On Second Thought - JCPenney Brings Back Sales

Attention shoppers, a JCPenney sale will be coming to a store near you soon! 

That's right, nearly one year after announcing it was phasing out its traditional sales promotion strategy, JCPenney has done an about-face and will now significantly increase its pricing discounting strategy.  This step is aimed at increasing traffic by making the chain appear more price competitive to its peer set.

By killing traditional promotions, JCP severely damaged its value perception.  In an effort to further battle negative consumer value perceptions, JCP will also introducing price tags that include also show what competitors are charging for the same merchandise.  The big question is it too little, too late given JCP same store sales declined over 25% in 2012?

JCP's major mistake was thinking they could retrain consumer behavior - that is train consumers to move from shopping a high/low strategy to an everyday low price mindset - consumers love a value treasure hunt. Needless to say this would be an extremely difficult task for even the strongest brand to take on (e.g., Apple), but it proved to be an impossible for a merely average brand with limited equity and loyalty.  Sorry CEO Ron Johnson, you cannot turn a JCP into Apple overnight.

The sad thing is that much of Ron Johnson's transformation turnaround plan is right on - building a portfolio of exclusive brands, dramatically revolutionizing the JCP shopping experience and re-staging the brand image.  If he had only been more patient and executed these strategic elements prior to changing the promotion strategy as opposed to trying to move simultaneously, he may have successfully increased consumer traction, loyalty and advocacy.  This would have then given him more permission to then cut back the level of promotion.

Toyota Corolla 'It's a Trap' TV Commercial

An example of another great TV ad, this one surprisingly from Toyota...



I'm not sure how old this Toyota TV commercial is or in what country it aired in, but its a fantastic ad.  Not only does it capture the audience and entertain, but it sells the car's primary consumer benefit and connects deeply with the brand's equity in a clever and authentic manner. 

Coke's 'Coming Together' Obesity TV Ad

Coca-Cola just launched a new tv campaign entitled 'Coming Together' that seeks to address concerns about soda's role in the nation's obesity problem.  The campaign is supported by a 2 minute tv ad...



It's an interesting advertisement in that it pushes consumers to consider better for solutions versus full calorie sodas without fully condemning Coca-Cola, and in fact praises how proactive the company has been about delivering better for you alternatives.  It's done in a smart way as to be honest about the connection of full calorie soda consumption with weight gain, but also actual has an strong underline sales message about many other products in Coke's product portfolio such as Dasani, Vitamin Water, Coke Zero, Diet Coke, and juices.  In reality, the tv commercial is not really an admission of fault, but rather a scale advertisement for all of Coke's better for you products. 

Is it dishonest to be selling products while trying to look like their doing the right thing?  No, I think its a smart business approach.  Granted, I think health nuts (and many non-health nuts) would argue that the artificial sweeteners in many of their no or low calorie beverages are actually worse for you than the full calorie alternatives.

Nike's New Ad - Tiger Woods vs. Roy McIlroy

Nike just launched a great new tv commercial (Nike Golf: No Cup Is Safe) staring Tiger Woods vs. Roy McIlroy. Take a look. . .



Call it the new take on the old Larry Bird vs. Michael Jordan McDonald's commercials . . .



Call it a passing of the torch, call it whatever you want.  It may not be the most original advertising idea, but it's simple a great tv ad and breaths life back into Nike Golf. 

Chevy no longer 'Runs Deep', but will 'Find New Roads'. At least for the time being...

Chevy recently announced that it was replacing its tag-line "Chevy Runs Deep" with the new tag-line "Find New Roads".

"Chevy Runs Deep"was launched in 2010 and only lasted a few years.  Though switching tag-lines is nothing new for the General Motor's brand.  Past tag-lines include "See the USA in Your Chevrolet," "Heartbeat of America,", and "An American Revolution".  The question is will this new tag-line have more sticking power?  

My guess is no.  My guess is Chevy will be searching for a new tag-line in another few years and they could have better spent the few million dollars they invested on this re-launch effort on something else that better built the brand. 

It's not that I don't like the tag-line from a creative standpoint.  And, I'm confident all the consumer research GM surely did prior to rolling out the new tag-line showed positive consumer sentiment.  After all, "Find New Roads" is very likable.  Its optimistic and it points towards the future not the past.  It grabs hold of the current America sentiment for wanting something new, something better.  The problem is that being popular with consumers in testing, doesn't necessarily make it a successful tag-line.

So what makes a successful tag-line?  There are four elements that have to be true:

1. It has to be unique
2. It has to be ownable (by connecting to the brand heritage or underlining equity)
3. It has to brings to life a consumer benefit (ideally a high order benefit than just the product performance)
4. It has to have the potential to tug at the consumer heartstrings or make an emotional connection

To me the biggest problem with the new Chevy tag-line is it doesn't resonate as an unique, ownable benefit that only Chevy can deliver on.  What about find new roads distinctly connects with the Chevy brand?  For me, the line fails to connect with the brand heritage and brand equity.  While it is clever, I struggle with the brand linkage to Chevy and that makes the tag-line feel empty and somewhat soulless to me.  

Aspirational for sure. A great internal compass to guide the future development.  Just not a great fit from a consumer branding standpoint.