JCPenney’s New Pricing and Marketing Strategy
The media is all abuzz about a major department store’s new marketing strategy. JCPenney, the department store that has seen better days, has officially released its new advertising campaigns showcasing their new marketing strategy.
Ron Johnson, the new CEO of JCPenney, left Apple to help the suffering brand redefine its place within the retail sector. For years, the top department store shoppers (moms) have been replacing JCPenney with department stores like Kohls and Macys. These shops offered better shopping experiences and better values. Finally, with Johnson’s vision, JCPenney is rebranding itself and hoping to differentiate it from any other department store out there.
Johnson’s plan centers around less confusing prices. While the department store currently sells most of its inventory at “sale” prices, shoppers remain confused and have begun to realize that a sale really isn’t a sale. So now, rather than having 590 promotions a year, they’ll have 12 promotional months, each focusing on a different promotional scheme. The result will be sales that are actually sales and pricing that actually reflects what the product should sell for.
The marketing design and logo have also been updated. The box JCP is now in a logo that resembles an American flag. The marketing is fun, young, and funny- similar to the changes Target made years ago.
Not forgetting the in-store experience, Johnson also hopes to create actual departments within the stores. Stores will be remodeled with 100 different shops, a change that he hopes to begin in 2014.
Just seeing the changes these first few days and hearing about the future in-store changes, I am extremely excited about what may happen to JCPenney. So many brands fail to realize their downfalls and admit their need for change. It’s very refreshing to see a brand willing to step into the unknown rather than try to slowly pull itself out of water (ahem…Kmart, Sears).
Very exciting times in the retail world and definitely a brand to watch!
- Bryan Nagy