The competitive market position of JC Penney
The competitive market position helps the company to deliver more value and satisfaction to target customers. JC Penney has the competitive market position. First, JC Penney conducted an advertising campaign under the banner, Fair and Square, for their products. This is attributed to their boldness against the competition in the market. Secondly, the company had adopted the traditional sales tactics to win over the other competitors. Their advertising mode was associated to be creatively jarring especially the “No!” spots. Further, JC Penny carried a ridiculously promotion although was confusing on his Forbes, “Done in By, Reverse False Advertising”.
The market strategy
A company that operates on a clear strategy usually achieve high performance. At the same time, a business without a clear strategy would not succeed. The JC Penney Company adopted a new pricing model approach. It involved putting every single one of their brand chips on the pricing model. The company had opted for the approach in order to achieve a position in the business. First, the company had formed an assumption that it is only pricing that required a change. Secondly, customers wanted their stuff. Further, they pinned their brand communication fully on the newly adopted pricing model. However, the market leader strategies emphasize on maintaining consistent prices that produce value and strong customer relationships.
Strategy failure
JC Penney approach on new pricing model did not make sense especially to the clients. The reason can be attributed to the analogy that the new pricing models do not matter to the customer. JC Penney competitors such as Walmart already had the price position for consumers. In addition, Walmart was helping the customers to save and live better than JC Penney. Therefore, JC Penney was trying to pry the pricing approach from Walmart. Also, JC Penney was speculated to face a financial crisis in the future. Further, most of the blame was attributed to JC Penney for planning its own obsolescence in comparison to other companies.
JC Penny organization lacked specialization in terms of its products. It was likened to being a mall within a mall in the modern age. On the other hand, there were no unique features or any motivation differentiating their products from other stores. JC Penney shoppers shifted to retailers such as Macy’s +9.43% nationally and TJ Maxx and Marshalls in off-price. This was an indication that they were not happy with the introduction of pricing models. The most irritating statement to the customers was, “I am a loyal shopper, why are you forcing me to change my behavior”. In JC Penney, they did not consider the mechanism to attain healthy competition in the market. The considerations include making assortment, merchandising, location and all kinds of decisions. In addition, motivation must accompany the decisions you make. This helps to find a brand idea, relevance and creativity in the business exploitation. Also, branding decisions galvanize the company and create a strong connection with the clients.
Expanding market share strategy emphasize on creating good service experience and building close relationships. Moreover, operational excellence involves reducing costs and creating a lean and efficient value delivery system. Also, branding the idea constantly reminds the customers what motivates the decision and inform them why they should shop. For instance, it is easier to identify brand motivations if you are a retailer specializing in one category. Further, JC Penney failed to recognize that customers hate to hear about a new pricing model.
Works Cited
Burns, Will. "The Lesson Of JC Penney: If No One Cares About You, Your New Pricing Model Doesn't Matter." (2012): Print. 21 June 2012.
Kahn, Judd. Competition Demystified: A Radically Simplified Approach to Business Strategy. New York: Portfolio, 2005. Print.
Wide Lens: A New Stategy for Innovation. London: Portfolio Penguin, 2012. Print.
