Executive Summary

Situation Analysis

Strategy & Integration

Integrated Brand Promotion Programs

Measurement & Evaluation



This plans book presents the Texas Advertising Group’s (TAG) recommended national, fully integrated marketing campaign for JCPenney (JCP) targeting females 25-34. The campaign runs February 1, 2012 to January 31, 2013 and is designed to acquire new and retain existing customers to grow JCP’s share of wallet from this segment. TAG has established an overall marketing objective of increasing sales to females 25-34 by $210 million. This will be achieved primarily by garnering new business from three main competitors (Kohl’s, Macy’s and Target) and by increasing sales to current JCP customers who are members of the target. TAG’s recommended $100 million satellite campaign is built around the positioning and brand architecture used in the currently successful “We make it affordable, you make it yours” campaign. All TAG’s recommendations are based on a research foundation that includes 365 mind-maps, 9 indepth interviews, an online survey with 102 respondents, as well as extensive secondary research. Based on these building blocks, TAG analyzed females 25-34 and concluded that they are an extremely diverse group that breaks down along maturity fault lines. For example, the target includes Fresh-Faced Practical Pros (25 – 27), Newly Married Go-Getters (28 – 30) and Fashion-Conscious New Moms (31 – 34). Although these groups are diverse, TAG’s single big idea is focused on the emotional bond between the targeted females and retailers that bridge the entire demographic. This bond is based on the fact that the strength of a relationship between a customer and a retailer relies not only on the merchandise sold, but more importantly, on the stories created by the customer, based on their experience with that merchandise. The campaign will achieve the increased sales objective by utilizing a media strategy built around engagement, buzz, cohesion and utility, as well as a creative strategy that focuses on the stories created by females 25-34 based on their experiences with JCP’s clothing. In order to continuously and effectively reach the target, the 360-degree media plan is built around touchpoints that are both traditional and non-traditional. Non-traditional touchpoints include Groupon, Pandora and Shazam. The media and creative strategy will be complimented by TAG’s suggested new partnerships with Seattle’s Best, Glamour’s Young & Posh and Carrie Underwood. Importantly, TAG recommends against adding additional clothing lines but instead highlighting JCP’s new partnerships with MNG by Mango and Call It Spring by Aldo. In conclusion, TAG’s strategy of focusing on the emotional bond between a customer and a retailer will create a lasting impression of JCP among females 25-34. Through TAG’s fully integrated campaign of creative, media and partnerships plus an enhanced digital and in-store experience, the target will be effectively reached. TAG is confident that this marketing campaign will deliver the $210 million in sales that will signify success.

This chapter presents a JCP company and brand history, a brief evaluation of JCP’s products and service mix plus an overview of TAG’s primary and secondary research findings. This chapter concludes with TAG’s SWOT analysis.

JCP: A Company Rich with History
JCP is more than a department store; it’s a place where stories begin, where the first page to many life chapters are turned. Whether it be a new graduate searching for the perfect suit for her first interview, the love-smitten bride registering for all her essentials for the next twenty years, or a soon-to-be mom eagerly anticipating her new baby’s arrival; all of these women and their lives are as genuine as the store they love to shop at, JCP. Since its inception, JCP has stayed true to a platform revolving around hard working Americans and treating both consumers and employees no less than the way they would treat their own families. From the first time the flagship store opened its, then, quaint shop doors in 1902, JCP has evolved into a household name and a major player in the nationwide retail industry. From the beginning, JCP has been home to affordable, fashion-forward brands at the national level and even host to select private brands exclusively designed for JCP. JCP’s tenacity and flexibility in adapting to changing times and social demands is evident in its thriving ecommerce site and expansion to over 1000 department stores in the US and Puerto Rico, continuing the story telling of not only a mere department store, but building the story of it’s shoppers for over 100 years.

A Look at JCP Products & Services
TAG recognizes that JCP is more than a seller of merchandise, but also a source for giving life to that merchandise. Because JCP plays an integral role in many life stage developments, there are several very large categories where JCP acts as a major player. Staying aligned with modern trends, JCP’s broad scope of products and services are available not only through classic “Brick and Mortar” stores, but also has successfully expanded to the online space, with most transactions taking place through JCP.com, but also through social media and mobile applications.

“I go to Penney’s as a retreat.”
April Rains, Age 28

Services and other

Women's Apparel Men’s Apparel Home Women's Accessories Children’s Apparel Family Footwear Fine Jewelry

As the pie chart from the case indicates (left), JCP’s sales are concentrated in three major categories: women’s apparel, home fashions, and men’s apparel. However, women’s apparel and accessories, which are the prime drivers of department store selection, constitute 35% of JCP’s sales. JCP also offers services including full salon services, professional portraits, and a comprehensive baby and bridal gift registry. JCP’s versatile product offering reflects the individuality of its target and its versatility in not only fashion styles, but lifestyles. JCP has successfully recognized its changing demographic and has responded 4% 11% in a bold way by introducing modern, fashion-forward brands to better embrace the style quotient of the19% name. JCP
19% JCP is not like every department store, and that is one of its greatest assets. JCP’s key differentiating factors include: (1) Sephora product offerings within JCP; (2) exclusive7% brands including- MNG by Mango, Call it Spring by Aldo, Liz Claiborne and American Living; and, (3) host to private label brands, each one exuding a distinct look, including: 11% Arizona Jeans, St. John’s 24% IYRonson, and many others. Bay,

Secondary Research: Key Insights
Based on Mintel’s Department Store Retailing August 2010 Report and Mintel’s Clothing Shopping December 2010 Report, TAG has identified the six key insights stated below. These insights into females 25-34 were critical in the development of TAG’s plan. 1. Shopping is a social experience. 2. As this demographic matures, the once frivolous shoppers, now view most purchases as an investment. This is where the importance of creating value perception is key. 3. In all categories of purchases, females 25-34 identify themselves more closely with younger females than their older counterparts, indicating their desire for younger styles and attire for jump-starting their career. 4. When it comes to shopping, these women do their homework. The Internet is a major research tool, with in-store follow-up purchases not far behind. 5. The way clothing fits becomes more important with each passing year. As they age, these women want clothing that fits well, polishes their look and can still be personalized. 6. JCP customers have a desire to be rewarded for showing loyalty to their favorite stores, and they long for a more personalized relationship. The JCP woman feels like her favorite store is a large part of her life; she creates a relationship with the store and wants to feel as if she is as important to the store as they are to her.

Primary Research
TAG’s primary research focused exclusively on females 25-34 and consisted of the following: (1) 365 mind maps; (2) 102 online survey respondents; (3) 9 in-depth interviews; (4) ten on-spot interviews; and, (5) an in-store and general retail observation study. Based on this primary research, TAG derived six key insights. These insights provide the basis of TAG’s target market definition and all other strategic and tactical recommendations.

1. Maturity Fault Lines: Different life stages, same wants.
Within the age range of 25-34 there are three major “maturity fault Lines” which TAG identified through our primary research. These women have distinct personalities and are in differing life stages. However, while this effects the media placement and messaging strategies used, all women in the target essentially want an exciting brand experience that offers stylish merchandise that they will cherish and value over time.

2. Time: A precious commodity.
Females 25-34 are pressed for time. Whether it be due to a bustling career or a demanding family/social life, shopping is an activity that is squeezed into a tight time frame. This impacts a variety of targetrelevant decisions including choosing between free-standing versus mall department stores. 3. Motivation: “ME time” Whether “burden” or “escape” shoppers, both segments of the target want shopping to be as painless and enjoyable as possible. Many women interviewed depicted shopping at JCP as “an escape” or “a time to relax”. This “ME time” sentiment plays a strong role in decision making in the target’s choice of where to spend their limited shopping time. 4. Brands: Appreciated, but not a deal breaker. Many members of the target communicated that brand names were less important than style quotient and versatility of the merchandise in their purchase decisions. 5.Value: It’s a perception not a dollar amount. The target perceives value as a combination of merchandise quality, item price and brand personality perception. No one variable dominates. 6. Lineage: A missed opportunity. A majority of the targeted females interviewed, as well as those surveyed online, reported having visited JCP at some point in their lives. Many of these women experienced JCP as youngsters with their family, most often with their mothers. However, many of these women are not continuing the lineage of JCP being the family shopping destination for their own lives and new families.

Based on these six insights, TAG developed the following profile of the targeted females 25-34: They are REAL women: • Independent shoppers; they don’t like being hounded by salespeople • Frugal and proud of their ability to save • Apathetic to high-end branding They lead REAL lives: • Limited spare time • A desire for versatility • Family and friends are a high priority • New lives of their own to build and grow into Give them a REAL experience: • So they feel the personality of the store within seconds of entering • That surpasses the pricey boutique alternative shopping destinations • To highlight their eclectic and unique style

In addition to these key insights, TAG created the archetypes of “burden” shoppers and “escape” shoppers to capture the variability of attitudes toward the retail shopping experience. These archetypes, as defined below, also emphasize the importance of the in-store experience. Burden shoppers view shopping as a necessity not an enjoyable activity. They pursue in-store experiences in short bursts and typically search for a specific item and abandon their efforts if the item is not immediately found. Burden shoppers are more inclined to employ online shopping and other digital techniques to decrease the time spent searching for merchandise. Escape shoppers love to shop. They view the retail experience as a getaway and a stress reliever. Similar to the burden shopper, they also appreciate easy in-store navigation. However, they spend longer periods of time perusing shelves and enjoying any extra services offered by a retailer. Escape shoppers research online as well, but frequently browse in-store before completing a purchase. It is important to note that based on individual circumstances, at any given point-in-time, members of the target market can be either a burden or an escape shopper.

SWOT Analysis
TAG’s review of the external environments revealed the following strengths, weaknesses, opportunities and threats for JCP. These conclusions guided the development of TAG’s plan. The creative work was built on current JCP strengths of value/price and exclusive brands, and was designed to impact the weaknesses of style, in-store ambiance and brand ambiguity.

• Value/Price Points • Private & exclusive brands • Sales, coupons, JCP Rewards • Unobtrusive customer assistance • JCP.com online sales

Style quotient In-store ambiance Store layout and navigability Brand ambiguity

• Create in-store/personalized space
for target

• Shopping experience • Style perception and expectations • Brand ownership • In-store or nearby food and
beverage retailers

• More JCP branding in-store and online • Partnerships: an opportunity to
reinforce existing and attract new customers

• Memories, personal connections

A mind map is a visual representation of the complex network of associations that constitutes a consumer’s brand perceptions. TAG used the analysis of mind maps to unearth critical insights that were not readily apparent. During the Fall of 2010 mind maps were constructed, via in-depth interviews, for 365 females 25-34. This data set included JCP and four of its competitors: Macy's, Kohl's, Target and WalMart. These mind maps provided TAG with unique perspectives that influenced TAG's recommendations across all campaign decisions. Summary mind maps were constructed for JCP, Kohl’s, Macy’s and Target. These are presented below and on the next page.

This chapter opens with statements of JCP’s vision and positioning. This is followed by TAG’s overall marketing objective against the 25-34 target of increasing sales by $210 million. Next, a brief discussion of marketing mix strategies is presented. The chapter concludes with a comprehensive statement of TAG’s recommended creative strategy including the single big idea around which all efforts centered.

A Vision for JCP
“Our vision is to be America’s shopping destination for discovering great styles at compelling prices.” Mike Ullman (From 2009 Annual Report)

JCP is positioned as the department store that invites customers to discover a wide-variety of clothing and other merchandise while providing customers with an attractive blend of style and quality at compelling prices.

Marketing IBP/Objectives
The overall marketing objective of TAG’s campaign (February 1, 2012 – January 31, 2013) is to increase JCP’s sales to females 25-34 years old by 11%. This increase will be achieved primarily by stimulating Kohl’s, Macy’s and Target shoppers to shift a portion of their purchases to JCP. In addition, a significant portion will come from increasing purchases made by current JCP shoppers. Building on JCP’s already well established success as an online retail leader, TAG will increase online sales to females 25-34 by $21 million over the course of the campaign. This increase is based on Forrester projections of online growth coupled with TAG’s campaign strategy and focusing Source of Sales Increase % Garnered Sales Increase on the consumer experience, which is (millions) specifically targeted to female customers Kohl’s 25% $52.5 25-34.
Macy’s Target 20% 15% $42.0 $31.5

Note: In terms of dollar sales, based on Reuters estimates, JCP sales to females 25-34 in the preceding period (2.1.11All other 10% $21.0 1.31.12) will be $1,910.43 million. An 11% increase will Current JCP 30% $63.0 expand sales to $2,120.57 million. The $210.1 million increase will be generated by increased sales from current JCP customers, customers of JCP’s top three competitors and other retail stores. Therefore, 70% or $147.07 million of the increase will be garnered from JCP’s competitors. Kohl’s shoppers will contribute 25% or $52.5 million of this total, Macy’s shoppers will contribute 20% or $42.0 million and Target shoppers will contribute 15% or $31.5 million. The additional, 10% or $21.0 million will be garnered from other department stores, stand-alone stores and boutiques. Furthermore, 30% or $63.1 million of the increase will come from expanded spending by current female JCP shoppers aged 25-34.

Rationale for Attracting Customers Away From Kohl’s, Macy’s and Target
TAG’S campaign targeting females 25-34 will capture customers from Kohl’s, Macy’s and Target. The rationale for focusing on these three competitors is explained below. 1. In-depth interviews and mind map analyses indicated that apparel/accessories are the key motivators which dictate store switching behavior among members of this market. 2. The Mango and Aldo lines are a great fit for females 25-34. TAG has concluded that the appeal of these brands is strong enough to motivate competitors’ shoppers to switch to JCP. For example, these women would be strongly attracted to Mango and Aldo versus Kohl’s Lauren Conrad and Simply Vera lines. The same is true with Macy’s Style &Co and BCBG as well as Target’s store brands. 3. Leveraging these JCP brands via TAG’s persuasive creative appeals coupled with innovative and savvy media strategies and other IBP programs will effectively position JCP to pull customers away from these competitors. 4. Based on both the size, as measured by women’s apparel sales volume, and the similarity in consumer profiles between JCP and each of the three competitors: TAG forecasts that the source of JCP’s new business will be 25% from Kohl’s, 20% from Macy’s, 15% from Target, and 10% from all other stores.

TAG recommends no change in JCP’s merchandise mix. By leveraging the recently acquired, exclusive partnerships with Liz Claiborne, Aldo and MNG by Mango, style will be placed at the forefront of JCP’s branding. Supplementing these clothing and shoe partnerships with the Sephora beauty partnership will create an attractive product mix for the target. TAG will also focus on creating a segmented space with clothing specifically for females 25-34.

TAG recommends no change in JCP’s current network of store locations, as it would be inappropriate to recommend such changes as a part of a supplemental campaign focusing exclusively on females 25-34.

TAG recommends continuing to transition JCP from the low price leader to the value leader, while maintaining current price points. TAG’s focus will be making JCP the leader in value rather than price. Currently, Macy’s beats JCP as the “luxury” department store leader, while Kohl’s gains share in the discount department store market. TAG anticipates that Kohl’s will maintain its position as the leader in low price.

TAG recommends an aggressive promotional strategy centered around the emotional bond created between females 24-35 and department stores. This strategy is supported by an innovative blend of media including digital, online and traditional. These are supplemented by enhancing the in-store experience, new partnerships, and community relations all specifically targeted to these women.

Statement of Creative Strategy
TAG’s creative strategy and tagline, “life’s little closet,” is based on research drawn from analysis of perceptions of department stores pulled from consumer mind maps and in depth interviews. First, the underlying strategy is explained in the Creative Origins section, this discussion is followed by coverage of TAG’s Creative Brief.

Creative Origins
Fashion is a Feeling
Our strategy for JCP was borne of human truth: clothes are only clothes until you give them a story. Fashion sense and style is measured by how clothing makes the wearer feel. Worldwide, shopping is a female obsession; for some, a new pair of black heels is more important than paying a phone bill on time. This is not because new clothing is imbued with some kind of fashion magic; it is because clothing brings what a woman feels to the surface. She may not realize her little black heels are magical until three months, an awkward first date and a dinner party have passed, but her clothing is now part of her life story.

The JCP Woman
JCP is a department store that sells great clothing and products at a great price. But the lives lived by the women who pass through the aisles is far more exciting than a new cardigan or a sale-priced toaster oven. This JCP woman is uniquely different from the Macy’s woman; she rides the subway. She has a group of great girlfriends that she’s known for years, and while she may not be married yet, she loves the feeling of being in love. She lives a fun life and only wants it interrupted by advertising if it’s meaningful to her, and meaningful is real and unique.

Back To Reality
This strategy is a shift away from the short-lived, trendy glam of department store branding. Our creative plans involve the use of real women telling their stories in relation to JCP clothing and products in order to encourage a life-long quality relationship with each item and the store itself. Branding efforts under this strategy take a holistic and forward-thinking approach in appealing to the consumer through nontraditional ad placements and emphasis on social media and web technology. This new vision for JCP will extend to the in-store experience, from the labeling of departments to store organization and displays.

More Than A Name
From here on out, JCP is no longer a seller of clothing and goods, but a player in a million life stories. This book you are reading right now is a small sample of this strategy: the stripping-down of the superficial and the return to the perspective of the consumer. Stories are much more interesting, personal is much more meaningful, and brands should be more than a name.

Identifying the target market: Who are we talking to?

• Females, ages 25 – 34 • JCP customers and females 25-34 who are loyal Kohl’s, Macy’s, and Target customers.

Where these women may be:

• Just out of college, single, entry-level • New career, new boyfriend, new chapter • Just married, moving, looking forward • Better job, better home • Settling down, pregnant • Child, focusing on what’s important

Maturity Fault-lines
The target is a diverse audience separated by important life events – careers, marriage, children – that distinguish not only their ages, but their maturity. As a woman progresses through these nine years, important markers like these dictate the tone of her life. Three examples of the groups that makeup this demographic cohort are described below.

Fresh-faced practical pros (25 – 27)
New graduates, they’re looking to get their professional lives on track before they settle down with a boyfriend and think about family. They value their individuality and want to express it through what they wear. They look for value in what they buy for their wardrobe and home.

Newly married go-getters (28 – 30)
These women have settled down with a significant other without compromising their professional ambition. They are focused on their careers and have less time to indulge in personal desires. They may be planning for children, but they’re most concerned about spending time with their significant other and enjoying the little moments they have away from work.

Fashion-conscious new moms (31 – 34)
These women have recently had children and are more concerned with being good mothers. However, they have not lost a sense of individuality and want to look fashionable as they work out to get their figure back. Just because they’ve had children doesn’t mean they need to wear Mom Jeans. Note that not all females 25-34 will move along this timeline at the same pace. While recognizing these women’s diversity of lifestyle and AIO’s, TAG’s strategy will focus on the appeals that span and resonate with the majority of all such subgroups.

Creative Brief
What are we trying to accomplish?
To further establish JCP as a brand that celebrates the customer experience through surprising clothing style, compelling prices and an intimate connection with its consumers. (TAG will focus primarily on clothing because research revealed that it is the strongest motivator of the target in selecting a shopping destination.)

What do we want the target to feel about the JCP brand?
We want the target to feel a close, personal trust with the JCP brand that is fostered by its continued efforts to celebrate them in their everyday lives.

What is the Single Big Idea?
JCP understands that the strength of a relationship with the consumer relies not only on the merchandise sold, but on the stories created by the customer, based on their experience with that merchandise.

What is the ammunition that supports the Big Idea?
Stories reflect ownership. Analysis of TAG’s depth interviews and mind map research uncovered that emotional bonding with a retailer is based primarily on the stories created by the consumers themselves. Stories create the strongest emotional bond with a store.

What is the tone and personality to be conveyed?
The right voice is personal, empowering, real and contemporary.

Creative Mandatory
1) Must use JCP.com in all messaging 2) Must use the JCP logo in all messaging

“I realized that I could wear certain things that kind of express my personality and maybe start up a conversation. For me, it became more of an art and expression of my personality. I don’t necessarily need somebody to flap a mannequin in front of me and tell me what to wear because it has nothing to do with me.” - Britney Murray-Jackson, Age 25

This chapter reveals TAG’ s media and creative executions simultaneously. Jointly presenting media and creative elements illustrates TAG’s integration of concepts across platforms. After addressing media and creative, TAG’s recommendations for enhancing JCP customers’ digital and in-store experience, partnerships and community relations are presented. The chapter concludes with a flowchart that visually displays TAG’s media plan.

Media Strategy
Through primary and secondary research, TAG developed four important media objectives: engagement, buzz, cohesion and utility. TAG’s recommended media tactics focus on achieving these objectives. The media plan described below will reach the females 25-34 where they already are through multiple touch points. To yield a cohesive, multi-platform campaign, TAG’s media efforts will provide females 25-34 with more ways to interact, become engaged and fall in love with JCP. The primary purpose of TAG’s media recommendations is to increase market share and shopping frequency among females 25-34. Secondary purposes include acquiring new customers and retaining current JCP shoppers ages 25-34. JCP has a long and successful history of utilizing a digital platform. To continue this forward-thinking approach, TAG’s plan emphasizes digital media tactics and utilizing mobile platforms. TAG constructed a holistic media plan that reaches females 25-34 at multiple touch points. Through extensive primary and secondary research, such as Nielsen AdViews, TAG examined retailers’ media spending from 2007-2010. Using these and other data, TAG built a media plan that highlights the creative strategy in an efficient and effective manner. Note that after careful consideration, TAG has elected not to suggest recommendations for changes to JCP’s Search Engine Optimitization or Search Engine Marketing tactics. The proposed satellite campaign targeting females 25-34 will operate under the umbrella of JCP’s current efforts in this domain.

Media Objectives & Creative Executions
TAG’s four media objectives along with selected creative executions within the “life’s little closet” campaign are described in the sections below. Note that a complete media breakdown, detailed in four tables, is presented on page 30.

Engaging the consumer will deepen relationships and create brand loyalty.

Social Media-Facebook
Fact: Forty-five percent of JCP’s target use social media at least once a day; forty-six percent of Internet users are influenced by online reviews when making purchases. 1 Idea: JCP will sponsor an online “Story Telling Contest” via the existing JCP Facebook page. Initially, 25,000 women 25-34 who are friends of JCP will be invited to participate in the contest. The first 500 of these women to “like” the contest will receive a featured article of clothing from the JCP store. These women will be asked to upload a photograph or video accompanied by a short story (300 words or less) describing her experience with the item of clothing. The uploaded photo/video will become the participating women’s profile picture with a JCP “Vote for Me” link, engaging her friends and family to vote for her, while spreading this contest throughout her friends’ news feeds. The entrant with the most votes at the end of the month long contest will be featured as the JCP Facebook profile picture for one week. Outcome: Five hundred members of the target audience will be directly engaged by the campaign. More importantly, a larger pool of their friends, many of whom are in the target, will be routed to the JCP website. These stories will influence other women to make purchases and establish a relationship with JCP. Success Measure: The success of this contest will be measured by the number of people who become new fans, click-throughs to the Facebook fan page or JCP.com and total number of people who voted.
1. JCP Case Study; http://www.marketingprofs.com/charts/2010/3419/facebook-mobile-tops-100-million-users

Shazam and JCP
Fact: With a hundred million users and over one billion songs identified and approximately 250,000+ purchases a day; Shazam is one of the most popular and increasingly adopted free applications for smart phones. 2 Idea: Beyond just music, Shazam has the ability to capture dialog and attach it to content. JCP can reach its tech-savvy females 25-34 by utilizing this technology and communicating with the target while they watch TV. First, JCP can sponsor the fashion featured on their favorite TV show. Second, while viewers are watching the show, JCP will feature pop-up content along the bottom of the screen asking viewers to Shazam the show to access exclusive JCP content or even unseen clips/footage.

Outcome: JCP can link consumers via their mobile device to their JCP WAP site or directly to the outfits seen on the show. Furthermore, this presents possible partnership opportunities with shows like “The Bachelor” and “The Bachelorette,” a show popular among our target audience. This application engages consumers by providing added value to their media usage and enables JCP to connect and sell merchandise to the target through their mobile devices. Success Measure: TAG will evaluate the success of this promotional effort by monitoring how many viewers “Shazam” the featured content, connect to the WAP site and view/purchase the clothing featured on the show.
2. http://thenextweb.com/mobile/2011/01/14/shazam-currently-boasts-30-million-total-ios-and-android-users/

Fact: Based on Nielsen AdViews, females 25-34 are heavy TV viewers and index high for particular networks. Also, JCP and key competitors are heavy television advertisers. 3 Idea: TAG suggests running thirty second spots on broadcast and cable networks throughout the campaign period. Also, TAG recommends implementing additional spots during peak shopping seasons such as the winter holidays and back to school months. Broadcast networks provide effective coverage of females 25-34 and cable networks attract highly targetable, diverse and passionate viewers. Broadcast networks like ABC, NBC and Fox all indexed high in terms of viewership among females 25-34. Cable networks like Style, E!, WEtv, Bravo, Oxygen and ABC Family also indexed high among our target. In order to strategically reach the target, JCP commercials will air on these nine networks. A TV spot is described in storyboard format on the following two pages. See the table on page 30 for a breakdown of specific television buys, costs and impressions. Outcome: Females 25-34 will be exposed to targeted commercials that will be fun, engaging and relevant. These commercials will enable JCP to emotionally connection with the target by showcasing stories of real JCP women. Success Measure: To measure success, TAG will monitor Nielsen reports to obtain the number of impressions among females 25-34.
3. Nielsen AdViews; MRI; http://tvbythenumbers.zap2it.com/2010/08/03/the-bachelorette-finale-leads-abc-to-

TV Spot: This 30-second TV spot aims to give the viewer a peek into “life’s little closet”. The visuals remove the frame of the closet from the usual placement in a bedroom to the places where fashion becomes a feeling.

1. Scene 1 opens to woman in an open air environment opening up a closet door and choosing a red JCP sweater. SFX: Silence until woman picks sweater off rack, which signals a symphony of soft environmental noises and song “How Sweet It Is” begins by Michael Bublé.

3. Scene 2 opens to close-up of different woman in a vibrant seaside environment. Woman puts on the same red sweater as the woman in scene 1. SFX: Soundtrack continues; sound of a distant bell ringing.

5. Scene 3 opens with wide shot of a third woman walking into a subway train through sliding doors. Shot cuts to close up of her walking across the main hall of the car as the second set of subway train doors open to reveal another closet with the same red sweater.

2. Long shot reveals the closet is simply a standalone door and rack in a sunny field. Woman walks over to bike and rides off. SFX: Soundtrack continues.

4. Long shot of woman hopping gleefully into a boat in a harbor wearing sweater. Closet is standalone on pier. SFX: Laughing, sounds of rocking boats and seagulls; soundtrack continues.

6. Close up of original subway train doors opening to reveal third woman transformed by sweater. As she walks out of the car, scene cuts to level camera angle shot of the front of her red sweater as she leaves the platform into the light of day. JCP.com logo appears centered, overlayed on moving image, with tagline, “life’s little closet.” Scene ends.


Buzz: Capturing the target’s attention in an exciting and unexpected manner

Bus Stop Shelter Takeover
Fact: Bus shelters in high foot traffic locations in the top ten markets have the potential to generate significant buzz. Bus ridership in these markets is substantial. 4 Idea: To generate buzz around the JCP brand, five bus stop shelters in each of the top ten markets will be transformed into interactive closets. The interactive closets will contain JCP outfits that women can sort through, plus mirrors to check their hair and make-up. The closet will consist of three horizontally scrolling bars, each one devoted to either tops, bottoms or shoes. For example, the consumer could pick a blouse and see how it fits with different pairs of pants or various skirts. If she finds an outfit she likes, the consumer will have the option to printout the outfit immediately or send it via her mobile device to save for a later purchase. The printout will include a coupon as an incentive to shop at JCP. Outcome: This event will generate buzz among females 25-34 in the top ten markets. Additional buzz will be stimulated by word-of-mouth and unpaid media coverage. Success Measure: To measure success, TAG will monitor how many women printout selected outfits and how many redeem their coupons in a JCP store. Viral and press exposure surrounding the takeovers will also be measured.


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4. http://www.apta.com/resources/statistics/Documents/FactBook/APTA_2010_Fact_Book.pdf

Fact: JCP’s target audience are high users of online streaming video, social media sites and 39% regularly access the internet from their mobile phone. 5 Idea: TAG recommends utilizing display ads, rich media and video pre-roll on websites relevant to females 25-34. Rich media and pre-roll ads have a higher rate of engagement among web users and therefore are emphasized in the plan. Since 27% of all Facebook users are females 25-34, TAG recommends reaching these consumers via the Facebook display network. Facebook allows JCP to target its consumers using attitudinal information. Since a large percentage of the target accesses TV shows and video online, TAG recommends reaching the target on sites like Hulu.com and YouTube. com. Based on television research, TAG knows that the target is heavy viewers of shows on ABC, FOX and NBC. Therefore,TAG recommends advertising on these three networks websites. See the table on page 30 for a breakdown of specific online buys, costs and impressions. Outcome: These advertisements will not only increase JCP’s brand awareness, but also drive customers to the JCP website and connect users to other online media efforts. Success Measure: All online efforts will be measured in terms of impressions and conversions. Success will be measured by monitoring click-stream data showing the number of users who clickthrough to the JCP landing page and the number who completed a purchase.
5. JCP Case Study; Good AdPlanner; Quantcast

Cohesion will leverage the impact of offline, online, mobile and non-traditional media.

People Magazine, StyleWatch
Fact: Through primary research, TAG found that females 25-34 enjoy seeing clothing displayed or worn by models and celebrities to generate new ideas about how they might wear the clothes themselves. 6 Idea: TAG believes that JCP’s current involvement with StyleWatch, which is popular with females 25-34, should be extended. TAG recommends JCP be the sole sponsor of an entire issue of StyleWatch. “Owning” an entire issue will increase the brand’s reputation and have a significant impact among the target. This JCP issue will feature JCP ads and style tips. To connect this sponsorship to the in-store experience, TAG recommends that JCP place StyleWatch signs throughout the store and create a space in the store with a grouping of all JCP clothes featured in the magazine. Also, QR codes on print ads in StyleWatch will be used to take the consumer directly to the online store. Outcome: The shock value of a magazine takeover will generate buzz and increase JCP brand exposure. The JCP takeover and strategic placement of QR codes will allow readers to directly connect with JCP apparel and accessories featured in the magazine. Success Measure: The success of this takeover will be measured by readership of the JCP issue and QR linked purchases of JCP featured merchandise.
6. SRDS; Primary Research, Mind Map Database

Bus Stop Shelter (page opposite): The JCP Woman is always on the move. This interactive bus stop shelter gives her the freedom to style herself in an unexpected location.

Fact: Females 25-34 are heavy readers of magazines. 7 Idea: TAG recommends purchasing full page ads in magazines such as baby, bridal, parenthood, fashion, lifestyle, epicurean and health because they index high among our target audience.TAG has included QR codes on selected ad placements to take readers from a traditional experience to a digital one. Readers can access JCP content sites and make a purchase. These ad placements will showcase the lives and real stories of JCP women. See the table on page 30 for a breakdown of specific magazine buys, costs and impressions. Outcome: By selecting high circulation magazines that index high with females 25-34, awareness of JPC will be expanded. QR codes will create a revenue channel and also provide analytics for later use in optimization and planning. This effort will result in creating cohesion between online and offline efforts. Success Measure: The number of readers who use the QR code to access the JCP website and the number who make an online purchase will be used to measure success.
7. SRDS; JCP Case Study

Utility will make it easier and more effective for females 25-34 to shop JCP.

JCP Mobile App
Fact: Fifty-three percent of females 25-34 who are JCP customers have a smart phone and this demographic has a significantly higher penetration of smart phones than the general population. Nielsen forecasts that 50% of all cell phones will be smart phones by the end of 2011. 8 Idea: TAG’s recommends that a new feature be added to JCP’s current app. The addition to the JCP app would allow females 25-34 to create their own palette of colors, patterns and fabrics using their smart phones. Using image recognition software, the app will take the colors, patterns and fabrics the user photographs and create suggested JCP apparel and accessories combinations that reflect her palette. For example, a woman takes a photo of a sunflower in her garden. The add-on to the JCP app Print Ad: Every woman has a story. Traditional print executions are designed to focus on not the clothes themselves, but the emotional ties created while wearing JCP clothes. Each print is punctuated with the tagline, “life’s little closet.”

will pull merchandise inspired by the color of the sunflower, such as a canarycolored bracelet, a mustard-colored sun-dress and complimentary colored beige sandals. Outcome: The overall goal of the app is to inspire females 25-34 by allowing them to create combinations of apparel and accessories based on their own preferences. The app’s unique experience is buzz-worthy and will provide the target with a source of entertainment and engagement with the JCP brand. Success Measure: The success of this app will be measured by how many females 25-34 use the app and by their purchases that can be linked to the use of the app.
8. JCP case study; http://twittown.com/mobile/mobile-blog/usa-add-80-million-new-smartphone-users-201

Online Groupon Coupons
Fact: Seventy-seven percent of Groupon’s users are women and 68% are between the ages of 18-34. Therefore, a high proportion of the targeted females 25-34 are Groupon users. 10 Idea: TAG recommends incorporating online coupon promotions into JCP’s media plan using Groupon. These coupons can be targeted precisely to females 25-34 and attract new customers from within the target to JCP. The use of these coupons can be shared with friends on Facebook and Twitter adding a viral component to this promotion. In addition, social networking is built into the Groupon model. Groupon users earn points by encouraging others to participate. JCP’s use of Groupon would preempt key competitors Macy’s, Kohl’s and Target. Outcome: By tapping into coupon marketing and social networking, JCP can attract new customers and provide females 25-34 with a convenient way to shop and save money. Success Measure: The success of this promotion will be evaluated by the number of coupons purchased. In addition to tracking the number of coupons sold, JCP will also have data on how many females 25-34 that received and opened the JCP Groupon email.
10. www.grouponworks.com/why-groupon/demographics

Online Pandora Initiative
Fact: Eighty million Pandora users streamed 3.9 billion hours of music in the past fiscal year. 9 Idea: TAG recommends creating a page takeover on Pandora to showcase the variety of JCP styles. After logging on to Pandora, only female listeners 25-34 will immediately be prompted with five different JCP outfits from which to choose. With each new log-in, the targeted listener will be presented with a randomly generated new set of five outfits. Based on the style of the chosen outfit, Pandora suggests a playlist that Mobile App (above right): Inspiration can be found in any of life’s moments. The addition to the existing JCP Mobile app will allow the user to capture the things that inspire their look. The app then recommends apparel and accessories that parallel styles for each woman’s source of inspiration.

aligns with the style preference selected. This type of Pandora takeover has not been used by a retailer. Hence, JCP would preempt Kohl’s, Macy’s and Target. Outcome: Using Pandora to create a personalized radio station will set JCP apart from its competitors and deepen relationships with females 25-34. Success Measure: The success of this promotion with Pandora will be measured by the number of unique listeners who interact with the JCP station and by the number of listeners who click through to the JCP website.
9. JCP Case Study; Pandora Whitepaper

Pandora Takeover (above): The JCP woman is an avid music listener. With this Pandora takeover, JCP can provide a station for each woman’s style.


Fact: Females 25-34 index high on multiple traditional radio formats and even higher for streaming radio and MP3s. 11 Idea: TAG recommends thirty second spots airing strategically throughout the campaign. These spots will reach listeners in their cars during peak listening times, like morning and evening rush hours. This medium will serve as yet another way to reach potential consumers and build relationships between JCP and listeners. See the table on page 30 for a breakdown of specific radio buys, costs and impressions. Outcome: Increase in brand awareness of JCP by reinforcing the frequency of the overall message. Success Measure: The success of radio delivery will be measured using Arbitron ratings.
11. JCP Case Study; http://costofradioadvertising.com

In-Store (page opposite): Creating an environment to nuture the relationships between the JCP Woman and the store is a critical element in TAG’s plan. In store signage will reflect a personal and yet whimsical look consistent with the entire campaign.

In-Store Recommendations
TAG recommends clarifying and expanding clever signage, the creative use of mannequins and other aesthetically appealing visual cues to increase ease of navigation within the store for females 25-34. These recommendations are intended to enhance the shopping experience and leave the targeted customers feeling more special and valued. As discussed under TAG’s primary research, two archetypes were identified: “burden” and “escape” shoppers. Both burden and escape shoppers have similar, and clearly defined, expectations in a retail environment. Because they are often looking for a specific item in a short amount of time, burden shoppers desire organization and ease while searching for merchandise. In addition, burden shoppers rely heavily on visual cues such as mannequins and displays for fashion inspiration. They also look for clearly legible signs for navigation and seek customer service only when needed. Similarly, escape shoppers seek this same type of environment, but for different reasons. For the escape shopper, shopping is also a time to relax and self-indulge. To satisfy both shopping types, TAG recommends JCP display all apparel merchandise for the target with better organization and clearer differentiation between styles, designers and age-appropriate categories. To accomplish this, TAG recommends updated signage, mannequins and visual cues to appeal to the target’s contemporary aesthetic. Further, TAG suggests using lighting and the addition of more mirrors to create a more pleasant ambiance. Finally, merchandise featured on mannequins should be available within close proximity to each display.


en Sh



Escape Shopp


TAG recommends three new JCP partnerships. TAG’s suggested partnerships will improve the current targeted shoppers’ perception of JCP and attract new potential customers by increasing JCP’s fashion perception and expanding overall awareness. In-Store Café’s – Seattle’s Best Coffee
Sipping on a latte while searching for the perfect little black dress and laughing with girlfriends are the small details that can turn a day of simply shopping into a day of memories. It’s a story that practically writes itself and research supports this insight. Based on primary and secondary research, it is clear that providing the target with an easy refreshment option would enhance their overall shopping experience. This is especially true in JCP’s 316 standalone stores. To address this opportunity TAG recommends a partnership with Seattle’s Best Coffee (SBC). As stressed in a recent article in QSR, a top industry trade publication, SBC has been steadily growing, gaining new distribution points and attracting an increasing customer base since 2009.1 SBC’s business strategy and the quality of its products make it a great potential partner for JCP. A partnership with JCP would also help SBC reach its distribution goals, making the partnership a mutually beneficial relationship. TAG has received a favorable response from Christine King, Marketing Manager at SBC, to establishing such a partnership.2 Upon successful completion of a three-month test in three markets, TAG recommends rolling out 1,000 square-foot SBC café stores inside JCP 316 stand-alone stores.

Entertainment Partnership – Carrie Underwood
Current JCP customers favor inspirational and Christian music while females 25-34 prefer Pop and Top 40 hits. Carrie Underwood appeals to both markets with her single “Jesus Take the Wheel” peaking at No. 4 on Billboard Christian Songs and “Before He Cheats” peaking at No. 8 on the Billboard Top 100.3 Carrie Underwood, 27, has modern style, a warm small-town charm and the inspirational story of achieving stardom after winning American Idol. Carrie Underwood has the ability to connect with and inspire women by partnering with JCP while on tour and while participating in JCP philanthropy events. Carrie Underwood will be used to promote and encourage the success of JCP’s philanthropic partners.4 Most significantly, this partnership will include selling Carrie Underwood’s CD’s at the checkout counters and money earned from CD sales will be directly distributed to the four primary philanthropic organizations supported by JCP. In addition to supporting JCP philanthropy efforts, a partnership with Carrie Underwood will create a positive association between the artist’s fans and JCP. Utilizing JCP/MNG mobile pop-up stores outside of Carrie Underwood concerts during the campaign, fans will create a positive connection with both the artist and the MNG line. Pairing Carrie Underwood, a young, stylish and relatable celebrity, with the fast- fashion trends of MNG will further promote the trending styles of JCP and improve the store’s overall fashion perception.
1 2 3 4

QSR Magazine Online; accessed March 9, 2011: SBC data; http://www.qsrmagazine.com/news/seattle-s-best- takes-skies Telephone conversation with Christine King, SBC, March 9, 2011; Confirmation email, March 11, 2011 Data, MRI Spring 2010; February 23, 2011 TAG’s negotiations with Jessica Schmidt, Carrie Underwood’s agent, are ongoing and favorable. However, endorsement of TAG’s proposed partnership was pending at plans book press time.

Glamour.com/Young & Posh Blogger Network
Glamour.com brings fashion to life with its new, chic blogger network, Young & Posh (Y&P). Y&P’s network launched in February 2011 and encompasses eighteen different style gurus from around the globe including Milan, Paris, The Netherlands, London, New York City, Dallas and Los Angeles. Eric Wilson of The New York Times stresses that fashion blogs have made remarkable strides in gaining both readership and higher profiles.4 By becoming a part of Y&P’s growing network, JCP will become an integral part of honest conversations that appeal to the style of everyday women. Glamour.com receives three million impressions per month and is expanding overall readership by promoting the Y&P network.5 Thus, this partnership will increase JCP awareness among the rapidly growing segment of the target that actively engages with fashion websites and blogs. JCP clothes and style tips will be incorporated into a different blog each month. Bloggers will wear and style JCP clothes on their personal pages that will correspond to potential in-store appearances. TAG has received a favorable response from Jenny Bowman, Creative Services Director at Glamour, concerning exploring the possibility of this partnership.6 We recommend this partnership be implemented throughout the campaign.

No New Apparel Partnerships
JCP’s partnerships with Mango, Aldo and Liz Claiborne 7 positions JCP on the edge of fast-fashion trends and strengthens its overall fashion perception. Adding other apparel lines would clutter and detract from these three signature brands. Utilizing MNG as an anchor brand will draw our target audience into the unique store-in-store experience. Furthermore, the addition of the Call It Spring line by Aldo allows JCP to offer our target consumer the spectrum of items she most often purchases for herself. The immense selection of footwear and handbags offered by Call It Spring, along with the apparel choices offered by MNG and Liz Claiborne, will substantially enhance the value perception of JCP in the minds of targeted shoppers. TAG’s mind map primary research indicates that women in our target do not take an interest in celebrity clothing lines, and so, adding another new line to JCP would be unnecessary, confusing and ineffective. Further, the target is not swayed by clothing lines designed by high-end fashion designers. Females 25-34 do not place as much emphasis on brand name as they do on value perception and quality. Therefore, TAG does not recommend a new apparel partnership; rather, we suggest emphasizing the recently obtained partnerships that have vast potential to step-up JCP’s overall style and value perception.

5 6 7

Wilson, Eric. “Bloggers Crash Fashion’s Front Row.” The New York Times. 24 Dec. 2009. Web. 08 Mar. 2011. <http://www.nytimes. com/2009/12/27/fashion/27BLOGGERS.html>. Email conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011. Conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011. Liz Claiborne helped lift JCP profit 36% in fourth-quarter 2011; MNG soon to follow: D’Innocenzio, Anne. “Liz Claiborne Helps Lift J.C. Penney Profit 36% - USATODAY.com.” USA Today. 25 Feb. 2011. Web. 15 Mar. 2011. <http://www.usatoday.com/money/companies/ earnings/2011-02-25-jcpenney_N.htm>.

Community Relations
TAG’s community relations objective is to increase the target’s awareness of JCP’s role in aiding its four primary philanthropies: Boys & Girls Clubs of America, YMCA of the USA, National 4-H and FIRST. To accomplish this, TAG proposes three recommendations, which are described below.

Personalizing Local Charitable Donations
TAG recommends that JCP make it easier for shoppers to visualize the impact of JCP’s donations to its four primary charities. This will be accomplished by expressing JCP’s donations at the local community level and in human terms. This will help to give the target audience a more concrete idea of how powerful JCP’s donations are at their community level. Rather than stating that JCP donated $4.7 million to after school programs in 2009, TAG recommends expressing the appropriate amount in terms of its impact on each local community. For example, “the Round-Up efforts provided x,000 children in Austin, Texas with a safe, educationally rich after school program in 2009.” Such points would be communicated using in-store signage or via JCP.com.

Boston College Center for Corporate Citizenship (BCCCC)
TAG recommends that JCP enter BCCCC’s Film Festival highlighting corporate engagement in local communities. This will allow JCP to promote its efforts to better communities across the nation. The BCCCC program has widespread coverage with links to the films accessible through Facebook and Twitter. Past participants include FedEx, PriceWaterhouseCoopers, Coca-Cola, Microsoft, AT&T and AllState.

Athletic Gear Donations
Because JCP focuses heavily on supporting the YMCA and the Boys & Girls Clubs, this creates a unique opportunity for JCP to emphasize in-kind donations of athletic gear during the 2010 Summer Olympics. TAG recommends JCP make in-kind donations supporting summer athletic programs operated by the YMCA and the Boys & Girls Clubs. This activity will be communicated to targeted shoppers through in-store signage and via JCP.com.

“I deserve high quality, without the high quality price, unlike Macy’s.” - Lauren Timm, Age 26

As described in presenting the media alternatives, TAG recommends the use of conversion metrics and end-goals to track the success of the campaign. Specifically,TAG will measure in-store and online traffic and sales, online behavior, social media audiences, email memberships, and attitudinal measures of the campaign’s effects. Attitudinal data on the campaign’s effectiveness will be collected before, during and after the completion of the campaign. These data will be gathered and analyzed by a professional research firm, this effort is budgeted at $350,000. In order to build the strongest and most successful campaign, TAG’s media team has incorporated testing, measuring, optimizing, and repeating. Continuously monitoring and adjusting the media plan will help to optimize the plan’s impact and maximize JCP’s return on ad spend. Note that advertising and other IBP programs have a cumulative and delayed or carryover effect for retail stores, and the full impact of the creative and media exposures will extend beyond the campaign’s one-year life. The benefits of this carry-over effect will not be measured.





1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Television Print Radio Online Mobile Outdoor Social Media Sponsorship Contingency :30 spots Bachelor/Bachelorette Sponsorship National Magazine People StyleWatch Takeover Pandora Page Takeover Pandora Radio Spots :30 spots (traditional) Display JCP App Shazam Bus Stop Shelter Takeovers Facebook, Twitter Blog - Young and Posh Social Couponing - Groupon Carrie Underwood Sponsorship

Cost Television Print :30 spots Bachelor/Bachelorette Sponsorship National Magazine People StyleWatch Takeover Pandora Page Takeover Radio Online Mobile Outdoor Social Media Sponsorship Contingency Total Pandora Radio Spots :30 spots (traditional) Display JCP App Shazam Bus Stop Shelter Takeovers Facebook, Twitter Blog - Young and Posh Social Couponing - Groupon Carrie Underwood Sponsorship $49,825,000 $4,500,000 $17,449,652 $2,000,000 $2,000,000 $2,200,000 $2,602,720 $6,559,500 $0 $2,000,000 $4,500,000 $0 $0 $2,000,000 $500,000 $3,863,128 $100,000,000

% of Budget 50% 5% 17% 2% 2% 2% 3% 7% 0% 2% 5% 0% 0% 2% <1% 4%

TRPs/IMPs 8,089,800,000 11,500,000 200,193,927 3,750,548 100,000,000 550,000,000 282,380,800 101,000,000 76,000 4,000,000 2,250,000 1,604,000 684,000 450,000 10,000,000 9,357,689,275

1. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf 2. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf 3. SRDS Consumer Magazine Consumption 2010 4. In a New Yorker First, Target to be Sole Advertiser, http://www.nytimes.com/2005/08/12/business/media/12adco.html 5. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mmand-do-125mm-in-2010/ 6. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mmand-do-125mm-in-2010/ 7. Average Radio Cost by Market, http://costofradioadvertising.com/ 8. Digital Media Pricing Models by Pricing Method, http://cfpnyc.com/digital-media-advertising-models-by-pricing-method.html#more-174 9. Clear Channel Outdoor Assets, http://www.clearchanneloutdoor.com/assets/downloads/media-planning-guide/2010-11-eyeson-rates.pdf









1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1

2 3 4 1 2 3 4

<1% 2%


Budget Appropriations by Medium



Television Print Radio Online Mobile

Outdoor Social Media Events Contingency


5% 53%


Online Television
Monthly Reach CPM 0.75 0.75 0.75 0.75 0.75 0.75 0.75 $11,250.00 $7,500.00 $6,000.00 $3,000.00 $750.00 $562.50 $562.50 $29,625.00 $355,500.00 Cost 18,000,000 160,000 150,000 150,000 3,300 2,700 2,000 15,000,000 10,000,000 8,000,000 4,000,000 1,000,000 750,000 750,000 Network (Index) ABC NBC FOX Style (209) E! (174) WE tv (167) Bravo (150) Oxygen (148) ABC Family (137) Total Cost Per Spot $150,000 $130,000 $135,000 $45,000 $80,000 $45,000 $75,000 $55,000 $75,000 Average Imps 4,000,000 1,500,000 4,500,000 50,000 1,200,000 400,000 900,000 500,000 433,000 13,483,000 Purchased Imps Website Display Facebook Blogspot msn.com ebay.com diaperswappers.com mycharmingkids.net favoriteideas.com Monthly Total Yearly Total Rich Media youtube.com weather.com netflix.com Amazon Monthly Total Yearly Total 240,000 100,000 84,000 240,000 Baby Bridal Parenthood Fashion Lifestyle Epicurean Health Total 10,000,000 7,000,000 5,000,000 2,500,000 6.00 6.00 6.00 6.00 $60,000.00 $42,000.00 $30,000.00 $15,000.00 $147,000.00 $1,764,000.00 Category Pre-roll Hulu.com ABC.com NBC.com Fox.com Monthly Total Yearly Total Complete Total 3,400,000 466,900 1,300,000 29,043 15,000,000 10,000,000 7,000,000 5,000,000 10 10 10 10 101,000,000 $150,000.00 $100,000.00 $70,000.00 $50,000.00 $370,000.00 $4,440,000.00 $6,559,500.00

Frequency 50 50 45 50 75 65 100 65 100 600

Total Imps 200,000,000 75,000,000 202,500,000 2,500,000 90,000,000 26,000,000 90,000,000 32,500,000 43,300,000 8,089,800,000

Total Cost $7,500,000 $6,500,000 $6,075,000 $2,250,000 $6,000,000 $2,925,000 $7,500,000 $3,575,000 $7,500,000 $49,825,000

Magazine American Baby Modern Bride Parenting Family Circle Elle Redbook People whole issue Cooking Light Health Circulation Total Impressions 2,002,940 331,049 2,176,843 3,953,651 1,060,634 2,350,000 3,750,548 1,716,636 1,356,227 24,035,280 1,986,294 23,945,273 47,443,812 12,727,608 28,200,000 45,006,576 10,299,816 10,299,816 203,944,475
*All circulations and pricing was gathered from the 2010 SRDS Magazine Consumption book.

Full Page 4C Price/Issue $450,000 $62,532 $136,020 $220,000 $116,145 $103,400 $241,975


Total Cost

$94,600 $89,000

Monthly Bi-Monthly 11x a year Monthly Monthly Monthly Monthly Whole mag Bi-Monthly Bi-Monthly

$5,400,000 $375,192 $1,496,220 $2,640,000 $1,393,740 $1,240,800 $2,903,700 $2,000,000 $567,600 $534,000 $17,449,652

Pandora Page Takeover Audio Spot Total Terrestrial Markets
New York Los Angeles Chicago Houston Phoenix Philadelphia Dallas Total

Cost (CPM) $20 $4

Impressions 100,000,000 550,000,000 650,000,000
Spots/Week 50 50 50 40 40 35 35 300 Cost /Week $70,250 $44,950 $18,100 $10,560 $6,720 $3,080 $7,280

Total Cost $2,000,000 $2,200,000 $4,200,000
Frequency (Weeks) 16 16 16 20 20 12 12

Total Costs


Total Imps

$1,124,000 $719,200 $289,600 $211,200 $134,400 $36,960 $87,360 $2,602,720

5,197,300 4,027,200 1,868,000 2,152,700 1,155,600 1,471,300 1,756,600

83,156,800 64,435,200 29,888,000 43,054,000 23,112,000 17,655,600 21,079,200 282,380,800

*Rates and imps are averaged for the top performing stations in each market. Arbitron, http://www.arbitron.com/home/mm001050.asp. Rates for Radio-info. com/markets

“2010 Public Transportation Fact Book.” American Public Transportation Association. Accessed February 17, 2011. Last modified April 1, 2010. http://www.apta.com/resources/statistics/Documents/FactBook/AP TA_2010_Fact_Book.pdf. Barkley Evergreen & Partners, Inc, & Chabria, A. (2005, October 24). Cause Survey 2005. PR Week, 17-25. Retrieved from http://www.barkleyus. com/ who_we_are/press_clips/show/32-prweek_barkley_cause_survey_2005. Department Store Retailing. (2010, August). Mintel International Group Ltd. Enright, Allison. “Top 500 - J.C. Penney Taps Chief Information Officer to Oversee E-commerce - Internet Retailer.” Industry Strategies for Online Merchants - Internet Retailer. 3 Aug. 2010. Web. 27 Mar. 2011. <http:// www.internetretailer.com/2010/08/03/jc-penney-taps-chief-information-officer-oversee-e-commerce>. “Facebook Mobile Tops 100 Million Users.” Marketing Profs. Accessed March 16, 2011. Last modified February 17, 2010. http://www.marketingprofs.com/charts/2010/3419/facebook-mobile-tops-100-millionusers. “Jcpenney – Quarterly Newsletter – Brand Facts – Monthly Sales.” jcpenney - Investor Relations - Investors. JC Penney, n.d. Web. 1 Feb. 2011. <http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-faq>. JCPenney Corporate Social Responisbility Report 2009. (2010, April). Retrieved from http://www.jcpenney.net/shared/content/CSR/csr_2009/ index.html “J. C. Penney Company, Inc. Reports Solid Fourth Quarter and Full Year Financial Results Exceeding Sales and Earnings Expectations.” JCPenney - JCPenney Home. Web. 27 Mar. 2011. <http://www.jcpenney.net/ about/jcpmedia/corporatenews/articles/J_C_Penney_Company_Inc_ Reports_Solid_Fourth_Quarter_and_Full_Yea,188.aspx>. “JC Penney Co Inc (JCP.N) Financials | Reuters.com.” Business & Financial News, Breaking US & International News | Reuters.com. Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ financialHighlights?symbol=JCP.N>. “Kohls Corp (KSS.N) Financials | Reuters.com.” Business & Financial News, Breaking US & International News | Reuters.com. Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ financialHighlights?symbol=KSS.N>. “Liz Claiborne Helps Lift J.C. Penney Profit 36% - USATODAY.com.”

USA Today. 25 Feb. 2011. Web. 15 Mar. 2011. <http://www.usatoday.com/ money/companies/earnings/2011-02-25-jcpenney_N.htm>. “Macy S Inc (M.N) Financials | Reuters.com.” Business & Financial News, Breaking US & International News | Reuters.com. Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/financialHighlights?symbol=M. N>. Oches, Sam. “Seattle’s Best Takes to the Skies.” Quick-Service and Fast Casual Restaurant News and Information - QSR Magazine. 10 Feb. 2011. Web. 9 Mar. 2011. <http://www.qsrmagazine.com/news/seattle-s-besttakes-skies>. Roper, Pete. “Pandora | Mobile Marketing Guide 2010 | Advertising Age.” Advertising Age Custom Programs. 2010. Web. 15 Feb. 2011. <http:// brandedcontent.adage.com/mobile10/network.php?id=4>. Schonfeld, Erick. “Forrester Forecast: Online Retail Sales Will Grow To $250 Billion By 2014.” TechCrunch. 8 Mar. 2010. Web. 27 Mar. 2011. <http:// techcrunch.com/2010/03/08/forrester-forecast-online-retail-sales-willgrow-to-250-billion-by-2014/>. “Shazam Currently Boasts 30 Million Total iOS and Android Users.” The Next Web. Accessed March 2, 2011. Last modified January 14, 2011. http://thenextweb.com/mobile/2011/01/14/shazam-currently-boasts30-million-total-ios-and-android-users/. Siwicki, Bill. “Mobile Commerce - Shoppers Would Rather Use Smartphones than Consult Store Associates, Survey Finds - Internet Retailer.” Industry Strategies for Online Merchants - Internet Retailer. 6 Dec. 2010. Web. 27 Mar. 2011. <http://www.internetretailer.com/2010/12/06/shopperswould-rather-use-smartphones-store-asociates>. “Social Media - Facebook Mobile Tops 100 Million Users : MarketingProfs Article.” MarketingProfs: Marketing Resources for Marketing Professionals. 17 Feb. 2010. Web. 27 Mar. 2011. <http://www.marketingprofs.com/ charts/2010/3419/facebook-mobile-tops-100-million-users>. “Target Corp (TGT.N) Financials | Reuters.com.” Business & Financial News, Breaking US & International News | Reuters.com. Web. 27 Mar. 2011. <http://www.reuters.com/finance/stocks/ financialHighlights?symbol=TGT.N>. “’The Bachelorette’ Finale Leads ABC to Best Summer Monday Ratings in Over 10 Years.” TV by the Numbers. Accessed February 26, 2011. Last modified August 3, 2010. http://tvbythenumbers. zap2it.com/2010/08/03/the-bachelorette-finale-leads-abc-tobest-summer-monday-ratings-in-over-10-years/58979. Wilson, Eric. “Bloggers Crash Fashion’s Front Row.” The New York Times. 24 Dec. 2009. Web. 08 Mar. 2011. <http://www.nytimes. com/2009/12/27/fashion/27BLOGGERS.html>. Women’s Attitude Toward Clothing Shopping. (2010, December). Mintel International Group Ltd.

Letter of Agreement Between JCPenney and the Texas Advertising Group
The Texas Advertising Group (TAG) will provide advertising agency services for JCPenney (JCP) until this agreement is cancelled by either party with 90-days notice. TAG’s services include strategic recommendations that focus on developing and implementing a targeted and impactful integrated marking communication plan designed to support and build the JCP brand. Compensation to TAG will be derived from a fee system coupled with a bonus or incentive fee system. Both aspects of this plan are explained below.

Fee System
(1) TAG will be paid based on billable hours for the work it does, not by how much JCP spends; (2) TAG does not mark-up outside costs incurred on the client’s behalf. All expenses, such as production charges, travel, copies, etc. will be billed at net to the client; and (3) TAG’s hourly billing rate is the employee’s base salary multiplied by a factor to cover overhead costs (120%). A profit percentage (20%) is then added and the sum of these three items represents the costs billed to JCP. Base salaries for TAG’s employees are set yearly using regional industry averages, which are compiled by the AAAA. TAG uses the average regional salary for each job title by department for agencies with gross income between $3.75 million and $7.5 million.

Bonus System
The bonus system has two distinct benefits to JCP: (1) The bonus will be used to reward the agency based on their contribution to achieving JCP’s brand health and incidence of consumption objectives; and, (2) allocation of the bonus will be solely at JCP’s discretion, based on JCP’s evaluation of TAG’s performance against the measurable objectives specified in the marketing objectives section of TAG’s plans book. The total amount of the bonus fund equals one-half TAG’s anticipated profit or ten percent (10%) of the total salary plus overhead costs that TAG will contribute to the fund. In addition, JCP will match TAG’s allocation and that total will comprise the bonus fund. After an annual review of performance, JCP determines what portion, if any, of the fund will be paid to TAG as a bonus. Note that TAG trusts JCP to grade our efforts fairly and award an equitable bonus. TAG believes in accountability and welcomes the challenges of leaving a portion of our compensation tied to performance. The TAG team assigned to the JCP account is aware of this arrangement and both welcome the challenge and expects to share in the rewards. This arrangement helps to build team focus and commitment.

_________________________________ On behalf of JCPenney Date: __________________

_________________________________ On behalf of the Texas Advertising Group Date: April 14, 2011


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