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Jc Penny Case Study

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The first problem we discovered is 80/20 which is 80% of your sales or profit comes from 20% of your customers, and JCP losing loyal customers because of “Fair and Square” pricing strategy.
The next big problem we found was the lack of market research, JCP did not conduct proper market research. Much blame put on the marketing execution and the customers reliance on price promotions. Johnson believed JCP will end up successful like Apple where he worked previously and targets new pricing strategy. Having Ellen DeGeneres as a spokeswoman shortly after her ad aired a conservative Christian group took offense to her homosexuality and viewed it as problematic for the brands image and the traditional family demographic.
Integrated Communication is another problem that JCP faced because they failed to clearly communicate their new pricing strategy with their customers. The new “Fair and Square” ads were reminiscent of targets award-winning ads, these ads failed because only 16% associated “Best Price” with JCP. Failed to communicate their three tier prices “everyday”, “Month Long Value”, and “Best Price Friday”. And also ended odd end pricing and the consumer didn’t understand why.
Finally they had promotional problems, they eliminated what made JCP loved and differentiated from its competitors such as Cash coupons, Redzone clearance aisles and doorbuster sales and Black Friday sales. Which everyone knows that brings in the demographic that JCP has relied on for years. Instead of these sales JCP would distribute a high quality magazine with each “Month Long Values” but its 96 pages! Customers were moving away from JCP because they no longer received their coupons and started shopping at retailers like Target and Walmart. Other customers felt that JCP started catering to the younger shopper, and the younger shopper isn’t going to keep JCP in business. Also

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