Case Analysis: J. C. Penney Company, Inc. Founded by James Cash Penney in 1902, J. C. Penney Company, Inc. has grown into a major mid-tier retailer. Focusing on providing goods and services for middle-income families, Penney’s competes in several segments. Although men’s and women’s apparel accounts for nearly half of all sales, Penney’s has a diverse portfolio including cosmetics, hair salons, home furnishings and appliances (J. C. Penney Company, Inc., 2015). As one of the oldest retailers in America, Penney’s has recently struggled to maintain the loyalty of existing customers while attempting to attract new ones. Historical Background Penney’s faced a hyper-competitive environment following the recession of 2008. As the economy began …show more content…
Struggling to stave off collapse after years of steep losses, while competitors were expanding into emerging markets, they were desperately trying to stabilize and hold ground. Currently, the global marketplace is beyond their reach. Penney’s is also hampered by a lack of differentiation from competitors. Kohl’s, Macy’s, and even Wal-Mart target similar market segments with similar products. Finally, and most importantly, Penney’s has lost their customers’ loyalty. Women had shopped at Penney’s for generations, drawn to their reputation for combining quality products with great discounts through clearance, coupons, and sales. Although Penney’s has tried to forget the drastic policies of Johnson, customers that fled due to his changes have been slow to …show more content…
One tactic is decreasing overall marketing cost by utilizing social media and online marketing avenues to advertise promotions and sales to consumers (La Monica, 2016). Another tactic is implementing more efficient inventory control with better communications between upper management and employees (Wahba, 2016). Utilizing a “demand-based logic” technology system, Penney’s tracks real-time sales data for improved inventory management, ensuring stores are adequately stocked to meet demand. The information is integrated within a new database that will analyze consumer demand and help synchronize pricing decisions with sales and