Pricing
JC Penney is a major department store, doing billions of dollars in revenue per year. The industry, however, is mature and some would say stale. Younger consumers in particular are not attracted to the department store shopping experience, instead choosing anything but. JC Penney tapped former Apple executive Ron Johnson as its new CEO, and made big changes to its merchandising and especially to its pricing. One pricing strategy that Johnson instituted was to eliminate the traditional JC Penney sales and opt for lower prices across the board (D'Innocenzo, 2012). Analysts from his alma mater Harvard Business School lauded him as a genius for the simplified pricing program (Girard, 2012). Yet, Johnson couldn't wrap his head around the fact that the key purchase drivers in department store sales are nothing like the purchase drivers in consumer electronics, and the pricing strategy did not go nearly as well as planned. HBS lauded the everyday pricing strategy -- at 40% the previous suggested prices -- as a classic business school case study. It is that.
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JC Penney's pricing strategy was a disaster. The store's old customers wanted to find deals, as that was one of the big appeals of shopping there. The deals, of course, were loss leaders and people would also end up buying some full-priced items while in the stores as well. But the new pricing turned off many of the store's existing customers, who were accustomed to cobbling together their own deals (Berfield & Maheshwari, 2012). After 17 months, Johnson was fired as CEO (Passikoff, 2013). The result was year-over-year sales...
JC Penney's In the retailing industry, it is challenging an organization to break down all its previous designs, advertising plans, and store environments to make a new beginning. Nonetheless, that is precisely what JC Penney did, and has done several times. Founded over 100 years ago, this organization has seen changes and redesigns with each new CEO. Recently, JC Penney, otherwise called JCP, has begun a fresh again with a new
JC Penney's New Pricing Strategy J.C. Penney was founded in 1902 by James Cash Penney, and by 1907 he had purchased full interest in three locations, moving his company headquarters from Wyoming to Salt Lake City in 1909. By 1912, there were 34 stores in the Rocky Mountain State areas. By 1928 Penny's had opened 1000 stores and by 1941 had 1600 stores in all 48 states. Penny's began national advertising
JC PENNEY'S RESEARCH PROJECT PROPOSAL -- JC PENNEY'S Research Project Proposal - J.C. Penney's JC Penney's Overview of Organization The J.C. Penney Company was once the dominant player in the retail industry as it was founded in the beginning of the twentieth century. However the company is now a holding company for struggling department store operator J.C. Penney Corp is still one of the largest department store and e-commerce retailers in the United States, J.C.
management styles used by JC Penney's management and pros and cons of each era of management. The paper begins with a general introduction of the management and then by answering the questions asked. The paper also evaluates company's management styles and problems faced by the company. Importance of innovative management style and a suitable style for JC Penney is also considered in the given paper. Management Penney being one of the
JC Penny Makeover Background on U.S. Department Stores and Background on J.C. Penney Dr. Robert Tamilia (Marketing professor at the University of Quebec at Montreal) explains that the department store in America not only "…revolutionized the retail store," and the shopping experience, and the available of products and promotional techniques, the department store contributed in a major way to the evolution of "...hiring practices and inventory control procedures" (Tamilia, 2002, p. 3).
External Factors Penny's proposed new pricing strategy The new Penny's proposed strategy is a revitalization strategy that is directed at the pricing procedures within the company. According to Penny, there should be a "Fair and Squire Every Day" pricing strategy. This new pricing strategy was not there initially. The transformations, which are also done by JC Penny's CEO Ron Johnson, are ambitious plans, which are geared at changing the phase of
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