Vincent del Rosario

I. Background of the Case

It is estimated that 75% of the 600 million people registered on Facebook/Myspace

were from the age of 18-33. Social Media sites, such as Facebook and Myspace, are
used usually for photo sharing, games, entertainment, news, and other activities. Ranked
8th at 18% of the activities done by 18-24 year olds, social media or has been an emerging
marketing channel for businesses.

Companies offering products and services such as Brooks Brothers, Delta Airlines
and JCPenney have used social media to showcase and sell their products with the use
of Facebook. JCPenney has become the first merchandiser to offer all of their products
in Facebook. Customers could also leave a feedback or recommendations to their friends
and family. The use of Facebook as a marketing channel is expected to become a
revenue producer for the company. The head of digital initiatives for JCPenney believes
that Facebook creates a closer bond with the customer with its social integration.

II. Time Context

The case was based from activities and data from 2010.

III. Viewpoint

From a marketer’s viewpoint, social media has become a marketing channel

opportunity for businesses to promote and sell their products.

IV. Problem Statement

Will JCPenney’s Facebook marketing effort become an opening for all businesses
through the use social networking sites as a marketing channel to boost revenue?

V. Objectives
To determine if Facebook is marketing channel for businesses.
To differentiate the purpose of a company’s website and social networking site.
To encourage customers on the integration of online and offline retailing
VI. Areas to Consider
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JCPenney’s SWOT: Opportunities Threats

Facebook Marketing  Shopping ranks 8th  Customers’ context
Channel of social media of using social
activities. media as a store
 74% of the  Freedom of
Facebook users are comments and
age 18-33 year feedbacks in
olds. Facebook
 People use social
media mostly for
other purposes
Strengths S-O S-T
 1.3 million  Focus in capturing  Build and enhances
Facebook fans the attention of the customer
 Customers can buy Facebook fans ages relationships
directly from 18-33 through feedbacks
Facebook  Encourage the  Deliver quality
 First to offer entire youth to use products to gain
catalog of Facebook as an positive feedback
merchandise shopping option  Pay attention to the
 Engage customers negative feedbacks
through showcasing
products in other
forms of Facebook
activities
Weaknesses W-O W-T
 Two online  Adjust JCPenney’s  Integrate Facebook
channels – Facebook page for and website for one
Facebook and ages 18-33 year feedback and
Website olds comments section
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 JCPenney’s  Integrate the  Define the purpose

Facebook page is Facebook and of JCPenney’s
not pleasing (basing Website of website and
from exhibit 6) JCPenney Facebook page
 Make use of other
activities, such as
photo sharing,
games, and
entertainment, in
the Facebook page

VII. Alternative Courses of Action

1. Use Facebook to focus on engaging customers’ ages 18-33 years old.
2. Take advantage on customer’s activity, such as photo sharing, games, and
entertainment, based on Facebook’s data.
3. Use commercial website to primarily sell products while use Facebook to promote
and engage customers in buying products.
Pros:
 Differentiates the purpose of Facebook and Website
 Integrates the use of Facebook and Website
 Heavily targeted on the younger audience
 Contributes to the promotion and awareness of the company’s offerings
Cons:
 Can increase company’s expense
 Negative feedback is open since it is the social media
VIII. Choice
IX. Recommendation
X. Action Plans and Programs
KRA’s Objectives Activities Programs Timeline Budget Concerned Contingencies
Department
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