Presentation Transcript

1. JCP & the Missing Pieces

   JCPENNEY

   Bailey Martindale, Balay Hartman, Mary Mandeville
2. The Beginning Founded in 1902 by James Cash Penney Started as the Golden Rule dry-goods store in Wyoming Company went public in 1927 J.C. Penney was known for conservative policies Credit card introduced in 1958 against the now retired Penney’s wishes Over the Years J.C. Penney expanded their merchandise to compete with competitors such as Sears Mail order sales with the Penney Catalog Expanded overseas and relocated its headquarters from New York to Dallas J.C. Penney in the New Millennium Closed it’s international division in 2003 Downsized from 2,000 stores to 1,100 Partnered with Sephora in 2006 Attempted to gain new clientele and appeal to new target audience Launched it’s American Living Brand in 2008 Attempted to breathe new life into the struggling company History of J.c.penney
3. Trouble The new concepts confused both customers and employees In less than two years, the company’s stock dropped nearly 50 percent, 19,000 people lost their jobs and sales fell by more than 25 percent Under CEO Ron Johnson, JC Penney tried to change its strategy in several ways, but perhaps the biggest change was to promotion policy. The company significantly cut back on the promotions that department store consumers have been accustomed to for decades, not just at JC Penney's stores but at the stores of its competitors. Customer Complaints Why Johnson Failed JC Penny operates in a competitive landscape that promotion-intensive and completely different than the heavily priced-controlled and limited distribution world of Apple. Consumers are used to promotions in the department store world, even more so in the segment of the market that JCP operates in. These are price-sensitive, budget-constrained consumers who are willing and able to go to the store next door for better deals. Not only did the new strategy take away a lot of "deals" that attract consumers to a store and make them feel like smart shoppers, the net price paid by consumers most likely increased because regular prices weren't reduced enough. The appeal of the redesigned JC Penney store is simply not strong enough to offset this. There is too much competition right around the corner. Even though marketers love to hate promotions, unless you have a very highly-differentiated and premium product, they are extremely important. Promotions offer both monetary and smart-shopper appeal. Johnson’s Strategy
4. Ron Johnson Standing in the Market 2013-2014 Reports
5. Gears of Business Market Summary Analysis
6. Adjust for Weaknesses, Utilize Strengths, Level Out Threats, Make the Most of Opportunities SWOT
7. “We can’t solve problems by using the same kind of thinking we used when we created them” – Albert Einstein Problems Solutions

8. Inconsistent Branding

9. Pleasing the Customers Finding their identity Aligning themselves against the right competition such as Kohl’s and Target, no Macy’s or high end department stores Creating Consistent pricing strategies and branding Offer high quality style for an affordable price – Trendy and affordable vs. high designer brands Reintroducing frequent promotions and discounts Highly competitive marketplace – offer sales, discounts and promotions in order to compete Setting themselves apart from the competition Offering higher quality than competition such as Kohl’s and Target, while still offering competitive prices and promotions. Through marketing, sales and promotions – Drive customer flow Interactive social media Getting input from customers and showing they listen and appreciate the opinion Broadcast sales, promotions, etc. through Twitter and Facebook. Have check-in discounts, survey discounts Company Drivers/Marketplace Drivers Strategy Competitive pricing High quality Desirable Setting Great Customer Service
10. Creating a Positive and Influential Culture Transparency Integrating a n effective balance of top-down, bottom-up communication Build a culture where the best ideas are built from the ground and filter up Hire creative and hard working people Ensure employees feel empowered and open to experimenting and sharing ideas Develop a company culture statement Incentives and rewards for excellent performance. Offering social opportunities and civic involvement opportunities to further develop the culture Return to business casual in stores and implement the “Golden Rule” principle Reestablish the basic principle of serving the customers at the highest level Find employees who want to serve the customers and are invested in making the customer experience a positive one Executive/Corporate Figure out what is currently lacking in the company culture, where it stands, employees view on the culture Develop better hiring practices/guidelines Hire for the culture Do they fit in, get along Do they add to the culture Can they work hard & play hard Culture Realign the drive of the company and the values Set the bar high Strong and positive leadership develops a strong culture and attracts high quality individuals Add creative’s to the executive team not just business professionals Broadcast the new company culture once it has developed
11. In Store Revamp of store layout Brighter, livelier Eliminate the cluttered feel Revamp of storefront – make cohesive with rebranding Test Stores 75-100 test stores before rolling out across the entire JCP Payroll savings, employee incentives, promotions, merchandise, etc. Marketing Need a revitalization of advertising and marketing Feels outdated Make it fresh and fun Customers compare/contrast to Target Advertising is not as lively, trendy, fun Doesn’t make them want to go into the store Is not appealing JCP’s latest ads are headed in the right direction. Design Old ads

12. Advertising Examples

13. Logo Ideas