Essay on Jc Penney Marketing Analysis
March 28, 2013
JC Penney is one of only a handful of one hundred year old plus companies in the United States. Founded in 1902 by James Cash Penney, the company has grown into a major retailer, with 1,104 stores and approximately 116,000 employees as of February 2013. The company sells merchandise and services through its department stores and website, jcp.com. Their product mix includes clothing and shoes, accessories, jewelry, home furnishings and beauty products. In addition, they provide services such as styling salons and portrait studios.
James Cash Penney founded the company on the Golden Rule; treat others the way you want to be treated. That strategy worked well for them over …show more content…
Some of JC Penney’s core strengths are their long history, established locations, nationwide presence and strong brand recognition. They’re known as a brand destination, offering reasonably priced and popular national and private brands. They cater to a huge portion of the population, the American middle class. They have convenient locations and are typically an anchor store in shopping malls. Their in-store Sephora shops attract younger and middle to upper middle class consumers. They have a well diversified supplier base, strong marketing campaigns, and effective cost and inventory management systems.
Their first and foremost weakness is the new pricing strategy, Fair and Square. Their elimination of coupons and daily sales caused a backlash from their core customers, as indicated by the tremendous decline in same store sales. Those coupon addicted consumers appear to be moving over to low cost Kohl’s. Also other groups of consumers do not view them as trendy and are choosing to instead visit competitors Macy’s and Target. Their convenient locations are also a weakness as well as strength, as they viewed by some as stuck in shopping malls, with high rent and little flexibility.
JC Penney’s stores-within-a-store concept appears to be a huge opportunity for the company. The fresh, open spaces dedicated solely to