1. Strategic Brand Management
Professor Rodrigo Espinosa
GGU Fall 2012
Anh Tran (Anh)
Chantrapa Khuhaprema (DeeDee)
Piyanuch Kangwankijwanich (Tu)
Supinya Simanuruk (Gift)

2. Agenda
Brand Audit
• Company overview & Marketing mix
• SWOT analysis
• Competitors
• Target markets
• Brand Equity
– Effective works: JCP’s statement, Good partnership, Brand elements
– Ineffective works: Brand extension, Brand awareness, Brand image, Brand positioning
JCP’s Goal and Strategies
“Great store experience”
Brand Building Tactics
• Choosing brand element
• Designing marketing mix
• Integrating marketing communications
• Leveraging secondary brand association
Brand measurement
Qualitative and Quantitative research

3. BRAND AUDIT

4. Company Overview & Marketing Mix
Found in 1902, Wyoming, by James Cash Penny
One of the largest retail stores chain in the U.S.
Current CEO, Ron Johnson
Product: apparel, home furnishings, fine jewelry, footwear, accessories, beauty
Services: salon, optician, wedding
Price: Fair & Square pricing strategy
3 types: Everyday, Month-long, & Best Friday
Place
• Extensive network of physical stores
• Online store & catalog order
Promotion
Advertising (TV, Radio, Print, Online), Sell promotions (free service),
Direct marketing (Catalog), Internet (website, social media)
Sources: jcp.com, http://myuberlife.com

5. SWOT Analysis
Strengths
•
•
•
•
Weaknesses
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Strong established store network
Primarily in mall and large traffic
Lower price point, Quality products
Exclusive brand partnerships
Less staffs
Opportunities
Threats
•
Rising of consumers purchasing
private brands
•
Increasing Internet shoppers
•
Building bond with customers
•
High competition
•
U.S. economic downturn
•
Lack of consumer confidence in
brand value, style, quality

6. Competitors
Kohl’s is a reliable bargain source
for the entire family with choices for
all ages.
“Expect more. Pay less.”
“Macy’s makes the top designer
“Target is the place for the budget
brands accessible for everyone”
and quality conscious shopper”
Source: Mergentonline

7. Target Markets
Housewives who
- are family-oriented
- want convenience, one stop shop
- are price sensitive
Young adults who
- are hip and fashion-conscious
- are occasional shoppers
Single Mom who
-is practical and loyal shopper
-is family-oriented
-is budget-conscious

8. BRAND AUDIT:
EFFECTIVE WORKS

9. Brand Equity
JCP’s statement: “American favorite store”
•
By making the store appeal in ways outside of simply showcasing the
merchandise in the store
They want customers to feel good about going to a JCP store;
they want it to be their favorite experience

10. Brand Equity
Good partnership e.g. Sephora
•
Increase interest and awareness both JCP and Sephora
– Enable to compete with Macy’s “Impulse Beauty” e.g. Dior, Laura Mercier
•
Open the door for more prestigious temporary partnerships.
Source: http://library.ndsu.edu/tools/dspace/load/?file=/repository/bitstream/handle/10365/19627/Alisha%20Liane%20Ostlund.pdf?sequence=1

11. Brand Equity
Brand Elements
Brand name: Change from J.C. Penney to JCP
Penny represents the thoughts of “thriftiness” or “bargain-hunting”
Logo design: Emphasis on “Fair and Square” pricing
The logo is new sentiment value, “less-confusing-easier-to-understand”
Color: the America flag (red, blue, white)
Due to rich heritage, JCP reinforces a position of traditional American retailer
Source: http://myuberlife.com

12. BRAND AUDIT:
INEFFECTIVE WORKS

13. Brand Equity
Brand Extension: JCP Apparels
•
•
•
•
Exclusive brand dedicated to high-quality fashion basic.
Everyday low priced
Easy to mix and match the outfit with simple color
JCP had arranged the shop by color, so easy to mix
and match selections in that color.
However
“Their quality levels are no better than those at WalMart, and below that of Target”
“I don’t personally like the new pricing strategy or layout, and the quality of the clothing has deteriorated.”
JCP want to compete with either good price with low
quality..
Or good quality with reasonable price?

14. Brand Equity
Brand Awareness: Know but dislike
•
Brand Recognition
Consumers realize the new brand name and logo
However
•
Brand Recall
Due to unfulfilled needs, JCP has no place in consumer’s considerations
“JCP is still not my brand” “I found no good reasons to shop there”
“I prefer Macy’s or Bloomingdale to JCP because of the varieties”
“Think brand names, go NordStorm, Neiman Marcus, or Sax Fifth”
JCP wanna be Mass merchandisers like Kmart or
upscale department stores like Macy’s, Bloomingdales’s, Nordstrom?
Sources: http://www.reuters.com, http://www.businessinsider.com, www.slideshare.net, http://www.cleveland.com

15. Brand Equity
Brand Image
•
Brand Personality
– New logo: fresh, iconic and evocative
– Fair & Square = honest & simple
•
Brand Positioning & Value
– America's shopping destination for discovering great styles at compelling
prices
– American favorite store
However
•JCP’s performances do not reach its claims
•Consumers go to other stores because they confuse with the new pricing
•JCP’s sales is continually dropping
Source: http://www.identityworks.com/reviews/2012/JCPenney.htm

16. Brand Equity
Brand Positioning
Share value drop

17. BUSINESS GOAL
&
BRAND STRATEGY

18. Business Goal
Change JCP image in consumer’s perception from old and confusion to
American’s favorite store

19. Brand Strategy
Pricing focus
Great store experience
•
Free deals satisfy customers in short-term, no long-term profits
Also, it can be easily disappointed for customers when they have to wait in line
or being unhappy with the haircut
“Can JCP really sell in high volume to make profits like Walmart?”
•
Everyday-low-price is weaker than great “Deal”
“Since I can go to JCP whenever I want, what’s my incentive to go there now?”
“Why should I go to JCP on X’mas when every mall also has SALE?”
Sources: http://www.businessinsider.com/, http://www.cleveland.com,

20. BRAND TACTICS

21. Brand Tactics
Choosing Brand Elements
Go on with the new name, logo, and tagline
JCP as well as Fair and Square is memorable, meaningful, and likable
However
Must be consistency
• Use jcpenney.com for the transition stage, emphasize jcp.com in the future
• Change the store logo and interior decoration only some branches
Current
URL
and
company’ s name

22. Brand Tactics
Designing Marketing Mix
Product: “Value Added product and services”
•
Increase products and services both in breadth and depth
•
Offers products in nice packages
Price: “Price should end with 0 instead of 99”
•
Remove Everyday-Low-Price because it provides skim profits
•
Cancel Month-long-Value because 12 sale events are like Everyday-Low-Price
•
Terminate Best-Price-Friday because too-often sale doesn’t motivate shopper
Source: http://myuberlife.com

23. Brand Tactics
Designing Marketing Mix
Place: In-store experience
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•
•
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Encourage shoppers to shop longer
Great customer services: return policy, friendly & helpful staffs
Beyond expected services: salon, restaurants, theatres, playgrounds
Comfortable atmosphere: well-organize products, soft waiting seats, cozy lighting
Outstanding decoration: colorful
Return policy advertising
JCP’s salon

24. Brand Tactics
Designing Marketing Mix
Place: Online store experience
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•
•
•
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User-friendly & one-stop service website
Rearrange value chain system by focus more on e-commerce and mobile app
Free shipping with minimum purchase
Free return within 30 days both online and in-store (exchange or refund in credit)
Update website often
Engage with customers via social media

25. Brand Tactics
Integrated Marketing Communication
Advertising
• mass media targeting moms and housewives
TV + Sponsorship: Ellen show
Radio + Online: Pandora, Spotify
Advertorial: Parenting, Better Homes, Tastes of homes, Woman’s day, etc
Banners + Sponsorship: mom bloggers
Public Relations
• Send press release about repositioning and rebranding stories
• Build relationship with media through open house method
• Create articles about sponsorship & cause marketing to improve brand image
- Part of JCP’s profits will be distributed to organizations

26. Brand Tactics
Integrated Marketing Communication
Sale promotions
• Pull Strategies: No more clearance, focus on unique service
• Go on with current great campaign e.g. “Free haircut on Sunday”
• Push Strategies: Cooperate with partner by focusing on “Win-Win situation”
• Go on with “Partnership strategies” e.g. Sephora
Direct marketing:
• Change from monthly catalog to seasonal catalog
• Implement SMS & email marketing

27. Brand Tactics
Leveraging secondary brand association
•
Partnership
well-known brands such as MNG, Levi’s, Liz Claiborne, Izod, Sephora, Martha
stewart, etc.
•
Spokesperson
Ellen DeGeneres, a nationwide popular talk show host
New CEO , Ron Johnson, could PR himself

28. BRAND MEASUREMENT

29. Brand Measurement
Brand Equity Measurement
Qualitative research
• Post-event Follow Up: Ask presses & bloggers about their shopping experiences
• Monitor publicity: Press clippings news about JCP
Take down quotes and use as a blueprint to develop business
Quantitative research
• Online Customer’s satisfaction Survey (for memberships)
JCP may provide incentives to stimulate customer’s participations by offering
discounts or gift vouchers for the next purchase
•
Receipt survey (for non-memberships to get new customer’s database)
Log in to JCP’s website, put code from receipts, and do the survey
Customers will get discounts or gift vouchers for the next purchase

30. THANK YOU