CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN

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CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign                        1

                     Case Study: J.Crew’s Rebranding Campaign

                              Shannon L. McCormick

                           Pennsylvania State University
CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign                                                        2

                                       BACKGROUND

        In the early 2000’s, J.Crew’s sales began plummeting as their signature casual and comfy
clothing could no longer compete with other market rivals. In 2003, the company hired Millard
Drexler, previous CEO of Gap, to re-energize the brand. As CEO, Drexler changed the vision of
the company to one that represented high quality. Drexler took a revolutionary risk and started
selling basic staples with a hint of luxury. After speaking with customers and learning that many
come to J.Crew for bridesmaid dresses, Drexler saw the opportunity to differentiate themselves
further and create a bridal line. Drexler also changed the company’s strategy from that of being
financially focused to one that is creative focused. The creativity of the fashion of J.Crew has
been further revamped with the help of Jenna Lyons, Creative Head, and now J.Crew stands at
the forefront of the fashion industry.
CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign                                                          3

I. CLIENT’S SWOT ANALYSIS

        J.Crew’s strength was that they had built a loyal following starting with their catalogue,
which had served as their initial sales point until actually opening a brick-and-mortar store six
years later. Their weakness was that they were hindering creativity with their focus on the
corporate bottom line. Their opportunity was to create a brand that offered high-low and fashion
forward staple pieces that could carry their target customer from day-to-night. Their threat was
of a highly competitive market where they were not yet diversified.

II. IDENTIFICATION OF STRATEGIC PLAN

       A. RESEARCH: J. Crew opened in 1983 with its first catalog, selling comfy American
          sports and loungewear. After six years without a physical store, J. Crew opened its
          first brick-and-mortar store at New York’s South Street Seaport. In 2003, Millard
          Drexler became J. Crew’s chairman and CEO and launched the rebranding of this
          classic American brand. Under his guidance, J.Crew began partnerships with iconic
          brands and even extended itself with the addition of different lines. In 2011, J.Crew
          went global when it opened a Canadian store and then, in 2012, went international
          through the launch of its ecommerce.

       B. MESSAGE: J.Crew rebranded with the message of fashion-forward staple pieces that
          were high quality and slightly luxurious. They reemphasized creativity over corporate
          strategy.

       C. AUDIENCE: With their rebranding, J.Crew targeted fashion forward clientele who
          had an appreciation for quality.

       D. OBJECTIVES:
          1. Diversify themselves in the market
          2. Maintain current customers while also attracting a higher-end clientele
          3. Become a leader in the fashion industry

       E. STRATEGIES:
          1. Diversify their product from competitors by finding their niche in the market
          2. Create a social media presence
          3. Make creativity the ultimate deciding factor

       F. TACTICS:
          1. Create an editorialized version of their catalogue
          2. Collaborate with other designers
          3. Hire Jenna Lyons as Creative Head

       G. EXECUTION: J.Crew’s main focus was a structural rebranding, moving away from a
          corporate way of thinking back to a creativity-based way of business. With the hiring
          of Millard Drexler, the company’s vision was transformed and then, with the help of
          Jenna Lyons, an entire creative rebranding resulted.
CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign                                                          4

       H. RESULTS:
         1. By 2005, J.Crew dramatically rebounded earning $3.8 million.
         2. In 2009, sales exceeded pre-recession levels.
         3. In 2009, same-store sales climbed 11%.
         4. The Obamas all wore J.Crew during the inauguration.
         5. Michelle Obama appeared on Jay Leno’s “The Tonight Show” in an entire J. Crew
            outfit.

       I. EVALUATION:
          1. PREPARATION: At the preparation level, J.Crew was successful in identifying
             their lack of diversified product and finding a new niche in the market through
             their offering of high-quality staple pieces.
          2. IMPLEMENTATION: At the implementation level, J.Crew found success
             transforming its old American sportswear image into an image of a high-fashion,
             trendsetting brand.
          3. IMPACT: At the impact level, J. Crew dramatically rebounded from its severely
             plummeting sales and now stands in the forefront of the fashion industry next to
             other prestigious brands.

II. IDENTIFICATIONS OF THEORIES & PERSUASION USED

       A. FRAMING: J. Crew successfully utilized framing as a technique in their rebranding
          campaign by redefining their image and repositioning themselves in the eyes of the
          consumer. They created the framework for how they wanted the consumer to perceive
          their brand.

       B. COGNITIVE DISSONANCE: J.Crew used cognitive dissonance by first, identifying
          what new image they wanted to project. Next, they had to change the current
          perception of the consumer who didn’t currently see them as a fashion-forward brand.
          Thus, J. Crew had to employ tactics to resolve this dissonance in order to further
          change their brand image in the eyes of the consumer.

       C. PERSUASION: J. Crew utilized persuasion in its ability to convince the customer of
          its new brand image.

III. ANALYSIS OF COMPANY MEDIA RELATIONS

        J. Crew was the first retailer to utilize Pinterest to debut their season’s catalogue. Even
today, their social media continues to grow and evolve. Additionally, J.Crew has created a blog
to further promote their brand image of a fashion powerhouse. Furthermore, J. Crew successfully
launched its fashion-forward credential when Michelle Obama wore an entire J. Crew outfit on
the Jay Leno’s “The Tonight Show.” They also successfully integrated themselves with famous
fashion-forward bloggers to help secure their position within the fashion industry.
CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign   5

IV. COLLATERAL

      A. J.CREW BLOG
CASE STUDY: J.CREW'S REBRANDING CAMPAIGN SHANNON L. MCCORMICK PENNSYLVANIA STATE UNIVERSITY - CASE STUDY: J.CREW'S REBRANDING CAMPAIGN
CASE STUDY: J.Crew’s Rebranding Campaign                      6

      B. NEWS RELEASE OF FOURTH QUARTER HIGHLIGHTS (PAGE 1)
CASE STUDY: J.Crew’s Rebranding Campaign                                                     7

       C. EXAMPLE OF THE CATALOGUE REBRANDED:

V. ANALYSIS OF MEDIA COVERAGE

       J.Crew obtained immense media coverage when the entire Obama family wore the brand
during President Obama’s inauguration. Furthermore, the brand gained even more publicity
when Michelle Obama wore J.Crew on Jay Leno’s “The Tonight Show.” The brand continues to
gain media coverage as Michelle Obama is an endorser of the brand. They also gain publicity
with their positive relationships with famous fashion bloggers.

VI. CURRENT STATUS OF ISSUE

       A. J.Crew is now a trendsetting brand during NYC Fashion Week.

       B. Current circulation for the company’s Style Guide (catalogue) is now over 40 million
          annually.

       C. J.Crew is now over $2.4 billion in annual sales.
CASE STUDY: J.Crew’s Rebranding Campaign                                                    8

VII. COMPARISON TO SIMILAR CASES

      A. BURBERRY: Similarly to J.Crew, Burberry was once an iconic brand but suffered
         severe loss when it began to be perceived as “gangwear.” The brand was so
         negatively viewed to the point where two pubs in Leicester banned anyone wearing it.
         Consequently, Christopher Bailey was hired as Burberry’s Creative Director and
         saved the company by creating modern and sexy pieces that ultimately re-popularized
         the brand. Just as J.Crew found success from Michelle Obama being an endorser,
         Burberry branded itself with high-profile celebrities such as Emma Watson and Kate
         Moss. Ultimately, sales rose and Burberry returned to the forefront of the fashion
         industry.

      B. HARLEY DAVIDSON: Similarly to J.Crew, Harley Davidson was forced to rebrand
         itself and did so emphasizing quality as a key factor. Facing bankruptcy, Harley
         Davidson updated the quality of its product and successfully changed its brand image
         in the eyes of the consumer. Just like J.Crew, this case proves the importance of
         quality of a brand perceived by the consumer.
CASE STUDY: J.Crew’s Rebranding Campaign                                                          9

VIII. ANALYSIS OF “LESSONS LEARNED” AND PERSONAL OPINION

       A. ANALYSIS OF “LESSONS LEARNED”:
                    From this case study, Public Relations professionals can learn the vitality
          of understanding your consumer, what they want and where your place is in the
          market. This case exemplifies the importance of establishing brand image in the
          minds of the consumer and then building and maintaining the relationship with the
          consumer. Furthermore, PR professional can take away how this case exemplifies
          the importance of perception. It also conveys the impact of the opinion of your
          target audience and thus the vitality of staying current with this target public.

       B. PERSONAL OPINION:
                     I believe that J.Crew’s rebranding was successful because of their decision
          to listen and learn from their consumer. By doing so, J.Crew proved that they
          understood both their target audience and their place in the market. They
          successfully identified a unique opportunity to differentiate themselves by offering
          high-end staples. This is then what allowed them the chance to establish their niche
          in the market. Furthermore, J.Crew’s decision to offer a bridal line also further
          exemplified their understanding of their customer’s needs. I also believe that it was
          extremely vital to J.Crew’s rebranding success to make the switch to creativity-
          based decisions and not based solely on corporate business.
CASE STUDY: J.Crew’s Rebranding Campaign                                                           10

IX. PROFESSIONAL PR OPINION: Melissa Lavigne, Co-creator of Culture Co-op

           As co-creator of a company that’s energy surrounds the wants and desires of the
consumer, Melissa believes that J.Crew successfully rebranded their campaign because of their
ability to take the time and energy to understand their consumer. She believes in the power that
comes with getting to know the customer and what his or her needs are. Melissa also said that the
company’s success at becoming a leader at the forefront of the fashion industry is due to their
ability to effectively identify trends. She said that it’s important for fashion leaders to accurately
predict the consumer’s needs, which can only be accomplished through truly knowing your
consumer.
CASE STUDY: J.Crew’s Rebranding Campaign                                                      11

                                          Works Cited

Amed, I., & Sherman, L. (2014, April 30). At Work With Mickey Drexler. Retrieved April 29,
              2015, from http://www.businessoffashion.com/articles/people/work-mickey-
              drexler

Aquino, J. (2011, February 10). The 10 Most Successful Rebranding Campaigns Ever. Retrieved
               April 29, 2015, from http://www.businessinsider.com/10-most-successful-
               rebranding-campaigns-2011-2#jcrews-sales-were-plummeting-now-michelle-
               obama-is-an-endorser-1

Chon, G., & Das, A. (2010, Nov 23). J. crew, investors near deal. Wall Street Journal Retrieved
             from http://search.proquest.com/docview/807725825?accountid=13158

Creative Risk-Taking: The J. Crew Rebrand. (2014, July 1). Retrieved April 29, 2015, from
              http://tuesdaychutter.com/j-crew-rebrand/

Help-About J.Crew. (n.d.). Retrieved April 29, 2015, from
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J. crew. (2010, Jul 21). Investor's Business Daily Retrieved from
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J.Crew Blog. (n.d.). Retrieved April 29, 2015, from http://hello.jcrew.com

J. crew's profit tops expectations. (2008, Mar 12). New York Times (1923-Current File)
                 Retrieved from http://search.proquest.com/docview/897122168?accountid=13158

Magsaysay, M. (2011, Jan 23). J crew goes hollywood. Los Angeles Times Retrieved from
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News Releases. (2015, March 18). Retrieved April 20, 2015, from
             http://investors.jcrew.com/phoenix.zhtml?c=135311&p=irol-
             newsArticle&ID=2026596&ver=jc

THE J CREW. (2011, August 23). London Evening Standard [London, England], p. 26. Evening
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Wilson, E. (2008, Oct 16). J.crew gets uppity. New York Times (1923-Current File) Retrieved
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