Fair and Square
Retail Strategic Analysis: JC Penny
Professor Maria Kalamas
MKTG 4300/01 Basic Retailing- Spring 2012
Team Shopaholics Anonymous
Vaughan Alexander | Marshall Gingles | Sean Lehnherr | Aftiam Ramli | Juan Torres
Table Of Contents
Multipart Analysis of the Retailing Mix
Customer Service 05
Advertising ...view middle of the document...
In short he wanted to ensure that all who worked for him understood the principle “treat others as you wish to be treated”
JCPenney, like all major department stores, has seen their store rise and fall in the retail world. At one time JCPenney was considered the pentacle of discount shopping and was consistently growing. A heavy recession in 1974 was the first major obstacle for JCPenney and from there on forward it seemed difficult for the retailer to make progress in the magnitude it had the previous years; however the retailer continued to make profits. In 1998 JCPenney introduced its online catalog service; in the beginnings JCPenney’s catalog was strictly paper and a major player in its business strategy and profits. The introduction of the online shopping proved extremely beneficial for the company due to the online boom of the late 90’s and early 2000’s.
Today JCPenney finds itself at a very interesting cross roads. In the summer of 2011 JCPenney welcomed new CEO Ron Johnson, a former Apple executive. This was a major move for JCPenney considering the recent years showed a steady decline in profits and Market share. Store closings were becoming a regular thing and the Executive committee saw Ron Johnson, who has had major success in retail, as a chance to turn the company around. On February 1, 2012 the company launched its new strategy centered on “Fair and Square” Pricing. This is the first stage of “many changes to come” according to Ron Johnson. The company also has a new mission statement behind these changes it reads that JCPenney is “to be Americas favorite store”; a copy of the mission statement advertisement can be viewed in the exhibit section below. Below our team will go into the inner workings of the JCPenney corporation in hopes to not only discover their retail strategy but to also look at the evolution of the company and where it may be heading.
JCPenney has always kept the strategy in mind to offer discounted but good quality products to its customer so it’s natural that price conscious shoppers have been drawn to the retailer over the years. These shoppers are usually in the upper lower too middle class.
With the upper-lower class JCPenney wanted to offer a brand that can be afforded by all. The lower class have a lower disposable income so to attract these customers past ads would dedicate pages to what was formally known as “Blow out Clearance”. These sections would promote clearanced items starting at 50% and ultimately going to a discounted price of 80%.
The middle class, those making between $40,000-$60,000 a year, is the primary target market for JCPenney. They wish to appeal to this class by offering a trendy clothing assortment but still maintain a price that will be within acceptable ranges. Prior to the pricing restructure JCPenney would have major sales during peak times of the year focused on bringing in this demographic.
The company wanted to appeal to all of its...