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Abstract

JC Penney, US retailer was founded over a century ago (1902) in the US. It had over 1100 retail stores in malls offering varieties of consumer goods. JC Penney had reported sales of $17.8 billion in 2010 with their fair and square pricing strategy. JC Penney had not resorted to any innovative, attractive offerings to the shoppers to boost up the sales. It continued with the traditional marketing style of static pricing with quality assurances and had not gone aggressively in internet marketing as competitors of late resorted to. Margin has been under pressure and JC Penney had been losing market share to their peers post recession in late 2000s. Under the leadership of Ron Johnson, who had moved from Apple Inc in November 2011, had adopted transformation strategies in pricing, promotions and store formats. The company had planned for a three tiered pricing - everyday pricing, month long and best prices to woo the customers. Through this strategy JC Penney had planned to reduce their promotions to 12 and reduce their marketing spending to $80 million a month. It was also planned to give a new look at all the retail outlets, offering delightful gifts to the customers. The case study analyses the growth of JC Penny, their strategic faults and the new policies to be adopted amidst competition and if these measures would really help JC Penney to post increased revenue and attract larger customer patronage.
Location:
Industry:
Other setting(s):
2012

About

Abstract

JC Penney, US retailer was founded over a century ago (1902) in the US. It had over 1100 retail stores in malls offering varieties of consumer goods. JC Penney had reported sales of $17.8 billion in 2010 with their fair and square pricing strategy. JC Penney had not resorted to any innovative, attractive offerings to the shoppers to boost up the sales. It continued with the traditional marketing style of static pricing with quality assurances and had not gone aggressively in internet marketing as competitors of late resorted to. Margin has been under pressure and JC Penney had been losing market share to their peers post recession in late 2000s. Under the leadership of Ron Johnson, who had moved from Apple Inc in November 2011, had adopted transformation strategies in pricing, promotions and store formats. The company had planned for a three tiered pricing - everyday pricing, month long and best prices to woo the customers. Through this strategy JC Penney had planned to reduce their promotions to 12 and reduce their marketing spending to $80 million a month. It was also planned to give a new look at all the retail outlets, offering delightful gifts to the customers. The case study analyses the growth of JC Penny, their strategic faults and the new policies to be adopted amidst competition and if these measures would really help JC Penney to post increased revenue and attract larger customer patronage.

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Location:
Industry:
Other setting(s):
2012

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