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JC Penney’s Media Spending Climbs But Sales Go Into Free Fall

CEO Ron Johnson Boosts TV Advertising, Adds Former Coca-Cola Marketer Sergio Zyman as an Adviser

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JC Penney sales plummeted 25% in 2012, even as its measured media spending jumped 14% to $504 million.

 JC Penneys Media Spending Climbs But Sales Go Into Free Fall

Ron Johnson

The beleaguered retailer spent more on advertising than it has in any of the last five years and made major changes to its media mix, under the direction of CEO Ron Johnson. TV advertising climbed, particularly network TV spending, while radio and internet display investments dropped. And despiteMr. Johnson’s declaration late last summer that the retailer would invest heavily in newspapers, spending in that category was down slightly.

JC Penney reported that its fourth-quarter net loss widened to $552 million. The retailer posted an annual net loss of $985 million.

Sales in the fourth quarter, which includes the holiday-shopping period, slid 28% to $3.88 billion. For the year, sales fell 25% to $12.98 billion. That marks the lowest annual revenue the retailer has reported since at least 1987.

“It’s the worst performance that I’ve ever encountered in decades of covering retail — there’s nothing really to compare it against,” said Bernie Sosnick, an analyst at Gilford Securities.

2 27 13 JCP spend chart 2013 JC Penneys Media Spending Climbs But Sales Go Into Free Fall

Source: Kantar Media

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Thursday, February 28th, 2013 news No Comments

Google Was The Most Shared Brand Of 2012

Source: http://www.businessinsider.com/google-was-the-most-shared-brand-of-2012-2012-12

According to Unruly Media, which tracks not only what people watch but also what they share, Google was the most shared social video brand of 2012.

Thanks to campaigns like “Project Glass: One Day,” the company’s videos were shared a whopping 196.8 percent more than last year. Someone’s been doing his YouTube homework.

Five newcomers broke the top 10, including TNT, Coca-Cola, Abercrombie & Fitch, Samsung, and P&G. Volkswagen, which went viral last year with its Super Bowl sensation, “The Force,” dropped nine spots to number 10.

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SEE ALSO: The 10 most viral ads of 2012>

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mf Google Was The Most Shared Brand Of 2012


tropicana carton redesign PepsiCo Discovers Consumers Will Pay More For Orange Juice With Less Juice (PEP)This post originally appeared at Newser

PepsiCo’s plan to increase profit margins for its Tropicana orange juice is simple: Just add water. Apparently some consumers are already doing that on their own, in order to get a less-thick or lower-calorie beverage. “They themselves add water before drinking OJ,” a PepsiCo exec tells Bloomberg. “So why not add the water ourselves and charge for it?” Tropicana lost market share to Coca-Cola Co.’s Minute Maid and Simply Orange brands after PepsiCo repackaged its juice three years ago.

Now, instead of continuing to compete in the 100% juice category, PepsiCo will focus on different products with higher profit margins. One such product—Trop50, which contains 42% orange juice and uses a low-calorie stevia-based sweetener—has already been successful. Says the exec, “We have lost perspective here on the primary reason we are in business, which is to make money.” Consumers will always know what they’re getting, thanks to strict FDA juice labeling guidelines.

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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