jcp rebranding: brand management
Post on 17-Jan-2015
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Strategic Brand Management
Professor Rodrigo Espinosa GGU Fall 2012
Anh Tran (Anh)Chantrapa Khuhaprema (DeeDee)Piyanuch Kangwankijwanich (Tu)Supinya Simanuruk (Gift)
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
Agenda
BRAND AUDIT
Found in 1902, Wyoming, by James Cash PennyOne of the largest retail stores chain in the U.S.Current CEO, Ron Johnson
Product: apparel, home furnishings, fine jewelry, footwear, accessories, beautyServices: salon, optician, wedding
Price: Fair & Square pricing strategy3 types: Everyday, Month-long, & Best Friday
Place• Extensive network of physical stores• Online store & catalog order
PromotionAdvertising (TV, Radio, Print, Online), Sell promotions (free service), Direct marketing (Catalog), Internet (website, social media)
Company Overview & Marketing Mix
Sources: jcp.com, http://myuberlife.com
Strengths• Strong established store network• Primarily in mall and large traffic• Lower price point, Quality products• Exclusive brand partnerships
SWOT Analysis
Weaknesses• Less staffs
Opportunities• Rising of consumers purchasing private brands• Increasing Internet shoppers• Building bond with customers
Threats• High competition• U.S. economic downturn• Lack of consumer confidence in brand value, style, quality
Kohl’s is a reliable bargain source
for the entire family with choices for
all ages.
Competitors
Source: Mergentonline
“Macy’s makes the top designer
brands accessible for everyone”
“Expect more. Pay less.”
“Target is the place for the budget
and quality conscious shopper”
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
BRAND AUDIT: EFFECTIVE WORKS
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
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
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
BRAND AUDIT: INEFFECTIVE WORKS
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?
Brand Equity
Brand Awareness: Know but dislike
Sources: http://www.reuters.com, http://www.businessinsider.com, www.slideshare.net, http://www.cleveland.com
• Brand RecognitionConsumers realize the new brand name and logo
However
• Brand RecallDue 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 orupscale department stores like Macy’s, Bloomingdales’s, Nordstrom?
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
•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
However
Source: http://www.identityworks.com/reviews/2012/JCPenney.htm
Brand Equity
Brand Positioning
Share value drop
BUSINESS GOAL&BRAND STRATEGY
Change JCP image in consumer’s perception from old and confusion to American’s favorite store
Business Goal
Brand Strategy
Pricing focus Great store experience
Sources: http://www.businessinsider.com/, http://www.cleveland.com,
• 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?”
BRAND TACTICS
Brand Tactics
Choosing Brand Elements
Go on with the new name, logo, and taglineJCP 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 andcompany’ s name
Brand Tactics
Designing Marketing Mix
Source: http://myuberlife.com
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
Brand Tactics
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
Designing Marketing Mix
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
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
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
Brand Tactics
Leveraging secondary brand association
• Partnershipwell-known brands such as MNG, Levi’s, Liz Claiborne, Izod, Sephora, Martha stewart, etc.
• SpokespersonEllen DeGeneres, a nationwide popular talk show host New CEO , Ron Johnson, could PR himself
BRAND MEASUREMENT
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 surveyCustomers will get discounts or gift vouchers for the next purchase
THANK YOU
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