Executive Summary

Situation Analysis

Strategy & Integration

Integrated Brand Promotion Programs

Measurement & Evaluation

Bibliography

Contract
This plans book presents the Texas Advertising Group’s (TAG) recommended national, fully integrated
marketing campaign for JCPenney (JCP) targeting females 25-34. The campaign runs February 1, 2012
to January 31, 2013 and is designed to acquire new and retain existing customers to grow JCP’s share of
wallet from this segment.

TAG has established an overall marketing objective of increasing sales to females 25-34 by $210
million. This will be achieved primarily by garnering new business from three main competitors (Kohl’s,
Macy’s and Target) and by increasing sales to current JCP customers who are members of the target.

TAG’s recommended $100 million satellite campaign is built around the positioning and brand
architecture used in the currently successful “We make it affordable, you make it yours” campaign.

All TAG’s recommendations are based on a research foundation that includes 365 mind-maps, 9 in-
depth interviews, an online survey with 102 respondents, as well as extensive secondary research.
Based on these building blocks, TAG analyzed females 25-34 and concluded that they are an extremely
diverse group that breaks down along maturity fault lines. For example, the target includes Fresh-Faced
Practical Pros (25 – 27), Newly Married Go-Getters (28 – 30) and Fashion-Conscious New Moms (31 – 34).

Although these groups are diverse, TAG’s single big idea is focused on the emotional bond between the
targeted females and retailers that bridge the entire demographic. This bond is based on the fact that
the strength of a relationship between a customer and a retailer relies not only on the merchandise
sold, but more importantly, on the stories created by the customer, based on their experience with that
merchandise.

The campaign will achieve the increased sales objective by utilizing a media strategy built around
engagement, buzz, cohesion and utility, as well as a creative strategy that focuses on the stories
created by females 25-34 based on their experiences with JCP’s clothing. In order to continuously
and effectively reach the target, the 360-degree media plan is built around touchpoints that are both
traditional and non-traditional. Non-traditional touchpoints include Groupon, Pandora and Shazam.

The media and creative strategy will be complimented by TAG’s suggested new partnerships with
Seattle’s Best, Glamour’s Young & Posh and Carrie Underwood. Importantly, TAG recommends against
adding additional clothing lines but instead highlighting JCP’s new partnerships with MNG by Mango
and Call It Spring by Aldo.

In conclusion, TAG’s strategy of focusing on the emotional bond between a customer and a retailer will
create a lasting impression of JCP among females 25-34. Through TAG’s fully integrated campaign of
creative, media and partnerships plus an enhanced digital and in-store experience, the target will be
effectively reached. TAG is confident that this marketing campaign will deliver the $210 million in sales
that will signify success.
 This chapter presents a JCP company and brand history, a brief evaluation of JCP’s
products and service mix plus an overview of TAG’s primary and secondary research
findings. This chapter concludes with TAG’s SWOT analysis.

JCP: A Company Rich with History

JCP is more than a department store; it’s a place where stories begin, where the first
page to many life chapters are turned. Whether it be a new graduate searching for
the perfect suit for her first interview, the love-smitten bride registering for all her
essentials for the next twenty years, or a soon-to-be mom eagerly anticipating her new
baby’s arrival; all of these women and their lives are as genuine as the store they love to
shop at, JCP.

Since its inception, JCP has stayed true to a platform revolving around hard working
Americans and treating both consumers and employees no less than the way they would
treat their own families. From the first time the flagship store opened its, then, quaint
shop doors in 1902, JCP has evolved into a household name and a major player in the
nationwide retail industry. From the beginning, JCP has been home to affordable,
fashion-forward brands at the national level and even host to select private brands
exclusively designed for JCP.

JCP’s tenacity and flexibility in adapting to changing times and social demands is
evident in its thriving ecommerce site and expansion to over 1000 department stores
in the US and Puerto Rico, continuing the story telling of not only a mere department
store, but building the story of it’s shoppers for over 100 years.

A Look at JCP Products & Services

TAG recognizes that JCP is more than a seller of merchandise, but also a source for
giving life to that merchandise. Because JCP plays an integral role in many life stage
developments, there are several very large categories where JCP acts as a major player.
Staying aligned with modern trends, JCP’s broad scope of products and services are
available not only through classic “Brick and Mortar” stores, but also has successfully
expanded to the online space, with most transactions taking place through JCP.com,
but also through social media and mobile applications.

“I go to Penney’s as a retreat.”
April Rains, Age 28
 As the pie chart from the case indicates (left), JCP’s sales are
concentrated in three major categories: women’s apparel, home
fashions, and men’s apparel. However, women’s apparel and
accessories, which are the prime drivers of department store selection,
constitute 35% of JCP’s sales. JCP also offers services including full
salon services, professional portraits, and a comprehensive baby and
bridal gift registry.
JCP’s versatile product offering reflects the individuality of its target
and its versatility in not only fashion styles, but lifestyles. JCP has
Services and other successfully recognized
4% its changing demographic and has responded
11%
in a bold way by introducing modern, fashion-forward brands to better
Women's Apparel
embrace the style quotient of the19%
JCP name.
Men’s Apparel

Home JCP is not

19% like every department store, and that is one of its greatest

Women's Accessories
assets. JCP’s key differentiating factors include: (1) Sephora product
offerings within JCP; (2) exclusive7% brands including- MNG by Mango,
Children’s Apparel
Call it Spring by Aldo, Liz Claiborne and American Living; and, (3)
Family Footwear host to private
11%
label brands, each one exuding a distinct look, including:
Arizona Jeans, St. John’s 24%
Bay, IYRonson, and many others.
Fine Jewelry

Secondary Research: Key Insights

Based on Mintel’s Department Store Retailing August 2010 Report and Mintel’s Clothing
Shopping December 2010 Report, TAG has identified the six key insights stated below. These
insights into females 25-34 were critical in the development of TAG’s plan.

1. Shopping is a social experience.

2. As this demographic matures, the once frivolous shoppers, now view most purchases as an
investment. This is where the importance of creating value perception is key.

3. In all categories of purchases, females 25-34 identify themselves more closely with younger
females than their older counterparts, indicating their desire for younger styles and attire for
jump-starting their career.

4. When it comes to shopping, these women do their homework. The Internet is a major
research tool, with in-store follow-up purchases not far behind.

5. The way clothing fits becomes more important with each passing year. As they age, these
women want clothing that fits well, polishes their look and can still be personalized.

6. JCP customers have a desire to be rewarded for showing loyalty to their favorite stores, and
they long for a more personalized relationship. The JCP woman feels like her favorite store is
a large part of her life; she creates a relationship with the store and wants to feel as if she is as
important to the store as they are to her.
Primary Research
TAG’s primary research focused exclusively on females 25-34 and consisted of the following: (1) 365
mind maps; (2) 102 online survey respondents; (3) 9 in-depth interviews; (4) ten on-spot interviews;
and, (5) an in-store and general retail observation study.

Based on this primary research, TAG derived six key insights. These insights provide the basis of TAG’s
target market definition and all other strategic and tactical recommendations.

1. Maturity Fault Lines: Different life stages, same wants.

Within the age range of 25-34 there are three major “maturity fault Lines” which TAG identified
through our primary research. These women have distinct personalities and are in differing life stages.
However, while this effects the media placement and messaging strategies used, all women in the target
essentially want an exciting brand experience that offers stylish merchandise that they will cherish and
value over time.

2. Time: A precious commodity.

Females 25-34 are pressed for time. Whether it be due to a bustling career or a demanding family/social
life, shopping is an activity that is squeezed into a tight time frame. This impacts a variety of target-
relevant decisions including choosing between free-standing versus mall department stores.

3. Motivation: “ME time”

Whether “burden” or “escape” shoppers, both segments of the target want shopping to be as painless
and enjoyable as possible. Many women interviewed depicted shopping at JCP as “an escape” or “a
time to relax”. This “ME time” sentiment plays a strong role in decision making in the target’s choice of
where to spend their limited shopping time.

4. Brands: Appreciated, but not a deal breaker.

Many members of the target communicated that brand names were less important than style quotient
and versatility of the merchandise in their purchase decisions.

5.Value: It’s a perception not a dollar amount.

The target perceives value as a combination of merchandise quality, item price and brand personality
perception. No one variable dominates.

6. Lineage: A missed opportunity.

A majority of the targeted females interviewed, as well as those surveyed online, reported having visited
JCP at some point in their lives. Many of these women experienced JCP as youngsters with their family,
most often with their mothers. However, many of these women are not continuing the lineage of JCP
being the family shopping destination for their own lives and new families.
Based on these six insights, TAG developed the following profile of the targeted females 25-34:

They are REAL women:

• Independent shoppers; they don’t like being
hounded by salespeople
• Frugal and proud of their ability to save
• Apathetic to high-end branding

They lead REAL lives: Give them a REAL experience:

• Limited spare time • So they feel the personality of the store
• A desire for versatility within seconds of entering
• Family and friends are a high priority • That surpasses the pricey boutique
• New lives of their own to build and alternative shopping destinations
grow into • To highlight their eclectic and unique style

In addition to these key insights, TAG created the archetypes of “burden” shoppers and “escape”
shoppers to capture the variability of attitudes toward the retail shopping experience. These archetypes,
as defined below, also emphasize the importance of the in-store experience.

Burden shoppers view shopping as a necessity not an enjoyable activity. They pursue in-store
experiences in short bursts and typically search for a specific item and abandon their efforts if the item
is not immediately found. Burden shoppers are more inclined to employ online shopping and other
digital techniques to decrease the time spent searching for merchandise.

Escape shoppers love to shop. They view the retail experience as a getaway and a stress reliever.
Similar to the burden shopper, they also appreciate easy in-store navigation. However, they spend
longer periods of time perusing shelves and enjoying any extra services offered by a retailer. Escape
shoppers research online as well, but frequently browse in-store before completing a purchase.

It is important to note that based on individual circumstances, at any given point-in-time, members of
the target market can be either a burden or an escape shopper.

SWOT Analysis Strengths

TAG’s review of the external • Value/Price Points Weaknesses
Style quotient
environments revealed the following • Private & exclusive brands
In-store ambiance
strengths, weaknesses, opportunities • Sales, coupons, JCP Rewards
Store layout and navigability
and threats for JCP. These • Unobtrusive customer assistance
Brand ambiguity
conclusions guided the development • JCP.com online sales
of TAG’s plan. The creative work
Opportunities
was built on current JCP strengths Threats
• Create in-store/personalized space
of value/price and exclusive brands, • Shopping experience
for target
and was designed to impact the • Style perception and expectations
• More JCP branding in-store and online
weaknesses of style, in-store • Brand ownership
• Partnerships: an opportunity to
ambiance and brand ambiguity. reinforce existing and attract new • In-store or nearby food and
customers beverage retailers
• Memories, personal connections
A mind map is a visual representation of the complex network of associations that constitutes a
consumer’s brand perceptions. TAG used the analysis of mind maps to unearth critical insights
that were not readily apparent.

During the Fall of 2010 mind maps were constructed, via in-depth interviews, for 365 females
25-34. This data set included JCP and four of its competitors: Macy's, Kohl's, Target and
WalMart.

These mind maps provided TAG with unique perspectives that influenced TAG's
recommendations across all campaign decisions. Summary mind maps were constructed for
JCP, Kohl’s, Macy’s and Target. These are presented below and on the next page.
This chapter opens with statements of JCP’s vision and positioning. This is followed by TAG’s overall
marketing objective against the 25-34 target of increasing sales by $210 million. Next, a brief discussion
of marketing mix strategies is presented. The chapter concludes with a comprehensive statement of
TAG’s recommended creative strategy including the single big idea around which all efforts centered.

A Vision for JCP

“Our vision is to be America’s shopping destination for discovering great styles at compelling prices.”
Mike Ullman (From 2009 Annual Report)

Positioning
JCP is positioned as the department store that invites customers to discover a wide-variety of clothing and
other merchandise while providing customers with an attractive blend of style and quality at compelling
prices.

Marketing IBP/Objectives
The overall marketing objective of TAG’s campaign (February 1, 2012 – January 31, 2013) is to increase
JCP’s sales to females 25-34 years old by 11%. This increase will be achieved primarily by stimulating
Kohl’s, Macy’s and Target shoppers to shift a portion of their purchases to JCP. In addition, a significant
portion will come from increasing purchases made by current JCP shoppers.

Building on JCP’s already well established success as an online retail leader, TAG will increase online
sales to females 25-34 by $21 million over the course of the campaign. This increase is based on Forrester
projections of online growth coupled with
TAG’s campaign strategy and focusing
Source of Sales Increase % Garnered Sales Increase
on the consumer (millions)
experience, which is
specifically targeted to female customers
25-34. Kohl’s 25% $52.5

Macy’s 20% $42.0

Target 15% $31.5

Note: In terms of dollar sales, based on Reuters estimates, JCP
sales to females 25-34 in All other 10% $21.0 the preceding period (2.1.11-
1.31.12) will be $1,910.43 million. An 11% increase will
expand sales to $2,120.57 Current JCP 30% $63.0 million. The $210.1 million in-
crease will be generated by increased sales from current JCP
customers, customers of JCP’s top three competitors and
other retail stores. Therefore, 70% or $147.07 million of the increase will be garnered from JCP’s competitors. Kohl’s shoppers will contribute
25% or $52.5 million of this total, Macy’s shoppers will contribute 20% or $42.0 million and Target shoppers will contribute 15% or $31.5 mil-
lion. The additional, 10% or $21.0 million will be garnered from other department stores, stand-alone stores and boutiques. Furthermore, 30%
or $63.1 million of the increase will come from expanded spending by current female JCP shoppers aged 25-34.
 Rationale for Attracting Customers Away From Kohl’s, Macy’s and Target

TAG’S campaign targeting females 25-34 will capture customers from Kohl’s, Macy’s and Target. The
rationale for focusing on these three competitors is explained below.

1. In-depth interviews and mind map analyses indicated that apparel/accessories are the key
motivators which dictate store switching behavior among members of this market.

2. The Mango and Aldo lines are a great fit for females 25-34. TAG has concluded that the appeal of
these brands is strong enough to motivate competitors’ shoppers to switch to JCP. For example,
these women would be strongly attracted to Mango and Aldo versus Kohl’s Lauren Conrad and
Simply Vera lines. The same is true with Macy’s Style &Co and BCBG as well as Target’s
store brands.

3. Leveraging these JCP brands via TAG’s persuasive creative appeals coupled with innovative and
savvy media strategies and other IBP programs will effectively position JCP to pull customers away
from these competitors.

4. Based on both the size, as measured by women’s apparel sales volume, and the similarity in
consumer profiles between JCP and each of the three competitors: TAG forecasts that the source
of JCP’s new business will be 25% from Kohl’s, 20% from Macy’s, 15% from Target, and 10% from
all other stores.

Product Place
TAG recommends no change in JCP’s merchandise mix. By
TAG recommends no change in JCP’s current network of
leveraging the recently acquired, exclusive partnerships with
store locations, as it would be inappropriate to recommend
Liz Claiborne, Aldo and MNG by Mango, style will be placed at
such changes as a part of a supplemental campaign focusing
the forefront of JCP’s branding. Supplementing these clothing
and shoe partnerships with the Sephora beauty partnership exclusively on females 25-34.
will create an attractive product mix for the target. TAG
will also focus on creating a segmented space with clothing
specifically for females 25-34.

Price
TAG recommends continuing to transition JCP from the low
price leader to the value leader, while maintaining current
price points. TAG’s focus will be making JCP the leader in
value rather than price. Currently, Macy’s beats JCP as the
“luxury” department store leader, while Kohl’s gains share in
the discount department store market. TAG anticipates that
Kohl’s will maintain its position as the leader in low price.
Promotion
TAG recommends an aggressive promotional strategy centered
around the emotional bond created between females 24-35 and
department stores.
This strategy is supported by an innovative blend of media
including digital, online and traditional. These are supplemented
by enhancing the in-store experience, new partnerships, and
community relations all specifically targeted to these women.
Statement of Creative Strategy
TAG’s creative strategy and tagline, “life’s little closet,” is based on research drawn
from analysis of perceptions of department stores pulled from consumer mind maps
and in depth interviews.

First, the underlying strategy is explained in the Creative Origins section, this
discussion is followed by coverage of TAG’s Creative Brief.

Creative Origins

Fashion is a Feeling
Our strategy for JCP was borne of human truth: clothes are only clothes until you give
them a story. Fashion sense and style is measured by how clothing makes the wearer
feel. Worldwide, shopping is a female obsession; for some, a new pair of black heels is
more important than paying a phone bill on time. This is not because new clothing is
imbued with some kind of fashion magic; it is because clothing brings what a woman
feels to the surface. She may not realize her little black heels are magical until three
months, an awkward first date and a dinner party have passed, but her clothing is now
part of her life story.

The JCP Woman

JCP is a department store that sells great clothing and products at a great price. But
the lives lived by the women who pass through the aisles is far more exciting than
a new cardigan or a sale-priced toaster oven. This JCP woman is uniquely different
from the Macy’s woman; she rides the subway. She has a group of great girlfriends
that she’s known for years, and while she may not be married yet, she loves the feeling
of being in love. She lives a fun life and only wants it interrupted by advertising if it’s
meaningful to her, and meaningful is real and unique.

Back To Reality
This strategy is a shift away from the short-lived, trendy glam of department store
branding. Our creative plans involve the use of real women telling their stories in
relation to JCP clothing and products in order to encourage a life-long quality rela-
tionship with each item and the store itself. Branding efforts under this strategy take a
holistic and forward-thinking approach in appealing to the consumer through non-
traditional ad placements and emphasis on social media and web technology. This
new vision for JCP will extend to the in-store experience, from the labeling of depart-
ments to store organization and displays.

More Than A Name

From here on out, JCP is no longer a seller of clothing and goods, but a player in
a million life stories. This book you are reading right now is a small sample of this
strategy: the stripping-down of the superficial and the return to the perspective of the
consumer. Stories are much more interesting, personal is much more meaningful, and
brands should be more than a name.
Identifying the target market:
Who are we talking to?
• Females, ages 25 – 34
• JCP customers and females 25-34 who are
loyal Kohl’s, Macy’s, and Target customers.

Where these women may be:

• Just out of college, single, entry-level
• New career, new boyfriend, new chapter
• Just married, moving, looking forward
• Better job, better home
• Settling down, pregnant
• Child, focusing on what’s important

Maturity Fault-lines
The target is a diverse audience separated by important life events – careers, marriage,
children – that distinguish not only their ages, but their maturity. As a woman
progresses through these nine years, important markers like these dictate the tone of her
life. Three examples of the groups that makeup this demographic cohort are described
below.

Fresh-faced practical pros (25 – 27)

New graduates, they’re looking to get their professional lives on track before they settle down
with a boyfriend and think about family. They value their individuality and want to express it
through what they wear. They look for value in what they buy for their wardrobe and home.

Newly married go-getters (28 – 30)

These women have settled down with a significant other without compromising their
professional ambition. They are focused on their careers and have less time to indulge in
personal desires. They may be planning for children, but they’re most concerned about
spending time with their significant other and enjoying the little moments they have
away from work.

Fashion-conscious new moms (31 – 34)

These women have recently had children and are more concerned with being good
mothers. However, they have not lost a sense of individuality and want to look
fashionable as they work out to get their figure back. Just because they’ve had
children doesn’t mean they need to wear Mom Jeans.

Note that not all females 25-34 will move along this timeline at the same pace.
While recognizing these women’s diversity of lifestyle and AIO’s, TAG’s strategy
will focus on the appeals that span and resonate with the majority of all such
subgroups.
 Creative Brief
What are we trying to accomplish?
To further establish JCP as a brand that celebrates the customer experience through surprising
clothing style, compelling prices and an intimate connection with its consumers.

(TAG will focus primarily on clothing because research revealed that it is the strongest
motivator of the target in selecting a shopping destination.)

What do we want the target to feel about the JCP brand?

We want the target to feel a close, personal trust with the JCP brand that is fostered by its
continued efforts to celebrate them in their everyday lives.

What is the Single Big Idea?

JCP understands that the strength of a relationship with the consumer relies not only on the
merchandise sold, but on the stories created by the customer, based on their experience with
that merchandise.

What is the ammunition that supports the Big Idea?

Stories reflect ownership.

Analysis of TAG’s depth interviews and mind map research uncovered that emotional bonding
with a retailer is based primarily on the stories created by the consumers themselves. Stories
create the strongest emotional bond with a store.

What is the tone and personality to be conveyed?

The right voice is personal, empowering, real and contemporary.

Creative Mandatory
1) Must use JCP.com in all messaging
2) Must use the JCP logo in all messaging

“I realized that I could wear certain things that kind of express my

personality and maybe start up a conversation. For me, it became more
of an art and expression of my personality. I don’t necessarily need
somebody to flap a mannequin in front of me and tell me what to wear
because it has nothing to do with me.”
- Britney Murray-Jackson, Age 25
This chapter reveals TAG’ s media and creative executions simultaneously. Jointly presenting media
and creative elements illustrates TAG’s integration of concepts across platforms. After addressing
media and creative, TAG’s recommendations for enhancing JCP customers’ digital and in-store
experience, partnerships and community relations are presented. The chapter concludes with a
flowchart that visually displays TAG’s media plan.

Media Strategy
Through primary and secondary research, TAG developed four important media objectives:
engagement, buzz, cohesion and utility. TAG’s recommended media tactics focus on achieving these
objectives. The media plan described below will reach the females 25-34 where they already are through
multiple touch points. To yield a cohesive, multi-platform campaign, TAG’s media efforts will provide
females 25-34 with more ways to interact, become engaged and fall in love with JCP.

The primary purpose of TAG’s media recommendations is to increase market share and shopping
frequency among females 25-34. Secondary purposes include acquiring new customers and retaining
current JCP shoppers ages 25-34. JCP has a long and successful history of utilizing a digital platform.
To continue this forward-thinking approach, TAG’s plan emphasizes digital media tactics and utilizing
mobile platforms.

TAG constructed a holistic media plan that reaches females 25-34 at multiple touch points. Through
extensive primary and secondary research, such as Nielsen AdViews, TAG examined retailers’ media
spending from 2007-2010. Using these and other data, TAG built a media plan that highlights the
creative strategy in an efficient and effective manner.

Note that after careful consideration, TAG has elected not to suggest recommendations for changes
to JCP’s Search Engine Optimitization or Search Engine Marketing tactics. The proposed satellite
campaign targeting females 25-34 will operate under the umbrella of JCP’s current efforts in this
domain.
Media Objectives & Creative Executions
TAG’s four media objectives along with selected creative executions within the “life’s little closet”
campaign are described in the sections below. Note that a complete media breakdown, detailed in
four tables, is presented on page 30.

Engagement
Engaging the consumer will deepen relationships and create brand loyalty.

Social Media-Facebook
Fact: Forty-five percent of JCP’s target use social media at least once a day; forty-six percent of
Internet users are influenced by online reviews when making purchases. 1
Idea: JCP will sponsor an online “Story Telling Contest” via the existing JCP Facebook page.
Initially, 25,000 women 25-34 who are friends of JCP will be invited to participate in the contest.
The first 500 of these women to “like” the contest will receive a featured article of clothing from the
JCP store. These women will be asked to upload a photograph or video accompanied by a short story
(300 words or less) describing her experience with the item of clothing. The uploaded photo/video
will become the participating women’s profile picture with a JCP “Vote for Me” link, engaging her
friends and family to vote for her, while spreading this contest throughout her friends’ news feeds.
The entrant with the most votes at the end of the month long contest will be featured as the JCP
Facebook profile picture for one week.
Outcome: Five hundred members of the target audience will be directly engaged by the campaign.
More importantly, a larger pool of their friends, many of whom are in the target, will be routed
to the JCP website. These stories will influence other women to make purchases and establish a
relationship with JCP.
Success Measure: The success of this contest will be measured by the number of people who
become new fans, click-throughs to the Facebook fan page or JCP.com and total number of people
who voted.
1. JCP Case Study; http://www.marketingprofs.com/charts/2010/3419/facebook-mobile-tops-100-million-users

Shazam and JCP

Fact: With a hundred million users and over one billion songs identified and approximately
250,000+ purchases a day; Shazam is one of the most popular and increasingly adopted free
applications for smart phones. 2
Idea: Beyond just music, Shazam has the ability to capture dialog and attach it to content. JCP can
reach its tech-savvy females 25-34 by utilizing this technology and communicating with the target
while they watch TV. First, JCP can sponsor the fashion featured on their favorite TV show. Second,
while viewers are watching the show, JCP will feature pop-up content along the bottom of the screen
asking viewers to Shazam the show to access exclusive JCP content or even unseen clips/footage.
Outcome: JCP can link consumers via their mobile device to their JCP WAP site
or directly to the outfits seen on the show. Furthermore, this presents possible
partnership opportunities with shows like “The Bachelor” and “The Bachelorette,”
a show popular among our target audience. This application engages consumers
by providing added value to their media usage and enables JCP to connect and sell
merchandise to the target through their mobile devices.
Success Measure: TAG will evaluate the success of this promotional effort by
monitoring how many viewers “Shazam” the featured content, connect to the WAP
site and view/purchase the clothing featured on the show.
2. http://thenextweb.com/mobile/2011/01/14/shazam-currently-boasts-30-million-total-ios-and-android-users/

Television
Fact: Based on Nielsen AdViews, females 25-34 are heavy TV viewers and index
high for particular networks. Also, JCP and key competitors are heavy television
advertisers. 3
Idea: TAG suggests running thirty second spots on broadcast and cable networks
throughout the campaign period. Also, TAG recommends implementing additional
spots during peak shopping seasons such as the winter holidays and back to school
months. Broadcast networks provide effective coverage of females 25-34 and cable
networks attract highly targetable, diverse and passionate viewers. Broadcast
networks like ABC, NBC and Fox all indexed high in terms of viewership among
females 25-34. Cable networks like Style, E!, WEtv, Bravo, Oxygen and ABC Family
also indexed high among our target. In order to strategically reach the target, JCP
commercials will air on these nine networks. A TV spot is described in storyboard
format on the following two pages. See the table on page 30 for a breakdown of
specific television buys, costs and impressions.
Outcome: Females 25-34 will be exposed to targeted commercials that will be
fun, engaging and relevant. These commercials will enable JCP to emotionally
connection with the target by showcasing stories of real JCP women.
Success Measure: To measure success, TAG will monitor Nielsen reports to
obtain the number of impressions among females 25-34.
3. Nielsen AdViews; MRI; http://tvbythenumbers.zap2it.com/2010/08/03/the-bachelorette-finale-leads-abc-to-
 TV Spot: This 30-second TV spot aims to give the viewer a peek into “life’s little
closet”. The visuals remove the frame of the closet from the usual placement in
a bedroom to the places where fashion becomes a feeling.

1. Scene 1 opens to woman in an open air environment opening up a closet door and
choosing a red JCP sweater. SFX: Silence until woman picks sweater off rack, which signals
a symphony of soft environmental noises and song “How Sweet It Is” begins by
Michael Bublé.

3. Scene 2 opens to close-up of different woman in a vibrant seaside environment. Woman puts on
the same red sweater as the woman in scene 1. SFX: Soundtrack continues; sound of a distant bell
ringing.

5. Scene 3 opens with wide shot of a third woman walking into a subway train through
sliding doors. Shot cuts to close up of her walking across the main hall of the car as the
second set of subway train doors open to reveal another closet with the same red sweater.
2. Long shot reveals the closet is simply a standalone door and rack in a sunny field. Woman
walks over to bike and rides off. SFX: Soundtrack continues.

4. Long shot of woman hopping gleefully into a boat in a harbor wearing sweater. Closet
is standalone on pier. SFX: Laughing, sounds of rocking boats and seagulls; soundtrack
continues.

6. Close up of original subway train doors opening to reveal third woman transformed by
sweater. As she walks out of the car, scene cuts to level camera angle shot of the front of her
red sweater as she leaves the platform into the light of day. JCP.com logo appears centered,
overlayed on moving image, with tagline, “life’s little closet.” Scene ends.
 best-summer-monday-ratings-in-over-10-years/58979

Buzz
Buzz: Capturing the target’s attention in an exciting and unexpected manner

Bus Stop Shelter Takeover

Fact: Bus shelters in high foot traffic locations in the top ten markets have the potential to generate
significant buzz. Bus ridership in these markets is substantial. 4
Idea: To generate buzz around the JCP brand, five bus stop shelters in each of the top ten markets will
be transformed into interactive closets. The interactive closets will contain JCP outfits that women can
sort through, plus mirrors to check their hair and make-up. The closet will consist of three horizontally
scrolling bars, each one devoted to either tops, bottoms or shoes. For example, the consumer could pick
a blouse and see how it fits with different pairs of pants or various skirts. If she finds an outfit she likes,
the consumer will have the option to printout the outfit immediately or send it via her mobile device to
save for a later purchase. The printout will include a coupon as an incentive to shop at JCP.
Outcome: This event will generate buzz among females 25-34 in the top ten markets. Additional buzz
will be stimulated by word-of-mouth and unpaid media coverage.
Success Measure: To measure success, TAG will monitor how many women printout selected
outfits and how many redeem their coupons in a JCP store. Viral and press exposure surrounding the
takeovers will also be measured.

Intera
ctive C
loset -
User I
nterfa
ce

set
nteractive Clo
Bus Stop - I
4. http://www.apta.com/resources/statistics/Documents/FactBook/APTA_2010_Fact_Book.pdf

Online
Fact: JCP’s target audience are high users of online streaming video, social media sites and 39%
regularly access the internet from their mobile phone. 5
Idea: TAG recommends utilizing display ads, rich media and video pre-roll on websites relevant
to females 25-34. Rich media and pre-roll ads have a higher rate of engagement among web users
and therefore are emphasized in the plan. Since 27% of all Facebook users are females 25-34, TAG
recommends reaching these consumers via the Facebook display network. Facebook allows JCP to
target its consumers using attitudinal information. Since a large percentage of the target accesses TV
shows and video online, TAG recommends reaching the target on sites like Hulu.com and YouTube.
com. Based on television research, TAG knows that the target is heavy viewers of shows on ABC, FOX
and NBC. Therefore,TAG recommends advertising on these three networks websites. See the table on
page 30 for a breakdown of specific online buys, costs and impressions.
Outcome: These advertisements will not only increase JCP’s brand awareness, but also drive
customers to the JCP website and connect users to other online media efforts.
Success Measure: All online efforts will be measured in terms of impressions and conversions.
Success will be measured by monitoring click-stream data showing the number of users who click-
through to the JCP landing page and the number who completed a purchase.
5. JCP Case Study; Good AdPlanner; Quantcast

Cohesion
Cohesion will leverage the impact of offline, online, mobile and non-traditional media.

People Magazine, StyleWatch

Fact: Through primary research, TAG found that females 25-34 enjoy seeing clothing displayed
or worn by models and celebrities to generate new ideas about how they might wear the clothes
themselves. 6
Idea: TAG believes that JCP’s current involvement with StyleWatch, which is popular with females
25-34, should be extended. TAG recommends JCP be the sole sponsor of an entire issue of StyleWatch.
“Owning” an entire issue will increase the brand’s reputation and have a significant impact among the
target. This JCP issue will feature JCP ads and style tips. To connect this sponsorship to the in-store
experience, TAG recommends that JCP place StyleWatch signs throughout the store and create a space
in the store with a grouping of all JCP clothes featured in the magazine. Also, QR codes on print ads in
StyleWatch will be used to take the consumer directly to the online store.
Outcome: The shock value of a magazine takeover will generate buzz and increase JCP brand
exposure. The JCP takeover and strategic placement of QR codes will allow readers to directly connect
with JCP apparel and accessories featured in the magazine.
Success Measure: The success of this takeover will be measured by readership of the JCP issue and
QR linked purchases of JCP featured merchandise.
6. SRDS; Primary Research, Mind Map Database

Bus Stop Shelter (page opposite): The JCP Woman is always on the move.
This interactive bus stop shelter gives her the freedom to style herself in an
unexpected location.
 Magazine
Fact: Females 25-34 are heavy readers of magazines. 7
Idea: TAG recommends purchasing full page ads in
magazines such as baby, bridal, parenthood, fashion,
lifestyle, epicurean and health because they index high
among our target audience.TAG has included QR codes on
selected ad placements to take readers from a traditional
experience to a digital one. Readers can access JCP
content sites and make a purchase. These ad placements
will showcase the lives and real stories of JCP women. See
the table on page 30 for a breakdown of specific magazine
buys, costs and impressions.
Outcome: By selecting high circulation magazines that
index high with females 25-34, awareness of JPC will be
expanded. QR codes will create a revenue channel and
also provide analytics for later use in optimization and
planning. This effort will result in creating cohesion
between online and offline efforts.
Success Measure: The number of readers who use
the QR code to access the JCP website and the number
who make an online purchase will be used to measure
success.
7. SRDS; JCP Case Study

Utility
Utility will make it easier and more effective for
females 25-34 to shop JCP.

JCP Mobile App

Fact: Fifty-three percent of females 25-34 who are JCP customers have a smart phone and this
demographic has a significantly higher penetration of smart phones than the general population.
Nielsen forecasts that 50% of all cell phones will be smart phones by the end of 2011. 8
Idea: TAG’s recommends that a new feature be added to JCP’s current app. The addition to the JCP
app would allow females 25-34 to create their own palette of colors, patterns and fabrics using their
smart phones. Using image recognition software, the app will take the colors, patterns and fabrics
the user photographs and create suggested JCP apparel and accessories combinations that reflect her
palette. For example, a woman takes a photo of a sunflower in her garden. The add-on to the JCP app

Print Ad: Every woman has a story. Traditional print executions are designed to
focus on not the clothes themselves, but the emotional ties created while wearing
JCP clothes. Each print is punctuated with the tagline, “life’s little closet.”
will pull merchandise inspired by the color of the sunflower, such as a canary-
colored bracelet, a mustard-colored sun-dress and complimentary colored
beige sandals.
Outcome: The overall goal of the app is to inspire females 25-34 by
allowing them to create combinations of apparel and accessories based on
their own preferences. The app’s unique experience is buzz-worthy and
will provide the target with a source of entertainment and engagement
with the JCP brand.
Success Measure: The success of this app will be measured by how many
females 25-34 use the app and by their purchases that can be linked to the use of
the app.
8. JCP case study; http://twittown.com/mobile/mobile-blog/usa-add-80-million-new-smartphone-users-201

Online Groupon Coupons

Fact: Seventy-seven percent of Groupon’s users are women and 68% are between
the ages of 18-34. Therefore, a high proportion of the targeted females 25-34 are
Groupon users. 10
Idea: TAG recommends incorporating online coupon promotions into JCP’s
media plan using Groupon. These coupons can be targeted precisely to females
25-34 and attract new customers from within the target to JCP. The use of these
coupons can be shared with friends on Facebook and Twitter adding a viral
component to this promotion. In addition, social networking is built into the Groupon
model. Groupon users earn points by encouraging others to participate. JCP’s use of
Groupon would preempt key competitors Macy’s, Kohl’s and Target.
Outcome: By tapping into coupon marketing and social networking, JCP can
attract new customers and provide females 25-34 with a convenient way to shop
and save money.
Success Measure: The success of this promotion will be evaluated by the
number of coupons purchased. In addition to tracking the number of coupons
sold, JCP will also have data on how many females 25-34 that received and
opened the JCP Groupon email.
10. www.grouponworks.com/why-groupon/demographics

Online Pandora Initiative

Fact: Eighty million Pandora users streamed 3.9 billion hours of music in the past
fiscal year. 9
Idea: TAG recommends creating a page takeover on Pandora to showcase the
variety of JCP styles. After logging on to Pandora, only female listeners 25-34 will
immediately be prompted with five different JCP outfits from which to choose. With
each new log-in, the targeted listener will be presented with a randomly generated new
set of five outfits. Based on the style of the chosen outfit, Pandora suggests a playlist that

Mobile App (above right): Inspiration can be found in any of life’s moments.
The addition to the existing JCP Mobile app will allow the user to capture
the things that inspire their look. The app then recommends apparel and
accessories that parallel styles for each woman’s source of inspiration.
aligns with the style preference selected. This type of Pandora takeover has not been used by a retailer.
Hence, JCP would preempt Kohl’s, Macy’s and Target.
Outcome: Using Pandora to create a personalized radio station will set JCP apart from its competitors
and deepen relationships with females 25-34.
Success Measure: The success of this promotion with Pandora will be measured by the number of
unique listeners who interact with the JCP station and by the number of listeners who click through to
the JCP website.
9. JCP Case Study; Pandora Whitepaper

Pandora Takeover (above): The JCP woman is an avid music listener. With this Pandora takeover,
JCP can provide a station for each woman’s style.

Radio
Fact: Females 25-34 index high on multiple traditional radio formats and even higher for streaming
radio and MP3s. 11
Idea: TAG recommends thirty second spots airing strategically throughout the campaign. These spots
will reach listeners in their cars during peak listening times, like morning and evening rush hours. This
medium will serve as yet another way to reach potential consumers and build relationships between JCP
and listeners. See the table on page 30 for a breakdown of specific radio buys, costs and impressions.
Outcome: Increase in brand awareness of JCP by reinforcing the frequency of the overall message.
Success Measure: The success of radio delivery will be measured using Arbitron ratings.
11. JCP Case Study; http://costofradioadvertising.com

In-Store (page opposite): Creating an environment to nuture the relationships between the JCP
Woman and the store is a critical element in TAG’s plan. In store signage will reflect a personal and
yet whimsical look consistent with the entire campaign.
In-Store Recommendations
TAG recommends clarifying and expanding clever signage, the creative use of mannequins and other
aesthetically appealing visual cues to increase ease of navigation within the store for females 25-34.
These recommendations are intended to enhance the shopping experience and leave the targeted
customers feeling more special and valued.

As discussed under TAG’s primary research, two archetypes were identified: “burden” and “escape”
shoppers. Both burden and escape shoppers have similar, and clearly defined, expectations in a retail
environment. Because they are often looking for a specific item in a short amount of time, burden
shoppers desire organization and ease while searching for merchandise. In addition, burden shoppers
rely heavily on visual cues such as mannequins and displays for fashion inspiration. They also look
for clearly legible signs for navigation and seek customer service only when needed. Similarly, escape
shoppers seek this same type of environment, but for different reasons. For the escape shopper,
shopping is also a time to relax and self-indulge.

To satisfy both shopping types, TAG recommends JCP display all apparel merchandise for the target
with better organization and clearer differentiation between styles, designers and age-appropriate
categories. To accomplish this, TAG recommends updated signage, mannequins and visual cues to
appeal to the target’s contemporary aesthetic. Further, TAG suggests using lighting and the addition of
more mirrors to create a more pleasant ambiance. Finally, merchandise featured on mannequins should
be available within close proximity to each display.

Burd
en Sh
oppe
r

er
Escape Shopp
Partnerships
TAG recommends three new JCP partnerships. TAG’s suggested partnerships will improve the
current targeted shoppers’ perception of JCP and attract new potential customers by increasing
JCP’s fashion perception and expanding overall awareness.

In-Store Café’s – Seattle’s Best Coffee

Sipping on a latte while searching for the perfect little black dress and laughing with
girlfriends are the small details that can turn a day of simply shopping into a day of memories.
It’s a story that practically writes itself and research supports this insight. Based on primary
and secondary research, it is clear that providing the target with an easy refreshment option
would enhance their overall shopping experience. This is especially true in JCP’s 316 stand-
alone stores. To address this opportunity TAG recommends a partnership with Seattle’s Best
Coffee (SBC).

As stressed in a recent article in QSR, a top industry trade publication, SBC has been steadily growing,
gaining new distribution points and attracting an increasing customer base since 2009.1 SBC’s business
strategy and the quality of its products make it a great potential partner for JCP. A partnership with JCP
would also help SBC reach its distribution goals, making the partnership a mutually beneficial relationship.

TAG has received a favorable response from Christine King, Marketing Manager at SBC, to establishing
such a partnership.2 Upon successful completion of a three-month test in three markets, TAG recommends
rolling out 1,000 square-foot SBC café stores inside JCP 316 stand-alone stores.

Entertainment Partnership – Carrie Underwood

Current JCP customers favor inspirational and Christian music while females 25-34 prefer Pop
and Top 40 hits. Carrie Underwood appeals to both markets with her single “Jesus Take the
Wheel” peaking at No. 4 on Billboard Christian Songs and “Before He Cheats” peaking at No. 8
on the Billboard Top 100.3 Carrie Underwood, 27, has modern style, a warm small-town charm
and the inspirational story of achieving stardom after winning American Idol. Carrie Underwood
has the ability to connect with and inspire women by partnering with JCP while on tour and while
participating in JCP philanthropy events.

Carrie Underwood will be used to promote and encourage the success of JCP’s philanthropic
partners.4 Most significantly, this partnership will include selling Carrie Underwood’s CD’s at
the checkout counters and money earned from CD sales will be directly distributed to the four primary
philanthropic organizations supported by JCP.

In addition to supporting JCP philanthropy efforts, a partnership with Carrie Underwood will create a positive
association between the artist’s fans and JCP. Utilizing JCP/MNG mobile pop-up stores outside of Carrie
Underwood concerts during the campaign, fans will create a positive connection with both the artist and the
MNG line. Pairing Carrie Underwood, a young, stylish and relatable celebrity, with the fast- fashion trends of
MNG will further promote the trending styles of JCP and improve the store’s overall fashion perception.

1
QSR Magazine Online; accessed March 9, 2011: SBC data; http://www.qsrmagazine.com/news/seattle-s-best- takes-skies
2
Telephone conversation with Christine King, SBC, March 9, 2011; Confirmation email, March 11, 2011
3
Data, MRI Spring 2010; February 23, 2011
4
TAG’s negotiations with Jessica Schmidt, Carrie Underwood’s agent, are ongoing and favorable. However, endorsement of TAG’s proposed
partnership was pending at plans book press time.
Glamour.com/Young & Posh Blogger Network
Glamour.com brings fashion to life with its new, chic blogger network, Young & Posh (Y&P). Y&P’s
network launched in February 2011 and encompasses eighteen different style gurus from around the
globe including Milan, Paris, The Netherlands, London, New York City, Dallas and Los Angeles. Eric
Wilson of The New York Times stresses that fashion blogs have made remarkable strides in gaining
both readership and higher profiles.4 By becoming a part of Y&P’s growing network, JCP will become an
integral part of honest conversations that appeal to the style of everyday women.

Glamour.com receives three million impressions per month and is expanding overall readership by
promoting the Y&P network.5 Thus, this partnership will increase JCP awareness among the rapidly
growing segment of the target that actively engages with fashion websites and blogs. JCP clothes and
style tips will be incorporated into a different blog each month. Bloggers will wear and style JCP clothes
on their personal pages that will correspond to potential in-store appearances.

TAG has received a favorable response from Jenny Bowman, Creative Services Director at Glamour,
concerning exploring the possibility of this partnership.6 We recommend this partnership be
implemented throughout the campaign.

No New Apparel Partnerships

JCP’s partnerships with Mango, Aldo and Liz Claiborne 7 positions JCP on the edge of fast-fashion
trends and strengthens its overall fashion perception. Adding other apparel lines would clutter and
detract from these three signature brands. Utilizing MNG as an anchor brand will draw our target
audience into the unique store-in-store experience. Furthermore, the addition of the Call It Spring
line by Aldo allows JCP to offer our target consumer the spectrum of items she most often purchases
for herself. The immense selection of footwear and handbags offered by Call It Spring, along with the
apparel choices offered by MNG and Liz Claiborne, will substantially enhance the value perception of
JCP in the minds of targeted shoppers.

TAG’s mind map primary research indicates that women in our target do not take an interest in
celebrity clothing lines, and so, adding another new line to JCP would be unnecessary, confusing
and ineffective. Further, the target is not swayed by clothing lines designed by high-end fashion
designers. Females 25-34 do not place as much emphasis on brand name as they do on value perception
and quality. Therefore, TAG does not recommend a new apparel partnership; rather, we suggest
emphasizing the recently obtained partnerships that have vast potential to step-up JCP’s overall style
and value perception.  

4
Wilson, Eric. “Bloggers Crash Fashion’s Front Row.” The New York Times. 24 Dec. 2009. Web. 08 Mar. 2011. <http://www.nytimes.
com/2009/12/27/fashion/27BLOGGERS.html>.
5
Email conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011.
6
Conversation with Jenny Bowman, Executive Creative Services Director at Glamour, on March 14, 2011.
7
Liz Claiborne helped lift JCP profit 36% in fourth-­quarter 2011; MNG soon to follow: D’Innocenzio, Anne. “Liz Claiborne Helps Lift J.C.
Penney Profit 36% - USATODAY.com.” USA Today. 25 Feb. 2011. Web. 15 Mar. 2011. <http://www.usatoday.com/money/companies/
earnings/2011-02-25-jcpenney_N.htm>.
Community Relations
TAG’s community relations objective is to increase the target’s awareness of JCP’s role in aiding its
four primary philanthropies: Boys & Girls Clubs of America, YMCA of the USA, National 4-H and
FIRST. To accomplish this, TAG proposes three recommendations, which are described below.

Personalizing Local Charitable Donations

TAG recommends that JCP make it easier for shoppers to visualize the impact of JCP’s donations
to its four primary charities. This will be accomplished by expressing JCP’s donations at the local
community level and in human terms. This will help to give the target audience a more concrete idea
of how powerful JCP’s donations are at their community level.

Rather than stating that JCP donated $4.7 million to after school programs in 2009, TAG
recommends expressing the appropriate amount in terms of its impact on each local community. For
example, “the Round-Up efforts provided x,000 children in Austin, Texas with a safe, educationally
rich after school program in 2009.” Such points would be communicated using in-store signage or via
JCP.com.

Boston College Center for Corporate Citizenship (BCCCC)

TAG recommends that JCP enter BCCCC’s Film Festival highlighting corporate engagement in local
communities. This will allow JCP to promote its efforts to better communities across the nation. The
BCCCC program has widespread coverage with links to the films accessible through Facebook and
Twitter. Past participants include FedEx, PriceWaterhouseCoopers, Coca-Cola, Microsoft, AT&T and
AllState.

Athletic Gear Donations

Because JCP focuses heavily on supporting the YMCA and the Boys & Girls Clubs, this creates a
unique opportunity for JCP to emphasize in-kind donations of athletic gear during the 2010 Summer
Olympics. TAG recommends JCP make in-kind donations supporting summer athletic programs
operated by the YMCA and the Boys & Girls Clubs. This activity will be communicated to targeted
shoppers through in-store signage and via JCP.com.

“I deserve high quality, without the high quality price, unlike Macy’s.”
- Lauren Timm, Age 26
As described in presenting the media alternatives, TAG recommends the use of conversion
metrics and end-goals to track the success of the campaign. Specifically,TAG will measure
in-store and online traffic and sales, online behavior, social media audiences, email
memberships, and attitudinal measures of the campaign’s effects.

Attitudinal data on the campaign’s effectiveness will be collected before, during and after
the completion of the campaign. These data will be gathered and analyzed by a professional
research firm, this effort is budgeted at $350,000.

In order to build the strongest and most successful campaign, TAG’s media team has
incorporated testing, measuring, optimizing, and repeating. Continuously monitoring and
adjusting the media plan will help to optimize the plan’s impact and maximize JCP’s return
on ad spend.

Note that advertising and other IBP programs have a cumulative and delayed or carry-
over effect for retail stores, and the full impact of the creative and media exposures will
extend beyond the campaign’s one-year life. The benefits of this carry-over effect will not be
measured.
 FEB MAR APR MAY
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

:30 spots
Television
Bachelor/Bachelorette Sponsorship
National Magazine
Print
People StyleWatch Takeover
Pandora Page Takeover
Radio Pandora Radio Spots
:30 spots (traditional)
Online Display
JCP App
Mobile
Shazam
Outdoor Bus Stop Shelter Takeovers
Facebook, Twitter
Social Media Blog - Young and Posh
Social Couponing - Groupon
Sponsorship Carrie Underwood Sponsorship
Contingency

Cost % of Budget TRPs/IMPs

:30 spots $49,825,000 50% 8,089,800,000
Television
Bachelor/Bachelorette Sponsorship $4,500,000 5% 11,500,000
National Magazine $17,449,652 17% 200,193,927
Print
People StyleWatch Takeover $2,000,000 2% 3,750,548
Pandora Page Takeover $2,000,000 2% 100,000,000
Radio Pandora Radio Spots $2,200,000 2% 550,000,000
:30 spots (traditional) $2,602,720 3% 282,380,800
Online Display $6,559,500 7% 101,000,000
JCP App $0 0% 76,000
Mobile
Shazam $2,000,000 2% 4,000,000
Outdoor Bus Stop Shelter Takeovers $4,500,000 5% 2,250,000
Facebook, Twitter $0 0% 1,604,000
Social Media Blog - Young and Posh $0 0% 684,000
Social Couponing - Groupon $2,000,000 2% 450,000
Sponsorship Carrie Underwood Sponsorship $500,000 <1% 10,000,000
Contingency $3,863,128 4% -
Total $100,000,000 9,357,689,275
1. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf
2. AdAge TV Price Survey, http://adage.com/images/random/0907/2007_Ad_Age_TV_Price_Survey.pdf
3. SRDS Consumer Magazine Consumption 2010
4. In a New Yorker First, Target to be Sole Advertiser, http://www.nytimes.com/2005/08/12/business/media/12adco.html
5. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mm-
and-do-125mm-in-2010/
6. Teardown: Pandora will Double Users, http://worldaccordingtocarp.wordpress.com/2010/06/26/teardown-pandora-will-double-users-from-50mm-to-100mm-
and-do-125mm-in-2010/
7. Average Radio Cost by Market, http://costofradioadvertising.com/
8. Digital Media Pricing Models by Pricing Method, http://cfpnyc.com/digital-media-advertising-models-by-pricing-method.html#more-174
9. Clear Channel Outdoor Assets, http://www.clearchanneloutdoor.com/assets/downloads/media-planning-guide/2010-11-eyeson-rates.pdf
 JUN JUL AUG SEP OCT NOV DEC JAN
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

<1%
2%
4%
2%
Budget Appropriations by Medium 5%

7%
Television Outdoor

Print Social Media 5%

53%
Radio Events

21%
Online Contingency

Mobile
Online Television
Monthly Purchased Network (Index) Cost Per Spot Average Imps Frequency Total Imps Total Cost
Website CPM Cost
Reach Imps ABC $150,000 4,000,000 50 200,000,000 $7,500,000
Display NBC $130,000 1,500,000 50 75,000,000 $6,500,000
Facebook 18,000,000 15,000,000 0.75 $11,250.00 FOX $135,000 4,500,000 45 202,500,000 $6,075,000
Blogspot 160,000 10,000,000 0.75 $7,500.00 Style (209) $45,000 50,000 50 2,500,000 $2,250,000
msn.com 150,000 8,000,000 0.75 $6,000.00 E! (174) $80,000 1,200,000 75 90,000,000 $6,000,000
ebay.com 150,000 4,000,000 0.75 $3,000.00 WE tv (167) $45,000 400,000 65 26,000,000 $2,925,000
diaperswappers.com 3,300 1,000,000 0.75 $750.00 Bravo (150) $75,000 900,000 100 90,000,000 $7,500,000
mycharmingkids.net 2,700 750,000 0.75 $562.50 Oxygen (148) $55,000 500,000 65 32,500,000 $3,575,000
favoriteideas.com 2,000 750,000 0.75 $562.50 ABC Family (137) $75,000 433,000 100 43,300,000 $7,500,000
Monthly Total $29,625.00 Total 13,483,000 600 8,089,800,000 $49,825,000
Yearly Total $355,500.00
Print
Rich Media
Full Page 4C
youtube.com 240,000 10,000,000 6.00 $60,000.00 Category Magazine Circulation Total Impressions Frequency Total Cost
Price/Issue
weather.com 100,000 7,000,000 6.00 $42,000.00
Baby American Baby 2,002,940 24,035,280 $450,000 Monthly $5,400,000
netflix.com 84,000 5,000,000 6.00 $30,000.00
Bridal Modern Bride 331,049 1,986,294 $62,532 Bi-Monthly $375,192
Amazon 240,000 2,500,000 6.00 $15,000.00
Parenthood Parenting 2,176,843 23,945,273 $136,020 11x a year $1,496,220
Monthly Total $147,000.00
Family Circle 3,953,651 47,443,812 $220,000 Monthly $2,640,000
Yearly Total $1,764,000.00
Fashion Elle 1,060,634 12,727,608 $116,145 Monthly $1,393,740
Pre-roll Redbook 2,350,000 28,200,000 $103,400 Monthly $1,240,800
Hulu.com 3,400,000 15,000,000 10 $150,000.00 Lifestyle People 3,750,548 45,006,576 $241,975 Monthly $2,903,700
ABC.com 466,900 10,000,000 10 $100,000.00 whole issue Whole mag $2,000,000
NBC.com 1,300,000 7,000,000 10 $70,000.00 Epicurean Cooking Light 1,716,636 10,299,816 $94,600 Bi-Monthly $567,600
Fox.com 29,043 5,000,000 10 $50,000.00 Health Health 1,356,227 10,299,816 $89,000 Bi-Monthly $534,000
Monthly Total $370,000.00 Total 203,944,475 $17,449,652
Yearly Total $4,440,000.00 *All circulations and pricing was gathered from the 2010 SRDS Magazine Consumption book.
Complete Total 101,000,000 $6,559,500.00
Radio
Pandora
Cost (CPM) Impressions Total Cost
Page Takeover $20 100,000,000 $2,000,000
Audio Spot $4 550,000,000 $2,200,000
Total 650,000,000 $4,200,000
Terrestrial
Markets Spots/Week Cost /Week Frequency Total Costs Imps/Week Total Imps
(Weeks)
New York 50 $70,250 16 $1,124,000 5,197,300 83,156,800
Los Angeles 50 $44,950 16 $719,200 4,027,200 64,435,200
Chicago 50 $18,100 16 $289,600 1,868,000 29,888,000
Houston 40 $10,560 20 $211,200 2,152,700 43,054,000
Phoenix 40 $6,720 20 $134,400 1,155,600 23,112,000
Philadelphia 35 $3,080 12 $36,960 1,471,300 17,655,600
Dallas 35 $7,280 12 $87,360 1,756,600 21,079,200
Total 300 $2,602,720 282,380,800
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Letter of Agreement Between JCPenney and the Texas Advertising Group

The Texas Advertising Group (TAG) will provide advertising agency services for JCPenney (JCP)
until this agreement is cancelled by either party with 90-days notice. TAG’s services include strategic
recommendations that focus on developing and implementing a targeted and impactful integrated
marking communication plan designed to support and build the JCP brand.

Compensation to TAG will be derived from a fee system coupled with a bonus or incentive fee system.
Both aspects of this plan are explained below.

Fee System
(1) TAG will be paid based on billable hours for the work it does, not by how much JCP spends; (2)
TAG does not mark-up outside costs incurred on the client’s behalf. All expenses, such as production
charges, travel, copies, etc. will be billed at net to the client; and (3) TAG’s hourly billing rate is the
employee’s base salary multiplied by a factor to cover overhead costs (120%). A profit percentage (20%)
is then added and the sum of these three items represents the costs billed to JCP.

Base salaries for TAG’s employees are set yearly using regional industry averages, which are compiled
by the AAAA. TAG uses the average regional salary for each job title by department for agencies with
gross income between $3.75 million and $7.5 million.

Bonus System
The bonus system has two distinct benefits to JCP: (1) The bonus will be used to reward the agency
based on their contribution to achieving JCP’s brand health and incidence of consumption objectives;
and, (2) allocation of the bonus will be solely at JCP’s discretion, based on JCP’s evaluation of TAG’s
performance against the measurable objectives specified in the marketing objectives section of TAG’s
plans book.

The total amount of the bonus fund equals one-half TAG’s anticipated profit or ten percent (10%) of the
total salary plus overhead costs that TAG will contribute to the fund. In addition, JCP will match TAG’s
allocation and that total will comprise the bonus fund. After an annual review of performance, JCP
determines what portion, if any, of the fund will be paid to TAG as a bonus.

Note that TAG trusts JCP to grade our efforts fairly and award an equitable bonus. TAG believes
in accountability and welcomes the challenges of leaving a portion of our compensation tied to
performance. The TAG team assigned to the JCP account is aware of this arrangement and both
welcome the challenge and expects to share in the rewards. This arrangement helps to build team focus
and commitment.

_________________________________ _________________________________

On behalf of JCPenney On behalf of the Texas Advertising Group

Date: __________________ Date: April 14, 2011
 Deepa Iyengar
or Dustin O’Neal Laci Mosier
Julia Meter
O’Conn
Lillian
An Art Director, An Account Planner, A Copywriter and mild
Deepa explored the A Media Planner, Julia
This Art Director’s mannequins wouldn’t shopaholic, she spots
target’s whims and is passionate about
style is her canvas from dare wear one of his bargains and blogs
interpreted their solving media puzzles
head-to-toe. bold ensembles. about them later.
accessories to tell and never leaves a store
their stories. without a new pair of
shoes.

ehta
Amar M Michelle Trou
tt Michael McAfee
Dr. John Murphy
Tanya Assar

Meredith Raico dy‘

Jonny Howle Erin Lan
Megan Rid
gway Elaine Hirsch
cIntosh
Simcha M

Sabra Thomas
Anjali Patel
Sonal Modi Christine Risdale Megan McGee

Anthony Hoang

fey Nichole Palmietto

Kimberly Sher
inkard
Amber P Rochelle Prins
Manuel Hernandez
plus SM