JCP: America’s Favorite Store? October 15, 2012 Boston...

Running head: JCP: AMERICA’S FAVORITE STORE?

JCP: America’s Favorite Store?

October 15, 2012

Boston University College of Communication, CM 726

JCP: AMERICA’S FAVORITE STORE? 1

Overview

Over the course of 2012, economic conditions have suggested a cautious, yet growing,

optimism among consumers and retailers, despite news of growing unemployment, sinking

consumer confidence, and a recession in 2009 (Demeter Group, 2012). E-commerce purchasing is

expected to grow exponentially, both on the side of the retailer and the customer (Schultz, 2012).

The number of products that are offered and purchased will continue to increase, with the latter

seeing an influx in transactions via mobile devices and tablets (Ifeanyi, 2012). In 2012, mobile

sales were projected to climb 49 percent, or to $10 billion, as retailers continue to look for ways to

bridge their online and offline operations. The challenge for retailers is to figure out not only how

to capture customers’ attention, but also how to maintain it, or acquire brand loyalty.

In-store, retailers also need to recognize and remove “every potential barrier that stands

between converting a customer’s interest to purchase into the intent to purchase” (Schultz, 2012).

Retailers will need to optimize and compete on customers’ in-store experience from what they

purchase to how they purchase.

History of JCP

In 1902, James Cash Penney created J.C. Penney’s according to what became known as the

“Golden Rule” (JCP, 2012). This rule stipulated that he would treat customers the way he himself

wanted to be treated (JCP, 2012). The Golden Rule philosophy worked for many years, and as of

October 2012, JCP spans 1,100 department stores across America (JCP, 2012).

As with many brands with a long legacy, reevaluations are needed at certain milestones.

JCP is no different. When Ron Johnson took over as CEO in November 2011, his goal was to

revitalize the JCP brand and project a new personality that updated, yet honored, its century-old

legacy. With this in mind, a new tagline was developed: “Fair and Square” (JCP, 2012). Johnson

was determined to transform the company and in January 2012, he kicked off an unprecedented


three-tiered pricing strategy, updated store design, logo, and spokesperson. At his first JCP

conference in the same month, Johnson made his vision for the company clear (Minato, 2012):

• Market share is top priority.

• Retail prices have risen, even though retail value remains the same, leading to

discounting, which hurts brands like JCP.

• Reduce the number of promotions to only 12 per year.

• Remove sales in favor of consistent, everyday pricing.

• Introduce concept stores with specific brands, akin to Apple’s Genius Bars.

As of October 2012, these strategies have not worked as well as Johnson had hoped in

increasing market share and improving the company’s sales. By March 2012, the company’s credit

rating dropped from BB+ to BB, which triggered the first round of cuts to the department store’s

staff. The cuts totaled more than 600 people laid off at the JCP headquarters in Plano, Texas, by

April 2012 (Thompson, 2012). In May 2012, JCP reported a first-quarter net loss of $163 million,

a stark contrast to the profit of $64 million in the same quarter of the previous year (Thompson,

2012). Then in June 2012, JCP produced an advertisement featuring real-life same-sex parents as

models, which was met with criticism from conservative customer groups. JCP’s president of

marketing Michael Francis was fired, and Johnson assumed his responsibilities. By August 2012,

JCP reported a $147 million loss (Thompson, 2012).

At the end of 2011, JCP ended its five-year relationship with its advertising agency,

Saatchi & Saatchi (Minato, 2012). With Fair and Square, JCP implemented a new logo, new

spokesperson, new pricing strategy, and an investment in Martha Stewart Omnimedia, who once

partnered with Macy’s (Brossart & Winter, 2011), as well as with other designer partnerships.

Where discount pricing and promotions are the norm among department stores, this move by JCP

is a stark contrast and is considered shocking to many analysts and customers alike. Changes


began in February 2012, and in August 2012, JCP began updating all its stores with new

merchandise and pricing strategies in what JCP management is calling “a complete

transformation” (Seeking Alpha, 2012).

The Marketplace

The retail industry landscape has historically been fiercely competitive (see Appendix B).

JCP’s direct competition on the basis of diversity of product offerings, prices, and ultimately,

share price, consists of Kohl’s and Macy’s (Clifford, 2012a).

In a recent study of consumers’ favorite shopping destinations for apparel, Walmart and

Kohl’s ranked first and second, respectively, followed by JCP and Macy’s, who grapple for third

place (Heller, 2012). However, interestingly, once JCP’s new Fair and Square pricing strategy

campaign launched, shoppers fled from JCP to Macy’s (Heller, 2012).

Kohl’s. Kohl’s operates primarily as a destination for mid-priced fashion merchandise. It

tries to offer products that have a good mix of reasonable pricing, and irresistible sales.

Merchandise includes affordable versions of upscale designer brands, such as Derek Lam and

Vera Wang. In an attempt to increase and diversify product range, Kohl’s began to sell tablets in

2012 (Crocker, 2012).

Macy’s. Macy’s, on the other hand, tends to offer a wide selection of higher quality items,

catered toward customers who are willing to spend extra money for better products. Macy’s is

stocked with products by exclusive celebrity brands, such as Madonna and Nicole Richie (Daily

Herald, 2011). The company is known to have a well-trained sales force and intense coaching for

its employees (Gunderson, 2012).

Online retailers. In 2012, competition is fiercer than ever. Online retailing giants like

Amazon and the online retailing arm of in-store retailers are fighting for a bigger share of the pie.

Some larger retailers are taking a new approach to the dreaded showrooming by transforming their


stores into extensions of their own online operations. Showrooming has become a popular tactic

among consumers, who peruse merchandise in person, then purchase it cheaper online

(Zimmerman, 2012). Retailers like Walmart, Macy’s, Best Buy, and Sears are adding Web return

centers, pickup locations, free shipping outlets, payment booths, and even drive-through customer

service centers for online sales to their brick-and-mortar stores (Clifford, 2012b).

JCP’s Recent and Current Campaigns

As J.C. Penney’s began rebranding itself as JCP, it was faced with two problems: 1.) The

company needed to educate its current and new customers on its new, younger image; and 2.) it

needed to begin attracting the new, younger customers Johnson desired (Cho, 2012). JCP decided

to target two diverse audiences: customers of old who have shopped at JCP their whole lives, and

a new, younger, untapped customer base. JCP’s original customers are families in the 18 to 34 and

56 to 74 age brackets. However, JCP wanted to expand to include urban families and a younger,

hipper audience with spending power.

At the beginning of 2012, JCP launched the “Fair and Square” campaign to inform the

public, old and new, that the company was no longer going to use pricing “gimmicks,” like

coupons and sales (Sullivan, 2012). Instead, JCP adopted a policy of “what you see is what you

get.” JCP was formerly one of the largest distributors of coupons in the retail world and known for

its yearly clearance sales. JCP’s new pricing strategy eliminates couponing and renames its

clearance sales to “everyday low price.” JCP also shifted all prices to round numbers, so no price

ends in $.99 (JCP, 2012), making it easier for customers to calculate how much they are about to

spend. JCP hired comedian and talk show host Ellen DeGeneres as its spokesperson for this new

direction, and she starred in several commercial spots aired during the 2012 Academy Awards.

These ads had an old-timey feel and featured DeGeneres in different situations involving paying

for something that cost $10.99 or sorting through a mountain of coupons in order to find the right


one (“Ellen – Elizabethan Era,” 2012). The ads attempted to show value in JCP’s new pricing

model by taking a jab at traditional couponing and pricing methods. However, instead of

connecting with its target audience, JCP outraged its conservative customers, who were offended

by JCP’s negative portrayal of couponing, as well as customers who were angered that JCP chose

a lesbian as its spokesperson. The ads offended those customers’ moral codes, which turned them

off to the company quite publicly. JCP issued a statement supporting DeGeneres and the gay

community; however, the company pulled the ads shortly thereafter (Finlayson, 2012).

Up until the beginning of fall 2012, JCP launched a series of commercials aimed at

illustrating its new emphasis on brands in order to gain new customers, after the backlash by so

many older customers. After the opening of its newly designed stores, JCP issued its “Bold New

Look” campaign (Cheng, 2012). Having left Apple to join JCP, Johnson deemed JCP’s new image

as akin to that of an iPhone, in that the store itself is the phone and individual, branded sections

within the store are the apps (Cheng, 2012). This new layout emphasizes some of JCP’s biggest

brands and gives the consumer the “ultimate branded experience” (Cheng, 2012), while also

reducing the overall clutter of the store. JCP has since launched several commercials spotlighting

particularly noteworthy brands and those brands’ newly renovated positions in the store. The ads

also emphasize JCP’s overall goal, to be “America’s favorite store.” This slogan reveals JCP’s

new targeted audience: everyone.

The Bold New Look commercials featured vibrant colors, happy people, and a variety of

characters ranging in age and lifestyle. The characters were placed in typical “slice of life”

settings, like going to school, brushing one’s teeth, and moving the lawn (“Back to School,”

2012). These monotonous, everyday activities are portrayed in an idealistic, retro, and upbeat tone.

JCP utilized music to accompany this feeling, notably the song “Rockin’ Robin” by Bobby Day

(“A Bold New Look,” 2012). While these advertisements were pleasing to the eye, reminiscent of


peppy Target commercials, they did little to improve JCP’s sales. The ads missed the mark on

effectively communicating a message to the public. The Bold New Look campaign failed to

correct the public’s negative perception of JCP caused by the Fair and Square campaign.

Additionally, the campaign further angered core customers because it did not prove that JCP

understood its current customer base. Instead of issuing a new campaign that did not speak to its

original customers, JCP may have been better off addressing the public’s concerns directly.

Current Demographic and Brand Essence

Based on market research (see Appendix C) and an analysis of JCP’s history, JCP’s core

customer demographic is suburban and rural, middle- to lower-income families. The core age

groups that shop at JCP are 18 to 34 and 56 to 74 (PwC/Kantar, 2012). Most of JCP’s customers

reside in the Middle America. Recently, JCP has been trying to attract more urban, young, coastal

customers while also maintaining its original base.

According to market research, when people, customer or non-customer, think of JCP they

think “value,” “clothing,” and “affordability.” They go to JCP for the variety of brands and lower

costs. Previously, “service” was also associated with the brand, but the new pricing and store

changes have currently inhibited this quality. JCP’s current customers also associate “family” with

the store. They go there not only for good bargains, but for the familial atmosphere. Everything

they need for anyone in the family can be found at JCP, and at an affordable price. The employees

are knowledgeable and warm. Overall the store is a trusted and familiar place where customers

know they can always find what they need for less. It reflects what JCP values most: price,

selection, and family. Nevertheless, non-customers and even some current customers also

associate “old” and “cheap” with the brand. They see JCP as a product of the last era, something

that just does not fit in with today’s world. These people see the store as crowded, confusing,

some even going so far as to say “dirty.” This negative brand association is what is driving JCP’s


current move to redefine itself as new and modern, while also retaining the core values that once

made it one of the most popular department stores in the United States.

Based on these findings, JCP’s brand essence is that JCP is a friendly department store

where everyone from Grandma to Junior can find something they love at an everyday affordable

price. JCP is a one-stop-shop for families, as well as a place where individuals can find clothing,

accessories, housewares, furniture, and more that fits their lifestyle and their budget.

Opportunities and Challenges: SWOT Analysis

JCP has undergone several challenges in its rebranding strategy. Conducting an analysis of

JCP’s strengths, weaknesses, opportunities, and threats (SWOT) provides a comprehensive picture

of the company’s overall state, as well as insight into the tools JCP has within the company and

the marketplace that the it can use to re-build its image and regain market share.

Strengths

One of JCP’s greatest strengths is that it has already built strategic partnerships with high

profile brands, such as Martha Stewart, Disney, and Sephora. By featuring these well-known

brands, JCP can appeal to the needs of current customers that it was unable to satisfy in the past,

as well as potentially draw new, younger, and more affluent customers who are familiar with these

brands. JCP is showing a new demographic of customers that it is tapped into their needs and

desires. These partnerships also go into another strength of JCP, which is a diversified and wide-

range of product offerings. JCP sells both private and national brands, and its product offerings

include clothing, shoes, handbags and accessories, cosmetics, furniture, housewares, as well as

optical centers, portrait studios, and jewelry repair (JCP, 2012). Providing products for many

needs attracts a variety of customers and makes JCP a one-stop shop for individuals and families.

Featuring identifiable brands within the store makes JCP a reliable brand.


Another strength of JCP is its commitment to low prices, which is a major reason many

customers shop there, even though its latest business plan of removing coupons and reverting to

everyday low prices was ill communicated to the public. Low prices are part of the core of JCP’s

identity, and its “fair and square” slogan shows that JCP cares about each and every customer and

is committing to its founder’s vision. Going further, JCP is an iconic store and viewed as an

American original. JCP’s 110-year history (JCP, 2012) is an inherent strength in that many people

do not want to see such an iconic American original brand go out of business. JCP can use this

image to its advantage by playing into customers’ nostalgia and patriotism. In fact, JCP has

already done so by changing its logo to a patriotic red, white, and blue.

Weaknesses

Some of JCP’s major weaknesses only came about during the last decade, when it began

rebranding itself. JCP has changed its logo and name (from J.C. Penney’s to JCPenney to JCP)

three times in three years (Olenski, 2012). This constant wavering on its image and branding can

be confusing to customers in that customers do not know why they should shop at JCP, and JCP’s

identity crisis shows its own self-doubt. JCP cannot properly communicate its message to the

customer if it too does not know what that message is. Furthermore, JCP implemented its no-

coupon, no-sales business model, but months later, its CEO emailed customers a 10-dollar coupon,

which he called a “gift” (Brown, 2012). Customers do not know what to believe.

Miscommunicating its vision represents another weakness in that JCP does not understand

what its customers need to hear to get them into the stores and buy. It has not successfully

communicated value to customers who are accustomed to coupons and sales. JCP has encountered

a 33% share drop since its latest rebranding strategy six months ago (Olenski, 2012), while its

direct competitors Macy’s and Kohl’s both exceeded expectations, which some analysts speculate

is due to customers moving from JCP to those retailers (Loeb, 2012). Customers do not know why


they should shop at JCP when they could simply shop at Macy’s or Kohl’s because JCP has been

lacking in communicating its value and differentiators.

Going further on communication, JCP has turned on its core value of treating its

employees with respect. JCP has not properly educated and excited employees about the

rebranding strategy, and the company has laid off hundreds of workers (HTT Staff, 2012).

Employees say JCP “has become an awful place to work,” and the customers can tell (Bhasin,

2012). JCP has eliminated commission incentives, instead offering extra work hours for

employees who perform well (Bhasin, 2012). Furthermore, with the layoffs, JCP stores appear to

be under-staffed and consumers have complained of long lines and not being able to find a sales

associate to help them (Bhasin, 2012). Catchy advertising may get customers into the store, but

when customers are confronted with unenthusiastic and scant personnel, they may not buy and

may not return. JCP must not only treat its customers fair and square, but its employees as well.

The salespeople are the face of JCP who sell not only merchandise, but also the brand.

Opportunities

JCP has some untapped competitive advantages that it should capitalize on to entice

customers and rebuild its customer base. JCP is one of the few retailers with a tablet-specific app;

neither Macy’s nor Kohl’s has one (Hayes, 2012). With nearly one in five American adults

owning a tablet, and that number is expected to grow (Ionescu, 2012), JCP should capitalize on its

technological advantage before competitors catch up. JCP could promote app-only exclusives on

merchandise. Furthermore, JCP could bring its online business closer to the level of Amazon, like

many of its competitors are already doing, by offering faster and cheaper shipping, as well as

implementing wish lists, recommendations, and the ability to send recommendations to a friend.

Then, JCP could implement these features in its tablet app. Upgrading its online shopping

experience would push JCP into the 21st century by connecting with new customers in a different


way. JCP’s online and mobile identities are just as important as its in-store identity, and it should

provide the same customer service, ease of navigation, and shopping options online and on its app

as it does in-store.

Another opportunity lies in properly advertising its strategic partnerships. Macy’s has been

producing fun, star-studded ads for years to communicate its strategic partnerships with celebrities

and iconic brands. JCP could follow suit and show customers that if they go to Macy’s to find

particular well-known brands, JCP offers those products in a branded environment that the

customer will enjoy. Going further, Macy’s is also ahead of JCP in employee training and

customer service education. In the face of the current economy, Macy’s has implemented a cost-

effective way of getting customers to shop at its stores: improved customer service and employee

knowledge with increased and specific employee training (Gunderson, 2012). JCP needs its

employees to be on its side before the customers choose to be. Therefore, if JCP better educated its

staff and implemented an incentive program, employees would be happier and more willing to sell

products, and the brand, to customers.

Threats

Many threats that face JCP exist in the marketplace. A growing number of online retailers

offer similar or the same products as JCP does. Furthermore, Amazon is known as the “Web’s

most popular mall,” and it boasts millions of products at very low prices – along with free

shipping for many of those items (Miller, 2012). Showrooming is a growing threat to all brick-

and-mortar retailers. If JCP does not enhance its online shopping experience and make its in-store

experience something worth having, it will have a difficult time maintaining or increasing market

share. Many consumers have turned to showrooming because of the economy itself, which is also

a threat. The economy is slowly making a comeback since the biggest recession since the Great


Depression; however, consumers are still not spending as much as they once did, and retailers are

scrambling to attract customers.

In order to combat consumers’ economic woes, as well as stay afloat in the marketplace,

many retailers are breaking out of their market categories to provide consumers with the best value

for the lowest cost, increasing competition among retailers that at one time would never have been

competitors. For instance, discount retailers like Walmart and Target are aligning with bigger

brands and celebrity designers, while still keeping prices at their everyday low value. This tactic

entices customers who want a brand label, but either do not or cannot afford it. At discount

retailers, now they can. Department stores like Kohl’s are also implementing this tactic, aligning

with designers like Vera Wang, but at an affordable, more approachable price. JCP still must also

face its longtime competitor Macy’s, who continues to offer coupons, rewards programs, and

frequent sales that are known to attract customers looking for a bargain. Department stores that use

these tactics are a threat to JCP, who is attempting to reshape the category.

Marketing Objectives

Ron Johnson’s new marketing strategy focuses on two factors: distribution and pricing. In

terms of distribution, JCP is looking to gain an advantage over its competitors by overhauling its

in-store environment, differentiating it from the traditional distribution methods of its competitors.

With distribution, JCP hopes to increase its market shares by attracting new customers and brands.

The price change is directed at maintaining its current customers and to increase revenue. JCP

hopes that the simplification of its pricing will encourage old and new customers to come to the

store for the hassle-free environment. Both tactics work off of, and support, the successes of one

another.

Advertising Objectives


JCP’s current advertising objectives focus on educating and exciting both old and new

customers about the brand’s changes. JCP wants to emphasize its new, simple, and honest pricing

strategy, as well as show off its younger image. The company faces the difficult task of trying to

balance attracting new customers while still appealing to its long-standing ones.

JCP’s Problems

JCP's current marketing strategy and campaign has caused the company several problems.

First, JCP has attempted to increase the brand’s perceived value by drastically adjusting its pricing

strategy to something its main customer base was not accustomed. This strategy is a major

problem because the decision process of JCP’s core consumers involved the distinctive discount

system for which the brand was once famous. Current ads also leave consumers feeling confused

and unable to comprehend that JCP’s prices are truly low everyday (Olenski, 2012). In addition,

JCP has not properly educated its staff, nor excited them, about these dramatic changes. JCP

employees are increasingly noted for poor customer service, which is a consequence of inadequate

training and the elimination of commission incentives (CMO Network, 2012). Another problem is

that JCP is vying for a new customer base to increase market share, and but this tactic is not

producing results. JCP is casting too wide a net in its efforts to target as many consumers as

possible. In 2011, Johnson announced that JCP’s rebranding efforts would include a revised store

concept that would maintain the interests of its core consumers and increase market share at the

same time (Cherney, 2012). However, the advertising campaign fails to communicate the store’s

concept in a format that appeals to old consumers as well as the spectrum of potential

consumers (Chernev, 2012). As result, core shoppers feel alienated by brand’s new vision, and

segments of potential new consumers do not feel engaged and are disinterested. Lastly, JCP has

encountered an identity crisis over the past few years, in that both consumers and JCP do not


understand the essence of the brand, nor does JCP know how to communicate it. JCP’s rebranding

effort needs to incorporate a consistent message that transcends all previous brand changes.

Strategies and Recommendations

Strategy 1

JCP’s current core customers consist of people who have been shopping at what they know

to be “Penney’s” since the 1970s. However, with the new advertising campaign, JCP is trying to

gain new customers who are younger. JCP must segment its market. This will affect its campaigns

in a creative way, and also will affect which media platforms are used.

Recommendation. JCP stores will seem more relevant to consumer shopping needs of

more narrowly defined market segments. JCP needs to build a more segmented market strategy

and implement a campaign that includes advertisements targeted to specific demographics, instead

of blanket advertising. Targeted television commercials airing during popular programming for

each of the target groups would facilitate meeting this goal.

Johnson should not neglect JCP’s core customer base – shoppers who have been visiting

JCP since the 1970s. The concept of this version of the ad should revolve around a more mature

shopper recollecting that the new JCP is “better than the Penney’s I remember.”

On the other hand, Johnson is interested in growing its younger consumer base. Therefore,

one target audience should include young professionals, mothers of young children, and children.

Children should be included in the marketing strategy because children influence parents’

shopping habits and most children who watch television are a part of a family unit who makes the

purchases. Market research (see Appendix C) revealed that non-JCP customers are apprehensive

about shopping there because of concerns for the quality and style of the merchandise.

Commercials that educate this audience about the popularity and reputation of JCP’s new featured


brands like Sephora will communicate quality and value, drawing this untapped market into the

stores.

Strategy 2

In order to maintain JCP’s core customers, Johnson must determine what attributes of JCP

the core customers loved.

Recommendation. Johnson should determine which brands the core customers love.

Johnson should then strive to develop strategic relationships with these brands. In addition,

Johnson should emphasize the benefits of the reward program and JCP’s credit card in-store.

Lastly, catalogs are a very important way to reach core customers who do not regularly use the

Internet to shop. Instead of doing away with the catalog, Johnson should mail all customers in the

56 to 74 demographic a postcard requesting they mail back the postcard to JCP should they

continue to want a printed catalog. This communicates emphasizes an opt-in strategy, making the

customer in control and communicating that while JCP is changing, customers can opt not to be a

part of this change – because JCP cares about its customers.

Strategy 3

JCP’s online and mobile shopping experience must reflect the goals of the in-store

experience.

Recommendation. With the latest “Fair and Square” campaign, Johnson must ensure that

the slogan, values, and style of the offline campaign are also on the websites and apps. At the

moment, the only element on the website that shows any hint of the latest campaign is the new

JCP logo. Furthermore, JCP is the only one of its competitors who has a made-for-tablet app. JCP

should invest in technological innovation by improving the online and tablet shopping experience,

adding targeted recommendations and the option to make wish lists.

Strategy 4


Consistent communication to all key stakeholders is critical to the success of any

campaign. The key stakeholders include customers, frontline staff, all brands within the stores, and

JCP management.

Recommendation. JCP needs to identify one slogan that embodies JCP’s vision and is not

too broad to fulfill. This slogan needs to be a staple on every communication touch piece. JCP

would also benefit hiring one spokesperson to be the face of the company and sticking with that

spokesperson. This person should embody JCP’s values and become a signifier for the brand. In

addition, JCP should implement an employee incentive program, or re-instate commission

incentives, to improve employee morale. Furthermore, JCP should hold frequent staff trainings

that are both fun and educational so that there is staff buy-in and staff can adequately

communicate to the customer.

Conclusion

JCP is an iconic American brand that once won the hearts of many customers, young and

old. Changes in the retail industry and the economy have adversely affected JCP, forcing it to

scramble to keep up with its competition. If JCP can reconnect with its original core values of

price, selection, and family, creative communication strategies should be able to speak to original

customers and untapped markets so that within a few years, JCP can truly become America’s

favorite store.


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Appendix A: Who Did What

Ashley:

• Competitor analysis in the paper

• Opportunities and Challenges section, including SWOT analysis, in the paper and

PowerPoint presentation

• Conducted three customer interviews

• Compiled the references section and appendices

• Took in everyone’s written portions and edited, proofread, and compiled them into one

final document

Diana:

• Competitor analysis in the PowerPoint presentation

• Overview of JCP section in paper and PowerPoint presentation

• Conducted 11 customer interviews

• Took in everyone’s slides and compiled and redesigned them into one final presentation

Gabby:

• Marketing and Advertising Objectives sections of paper and PowerPoint presentation

• JCP’s Problems and Recommendations section of the paper and PowerPoint presentation

• Conducted three customer interviews

Kendal:

• JCP’s Previous and Current Campaigns and Brand Essence sections of the paper and

PowerPoint presentation

• Took in everyone’s customer interviews and compiled them into the brand essence and

target demographic


• Conducted five customer interviews


Appendix B: Competitive Landscape Matrix


Appendix C: Interviews with JCP Customers and Non-Customers

Name: Betty Tronstad

Age: 77

Gender: Female

Occupation: Home-maker

What do you think of when I say JC Penney?

Nice clothes, friendly atmosphere, just remodeled our Penney’s and it’s really clean and

neat.

How do you refer to JCP? (JC Penneys, Penney’s, or JCP?

Penney’s, they do have a new thing called JCP.

Have you seen their new campaign (Fair and Square)?

They’re catchy – doesn’t draw me, I go because I know Penney’s and have gone for years

and years, but I’m all for progress.

If yes, what do you remember about it?

Nothing

If yes, what did you think about it?

The ads aren’t drawing new customers, but I think older customers probably like it – I like

anything that’s redone, shiny, clean, moved around because it gives you a feeling that

they’re trying hard to please the customers. They have to keep up with the other stores, and

I think they do a good job.

Are you a JCP shopper?

Yes.

If yes, how long have you been shopping there for?


For decades, since I was young.

Why do you shop at JCP?

Good quality and lower prices than Macy’s or Nordstrom, clothes are just as good but

they’ve been around so long, that’s why they’ve updated it. Older people can find more there than

at other stores.

When was your last visit to JCP?

Last week.

If you went there recently, what was your first impression of the store (layout, customer

service, brands)?

I like that the prices are rounded numbers. I like Sephora, they’ve updated everything and

made it more convenient – put customer checkout in good spots (before you had to hunt

for them) and put them by the exits.


Name: KT Waxman

Age: 52

Gender: Female

Occupation: Professor

What do you think of when I say JC Penney? (3 adjectives)

Affordable, reliable store, good name, amazing catalog.

How do you refer to JCP?

Penney’s.


Yes.


Color, clean lines, no-nonsense approach.


I like it. When Penney’s launched their new campaign, I was really impressed with it. Now

I read their ads in the Sunday paper because they’re clean, colorful, and modern.


Not on a regular basis, but I have been known to go in there


Since I was a child.


The prices are good, good selection of clothes, housewares, lingerie, furniture. They have a

variety of things.



Two months ago.


service, brands)?

Very impressed at what they have done, they have changed everything. I felt that it was

very low in that you can stand in one spot and see the other side. I was impressed that there

was no $.99 after the price, so you don’t have to calculate anything. It shows they’re

honest and not lying, which I appreciated. The store was very colorful with good signage

of the department.


Name: Steve Waxman

Age: 59

Gender: Male

Occupation: Systems developer


Cheap junk, low price, a place to go when you’re not looking for anything too nice. It’s not

good quality, but then again, you don’t pay a lot, so you know what to expect


Penney’s.


No.


They should not try to be something they’re not, don’t market to someone who isn’t going

to shop there, don’t market to who they hope to get because they’re not going to get them.

I couldn’t care less if they round the prices or not. They’re trying to market to too broad of

a scope, and they should just market to people who go to JCP.


Yes, I browse through the big and tall section only.


Five years.


Only to check out the big and tall section.



Two months ago.


service, brands)?

Section was easy to find, labeled appropriately. I didn’t pay much attention to the layout or

have any interactions with any of the employees.


Name: Kathy Ives

Age: 56

Gender: Female

Occupation: VP at Sloan Consortium, company helps universities translate programs to online.


affordable, big, old

How do you refer to JCP? (JC Penneys, Penney’s, or JCP?)

JC Penney’s


Yes


New prices, hipper


I think it’s interesting. I hope it works out for them.


Not often, none are close


I’m not sure


If I pass it, for cheap clothes.


A year ago



service, brands)?

It was laid out like any old department store – lots of clothing racks, a lot of choices. Not a lot of

employees.

If no, which department store(s) do you visit?

T.J. Maxx and Marshalls

Why do you visit that store?

Closer

Why don’t you go to JCP?

None near me.


Name: Jared Hannon

Age: 26

Gender: Male

Occupation: Junior analyst at Morgan’s


Clothing, department, families


JC Penney’s


No


No


I guess I would go there for cheap clothing.


I am not sure


Marshalls, Walmart


Closer to me


I have never seen one around here


Name: Cooper Mumford

Age: 19

Gender: Male

Occupation: Student


Clothes, kids, old


JC Penney’s


I think so, commercial with Ellen right?


Something about sales


I didn’t really pay attention except to laugh at Ellen.


No


I wouldn’t, not my style. I’m too cool J!


Never


I live in NYC so more brand stores – American Apparel, Aeropostal


My styles and closer



Not my style and none near me.


Name: Ned Peirce

Age: 57

Gender: Male

Occupation: Web designer at Fidelity Investments


Cheap, big, clothing


JC Penney’s


No


I do know they are changing their pricing scheme – all one price or something.


It was confusing I believe, I think they had to change it again. But I think it’s good that they are

trying to make the store more modern.


Not really, there are none close to me


Maybe 10 years.


Large selection and low prices.


Two years ago?



service, brands)?

I don’t remember… similar to Macy’s?


Walmart, Marshalls


They are very close to me and Walmart has everything.


There are none near me.


Name: Esther Peirce

Age: 82

Gender: Female

Occupation: Retired


Clothing, affordability, selection


Penney’s


Yes, in store


They changed their pricing, no coupons, all one price. And they are trying to look younger.


It was confusing at first and then they changed it again which made it worse. I think they have

finally decided on just one price. I think it’s good they are trying to be younger but I am not sure if

they will appeal to me anymore.


Yes, when I can.


Since I was a child, off and on.


Their large selection, customer service, and low prices (with coupons)



Last month


service, brands)?

Same as it’s always been, clothing racks separated by gender and age. The one near me is a bit

messy since it changed management.


I also go to Marshalls


Sometimes Penny’s doesn’t have everything I need


Name: Zheng Yan Tay

Age: 26

Gender: M

Occupation: Engineer


pennies, cheap


J.C. Penney


Yes


The Roman times ad featuring Ellen


Not very effective, didn’t make me go there.


No


Macy’s and Walmart


More convenient. Visit Walmart for daily supplies. Macy’s on a random basis.


Not convenient.


Name: Amabel Ng

Age: 28

Gender: F

Occupation: Manager, Recruitment Services


Budget, family friendly, low-end


J.C.


Yes, ad featuring Ellen.


Interesting.


Still did not compel me to go.


Not now.


Only back in college.


Near my college (Minnesota)


In college.



service, brands)?

Not much impression.


Macy’s, Lord & Taylor, Saks, Nordstrom


Just more convenient.


Have other options.


Name: Seng Lee

Age: 28

Gender: M

Occupation: IT Engineer


On sale, affordable, cheap


J. C. Penney


No


No


If you went there recently, what was your first impression of the store (layout, customer service,

brands)?


TJ Maxx (stuff on sale), Walmart (cheap)


Name:

Age: 21

Gender: F

Occupation: Financial Account Manager


Departmental store, clothes, cheap


J.C. Penney


No


No


Macy’s, Marshalls, TJ Maxx


JC Penney is a little weird, not to my budget nor style.


Name: Wei Yiing Quek

Age: 22

Gender: F

Occupation: Student


Ellen Degeneres, Clothing, Store


JC Penney


No


No


TJ Maxx, Marshalls


Closer, geographical location


Name: Yin Yiing Yeoh

Age: 22

Gender: F

Occupation: Student


Clothes, accessories, cheap, branded


JC Penney


No


No


TJ Maxx, Marshalls


Conveniently located


Inconvenient


Name: Lu Quan Tan

Age: 20

Gender: M

Occupation: Student


Big, clothes, multiple floors


JC Penneys


No


No


Marshalls, TJ Maxx


Location


inconvenient


Name: Anne McNevin

Age: 63

Gender: Female

Occupation: Professional Photographer


not desirable, low quality, junky


JC Penney


Yes, Wait no. I haven’t. I saw a old navy commercial and confused the two.


No


5 years ago


Lord & Taylor, Whenthem Outlets


Good value. You get a high quality product for a more fair price


I don’t like the quality. I think it is junky. I just don’t like it. I feel like a snob by calling the store

junky…. But it’s dirty and not good…


Name: Meg Whelpley

Age: 24

Gender: Female

Occupation: Legal Secretary


Cheap, value, struggle (I know they have struggled a lot in the last 10 years)


JC Penny


Yes


It was trendier than I remember the store being. I also noticed that Liz Claiborne and MNG sells

their cloths at JCP now.


I was very interested to see new brands are sold there now. They used to have gross items. The ad

was more energetic and trendy- it reminded me of ads for other department stores like Macy’s or

Target


No


Don’t remember. It was years and years ago.


Nordstrom, Macy’s, Target



They have higher quality product. Also, I know that the stores carry. I will spend more money to

like what I am buying and to know that it is good quality.


It is kind of gross plus I wont find anything that I like.


Name: Jimmy McNevin

Age: 28

Gender: Male

Occupation: Procurement and Inventory management Fairbanks Morse, a Windmill company.


Cheap, department, red


JC Penney’s


No


I’ve been there


My whole life


Because it has a large range of things I need and is cheep


6-8 months ago.


Khol’s or T.J. Maxx


It is closer to me


Name: Nicole

Age: 24

Gender: F

Occupation: Student


Cheap, convenient, varied


JC Penneys, only old people still refer to it as “Penneys”


No


Yes


10+ years


It’s convenient to my home, and merchandise is usually decent quality for a good price.


A few months ago.


service, brands)?

It was a mess because they were remodeling and everything was everywhere. Otherwise the new

store looks okay, but I liked the old look better.


Name: Sudha Sivadas

Age: 36

Gender: F

Occupation: Student


variety, quality, affordable

How do you refer to JCP? (JC Penneys, Penney’s, or JCP)?

JCP


Yes, with Ellen.


Saw the Ellen ads.


Not aware though that JCP was getting rid of coupons.


Yes, but online.


One year.


Online: Can shop anytime.


Yesterday (online)



Target for physical store.


Convenience – near my home


Too far.


Name: Munting Ng

Age: 34

Gender: F

Occupation: Homemaker


Affordable, good deals, limited selections


JC Penney’s


Yes


Nothing in particular


Kinda same with Macy’s “everyday low price”


Yes


3 years


Affordable, convenient


3 days ago



service, brands)?

Layout: Overall good, easy to navigate around. Customer service: satisfactory. Brands: Limited,

but I don’t see any problems with that because if I’m looking for certain brands, I usually will visit

their respective outlets.

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