Evaluating JC Penney TV Commercials An integrated social media research example

Prepared by Conversition

May 2012

• 2012 is proving to be a year of big change for JC Penney as they present consumers with a brand new approach to shopping

• Their new strategy shifted the approach away from promotions, coupons, and sales in favor of better overall pricing

• The strategy was introduced to consumers with two sets of commercials, one a failure and one a success

• This case study reviews the marketing campaign via social media listening as well as a follow-up quantitative survey

Objective: Will Consumers Accept a Big Change?

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Methodology = Listening + Asking

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Collect

Clean

Categorize

Calibrate

• Clean out spam and non-relevant chatter (e.g., fun engagement conversations on Facebook)

• Scour the internet for hundreds of thousands of messages related to JC Penney

• Categorize the verbatims into relevant content areas, e.g., pricing, recommendations, commercials, celebrities

• Calibrate the sentiment into 5-point Likert scale buckets

Hypothesize

Design

Analyze

Report

• Design unbiased survey questions to answer those hypotheses

• Review the social media listening data for hypotheses

• Analyze the results and identify meaningful segments

• Report on major differences and conclusions

Listen to Learn Ask to Confirm

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Listen: To JCP Social Media Chatter

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• Prior to the launch of the new strategy, the social media space talked very little about JCP commercials. The early days of January 2012 showed almost no chatter about TV commercials.

• However, with the launch of the campaign in late January, the Screaming commercial created a massive spike in chatter volume, as did the series of Ellen commercials later in February.

Commercial #1: The “Scream” Ad

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• In an attempt to illustrate the frustration some consumers feel about trying to keep up with sales and coupons, the first commercial showed numerous women screaming in frustration

• The “Screaming Women” ad aired beginning January 25, 2012 and generated an immediate response in social media

• Unfortunately, the ad was not well received in the social media space with almost 28% of comments falling into Bottom Box.

Hate Dislike Neutral Like Love

Series1 27.67% 8.23% 39.67% 12.00% 12.43%

0%

10%

20%

30%

40%

Why Did Social Media Dislike the Ad?

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0% 25% 50% 75% 100%

Anger

Understand

Loudness

Intelligence

Ads

Spokesperson

Bottom 2 Boxes Neutral Top 2 Boxes

• Consumers Did Not Understand It (33% negative)

– “I don’t understand the jcp commercial. Why the hell are they screaming?”

– “Does anyone understand the the new penny commercial where people are screaming?”

• The Commercial Was Too Loud (48% negative)

– “I hit the mute button when the annoying screamming jcp commercial comes on”

– “This Jcpenney commercial with people screaming Is annoying now I have a headache....”

• The Commercial Was Stupid (42% negative)

– “I hate the JCP commercial when the people scream at the sales signs. So stupid!”

– “My new dumbest commercial on tv is the jcpenny one with all the screaming”

Commercial #2: The Ellen Ads

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• A new approach to sharing the JCP strategy enlisted the help of Ellen Degeneres, a television talk show host and comedian

• Ellen’s JCP television ads appeared beginning February 26, 2012 and also created a massive spike in social media chatter

• This commercial, unlike the Screaming Women commercial, was extremely well received in the social media space with an astounding 47% of verbatims generating Top Box scores.

Hate Dislike Neutral Like Love

Series1 3.92% 3.82% 24.42% 20.91% 46.93%

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10%

20%

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Why Did Social Media Like the Ads?

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0 25 50 75 100

Ads

Funny

Anticipation

Pricing

Ellen

Honesty

Happiness

Reputation

Bottom 2 Boxes Neutral Top 2 Boxes

• Consumers felt the ad was funny (63% positive)

– This is ridiculously funny – The JC penny commercials are so funny i

actually watch them now

• Consumer liked seeing Ellen (64% positive)

– Just saw the new jcpenny commercial on the ellen show how funny... Enough is enough

– Saw the new jcp/ellen commercials yesterday. Too funny. Made me laugh.

• Consumers noticed price decreases in the stores (63% positive)

– I have noticed a definite improvement in pricing

– This is why jCP moved to their new pricing. Makes much mroe sense to me.

Based on the concerns we saw in the social media data…

Did the social media perceptions translate to a wider audience?

Did the negative ad have a lasting negative impression?

Did the new strategy alienate coupon users and sale seekers?

So answer me this...

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Hate DislikeNeutra

lLike Love

Series1 27.67% 8.23% 39.67% 12.00% 12.43%

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10%

20%

30%

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• After viewing both the Ellen ad and Screaming Women ad, survey responders were asked to share their opinions. As with social media perceptions, the Ellen ad was deemed more enjoyable and less annoying than the Screaming Women ad. The social media opinions generalized to the survey space.

• Indeed, the Ellen ad was even enjoyed by non-coupon users who tended to be less positive about all features of both ads. And, even people disadvantaged by the new strategy, heavy coupon users, appreciated the Ellen ad.

Ask: Social Media Perceptions Were Widespread

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Ad Satisfaction

Total Sample (n=468)

0 Coupons per month

1 to 9 Coupons per

month

10+ Coupons

per months

Never/Rarely Try For

Sales

Sometimes Try For Sales

Avid Sales Shoppers

Overall Ellen 77% 75% 76% 79% 80% 77% 75%

Screaming 45% 30% 45% 48% 53% 43% 47%

Funny Ellen 50% 39% 51% 52% 52% 53% 41%

Screaming 56% 45% 58% 55% 55% 54% 61%

Informative Ellen 30% 18% 27% 36% 31% 31% 27%

Screaming 43% 30% 42% 48% 51% 40% 49%

Annoying Ellen 13% 13% 10% 18% 16% 13% 12%

Screaming 56% 67% 54% 57% 58% 53% 63%

• An aided recall survey question described six JCP TV ads.

• Given that the Ellen ad is the most recent TV commercial, its high level of recall illustrates the benefits of the primacy effect. Surprisingly, heavy coupon users were more likely to remember the ad whereas avid sale shoppers were less likely to remember it.

• The failure of the Screaming Women ad was confirmed through its unimpressive recall (thankfully), with two other ads generating better recall rates. In this case, avid sales shoppers were more likely to remember the ad.

Ask: The weak ad has been forgotten

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Do you recall this TV commercial?

Total Sample (n=573)

0 Coupons per month

(n=54)

1 to 9 Coupons per

month (n=300)

10+ Coupons per

months (n=219)

Never/ Rarely Try For Sales

(n=87)

Sometimes Try For Sales

(n=354)

Avid Sales Shoppers (n=132)

Ellen Degeneres 41% 33% 40% 45% 43% 43% 34%

Hula hoop dog 24% 22% 23% 27% 21% 25% 27%

Auctioneer 19% 22% 17% 20% 24% 16% 20%

Screaming women 17% 11% 15% 20% 16% 15% 22%

Drummer boy 12% 2% 12% 14% 16% 9% 16%

Sexy bikini lady 9% 11% 8% 10% 8% 8% 11%

None of these 30% 44% 30% 26% 22% 32% 31%

• Though heavy coupon users were most disadvantaged by the new pricing strategy, they are overwhelmingly having a positive experience with JCP. They are more likely to have shopped and recommended JCP in the last month, and they have noticed and like the lower prices.

• The only people who seem to be less than enthused with JCP are non-coupon users, a group of highly un-engaged shoppers.

Ask: Coupon Users Were Not Driven Away

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Total Sample

0 Coupons per month

1 to 9 Coupons per

month

10+ Coupons

per months

Never/Rarely Try For

Sales

Sometimes Try For Sales

Avid Sales Shoppers

Shopped within last month 46% 33% 42% 56% 53% 46% 44%

Shop more now 37% 17% 35% 44% 37% 36% 40%

Recommended within last month

40% 22% 37% 47% 46% 39% 37%

Prices are good or excellent 48% 33% 46% 54% 46% 50% 41%

Like the lower pricing 73% 67% 75% 72% 73% 76% 63%

Want the coupons back 42% 28% 40% 48% 36% 40% 50%

Noticed lower prices 57% 46% 59% 57% 60% 58% 52%

• In early 2012, JC Penney launched a new marketing strategy whereby they ceased to offer coupons and sales in favor of regular low prices

• The strategy was marketed via television commercials, the first of which featured people screaming about frustrating coupons and sales. Unfortunately, many consumers chose to either mute their television or change the channel when the ads aired. Many people did not understand the message or they did not appreciate the screaming resulting in decreased sentiment towards both the ad and the brand, opinions which were confirmed through survey research.

• A second series of ads was launched a month later featuring Ellen Degeneres, a popular television host. Her ads launched with much success as consumers felt her ad was funny, informative, and not annoying.

• Though the first ad failed, the second ad with Ellen reacted to the earlier weaknesses and was a solid success. It communicated the message well and appealed to consumers who gravitated towards sales and coupons, as well as consumers who prefer generally low prices.

Listen to Learn, Ask to Confirm

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Thank you

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