Digital Marketing Strategy for

Lori PetersAdrian DicksonBridgette Christie

• JCPenney is one of Americas most established and recognized apparel and home furnishing retailers.

• It has over 1,100 stores across the US and Puerto Rico and offers a digital experience over JCP.com

• However JCPenney is challenged on several commercial fronts.• Female customers, it’s core demographic, see it as outdated in both

style and substance.• It has become the retail destination of choice for low income groups and

the elderly.• More agile competitors such as Macy’s, Kohl and Target have taken away

market share.• Revenues collapsed from $18.5 bln in 2009 to $12 bln (forecast) in 2014

About JCP

• 50 pct of JCP shoppers are 55-years old and older.

• 29 pct make less than $35,000 a year.• Fewer than 13 pct make more than $100,000

per year.• They are very price sensitive.• They are more set in their shopping habits

than shoppers at competing stores.

The JCP Shopper Today

• Women shoppers don’t see JCP as trendy or stylish.

• They don’t think the JCP brand connects to them or their peers

• They miss the hunt for a bargain with discounts and coupons

• They see the stores as a place for seniors and kids.

How is JCP Perceived?

1. Engage a new type of shopper that is young, fashionable, affluent and digitally-savvy.

2. Reinvigorate the loyal JCPenney customer with couponing and in-store specials.

3. Introduce high profile partnerships and new designs that will help refresh the JCPenney brand.

4. Rebuild credibility and trust by making JCPenney more modern and relevant without losing the traditional reputation for money-saving deals

A Four-Step Digital Strategy Plan

• I’m Mel! I’m your standard 20-something year old woman.

• My interests are fashion, trends, social media, infotainment and shopping.

• As far as shopping goes, online or in-store works for me. I always share my latest outfits with my friends either on Facebook, Instagram, in-person or via selfie.

• I also do my shopping research online and search for the best deal?!

• I follow all my favorite brands online so I am up to date on the latest and greatest.

• I never leave anywhere without my phone. How else do you stay connected?

Meet Mel the Millennial: JCP’s New Target Shopper

• Sponsored ads on Facebook, Twitter and Instagram targeted to the new JCP shopper

• Redesign of Twitter and Facebook pages to become more engaging

• Incentives for users to connect like contests, giveaways, and coupons

• Development of Pinterest pages for integrated campaign with Fashion Star

• Twitter Chat with Jessica Simpson to engage her 8 Million fans with JCP and Contest

• Live Tweet with JCP during Fashion Star • YouTube “How To’s” on beauty leveraging

Sephora & JCP partnership

JCP + Social Media

In Store or Online

#JCPFSContest

FB Advertising

Increase Twitter Followers

• Bi-weekly email marketing campaign to existing and new JCP consumer with coupons, bargains, and special in-store events.

• Promotion of Fashion Star and Designer Contest

• A/B Split Testing and Dynamic Email Marketing to Measure Open Rates and Response

• Make the loyal JCP shopper feel excited about the sales and bargain hunting experience again.

JCP + Email Marketing

In Store or Online

• Push notifications with discount codes and deals from the email marketing campaign to the younger, millennial shopper through a retargeting campaign that will reach mobile users within a certain geographic radius from a JCPenney store or well-defined metropolitan locations through banner ads

• Redesign the JCP app to be user friendly and have shareable designs for users and their looks incorporating social media and adding wish lists for gifting like Amazon

JCP + Mobile

Playing Temple Runner

Served JCP Banner Ad:

“Get $10 Off!”

Clicks Ad and Redirect to Mobile

Landing Page

Register email & App Download to receive Coupon

Walks Near JCP Store

In Store or Online

Has JCP App

Push Notification to Redeem $10

• JCPenney will hold a contest for customers to enter their designs for a chance to be mentored by Jessica Simpson, a successful, celebrity designer on the TV Show, Fashion Star.

• The winner will be chosen by Facebook fan votes and Jessica Simpson and have their fashion exclusively sold at JCPenney.

• Customers can win JCPenney gift cards by voting for their favorite designs, as an incentive to users who might not have the design skill set, but have a passion for fashion.

JCP + Fashion Star

FacebookDesign Contest

Fans Submit Drawings

Fans Like Page and Follow JCP on

Twitter

User generated Designs can be included on all social media

Fans and Jessica Simpson

vote

Collect Email,

address

Winning Designer works with

Jessica Simpson Sells Designs in JCP

In Store or Online

Fashion Star Partnership on Facebook

JCPENNEY Partners with Fashion Star for Designer Contest on Facebook

Introduce JCP to 8 Million Fashion Star Viewers

Within 6 month period, we will grow JCP’s profitability by:

• Growing total unique visitors to JCPenney.com by 25% (from 7,524,345 as of 2/27/14 to 9,405,432)

• Unique visitors account for 15% of total visitor goal (1,771,086 unique visitors)• Have 20,000 additional downloads of JCP app and 20% more daily users of JCP App • Increase time on JCP website from 5 minutes to 7 minutes• Increase sales on JCP.com and on mobile from Fashion Star and Design contest by

15%• Increase social activity

– Grow current Facebook likes by 25%– Garner 4,000 more Instagram users– 200,000 more Pinterest followers– 2 million more Twitter followers– 100,000 more YouTube views and subscribers

Metrics of Success & End Result

Thank You! Questions?