Integrated Strategic Marketing Plan

Integrated Strategic Marketing Plan

Diana Gilbert, TaShannah Crippen, Trevor Bremer, Marla Bernal

Marketing Strategy and Design

Baker College Online

Professor Harry Derderian

10, May, 2017

Product Overview

Introduction

JC Penney is a large chain of publicly traded department stores with a history dating back to the early 1900’s. There have been over 1000 physical stores opened within the United States and Puerto Rico. These popular department stores offer one stop shopping including, optometry, portrait studios, clothing, accessories, shoes, fine jewelry, and more for all ages and genders. Gaining a lot of customer loyalty with the baby boomer generation with the JC Penney catalog which launched in the 1960’s, the JC Penney brand is probably one of most well-known companies in America. They were also the first national corporation to get on board with e-commerce by launching jcpenney.com in 1994.

Problem Statement and Issues

The problem is that what JC Penney did in the past to lead the industry is no longer working for them. The company is suffering a decrease in sales and planning to close 140 stores in the near future. With the increase of competition and online shopping, the physical stores are just not bringing in the sales they used to. Although JC Penney used to be the go to place for all of a family’s needs, that is not the case today. They may have led the market in being the first to offer online shopping, the image and brand has yet to attract the newer generation of shoppers. The millennials are very savvy about online shopping, have the ability to comparison shop and prefer to buy from more edgy and trendy brands.

Advertising/Marketing Objectives

Main objectives for marketing and advertising in this campaign are redeveloping the brand to a younger demographic and promoting new product line , Ivy Park and a J.C. Penney men’s fitness clothing brand, that align with achieving the brand redevelopment. Reaching the new target market through an increased social media presence and increasing sales revenues as a result are additional objectives.

Campaign Aims

Brand Recognition - Increase brand recognition of new clothing lines by creating a television advertisement showcasing them and focusing efforts on highly popular social media networks to reach the new campaign target market of millennials; Facebook, Twitter, Instagram, etc.

Sales Growth / Increase Sales - During the quarter, JC Penney only reached $3.96 billion in revenue (Gustafson, 2017). One of JC Penney’s main competitors, Target, reached $20.69 billion in revenue (Gustafson, 2017). Increasing JC Penney’s revenue share to at least $8 billion by 2019 and $16 billion by 2020 is a campaign aim. In 2007, shares reached $85 but are now only holding steady at $8 since 2015 (Tribune Media Wire, 2016). Increasing sales more than would be considered “just slightly” is a campaign aim; a growth to $16 a share by 2019 and $32 a share by 2020 is the initial revenue aims.

Increase Online Visibility - In order to increase revenues, there needs to be more marketing focus on the new target market and reaching them where they spend a lot of their time. A campaign aim is to increase online visibility; this means making sure there is a strong JC Penney presence on as many social media networks as possible and the company website is well developed with efficient optimization, including search engine optimization.

Strengthen Social Media Presence - Showcase the new product lines on social media networks and run some promotional events that will get the target market interacting and talking about the changes being made; run a social media competition for best JCPenney look, start a fitness group of people wearing Ivy Park, etc. Creating more attractive display pictures and account features will also be a part of this aim.

Product Profile

JCPenney offers merchandise from multiple product categories. They also provide multiple services tailored to each store location per their consumer geographic such as optometry, photography, wedding registries, and home décor consultation.

Over half of their product offerings are private labels. JC Penney’s private label brands generate gross profit margins that are three-to-five percent higher than national brands. These brands are sold under various brands such as JC Penney, JCP, Liz Claiborne, Okie Dokie, Worthington, a.n.a, St. John’s Bay, Arizona Jean Company, Ambrielle Decree, Stafford, J. Ferrer, JC Penney Home Collection, Monet, Xesion, and Total Girl. With the recent decline of sales, we recommend that the company expand potential customers by bringing in a private label that could possibly appeal to Millennials.

Product Name

Ivy Park is an active wear clothing line that was created in 2016 and was a joint venture between Beyoncé who is a recording artist and actress and Topshop which operates under the company Parkwood Topshop Athletic. The main goal of this product is to push the boundaries of athletic wear that helps women feel comfortable in their body, which shows beauty is more important than appearance.

Product Classification & Product Characteristic

Ivy Park is an active wear brand for woman that is very fashion forward with designs that contain technical innovations. This brand is a new edgy kind of performance wear that has notes of modern essentials for both on and off the field.

Distribution

JC Penney will distribute their products and clothing lines across physical stores and online stores. The new and previous clothing lines will be widely available through every store with a variety of selections. The additional clothing lines will be delivered to each store in a timely manner, and they will be available online as quick as possible. The online store will ship both nationwide and worldwide, with faster shipping within the United States.

Product Life Cycle

JC Penney keeps a variety of clothing lines that will cycle at certain times during their sales lifespan. Some items will be seasonal specific and have limited availability through clothing lines like Ivy Park. These times can vary, and should not be expected to be similar to previous lines, as they will change on their own basis from the main distributer.

The Brand

JC Penney is looking forward to this newly renovated brand as a whole. Bringing in new clothing lines like Ivy Park will be hold a new opportunity to strengthen the brand and aim for a target audience of millennials. With these changes, JC Penney will stay true to their values (loyal, passion, courage and service). Everything at our core has been kept the same, but product lines and target audiences have been enhanced and rethought.

The Company

Company Overview

J.C. Penney Corporation operates many department stores offering merchandise and services to the consumer. The J.C. Penney Corporation offers both retail catalog and internet retailing. J.C. Penney began in 1902 in Plano, Texas selling an assortment of family apparel, footwear, and various accessories. The company operates under a subsidiary of the J.C. Penney Company, Inc.

Business Description

J.C. Penney department stores have 1,014 locations in the 49 U.S. States and Puerto Rico. Many of the U.S. locations have several leased departments such as Sephora, Seattle’s Best Coffee, different beauty salons, optical options and a portrait studio. Many of the J.C. Penney stores are located within suburban shopping malls. Penney’s is responsible for outfitting consumers with many different brands of clothing.

Company History

J.C. Penney’s early history and incorporation began in 1902 with James Cash Penney who was born in Hamilton, Missouri. After James graduated from high school he began working at a local retailer and then relocated to Colorado because his doctor suggested his health would improve if he was in warmer weather. After working for a dry good store owned by Thomas Callahan and Guy Johnson who started Golden Rule stores, Penney was transferred between Colorado and Wyoming. Penney split off on his own with his savings and a loan he began J.C. Penney Company on April 14, 1902 in Kemmerer, Wyoming. To move history along by 1912 there were 34 stores in the Rocky Mountain State (jcpenny.com, 2017).

Through the 1960’s to 1980 J.C. Penney acquired General Merchandise Company, and in 1963 J.C. Penney issues its first catalog. The in-store catalogs were distributed out of Milwaukee.

In February of 1971 James Cash died at the age of 95, after his death the company’s revenues skyrocketed to $5 billion and the company's catalog made a profit for the first time. In 1973 J.C. Penney had a total of 2053 stores. In 1998 J.C. Penney launched its first internet store. 2000-2009 J.C. Penney Stores began to do some restructuring and closed some its underperforming stores, to the current time where they are still closing stores trying to revamp and improve the company.

Key People

Current times bring the discussion of individuals who play a key role in the operations. The Executive Board of Penney’s consist of the Chairman, President & CEO Marvin Ellison, Dennis P. Miller, Senior Vice President, Michael Porter Vice President and Director Debora A. Plunkett (jcpenny.com). These individuals have come into play most recently with the stock market performance of the JCP stock shares being down more than 25%; which has forced the price of stock down to $5.50, its lowest point in 30 years. There are huge competitors like Macy’s, Kohl’s and Nordstrom that they must compete with. This Executive Team has even more difficult decision with Amazon and many online bargain stores taking over the consumer buying power.

Locations and Subsidiaries

Despite plans to close 140 stores in the near future, JC Penney still has about a thousand store locations throughout the United States and Puerto Rico. Besides the physical store locations, JC Penney has a home office located in Plano, Texas, thirteen different supply chain facilities, and a design studio in New York City. Merchandise is also made easily available internationally through jcpenney.com. Their partnership with Borderfree, an e-commerce company, allows them to deliver goods to 80 different countries. There are also several quality assurance offices located in different countries and an in-house global center in Bangladesh, India. JC Penney does not currently have any subsidiaries but they do have several private brands (J.C. Penney, 2017).

Brands, Major Products and Services

Part of their recent strategy to revive the JC Penney name and regain sales was to launch more private brands. The most recent are The Collection by Michael Strahan, Disney apparel by Okie Dokie, and Belle & Sky. Other exclusive brands include Arizona, St. John’s Bay, Liz Claiborne, A.N.A. Ambrielle, Worthington, J. Ferrar (JF), Xersion and JCP Home (Bailey, 2016). Dozens of national brands are available to customers and they also offer many types of products for home, bed and bath, furniture, kitchen, and appliances. Apparel includes clothing for men, women, and children, shoes, clothing, handbags, jewelry, accessories, intimates, lingerie, and more. Services include salon services, photography, and optical services (J.C. Penney, 2017).

Corporate Vision

Focusing on the three strategic priorities of strengthening private brands, becoming a world class omni-channel retailer, and increasing revenue per customer is the corporate focus of J.C. Penney (J.C. Penney, 2017).

Mission Statement

At JC Penney, we are on a mission to ensure every customer’s shopping experience is worth her time, money, and effort. ‘Get your Penny’s worth’ is our brand promise to deliver compelling value with an enticing array of private, exclusive, and national brands (J.C. Penney, 2017).

Company’s Current Promotional Strategy

With a new outlook on product lines, fashion lines and a target audience as a whole, promotional strategy is going to be very important towards JC Penney and the changes to come. With a plan to create an environment catered towards a younger audience, JC Penney plans to promote a strategy very new and welcoming towards this millennial audience. Whether it is partnerships, new store layouts, or newly redesigned advertising and branding, a new look is going to be promoted to rekindle the values that JC Penney once held onto. Partnerships with these fashion lines, such as Ivy Park, are going to allow for more opportunities with new audiences. Promotions will be run to make these fashion lines very apparent and shine light to the new direction the company is taking. Upon these promotions, discounts for students will be offered to strengthen the relationship with this specific audience, and seasonal sales will still be a very big part of the company.

Product Sales History

It is without a doubt that JC Penney has suffered forms of financial problems in the past few years. According to the sales charts, JC Penney stock fell about 19% on May 16, 2012 (O’brien, 2014). These changes were a result of new management, new ideas, and a new structure. Sales have slowly inclined, and while some have questioned whether the stocks will ever return to their normal rates, this is an opportunity for a drastic change, a positive change. JC Penney is looking to switch gears to welcoming a new audience. It will focus on the products that have sold well in the past and eliminating those that haven’t.

Current Marketing Objective

As a company, the marketing objective is substantially different than before. The objective is to redefine and refresh an existing brand into something that has higher appeal and a bigger return on investment. The younger target audience will help lead the way in the sense that they will be deciding how the company starts to shape towards their interests, and grow alongside modern fashion trends. New and innovative fashion lines will be the heart of the company, while the company’s values serve as the brain and form the structure.

Media Expenditure

The most important factor for the company’s media expenditure is allowing the trust in our marketing and sales teams to welcome new fashion lines that have never set foot inside JC Penney. The budget for these fashion lines will be a great focus, as the partnerships with them will be too. There will be many ads ran through digital, print, TV and radio as well. Advertising to our audience will have a significant impact on how we are perceived and judged by everyone. Allowing increased budget toward store design, new products and other promotions and plans will become a reality for the company.

SWOT Analysis

In order to fully understand the current position of J.C. Penney and the ways in which improvement and campaign suggestions may enhance performance, it is important to conduct a SWOT analysis of the company. Strengths, weaknesses, opportunities, and threats both inside and outside the organization are revealed when a SWOT analysis is conducted on a company. A SWOT analysis for J.C. Penney is provided below.

Strengths

J.C. Penney has various strengths that range over a variety of areas. After a thirty three year hiatus, J.C. Penney has begun selling appliances again (Wahba, 2016). Selling appliances again is proving to be successful for J.C. Penney as it is planning to expand appliance showrooms to an additional one hundred stores, despite planning to close more than one hundred and thirty other stores (Northrup, 2017). J.C. Penney is capable of great revenue performance as shown in its past reports (J.C. Penney, 2017). A customer first initiative is taken by the company and they even offer free haircuts for kids to demonstrate this; customer retention is supported through this, which eventually leads to increased traffic and sales (Adam, 2015). Products and services are offered on vast levels because of the existence of multiple retail channels (Adam, 2015). Different private labels have been launched by J.C. Penney and the company has a relatively balanced brand portfolio; St. John’s Bay, Arizona jeans, etc. (Wahba, 2014). Bringing back private brands has been proving successful (Wahba, 2014). Despite the company’s many strengths, there are still some weaknesses that need to be addressed.

Weaknesses

There are some weaknesses present for J.C. Penney and this marketing plan may be able to lead the transformation of these weaknesses to strengths over the next couple years. Inconsistency in stores may be the cause of varied assortment (Global Compose, 2016). Store sales have experienced a great decline for J.C. Penney (Adam, 2015). Due to competitors with similar offerings, J.C. Penney has a limited market share (Global Compose, 2016). J.C. Penney is experiencing poor monthly sales data (Adam, 2015). Especially in emerging economies and in comparison to some competition, global presence for J.C. Penney is low (Global Compose, 2016). J.C. Penney also has various opportunities available to the company.

Opportunities

A few different opportunities exist for J.C. Penney that should be considered to strengthen the company and brand. According to the Huffington Post, the most influential and largest group in terms of employment and consuming is millennials; representing just under two and a half trillion dollars in spending power, $2.45 trillion and this could be exploited by offering brands like Ivy Park and Young and Reckless (Global Compose, 2016, & Mak, 2016). Connections with smaller retail chains are another opportunity for J.C. Penney (Adam, 2015). Connecting with new brands like Ivy Park and Young and Reckless to sell these brands in J.C. Penney stores and online could better reach the millennial target audience. Especially in emerging economies, an opportunity for J.C. Penney is tapping into the international markets more; expand to emerging developing countries like India with their cost leadership strategy (Global Compose, 2016, & Reference for Business, 2017). Through advertising and by offering services that focus on customers, J.C. Penney can enhance its visibility (Global Compose, 2016). A new millennial focus, increased social media presence, and development of a forum or brand connection social platform may be a way to tap into this opportunity. A great example of this can be seen with Ford’s social network; Ford Social. Launching exclusive and private label brands is another opportunity J.C. Penney has (Global Compose, 2016). Launching the new brands targeting millennials and beginning creation of a J.C. Penney millennial aligned brand may be a way to capitalize on this opportunity. Creation of a J.C. Penney clothing brand for millennials will ensure targeting abilities even if partnerships with other popular brands end. In addition to strengths, weaknesses, and opportunities, J.C. Penney also faces various threats.

Threats

Threats exist for J.C. Penney that should be considered and addressed. One threat is J.C. Penney is losing market share to major competitors like Macy’s and Kohl’s as they are expanding due to offering what the target audience wants from them (Global Compose, 2016). Expanding is possible by connecting with and adding new brands, creating a presence in emerging developing countries like India and Brazil, and enhancing online presence to increase company reach; ensuring to have a website for as many different countries as possible and shipping options available to each. An additional threat J.C. Penney faces is the economy even though the company plays at the price point level (Global Compose, 2016). Another threat J.C. Penney faces is the rising cost of labor in its country of operation; the United States (Global Compose, 2016). Under the new administration, cost of labor may become less of an issue for J.C. Penney. However, it may be beneficial for the company to consider opening up to manufacturing opportunities outside the United States to decrease costs.

Industry and Marketplace

The Industry

The retail industry is interwoven into every part of our daily life.  Anything that can be considered a retail sale which is a measure of broad consumer spending is considered a part of the retail industry. The United States in fact has a very well established set up of distribution to all types of retail companies. This industry is a very competitive environment that creates healthy business operations and increases efficiency and reliability ("Retail Trade Industry Spotlight | SelectUSA.gov," n.d.). Within the retail industry there are sub levels which consist of retailers and franchisers.

Companies within the industry compete for market share based on the economies of scale, the tight cost controls, and the investment of the brand image itself. This type of competition pretty much eliminates any new possibility of new competitors coming into the marketplace. Many products within the industry are similar, there is a lower threat of substitute products is high and switching costs for buyers is very low ("J.C. PENNEY CORPORATION, INC. Names of Competitors). These companies try to compete on pricing but maintain the quality of their products.

Definition of the Industry

The proper definition of the word “Industry” is the economic activity concerned with the processing of raw materials and manufacture of goods in a factory ("Industry | Definition of Industry by Merriam-Webster). Retail companies like J.C. Penney try to differentiate their product lines.  J.C. Penney is a very big example of how marketing strategy can help to increase the company’s market share within the clothing industry. With many of J.C. Penney’s contracts and patents that are created, the bargaining power of the company’s supplier base jumps from a low to a moderate level ("J C Penney Co Inc Comparisons to its Competitors, Market share and Competitiveness by, 2015).

Key factors that come into play within this industry are the important roles outlined by gaining a competitive advantage. These key factors are within the department store retail industry and the scale of the economy. There are other factors like lower input costs, and an increased investment in brand image. For J.C. Penney to stay above the game the key success factors that allow the company to stay one step ahead of the competition, to maintain and even possibly gain more market share they will need to be able to invest more in their brand ("J C Penney Co Inc Comparisons to its Competitors, Market share and Competitiveness by Segment – CSIMarket). With J.C. Penney’s it is very well known that their market share has fallen and with the rebranding our image we are hoping to use the success factors above to increase our profitability and consumer base.  

Shape of the Industry

In 2016, several of the retail chains, including JCPenney, closed the doors on hundreds of their retail stores. Despite this fact, the overall worldwide retail sales totaled $22 billion in 2016 and the current gross domestic product (GDP) average is 30% of income spent on retail (Farfan, 2016). Employment in this industry has been on the rise and as of May 2015, 15.7 million were employed by some type of Retail Company. These numbers indicate a growth in the retail industry which outweighs the downsizing of physical stores and company bankruptcies (Farfan, 2016). Perhaps the store closings are less an indication of a decline in the economy and more of a sign that the industry is changing and evolving.

Development of the Industry

The industry has been in a state of transition for the last twenty or so years. People used to go to malls to hang out and shop around and buy or just see the latest fashions and trends. This was the hobby but now online shopping has become so popular that former brick and mortar stores which used to easily lead in sales are closing their doors. The modern shopper is savvy on the internet and can always find a better price. They love the instant satisfaction of getting an item online instead of going store to store and the opportunity to check and compare prices and keep up with the fashion trends in an instant online. The market has gone full circle from, catalog sales, to department store and mall shopping and now leaning more and more toward online sales.

The Marketplace

The fashion industry is a very focused, rapidly changing, and unpredictable marketplace. There are thousands of brands and stores that are selling clothes every day and not just in store but online retailers as well. Whether it is physically sold or not, there are fashion trends that seem unpredictable in this world, and all it could take is a certain celebrity to wear a piece of clothing to open up new trends for the specific target audience. Fashion United claims that there are 3.2 trillion dollars focused into the fashion and clothing industry. This represents roughly 2 percent of the gross GDP for the entire world.

Condition of the Marketplace

The condition of the marketplace in the fashion industry has definitely seen better days. With thousands of brands and locations, with online retailing as an additional option, the competition is at an all-time high (Fashionating World, 2017). Research states that “A report by McKinsey and London-based publication Business of Fashion last month revealed, nearly 70 percent of surveyed fashion executives, investors and industry observers believe conditions for the industry have become worse.” 2016 had been a horrible year for the industry, and because of it new technologies and methods are emerging by retailers. Many retailers have noticed customers want to see the instant gratification of shopping, and online shopping is creating the scene for the industry. An additional report has suspected that online sales for fashion luxury will see a 12 percent increase by 2020. Customers are definitely changing their old ways by now opting to shop by the click instead of browsing in stores.

Changes in the Marketplace

In conclusion, the biggest changes in the marketplace are both in the methods of selling, and the products themselves. As states previously, the customers are leaning towards an online shopping experience, which is no surprise for some tech savvy followers of these brands. It has been observed by marketing teams themselves that products are selling better online, and getting different ideas in front of the consumer is just simply easier and more successful. These changes will reflect on many stores including the future of JC Penney, who have also focused on digital sales in the recent months.

Competitive Situation

Having a clear understanding of competition, or the competitive situation of a company, is vital to the success of any business. Learning what influences the consumer to choose one product over another is the key when thinking about competition (Oman, 2015). J.C. Penney is considered part of the department stores or retail industry and has many competitors; Kohl’s, Macy’s, Sears, Walmart, Target, Amazon, and Body Paint (Yahoo! Finance, 2017). In the department store industry, J.C. Penney currently has a market share of 7.8% (Thongkham, 2015). Two types of competition exist; direct and indirect. Direct competition competes by selling the same products or services and indirect competition competes for the same market (Oman, 2015). J.C. Penney has both direct and indirect competitors.

Direct Competitors

Direct competition is when similar products are offered by multiple businesses (Oman, 2015). Direct competitors of J.C. Penney include Kohl’s, Macy’s, and Sears; all of which are considered part of the department stores industry and sell similar products (D&B Hoovers, 2017). Each direct competitor should be thoroughly evaluated to properly understand their position in the market and the ways which J.C. Penney can best compete.

Kohls

Kohls is considered a major discounter and since they sell similar products to J.C. Penney; clothing, cookware, jewelry, etc. they are a direct competitor (D&B Hoovers, 2017). Like J.C. Penney, Kohls is facing struggle from recent new competition of other industries; such as, the catalog and mail order industry that Amazon resides in (Bowman, 2017). Unlike J.C. Penney, Kohls has remained consistently profitable and is in a stronger position than J.C. Penney but still experiences issues (Bowman, 2017). For 2016, Kohl’s adjusted earnings per share dropped six percent to $3.76 and comparable sales fell 2.2% in the fourth quarter (Bowman, 2017). Over the last five years Kohl’s stock, revenue, and earnings per share have been flat and the pattern appears to be continuing (Bowman, 2017). Kevin Mansell, CEO of Kohls, has noted intentions to close brick-and-mortar locations and has closed nineteen already last year because of similar decline in revenues that J.C. Penney is experiencing (Bowman, 2017). However, Kohl’s now offers a handsome five percent dividend yield and has raised its dividend to ten percent according to a recent report (Bowman, 2017). In order to increase sales, Mansell touted about an upcoming partnership with Under Armour that specializes in active wear and wellness (Bowman, 2017). A great indicator that J.C. Penney is on the right track by considering partnership with a brand like Ivy Park, who specializes in active wear. Another main direct competitor that J.C. Penney needs to consider is Macy’s.

Macy’s

Similar to Kohl’s, Macy’s is considered a direct competitor of J.C. Penney since they sell similar products but Macy’s targets a more upscale consumer base (D&B Hoovers, 2017). E-commerce competitors and slowed mall traffic over the past few years have hit both department stores hard (Sun, 2017). A decline of nearly thirty percent was experienced by Macy’s stock (Sun, 2017). Providing credit marketing services and financial services, Macy’s has a bank subsidiary, FDS Bank, for Citigroup’s Department Stores National Bank (Sun, 2017). Luxury beauty retailer Bluemercury and the Bloomingdale’s chain of department stores are also owned by Macy’s (Sun, 2017). Compared to eight hundred sixty eight locations at the end of 2015, Macy’s finished last year with eight hundred twenty nine stores under its three brands (Sun, 2017). For eight straight quarters, Macy’s revenue has declined year-over-year; expecting another four percent slide this year, after falling three and a half percent in 2016 (Sun, 2017). Aggressive cost-cutting strategies are expected to lift earnings by eleven percent this year despite Macy’s earnings having declined to $3.11 per share last year, eighteen percent (Sun, 2017). Margins have been falling for Macy’s while margins for J.C. Penney have been improving, if comparing operating margins over the past five years (Sun, 2017). Tapping into higher growth markets, athletic apparel and home improvement, is lacking in Macy’s turnaround strategy (Sun, 2017). In addition to Kohls and Macy’s, another direct competitor of J.C. Penney is Sears.

Sears

Another main competitor of J.C. Penney in the department stores industry is its mall arch-rival, Sears (Wahba, 2016). Continuing the recent revival of its appliance business, J.C. Penney began expanding appliance sales to hundreds of stores after a successful pilot (Wahba, 2016). Seeking to protect its position as the U.S. number one seller of appliances, Sears met the challenge of J.C. Penney with its own deals (Wahba, 2016). Thirty percent off appliances, free delivery on orders over $399, and special financing for a year were offered by Sears, whose parent company Sears Holdings has closed many stores as sales at Kmart and Sears keep decreasing and lost eight billion dollars over the last five fiscal years (Wahba, 2016). An estimate of being a thirty eight billion dollar industry by 2020 is predicted by Euromonitor International for the U.S. home appliance industry after having twenty nine billion dollars in revenue for 2015 (Wahba, 2016). Sears recently said it was testing a small-format chain of stores that focuses solely on appliances but may find some other alternatives to make more money and sell its Kenmore appliance brands (Wahba, 2016). Identifying gaps that a business can fill is made possible by understanding where competitors are positioned (Oman, 2015). Another type of competition that needs addressing is indirect competition.

Indirect Competitors

Indirect competition is when slightly differing products or services are offered with the goal of satisfying the same need by multiple businesses that target the same group of customers (Oman, 2015). Indirect competitors can often be considered substitutes (Oman, 2015). Indirect competitors of J.C. Penney include Walmart, Target, Amazon, Body Paint Services, and more. Each indirect competitor should be thoroughly evaluated to properly understand their position in the market and the ways which J.C. Penney can best compete.

Walmart and Target

Similar to Kohls, Walmart is considered a major discounter but since Walmart belongs to another industry, discount and variety stores, they are considered more indirect competition of J.C. Penney (Thongkham, 2015). Like Walmart, Target is considered a major discounter and belongs to the discount and variety stores industry; making them an indirect competitor of J.C. Penney (Thongkham, 2015). Walmart offers a wide variety of products and services in its stores for discount prices that are difficult to beat. J.C. Penney is susceptible to external competition with Target and Walmart because of its positioning with middle-to-low income households (Thongkham, 2015). Target and Walmart both compete at the low price point level, just like J.C. Penney does, and offer various alternatives to J.C. Penney products and services. For example, Walmart usually has a hair salon in its stores which is a different company but acts as an alternative to J.C. Penney’s salon option. Walmart has a current stock price of 73.89 and Target has a current stock price of 53.60 compared to J.C. Penney’s current stock price of 5.72 (Yahoo! Finance, 2017). Another indirect competitor of J.C. Penney that is a major contributor to its decline is Amazon.

Amazon

Unlike J.C. Penney and other competitors mentioned to this point, Amazon belongs to the catalog and mail order houses industry (Yahoo! Finance, 2017). Amazon offers an alternative to J.C. Penney by having a stronger and completely online platform and offering a larger variety of products and services (Monica, 2017). With significantly less overhead cost than traditional brick-and-mortar buildings, Amazon operating completely online through their website has allowed them to keep costs much lower than competition and offer a wider range of services and products. Combining J.C. Penney, Macy’s, Kohls, Sears, Target, Best Buy, Dillard’s, Nordstrom, Barnes & Noble, and Gap does not even reach the worth of Amazon which carries just above a three hundred seventy billion dollar market value; compared to the combined market value of ninety five billion dollars, forty billion being contributed by Target alone, of all the others (Monica, 2017, & Yahoo! Finance, 2017). Amazon is thriving so much; they even have a market value that is approximately one hundred sixty billion dollars above Walmart’s market value (Monica, 2017, & Yahoo! Finance, 2017). Struggling to evolve and stay relevant to today’s dynamic and digitally-savvy shopper are brands like Sears, Kmart, and Macy’s according to Brendan Witcher, Forrester retail analyst (Monica, 2017). Enhancing J.C. Penney’s online presence and focusing more efforts there versus brick-and-mortar stores could significantly enhance performance for the company. In addition to Amazon, Walmart, and Target, additional indirect competitors exist for J.C. Penney. One these competitors would be body paint companies; an alternative to clothing altogether.

Body Paint

Body paint companies like Skin City and Epic Body Paint also present competition to J.C. Penney because they provide an alternative to clothing; body paint. Body paint companies seem to target more of the entertainment business clientele but they are capable of entering other markets at any point. Some body paint companies target millennials that are interested in clubbing, raves, or parties. Epic Body Paint offers face painting, body painting, belly painting, and more (Epic Body Paint, 2017).  Providing professional body paint, makeup, and hair styling to locals and visitors, Skin City is Las Vegas’ premier body painting company (Skin City, 2017). Skin City also specializes in entertainers, acrobatic, and model talent for promotions, events, conventions, and parties (Skin City, 2017). Skin City’s living art has been featured on Lifetime, MTV, Travel Channel, Showtime, GSN and in Hustler Magazine, USA Today, Huffington Post, the Dallas Observer, Las Vegas Magazine, and more (Skin City, 2017). Robin Slonina, Skin City’s founder, judges Skin Wars, the hit body painting competition TV show (Skin City, 2017). Large-scale corporate trade shows or events, private clients for parties, couples looking for a unique Vegas experience, and events and private photo shoots are all welcomed at Skin City who use the motto of having no too small or too big job (Skin City, 2017).

Consumer and Stakeholder

Consumer Characteristics

With the gradual transition and emphasis on selling some of JC Penney’s products online, there are many characteristics and trends to understand about these frequent buyers. According to the study of several factors of online consumers, consumer styles inventory, brand consciousness, quality, fashion and brand loyalty are just some traits that simulate online apparel shopping (Wagoner, 2014). With the success and turnaround that JC Penney has had, the company is not only aiming to sell to local individuals but also those across borders. Shopping online has drawn in over 40% of consumers already.

            Focusing in on the characteristics of shopping will show that consumers have methods to their purchases. Often a consumer will understand their desire for a purchase, apparel in this case. The next step would be referring to the internet for more information on the product. Many sites such as Amazon lead to unbiased reviews that clearly show if a product is succeeding. After information is gathered, prices of competitor’s outlets will be determined and narrowed to a greater buying choice. Settling for a certain specific product or brand will follow, and then the initial purchase as well. Through time, the consumer evaluates the product and chooses whether or not to keep buying from that brand, which in the end develops or breaks brand loyalty. There are many characteristics of the consumers of JC Penney and it is important to observe and utilize these characteristics; not only using these traits for a better business and product line for JC Penney, but a model that benefits and treats the customer perfectly. This model will not only be used in online stores, but in physical stores just as equally, so that the customer feels respected.

Demographics

Without a doubt, JC Penney is going through some significant changes in their consumer characteristics; ranging from older married couples in the past to the new youth now. There has been a great change and focus of efforts through the entire business model. “It’s no secret that the future for the department store category (if there is one) is with the millennial consumer who is fundamentally about omnichannel connectivity” (Stein, 2016). This explains that millennials are looking for multiple methods of purchasing, and different channels.

These groups represent the new age of JC Penney’s audience. Customers are in their late teens or twenties, work jobs, and continue their education. These are males and females who both want style and affordability, with ease of access to purchases either in store or online.

Psychographics

Not only are the demographics of the target market important but going a step further to understand the psychographics will give a competitive edge into marketing to them. “Psychographic segmentation categorizes your customers by their personality, interests and other factors. This can be a powerful way of marketing the same product to people from otherwise dramatically different demographics” (Local Directives). Since the objective is to redirect the focus to attracting the millennial generation, it’s important to find out what causes them to buy. According to the 2015 Deloitte Millennial Survey, millennials feel that “an organization’s treatment of its employees is the most important consideration when deciding if it it’s a leader in its field. They then consider its overall impact on society, financial performance, its record for creating innovative products or services, and whether it has a well-defined and meaningful purpose” (Marketing to Millennials, 2015). Because the most important factors in purchasing from a company tend to be more motivated by these factors it is important to make sure that we are presenting to them a company that they feel good about supporting. J.C. Penney is a very environmentally conscious company which received an Energy Star award in 2016 for sustainability and that they have a goal to recycle 85% of its waste by 2020 (jcpenny.com) and the J.C. Penney ‘Warrior Spirit’ culture which is all about excellence in customer service are two marketing points to focus on that will make the millennials feel good about supporting the company (jcpenny.com).

Millennials spend a great deal of time on the internet watching movies, videos and on social media. Technology is the key to getting the most exposure with this target market. Advertising through these channels with a consistent message of excellent customer service, commitment to sustainability and keeping up with the current styles is a guaranteed way to appeal to this market as more than just another big company.

Stakeholder Characteristics

According to the business dictionary from Colombia University, a stakeholder is defined as, “any person group or organization that has an interest or concern in a business” (Colombia University). These stakeholders can be creditors, directors, employees, shareholders, suppliers and the community in which it operates (Colombia University). J.C. Penney’s stakeholders have had much to be concerned about over the last several years as the company has reorganized, made major changes to its structure and now stand to close over 100 stores in the near future. From the perspective of the target market, this may be a real issue as mentioned above that the millennial generation values the treatment of employees as a top priority for supporting a company. With the closing of these stores, many employees are sure to lose their jobs and be unemployed or misplaced. The way the employees are treated throughout this change including the type of severance packages that they are offered could be a major deciding factor in the opinions of the target market.

Through targeting consumers who are actively a part of the social, mobile and interactive, evolving market, JC Penney will provide a way for consumers to engage in their shopping experience. By designing a way for women to personalize their shopping style and demands, JC Penney will ensure that consumers can be as engaging as desired. JC Penney will become more aesthetically appealing both in stores and in their creative advertisements to develop memorable connections between JC Penney and their consumer needs. JC Penney will improve the store layout, making it more approachable, inviting and shopper-friendly to consumers.

Primary Target Audience

For JC Penney to fully grasp their needs and begin to develop their primary as well as secondary target audience it is truly helpful it they look at the demographics of the consumer base. Per Bloomberg JC Penney’s are an older generation of individuals over the age of 55 and are not a part of America’s elite country club class. Most Penney’s customers make less than $35,000 per year ("J.C. Penney's Shoppers Are Older, Poorer Than You Thought - Bloomberg," n.d.). For JC Penney to begin to get itself out of their sales rut, as a group it is important to look at options that could possibly reach a new generation.

With new changes and data showing that JC Penney needs to begin to branch out the primary target audience will now be a millennial generation those individuals aging from 16 to 30. With the chosen new clothing line by Beyoncé, the younger generation is in search of current events and the newest most cutting edge item. The use of fashion displays will come into play so that the new customer base can see what these new product lines will look like. Lastly as an effort reach out to our primary target audience we will be boosting our internet presence to which we have lagged the competition for many years. The internet sales will be advertised via Facebook or other online outlets to be seen and heard by teenagers.  With these new initiatives is intended to create excitement and give the new younger consumer a reason to shop.

Secondary Target Audience

Secondary target audience is basically the second most important consumer segment to the company. It is important to remember that JC Penney’s does not want to eliminate its older generations as they could still make a quite a bit of profit from those sales. JC Penney’s will still work to appeal to their older more dedicated customer base. JC Penney’s has been a huge hit with Hispanics and other multi-cultural shoppers that are particularly devoted and take advantage of the discount home departments and appliances (Loeb, 2016).

Strategic Target Audience

Understanding the target audience of a business is vital to achieving success. Further, determining and evaluating a strategic target audience can give organizations a valuable competitive advantage. Acquiring customers can be a challenge for any business and when marketing to multiple demographics it can become even more difficult (Lister, 2017). Differing target audiences respond and react to different things (Lister, 2017). Male and female millennials aged eighteen to twenty nine throughout the world are the primary strategic target audience proposed; the secondary strategic audience is males and females of generation x aged thirty three to fifty three throughout the world.  Considering the importance of developing an understanding of the target audience, this section of the marketing plan will detail the proposed primary and secondary target audience for J.C. Penney.

Proposed Primary Target Audience

Using generational segmentation, the proposed primary target audience for J.C. Penney is millennials. Currently, J.C. Penney focuses a lot of its marketing efforts on generation x; even more specifically, women that are mothers and apart of generation x. United States households that are middle income are primarily served by J.C. Penney, at the present (Thongkham, 2015). Middle income mothers that provide and care for their families are the main target audience for J.C. Penney’s current affordable apparel (Thongkham, 2015). It is suggested in this marketing plan, to increase sales and more, that J.C. Penney change their current primary target audience from middle income, generation x mothers to millennials. J.C. Penney would not remove generation x mothers as a target audience completely but would focus on them as a secondary target audience and make millennials the primary target audience.

Millennials

Slowly out-numbering the baby boomer generation and taking over the workforce is the millennial generation that was born between 1981 and 1999 (Lister, 2017). As baby boomers are reaching the end of their lives, the millennial generation is becoming closer and closer to being the largest generation. Having more people to market to for organizations can mean more leads and then translate into more sales and opportunity. According to the Huffington Post, the most influential and largest group in terms of employment and consuming is millennials; representing just under two and a half trillion dollars in spending power, $2.45 trillion (Mak, 2016). As a result of entering the workforce as the economy crashed, millennials are the generation with the most entrepreneurs (Lister, 2017). Working toward creating a brand aimed directly at millennials may appeal to the entrepreneur within them and give J.C. Penney some competitive edge. Millennials are said to value economics less than social issues (Lister, 2017).

While tending to spend large amounts when actually shopping, millennials are also the least frequent in-store shoppers (Lister, 2017). Shopping ease, personal recommendations, and online shopping opportunities are what the millennial generation is most responsive to (Lister, 2017). Learning what millennials are most responsive to helps explain the need for J.C. Penney to focus more efforts on their online presence, especially their website and social media pages. Traditional marketing tactics are still not working with millennials and they are remaining unresponsive (Lister, 2017). Facebook may influence where millennials find their hair stylist, Instagram pictures could influence where the generation chooses to eat, and millennials are increasingly having groceries delivered to their home (Lister, 2017). It will be essential for J.C. Penney to have a strong social media presence and market through these channels to the millennial target audience. J.C. Penney campaigns ran through Instagram, Facebook, Twitter, etc. will appeal to the generation and encourage engagement. In addition to the proposed primary target audience, J.C. Penney needs to consider a proposed secondary target audience.

Proposed Secondary Target Audience

Generation X

Born between 1965 and 1980, generation x is the smallest generation and now reaching the peak of their career while trying to juggle homeownership and child care (Lister, 2017). Pessimistic about having enough money to retire, this generation remembers the rise of video and fall of radio (Lister, 2017). J.C. Penney has been relatively successful in reaching the proposed secondary target audience with their low prices and varied offerings (Kezar, 2016). That said, generation x is quite active on social media and close to millennials in using and understanding technology (Lister, 2017). Strengthening J.C. Penney’s social media presence will significantly enhance the company’s ability to reach and sustain this customer base. Generation x has fully embraced online shopping but also still enjoys trips in-store (Lister, 2017). Therefore, J.C. Penney’s physical stores will not all close but may significantly decrease in number over the years. To reach generation x, J.C. Penney should consider lifestyle nurture programs and vacation opportunity promotions (Lister, 2017).

Research Development

Marketplace Research

The marketplace in the retail industry and the landscape that is drawn out is extremely competitive. As outlined in previous parts of our research, JC Penney’s direct competition is Kohl’s and Macy’s; based on the diversity of the product offerings, prices and their share price.  

A majority of studies pertaining to a consumer’s most desired apparel company show that Walmart and Kohl’s are first and JC Penney and Macy’s follow in second. JC Penney has tried to consistently grab the consumer’s attention with strategies like Fair and Square price which failed and drove most of the customers towards locations like Macy’s (Why JCPenney's 'Fair and Square' Prices Are No Fun | TIME.com, n.d.). New research has helped the JC Penney team come to new campaign ideas and begin to evolve to a new consumer base. Within the marketplace there is drive to appeal to a younger more energetic customer and for JC Penney, adding products like Ivy Park will potentially boost JCP’s presence in this field.  

Market Observation

There is quite an open interest in bringing youth back to the JC Penney Company. Viewing the company’s performance in the market, there is a certain level of pessimism on whether to invest or not. Department stores in general are not doing well and JCPenney has pulled itself out of a serious depression and are beginning to end a long streak of loses. The company’s gross margin has largely recovered as operating costs are being cut in half (jcpenny.com). Short term investors are looking for a quick profit while long term investors are looking to see growth with new campaigns and ability to move the company's growth higher and eliminate these pessimistic positions.

Online Survey Analysis

Using statistical tools, JC Penney can view their growth and decline by reviewing their sales and from the chart below (J.C. Penney Company Inc) we as a company need this new Ivy Park campaign to implement growth with sales.  

Marketing teams expect that with the Ivy Park campaign, there will be rewards and benefits by using youthful mobile applications, and doubling the incentives will help to bridge the gap that the company has with its customers. We have found with surveys that our customer find the old JC Penney is lacking and feeling toward the customer and can be a little judgmental ("JC Penney Consumer Analysis, 2015). Using www.talktojcpenney.com, customers can speak their opinion by entering their receipt number and earning a discount towards the next shopping trip by receiving a code. The conclusion of many statistical results is that the company must attract younger customers.  

Precedent Studies

Advertising Strategy

Looking at the previous studies of the history of JC Penney is an important role in the restructure of the new marketing plan and company. In an interview with Rajiv Lal, some major issues were discussed about the fall and decline of JC Penney’s sales. “That comes out to sales of about $150 per square foot, which is probably in the lower third of department store sales, if not the lowest. In contrast, competitors like Macy's and Kohl's have sales of around $220 or $230 per square foot. (Rajiv Lal, 2013). Lal is trying to portray the comparison of the company with competitors such as Macy’s and Kohl’s. This was a time of struggle, as retailers were fighting over customers due to the exit of the recession.

“To fix the problem of sameness and make it appealing for customers to come into the store, he came up with the idea of unique boutiques within each JC Penney -- the store-within-a-store concept.” (Rajiv Lal, 2013). Lal explains that JC Penney had brought their selves back from the decline by implementing ideas of specialty stores within their stores. These ideas can very much relate to the concept of bringing on fashion lines with high emphasis and focus for the new audience.

Other selling methods were discussed in the interview such as selling price points and the timeline in which those took place. CEO Johnson would implement a pricing strategy to have customers purposefully not interested in products for the first few weeks, and then prices would drop and it would draw interest. He eventually chose to cut to the point and implement right away, leading to an initial drop in prices to draw attention, fighting the competition more strategically.

            “Another example is the presence of manufacturer's' representatives in retail outlets, such as a rep doling out free samples of a new food product in a supermarket” (Kibilko). Much like this example, JC Penney can have select stores in key areas with high populations to have specific sales reps for brands like Ivy Park. These reps will have advertising booths that have discounts and programs for customers practicing brand loyalty. This is just one form of mixed push and pull advertising; among many others that will be implemented.

            A specific style of advertising will be in place with co-op characteristics with these brands. Funding will also be a joint effort to cover expenses, promote great brands, and draw more customers back to this shopping experience. Mediums for advertising will include: magazine ads, large banner ads near JC Penney locations or inside malls or outlets, Television ads, Spotify ads, and digital web ads. These mediums are specifically chosen to target the fast and active millennial audience; that enjoy great brands.

            Stylizing of advertisements will carry the sleek and minimal JC Penney branding, along with co-op standards for selected fashion brands. The advertisements will focus on a clear message: how this clothing will appropriately fit into their active lifestyle and draw them into physical or digital stores.

Marketing Programs and Marketing Strategies

Advertising

A long-term pull strategy with the objective of providing a reason to purchase is advertising (Boykin, 2017). One advertising campaign JC Penney can run is sponsoring a district track and field competition or event where it is approved for pictures and videos to be taken by JC Penney to be used in the advertising campaign; this will promote the new Ivy Park fitness line addition. These pictures and videos can not only be used in the traditional television advertisements but can be used on social media networks like Instagram, Facebook, and Twitter to achieve the marketing objective of enhancing the company’s online presence and reaching millennials. In addition to this campaign, JC Penney can have one of their new lines be active wear for men since Ivy Park is aimed toward women and advertise this side-by-side the Ivy Park campaign. JC Penney always run the "Penney Advertising Strategy" for a short time span in a “buy a product; get a product for a penny” format (Pasquarelli, 2016). In addition to this format, it may be beneficial to try using the "Penney Advertising Strategy" in a customer loyalty program approach. Customers that spend over a set amount, for example $50 to $100, get to choose an item that will only cost them a penny. Customers that remain part of JC Penney’s customer loyalty program for a certain amount of time, for example every three to six months a customer remains a member, would also receive an item that will only cost them a penny. Television advertisements and digital media advertising will be the main channels used to launch these programs and strategies. In combination to the advertising strategies and programs, it is important to have sales promotions in place.

Sales Promotions

In addition to advertising, it is important for JC Penney to have a sales promotion strategy. For products normally sold in retail environments, consumer and trade promotions are used often to help drive short-term consumer demand (Boykin, 2017). Aligning and integrating consumer and trade promotions with other marketing activities generally work best to accomplish short-term marketing objectives (Boykin, 2017).

Consumer

A marketing technique used to influence customers to purchase a product or service is consumer sales promotion (Joseph, 2017). Promotions are often used to achieve a specific purpose, creating awareness for a new product release for example, and last for a set period (Joseph, 2017). Various promotional techniques can be used by product or service sellers and manufacturers; free gifts, contests, and special pricing as examples (Joseph, 2017).

To accomplish the marketing objective of reaching millennials and promoting the Ivy Park fitness line, in addition to the new JC Penney men’s fitness line, one consumer marketing program suggested in this plan is to provide one low-cost item of Ivy Park gear to all track and field participants of the advertising campaign mentioned above. An example of a low-cost Ivy Park item could be a water bottle; if JC Penney were to provide the water and refreshments for the entire event it would also appeal to millennial’s desire for businesses to display social good deeds (Donnelly, 2016). Another example of an Ivy Park item that could be used is a t-shirt or tank top. In addition, JC Penney could have booths set up at the event where additional Ivy Park, JC Penney men’s fitness clothing, and more merchandise can be purchased.

To accomplish the marketing objective of enhancing the company website and increasing traffic to it, JC Penney could offer special member options on the website that all have a free trial and differing levels of exclusive access to coupons, BOGOs, special pricing, contests, and more. In addition, JC Penney will begin running contests with the prize of free gifts and sampling on their various social networks; Instagram, Facebook, Twitter, Snapchat, etc. An example of a contest could be the best picture posted on Instagram wearing the new Ivy Park or JC Penney men’s fitness line wins a special JC Penney product package; this will get millennials not only talking about JC Penney clothing lines but wearing them and sharing their experiences. JC Penney could also host special versions of the “Black Friday” annual shopping spree during times like back-to-school and before summer begins. Not only would this attract millennials, it could be used to encourage manufacturers and partners to compete on discounts to win a prize like front of the store positioning for three to six months. Another important consideration for JC Penney is the trade side of sales promotions.

Trade

Executed between retailers and manufacturers are marketing activities considered trade promotions (Boundless, 2017). Assisting companies with increasing the product purchase rate, differentiating a product, and increasing product availability is what trade promotions do (Boundless, 2017). JC Penney can offer free or heavily discounted space for the Ivy Park brand and offer front of the store displays to carry the clothing line and the Ivy Park brand joining promotion efforts for JC Penney’s men’s fitness line; through side-by-side presentation in-store and on the company website. To encourage retailers to sell products, trade contests are used and the retailer often wins a prize (Boundless, 2017). Retailers who set up the best Ivy Park and JC Penney men’s fitness line displays win a store celebratory dinner and direct promotion on the company website. Retailers who sell the most Ivy Park and JC Penney men’s fitness line clothing will receive an additional 15% discount on all employee purchases for a month and direct promotion on the company website’s homepage. For the top selling salesperson of the top selling retailer, an ultimate shopping spree of thirty minutes in the store with no limit could be the prize.

Public Relations

Public relations are focused on getting connected with the modern consumer, the millennial generation with the idea that JC Penney is more than just a big business. It is a shopping experience with the latest fashion with a company that values its customers, is interactive and socially responsible. The way that the message is delivered is important in marketing to this new segment; a generation which is used to being exposed to several types of digital media per day and prefer to obtain most of their information via email, social media and other online sources.

Millennials want the latest trends but also wish to connect with a company on a more personal level. Per a study, by LEK consulting, “62% of millennials agree that if a brand or business engage with them on social media, they’ll be much more likely to become a loyal customer- which could be great news for your business” (Cole, 2016). E-mail and social media interactions including encouraging the customer to share comments or pictures of themselves wearing the Ivy Park and other JCPenney attire to the page are encouraged. Through social media interaction we aim to target this market in our campaign to attract a new generation of loyal customers.

Personal Selling

Millennials want more than to just find a good deal, “In terms of how you appeal [to millennials]," he says, "one of the things we’ve found again and again—and we just commissioned [a study about this]—is the value of experiences. This is across all generations, but it’s much more pronounced among millennials: People want experiences more than things" (PR for Millennials, 2013). The aim is to give an experience to the modern consumer through great service which is personalized to their needs which will make them loyal customers.

The opportunity for improving personal selling and the experience of it is the introductory event of the Ivy Park line. The popular stores are adding special booths for a limited time including sales reps to help customers choose the right Ivy Park look for them and special offers and perks for registering as a JC Penney customer with an email.

Direct Marketing

“Direct marketing occurs when businesses address customers through a multitude of channels, including mail, e-mail, phone, and in person. Direct marketing messages involve a specific “call to action,” such as “Call this toll-free-number” or “Click this link to subscribe.” The results of such campaigns are immediately measurable, as a business can track how many customers have responded through a message’s call to action” (Direct Marketing, 2016).

Marketing directly to the customer is the key to gain the attention and loyalty of the modern consumer. Through personal selling in the stores, e-mails, and social media the customer will stay connected to the company by receiving current information on latest sales and offerings for their favorite products. 

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