Jcp Case

JCPenny

Research JCP before the transformation on their 4Ps and target market. Draw a SWOT analysis.

JCP is one of the largest general merchandise catalog retailer in the US. JCP offers a range of apparel, jewelry, shoes, and home furnishings products through a chain of department stores and websites (J.C. Penny, n.d.). Before transformation, JCP has:

Strengths: JCP offers wide products and service offerings through multiple retail channel, and their customer first initiative obtained a lot of commends(J.C. Penny, n.d.) . Otherwise, compare with the other department stores, JCP has balanced brand portfolio(J.C. Penny, n.d.) .

Weaknesses: Recently years, JCP is experiencing a strong decline in the comparable store sales, and continuous product recalls bring JCP bad mouths (J.C. Penny, n.d.).

Opportunities: JCP focus on expansion of in-shop Sephora stores and gets huge success. They are launching new exclusive and private label brands, and they are developing the online shopping.(J.C. Penny, n.d.)

Threats: JCP has weak financial projection for FY 2010(J.C. Penny, n.d.) . The rising labor cost in the US has become the main threat of JCP, as well as moderate new store openings (J.C. Penny, n.d.).

2. Research JCP’s transformation on their 4Ps. What changes were made by Ron Johnson? Why were the changes made?

Mr. Johnson tries to transform JCP into a specificity department store (Company News, 2012; Falling, 2012). Staring at Feb. 1, 2012, several new strategies were introduced. First new strategy is called fair and square pricing and monthly promotion. JCP's new strategy is including three part: regular prices for everyday, month-long values on the things consumers need now, and best lowest prices happen on the 1st and 3rd Fridays of every months (Company News, 2012). The new price strategy is coming with monthly promotions. JCP plans to have 12 promotional events every years, and every months there will be unique products and services at...