JC Penney Case Study
JC Penney was an american businessman born September 16, 1875 in Caldwell County, MO. He worked at a dry goods store where he learned the business and eventually opened his own store in 1902. He expanded to 175 stores by the time he retired in 1917. He stayed active behind the scenes at the company to help plan the chains future. During the great depression, his stores survived by offering a good value to customers on a budget. He was a member of the Board of Directors until his death on February 12, 1971.*
JC Penney Advertising Campaign Ad (1 year ago)
November 2011: Ron Johnson arrives and is warmly welcomed.
JCP
One year ago, JCPenney announced Ron Johnson, the man at the helm of Apple retail through the company's epic rise, would be taking over as CEO in November. Stock surged on the announcement and speculation was rampant about what the former Apple guru would bring to JCP. Johnson was formerly a vice president at Target and was lauded for his retail genius.
There was talk of a JCP Genius Bar, the new pricing structure, and more. Things were looking up, even if it wasn't clear how Johnson was going to make all these changes.
In January, Johnson lays out his vision with a Steve Jobs-esque keynote.
Aimee Groth, Business Insider
Johnson got to witness the master of keynotes work many times during his tenure in Cupertino, Calif. In January, he held an Apple-style conference that made it clear: JCP was going to try to be like Apple.
It was awkward how many times Apple was mentioned during the keynote, but that's what the people wanted to hear.
The key takeaways:
- Marketshare is king.
- Retail prices have risen, while retail value has remained stagnant. This leads to discounting, which hurts brands like JCPenney.
- JCPenney ran 590 promotions in 2011, consumers ignored 99 percent of them. As such, Johnson only wants 12 promotions.
- Sales were removed in favor of regular pricing with the best prices offered the first and third Fridays of each month.
- Rather than one big store, Johnson wants brands to have smaller shops within JCPenney locations, a Genius Bar type concept will be placed in the middle.**
J.C. Penney is closing eight more stores. Is yours on the list?
House GOP leaders are pitching reforms to the Supplemental Nutrition Assistance Program as they try to get a farm bill to the floor, while top House Democrats hit President Donald Trump on his plan to lower the high cost of prescription drugs. (May 16)AP, AP
(Photo: Stephan Savoia, AP)
J.C. Penney is closing eight stores this year, most of them by mid-May. Here are the cities that will be affected.
St. Louis, MO Hampton Village Plaza 50 Hampton Village Plaza
Paramus, NJ Garden State Plaza 502 Garden State Plaza
Galesburg, IL Sandburg Mall 1150 W. Carl Sandburg Dr.
Alexandria, MN Viking Plaza 3015 Hwy 29 S
Bartlesville, OK Washington Park Mall 2350 SE Washington Blvd
Burlington, WA Cascade Mall 300 Cascade Mall Dr.
Calexico, Ca. 315 E. Second St.
Mt. Vernon, Oh, Knox Village Square, 1530 Coshocton Ave.
Questions to ask class:
1. What do you think JC Penney could do to better their marketing plan.
2. What do you like about JC Penney and will they survive?
Works Cited
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