There are numerous companies that fit the bill of falling short in implementing the marketing concepts, due to not focusing on creating, delivery, and communicating superior value to its customers. One company that comes to mind is JC Penney (Penney), as an iconic discount and sales retailer, where it made its debut in 1902 as the Golden Rule store (JC Penney, 2011).
Penney survived countless strategic business challenges, but was able to maintain its existence, yet barely holding on throughout today. There were many strategic mistakes made that started around 2010 with CEO Mike Ulmam, where Penney held profits but considered a low-performance retailer, compared to Macy and Kohl’s (QUOTE, 2013). This prompted change in direction of leadership …show more content…
This is highly due to the overly ambitious plans to: rebuild the retailer brand, pricing, merchandising and advertising strategy at the onset of his tenure. In as much, the prior market and advertising strategies were outdated. Johnson’s approach to offer “fair and square” pricing, in which Penney’s needed to fully turn-around profits gain market shares. However, the implementation of this strategy further induced profit lost where shares spiraled 54%, sales fell 25%, which deprived the corporation of $4.3 Billion in revenue (Denning, …show more content…
First, Ron Johnson did well by heading off and “tapping” into new offerings of newer designers brand (JC Penny, 2013). Subsequently, this strategy plan did not acquire, achieve nor sustain a competitive edge. Second, promote a culture of customer orientation while embracing marketing oriented concepts, which further satisfies customer wants and needs, as they expect. Furthermore, allow customer to be involved in the elimination of brands product, and the eradication of coupons and other clearance savings, that builds trust and vindicate the product offerings of value (i.e., tangible, intangible, price) in exchange for both buyer and seller (Saylor, 2012, chapter 1). Third, creating a “zero-defection culture”, by diminishing the customer defection rate earlier through analyzing and addressing retention, can boost profit by 100% if 5% more of customers are retained (Sassar,
Penney survived countless strategic business challenges, but was able to maintain its existence, yet barely holding on throughout today. There were many strategic mistakes made that started around 2010 with CEO Mike Ulmam, where Penney held profits but considered a low-performance retailer, compared to Macy and Kohl’s (QUOTE, 2013). This prompted change in direction of leadership …show more content…
This is highly due to the overly ambitious plans to: rebuild the retailer brand, pricing, merchandising and advertising strategy at the onset of his tenure. In as much, the prior market and advertising strategies were outdated. Johnson’s approach to offer “fair and square” pricing, in which Penney’s needed to fully turn-around profits gain market shares. However, the implementation of this strategy further induced profit lost where shares spiraled 54%, sales fell 25%, which deprived the corporation of $4.3 Billion in revenue (Denning, …show more content…
First, Ron Johnson did well by heading off and “tapping” into new offerings of newer designers brand (JC Penny, 2013). Subsequently, this strategy plan did not acquire, achieve nor sustain a competitive edge. Second, promote a culture of customer orientation while embracing marketing oriented concepts, which further satisfies customer wants and needs, as they expect. Furthermore, allow customer to be involved in the elimination of brands product, and the eradication of coupons and other clearance savings, that builds trust and vindicate the product offerings of value (i.e., tangible, intangible, price) in exchange for both buyer and seller (Saylor, 2012, chapter 1). Third, creating a “zero-defection culture”, by diminishing the customer defection rate earlier through analyzing and addressing retention, can boost profit by 100% if 5% more of customers are retained (Sassar,