Masters of Media Ad Agency JCPenney Media Campaign : “Let us Shop for You! ” Group 1 Staff: Alex Zirbel Michael Marino Nicole Houston Rachel Fia Fuselier Zach Wendkos

Innovator From The Golden Rule to iPhone App Years = 1902 The Golden Rule James Cash Penney

Landmarks 1929 NYSE 1951 $1Billion in Sales By 1966 Stores in all 50 states 1972 National TV Ads 1979 $1Billion Catalog Sales

Challenge Brick & Mortar Malls Disappearing New Trend Stand-Alone like Kohl’s e-Commerce & online convenience

jcp.com 1994 – Launched website 2005 – $1 Billion in Sales 2009 – one of the largest apparel and home furnishings e-commerce sites 2009 – $1.5 billion approx. revenues

Facebook First Fully Integrated Dept Store on FB Shop, Share, Like, Comment – Dec 2010

Consumers of JCP Female, 53, $60K-$100K income 45% have a child Spends $300 annually 4-6 trips to JCP Focus on Quality & Convenience over price

Target Market women – 10% of Population $53K-$79K Income With & without children Forming Families, Finishing Education 78 Million “Echo Boomer” born Single Females Married Females Females % of Population over 256%2.6%10% Childrenno yes Median Household Income $59,474$79,434$53,975

Market Market Annual Growth down -3.7% JCP down -3.9% 2010 JCP 9% of US Dept Store Market Ranked #5 in Market & by Target Market

Competition Kohl’s focus on Private & Exclusive Brands Macy’s strength in style and national brand name. 19% of Sales Private Brands JCP 54% of Sales Private Brands JCP Ranks lowest vs. 11 Specialty Stores by Target Market Company 2009 Sales ($millions) Sales Change from 2008 Operating Margin Net Income ($millions) Same Store Sales Change JCPenney's$17,556-5%3.8%$ % Macy's$23, %4.5%$ % Kohl's$17,1784.8%10.0%$9910.4%

Competition of Target Market 11% JCP Share of Target Market 16% US Share of Target Market Kohl’s Customers more satisfied with Price JCP More satisfied with Service JCP Midpoint of Price & Promotions Overall Similar

Product

How to Gain Target Market Through relevant Direction & Meaning Unified Vocabulary Focus on Quality & Convenience Integrate Online and in-store shopping Exclusive & Private Brands Innovation in Technology “Let us Shop for You”

1. Personal Stylist JCP as Innovator in cutting edge social media trends Target use apps more than any other age group Use to “save time or money” – Online & In-store integration – Gives purpose to mobile app – Benefit as JCP Rewards Member

Prototype: Personal Stylist

2. JCP on SoHo Use of Exclusive Designer Brands Zac Posen, Proenza Schouler, Kenneth Cole, and Dolce Vita Limited Seasonal Availability Reach Affluent Consumers Willing to pay more for special designs

Image Survey Group 1 Conducted Survey of Target Market 80% Identified with Reese Witherspoon 60% Thought Katie Couric best represented JCP JCP needs new image/spokesperson

3. Key Partnership Benz Mondiale model Dallas Witcher Star as stylish, cost-conscious, and intelligent “Heather” in ads and on website

4. Virtual Stylist “Heather” as online Virtual Stylist Recommends coordinating merchandise, accessories, complete outfits, & “SoHo” brand Used on jcp.com when consumer clicks on item

5. Themed Departments Target Market is Starting Families Looking for Convenience Promote In-Store Customer Service Integrate with Personal Stylist Ex: Holiday attire for entire family Ex: Sports outing for entire family

6. QR Code Coupons All print ads will include scannable QR Code Coupon Interactive, viral Integrates print & digital media Affluent market using coupons

Media Plan – Print Print: Total Female Audience: 6,851,240 Target Market: 2,432,190 Median Age 32.4 Publishing Company; Conde Nast, inc Total Circulation; 1,082,873 Paid Advertising Rate Base; 1,050,000 % Above/Below Rate Base: Color 1 ti. Page Rate: $137,490 WEB: Website Banner Ad and Mobile Ap Advertisement Available 21% visitors year olds 690k Unique Visitors in US Audience Interests: Make-Up and Cosmetics 26.1, Fashion & Style 11x Print: Total Female Audience: 11,500,000 Target Market: 3,162,000 Median Age: 35 Publishing Company: Conde Nast Inc Total Circulation: 2,307,714 Paid Advertising Rate Base: 2,250,000 % Above/Below Rate Base: Color 1 ti. Page Rate: $209,254 WEB Website Banner Ad and Mobile Ap Advertisement Available 1.2M Unique Visitors in US Audience Interests: Fashion & Style 11.7x, Marriage 10.5, Fashion Designers and Collections Print: Total Female Audience: 5,168,000 Target Market: 1,782,960 Publishing Company: Hachette Filipacchi media US Inc Total Circulation; 1,095,702 %Above/Below Rate Base: Color 1ti. page Rate: $141,210 WEB Website Banner Ad and Mobile Ap Advertisement Available 22% visitors years old 1.2M Unique Visitors in US Audience Interests: Fashion & Style 12.5x, Fashion Designers & Collections 8.6x

Contest for JCP on SoHo Billboard Photos Media Plan – Billboards Top 6 Cities with highest population of Target Market

Strategies Sales Promo: , text, QR code coupons with incremental savings for amount spent Direct Marketing: weekly s, text, and mobile phone app updates for new arrivals, sales, coupon promos Public Relations: JCPCares will donate $5 million to disaster victims in US and Japan

Budget “Let us Shop for You” Marketing Campaign Budget Overview Estimated Cost Promotions Sales Promotions$27,091, Public Relations Special Events & Sponsorships$5,000, Press Releases$50, Media Plan Commercial/Ad Production$6,000, Advertising Costs$61,358, Reserve/Contingency$500, TOTAL$100,000,000.00

Media Calendar

Measurements Evaluate results of “Let us Shop for You” Determine if target market share reached16.2% Use statistics of: – QR Code Coupons – Clicks & Coupon Use – Text Coupon Use – Mobile App downloads – Personal Stylist sales in-store – Virtual Stylist sales online – JCP Rewards Membership – JCP on SoHo Contest – Social Media Usage FB, Twitter, YouTube – Post Sale Surveys

Questions?