J.C. Penney's Focus Essay

J.C. Penney Company, Inc. besides known as JC Penney or ‘The Company’ is one of the taking retail merchants of US. It offers a assortment of household dress, jewellery, places, accoutrements and place trappingss through its section stores’ concatenation and e-commerce web site, “jcp.com.”In 2010JC Penny failed to manage client traffic through ecommerce. It besides failed to interpret its concern theoretical account for an on-line shopping experience andwas fighting internally ; decelerate to crush competition, inefficient return policy, hapless client relationship direction, which resulted in important fiscal problemsand lost trade name identity.In November 2011, Ron Johnson was appointed as the new CEO for JC Penney to assist recover the company’s competitory border.

His scheme includedPricingfor Gross saless Promotions: In order to portray the company image as a higher-quality retail merchant like its rivals ; Macy’s and Kohl’s, JC Penney establishednew, three-tiered “fair and square” pricing scheme ; mundane monetary values, month-long values, and best monetary values. Everyday monetary values specified day-to-day low monetary values ( about 40 per centum lower than old 1s ) , month-long values indicatedmonthly price reductions on ware and the best monetary values stated the clearance monetary values established on every month’s foremost and 3rd Fridays.“Happy Return” Policy: this new friendly policy to return any article, anytime and anywherewas established to recover the agitated customers.

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In the presence of reception, the client could interchange the merchandise or acquire a full refund. However, in instance of no reception, the point could still be exchanged, or the client could gain a full refund through a JC Penney gift card.Logo:The new, fresh and sleeker logo, designed to resemble the American flag in order to mean nationalism andemboss JC Penney as an American store.The logorepresented the new “fair and square” pricing scheme.Shop Layouts:in order to supply a loyal American atmosphere, the big aisle go throughing through the center of the shop was named “Main Street, ” and the antique cardinal jewellery counters were replaced by a “Town Square.”Spokesperson:Ellen DeGeneres continued to be JC Penny’s interpreter.

The rebranding scheme by the CEO Ron Johnson had been uneffective as the communicating defects affected the company really severely ;IdentityCrisis:Consumers are confused about the repositioning of JC Penny. Thecompany focusas a lower-end discount house and a higher-end section shop has damaged the company’s placement as the retail spectrum where the company falls is no longer clear.Lost Customers, Gross saless and Profitableness:The loyal clients preferred theJC Penney brand’s system of vouchers and seasonal gross revenues. The new pricing created confusion over the quality and pricing of merchandises.

The new CEO, Ron Johnson focused on deriving new customersat the cost of abandoning its old customers.The consequence was dissatisfied clients who felt that the section shops became more expensive and less gratifying. The middle-market lost its expected price reductions.Employee Confusion About the new Internal Policies:As a CEO, Ron Johnson failed to pass on the scheme and programs to the employees which created more confusion and it made it difficult for the employees to associate themselves to the policies. As a consequence, JC Penney had to rehire Myron Ullman in April 2013to replace Ron Johnsonfor JC Penny’s endurance. In January 2014, JC Penney Co. has planned to shut down 33 shops and removearound 2,000 occupations to assist salvage $ 65 million a twelvemonth.

The lessons from CEO’s uneffective communicating scheme are as follows:Ineffective internal and external communicating:While undergoing a extremist trade name transmutation, the current way demands to be efficaciously communicated to possible consumers. JC Penney failed to pass on the displacement from the store’s traditional theoretical account. Italso failed to efficaciously pass on and implement the new pricing system within the sections. This failure in attempt to efficaciously pass on the transmutation of trade name image, individuality and placement resulted in the loss of traditional clients and is failure to pull new clients.

This negatively impacted the company’s gross and profitableness. This besides led to client ailment will and customerunwillingness to shop at JC Penney. Ron Johnson lacked the art of directing the directors and employees to the new scheme and pricing system.As a consequence, directors and employees could non associate themselves to the shops.Inability to fulfill stakeholders:It is extremely of import for a Chief executive officer to safeguard involvements of and fulfill the stakeholders but unluckily it has non been the instance here in Ron Johnson’s term of office. The stockholders desire to retain net incomes and better portfolios, consumers are confused about different merchandises and quality, monetary value system, and hapless price reductions, and employees are disquieted about losing their occupations with shops shuting down.

The recommendations for the new CEO are to plan an advertisement run that can explicate to its clients how it has made a transmutation to fulfill their shopping demands, better the wages system to farther promote trueness by offering more price reductions to loyal clients, derive client penetration to polish the shopping experience by deriving client feedback through studies, maintain clear lines of communicating so that employees are informed of policy and strategic alterations, send “Miss You” letters to old clients and letters to current clients to explicate to them JC Penney transmutation, train employeesregularlybefore implementing alterations to guarantee employee consciousness and apprehension, enhance unfastened communicating in organisation civilization for effectual information flow between directors and employees, and better the ecommerce and communicating through betterment in web site.


Strong trade name acknowledgment
Available in all sizes
Spouses with David’s Bridal & A ; Sephora
Low-cost rates
Large figure of shops countrywide

Decline in gross revenues
Low popularity
Confused trade name individuality and place
Less vouchers
Reasonably expensive pricing
Poor advertisement run

Interacting through societal media
Appoint younger interior decorators
New interpreter
New merchandise lines can be introduced
Improve online gross revenues

More informed consumers can compare trade names online
Increasing competition
High labour cost in US
Same vesture lines as rivals means less distinction


Beltran, Joshua et Al.JC PENNEY, INC:The impact of rebranding on internal and external communicating. 2013. The Web
hypertext transfer protocol: //classic.marshall.usc.edu

Kitchens, Ashley et Al.jcp.The Web.
hypertext transfer protocol: //www.slideshare.net

JC Penney to Close 33 Stores, Cut 2,000 Jobs.2014. The Web
hypertext transfer protocol: //adage.com/article/news

JCPenney Strategic Communication Plan Book.The Web.
hypertext transfer protocol: //eportfolios.ithaca.edu


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