NEW YORK — The transformation of JCPenney into America’ favorite store will begin with dramatically simplified pricing strategy and promotional cadence supplemented by an improved product presentation that will allow the 110-year-old company to regain its personality with a new generation of shoppers, according to CEO Ron Johnson.
Johnson presided over an unconventional two-hour investor and media event Tuesday morning at New York’s Pier 57 that was attended by an estimated 700 people. The choice of location, a dumpy waterfront warehouse, was symbolic in that the space was transformed to a bright and airy venue. Attendees were led down a long white hallway with images of the retailers print promotions from the past year into a meeting room with large pale blue screens onto which were projected images of clouds while new age jazz played in the background.
Johnson proved to be quite a showman as he took the stage and offered a compelling recap of how department stores slid from dominance in the 1960’s to where JCP is at today, which is basically a sea of sameness, with no price integrity and an emphasis on private brands that make it seem at times as if apparel is being sold by the pound.
Johnson is out to change perceptions and attitudes about JCP, and the path to becoming America’s favorite store will begin with a dramatically simplified pricing strategy and an equally dramatic reduction in promotions.
Fair and square is how Johnson described the new approach to pricing. The company knows that shoppers don’t begin to make purchases until goods are marked down 40% so that is where going forward pricing will begin. No games, just everyday fair values designed to regain trust with shoppers.
The same philosophy is being applied to promotional efforts where JCP is shifting from a highly promotional strategy in 2011 that saw the company invest $1 billion to promote 590 unique events to 12 monthly events each of which will receive $80 million in marketing support and include a 96-page direct mail piece with a heightened editorial emphasis.
“This new pricing approach and promotional cadence will allow us to change our personality,” said JCP president Michael Francis, the former chief marketing office at Target that joined JCP shortly after Johnson arrived.
The emphasis on monthly events has other benefits as well, according to Francis, because it simplifies store operations and frees up merchants’s time for assortment planning as opposed to constant pricing changes and determining which items to feature.
Longer term, the key element of transforming JCP into America’s favorite store involves a merchandising overhaul that is dependent on “shops” within the stores. Beginning this August, JCP will begin converting departments within its stores to shops utilizing new five foot by five foot modular fixtures that can be stacked or used to create walls. The shops will come at a pace of about two every months for the next three years until 100 separate shops are in place by December 2015.
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In terms of the marketing mix
In terms of the marketing mix some would say that price is the least attractive element. Marketing companies should really focus on generating as high a margin as possible. The argument is that the marketer should change product, place or promotion in some way before resorting to price reductions. However price is a versatile element of the mix as we will see. Restposten Our financial objectives in terms of price will be secured on how much money we intend to make from a product, how much we can sell, and what market share will get in relation to competitors. Objectives such as these and how a business generates profit in comparison to the cost of production, need to be taken into account when selecting the right pricing strategy for your mix. The marketer needs to be aware of its competitive position. The marketing mix should take into account what customers expect in terms of price.Reich mit Restposten
The ax has fallen at
The company was already planning to open a large number of stores, but then the opportunity arose to acquire 39 leases of former Zellers stores from Target. As a result, Walmart this year will open 73 stores totaling 4.6 million sq. ft. at a cost of $750 million that will leave it with 380 units by year end, 280 of which will be supercenters. That is up from the current 330 stores, of which half are supercenters as a result of a U.S. style supercenter conversion program begun in 2006.
Aside from the ambitious new store expansion program and Zellers conversions, it was hard not to be impressed with the caliber of the management team making things happen in Canada: suche shop für | Castings
International division president and CEO Doug McMillon, International CFO Kathy Smith or former Walmart Canada president and CEO David Cheesewright who now oversees Europe, the Middle East and Africa. Investors are familiar with these folks, and all are articulate, quick on their feet and accustomed to presenting to groups of skeptical analysts. Instead, it was Broader and others on her senior leadership team who stole the show. Broader in particular was very comfortable on stage and projected an aura of a confident competitor and an inspirational leader whose infectious passion is propelling Walmart Canada to new heights. In fact, listening to her describe the plan of action to drive growth and respond to questions from the floor, it became apparent that she is someone Walmart could turn to in the years ahead to assume greater responsibilities. This despite the fact that she has only been with Walmart for two years and there is plenty of heavy lifting in the years ahead to lead this year’s record expansion, withstand Target’s arrival in 2013 and drive further market share gains in food. Schalterprogramme | Intelligenztest
The ax has fallen at JCPenney. The company on Thursday laid off 600 workers from its corporate headquarters Plano, Texas, as its looks to streamline its business model amid a major reinvention of the business. The staff reduction, which equaled 13% to 14% of the headquarters staff, did not include any senior executives, according to The New York Times. JCPenney said its new approach to pricing, promotion, merchandising and the customer experience requires a more competitive operational structure, with fewer layers of management. In a statement, CEO Ron Johnson said JCPenny was going to operate like a start-up. ABACUS Nachhilfe Hamburg
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