JCPenney
Strategically Reshaping the JCP Brand
For 2013 and Beyond
Victoria Vancoevorden
Jerusha Williams
Table of Contents
I.
II.
Executive Summary………………………………………………………
Situation Analysis……………………………………………
III.
Objectives………………………………
IV.
Target Audiences…………………………………………………………
V.
VI.
Strategies………………………………………………………
Tactics……………………………………………………………………
VII.
Calendar……………………………………………………………………………
VIII.
Budget………………………………………………………………………………
IX.
Evaluation…………………………………………………………………………
Executive Summary
(written in bullets)
Here you put a brief synopsis (in bullets) of what the plan is trying to address, and the
timeframe involved in carrying out the plan (identify the beginning and ending dates).
*Write this section AFTER the plan has already been written*.
Situation Analysis
Company History
The first JCPenney store was opened by James Cash Penney in Kemmerer, Wyoming
in 1902; he called it the “Golden Rule Store”. In those days, frontier miners, farmers, and
their families turned to JCPenney for blue jeans and other work clothes, shoes, fabrics,
and sewing needs. Today, busy working families turn to JCPenney in cities, towns, and
suburbs and to jcp.com for affordable fashions and home accessories.
In 1913, Penney’s growing chain of stores incorporated in Utah as the J.C. Penney
Company, Inc. and the Golden Rule name was phased out. Since 1992, the company has
been headquartered in Plano, Texas. As JCPenney grew, it became ‘A Nationwide
Institution,’ as one of its early logos proclaimed. The JCPenney catalog debuted in 1963,
and in 1994, the forerunner of today’s jcp.com began offering merchandise via the
internet. Through more than 100 years of history, the company has stayed true to its
Golden Rule beginnings, with a continued commitment to care for the communities in
which it does business.
Current Company Status
The current status of JCPenney is one of tribulation. They are struggling, as sales
continue to plummet and their market share has significantly depleted over the last year.
JCP’s stock has also been falling, while other retail corporations in the United States have
seen their stocks rise.
One issue that has greatly contributed to JCP’s downfall is the intentional shift away
from offering store sales. Now former CEO Ron Johnson made the controversial decision
to end JCPenney’s sales, instead implementing an “Everyday Low Price” standard on all
store items. This strategy was a massive failure, as legions of once loyal customers
stopped frequenting the store.
Another issue that has reaped detrimental effects on the company is that of introducing
trendy new brands and marketing them to a young target audience. All while disregarding
the needs and wants of their main consumers (who fall into an older target demographic)
by discontinuing some legacy brands. However, young consumers were not motivated to
shop at JCP because they still view the brand’s image as fitting the profile of an older
woman (who typically wears clothing that is the opposite of what young people want to
wear). Reciprocally, the traditional JCP consumers stopped shopping at the store because
they felt like they were being ignored and disrespected by the company they had been so
loyal to over the years.
From a financial perspective, JCPenney is burning through their cash reserves and
rapidly losing money. Interestingly, they just spent $850 million from their credit line to
pay for the costs of replenishing inventory.
SWOT Analysis
Strengths: JCPenney is focused on remodeling stores and renovating them to be more up
to date. They have excelled in offering customers rewards for their purchases with their
credit cards. Also, JCP has included a Sephora in most of their stores in hopes of
attracting a younger female audience. In addition to Sephora, JCPenney has stores with
salons, optical services, big and tall sections, portrait studios, furniture, and custom
decorating .
Weaknesses: JCPenney is not relevant to younger audiences. The younger audience is
apprehensive of shopping with JCPenney because they feel as though JCPenney only
caters to older women. In contrast to the opinions of the younger demographic, once
loyal consumers are feeling as though JCPenney isn’t being true to who they are. Former
customers seem to think that they are being overshadowed and the items available for
purchase no longer meet their needs.
Opportunities: All of the aforementioned weaknesses have the potential to be molded into
opportunities. JCPenney can effectively target the younger demographic on social media
sites such as Facebook, YouTube, and Pinterest. Also, JCPenney can regain once loyal
customers by demonstrating their appreciation through contests and rewards.
Threats: JCPenney’s main audience remembers how the store used to be 5-10 years ago,
and they are shopping there less frequently; thus, causing the company’s drop in sales.
Additionally, the prices and the quality of the clothing that JCP’s retail competitors offer
are a better value in the minds of consumers.
Current Public Opinion
Most people do not consider JCPenney a leader, nor a frontrunner, among other retail
stores. JCPenney is known for being the store that aunts, mothers, and grandmothers
shop. As such, JCP is currently not at all appealing to the Millennial market of
consumers. In addition, the former customers feel that JC Penney is being inauthentic to
their mission and core values.
Objectives
The following seven objectives are aimed to be achieved by the end of this public
relations campaign.

Create consumer awareness of JCPenney’s new email blasts about weekly deals.

Increase visitor traffic to JCPenney’s website by 30% over previous year.

Re-instill traditional consumers’ faith in the JCP brand and its core values.

Motivate Millennials to shop the new, trendy brands at JCP.

Garner more than 5 million views on JCPenney’s YouTube channel.

Generate more than 15 million media impressions about the “Young, Wild &
Free” contest, as well as the “JCP, Your Only Fashion Rule” campaign.

Increase individual store sales by 20%.
Target Audiences
Traditional Public
JCPenney’s traditional target market has been middle aged people and shoppers
in the middle class with families. More specifically, JCPenney targets women
between the ages of 35 to 54, whose average household income is between
$35,000 and $100,000. They typically have followed a traditional life cycle,
transitioning from being single to married, and finally to raising a family. Most of
them are working professionals; however some are homemakers as well. With
regard to religion, race, and nationality, the store is frequented by a variety of
individuals across a broad spectrum of these demographic categories.
These consumers fall into the psychographic category of ‘Belongers’. They are
satisfied with mainstream values and are loyal to brands that satisfy their needs
and desires. As the majority of the U.S. population, they are important because
they will recognize value in the clothing pieces, and when they find items that fit
their needs (quality, value, and comfort) and desires (fashion and versatility), they
will be loyal to that store. Additionally, they are bargain hunters and time
savers—they want their shopping experiences to be convenient and to have the
ability to purchase items at fair/discounted prices.
New Public
In recent years, JCPenney has been making significant changes in efforts to attract
a newer market; namely, the Millennials. This group of consumers ranges in age
from 19 to 30 years old. The majority are either in school or are young
professionals in the workplace. They are technology-savvy, socially conscious,
and have a deep need to feel valued by their peers.
These consumers can fall into either of two different psychographic categories:
Achievers and Experientials. Achievers are an upscale audience that pride
themselves on making their own decisions. This group is important because they
want to know that the items they are purchasing are fashionable and in season;
they can be assured that purchasing clothing from JCPenney always guarantees
that they will be fashionable and on mark with new trends. Experientials are
venturesome and willing to try new things; they are a promising upscale audience.
This group is important precisely because they are willing to try new things. With
JCPenney’s recent introduction of hip brands such as Joe Fresh and Pearl by
Georgina Chapman, consumers need to have a willingness to try something new
and purchase the clothing.
Strategies
Key Messages
Dependability
Customers can always rely on JCPenney to deliver a quality product and unique
experience that was made just for them.
Value
JCPenney is committed to offering customers affordable prices on all products
and services.
Diversity
JCPenney works to ensure there is diverse selection of styles and brands for
customers to choose from.
Specific Strategies
1. Reinstate store sales and promotions; and further develop them.
2. Generate consumer awareness of in-store promotions.
3. Engage Millennials in contests through social media that will be relevant to their
personal values.
Tactics

Include email sign-up pads at all store POS stations.

Weekly newsletter email about this week’s prices, deals, or sales that will bring
awareness back to the JC Penney website. The customer will have the
opportunity to receive 10% off instantly once they purchase their items, and a $10
off coupon will be sent to their email address.

Social Media Campaign:
o On YouTube, initiate the “JCP,Your Only Fashion Rule” campaign. Each
contestant will submit 3 minute or less video that describes how they have
helped someone as they would have wanted to be helped themselves.
Next, each contestant will write on JCP’s Facebook that they want to enter
the contest with their YouTube link, and their profile picture must contain
JCP fashions or products.
o Find a way to connect to Pinterest. My JCP fashion contest “Young,
Wild, and Free”: each contestant will post their JCP outfit on Pinterest and
a top 10 will be decided and customers will vote on their favorite. The
winners will be flown out to meet Bruno Mars and attend his concert for
free.

To target the traditional public, JCP will have a contest that will allow customers
to pay for all of their items for a penny. The contest will be titled “Pay It for a
Penney.”

“Spin It to Win It” competition that will be located at the front of the store.
Customers will be allowed to spin one time and receive a coupon worth 5, 10, 15,
20, 30% off, $10 gift card that will expire the same day that they played the game.
(Friday, Saturday, and Sunday competition)
Calendar
The public relations campaign will be 24 weeks long; running from June 2, 2013 to
November 30, 2013.
JUNE
Weekly newsletter email
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
-----------------------------------------------------------------------------------------------------
Press release about the
“Young, Wild & Free”
contest
----------
“Young, Wild & Free”
contest
------------------------------------------------------------
Press release about the
“JCP, Your Only Fashion
Rule” campaign
-------------
“JCP, Your Only Fashion
Rule” campaign
-
----------------------------------------------
“Pay It for a Penney”
promotion
--------------------------------------------------------------------------
“Spin It to Win It” instore contest
----------------------------------------------------------------------------------------
Methods of evaluation
-----------------------------------------------------------------------------------------------------
Budget
Weekly newsletter email
Press release about the
“Young, Wild & Free”
contest
Young, Wild & Free contest
Press release about the “JCP,
Your Only Fashion Rule”
campaign
“JCP, Your Only Fashion
Rule” campaign
“Pay It for a Penney”
promotion
“Spin It to Win It” in-store
contest
Methods of Evaluation
STAFF TIME
$3000 (Researching, writing,
compiling information; graphic
design services as well).
$600 (Researching, writing,
contacting various news media
outlets, and news wire service
distribution).
$10,000 (Team of staff
researching, scheduling,
contacting celebrity agents, and
monitoring Pinterest).
$600 (Researching, writing,
contacting various news media
outlets, and submitting to news
wire services).
$3,000 (Team of staff
researching, and monitoring
Facebook and YouTube).
$20,000 (Team of staff working
on all aspects that are involved
in carrying out the promotion
over the course of 4 months. In
addition to the costs incurred by
informing stores’ staff about the
promotion rules).
$5,000 (Designing the board;
costs involved with training
stores’ staff on how to use the
board and the rules of the
contest).
$25,000 (Team of staff
analyzing and interpreting
incoming feedback through
analytic and tracking software;
and developing reports).
OUT-OF-POCKET EXPENSES
$800 (Internal software update to send emails
to a higher volume of recipients).
$150 (Electricity, internet access, office space
occupied, and the use of company technology
over the course of time).
$400,000 (Bruno Mars as the campaign’s
celebrity spokesperson, air travel and hotel
accommodations for two people, and concert
tickets; as well as fee paid to Pinterest to host
the contest on their site).
$150 (Electricity, internet access, office space
occupied, and the use of company technology
over the course of time).
$700 (Electricity, internet access, office space
occupied, and the use of company technology
over the course of time).
$5 million -$8 million (Paying for one
customers receipt each day at every one of the
1000 store locations across the U.S.; over the
course of the 4 months that the promotion is
running).
$1 million-$2 million (To account for the
various transaction discounts that will be
processed over the course of the 5 month
contest. Also, the costs to manufacture and
distribute them to each store).
$3,000 (Financial analytic software, social
media analytic software, eWatch, media
impression tracking service, and website
visitor tracking).
TOTAL BUDGET (with 15% contingency included): $9,742,800
Evaluation

All customers will be asked to enter in their email address he weekly newsletter when
they reach the POS operators. We will measure how many people entered in their
emails for the newsletters.

The social media campaigns will be measured by how many people entered and how
many people shared the posts of their friends or someone that they admired or liked.
o E-watch was created by PR Newwire to monitor how many people are
talking about your product.

The JCP “Pay It for a Penney”contest will be measured by how many more people
started to shop in the store at the start of the campaign as opposed to how many
frequent shoppers JCP received before and after the campaign.
The “Spin It to Win It” contest will be measured by store sales of June 2013 to June 2012
or January to May 2013 before the contest was launched.
Examples:
A defined increase in sales
A specific number of mentions in the press
A measured increase in public awareness of a brand or service.
A predetermined increase in customer direct inquiries about a product or service
A service that tracks “media impressions” to detail how many people were exposed to the
message.
Systematic content analysis programs that track the intracasies of media coverage
(positive v. negative coverage, relationship of the coverage v. your competitors).
**PR Newswire recently launched eWatch—a service that allows you to track what
people are saying about your client online.
Measure audience attitudes using benchmark studies that test attitudes both before and
after exposure to the message.
“Clipping and Message Analysis”, “Taking Clippings Further”,
“Background”, “I plan to shop at Sears for the Holidays”, “What was the impact?”—
these three headings relate to how positive PR can directly translate into higher sales and
profit.
The benefits of a feature news story placement—“Fashion Footwear and NYT”, “The
New York Times”, “Fashion Footwear Results”, “Footwear Conclusions”
http://www.instituteforpr.org/iprwp/wpcontent/uploads/Measuring_Success.ppt#955,7,Clipping and Message Analysis
References
Berr, J. (2013, April 26). J. c. penney share soars on soros buy. Retrieved from
http://money.msn.com/now/post.aspx?post=0d4e6d9f-f480-4775-a61b-f03f8404c2ed
“George soros discloses enormous j.c. penney investment.” (2012, April 25). Retrieved
from http://www.huffingtonpost.com/2013/04/25/soros
Zack’s Equity Research. (2012, January 3). J. c. penney: A swot study. Retrieved from
http://seekingalpha.com/article/
WEBSITE RESOURCES:
GREAT for the pr campaign construction!:
http://www.prhelper.com/templates/pr-campaign-plan-1.php
About JCPenney’s current situation:
http://blogs.hbr.org/cs/2013/04/jc_penneys_real_problem.html
http://www.forbes.com/sites/jonathansalembaskin/2013/01/02/lessons-from-j-c-penneys-doomedmarketing-makeover/
It could have created new financing and lay-away policies that communicated value, and used
social media to create meaningful communities of consumers who wanted to track and participate
in conversations about prices. Employees could have been recruited and trained to offer a
fundamentally new customer experience based on integrity
http://www.adweek.com/sa-article/pr-moves-front-and-center-142488
-Today, PR has become a dialogue with a much wider range of influencers. Certainly the press
plays a role, but it is joined by bloggers, customers, company employees and anyone else who
talks about a brand, especially online.
"The Web is a medium for dialogue, and what is PR other than creating a forum for dialogue?"
says Corey duBrowa, SVP of global communications at Starbucks, which has long relied on PR
and public affairs to guide marketing and activate its communities. "We aspire to be world-class
storytellers. PR plays an instrumental role in crafting the narrative of the [Starbucks] brand.
Storytelling is front and center for us."
-So when South African fast food chain Wimpy—in a 2012 CLIO- and Cannes-winning
campaign—used sesame seeds on 15 burger buns to spell out messages in Braille and bring
attention to its menus for the visually impaired, the video of blind people reading the messages
went viral via social media and press coverage. The joyful reactions of 15 people reached
800,000 others in South Africa, and globally built greater awareness for the challenges of living in
a world built for sighted people.
- Similarly, Schick sought to capitalize on memes such as planking (where people photograph
themselves lying flat like a plank) and horsemaning (headless trick photography) to create
"razorbombing."
The challenge was to create some excitement around Schick's decade-old Xtreme3 disposable
razor. The big idea was to start a photographic trend that used the Xtreme3 razor to make a
visual pun—where it might be shaving a building or trimming a lawn—that could help create viral
excitement via social media.
"We wanted to breath new life into it," says Suma Nagaraj, brand manager for Xtreme3. "The
brand was fading and we wanted it to be relevant to [younger consumers]."
http://www.marketingweek.co.uk/why-blogs-and-tweets-give-pr-machinebite/3024802.article
Alicia Holbrook warns: “Never, ever hard sell, brag or boast.” Copy that seems to
advertise will be easily spotted.
http://www.endgamepr.com/blog/2009/03/18/top-10-dead-or-dying-pr-tactics/
http://www.jamorales.com/work/pdf/jcpenney_brand_strategy.pdf