After reading the JCPenny Annual Report there are many economic challenges that the company faces. Some of the challenges that the management team can focus on may be their “ability to respond to any increased competitive pressures in our industry” and “customer acceptance of our marketing and merchandise strategies.”(JCPenney Annual Report, 2013) Both of these challenges can go hand in hand. The company should be focusing on the retaining the loyal customers they have and focus on how to advertise different economic target groups through the campaigns, promotions, advertisements, and observe what is currently working for their competitors. There are other retail industries that have more economic resource to ensure their branding gets the
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During this transition period, changes to our pricing and marketing strategies have resulted in a prolonged decline in sales and our results of operations have been significantly below our expectations.” (JCPenney Annual Report, 2013) The reporting doesn't transmit the company foresees an increase in its profits. It is important to take into consideration that the customer base they are trying to target needs time to adapt to the changes. The company is working on new pricing strategy, but how is the message getting crossed to the customer. How is the customer seeing the benefits. In the past few years JCPenny has taken the initiatives to revamp some of their locations and have added a very well known makeup, Sephora. With customers going into the Sephora section of the store, the hopes of JCP is the customer to also look around the store and shop. JCPenny should consider taking partnership with other well known brands to continue to attract different customer base. For example Lord and Taylor is a retail store that has all sorts of well known brands and very often have great discount sales. They attract customers who shop for quality and brand naming items like BCBG, Armani, Vera Wang and etc. The online store has great deals, the navigation is smooth and easy to understand. There are exclusive deals when shopping online. JCPenny can introduce new brands, improve on their online store, and promote different discounts exclusive to the online
During this transition period, changes to our pricing and marketing strategies have resulted in a prolonged decline in sales and our results of operations have been significantly below our expectations.” (JCPenney Annual Report, 2013) The reporting doesn't transmit the company foresees an increase in its profits. It is important to take into consideration that the customer base they are trying to target needs time to adapt to the changes. The company is working on new pricing strategy, but how is the message getting crossed to the customer. How is the customer seeing the benefits. In the past few years JCPenny has taken the initiatives to revamp some of their locations and have added a very well known makeup, Sephora. With customers going into the Sephora section of the store, the hopes of JCP is the customer to also look around the store and shop. JCPenny should consider taking partnership with other well known brands to continue to attract different customer base. For example Lord and Taylor is a retail store that has all sorts of well known brands and very often have great discount sales. They attract customers who shop for quality and brand naming items like BCBG, Armani, Vera Wang and etc. The online store has great deals, the navigation is smooth and easy to understand. There are exclusive deals when shopping online. JCPenny can introduce new brands, improve on their online store, and promote different discounts exclusive to the online