J.C. Penney’sKaitlin Rutledge, Deandra Sanyoto,

Ariella Gomez

Agenda❏ History

❏ Primary Issues

❏ Secondary Issues

❏ SWOT Analysis

❏ Recommendation

❏ Alternatives

❏ Process

❏ Implementation

History Milestones1907 1913 1915 1952 1961

James Cash

Penney bought out

two partners

formally established

J. C. Penney

Moved the

corporate

operations to New

York

83 stores in

operation

Survived the Great

Depression, sales

reached $1 billion

Started

establishing

locations in

shopping centers

1960s 1999 2007 2011

Expanded their

focus of sales to

sports, garden, auto

parts, salons, etc.

Restructured their

interior design from

brick-and-mortar to

stores within stores

Recessions hit,

cutting customers

spending

significantly

New CEO, Ron Johnson, began to make

changes

Primary Issue

❏ The Financial Recession - 2007

❏ Levels of income decrease, workers laid off

❏ Growing gap money, shrinking middle class

(shrinking market)

❏ Willingness to pay (price) decreases

❏ Expenditures (quantity) decrease

Secondary Issues❏Highly Competitive Market

❏ Low price, discounters

❏ Walmart - low prices, low quality

❏ Target - low prices, “chic”

❏ Mid-tier retailers

❏ Sears - higher prices, upgraded selection

❏

SWOT Analysis

❏ Brand recognition

❏ Established locations nationwide

❏ Popular private brands

❏ Decline in sales

❏ Decrease in popularity

❏ Constant changes in strategies

❏ Lack of advertisement and coupons

❏ Weak economy

❏ Increasing competition

❏ Weak consumer spending

Strengths Weakness

Opportunity Threats

❏ Internet sales

❏ Exploration of niche market

❏ Further expansion abroad

Recommendation❏ Reach out to the millennials

❏ Creating a greater online presence

❏ Develop and expand online store

❏ Internet advertisement

❏ Fashion blogger endorsement

❏ Coupons, or online discounts

❏ Audible - sponsor through podcasts

❏ Sephora success through “beauty guru” videos on “Creating A Voice That We Can Trust”

Alternatives❏ Changing marketing strategy back from everyday low

price to sales and markdowns

❏ Store wide sale, coupons

❏ Focus on demographics and modifying store locations

to accommodate needs of consumers

❏ Body positive

Process

JC Penney’s

Highlighting the product

Descriptions Shopping Hauls

Implementation❏ Cost

❏ Pay per view (PPV): $0.03 to $0.12

❏ Average views: 350,000

❏ Estimated cost: $2,450,000

❏ Increase in sales ❏ Views to actions conversion rate anywhere from 0.5% to 5%

❏ Average conversion rate: 3%

❏ Estimated sales: 1,050,000 sales

❏ Survived Great Depression with low priced, quality goods

❏ 2007 recession caused a shrinking middle class market

and consumer willingness to pay

❏ Highly competitive market

❏ Reach out to younger generations through internet

exposure

❏ Return to sale and markdown pricing

Summary

Questions?

https://www.quora.com/How-do-companies-calculate-how-much-to-pay-Youtube-influencers-to-sponsor-their-products-Lets-make-up-numbers-and-say-they-have-1-000-subscribers-an-average-of-500-views-per-video-50-engagement-it-is-a-sales-play-and-the-content-is-beauty-cosmetics-how-would-you-quantify-their-fee