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Masters of Media Ad Agency JCPenney Media Campaign 2012-2013: Let us Shop for You! Group 1 Staff: Alex Zirbel Michael Marino Nicole Houston Rachel Fia Fuselier Zach Wendkos

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Innovator From The Golden Rule to iPhone App + 100 Years = 1902 The Golden Rule James Cash Penney

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

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

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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

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

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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

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Target Market 25-34 women 10% of Population $53K-$79K Income With & without children Forming Families, Finishing Education 78 Million Echo Boomer born 1978-2000 2008Single Females Married Females Females 25-34 % of Population over 256%2.6%10% Childrenno yes Median Household Income $59,474$79,434$53,975

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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

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Competition Kohls focus on Private & Exclusive Brands Macys 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%$251-6.3% Macy's$23,489-5.6%4.5%$350-5.3% Kohl's$17,1784.8%10.0%$9910.4%

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

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Product

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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

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1. Personal Stylist JCP as Innovator in cutting edge social media trends Target 25-34 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

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Prototype: Personal Stylist

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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

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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

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

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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

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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

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

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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: 3.1 4-Color 1 ti. Page Rate: $137,490 WEB: Website Banner Ad and Mobile Ap Advertisement Available 21% visitors 25-34 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: 2.6 4-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: 4.4 4-Color 1ti. page Rate: $141,210 WEB Website Banner Ad and Mobile Ap Advertisement Available 22% visitors 25-34 years old 1.2M Unique Visitors in US Audience Interests: Fashion & Style 12.5x, Fashion Designers & Collections 8.6x

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

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Strategies Sales Promo: email, text, QR code coupons with incremental savings for amount spent Direct Marketing: weekly emails, 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

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Budget Let us Shop for You Marketing Campaign Budget Overview Estimated Cost Promotions Sales Promotions$27,091,032.00 Public Relations Special Events & Sponsorships$5,000,000.00 Press Releases$50,000.00 Media Plan Commercial/Ad Production$6,000,000.00 Advertising Costs$61,358,968.00 Reserve/Contingency$500,000.00 TOTAL$100,000,000.00

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Media Calendar

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Measurements Evaluate results of Let us Shop for You Determine if target market share reached16.2% Use statistics of: QR Code Coupons Email 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

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Questions?