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  • Essay / Main Reasons for the Decline of JC Penny - 1525

    Overview of the JC Penny Case In my review of the JC Penny Case, I focus on understanding the main reasons for the decline of the JC Penny brand as well as the ways to stabilize and restart it. First, I argue that the primary causes of the brand's decline were caused by the actions of then-CEO Ron Johnson, who misunderstood what the JC Penny brand was, causing the JC Penny brand to lose focus. to the company's target market. From there, I suggest the company brings back popular private labels, starts listening to its customers, and embraces the growth of online retail. Finally, in order to ensure long-term success and stability, JC Penny must be repositioned as a modern brand that truly cares about meeting the needs of its customers by striving to inspire them in their daily lives. Managerial actions, brand neglect and loss of key target market factors in the decline of the JC Penny brand. After his hiring, then-CEO Ron Johnson introduced a pricing philosophy called "true price," which involved replacing sales via coupons with everyday low prices. This eliminated the need to inflate prices which would then be reduced for sales. However, Johnson overestimated the rationality of consumers and forgot that coupons were communication tools announcing the start of the shopping season5. Their main customers depended on coupons and often waited for sales before making purchases. Coupons gave customers a psychological justification to buy good deals. In addition to alienating core customers by removing coupons and sales, he tried to transform JC Penny into a more modern shopping experience with boutiques within the larger store, Wi-Fi and juice bars offering smoothies and coffee3. National brands replaced p...... middle of paper ......ly. The winning family would appear in a series of JC Penny commercials sharing their story. There would also be a website where people could share what family means to them, discuss the unique issues their family faces, and receive helpful advice and support from others, creating a sense of community . This presents JC Penny as a company that looks beyond the bottom line and truly cares about engaging and meeting the needs of its customers. Redefining the word “family” would help destigmatize JC Penny as only known for its discount family shopping experience. All marketing tactics discussed will be used to obtain customer feedback, gauge their perception of the new product. branding, increase traffic in stores and online, increase knowledge about JC Penny and hopefully position JC Penny for long term success.