Jcpenney business model

Management at

JC Penney Company, Inc.

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Table of Contents Management Style At JC Penney Since Inception 2 Transition From Catalogue Based To Internet Based 3 Impact Of Celebrity Endorsements 4 Creative Idea For Management 5 Prediction Of Ability To Adapt 6 References 6

Management style at JC Penney since inception

In the retail domain, it is hard for a business to liquefy all previous strategies, advertising strategies and store surroundings to mark a new jump. Nevertheless, that is precisely what JCPenney did, and has done, numerous periods. Generated over hundred years before, this business has seen variations and comprehensive renovations with each novel CEO. Recently, JCPenney, also recognized as JCP, has begun renewed another time with new President Michael Francis and CEO Ron Johnson.

Together the two heads of JCP originated from efficacious ground-breaking corporations and are currently fetching this achievement to their new corporation. The restructured variations came into effect in February 2012 and have transformed the assessing arrangement inside the store. The store has been imparted a novel style with novel advertising, rating, store situation, administrative building, and advertisings. All of these variations have been organized about regions that were formerly not demonstrating operational to the business’s achievement.

In the past, JCP gave to its clienteles at least one price campaign every day. The collection was full of sale signs and retail rise was getting out of control. JCP obtained numerous select collaborations throughout the past numerous years that had composed the business for an enormous expansion. Though, due to the slump, an over saturation of the marketplace, and an expected absence of excellence in the goods from its consumers, JCPenney’s success was sliding in contrast to its contestants (Sloan, 2010).

Now, JCP is functioning to get rid of this previous look and emphasis in its place on fair valuing, stimulating advertising, and highlighting the select products that are presented. With all the thrilling plans revealed by JCP, there are residual regions that the business has not addressed. These fissures could damage the corporation in the extended course and stop the modernization it is trying to attain. Within JCPenney’s administrative structure, the company named Thomas Nealon and Michael Theilmann Executive Vice Presidents (EVPs) of the Corporation in 2010, each supposing prolonged operative accountabilities (Canter, 2010). This was a very optimistic alteration for the business and a sign of robust interior assets. The duties for Theilmann will be the stock organization and continue to be the head of human resources, supply chain, and management. Nealson’s accountabilities will be to look after JCP.com, IT, policy making, and JCP’s digital ventures association, which includes the policy within digital prospects and development schemes (Canter, 2010).

CEO has fetched in healthier teams and sturdier, more self-confident Long Range Plans to pitch the business for development. Certain possible variations in funds comprise lively variations in the delivery hubs and supply chains. The variations would most possibly include a change to a total RFID scheme usage, necessitating a change period for the corporation. This shift would definitely affect customers and the business contribution more effective consignments and reliable filling of general merchandise (Sloan, 2010).

Transition from catalogue based to internet based

On January 24, 2011, JCPenney pronounced it would exit the catalog corporate and close all nineteen of its catalog channel outlets. A supplementary seven outlets, two call center services, and one purchaser beautifying facility was also locked. One of the JCPenney outlet Store that shut, at in Philadelphia, was substituted on March 2, 2012 by a normal JCPenney outlet.

Shift from the catalogue based store to the internet based store has been a successful one since the online business; JCPenney.com has been ranked No.one on the Nielsen/NetRatings list of online attire and home stock stores. It ranks No. seven on a wider list, PC Data’s Top 20 Online Retail Report. Also, the website is far ahead of its main competitor Sears.com, but the gap is slowly terminating.

A main reason for the JCPenney.com’s online accomplishment is its established track record and knowledge with catalog deals. For more than thirty seven years, J.C. Penney has efficiently achieved its $4 billion-a-year catalog segment, letting JCPenney.com to concentrate on its Web substructure in place of increasing storerooms and customer service centers. JCPenney.com’s E-commerce deals get satisfied out of the similar five delivery hubs that handle its catalog consignments. Also, its E-commerce consumer car emails and calls come into the same call hubs that handle its phone shipments. Moreover, all products purchased online at JCPenney.com can be taken or returned to any J.C. Penney merchandising outlet or catalog counter (Clodfelter, R., & Overstreet, J. 2010)

Impact of celebrity endorsements

JCPenny has roped in many celebrities from time to time to ensure the top of the mind recall among all the competitors and thus this strategy had paid off well in the past but now the company has severed its ties with the celebrity. Because of the changed brand association with the celebrity, from the consumer’s perspective, there’s bound to be confusion. Also, the consumers have connected with the celebrities over the years when they consider the brand of JCPenny and thus this gives the kind of brand association to the company.

However, this has changed over the past years with JCpenny withdrawing endorsement deals with Martha Stewart. This has resulted in the change of brand names from the name of Martha Stewart to JCP Everyday. This has caused in the alteration in the customers bond with brand names and when the facility to recognize and locate product is altered, customers go to who they know reliably provides them what they want. For household merchandises, in this case, that’s Macy’s. Additionally, customers like going to stores that are reliable with their creation, rates and brand prospects.

Creative idea for management

Product expansion should be made in the areas of electronics, home/outdoor furnishings (soft and hard), and cosmetics. Offering electronics that are superior grade throughout significant gifting periods like Father’s Day, Christmas/Holiday, and Back-to-School will generate a one stop shop for consumers. Trendy merchandises like e-Readers have been included at JCP through Holiday period in the earlier times; though the reply has been lack-luster due to the secrecy of the product (JCPenney, 2011).

Increasing collaborations with Barnes and Nobel’s Nook e-Readers or Amazon’s Kindle could be included in the store throughout the gifting period or year-round with exclusive standards or proposals throughout peak gifting periods. Alongside with fashionable merchandises like tablets or e-readers, the normal electronics like televisions and digital cameras would also contribute in making a strong declaration inside the store. Additional area of development would be the home fittings. These merchandises are typically offered online, if at all. In-store demonstrations of out-of-doors activities and sporting paraphernalia could mix with clothing that backs the theme. Merchandise that goes along with the continuing subject is vital to the achievement of extended goods, particularly out-of-doors fittings or undertakings. It is also imperative to yet again depend on profoundly on fashion products or well reliable brands of paraphernalia.

A very efficacious partnership amid JCP and Sephora to generate Sephora in the JCPenney store is a flawless area to increase. The growth of SiJCP’s inside JCP stores are unbelievable with over 100 new stores opened in 2012. Offering a better assortment of merchandises inside chief capacity settings would grow awareness and consciousness of both JCP and Sephora. Likewise, this would empower them to contest with Macy’s increasing “Impulse Beauty,” which has varieties of status magnificence merchandises comparable to a free standing Sephora (JCPenney, 2011). Providing more status and specialty brands that are tougher to find like Dior or Laura Mercier will have a robust chief imprint on clienteles eyeing for superiority merchandises. Raising the excellence of merchandise obtainable in the stock with home-based, electronics, and makeups also unlocks the access to more prestigious provisional partnerships.

Prediction of ability to adapt

Since its inception, the management of JCPenny has embraced change and tried to keep up with the dynamic market environment of the American consumerism. The most glaring changes were in terms of the brand symbol and the business model. The brand symbol got transformed from the initial form to the present short form of the logo. Another was a change in the business model that transformed from the catalogue based to the internet based interface. These changes made sure that the management was receptive to change and successfully incorporated the alteration which happened with respect to the changes in the macro-environment and the elements of the environment.

Thus it can be predicted that management of JCPenny will be able to adapt to the change in the environment pertaining to the changes which are proposed in the creative ideas mentioned above. Further JCPenny management has changed many times and the past experience of the company will enable it to manage the transformation in the policies, marketing and human resource management.

References

Canter, L. (2010). JCPenney restructures leadership. Retail Digital. Retrieved from: http://www.retail-digital.com/news/jcpenney/jcpenney-restructures-leadership

Clodfelter, R., & Overstreet, J. (2010), Technological profile of shopping centers: present and future use. J. Shopping Center Research. Retrieved through http://jrdelisle.com/JSCR/index.php

JCPenney (2012), JCPenney Store Business Improvement Plan 2012

JCPenney Store Business Improvement Plan 2011

Reda, S. (2012), New strategy is a breath of fresh air for JCPenney. Retail’s BIG Blog, National

Retail Foundation

Sloan, C. (2010). JCP plans aggressive growth. Home Textiles Today, 31(11), 1-23. Retrieved

From: Business Source Premier Database

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