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In the retail category alone, the landscape is cluttered with brands, advertisements, other messages and images that are now so similar it's becoming difficult to tell them apart.

This media overload is giving the customer unprecedented choice. But instead of being empowered by all this choice, they actually find themselves overwhelmed, confused, even paralyzed.

And the situation is worse for JCPenney, as their very best customers aren’t even choosing to shop at this store first.

We propose an entirely different way to speak to JCPenney’s target audience and sell them products. A unique message, look, and merchandising method that will rise above the noise, clutter, and sameness.

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Simplify

Table of Contents4. Objectives5. Opportunities6. Research12. Strategy14. Creative

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The $100,000,000 ChallengeWithin a highly competitive retail environment JCPenney faces many challenges affecting their share of customers, wallet and perception of the shopping experience. The current situation shows us that JCPenney indexes below average for the female 25-34 age group. This is especially evident when compared to other department stores and mass discounters including Kohl’s, Macy’s, and Target. Specialty stores also index extremely high in this age category, creating even greater competition for JCPenney.

JCPenney has given us a $100 million budget to accomplish the following objectives:

• Acquire female customers ages 25-34

• Retain female customers ages 25-34

• Increase shopping frequency and grow share of wallet among current female customers ages 25-34

How are we going to do this?

By leveraging current shoppers and converting new customers.

The $300,000,000 OpportunityThe retail environment is extremely cluttered. In a sea of sameness between products, brands, and advertisements, little stands out. But even so, we’ve identified two distinct opportunities for JCPenney:

First, to position JCPenney as the simple and easy to navigate alternative to shopping at the mall or shopping center.

Second, to leverage the additional 10 million plus females 25-34 who currently shop at JCPenney, but

aren’t choosing them as their first stop. By getting them to shop at JCPenney first, we can increase share of wallet.

Because this segment is entering important life stages that will require them to purchase products that JCPenney offers, it is important that JCPenney get their fair share of this segment.

Based upon the increases projected for this initiative, JCPenney’s sales will grow by $300,000,000 during year one and at a rate diminishing by half over three years. The projection assumes JCPenney’s growth is at the expense of Kohl’s and Target equally.

The Objective

Shopping segments and projections based on our primary research. See pp. 6 & 10 for more details.

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Looking at Attitudes and BehaviorPhase IWe started by taking an all encompassing approach to doing our research. We scoured 75+ industry sources and performed 34 brand audits on our closest competitors as well as other brands our target prefers.

Phase IIWe wanted to understand our target’s shopping behaviors and preferences, so we performed 245 one-on-one mall intercepts. We approached women in the

target market and began asking them a series of 20 questions.

Phase IIIBased on our initial findings we then developed a 28-question survey. We launched it using GMI’s interactive, flash based online questionnaire. The questions were engaging and kept the respondents involved. Our questions were designed to get a better sense of why some women ages 25-34 shop at JCPenney and some do not.

65% of the nationally representative sample of females 25-34 indicate they are JCPenney shoppers.

This nationally representative sample reflects a 95% confidence interval and a standard deviation of +/- 3.

A Better Process Means Better ResultsThis highly interactive tool allowed us to account for uncontrollable skews in the research, making the sample more reliable. The software automatically drops any respondents who go through the survey too quickly or appear to be just going through the motions.

The survey was launched to 56,972 participants from all 50 states, and the District of Columbia. Once we got the raw data, we refined it using 26 cross tabs. The results? 184 pages of new, primary data revealing many important insights into the target market.

Our interactive survey asked participants to select words that resonated with their lifestyle and values.

Click and drag rating scales were implemented to obtain ratings based on individual experiences in key stores.

This perceptual map allowed participants to position JCPenney and their top competition in a way that was easy to compare. We looked at their feelings as to whether they thought the store was comfortable or exciting.

This question was used to obtain information on where our target primarily shops for specific product categories. Answers were identified when the respondent dragged and dropped the product category into a store’s shopping cart.

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Cluttered LandscapeAdd this to the endangered list, {blank spaces}According to The New York Times, marketers are determined to fill every last one, bombarding consumers with over 5,000 media messages daily.

With nothing breaking through the clutter, messages become blurred, leaving us confused on where and how to shop. Choices on how to shop have proliferated beyond our ability to keep up: people can choose from shopping online retailers, specialty stores, traditional stores, malls, strip malls, home shopping networks, catalogs, and mobile apps just to name some. With so many ways and places to shop, how does anyone know where to go? This adds to the confusion that shoppers

feel even before they walk into the store.

Researchers find that the bigger the assortment, the harder it is for people to choose. Kathleen Vohs, a professor at the University of Minnesota says, “clearly there are costs to having too much choice.” Studies show that having to make too many decisions can leave people tired, mentally drained and more dissatisfied with their purchases. This “decision fatigue” occurs when shopping presents too many options. Consumers often make simple, snap judgments or a “no decision” at all just to avoid the hassle of wading through confusing choices.

Did you know when searching for “jeans” online you will find 3,738 choices on target.com and 2,372 choices on macys.com… Seriously?

Competitive ResearchIn blind taste tests... all advertising in this category is perceived as the sameBut it’s more than just advertising, everything is the same. Many stores offer the same products, same services and have the same look. According to IBISWorld 2010, 70% - 80% of merchandise offered in department stores is the same. In a consumer survey reported by Marketing Week, 78% of consumers believe companies like to pretend that their brands are really different, but actually there’s rarely any substantial difference between them. Even branding professionals are noticing the similarities. The Director of Brand Innovation at BOLTgroup says, “With re-branding happening everyday, it’s becoming impossible to tell retailers apart.”

Early on we discovered that most retail advertising is virtually interchangeable and without the store logo most consumers cannot tell which insert goes with what store.

One question in our survey asked respondents to match the store logo with the corresponding FSI. The results show that most consumers couldn’t match them correctly.

But more importantly, 79% of our survey respondents could not identify the JCPenney Free Standing Insert!

Percent of target market who COULD NOT identify the FSI by store

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Target Market

Secondary research told us...

Our primary research told us...

The average JCP shopper shops 3.3 times per year

They actually shop 2.8 - 14.5 times per year

3.8 million known JCP customers are ages 25-34

An additional 10 million females 25-34 self-identified as JCP shoppers

Macy’s and Kohl’s are top competitors

Kohl’s and Target are where the target shops first

JCP shoppers are motivated by price and item availability

JCP shoppers are motivated by sales and convenience

Individuals 25-34 are fun obsessed and open to anything

The JCP target doesn’t search for excitement or thrills

Industry trends recommend transforming a department store into a social destination

The target actually prefers shopping alone

JCP customers like to shop JCP customers feel shopping used to be more enjoyable

Individuals ages 25-34 are self-absorbed and indulgent The target is family oriented

and cost-conscious

Customers ages 25-34 are more likely to research online before going to a store

We agree, the target identified most with Google and eBay as favorite brands } Make it simple and manageable

so they don't have to waste time shopping around

Don’t complicate the shopping experience by giving them something they don’t want

They’re going, but not necessarily buying because they’re spending their money elsewhere first

Simple Conclusions

Shopping is a mission and they prefer it to be simple!

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StrategyThe choice bubble has burst

When given 24 choices only 3% purchased jam.

When given 6 choices, a much greater 30% purchased jam.

Nobel Laureate, Herb Simon, PhD, coined the phrase “satisficing” to describe how consumers rationalize their purchase decisions when

faced with overwhelming choice.

The choice paradoxProfessor Sheena Iyengar of Columbia Business School has been studying choice for years. She’s conducted studies on choice in various consumer categories, as complex as options of 401k plans. She cites that even in a study in which grocery store shoppers were exposed to different samples of jam, overwhelming choice actually discourages buying. The study found that between samples of 6 or 24 choices of jam, the larger sample attracted more attention, but shoppers who sampled the smaller selection were 10 times more likely to purchase.

The ubiquity of choice has reached a point where it no longer serves retailers. Instead it has created a condition of overwhelming options for consumers that threatens their ability to effectively make purchasing decisions. In a consumer study reported by Marketing Week, 75% of people agreed, “these days there are so many products and services that it’s often hard to choose which is best for me.”

Too many choices can quickly change a fun shopping trip to a stressful chore. An alarming observation according to Chain Store Age, “once in the store 95% of shoppers often leave without making a purchase due to the overwhelming number of choices.” Shoppers are deterred from returning after experiencing a negative and stressful experience.

Perception is one thing. Behavior is reality. Consumers may think they’re interested in having choices, but they more readily make purchase decisions when given a more manageable assortment, as proven by the choice paradox below.

Positioning Strategy Our campaign will make JCPenney stand out from the chaos of the retail environment by positioning them as the uncomplicated alternative to shopping around.By simplifying the shopping experience we’ll make shopping enjoyable again. With JCPenney as their first stop, the target will be able to get in, find everything they want, get out and get on with their lives. There’s no need to waste time or money shopping anywhere else.

Media StrategyOur media plan utilizes a pulsing strategy that coincides with peak retail sales periods. It is designed to reach new and existing customers, drive them to the store or jcp.com, and increase their purchase frequency and spend at JCPenney.

We will launch our national campaign during February and March using television, magazine inserts, a custom published magazine and online advertising. The national campaign will focus on branding and will set up the problem that shopping around is complicated and that JCPenney is the simple solution.

We will then switch to more of a “retail” approach, when our advertising will focus on key items designed to drive the target to JCPenney.

We will utilize full-page ads and consecutive 1/3-page verticals. These ads, a creative space buy, mimic our strategy of keeping it simple – one item or outfit per ad. We will also utilize rich banners in a similar fashion, while extending our online presence through the use of Google AdWords, Facebook ads and simplify.com.

We will also launch a regional advertising campaign in California, Florida and Texas in key DMAs with a high concentration of JCPenney locations. We will layer in radio, mall, and newspaper to support our consumer promotions, while also reinforcing brand strategy. These ads will run during the key selling periods: Spring, Fall/Back to School and Holiday, and are timed to coincide with our promotions.

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Mall

Newspaper

Radio

Network TV

Cable TV

Magazine

Online

Facebook

Google

Custom Mag

Social Media

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Creative StrategyHow can you stand out by being like everyone?You can’t.

Our campaign is like nothing in the category. It will "Simplify" JCPenney within the media, as we position the brand against the entire shopping experience in all of its complexity, confusion, overwhelming choice and exhaustion.

During the early phase of the campaign we’ll use larger advertising units juxtaposing the mall or shopping center alternative to the simple, key item of the JCPenney shopping experience. The too-true-to-be-farcical diagram in all large ads quickly demonstrates the cluttered, confusing, time-sucking shopping overload. The JCPenney price and item portion of the larger units and all subsequent smaller ads feature a simple presentation of a product or a few related products.

The power of the insert

An 8-page 8 1/2 x 11” pre-printed double gatefold insert in 12

magazines will kick off the print portion of our campaign.

Magazines automatically open to an insert, making the ad virtually

impossible to ignore. Where the average readership of a magazine

ad is 8%, inserts of this size and type routinely gain readership scores

up to ten times average magazine readership scores.

The launch of the 12-month campaign puts a heavy emphasis on building brand preference in addition to featuring products in every ad. We’ll start big by running 8-page inserts in magazines most popular

with our target. The inserts set up the problem the target faces when trying to shop in today’s cluttered retail environment and positions JCPenney as the quick, simple and easy solution.

The featured products in each magazine insert will be matched to the specific audience of each publication.

Content that speaks to the audience.

Insert major impact here

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TV StrategyLike the magazine inserts, our TV ads set up the problem and showcase JCPenney as the simple solution. We will run :60s initially to launch the campaign, falling back to :30 and :15 spots flighted around promotional times.

MRI+ shows the target indexes very high in award specials (index 143) and entertainment specials (132). We have chosen to continue the Academy Awards sponsorship in 2012 and 2013, and run on Entertainment Tonight. Because our target is not a heavy primetime or network viewer (63), we will focus

our programming on cable networks. We will run during Early Fringe (4:30-7:30PM) and Late Fringe (11:00PM-1:00AM) as they index high during those dayparts. During Early Fringe the target is watching TV with their children, so we chose to run on networks such as ABC Family and Nickelodeon.

Because they indexed high in reality based programming (114), we will run on networks such as Bravo, E!, Style, and TLC. We’ll also make sure we have a strong presence on cable networks where our competition is currently running their commericials.

:60 Launch spotSqueezing over 90-seconds of video into 60 seconds

Split screen does the trick!

We start with the evil side of shopping on the full screen, with over-the-top confusing music. About 20-seconds in the viewer is given an opportunity to make a better choice. After that, the screen splits, the music becomes more relaxed and we show the smooth, easy, simple JCPenney alternative.

Ahhhh...

The ultimate branding platform merits a branding approach How do you illustrate the hectic shopping experience vs. simple enjoyment of shopping at JCPenney? With kinetic energy, of course

The 30-second solution

After our :60 spots establish the campaign message, we’ll fall back to:30s that will continue to magnify the negative alternative while featuring product in the simpler JCPenney solution.

:30 Day at the Mall

15-second work horsesThe bulk of our TV schedule will use :15s to feature the simple choice of one product or outfit per spot. Any given commercial can be edited to feature products depending on programing, merchandising schedules and seasons.

:15 Marathon

Time to sell hard?Let’s do it!Give us your one day sales, your seasonal sales, your store-wide blowouts, this creative approach allows us to feature product while maintaining a strong overall branding message in each commercial.

:30 Store Wide Sale

Shopping, and dealing with all of its dynamics - driving, walking, searching, finding what you’re looking for, not finding it, trying to find a rest room - takes energy, kinetic energy, to put it in scientific terms. That’s why we’re using kinetic titling and animation to capture various dynamics of shopping, both good and bad.

Each of our commercials capture the confusion, overwhelming choice and exhaustion of shopping, juxtaposed to the more manageable, even enjoyable experience of streamlining your choice to JCPenney.

We not only capture these energies and moods visually, but also with music that says, “I don’t want that shopping experience, I want this one - JCPenney!”

TV Creative

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Magazine StrategyKeeping the branding and the product messages simple...Our target loves magazines. MRI+ states the target reads bridal (index 163), parenting (196), entertainment (111) and fashion magazines (119).We will feature print ads in the same magazines as inserts.

Starting in April, we’ll use creative space buys to maximize our spend, i.e. full page ads and vertical 1/3s that continue our simple story. These ads have a more retail focus where we highlight a key item for purchase.

We’ll enhance our ads by running in issues with content that reinforces our message. For instance, Lucky’s “Month of Outfits” in April focuses on a single item of clothing styled 30 different ways, so we’ll feature an ad series such as the one on this spread. We’ll deepen the impact of the spend with a PR strategy that will reach out to fashion editors to get JCPenney merchandise featured in editorials.

For the price of a spread, JCPenney can virtually own a magazine. Each ad in our multi-unit set works alone, but also works in concert with the other ads in the same publication - a virtual campaign of ads dominating each magazine.

“Our styles aren’t just up-to-date, they’re real-time!” Products featured in our magazine ads will be determined by styles most browsed on jcp.com.

Magazine Creative...but pounding away at frequency with smaller size unitsMany magazine ads will run as multiple units in the same publication. By starting with a full page ad on a right-hand page we dominate one spread with a combination branding and product message.

Subsequent 1/3 page ads will follow in various configurations to simplify product choice in each separate ad (see next page for illustration).

Our multi-ad approach to magazine advertising offers all sorts of merchandizing possibilities. Some multi-page units will feature a core fashion item shown dressed up in various ways in the following 1/3 page units. Some multi-page ads will feature different items in the same category. Some ad sets will feature related products across departments, as demonstrated on the next page.

Every print ad feeds web traffic. All magazine ads contain QR codes which

will link readers directly to the item featured in the

ad to the same item on JCPenney’s web site.

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Magazine AdsAll dressed up and a million places to goSell the brand. Sell a product. Sell another product. Sell yet another product. This is fun, and oh so effective. Our ads promote the brand, the merchandise and drive home our message of JCPenney being a

simpler way to find what you’re looking for. Each set of ads works in tandem, but they also work when they are placed individually, increasing their effectiveness.

Date NightFor a woman, there is nothing more stressful than finding the perfect thing to wear for a date. If they shop at JCPenney, they may not know how the night will end, but they know that they’ll look great.

Suit UpYou’ve got the sun, the sand but you forgot all about the suit! Head to JCPenney and find the perfect suit to channel your inner beach bunny.

Snow DayThe weather outside might be frightful, but with JCPenney you can find what you need to make everyone’s day delightful.

Good MorningThe perfect cup of coffee can

make any morning better, and this ad shows how these

ads work just as well for appliances and home goods

as they do for clothing.

Shuffle the ad deckNo matter how the ads run, consecutive pages, consecutive spreads or interspersed throughout the magazine, they work hard to sell the brand and the product.

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Online StrategyYes, all of our media is integrated to the web, but here’s some dedicated online and smartphone tacticsFemales 25-34 are heavy users of the internet and like to do research online before visiting the store. Research shows JCPenney customers do this even more. So, our internet strategy will employ a multi-pronged approach, utilizing optimized SEO, banner ads, Google AdWords and Facebook ads. Overall, our online campaign will drive traffic to jcp.com while reinforcing the idea that shopping with JCPenney is simple.

Banner Ads According to iPerceptions, the majority of ad clicks are from repeat visitors. We’ll run banner ads on websites frequented by the target, some of which reflect our magazine buy.

Facebook AdsFacebook indexes at 160 with females 25-34. We’ll run Facebook ads that will drive traffic to jcp.com.

Google AdWordsOur research showed our target prefers Google as their search engine of choice. We’ll purchase keywords pertaining to women’s fashion as well as bridal, home goods, and children’s clothing to gain traction with shoppers when they are in the browsing mindset.

Search Engine OptimizationBy using refined heading, meta, title and alt tags in addition to back-linking through shopping comparison websites, our organic search presence will increase.

“Drag” banner.

Banner & Facebook

Watch Styling HappenWatch Styling Happen is a live styling event that streams from a studio. Styling instructions are relayed via tweet with use of the hashtag #stylejcp. Stylists can tag themselves and invite their friends to vote for their looks by “liking” their look. The #stylejcp stylist and looks with the most “likes” on Facebook will be featured in simplify magazine.

Virtual Shopper ApplicationOur app bridges the online and instore experiences with the help of augmented reality. Once in store, users will be able to use the app to search for merchandise that fits their needs. Digital hot spot bubbles

connected to wifi locaters stored in security tags will mark the results of their search. Users will also be able to search by latest in-store sales trends, items selected online, by rating, or by current sales.

New Media Guerilla

“Drop” Banner.

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Custom Publishing StrategyHow about direct marketing that people actually want to openJCPenney dissolved its $3.9 billion catalog business in 2010, and focused on using jcp.com to replace that source of revenue.

To date, online sales have not yet reached that level. JCPenney does continue to direct market to a targeted base of customers with the “Little Red Book”, which highlights key seasonal styles but does not allow for direct purchases.

We see an opportunity to leverage the content of the look book, the convenience of the catalog and the immense immediacy of the internet. We recommend that JCPenney evolve the “Little Red Book” into a custom magazine and online publication targeted to females 25-34. A custom publication allows JCPenney to deepen relationships,

Custom publishing allows us to bridge the gap between JCPenney’s history as a company with strong catalog sales to a lucrative future harnessing custom content to drive sales online and in-store.

Simplify is an evolution of “The Little Red Book” that helps JCPenney build relationships and provide information that our research has shown is relevant to the target in a space where only JCPenney and JCPenney’s featured collaborators and partners are advertisers.

contentsVOLUME 1 ISSUE 1 / MARCH 2012

1 simplify March 2012

departments features back+frontLIVING HEALTHY P. 13Having trouble working out the perfect time to work out? Weʼll help you find the perfect way to fit a workout into your busy schedule and give you healthy recipes to refuel.

CULTURE P. 8Tired of the same old book club reads? We have a list of authors who have written books that will be a pleasure to read and discuss with friends.

WAYS TO WEAR P. 11It is finally warming up after a long winter and weʼve got tips to transition your wardrobe to the new season.

SPRING LOOKS P. 15It is finally warming up after a long winter and weʼve got tips to transition your wardrobe to the new season.

MEET THE BUYER P. 19Ever wonder how clothing goes from the designerʼs sketchpad to your closet? Meet the buyer who seeks out every piece in the store.

FAMILY FUN P. 16The perfect kid-friendly picnic in 20 minutes or less

LOOKBOOK P. 23Our readers share their best looks for Spring

EDITORIALS P. 6Read real stories about women making a difference in their communities.

offer relevant information, build brand loyalty, and be the exclusive advertiser.

We will make shopping simple for the target by placing QR codes next to key items. When scanned with a smartphone it allows for an easy and simple way to make a purchase. We’ll leverage this medium content by creating an online version of the magazine. Simplify.com will feature JCPenney ads from our

current campaign and will allow for simple shopping through a link to jcp.com, as well as to the Facebook page.

We’ll populate simplify.com with easy-to-share versions of this content in the form of podcasts and videos giving viral potential and making it easy for the target to spread our message for us.

Our publisher for the magazine will be Meredith Publications. Since we

are advertising in a number of their magazines, we can more effectively

target their readership database who are JCPenney customers and non-customers.

We will also utilize the JCPenney database.

The merchandise will be easily accessible by QR codes next to key items that can be scanned with a smartphone, making purchases easy and instant.

The magazine content will have a second life online at simplify.com, the simplify YouTube channel and

simplify iTunes podcast channel, all of which will drive traffic to jcp.com

and JCPenney’s Facebook page.

3 Ways You Never Wore a Shirt DressA popular item since the 1940s, the shirt dress has changed with the times to become an item we know and love today. It is versatile, comfortable and universally flattering, making it a cornerstone piece in a women’s closet. But just because it says it’s a dress, doesn’t mean you always have to wear it as a dress. It can easily go from casual to office to date-night ready with a few simple changes. Try pairing it with different accessories to completely change your look. Don’t be afraid to explore your options, but for a little help the next time you go out, try these styles.

Create a classic casual look with black jeans and comfy flats. Pair with a simple cardigan to complete the look for a laid back night out with friends or that special one.

Ready for lunch with friends while still looking professional? Black leggings and a fitted blazer dress up this shirt dress. Brightly colored heels compliment the outfit while adding a touch of fun.

Run your errands looking chic without hurting your feet. Wear your shirt dress with your favorite skinny jeans and a pair of flats. You’re ready to go with a cute simple style.

“It can easily go from casual to office to date-night ready with a few simple changes.”

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Custom Publishing on the Web

Simplify.com is the online home of simplify magazine. The site will be the home of constantly updating editorial content from the magazine, blog posts, fashion and lifestyle tips, style news, and a user look book. All of the content on the site will be categorized by hashtag, incenting readers to use twitter to react to the website, connect with other readers. All twitter comments using the simplify.com’s hashtags will be displayed in a twitter feed.

The Boutique YouTube channel allowsyou to browse JCPenney’s online shopdirectly, but instead of just looking atpictures you are directed by onscreenprompts to videos that exhibit looksassembled by stylists for occasions likea night on the town or a job interview.Bubbles pop-up on-screen allowing youto click on the items in the video andpurchase them in the online shopwithout leaving youtube.

The simplify podcast puts the content from simplify magazine and simplify.com in a format perfect for the active lifestyle of 25-34 year olds. The podcasts will be released weekly and will expand upon topics covered in the magazine and the website, building a relationship with the brand in a unique way.

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RegionalRadio & NewspaperIn addition to our national campaign we will implement a regional media strategy with the goal of increasing sales in California, Florida and Texas as requested by the client. We’ll augment the national campaign with radio, mall and newspaper advertising in key DMAs designed to drive traffic to the stores, especially during peak promotion periods.

Radio provides great support on the local level. According to MRI+, females 25-34 index high as moderate to heavy listeners of traditional radio. We will layer in radio to complement the promotion schedule that will run three times a year. We’ll run

on top rated stations in each DMA with females 25-34 as their primary audience. The spots will run during Evening Drive Time (3:00-7:00PM) because of the high index rating as well as the opportunity to immediately affect behavior.

Newspaper will mirror the magazine advertisements by using creative space buys to tell a story. We emphasize key items that are part of the consumer promotion. We’ll run page dominant 4 col. x 16” followed by consecutive 2 col. x 16” ads that support the circulars with a simple message that stands out from the rest of the clutter.

The targeted DMAs are densely populated and have high concentration of JCPenney stores.

California DMAs• Los Angeles• San Diego• San Francisco

Texas DMAs• Austin• Houston• San Antonio• Dallas - Ft. Worth

Florida DMAs• Miami - Ft. Lauderdale• Tampa - St. Petersburg• Jacksonville• Orlando

Mall RationaleMall advertising allows us to immediately influence the buying behavior of our target market by reaching them while they are in the mall and in the shopping mindset. Based on research from Arbitron, 72% of mall

shoppers recall mall ads. So with mall advertising, we can drive traffic to JCPenney and help increase sales at their mall locations, as they typically do not perform as well as their stand-alone counterparts.

These ads reach the target at a time when they are exceedingly receptive because they are already in the shopping mindset.

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Consumer Promotions and PoPOur consumer promotions are designed to reinforce the idea that shopping is simple at JCPenney as well as drive traffic to the store during the peak selling periods of Spring, Fall/Back to School and Holiday.

Sales and Signage made SimpleOur research said our shoppers are motivated first and foremost by sales, but today’s promotions can be very confusing. With offers like BOGO, take an additional percent off the already reduced price, discounts limited to select styles and brands only, etc., it’s very easy to become overwhelmed and frustrated. We recommend running promotions that are easy and straightforward. Each promotion will feature a single item on sale using a simple discount strategy. To further extend the simplicity of the promotion, we’ll move the featured merchandise to all store entrances. This will make it easy for the target to come in and buy the item.

Tag and Bag The Tag and Bag promotion is designed to encourage the half a million 25-34 JCPRewards members to shop and spend even more. Our idea is simple: we’ll save them time and frustration by simplifying the shopping experience. They’ll be able to select desired clothing ahead of time and have the items set aside in a chosen store. These customers will tag desired items on jcp.com as well as designate an arrival time and store location. When they get to the store they will check in and go directly to the fitting room with their items.

Our target is environmentally aware. We’ll reward the shopper with a reusable shopping bag that is designed to reflect the look of this campaign.

Internal StrategySimply the BestWe’ll conduct contests/sweepstakes for the employees that are tied to our consumer promotion schedule. Those stores that generate the biggest increase over last year’s sales will win $100 bonuses for all employees. In addition, six employees will be chosen at random to receive an all-expense-paid trip to the 2013 Academy Awards, for them and a guest.

The internal strategy is designed to work in conjunction with JCPenney’s long range plan to

encourage teamwork, innovation, and reward the best talent in retail. To gain employee buy-in for the campaign, we’ll give them the opportunity to preview the campaign before it breaks in the media. At an all-staff store meeting, we’ll run a webcast where the CEO introduces the consumer campaign to everyone. Throughout the internal push, we’ll use in-store posters, signs and paycheck stuffers to support the marketing communications effort and different consumer promotions we run.

Our in-store signage serves as an extension of the rest of our campaign and is a testament to the simplicity of the message while driving sales within the store.

By giving the devoted JCPRewards members an easier way to shop, they will be more likely to spend more and

shop more often.

The key to satisfying customers is happy and motivated employees. Our internal strategy mobilizes employees by providing exciting rewards and emphasizing the importance of teamwork, innovation, and dedication.

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Budget and Evaluation Thank youJWU Ad TeamFolu AkinkuotuSteph AmaralSharice CarpenterMatthew DuranteRob ErskineRyan HealeyJameela HollowayGeorge HoremiotisGianna JosephEleana LaGuerreSarah ListerJoy LiuBilly MarcellusIan MargolinAlly McGarveyJordan MitchellAdeola OyedeleChristie PietilaJoe RussomanoVicki SahlSanjana SalwiPatricia SpringfieldWesley SweeneyLydia TherrienChristine TorresLauren TurnerJessica WhittakerTim Williams

AdvisorsOscar ChilabatoTom MonahanChristine Ure

AcknowledgementsJuan Alvarado Ryan BarryRuth BoltonEmily DowNeal Manchester DES PrintingKatelyn TyrrellDr. Jeffrey SeneseDr. David MitchellJoanne GalenskiPat FisherLinda Hatch

SourcesGlobal Market InsightArbitronThe Art of Choosing by Sheena IyengarBlue Line MediaThe Cable Advertising BureauChain Store AgeCo.DesignCompete.comHochman ConsultantsIBIS WorldiPerceptionsJCPenneyMarketing WeekMedia Planning by Jim Sur-manekMeredith Integrated MarketingMRI+Multichannel MerchantThe New York TimesThe Nielsen CompanyQuantcastRadio Advertising BureauSRDSSQAD Media Market GuideStationRatings.comStructural GraphicsUSA TodayVALSZap2it

Medium Cost Impressions*TV $44,620,139.14 4,121,744,000Online $1,200,000.00 176,000,000Newspaper $11,199,650.55 72,206,136Radio $7,695,576.00 143,250,732Magazine $31,727,273.45 363,871,528Mall $198,000.00 131,085,132Google AdWords $1,023,000.00 825,000Facebook Ads $1,044,000.00 600,000Contingency Fund $1,292,360.86 -

Total: $100,000,000.00 5,009,582,528*All audience composition data based on figures from SQAD, SRDS, ABC, Arbitron, Nielsen, MRI+, Quantcast and Clear Channel

A follow-up survey can be administered to gauge any changes in attitude in the consumer’s mind. We will evaluate the progress of the campaign objectives through tracking hits and behavior on simplify.com as well as sales on jcp.com. Response rates can be

gathered with high efficiency utilizing the QR codes, which will simplify ROI calculations. We will also measure the success of our efforts with the new fiscal figures resulting from our promotional sales and employee incentive program.

Websites IndexLuckyMag.com 148Glamour.com 154Youtube.com 159Photobucket.com 152IMDb.com 202Yahoo! Movies 147TicketMaster.com 154Flickr.com 217Monster.com 144Careerbuilder.com 146Parenting.com 132Brides.com 174E! Online 122

Magazine IndexBridal Guide 293Life & Style Weekly 251Brides 247Baby Talk 246US Weekly 243American Baby 224Glamour 219InStyle 205Lucky 193Parenting 170Latina Style 169Allure 135

Television IndexNickelodeon 155E! 140ET 132Style 125TLC 123Travel 117Lifetime 113Bravo 116ABC Family 109

All index numbers are from MRI+ and Quantcast

Evaluation

Media Indexes

Budget

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Simplify