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Executive SummaryResearchBrand LoyaltyTarget AudiencesBranding WorkshopRompeBarriersCampaign Objectives

Big IdeaMedia StrategyCampaign CycleReaching HerPaid ExecutionsOwned ExecutionsPEO IntegrationIntroduce

1113141517212324

IlluminateEngageEmpowerAssociate IncentivesMedia PlanBudgetPitch & Evaluation

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We are Circle Advertising.We are hand-crafted. We are a compilation of students from different majors. We represent different opinions and ideas, and yet when we come together, we create something greater than the sum of our parts. With this book, we have done the same. Each page is individual, with every graph and chart handmade, every title and word illustrated. Like the pages of this book and the characters on our team, we know our demographic is individual, and we wanted to represent “Her” the best way we knew how.

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“Treat others as you would like to be treated.” The Golden Rule might be a simple, timeless sentiment, but in 1902 it was the name James Cash Penney chose for his small, dry goods store in Kemmerer, Wyoming. Under The Golden Rule, James Cash Penney built a company that encouraged giving. He decreed that employees should be addressed as “Associates.” His contribution to communities added a touch of heart that would extend to future generations. While jcpenney held a strong positioning in past generations competing against major department stores, it has found itself in a different landscape competing among an ever-changing retail category. It now must stand against mass-merchandisers, upscale department stores, specialty stores, fast fashion retailers and with today’s technology, just as many or more stores online. To succeed in this increasingly competitive and oversaturated market, jcpenney has employed strategies similar to many of these retailers. However, this has led to its lack of differentiation, leading it to drift from its founding values and become irrelevant to Her.

The most significant interpersonal interactions are not those between Her and a sales Associate, but between Her and the people She loves. It’s about the moments She extends to Her inner circle. It’s about those moments when She becomes the living embodiment of the golden rule. It’s about using these moments to connect what’s important to Her with the founding values of jcpenney. By choosing Circle Advertising you are making an emotional connection with Her. Our agency of 51 “Associates” brings concentrations in Strategic Planning, Research, Media, Public Relations, Promotions, Creative and Guerilla Marketing, delivering a fully-integrated marketing campaign that will reach Her in every medium with which She interacts. Also, we are experts in social media. We will leverage this expertise to engage Her in conversations both on and offline. This campaign was developed to make you more relevant in Her life and to integrate you into the moments She holds most valuable, making jcpenney a lifestyle brand rooted in the golden rule. Ultimately, at the end of all of this, you want a loyal customer. And to develop this customer, you must make Her experience, engage and trust in you. With our campaign that integrates not only paid, traditional media, but incorporates spectaculars, promotions and giving initiatives that engage Her, you will develop in Her a brand advocate and reinvigorate the jcpenney brand. jcpenney will not only embody a company with history, but a brand with heart.

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Our first step was to understand our demographic. We had to understand Her. We set specific objectives to see who She is and what She cares about. Using “She/Her” rather than “our demographic” will help us focus in on whom we care about and what She values.

Research Objectives• Understand how She views jcpenney and how it currently fits into Her lifestyle• Evaluate jcpenney’s brand voice• Learn how to reach new and current customers in relevant ways to develop and strengthen brand loyalty• Test concepts and creative ideas to increase Return on Investment (ROI) and connect to Her• Increase shopping frequency and grow share of wallet among current female customers by making jcpenney top of mind

Strengths• Company history, an American tradition• Forward-thinking practices through text messaging, use of iPads

in-store, and social media customer engagement• Partnerships with philanthropies and in-store brands• Range of merchandise and affordability in 1,108 store locations

with online availability

Opportunities• Develop customer service initiatives and training among

Associates to increase brand reputation• Own the niche between mass merchandisers and upscale

department stores as an affordable department store• Target primary shoppers in the household

Weaknesses• Customer perception of organization and customer service • Excessive sales promotions create perception of cheap products• Muddled brand voice

Threats• Target and other mass merchandisers that offer similar products

at cheaper prices• Upscale department stores that offer quality products and more

consistent customer service• New entrants (ie. Kohls) in our niche

Evaluating jcpenney…

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Research MethodologyWe developed a range of research initiatives that would best capture a snapshot of the retail marketplace as well as Her shopping habits and views of jcpenney and its competitors. Using seven distinct methodologies we generated both qualitative and quantitative research that enabled us to gain insight into Her life.

SurveysWe developed four surveys to best identify Her:1. Insights on current macrotrends2. Views of jcpenney as a brand3. Reasoning in identifying

with brands4. Elements that build

brand loyalty

WOTSOur 115 Woman on the Street interviews (WOTS) challenged us to capture a psychographic snapshot as we learned about Her relationships, Her career, and Her place in life transitions. Using iPads and iPhones, we surveyed at bridal conventions, antique fairs, and in downtown areas during happy hour.

Holiday ObservationsEvery member of our team went to jcpenney, Macy’s, Target, and Kohl’s beginning Black Friday and extending through Christmas to observe shopping patterns, customer service interactions, and general feel of the store to understand jcpenney operations and the people who shop there.

Focus GroupsTo determine how to segment our audience, we split our focus groups into four sections: Gen X, Gen Y, mothers, and macrotrends such as health habits and sustainability. This enabled us to establish whether the break in generations and ages would factor into our campaign objectives, and also whether larger trends or having a family changed Her habits.

Secondary ResearchWe examined retail market analyst reports, studied the history of jcpenney and James Cash Penney, read books pertaining to social media strategies by Seth Godin and Chris Brogan, and evaluated annual reports for both jcpenney and its competitors. With this breadth of information we were able to gain insight into the retail industry as a whole.

Shopping ShadowsAll team members partnered with women ages 25-34. We accompanied them on trips to the mall. From finding parking, to browsing accessories, to making the final purchase, our team was able to examine Her shopping experience and gain insight into Her habits as a consumer.

Professional InterviewsWe conducted professional interviews with our competitors’ management, Bloomberg analysts and sociologists on generations X & Y to better understand the retail industry from a business standpoint and gain qualitative research.

…and how we fit in Her life

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The Brand Loyalty Pyramid identifies two things: where She is now, and where we want Her to be – at the top. Split into four stages, the pyramid segments Her behavior with the brand. Our goal is to move Her up the pyramid, and to get Her into the store more frequently because at the core, brand loyal customers create long-term profitability as they become reliable return customers.

From the bottom up:

Non-CustomerBegins progression.

Step 1: Experience the brandGet Her into the store. She doesn’t realize all jcpenney has to offer and needs to be aware of both the quality and range of merchandise.

Step 2: Trust the brandAfter experiencing the value of the brand, She will see jcpenney as an authentic company with heart and a care for the community. Her renewed shopping experience will spark Her investment in jcpenney and what it stands for as a brand.

Step 3: Loyalty to the brandAs She becomes emotionally connected to jcpenney, it becomes top of mind as one of Her preferred retail brands.

From awareness to advocacy

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With Her, we have the greatest opportunity for integration into Her upcoming life transitions as She is currently single and without kids. Her self-focused attitude causes Her hobbies, shopping patterns, and social life to revolve around Her.

She is married and developing a stable residence as she settles down. She thinks through all of Her purchases before spending, but enjoys a little splurge every once in a while. It is possible that She has experienced wedding purchases elsewhere, which could be a lost opportunity for brand loyalty.

She is more likely to spend on Her family than Herself, allowing us to capitalize on Her purchase patterns in multiple jcpenney departments. She constantly evaluates how much She spends and sees extra purchases as frivolous. However, She still provides an opportunity, as half of current jcpenney shoppers are mothers.**

• Single, independent woman• Up-and-coming in her career• At a point in her life where spending

revolves around her• Enjoys discovering new recipes and doing

yoga on the weekends

• Recently married and moved into her first home

• Balancing a part-time teaching job and finishing her credentials

• Occasionally splurges on herself but is typically a sensible spender

• Fitness-oriented and spends time watching home makeover shows

• Married and a full-time mother of two• Recently moved into a larger home to

accommodate her growing family• Primary shopper for her family and

budget-oriented• Enjoys watching reality television and

staying connected with friends through social media

Primary Self-Oriented Shopper38% of the demographic

Secondary Practical Shopper12% of the demographic

Tertiary Budget-Conscious Shopper37%* of the demographic

Meet ErinPrimary Audience

Meet JessicaSecondary Audience

Meet MicheleTertiary Audience

Three different women in three different stages

*Based on Census reporting which includes an “Other” category. Percentages do not add up to 100 percent as this is based on the total number of women ages 25-34, not just current shoppers.**As stated in the Case Study.

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In November, Circle Advertising held its first branding workshop to examine how brands establish an identity among consumers. How did Nike become the definitive mark of the athlete? What makes Ikea a reputable destination as opposed to just another discount furniture retailer?

We began by identifying brand beliefs and how they influenced brand behaviors. We studied brands including Apple, Nike, and Coca-Cola.

Brand belief: Overarching message that the brand must follow for every decision made. It’s the “why?” behind the brand’s actions.

Brand behavior: Initiatives executed under the brand belief. It’s the “how?” when we execute our beliefs and interact with the consumer.

We discussed how consumers have intuitive emotional connections with certain messages, and how these messages have been used to equate brands with feelings. It’s not simply about computers, sportswear, or soft drinks. It’s about the character behind the brand.

We believe in creativity & innovation

Belief

Brand

We believe in empowering athletes

We believe in happiness

It’s the character behind the brand

We applied this thinking to jcpenney. How do we ensure the brand translates to our consumer?

Insights led us to believe that a strong and cohesive brand message was missing from jcpenney. These findings resulted from its:

• focus on the individual brands within the store• absence of a definitive message• lack of a relationship with Her

By exploring the process by which a product becomes a brand, we came away with the understanding of an architecture to build the jcpenney brand into an idea. She will more readily and more frequently integrate it into Her life, bringing Her into the store more often.

The branding workshop prepared us for Rompe to identify who jcpenney is as a brand.

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The analytical process comes to life in a room full of data, from demographic insights to in-store signage, from television commercials to guerilla flashmobs.

Rompe (pronounced: rome-peh), from the Spanish word “to break,” is an annual event we hold on behalf of our NSAC client. For two days, we take over a professional sound stage with 53 stationary boards and two interactive stations, all for us to analyze, absorb, and discuss. In order to differentiate jcpenney from its competitors, it’s imperative to first understand the current retail landscape. Only then can we break out in a new, strategic direction.

Every member of Circle Advertising spent 90 minutes studying the research we spent three months collecting. This analysis led to several key insights:

• jcpenney lacks a strong brand voice as it focuses on promoting individual labels rather than the store itself

• jcpenney has left behind its foundation of the golden rule in an attempt to compete with fast fashion retailers

• jcpenney provides its customers with more departments and services than any other department store

• jcpenney has a heart for giving, although She doesn’t know it

In the end, we determined that jcpenney should no longer follow the marketing trends of fast fashion retailers or mass merchandisers. It needs a strategy it can really own – something authentic that does not yet exist in the marketplace. It must be something that will develop organically out of the company’s history defined by the golden rule. We found a need to reach Her with a simple, true concept that stands out from a vein of retail advertising saturated with excess and abstraction.

Breaking through

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Lost Brand VoiceJames Cash Penney originally named his store The Golden Rule, following his own philosophy:

“Treat others how you’d want to be treated.”

In its drive to be trendy and modern, jcpenney lost that very thing on which it was founded. Its empathy. Its golden rule. Its heart.

“To tell you the truth it just seems bland to me, there’s nothing that really draws me to it.” – Thatiana, 30

Generational PerceptionShe sees jcpenney as Her grandmother’s store. It is outdated. It is old fashioned. It gives Her no incentive to experience the brand.

“They seem to market to women older than me.” – Survey

“The selection seems to be geared towards a more mature clientele.” – Survey

“I think of my childhood, my mom used to purchase a lot of stuff for us there.” – Survey

Promotion SaturationSubjected to constant promotions from in-store to online, She feels bombarded by sales and perceives jcpenney as “cheap.”

“Their sales!…they have sales every weekend.” – ‘Woman on the Street’ interview

“I have changed my perspective of thinking. I used to go for the sale to get more for my money. Now I will consciously wait. I will probably buy something a little more expensive for quality because it will save me more money in the long run.” – Darlene, 32

She’s disconnected from jcpenney…

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jcpenney has developed a long range plan that integrates strategies that benefit customers, Associates, and shareholders, and abides by a mission statement anchored in profitability. Our goal is to integrate a higher reaching message into these current brand philosophies, a guiding belief and form of inspiration for jcpenney to follow. Taking from our primary research, we developed a series of brand beliefs as a motivational direction for our jcpenney messaging as we aim to extend a great deal of heart back into the golden rule.

ROI Measurements

Because Her spending patterns change with each shopping trip, we will be most successful in calculating how often we get Her into the store, rather than the average dollar amount generated by each shopper’s visit.

To calculate this, we will align our Brand Loyalty Pyramid to our evaluation of store visits.

Currently, the average jcpenney shopper in the demographic makes 3.3 visits per year.* This number will correlate to the shopper that Trusts the brand, per our Brand Loyalty Pyramid. With our campaign, we plan to increase this number by at least one trip.

Brand Beliefs• We believe in treating others how you’d want to be treated• We believe in providing stylish products at affordable prices for every

phase of your life• We believe that the most valuable moments are those that are shared• We believe that a company should always support customers,

Associates, and shareholders

We can convey these beliefs through the use of brand behaviors embodied in our executions. We recommend these beliefs infiltrate every touch point between Her and jcpenney.

…but we found something She could connect with

*As stated in the case study.

Big IdeaExtending HeartOur job is to make sure the golden rule resonates with Her. We examined what She finds important in life and we learned:

She values those She loves and the meaningful interactions She shares with them. In these moments, She finds fulfillment in the give and take of gratitude, appreciation, and positivity.

The best way to describe this is through “heart.” It embodies all of these emotions, which are individual to the person and authentic to Her. By implementing the Big Idea of Extending Heart, we not only manifest the golden rule, but also focus on the specific moments She values.

Creative VisionMoment to MomentEvery product we sell Her is more than a piece of merchandise – it is a part of a moment She might always remember. It might be the jcpenney wine glasses for the chardonnay at Her housewarming party, celebrating with friends. Or the jcpenney backpack She bought for Her daughter’s first day of kindergarten. What it comes down to is that each product acts as a touch point for a specific moment – a moment that creates a memory. We will illustrate how jcpenney fits into Her lifestyle, thereby establishing an emotional connection. The Creative Vision of Moment to Moment enables us to recognize both day-to-day moments and lifestyle changes. It establishes a continuity that illustrates how each moment builds into a memory, and it embodies the individuality of Her moments. It’s more than a product. It’s Her life. And we want to Extend our Heart by offering an assortment of merchandise that makes each moment memorable.

ToneAuthentic, personable, heart-warming

TaglineYour life is our department

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We have found it too limiting to label media as “traditional” and “non-traditional” or “above-the-line” and “below-the-line.” Media is every connection between a brand and its audience. To think of media holistically, and to best reach Her, we used the PEO model:

These categories determine how we gain Her attention. Do we pay for it? Do we earn it? Do we own it?

PaidAny vehicle that we must purchase. This includes most ‘traditional’ media: television, radio, print, outdoor, and digital. These vehicles attain the most reach over any other medium and help with initial awareness of our campaign.

Earned Anything that gives Her incentive to bring jcpenney into Her life as a topic of conversation, whether through word of mouth, public relations or social media. Earned media gives Her the opportunity to interact with jcpenney in a way that is personal and meaningful.

OwnedAny existing touch point we already own. This could include signage, shopping bags, clothing tags, or the jcpenney website. While it is normally overlooked because it is not in the traditional media mix, owned media allows us to influence Her experience of the brand in a cost-effective yet fresh way.

A new look at media

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Extending Heart is implemented in four cycles beginning February 2012 to January 2013. Each cycle pairs a component of our strategic media cycle with our PEO strategy, creating a meaningful relationship between Her and each piece of the campaign. Through these cycles, we are able to break each of our barriers and reach each of our three audience segments. To reinforce that jcpenney Extends Heart year-round, we partner our philanthropies with an Earned media endeavor for each cycle, developing four Extending Heart pillars to further our message.

February – April 2012 Introduce the campaign by building interest and familiarity with Extending Heart.

We will emphasize Paid media for this portion because it has the most reach, exposing our campaign to the widest range of people. We will use a concert series to partner our campaign with a recognized artist to increase initial campaign interest.

• Super Bowl to kick off music partnership

• Concert series to premiere print ads

• Academy Awards sponsorship for launch of commercial

May – August 2012Foster an understanding of jcpenney’s history and values, and encourage Her to share this with others.

We will emphasize Earned media for Her to experience the brand. Now that She has seen our message, we want Her to learn about the Extending Heart concept and have a positive jcpenney interaction.

• Beach Takeover 5K Run• 5K entry fees and proceeds

to benefit The Y, showcasing jcpenney Extending Heart

September – December 2012Demonstrate value through the in-store experience. She believes in the benefits of jcpenney because She has experienced the brand first-hand.

We will place an emphasis on Owned media for this portion as store interactions will bring Her to trust the brand. Our main event will include product interactions and expert opinions to engage Her.

• Customer Service Map App will launch

• Giveback Getaway will increase product interaction

• “My Department” Membership Card push

January 2013Acknowledge the benefits of Her decision to shop at jcpenney, and reward Her for being a loyal customer.

We will place an emphasis on Earned media to affirm Her purchases. We will Extend Heart in the form of storewide events so the messaging is organically shared by both Her and Associates, rather than coming directly from us.

• “Fresh Look” event• Random Acts of Kindness

for Associates• Boys & Girls Clubs of America

volunteer opportunities

Incorporated step-by-step

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We know our challenge: communication is in Her hands. We provide the content, but She decides when, where, with whom, and how She will listen to us. Our executions must be meaningful to Her and Her lifestyle in order to engage Her. When She is engaged, She’ll invite us into Her community. This is how She becomes a brand loyal customer.

We offer a well-integrated media plan to build a connection between each execution, thereby establishing ROI and developing a relationship between our online and offline initiatives.

Our website, social networks, and mobile capabilities all reinforce each other and bolster our efforts in-store and in Her life. It’s not about online versus offline anymore; Extending Heart is a concept She can access anywhere, anytime, in the way that best suits Her lifestyle.

Our message is the one She hears

Our campaign strategy accounts for a wide range of women 25 – 34 in our messaging. This enables our Self-Oriented Shoppers, Practical Shoppers and our Budget-Conscious Shoppers to access Extending Heart in the way that best relates to them. With Extending Heart, we can ensure that our message is consistent, regardless of the manner in which She chooses to engage with the brand.

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To reestablish jcpenney’s brand voice, we developed a creative strategy with objectives and mandatories that unify the executions of our campaign under the Big Idea.

1. We will embody the idea of the golden rule and our history, reestablishing the heart of jcpenney as a brand that gives back and encourages Her to extend Her heart.

2. We will illustrate the idea of sharing moments, moment to moment, in every moment to embody our creative vision into every execution of our campaign.

3. We will position jcpenney as a lifestyle brand that focuses on how jcpenney products are integrated into Her moments, connecting them to the emotion of the moment associated with the product.

4. We will embody the style that jcpenney highlights by using visually appealing imagery and represent Her individual style through custom fonts.

5. We will make an emotional connection to Her, adding value to the products and differentiating jcpenney from Macy’s and Target.

6. We will reinforce our four philanthropic pillars: FIRST, The Y, 4-H, and Boys & Girls Clubs of America.

Extending Heart: A how-to guide

The Extending Heart StyleExtending Heart executions follow a specific style guide to unify all elements of the campaign.

• Red box representing the “department” signs• Hand-illustrated titles• Inclusion of “The” and “Department”• jcpenney logo• Your life is our department tagline• Call to action: jcp.com

jcp.com

the

department

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the

department

jcp.com jcp.com

Capturing Her moments...

the

department

jcp.com

Bringing Our Vision To LifeThese are examples of our print and OOH executions. Each moment has custom, hand-drawn typefaces to embody its individuality. No two letters are the same, just as no two moments are the same. The products aren’t just accessories or clothes, they are a part of moments, represented in “The Business Luncheon Department,” “The Dress Up, Stay In Department,” and “The Opening Night Department.”

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...and bringing them to life

Subway Car TakeoverPrint ads featuring subway-inspired moments will be posted inside subway cars. It’s not just about where She’s headed – jcpenney is there for those moments along the way.

Subway Tunnel Spot (storyboard)A live-action scene of an unexpected subway romance will unfold on the walls of subway tunnels as riders pass by. The headline will read, “The How We Met Department.”

:30 Second Spot “Erin’s Moment”Our :30 second spot focuses on our Self-Oriented shopper as we capture her life transition moving into a new home. The celebration of an “annual housewarming party” celebrates the individuality of the moment. The combination of jcpenney products and the company of people she cares about create a moment she will never forget.

“The first housewarming was four years ago, this weekend... The place is still warm” - Erin

Scott comes up to Erin, holding a red gift box.

A husband and wife enter with two kids, who rush for candy on the counter.

Scott joins the crowd. Her friends introduce themselves to the new guy.

“When I was looking for a place, I knew I wanted to entertain. I love everything about it...”

“Scott just moved in next door.” Erin blushes and shoots her eyebrows up – a wink of excitement

Scott, late 20s, approachably handsome, enters the apartment.

Title card appears:The Good Company Departmentjcpenney. your life is our department

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Using conventional mediums in unconventional ways

Guerilla Wild PostingsThe Little Things Department will post “nice deed” suggestions on the walls of Her neighborhood to encourage Her to Extend Heart to others everyday.

News Rack TagsA paper’s not just a paper. It’s one of those Little Things that makes Her life brighter.

Little Things Radio Spots (not pictured)Radio spots will play on hit stations featuring daily jcpenney Little Things challenges to start Her day.

Times Square TakeoverWhat Little Things make Her smile? Digital billboards will display a live Twitter feed of Little Things as She challenges others to do good under the hashtag #thegivingdepartment. The takeover will launch with jcpenney’s Little Thing of the day – distributing square, red, branded umbrellas throughout New York City during our Engage Cycle.

Kinectjcpenney has used innovative technology to enable Her to virtually try on clothes at home. We’ve expanded this idea using the Kinect, an innovative console that enables Her to connect to the new membership program.

Black Friday Coffee GiveawayShe woke up with a mission to accomplish. We’re there to help, with coffee to hand out as She enters the mall.

the

department

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Extending gratitude through takeaways and challenges

http://jcpmothersday.com/michelekahn

the

department

share

happy mother’s day, michele!

Craft Supplies, On UsInserts in parenting magazines will contain branded paper cutouts of Ralph, jcpenney’s little monster… something fun for Her little monsters!

Mother’s Day GratitudeFamily members can send customizable jcpenney Mother’s Day cards to Her home that include a personalized link. Upon visiting the link on Mother’s Day, She will find a recorded video of Her family’s gratitude, with links to share the video with friends. A jcpenney gift card may also be included.

Guerilla Moment FramesTo tease our New Year’s Eve event, 30 life-size branded picture frames will spot Manhattan. A picture frame makes any moment worth remembering.

The Moment CamOn New Year’s Eve in Times Square, a roaming camera will send a live feed to the digital billboards, with the footage centered in a jcpenney Moments Frame.

meet , a fun friend that can’t wait to hang out with you!

you can even put him together without glue or scissors. have fun!

jcp.com

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Using owned media to build trust...

“My Department” Membership ProgramA membership program allows Her to shop online, in-store, and receive tips and promotions based on a tracked purchase history, separate from the credit card. The foundation of the rewards program is rooted in the idea that it should work to fit Her lifestyle.

• E-receipts enable Her to track Her purchases• “Wish Lists” can be sent to friends and family• Recommended purchases will appear based

on purchase history• She can opt-in to receive promotions, both

sales and events• She can refer to a phone number if She forgot

Her card• Her “My Department” can link up to Her

Facebook profile, as well as Her Kinect• An iPad App will make the program available

anywhere, anytime• As She earns points on purchases, She will

receive discounts on products, similar to the current rewards program

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...and energize her store experience

Customer Service Map AppWe will encourage Her to share Her best customer service interactions online to Extend Her Heart to Associates. Using a smart phone or through Facebook, She can check-in on the Google Map inspired Facebook page, where nearby check-ins will also appear. Associates will be encouraged to help customers in order to accumulate check-ins, and She will feel invested as She has the opportunity to give back. This will be introduced during the Engage Cycle, and for every 100 posts, jcpenney will donate $1000 to 4-H.

In-Store Philanthropy MessagingDuring each media cycle, we’ll position one of jcpenney’s four philanthropic partners throughout our stores. iPads will feature photos from employee volunteer days and information on the organization, periodically including #thegivingdepartment Twitter streams. Customers can also purchase $2 sustainable shopping bags benefitting the philanthropy of the cycle.

Mannequin MomentsMannequins featuring apparel and accessories for different moments in Her life will spot each department’s floor in order to incorporate Your life is our department into in-store messaging.

the

department

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She is exposed to over 3,000 corporate messages every day. Most of them She doesn’t process – it’s just noise. Our task is to execute our initiatives in ways that fit organically with Her lifestyle. We will make jcpenney’s Extension of Heart and its philanthropic efforts something She’s willfully aware of by using Earned media.

Promotions, public relations, and spectaculars build upon our Paid endeavors to develop a fully-integrated marketing campaign. Each media cycle acts as a pillar for an Earned grouping of initiatives.

Promotion StrategyOur promotions will encourage Her to Extend Heart everyday. We will focus on moments She experiences, rather than focus on sales that She expects of jcpenney, thus breaking the barrier of Promotion Saturation.

• Each media cycle will include an event to correlate with one of jcpenney’s four primary philanthropies

• Two will kick off the fall and spring fashion lines, while the others will center on a music partnership and giving back

• Integrating spectaculars into each media cycle generate awareness

PR Strategy While jcpenney has granted more than $100 million to its after school initiatives – FIRST, The Y, 4-H and the Boys & Girls Clubs of America – and won a variety of awards for diversity and customer service, our research showed that She wasn’t aware of this.

To embody Extending Heart and change Her perception of the jcpenney brand, our PR initiatives will communicate jcpenney’s efforts with communities, Associates, and customers in a way that reaches Her. She will be extending heart to future generations by helping them, as each organization is dedicated to cultivating the community and developing future leaders. These events help establish jcpenney’s brand beliefs and behaviors, breaking the barrier of Lost Brand Voice.

• Associates will share information with Her and participate in initiatives to illuminate giving

• Continuing current jcpenney partnerships will enhance Extending Heart by furthering its relationships and helping the community

We will employ a social media strategy to bring our offline initiatives online to generate a larger conversation – each promotion has a Facebook, blog, or Twitter element that allows Her to participate nationwide. Using #thegivingdepartment hashtag throughout the year will incorporate our philanthropies digitally into each promotion.

We help Her, so She can help us

Concert RemixFebruary – April

Beach Takeover May – August

Giveback GetawaySeptember – December

Fresh LookJanuary

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Florence and the Machine Partnership As the partnership with Rascal Flatts comes to a close, a new music partnership will provide a great platform to launch the Extending Heart campaign. In order to attain the most reach and awareness, we’re associating with the up-and-coming, Grammy-nominated band Florence and the Machine.

Super Bowl Teaser (Feb. 5, 2012)As a teaser for our official campaign launch, Florence Welch of Florence and the Machine will perform the National Anthem at the Super Bowl. During the performance, She will wear jcpenney clothing to introduce our partnership.

Concert Remix (Feb. 9-23, 2012)Florence and the Machine will perform in San Francisco, Houston, Tampa, New York and Chicago leading up to the Academy Awards to launch the jcpenney print ads. This concert series will best connect to our Self-Oriented Shopper.

• As this event is partnered with our philanthropy FIRST, we will have its celebrity spokesperson Will.i.am as a featured guest

• Free tickets will be available in nearby jcpenney locations

Launching the campaign

FIRST and Will.i.amOur FIRST partnership, an after school program for kids who participate in robotics building competitions, will be featured in an interactive tent at each concert.

• Flash drives will be sold with exclusive remixes from Florence and the Machine and Will.i.am; information on FIRST will also be included

• Concert goers can vote on their favorite robot by tweeting #thegivingdepartment hashtag, with the winning team’s robot featured in their local jcpenney

Academy Awards Sponsorship (Feb. 26, 2012)We will launch our commercial at the Oscars as a part of our 11th annual sponsorship. For the week leading up to the Oscars, we own the promoted tweet #Oscars to generate early awareness using Paid Media.

• Users can tweet this hashtag before the Oscars to send good luck sentiments and submit questions to the stars, with a jcpenney red carpet correspondent reporting the tweets at the pre-show

• An iPad application will offer Her the opportunity to vote with poll results posted on TV during the pre-show

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Beach Takeover (May 26-28, 2012)Over Memorial Day Weekend we will take over five beaches each in California, Florida, and Texas for a 5K run, where we can combine Her desire to stay active and our desire to connect to Her lifestyle. This initiative will emphasize California, Texas and Florida to target areas where jcpenney wants growth, and to expand our Earned brand impressions.

• At the end of the run, She can relax on jcpenney outdoor gazebos stationed in the sand

• Gazebos will feature signs in the same style as the print ads that read “The Shade Department,” with QR codes provided for Her to look up and order the products online

Educating Her on our initiatives by getting Her involved

The Y Beach Run• Local chapters will be invited to participate in the 5K• Employees will be encouraged to bring their families and participate• Event branded water bottles, sports bags and towels will be sold with

proceeds benefitting The Y• Proceeds from the 5K entrance fee will also go to The Y; participants

can give sponsorship donations to the organization as well

Social Media CabanaTo make the beach takeover interactive, a cabana will be dedicated to social media where She can take and upload pictures to Facebook and Twitter under the hashtag #thegivingdepartment, creating live event coverage.

Training Run StuntDuring the three weeks leading up to the event, we will set up Saturday runs on the designated 5K trail to train.

• Improv teams will set up a impromptu “finish line” where they will hold red ribbons across the trail and cheer the group on to race across the finish

• Creating moments will invigorate Her for the upcoming race • We will make a viral video and take photos of these surprised women

to share the moments online

27

Giveback Getaway (Oct. 13-14, 2012)By sharing a video on Facebook of a moment made special with a jcpenney purchase, She will be entered to win an all-expense paid trip to New York City for Her and one friend. The top 10 moments will be user-decided, and winners will participate in three jcpenney-sponsored events from our various departments, allowing us to Extend Heart in every facet of Her life. This event breaks the barrier of Generational Perception as we merge with the things She cares about.

Event includes:• A $5,000 shopping spree and fashion tips from Tim Gunn, chief

creative officer of Liz Claiborne• A home decorating workshop with David Bromstad, host of HGTV

show Colorsplash• A cooking class with Rachael Ray of the Food Network and The

Rachael Ray Show

Head, Heart, Hands, and HealthWe will partner with 4-H, an organization rooted in promoting community, environment, leadership and healthy living, in order to correspond with the cooking aspect of the Giveback Getaway.

The cooking class will incorporate:• Farm fresh produce• Information on 4-H initiatives• A take-home flower pot and basil seeds to plant• A thank you card from the 4-H students

We found that She and Her friends were enthralled with the cooking class. One woman representing our tertiary market “Michele” said:

“It’s sort of a frantic cooking experience when you’re under a timeline [cooking at home]. Tonight was just cooking to enjoy it. It was great. I have two kids who will enjoy not only eating but being incorporated into the making of food – they would really love that.”

#Thegivingdepartment Live FeedA live feed of #thegivingdepartment will be featured on digital billboards in Time Square, launching at the Giveback Getaway event. This is Extending Heart on the big stage, in real time, from moment to moment.

Interacting with jcpenney in the city

Flip Cam PartnershipParticipants will be given Flip video cameras to document the weekend and to share with friends and family. Videos will be posted to the jcpenney Facebook, Youtube channel, and will be featured during the Times Square Takeover.

28

Fresh Look (Jan. 19, 2013)Those who participate in the “My Department” membership program will receive an exclusive after-hours shopping experience to have the first look at the spring line of clothes. • Every jcpenney store will host the event to bring Her in-store and

reinforce Her belief in the brand• By hosting the event store by store, we will localize the campaign and

focus on the idea of giving back within the community• We will treat Her with champagne, fruit and Harry & David chocolate

Boys & Girls Clubs of AmericaAt Fresh Look, She can start Her year off right by helping Her community. We will profile local service learning chapters to inspire Her to help and provide information for Her to volunteer. Boys & Girls Clubs of America shopping bags will be available for purchase for Her new spring wardrobe.

Random Acts of Kindness The concept of jcpenney C.A.R.E.S. arrives in-store during January to celebrate Her individual values and causes. The store with the best customer service interactions based on the Map App will give 100 customers checks for charities of their choice over the course of the month, ranging from $1 to $1000. By creating an Extending Heart interaction directly from Associate to customer, we also re-invigorate Associates and their belief in the campaign. This initiative will aim to garner media attention.

Affirming our relationship with Her

presents

find out more here

event

Super Bowl 1/30/20122/3/2012

2/8/20122/13/20122/20/2012

4/18/2012

8/27/2012

8/22/2012

8/29/2012

1/1/20131/8/2013

8/20/2012

4/25/20125/2/20125/23/2012

People Style WatchEntertainment WeeklyPaste MagazineE!hypemachine blogPeople Style WatchE!Harper’s Bazaar

ABCCBSFitness MagazineLA TimesFlorida Times UnionThe Caller Times

popular blogs

Color Splash David BromstadEveryday with Rachael Ray

Rachael Ray Show

Orlando SentinelChicago TribuneDaily NewsPhiladelphia InquirerDenver PostHouston Chronicle

Marie Claire w/ Tim Gunn

Florence Welsh and jcp partner for the National AnthemFlorence Welsh to perform National Anthem at Super BowlFlorence Welsh opens Super Bowl with National AnthemFlorence Welsh and jcp partner for the National AnthemFlorence and the Machine to perform 5 free concertsUsers choose best dressed through TwitterUser tweets go straight to the red carpetUsers choose best dressed through Twitter

jcp-sponsored beach 5K to benefi t The Yjcp-sponsored beach 5K to benefi t The YRun a Memorial Day 5K for The Yjcp-sponsored beach 5K to benefi t The YRun a Memorial Day 5K for The YRun a Memorial Day 5K for The Y

jcp gives back by giving context winner weekend in NYC

Bromstad to teach home decorating for JCPRachael Ray teaches healthy eating with local 4-H chapters

Rachael Ray teaches healthy eating with local 4-H chapters

jcp Extends Heart by extending hours for Spring line previewjcp Extends Heart by extending hours for Spring line previewjcp Extends Heart by extending hours for Spring line previewjcp Extends Heart by extending hours for Spring line previewjcp Extends Heart by extending hours for Spring line previewjcp Extends Heart by extending hours for Spring line preview

Tim Gunn to teach style tips for jcp’s Giveback Getaway

Concert RemixAcademy Awards

The Y Beach Takeover & 5K

Giveback Getaway

Fresh Look

pitch date publication pitch line

This event will be featured on the Boys & Girls Clubs of America website

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When it comes to Associate relations, we have to invest in them for them to invest in us. Our initiatives transform the role of the Associate to a vital participant in a system founded on the belief that we all deserve to be treated with Heart.

Extending Heart Conference• jcpenney store managers will attend regional Extending Heart

conferences designed to ignite a grass roots adoption of our campaign in their stores at the start of our campaign

• Attendees will participate in classes that provide product interactions to make them experts in-store and better their customer service

• The annual James Cash Penney award, given by jcpenney, will be announced at the conference to celebrate an Associate who embodies the golden rule — and Extending Heart

Our Department Associate BlogA blog for both upper and lower management will create transparency between management, Associates, and customers. It will be split into different tabs, which include:

• A blog written by the CEO and a guest blog, written by different sales Associates each week

• A Store of the Month tab to highlight Map App store successes• Interactive content on the philanthropic partners and promotions

Associate Promotion IntegrationAssociates will participate in each of the philanthropic partnership events. They will learn about the initiatives from store managers who attended the Extending Heart Conference and also through the Our Department blog.

• FIRST: Associates in the concert cities will receive free tickets• The Y: Associates’ families can participate in the beach 5K• 4-H: Associates will volunteer at local chapters’ cooking classes, with

footage featured at the Giveback Getaway Event• Boys & Girls Clubs of America: Selected Associates will give random

customers $1 to $1000 for the charities of their choice to let them participate directly in Extending Heart

On March 5, 2011, the public relations department of Circle Advertising volunteered at the local 4-H in Costa Mesa, California for hands-on research of the organization. Our members returned feeling like they both extended their hearts and gained a great deal from the event in both helping others and learning about healthy living.

Spreading our message on a grass roots level

welcome, shannon!log outemployee blog

dana morellojuly 11, 2011

jcp sales associateplano, texas

The longer I live the more I become a believer in what I refer to as “expectation management.” Expectation management is the science and art of controlling what someone might expect from any situation. It might be a store where we expect shelves that are filled with merchandise and employees who are attentive to our every need. We learn how to WOW our customers by exceed-ing their expectations. The difficulty occurs when we try to determine what exactly the customer expects. If we think something is a WOW but they just saw it in two different stores, it is no longera WOW to that customer. The same rules apply to employer/employee relationships. Employees need clearly defined tasks, goals, and even ways that they can WOW their bosses. Can an employer be too good? Yes, they can be good to a fault. How does that occur? It is when the manager overdoes praise for every little thing and gives the employee a false sense of job security or an attitude that “I don’t have to kill myself-- they already love me here.” Then when the performance drops, the constant flow of praise ends and creates negative feelings and friction among the entire staff. We have all seen where we hire a new employee and they really impress us with how hard they are working. Then, slowly over a period of weeks or months, that work ethic starts to disappear. It’s as if they no longer have to impress the boss and they become lackadaisical. There is another area that creates friction between the manager and employee. That is when you deal with contrasting belief structures. The most common of contrasting belief structures is when a store owner who has a natural attitude toward entrepreneurship and the employee is a person who lacks any type of entrepreneurial thinking. The entrepreneur says, “Let’s make it

http://ourdepartment.jcp.com

department

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2012-2013 impressions(in thousands)

spend (in thousands)

Feb. ‘1230 6 13 20 27 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28

March ‘12 April ‘12 May ‘12 June ‘12 July ‘12 Aug. ‘12 Sept. ‘12 Oct. ‘12 Nov. ‘12 Dec. ‘12 Jan. ‘13

traffic/weather reports30-second spotsPandora station sponsorRadio Moments sponsorship

banner adsGroupon#OscarsYoutube takeovers

in-game placementpage feature

n/a

Introduce Engage EmpowerIlluminate

30-second spotstelevision

sponsorships

print1 page 4 color

newspaper

in-gym

transit

$91,830,168$99,865,307

22,356,390,099total impressionstotal cost

total spend

cycle

broadcastcableOscars

Design StarThe Ellen Degeneres ShowModern FamilySuper BowlValentine’s Day

AllureAmerican BabyBridal GuideBridesCosmopolitanElleEntertainment WeeklyFitnessFit PregnancyGlamourInStyleLuckyParentingParentsPeoplePeople Style WatchOK! MagazineUs WeeklyVoguecustom inserts full page

game banner ads

billboardsInteractive Moments wallmall takeovermoments framesnewsracksNew Years Eve digital signTimes Square digital takeoverwallscapeswild postings

backlit dioramasjcp airport loungesjcp vending machines

super panelsinside/outdoor panels

bus full-wrapbus shelterssubway interiorsubway exterior wall

mobile

direct mail

radio

online

gaming: Xbox Kinect

airports

out of home

moment picture frameMother’s Day cards

drive-in movie ad half page

gamesstickers

$35,729

$12,779

$565 $674 $444 $166 $419 $454 $360 $544 $580

$2,308 $373 $154 $571 $315

$600 $1,200

$362 $160 $150

$10 $10,799

$580 $10,162

$40 $18

$6,672 $6,070

$202

$9,373 $16,047 $6,800

$50 $200 $300

$1,000 $1,959

$550 $582 $116 $257

$1,185

$400 $17 $17

$400 $100 $300

$25,273 $4,617

$539 $1,000

$18 $6

$5,000 $1,067 $9,270

$15

$910 $26

$416 $510 $510 $835 $240$240

$140 $163 $500

11

18618,000

584,09862,162

5,60125,000 30,000

501,000 1,500 371,349

25,000

77,259 38,629 38,629

189,000 10,000

120,000 120,000 240,000

4,300

2,897 428,833 43,000

2,200 2,740

12,700 111,000

4,080

4,200 6,000

486 964

15,000 4,503 6,900 4,500 1,500 4,500 5,100 3,300 8,600 8,800

27,600 3,875 1,600 5,850 2,400

6,850 12,201

3,641

50 20

493,993 17,564,205

10,400 54,888

617,555 233

20,000 410,000

Sources: bluelinemedia.com, clearchanneloutdoor.com, garysimon.net, medialifemagazine.com, Media Market Guide, SQAD, Inc., Tarrytown, NY, Summer 2007

31

TelevisionPrintDirect MailRadioOnlineMobileGamingOut of Home

ContingencyCommission

Check, please!

$35,729,758$12,779,172

$160,000$10,799,496

$6,671,773$16,988

$400,000$25,272,980

$1,147,877$7,021,955

New York, NYLos Angeles, CAChicago, ILPhiladelphia, PASan Francisco/Oakland/San Jose, CADallas/Fort Worth, TXBoston, MAWashington DCAtlanta, GAHouston, TX

Detroit, MIPhoenix, AZSeattle/Tacoma, WAMinneapolis/St. Paul, MNCleveland, OHTampa/St. Petersburg, FLMiami/Ft. Lauderdale, FLOrlando/Daytona Beach/Melbourne, FLSacramento/Stockton/Modesto, CASan Diego, CA

Top 20 Markets for Extending Heart

32

The scorecards are in

MetricsOur campaign generates more than 22 billion media impressions. Of these, roughly 3.9 billion media impressions reach Her. Our reach with Extending Heart will move Her up the Pyramid of Brand Loyalty, thus bringing Her into the store more often. The increase in shopping trips depends on where She currently lies on the Pyramid of Brand Loyalty.

As a whole, Extending Heart will increase Her annual shopping trips by an average of 1.25 trips to jcpenney per year. This includes the acquisition of new customers in our target market. We are confident that Extending Heart can generate this optimistic increase in store visits.

Post-TestingAs a final research phase, we conducted post-testing in the form a focus group to test creative concepts and finalize our campaign direction. Participants identified with our messaging and responded positively to the Big Idea, Creative Vision, and tagline. Here are their thoughts:

“My moments don’t have to be monumental, it could be how my little boy smelt a particular day or how I felt on my wedding day. For whatever reason I flash back on that particular moment.” “It makes me think of when I put my heart into something and give it 100 percent to make my moments as special as possible without letting them slip by.” “It’s not just a place where you go buy things but it is more community based.” “When you stick ‘Your life is our department’ in that context, I’m directly thinking of the departments in there that will help my life.” “I see it as jcpenney extending their heart. It’s a warm statement, a heartfelt statement.”

PitchShe is making transitions that lay down the foundation of Her life, whether it is buying a home, growing a family or establishing Her career. We have the opportunity to build brand loyalty as She moves through life’s changes by aligning ourselves with the things She cares about. She wants to focus on the people She loves, and the relationships She builds. Through Extending Heart, we will be integrated into Her moments as She equates Her jcpenney purchases with extending gratitude, appreciation and love. We will develop an emotional connection with Her as we align with the things that mean the most to Her, in every department of Her life.

PyramidAnnual

Shopping TripsTargeted Annual Shopping Trips

33

Public RelationsChelsea Freitas, PR DirectorBryce AndersonKaitlyn HalamudaStephanie KentJoel PorterJillian SoremJustin StatonAubrey SwiftDayna Wolpa

PromotionsAmy Chase, Promotions DirectorAshley CoffeyEric DaviesEmma DavisCaitlin GriffinKristen KubiakSam MilitanteMark PerringTaylor Underwood

the advocates of #boycottsleep

ExecutivesLexi Vanni, Chief Operations OfficerAnna Duffy, Chief Strategy OfficerSimon Blockley, Chief Creative Officer

Nick Dudgeon, AP DirectorJon-Michael Herrmann, AP DirectorBrian ChandraNathalie ConKayla GlassLaura HantkeMallory JacksonAlicia McManigalAnne PortwoodLauren Schreiber

Emily Sopo, Media DirectorAlyssa Aoki, Budget CoordinatorVee BrothwellMaddy DuyckRobby FurrerMatt JekowskyGenevieve LauSamantha RoperMassis Shahmirian

Bob BassettChris BroganChapman Department of ArtEric ChimentiJim DotiThe Duffy FamilyDodge CollegeJudy ElmoreSeth GodinCheril HendryMesa Goathill Go-Getters 4-HMichele KennedyDezso MagyarMK PrintingJerry PriceRay RoschmannVeston RoweRobert SevalyJanell ShearerDaniele StruppaPete Vander Pluym

Account Planning

Creative

Media

Special Thanks

Advisor

Myles Scovill, Creative DirectorAriel Fisher, Creative DirectorKate Eglen, Senior Art DirectorAli LaBelle, Art DirectorRachael Morello, Art DirectorMolly Hersh, CopywriterJames Ramsay, CopywriterChris Cresci, ProductionKellen Moore, ProductionJocelyn R.C., ProductionCK Spitler, Production

Cory O’Connor