2012)

Florence and the Machine will perform in San Francisco, Houston, Tampa, New York and Chicago leading up to the Academy Awards to launch the jcpenney print ads. This concert series will best connect to our Self-Oriented Shopper. • As this event is partnered with our philanthropy FIRST, we will have its celebrity spokesperson Will.i.am as a featured guest • Free tickets will be available in nearby jcpenney locations

Our FIRST partnership, an after school program for kids who participate in robotics building competitions, will be featured in an interactive tent at each concert.

Academy Awards Sponsorship (Feb. 26, 2012)

We will launch our commercial at the Oscars as a part of our 11th annual sponsorship. For the week leading up to the Oscars, we own the promoted tweet #Oscars to generate early awareness using Paid Media. • Users can tweet this hashtag before the Oscars to send good luck sentiments and submit questions to the stars, with a jcpenney red carpet correspondent reporting the tweets at the pre-show • An iPad application will offer Her the opportunity to vote with poll results posted on TV during the pre-show

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Educating Her on our initiatives by getting Her involved Beach Takeover (May 26-28, 2012)

The Y Beach Run

Over Memorial Day Weekend we will take over five beaches each in California, Florida, and Texas for a 5K run, where we can combine Her desire to stay active and our desire to connect to Her lifestyle. This initiative will emphasize California, Texas and Florida to target areas where jcpenney wants growth, and to expand our Earned brand impressions.

• Local chapters will be invited to participate in the 5K • Employees will be encouraged to bring their families and participate • Event branded water bottles, sports bags and towels will be sold with proceeds benefitting The Y • Proceeds from the 5K entrance fee will also go to The Y; participants can give sponsorship donations to the organization as well

• At the end of the run, She can relax on jcpenney outdoor gazebos stationed in the sand • Gazebos will feature signs in the same style as the print ads that read “The Shade Department,” with QR codes provided for Her to look up and order the products online

Social Media Cabana

To make the beach takeover interactive, a cabana will be dedicated to social media where She can take and upload pictures to Facebook and Twitter under the hashtag #thegivingdepartment, creating live event coverage.

Training Run Stunt

During the three weeks leading up to the event, we will set up Saturday runs on the designated 5K trail to train. • Improv teams will set up a impromptu “finish line” where they will hold red ribbons across the trail and cheer the group on to race across the finish • Creating moments will invigorate Her for the upcoming race • We will make a viral video and take photos of these surprised women to share the moments online

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Interacting with jcpenney in the city Giveback Getaway (Oct. 13-14, 2012)

By sharing a video on Facebook of a moment made special with a jcpenney purchase, She will be entered to win an all-expense paid trip to New York City for Her and one friend. The top 10 moments will be user-decided, and winners will participate in three jcpenney-sponsored events from our various departments, allowing us to Extend Heart in every facet of Her life. This event breaks the barrier of Generational Perception as we merge with the things She cares about.

Event includes:

• A $5,000 shopping spree and fashion tips from Tim Gunn, chief creative officer of Liz Claiborne • A home decorating workshop with David Bromstad, host of HGTV show Colorsplash • A cooking class with Rachael Ray of the Food Network and The Rachael Ray Show

Head, Heart, Hands, and Health

We will partner with 4-H, an organization rooted in promoting community, environment, leadership and healthy living, in order to correspond with the cooking aspect of the Giveback Getaway. The cooking class will incorporate: • Farm fresh produce • Information on 4-H initiatives • A take-home flower pot and basil seeds to plant • A thank you card from the 4-H students We found that She and Her friends were enthralled with the cooking class. One woman representing our tertiary market “Michele” said: “It’s sort of a frantic cooking experience when you’re under a timeline [cooking at home]. Tonight was just cooking to enjoy it. It was great. I have two kids who will enjoy not only eating but being incorporated into the making of food – they would really love that.”

#Thegivingdepartment Live Feed

A live feed of #thegivingdepartment will be featured on digital billboards in Time Square, launching at the Giveback Getaway event. This is Extending Heart on the big stage, in real time, from moment to moment.

Flip Cam Partnership

Participants will be given Flip video cameras to document the weekend and to share with friends and family. Videos will be posted to the jcpenney Facebook, Youtube channel, and will be featured during the Times Square Takeover.

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Affirming our relationship with Her Boys & Girls Clubs of America

presents

At Fresh Look, She can start Her year off right by helping Her community. We will profile local service learning chapters to inspire Her to help and provide information for Her to volunteer. Boys & Girls Clubs of America shopping bags will be available for purchase for Her new spring wardrobe.

Random Acts of Kindness find out more here

This event will be featured on the Boys & Girls Clubs of America website

Fresh Look (Jan. 19, 2013)

Those who participate in the “My Department” membership program will receive an exclusive after-hours shopping experience to have the first look at the spring line of clothes. • Every jcpenney store will host the event to bring Her in-store and reinforce Her belief in the brand • By hosting the event store by store, we will localize the campaign and focus on the idea of giving back within the community • We will treat Her with champagne, fruit and Harry & David chocolate

The concept of jcpenney C.A.R.E.S. arrives in-store during January to celebrate Her individual values and causes. The store with the best customer service interactions based on the Map App will give 100 customers checks for charities of their choice over the course of the month, ranging from $1 to $1000. By creating an Extending Heart interaction directly from Associate to customer, we also re-invigorate Associates and their belief in the campaign. This initiative will aim to garner media attention. event

pitch date

publication

pitch line

Super Bowl

1/30/2012 2/3/2012

Concert Remix Academy Awards

2/8/2012 2/13/2012 2/20/2012

People Style Watch Entertainment Weekly Paste Magazine E! hypemachine blog People Style Watch E! Harper’s Bazaar

Florence Welsh and jcp partner for the National Anthem Florence Welsh to perform National Anthem at Super Bowl Florence Welsh opens Super Bowl with National Anthem Florence Welsh and jcp partner for the National Anthem Florence and the Machine to perform 5 free concerts Users choose best dressed through Twitter User tweets go straight to the red carpet Users choose best dressed through Twitter

The Y Beach Takeover & 5K

4/18/2012 4/25/2012 5/2/2012 5/23/2012

ABC CBS Fitness Magazine LA Times Florida Times Union The Caller Times

jcp-sponsored beach 5K to benefit The Y jcp-sponsored beach 5K to benefit The Y Run a Memorial Day 5K for The Y jcp-sponsored beach 5K to benefit The Y Run a Memorial Day 5K for The Y Run a Memorial Day 5K for The Y

Marie Claire w/ Tim Gunn Color Splash David Bromstad Everyday with Rachael Ray popular blogs Rachael Ray Show

Tim Gunn to teach style tips for jcp’s Giveback Getaway Bromstad to teach home decorating for JCP Rachael Ray teaches healthy eating with local 4-H chapters jcp gives back by giving context winner weekend in NYC Rachael Ray teaches healthy eating with local 4-H chapters

Orlando Sentinel Chicago Tribune Daily News Philadelphia Inquirer Denver Post Houston Chronicle

jcp Extends Heart by extending hours for Spring line preview jcp Extends Heart by extending hours for Spring line preview jcp Extends Heart by extending hours for Spring line preview jcp Extends Heart by extending hours for Spring line preview jcp Extends Heart by extending hours for Spring line preview jcp Extends Heart by extending hours for Spring line preview

Giveback Getaway 8/20/2012 8/22/2012 8/27/2012 8/29/2012 Fresh Look

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1/1/2013 1/8/2013


Spreading our message on a grass roots level When it comes to Associate relations, we have to invest in them for them to invest in us. Our initiatives transform the role of the Associate to a vital participant in a system founded on the belief that we all deserve to be treated with Heart.

Extending Heart Conference

• jcpenney store managers will attend regional Extending Heart conferences designed to ignite a grass roots adoption of our campaign in their stores at the start of our campaign • Attendees will participate in classes that provide product interactions to make them experts in-store and better their customer service • The annual James Cash Penney award, given by jcpenney, will be announced at the conference to celebrate an Associate who embodies the golden rule — and Extending Heart

Our Department Associate Blog

A blog for both upper and lower management will create transparency between management, Associates, and customers. It will be split into different tabs, which include:

Associate Promotion Integration

Associates will participate in each of the philanthropic partnership events. They will learn about the initiatives from store managers who attended the Extending Heart Conference and also through the Our Department blog. • FIRST: Associates in the concert cities will receive free tickets • The Y: Associates’ families can participate in the beach 5K • 4-H: Associates will volunteer at local chapters’ cooking classes, with footage featured at the Giveback Getaway Event • Boys & Girls Clubs of America: Selected Associates will give random customers $1 to $1000 for the charities of their choice to let them participate directly in Extending Heart On March 5, 2011, the public relations department of Circle Advertising volunteered at the local 4-H in Costa Mesa, California for hands-on research of the organization. Our members returned feeling like they both extended their hearts and gained a great deal from the event in both helping others and learning about healthy living.

• A blog written by the CEO and a guest blog, written by different sales Associates each week • A Store of the Month tab to highlight Map App store successes • Interactive content on the philanthropic partners and promotions http://ourdepartment.jcp.com

department

welcome, shannon!

employee blog

log out july 11, 2011

dana morello jcp sales associate plano, texas The longer I live the more I become a believer in what I refer to as “expectation management.” Expectation management is the science and art of controlling what someone might expect from any situation. It might be a store where we expect shelves that are filled with merchandise and employees who are attentive to our every need. We learn how to WOW our customers by exceeding their expectations. The difficulty occurs when we try to determine what exactly the customer expects. If we think something is a WOW but they just saw it in two different stores, it is no longera WOW to that customer. The same rules apply to employer/employee relationships. Employees need clearly defined tasks, goals, and even ways that they can WOW their bosses. Can an employer be too good? Yes, they can be good to a fault. How does that occur? It is when the manager overdoes praise for every little thing and gives the employee a false sense of job security or an attitude that “I don’t have to kill myself-- they already love me here.” Then when the performance drops, the constant flow of praise ends and creates negative feelings and friction among the entire staff. We have all seen where we hire a new employee and they really impress us with how hard they are working. Then, slowly over a period of weeks or months, that work ethic starts to disappear. It’s as if they no longer have to impress the boss and they become lackadaisical. There is another area that creates friction between the manager and employee. That is when you deal with contrasting belief structures. The most common of contrasting belief structures is when a store owner who has a natural attitude toward entrepreneurship and the employee is a person who lacks any type of entrepreneurial thinking. The entrepreneur says, “Let’s make it

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2012-2013 cycle television 30-second spots broadcast cable Oscars sponsorships Design Star The Ellen Degeneres Show Modern Family Super Bowl Valentine’s Day print 1 page 4 color Allure American Baby Bridal Guide Brides Cosmopolitan Elle Entertainment Weekly Fitness Fit Pregnancy Glamour InStyle Lucky Parenting Parents People People Style Watch OK! Magazine Us Weekly Vogue custom inserts full page games stickers newspaper drive-in movie ad half page direct mail moment picture frame Mother’s Day cards radio traffic/weather reports 30-second spots Pandora station sponsor Radio Moments sponsorship online banner ads Groupon #Oscars Youtube takeovers mobile game banner ads gaming: Xbox Kinect in-game placement page feature out of home billboards Interactive Moments wall mall takeover moments frames newsracks New Years Eve digital sign Times Square digital takeover wallscapes wild postings airports backlit dioramas jcp airport lounges jcp vending machines in-gym super panels inside/outdoor panels transit bus full-wrap bus shelters subway interior subway exterior wall

March ‘12 April ‘12 May ‘12 Feb. ‘12 Aug. ‘12 Sept. ‘12 June ‘12 July ‘12 30 6 13 20 27 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 1 Introduce Illuminate

Oct. ‘12 Nov. ‘12 Dec. ‘12 Jan. ‘13 impressions 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 (in thousands) Engage Empower

spend (in thousands)

2,897 428,833 43,000

$9,373 $16,047 $6,800

2,200 2,740 12,700 111,000 4,080

$50 $200 $300 $1,000 $1,959 $12,779

4,200 6,000 486 964 15,000 4,503 6,900 4,500 1,500 4,500 5,100 3,300 8,600 8,800 27,600 3,875 1,600 5,850 2,400

$550 $582 $116 $257 $1,185 $565 $674 $444 $166 $419 $454 $360 $544 $580 $2,308 $373 $154 $571 $315

6,850 12,201

$600 $1,200

3,641

$362 $160 $150 $10 $10,799 $580 $10,162 $40 $18 $6,672 $6,070 n/a $202 $400 $17 $17 $400 $100 $300 $25,273 $4,617 $539 $1,000 $18 $6 $5,000 $1,067 $9,270 $15

Sources: bluelinemedia.com, clearchanneloutdoor.com, garysimon.net, medialifemagazine.com, Media Market Guide, SQAD, Inc., Tarrytown, NY, Summer 2007

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50 20 493,993 17,564,205 10,400 54,888 617,555 233 20,000 410,000 11 186 18,000 584,098 62,162 5,601 25,000 30,000 501,000 1,500 371,349 25,000 77,259 38,629 38,629 189,000 10,000

total impressions total cost total spend

120,000 120,000 240,000 4,300

$35,729

$910 $26 $416 $510 $510 $835 $240 $240 $140 $163 $500 22,356,390,099 $91,830,168 $99,865,307


Check, please!

Top 20 Markets for Extending Heart

Television Print Direct Mail Radio Online Mobile Gaming Out of Home

Contingency Commission

$35,729,758 $12,779,172 $160,000 $10,799,496 $6,671,773 $16,988 $400,000 $25,272,980

$1,147,877 $7,021,955

New York, NY Los Angeles, CA Chicago, IL Philadelphia, PA San Francisco/Oakland/San Jose, CA Dallas/Fort Worth, TX Boston, MA Washington DC Atlanta, GA Houston, TX

Detroit, MI Phoenix, AZ Seattle/Tacoma, WA Minneapolis/St. Paul, MN Cleveland, OH Tampa/St. Petersburg, FL Miami/Ft. Lauderdale, FL Orlando/Daytona Beach/Melbourne, FL Sacramento/Stockton/Modesto, CA San Diego, CA

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The scorecards are in Metrics

Our campaign generates more than 22 billion media impressions. Of these, roughly 3.9 billion media impressions reach Her. Our reach with Extending Heart will move Her up the Pyramid of Brand Loyalty, thus bringing Her into the store more often. The increase in shopping trips depends on where She currently lies on the Pyramid of Brand Loyalty.

Pyramid

Annual Shopping Trips

Targeted Annual Shopping Trips

Post-Testing

As a final research phase, we conducted post-testing in the form a focus group to test creative concepts and finalize our campaign direction. Participants identified with our messaging and responded positively to the Big Idea, Creative Vision, and tagline. Here are their thoughts: “My moments don’t have to be monumental, it could be how my little boy smelt a particular day or how I felt on my wedding day. For whatever reason I flash back on that particular moment.” “It makes me think of when I put my heart into something and give it 100 percent to make my moments as special as possible without letting them slip by.” “It’s not just a place where you go buy things but it is more community based.” “When you stick ‘Your life is our department’ in that context, I’m directly thinking of the departments in there that will help my life.” “I see it as jcpenney extending their heart. It’s a warm statement, a heartfelt statement.”

Pitch As a whole, Extending Heart will increase Her annual shopping trips by an average of 1.25 trips to jcpenney per year. This includes the acquisition of new customers in our target market. We are confident that Extending Heart can generate this optimistic increase in store visits.

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She is making transitions that lay down the foundation of Her life, whether it is buying a home, growing a family or establishing Her career. We have the opportunity to build brand loyalty as She moves through life’s changes by aligning ourselves with the things She cares about. She wants to focus on the people She loves, and the relationships She builds. Through Extending Heart, we will be integrated into Her moments as She equates Her jcpenney purchases with extending gratitude, appreciation and love. We will develop an emotional connection with Her as we align with the things that mean the most to Her, in every department of Her life.


the advocates of #boycottsleep Executives Lexi Vanni, Chief Operations Officer Anna Duffy, Chief Strategy Officer Simon Blockley, Chief Creative Officer

Account Planning Nick Dudgeon, AP Director Jon-Michael Herrmann, AP Director Brian Chandra Nathalie Con Kayla Glass Laura Hantke Mallory Jackson Alicia McManigal Anne Portwood Lauren Schreiber

Creative Myles Scovill, Creative Director Ariel Fisher, Creative Director Kate Eglen, Senior Art Director Ali LaBelle, Art Director Rachael Morello, Art Director Molly Hersh, Copywriter James Ramsay, Copywriter Chris Cresci, Production Kellen Moore, Production Jocelyn R.C., Production CK Spitler, Production

Media

Advisor

Emily Sopo, Media Director Alyssa Aoki, Budget Coordinator Vee Brothwell Maddy Duyck Robby Furrer Matt Jekowsky Genevieve Lau Samantha Roper Massis Shahmirian

Cory O’Connor

Promotions Amy Chase, Promotions Director Ashley Coffey Eric Davies Emma Davis Caitlin Griffin Kristen Kubiak Sam Militante Mark Perring Taylor Underwood

Public Relations Chelsea Freitas, PR Director Bryce Anderson Kaitlyn Halamuda Stephanie Kent Joel Porter Jillian Sorem Justin Staton Aubrey Swift Dayna Wolpa

Special Thanks Bob Bassett Chris Brogan Chapman Department of Art Eric Chimenti Jim Doti The Duffy Family Dodge College Judy Elmore Seth Godin Cheril Hendry Mesa Goathill Go-Getters 4-H Michele Kennedy Dezso Magyar MK Printing Jerry Price Ray Roschmann Veston Rowe Robert Sevaly Janell Shearer Daniele Struppa Pete Vander Pluym

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NSAC- Extending Heart JcPenney Campaign