Strategic Brand Management

Professor Rodrigo Espinosa GGU Fall 2012

Anh Tran (Anh)Chantrapa Khuhaprema (DeeDee)Piyanuch Kangwankijwanich (Tu)Supinya Simanuruk (Gift)

Brand Audit• Company overview & Marketing mix• SWOT analysis• Competitors• Target markets• Brand Equity

– Effective works: JCP’s statement, Good partnership, Brand elements– Ineffective works: Brand extension, Brand awareness, Brand image, Brand positioning

JCP’s Goal and Strategies“Great store experience”

Brand Building Tactics • Choosing brand element• Designing marketing mix• Integrating marketing communications • Leveraging secondary brand association

Brand measurement Qualitative and Quantitative research

         

Agenda

BRAND AUDIT

Found in 1902, Wyoming, by James Cash PennyOne of the largest retail stores chain in the U.S.Current CEO, Ron Johnson

Product: apparel, home furnishings, fine jewelry, footwear, accessories, beautyServices: salon, optician, wedding

Price: Fair & Square pricing strategy3 types: Everyday, Month-long, & Best Friday

Place• Extensive network of physical stores• Online store & catalog order

PromotionAdvertising (TV, Radio, Print, Online), Sell promotions (free service), Direct marketing (Catalog), Internet (website, social media)

Company Overview & Marketing Mix

Sources: jcp.com, http://myuberlife.com

Strengths• Strong established store network• Primarily in mall and large traffic• Lower price point, Quality products• Exclusive brand partnerships

SWOT Analysis

Weaknesses• Less staffs

Opportunities• Rising of consumers purchasing private brands• Increasing Internet shoppers• Building bond with customers

Threats• High competition• U.S. economic downturn• Lack of consumer confidence in brand value, style, quality

Kohl’s is a reliable bargain source

for the entire family with choices for

all ages.

Competitors

Source: Mergentonline

“Macy’s makes the top designer

brands accessible for everyone”

“Expect more. Pay less.”

“Target is the place for the budget

and quality conscious shopper”

Target Markets

Housewives who - are family-oriented

- want convenience, one stop shop- are price sensitive

Young adults who - are hip and fashion-conscious

- are occasional shoppers

Single Mom who -is practical and loyal shopper

-is family-oriented-is budget-conscious

BRAND AUDIT: EFFECTIVE WORKS

Brand Equity

JCP’s statement: “American favorite store”

• By making the store appeal in ways outside of simply showcasing the

merchandise in the store

They want customers to feel good about going to a JCP store;

they want it to be their favorite experience

Brand Equity

Good partnership e.g. Sephora

• Increase interest and awareness both JCP and Sephora

– Enable to compete with Macy’s “Impulse Beauty” e.g. Dior, Laura Mercier

• Open the door for more prestigious temporary partnerships.

Source: http://library.ndsu.edu/tools/dspace/load/?file=/repository/bitstream/handle/10365/19627/Alisha%20Liane%20Ostlund.pdf?sequence=1

Brand Equity

Brand Elements

• Brand name: Change from J.C. Penney to JCP Penny represents the thoughts of “thriftiness” or “bargain-hunting”

• Logo design: Emphasis on “Fair and Square” pricing The logo is new sentiment value, “less-confusing-easier-to-understand”

• Color: the America flag (red, blue, white)Due to rich heritage, JCP reinforces a position of traditional American retailer

Source: http://myuberlife.com

BRAND AUDIT: INEFFECTIVE WORKS

Brand Equity

Brand Extension: JCP Apparels • Exclusive brand dedicated to high-quality fashion basic.

• Everyday low priced

• Easy to mix and match the outfit with simple color

• JCP had arranged the shop by color, so easy to mix

and match selections in that color.

However

“Their quality levels are no better than those at WalMart, and below that of Target”

“I don’t personally like the new pricing strategy or layout, and the quality of the clothing has deteriorated.”

JCP want to compete with either good price with low quality.. Or good quality with reasonable price?

Brand Equity

Brand Awareness: Know but dislike

Sources: http://www.reuters.com, http://www.businessinsider.com, www.slideshare.net, http://www.cleveland.com

• Brand RecognitionConsumers realize the new brand name and logo

However

• Brand RecallDue to unfulfilled needs, JCP has no place in consumer’s considerations

“JCP is still not my brand” “I found no good reasons to shop there”“I prefer Macy’s or Bloomingdale to JCP because of the varieties”“Think brand names, go NordStorm, Neiman Marcus, or Sax Fifth”

JCP wanna be Mass merchandisers like Kmart orupscale department stores like Macy’s, Bloomingdales’s, Nordstrom?

Brand Equity

Brand Image

• Brand Personality– New logo: fresh, iconic and evocative – Fair & Square = honest & simple

• Brand Positioning & Value

– America's shopping destination for discovering great styles at compelling prices

– American favorite store

•JCP’s performances do not reach its claims•Consumers go to other stores because they confuse with the new pricing•JCP’s sales is continually dropping

However

Source: http://www.identityworks.com/reviews/2012/JCPenney.htm

Brand Equity

Brand Positioning

Share value drop

BUSINESS GOAL&BRAND STRATEGY

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

Business Goal

Brand Strategy

Pricing focus Great store experience

Sources: http://www.businessinsider.com/, http://www.cleveland.com,

• Free deals satisfy customers in short-term, no long-term profits

Also, it can be easily disappointed for customers when they have to wait in line or being unhappy with the haircut “Can JCP really sell in high volume to make profits like Walmart?”

• Everyday-low-price is weaker than great “Deal”

“Since I can go to JCP whenever I want, what’s my incentive to go there now?”

“Why should I go to JCP on X’mas when every mall also has SALE?”

BRAND TACTICS

Brand Tactics

Choosing Brand Elements

Go on with the new name, logo, and taglineJCP as well as Fair and Square is memorable, meaningful, and likable

However

Must be consistency• Use jcpenney.com for the transition stage, emphasize jcp.com in the future• Change the store logo and interior decoration only some branches

Current URL andcompany’ s name

Brand Tactics

Designing Marketing Mix

Source: http://myuberlife.com

Product: “Value Added product and services”

• Increase products and services both in breadth and depth

• Offers products in nice packages

Price: “Price should end with 0 instead of 99”

• Remove Everyday-Low-Price because it provides skim profits

• Cancel Month-long-Value because 12 sale events are like Everyday-Low-Price

• Terminate Best-Price-Friday because too-often sale doesn’t motivate shopper

Brand Tactics

Place: In-store experience Encourage shoppers to shop longer

• Great customer services: return policy, friendly & helpful staffs

• Beyond expected services: salon, restaurants, theatres, playgrounds

• Comfortable atmosphere: well-organize products, soft waiting seats, cozy lighting

• Outstanding decoration: colorful

Return policy advertising

JCP’s salon

Designing Marketing Mix

Brand Tactics

Designing Marketing Mix

Place: Online store experience User-friendly & one-stop service website

• Rearrange value chain system by focus more on e-commerce and mobile app

• Free shipping with minimum purchase

• Free return within 30 days both online and in-store (exchange or refund in credit)

• Update website often

• Engage with customers via social media

Brand Tactics

Integrated Marketing Communication

Advertising

• mass media targeting moms and housewives

TV + Sponsorship: Ellen show

Radio + Online: Pandora, Spotify

Advertorial: Parenting, Better Homes, Tastes of homes, Woman’s day, etc

Banners + Sponsorship: mom bloggers

Public Relations

• Send press release about repositioning and rebranding stories

• Build relationship with media through open house method

• Create articles about sponsorship & cause marketing to improve brand image- Part of JCP’s profits will be distributed to organizations

Brand Tactics

Integrated Marketing Communication

Sale promotions

• Pull Strategies: No more clearance, focus on unique service

• Go on with current great campaign e.g. “Free haircut on Sunday”

• Push Strategies: Cooperate with partner by focusing on “Win-Win situation”

• Go on with “Partnership strategies” e.g. Sephora

Direct marketing: • Change from monthly catalog to seasonal catalog• Implement SMS & email marketing

Brand Tactics

Leveraging secondary brand association

• Partnershipwell-known brands such as MNG, Levi’s, Liz Claiborne, Izod, Sephora, Martha stewart, etc.

• SpokespersonEllen DeGeneres, a nationwide popular talk show host New CEO , Ron Johnson, could PR himself

BRAND MEASUREMENT

Brand Measurement

Brand Equity Measurement

Qualitative research

• Post-event Follow Up: Ask presses & bloggers about their shopping experiences

• Monitor publicity: Press clippings news about JCP

Take down quotes and use as a blueprint to develop business

Quantitative research• Online Customer’s satisfaction Survey (for memberships)

JCP may provide incentives to stimulate customer’s participations by offering discounts or gift vouchers for the next purchase

• Receipt survey (for non-memberships to get new customer’s database)Log in to JCP’s website, put code from receipts, and do the surveyCustomers will get discounts or gift vouchers for the next purchase

THANK YOU