jcp Rebranding: Brand Management
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This document provides an overview of JCPenney's brand audit and strategies. It begins with an agenda and company overview. It then analyzes JCPenney's strengths, weaknesses, opportunities, and threats through a SWOT analysis. Competitors are identified and target markets are outlined. Effective and ineffective past brand works are examined. JCPenney's goal of becoming the "Great store experience" is stated. Brand building tactics around elements, marketing mix, communications, and partnerships are proposed. The document concludes with suggestions for qualitative and quantitative brand measurement.
jcp Rebranding: Brand Management
- 1. Strategic Brand Management Professor Rodrigo Espinosa GGU Fall 2012 Anh Tran (Anh) Chantrapa Khuhaprema (DeeDee) Piyanuch Kangwankijwanich (Tu) Supinya Simanuruk (Gift)
- 2. Agenda Brand Audit • Company overview & Marketing mix • SWOT analysis • Competitors • Target markets • Brand Equity – Effective works: JCP’s statement, Good partnership, Brand elements – Ineffective works: Brand extension, Brand awareness, Brand image, Brand positioning JCP’s Goal and Strategies “Great store experience” Brand Building Tactics • Choosing brand element • Designing marketing mix • Integrating marketing communications • Leveraging secondary brand association Brand measurement Qualitative and Quantitative research
- 3. BRAND AUDIT
- 4. Company Overview & Marketing Mix Found in 1902, Wyoming, by James Cash Penny One of the largest retail stores chain in the U.S. Current CEO, Ron Johnson Product: apparel, home furnishings, fine jewelry, footwear, accessories, beauty Services: salon, optician, wedding Price: Fair & Square pricing strategy 3 types: Everyday, Month-long, & Best Friday Place • Extensive network of physical stores • Online store & catalog order Promotion Advertising (TV, Radio, Print, Online), Sell promotions (free service), Direct marketing (Catalog), Internet (website, social media) Sources: jcp.com, http://myuberlife.com
- 5. SWOT Analysis Strengths • • • • Weaknesses • Strong established store network Primarily in mall and large traffic Lower price point, Quality products Exclusive brand partnerships Less staffs Opportunities Threats • Rising of consumers purchasing private brands • Increasing Internet shoppers • Building bond with customers • High competition • U.S. economic downturn • Lack of consumer confidence in brand value, style, quality
- 6. Competitors Kohl’s is a reliable bargain source for the entire family with choices for all ages. “Expect more. Pay less.” “Macy’s makes the top designer “Target is the place for the budget brands accessible for everyone” and quality conscious shopper” Source: Mergentonline
- 7. Target Markets Housewives who - are family-oriented - want convenience, one stop shop - are price sensitive Young adults who - are hip and fashion-conscious - are occasional shoppers Single Mom who -is practical and loyal shopper -is family-oriented -is budget-conscious
- 9. Brand Equity JCP’s statement: “American favorite store” • By making the store appeal in ways outside of simply showcasing the merchandise in the store They want customers to feel good about going to a JCP store; they want it to be their favorite experience
- 10. Brand Equity Good partnership e.g. Sephora • Increase interest and awareness both JCP and Sephora – Enable to compete with Macy’s “Impulse Beauty” e.g. Dior, Laura Mercier • Open the door for more prestigious temporary partnerships. Source: http://library.ndsu.edu/tools/dspace/load/?file=/repository/bitstream/handle/10365/19627/Alisha%20Liane%20Ostlund.pdf?sequence=1
- 11. Brand Equity Brand Elements Brand name: Change from J.C. Penney to JCP Penny represents the thoughts of “thriftiness” or “bargain-hunting” Logo design: Emphasis on “Fair and Square” pricing The logo is new sentiment value, “less-confusing-easier-to-understand” Color: the America flag (red, blue, white) Due to rich heritage, JCP reinforces a position of traditional American retailer Source: http://myuberlife.com
- 13. Brand Equity Brand Extension: JCP Apparels • • • • Exclusive brand dedicated to high-quality fashion basic. Everyday low priced Easy to mix and match the outfit with simple color JCP had arranged the shop by color, so easy to mix and match selections in that color. However “Their quality levels are no better than those at WalMart, and below that of Target” “I don’t personally like the new pricing strategy or layout, and the quality of the clothing has deteriorated.” JCP want to compete with either good price with low quality.. Or good quality with reasonable price?
- 14. Brand Equity Brand Awareness: Know but dislike • Brand Recognition Consumers realize the new brand name and logo However • Brand Recall Due to unfulfilled needs, JCP has no place in consumer’s considerations “JCP is still not my brand” “I found no good reasons to shop there” “I prefer Macy’s or Bloomingdale to JCP because of the varieties” “Think brand names, go NordStorm, Neiman Marcus, or Sax Fifth” JCP wanna be Mass merchandisers like Kmart or upscale department stores like Macy’s, Bloomingdales’s, Nordstrom? Sources: http://www.reuters.com, http://www.businessinsider.com, www.slideshare.net, http://www.cleveland.com
- 15. Brand Equity Brand Image • Brand Personality – New logo: fresh, iconic and evocative – Fair & Square = honest & simple • Brand Positioning & Value – America's shopping destination for discovering great styles at compelling prices – American favorite store However •JCP’s performances do not reach its claims •Consumers go to other stores because they confuse with the new pricing •JCP’s sales is continually dropping Source: http://www.identityworks.com/reviews/2012/JCPenney.htm
- 16. Brand Equity Brand Positioning Share value drop
- 18. Business Goal Change JCP image in consumer’s perception from old and confusion to American’s favorite store
- 19. Brand Strategy Pricing focus Great store experience • Free deals satisfy customers in short-term, no long-term profits Also, it can be easily disappointed for customers when they have to wait in line or being unhappy with the haircut “Can JCP really sell in high volume to make profits like Walmart?” • Everyday-low-price is weaker than great “Deal” “Since I can go to JCP whenever I want, what’s my incentive to go there now?” “Why should I go to JCP on X’mas when every mall also has SALE?” Sources: http://www.businessinsider.com/, http://www.cleveland.com,
- 20. BRAND TACTICS
- 21. Brand Tactics Choosing Brand Elements Go on with the new name, logo, and tagline JCP as well as Fair and Square is memorable, meaningful, and likable However Must be consistency • Use jcpenney.com for the transition stage, emphasize jcp.com in the future • Change the store logo and interior decoration only some branches Current URL and company’ s name
- 22. Brand Tactics Designing Marketing Mix Product: “Value Added product and services” • Increase products and services both in breadth and depth • Offers products in nice packages Price: “Price should end with 0 instead of 99” • Remove Everyday-Low-Price because it provides skim profits • Cancel Month-long-Value because 12 sale events are like Everyday-Low-Price • Terminate Best-Price-Friday because too-often sale doesn’t motivate shopper Source: http://myuberlife.com
- 23. Brand Tactics Designing Marketing Mix Place: In-store experience • • • • Encourage shoppers to shop longer Great customer services: return policy, friendly & helpful staffs Beyond expected services: salon, restaurants, theatres, playgrounds Comfortable atmosphere: well-organize products, soft waiting seats, cozy lighting Outstanding decoration: colorful Return policy advertising JCP’s salon
- 24. Brand Tactics Designing Marketing Mix Place: Online store experience • • • • • User-friendly & one-stop service website Rearrange value chain system by focus more on e-commerce and mobile app Free shipping with minimum purchase Free return within 30 days both online and in-store (exchange or refund in credit) Update website often Engage with customers via social media
- 25. Brand Tactics Integrated Marketing Communication Advertising • mass media targeting moms and housewives TV + Sponsorship: Ellen show Radio + Online: Pandora, Spotify Advertorial: Parenting, Better Homes, Tastes of homes, Woman’s day, etc Banners + Sponsorship: mom bloggers Public Relations • Send press release about repositioning and rebranding stories • Build relationship with media through open house method • Create articles about sponsorship & cause marketing to improve brand image - Part of JCP’s profits will be distributed to organizations
- 26. Brand Tactics Integrated Marketing Communication Sale promotions • Pull Strategies: No more clearance, focus on unique service • Go on with current great campaign e.g. “Free haircut on Sunday” • Push Strategies: Cooperate with partner by focusing on “Win-Win situation” • Go on with “Partnership strategies” e.g. Sephora Direct marketing: • Change from monthly catalog to seasonal catalog • Implement SMS & email marketing
- 27. Brand Tactics Leveraging secondary brand association • Partnership well-known brands such as MNG, Levi’s, Liz Claiborne, Izod, Sephora, Martha stewart, etc. • Spokesperson Ellen DeGeneres, a nationwide popular talk show host New CEO , Ron Johnson, could PR himself
- 29. Brand Measurement Brand Equity Measurement Qualitative research • Post-event Follow Up: Ask presses & bloggers about their shopping experiences • Monitor publicity: Press clippings news about JCP Take down quotes and use as a blueprint to develop business Quantitative research • Online Customer’s satisfaction Survey (for memberships) JCP may provide incentives to stimulate customer’s participations by offering discounts or gift vouchers for the next purchase • Receipt survey (for non-memberships to get new customer’s database) Log in to JCP’s website, put code from receipts, and do the survey Customers will get discounts or gift vouchers for the next purchase
- 30. THANK YOU
Editor's Notes
- #7: Customers feel they can reach their goals: Macy’s makes the top designer brands accessible for everyone. Kohl’s is a reliable bargain source for the entire family with choices for all ages. Target is the place for the budget and quality conscious shopper.
- #8: Average Target Customer: 25-31 years old woman.
- #24: More customer service: phone & e-mail answering representatives More expected service: clothes/shoe/bag/jewelry repair More comfortable atmosphere: clean and sufficient restrooms and parking lots, smell good
- #25: Social media Tweet and ask for retweet. Participants will get limited premiums Mix & match clothes and post on Pinterest. Top 10 works will be publiched in the catalog
- #26: Pure Advertising: TVC: E!, Tonight Show, Master chef, etc Magazine: People, US Weekly, OK!, Cosmopolitan, Marie Claire, Instyle, etc Online: Google Adwords/Adsense/Admob Example of cause marketing Customers can select types of membership card and sales of that card will be donated to the charity
- #27: Personal Selling to support sale promotion Present and promote JCP store Help customers to create a “homey” video Encourage customers to register for free membership