On Strategy Showcase: Episode Summary – "On the Spot, May 2025 - Planners Talk About Brands They've Never Worked On"

Podcast Information:

• Title: On Strategy Showcase
• Host: Fergus O’Carroll
• Description: Where marketers tell the stories behind the strategies that led to amazing campaigns.
• Episode: On the Spot, May 2025 - Planners Talk About Brands They've Never Worked On
• Release Date: May 18, 2025

Introduction

In the May 2025 episode of On Strategy Showcase, host Fergus O’Carroll welcomes a panel of seasoned marketing professionals to discuss the revival strategies of two iconic brands: Starbucks and JCPenney. Unlike previous episodes, this installment features planners analyzing brands they haven't directly worked on, providing fresh perspectives on revitalization efforts in the competitive market landscape.

Panelists:

• Matthew Herbert: Co-Founder and Co-CEO of Tracksuit New York City
• Vanessa Chin: SVP Marketing at System One, Chicago
• Mary Bakarich: Group Strategy Director at Johannes Leonardo, New York
• Christopher Owens: Head of Brand Strategy at The Richards Group (TRG), Dallas

Starbucks: Returning to Its Roots

Background and Challenges

Starbucks has faced a period of decreased growth marked by reduced foot traffic, rising competition, and challenges in maintaining service quality. A significant shift towards drive-thru and mobile ordering has diluted the brand’s original appeal as the “third place” between home and work.

Fergus O’Carroll [02:15]:
"Starbucks has really moved away from being a place where you’d sit and spend time, which was a huge part of its appeal."

The "Hello Again" Campaign

Anomaly, a marketing agency based in California, spearheaded Starbucks' latest campaign titled "Hello Again." This initiative aims to rejuvenate the in-store experience by emphasizing personal connections and returning to the brand’s foundational values.

Christopher Owens [03:26]:
"It's like they're going back to those very first moments when you first met... remembering the sights, sounds, and smells."

Panel Discussion

• Christopher Owens: Praises the campaign for its confidence and nostalgic appeal, comparing it to a band returning to its authentic sound after years of solo ventures. He emphasizes the importance of fresh memories in a highly competitive market.

  Christopher [04:15]:
  "They're taking us back to the person who gets to know your name... reminding us that there are real humans behind every cup."

• Mary Bakarich: Highlights the campaign’s focus on human connection, noting Starbucks' effort to restore the personal relationships that were once integral to the brand.

  Mary [07:11]:
  "They're returning to the core humanity of the brand that made it a fixture in your community."

• Matthew Herbert: Provides insights from Tracksuit’s data, indicating a significant uptick in brand consideration among 18 to 24-year-olds, suggesting successful engagement with a younger demographic.

  Matthew [09:37]:
  "Starbucks is seeing remarkable increases in those considering the brand, especially among younger consumers."

• Vanessa Chin: Discusses the high brand fluency scores achieved by the campaign, demonstrating strong brand recognition and emotional connection.

  Vanessa [05:17]:
  "They scored 98 and 96 on brand fluency, which is outstanding for a new campaign."

Performance Metrics for Starbucks

Brand Fluency and Emotional Connection

The "Hello Again" campaign has achieved near-perfect brand fluency scores, indicating that consumers not only recognize Starbucks quickly but also feel a strong emotional connection. This is particularly impressive given the competitive nature of the coffee industry.

Vanessa Chin [05:08]:
"They really pulled out all the stops on it. It's almost perfect, which is rare."

Competitive Positioning

Starbucks leverages its extensive brand history and recognition to maintain a dominant position. Christopher Owens introduces the concept of "double jeopardy," where larger brands like Starbucks are inherently advantaged due to their extensive memory structures in consumers' minds.

Christopher Owens [20:06]:
"The largest brand has all these force multipliers, giving them a wonderful advantage over competitors."

Comparing with Competitors: Dunkin’ and Others

Mary Bakarich contrasts Starbucks' approach with Dunkin's celebrity-driven campaigns, suggesting that Starbucks' focus on authentic brand values positions it as a leader in reclaiming its legacy.

Mary Bakarich [15:47]:
"Starbucks is trying to claim that leadership mantle with this work, unlike Dunkin’s flashy marketing."

Vanessa Chin notes that while Dunkin’ utilizes celebrities effectively, Starbucks’ strategy seems more aligned with its inherent brand strengths.

JCPenney: A Long-Term Revival Strategy

Background and Challenges

JCPenney, a stalwart of American malls since 1902, has seen a drastic reduction in store numbers and entered bankruptcy in 2020. Now under new ownership with a commitment to invest up to a billion dollars in operations and customer experience, JCPenney aims to reconnect with a broad middle-market audience amid economic uncertainties.

Fergus O’Carroll [29:00]:
"It was started in 1902 and had 2,200 stores at its peak. Now it has 650, which is wild."

The Revival Campaign by Mischief

Mischief, a creative agency, is behind JCPenney's latest campaign focusing on "Impress for Less." The strategy centers on showcasing high-quality products at affordable prices without overtly emphasizing the brand logo, aiming to attract both new and lapsed customers.

Mary Bakarich [32:17]:
"They're putting the product front and center, allowing consumers to be seduced by what they offer rather than the brand itself."

Panel Discussion

• Mary Bakarich: Emphasizes the importance of JCPenney redefining its role in a fragmented market, moving away from being a legacy brand to appealing to modern consumers seeking quality and value.

  Mary [30:35]:
  "JCPenney feels like they've skipped a generation. Their approach of putting product first is intriguing."

• Christopher Owens: Points out that JCPenney needs to "rehab mental real estate" by making a strong first impression and consistently delivering quality experiences both online and in-store.

  Christopher [34:02]:
  "This is a proof of life campaign... they're standing up and saying, 'We're still here.'"

• Vanessa Chin: Highlights the challenge JCPenney faces in proving high quality alongside low prices, noting that while their campaign is humorous and engaging, it currently scores below category averages.

  Vanessa [32:22]:
  "JCPenney is under category average in performance metrics. They need to prove that high quality is genuinely there."

• Matthew Herbert: Analyzes Tracksuit data to differentiate between short-term sales promotions and long-term brand rebuilding, suggesting that JCPenney's strategy needs clarity in its objectives.

  Matthew [41:02]:
  "If they're aiming for a short-term revenue boost, value-based promotions are key. For long-term growth, emotional brand building is essential."

Performance Metrics for JCPenney

Brand Recognition and Consumer Perception

JCPenney's campaign struggles with brand fluency, as indicated by consumer confusion and low recognition scores in certain segments. The focus on unbranded ads with QR codes aims to intrigue but requires a robust PR strategy to be effective.

Vanessa Chin [33:52]:
"The work is under category average, but they've got to spend time proving that high quality is there."

Out-of-Home (OOH) Campaign Effectiveness

The use of QR codes on unbranded outdoor ads is met with skepticism by the panel. While it aligns with Mischief’s strategy to surprise and engage, its practical effectiveness remains questionable without strong PR support.

Christopher Owens [44:40]:
"It's totally a PR play, but it feels like the purest expression of Mischief's strategic creativity."

Mary Bakarich [46:35]:
"These unbranded OOH ads likely won't perform well without a significant PR engine."

Overall Impressions and Conclusions

Starbucks: A Successful Revival

Starbucks’ "Hello Again" campaign is lauded for its strategic return to core brand values, emphasizing human connections and authentic in-store experiences. The high brand fluency scores and positive consumer engagement, especially among younger demographics, indicate a successful revival effort.

Mary Bakarich [49:52]:
"Starbucks' efforts to revitalize their brand direction during a crucial holiday season will be pivotal."

JCPenney: A Work in Progress

JCPenney’s revival strategy, while creative and bold, faces significant challenges in brand recognition and consumer perception. The panel agrees that sustained investment, clear objectives, and consistent execution are essential for long-term success.

Matthew Herbert [51:36]:
"Understanding whether JCPenney is aiming to reintroduce to old markets or attract new ones is crucial to evaluating their strategy’s effectiveness."

Fergus O’Carroll [52:57]:
"Both Starbucks and JCPenney face the challenge of improving physical store experiences while maintaining marketing efforts."

Key Takeaways

• Authenticity Matters: Brands like Starbucks succeed by returning to their authentic values and emphasizing human connections.
• Strategic Creativity: JCPenney’s bold, product-centric campaign highlights the importance of innovative strategies, though execution and consistency are critical.
• Metrics are Crucial: High brand fluency and emotional connections are vital indicators of campaign success.
• Adaptability: Both brands must adapt to changing consumer behaviors, balancing in-store experiences with online engagement.

Notable Quotes:

• Christopher Owens [03:26]:
  "It's like they're going back to those very first moments when you first met... remembering the sights, sounds, and smells."

• Vanessa Chin [05:08]:
  "They really pulled out all the stops on it. It's almost perfect, which is rare."

• Mary Bakarich [07:11]:
  "They're returning to the core humanity of the brand that made it a fixture in your community."

• Vanessa Chin [33:52]:
  "The work is under category average, but they've got to spend time proving that high quality is there."

• Matthew Herbert [41:02]:
  "If they're aiming for a short-term revenue boost, value-based promotions are key. For long-term growth, emotional brand building is essential."

For a deeper dive into the discussed campaigns and ongoing strategies, visit the On Strategy Showcase website.