IMC Campaign Plan Dan Ritchie, April Alexander & Tracy Weispfenning MKTG Integrated Marketing Communications Instructor: Katryna Johnson, Ph.D. Metropolitan State University Introduction Industry Analysis Growth, Current Trends, and Macro-environmental Factors Product & Brand Information Company Background History, Mission & Market Share/Sales Info Customer/Buyer Analysis Target Market, Customer demographics/psychographics Competition SWOT Analysis Promotional Programs CREATIVE STRATEGY & THE BIG IDEA Company Background JC Penney was founded by James Cash Penney & two partners who started The Golden Rule in 1902 in Wyoming as a dry goods retailer The companys original mission statement was based on the golden rule, Do unto others what you would have done unto you. In 1907, Penney bought out the partners and in 1913 incorporated the store as J.C. Penney Company Company Background cont. JCP listed on the NYSE in 1929 Catalogs introduced in 1963 and its sales surpassed $1 billion USD in 1979 JCP.com developed in 1994 and by 2005 online sales exceeded $1 billion USD CEO Mike Ullman joined JCP in 2004 and by 2010 JCP was operating over 1100 stores introduced coupons, loyalty program, etc Sales started to decline Company Background cont. New CEO, Ron Johnson, hired in 2011 Made radical changes to the companys marketing strategy New logo, new look Introduced everyday new prices 2013 Ron Johnson Fired and Mike Ullman returns Re-introducing coupons and loyalty programs Apologizing Market Share & Sales info Market Share was calculated using 2012 data at 7.1% JCP experienced a 24.8% loss in revenue in 2013 Currently stocks are at $7.70/share Year Total Net Sales $12.99 B$17.26 B$17.76 B$17.56 B$18.49 Percent Increase/Decrease (24.8)%(2.8)%1.2%(5.0)%(6.9)% Trends Technology making the industry competitive Price matching Knowing the consumers, data mining & collection Globalization & Distribution of merchandise (Future Growth) Industry Analysis Demographics Income levels, regions, age and gender Eliminating the one size fits all approach Enhance shopper experience, offering more niche products Macro-Environmental Factors Technology, Government, Economic, Social Product & Brand info Demographics Older women 55 and older Only 20% of JCP customers are age 35 or younger Annual income level of $35,000 Mostly women with 36% of total net sales from women's apparel and accessories Customer Analysis Brand Loyalists Price Sensitive Dont like change Customer Analysis Top Competitors Sears, Roebuck and Co. Kohls Corporation Competition Indirect Competitors Target Corporation Wal-mart Stores High-End Competitors Macys Bloomingdales Best Buy SWOT Analysis Strengths Differentiation through private brands Well-recognized name Weaknesses Confusing pricing strategy Alienated customers through dramatic changes Opportunities S&P Positive 2014 forecast Increased online shopping activity Increased desire for integrated retail experiences Threats Intense competition Competitors promotional activities SWOT Analysis Explained Strengths: Recognized Brands & Retailer for over 100 yrs This enables the company to distinguish itself from its competitors JCP itself is a well-known brand Weaknesses Confusion with customers Opportunities E-Commerce Threats Increased Competition Past Promotional Programs ENOUGH IS ENOUGH CAMPAIGN Company ran commercials depicting frustrated shoppers An invitation for viewers to visit the company on Facebook to measure their level of frustration THE RETURN OF SALES AND COUPONS Mike Ullmans return FAIR AND SQUARE CAMPAIGN Education on the new pricing strategy Ellen DeGeneres as a spokeswoman Confusion with customers Past/Current Promotional Programs 2013 JCP partnered with Shopkick Browse look books with links to JCP.com items Like favorite items and receive reminders for them Save items in personalized look books Connect with other members with similar tastes and browse their look books PUBLIC RELATIONS U.S. Olympic Committee JC Penney. When it fits, you feel it POSITIONING & THE BIG IDEA POSITIONING STATEMENT for the savvy, stylish shoppers of any age looking for affordable apparel, shoes, accessories and home goods, JC Penney is a customer-focused, forward-thinking retailer that delivers quality products, the latest trends, and superior customer service. THE BIG IDEA With JC Penney, you can have it all. PROMOTIONS CREATIVE BRIEF/COPY PLATFORM Redraw attention to the stores and engage new and existing customers that they can have it all when they shop at JCP ADVERTISING STRATEGY Reinvent the Brand Image ADVERTISING APPEALS Showcase the wide variety of products at JCP Affordable pricing PROMOTIONS NEWSPAPER INSERTS MAGAZINES PROMOTIONS PROMOTIONAL MIX Broadcast Commercial scene 1 Commercial scene 2 Commercial scene 3 Commercial scene 4 Commercial scene 5 Commercial final scene Print Support and Outdoor Media Sales Promotions - Consumer Coupons (both print and mobile) Contests (via social media and in store) Loss Leaders Point of purchase displays Online and mobile shopping Internet/Interactive Promotions Apps: JCP application that can offer deals with a UPC scan code that one could use on their smartphones. This app can offer great deals such as 10% off of anything We could generate a game within this application where it will be like a scratch-off lottery ticket and it will be sent to your phone once a month and the consumer will be able to choose 1 out of 3 boxes, it will make a scratching sound and will reveal the prize of the month. These deals can include a discounted price of an item A buy one get one free Or cash back rewards Also this will enter you in an even bigger drawing at the end of the year Internet/Interactive Promotions cont. Separate Website other than JCP Home This website will include a way in which you can dress yourself electronically You can upload a picture of yourself and/or an avatar like you and your body. You can click on the clothes offered by JCP in order to see what looks good on you. There will be an interactive button that you can click in order to get help on certain trends, how to layer, or what you shouldnt wear. You can talk to a live person or look in the database for information If you want a stylist, they are also available on this interactive website for a fee and they will be able to meet you in stores to help you dress. This website and the others will be link to the Facebook and Twitter pages. Social Media Facebook Daily and weekly deals on JCP Facebook page Publish deals on users newsfeed Promotional discount of 10% off coupon for liking the JCP Facebook page Social Media cont. Twitter #JCPHaveitall will keep users current on promotions and coupons available Customers will have fun and interactive ways to share their JCP experiences through retweets, followers, and favorites on the page Social Media cont. Instagram Customers can showcase and display purchases made at JCP through fun and creative photos JCP will have contests for customers who have shown the most creativity, transformation, and inspiring ways to use the products purchased using the #JCPHaveitall The top 10 winners will receive $500 gift card and the images maybe used in future JCP advertisements Social Media cont. Pinterest Customers can create their own boards to showcase style ideas for clothing and home JCP will have idea boards of how to style clothing and home goods Social Media cont. Vine JCP will post 6 second commercials, promotions, slogans (Have it all!), and design ideas for followers to view Contests will be held for customers to create an advertisement of what JCP means to them to be used in future JCP commercials and social media platforms The top 10 contest winner will receive $500 gift cards Public Relations Charities: Building playgrounds and park clean up Community involvement Accept donations for customers at the checkout JCP matches each dollar that the customers donate for the building of playgrounds campaign and plus donates 50% of total donation once a goal of $500,000 is reach in customer donations Send out Twitter and Facebook blasts to get volunteers to come help build playgrounds for kids in need and for park clean up with the #JCPHaveitall. And #JCPCares Have a volunteer sign up on website 1 month before park clean up and building of playgrounds begin offer 10% discount on certain items for being a volunteer at these events. JCP with other sponsors/vendors like Nike, Carters, and OshKosh B'Gosh donate all the tools and equipment used to build the playgrounds and for the park clean ups Get JCP employees to volunteer their time to help build the playgrounds and clean up the community parks This will provide a positive image to our target market that are predominately women. Public Relations cont. The American Heart Association NEW CAMPAIGN not already used. / Cause-Related marketing The American Heart Association needs JCPs help. With the Go Red for Women charity, hits out target market of women and would have a positive impact in raising awareness for this charity and disease. We will again, receive any donations at the check-out counters for this and possibly even at the kiosks. On the Facebook/Twitter page we will schedule events of the American Heart Association Heart Walk. This event is very large and we can promote this within our stores when the walk is happening. Customers can buy hearts and put their names on it around Valentines Day and we will display these hearts all around JCP stores. Public Relations cont. The use of MPR Celebrity appearance Create in store events to meet celebrities Provide food and drink to customers Meet and greet opportunities with customers and celebrity Promote brand awareness with the celebrity, example Racheal Ray promoting her cookware line, Martha Stewart or even Ellen would bring a positive image to JCP Give away coupons towards purchasing the products endorsed by the celebrity Have samples and product demos during the event Promote events via social media blasts, in store banners, web site, word of mouth from customers and fans of celebrity, celebrity promoting event on their own website, social media, etc. Public Relations cont. Video New Release In order to gain awareness to these particular charities and JCPs involvement, we could have Fox Business News air a clip in which customers can receive discounts for their efforts to help these charities. This can bring a brighter and more comforting image of JCP and promote a more positive brand. Personal Selling Training for Associates Warmly greeting customers Ask if associate can direct customer to a certain product If customer wants to look on their own the associate will direct customer to the product Ask qualifying questions to customer to build customer confidence in the associate to determine customers problem, needs, and provide a solution Reinforce benefits and features of the product Provide coupons and reinforce discount of price on the product through sales Recommend additional items that can enhance the product the customer is purchasing Conclusion Company Background Industry Analysis Product and Brand Information Customer/Brand Analysis Competition SWOT Analysis Promotional Programs Creative Strategy and the Big Idea Any Questions?