JC Penney, Retail Management Project

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Final Presentation for JC Penney consulting project.

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  • Objective: trusting us for this project as your consultantThink global, fresh, hip, modern look of jc penney
  • Direct, effective and fast way to reach end customers. Used in japan a lot for various marketing campaigGETTAG.MOBI
  • We first define our target marketMen in generation y: modern, fashion-forward, tech-oriented, good incomeBy understanding this target market, we develop a product line, REINVENTED that will fit our customer’s want and needsOne of the item in the product line, the complement sport coat, is our signature itemAnd finally we want to sell the item, therefore, we have exclusively brand our product to attracts customer attentionEffective marketing strategies such as visual merchandising, media ads, and innovative ads by using online social media and qr code will be incorporated for the success of this business plan
  • Objective: trusting us for this project as your consultantThink global, fresh, hip, modern look of jc penney
  • JC Penney, Retail Management Project

    1. 1. jcpenney REFRESH Consulting Group Ariel Rios Christina Tran Evelyn Shao Jessica Hendrawidjaja Stephanie Whitman
    2. 2. GOAL To fully capture the young men’s apparel market share in the United States JCP Analysis Product Line Strategies FinancialsChallenge
    3. 3. JCPENNEY Young Target Market Creative Innovative Clothing Advertising Line Effective Exclusive Marketing BrandingChallenge Analysis Product Line Strategies Financials
    4. 4. ANALYSIS
    5. 5. JCPENNEY MISSION: WINNING TOGETHER Principle To execute a strategic Long Range Plan that involves customers, associates, and shareholders CORE COMPETENCY : JCPENNEY BRAND CURRENT ISSUE POTENTIALS• Capturing the young men • Innovative target market advertising• Product awareness • Creative product line• Competitions • Exclusive branding Challenge Analysis Product Line Strategies Financials
    6. 6. TARGET MARKET PROFILE BRYAN SMITH • 33, Finance Manager at Microsoft, WA • USD 87,750/year • Loyal subscriber of GQ Magazines and Auto • Interest: sports, car, business and political topics Challenge Analysis Product Line Strategies Financials
    7. 7. BEHAVIOR43% don’t look for clothes, but buy whatthey stumble across that suits them72% says “Style is important, I want themto fit what I consider to be my style41% thinks Italy has the best-dressedmen Challenge Analysis Product Line Strategies Financials
    8. 8. BEHAVIORCAR (58%)FITNESS (60%)GADGET (70%) Challenge Analysis Product Line Strategies Financials
    9. 9. TREND ANALYSIS Less demand for conspicuous logo More long-lasting & everyday staple pieces Challenge Analysis Product Line Strategies Financials
    10. 10. RE-INVENTED MARKETMen of Generation YClassic to ModernWork to Casual Challenge Analysis Product Line Strategies Financials
    11. 11. SIGNATURE ITEM “COMPLEMENT” SPORT COAT Challenge Analysis Product Line Strategies Financials
    12. 12. PRODUCT LINE• Color Swatch Embellishment • Versatile/Easily Mixed and• Material to fit lifestyle of our man Matched• Pop of Color • Vintage Buttons Challenge Analysis Product Line Strategies Financials
    13. 13. RE-INVENTED Exclusive line Mid-price positioning Modern, stylish, contemporary Challenge Analysis Product Line Strategies Financials
    14. 14. STRATEG Y
    15. 15. BRANDING ‘RE-INVENTED’ realizes that our brand is the source of a promise to our consumer Main Branding Objectives• Deliver message clearly• Confirm our credibility• Connect with our target prospects emotionally• Motivate the buyer• Increase User Loyalty Challenge Analysis Product Line Strategies Financials
    16. 16. RE-INVENTED BRANDINGGain recognition in Men’spublications: generate buzz• Facebook & QR Code ApplicationExpand current market bycapturing a new target market• Generation Y & Men, 25-35 years oldLeverage customer experienceIncrease sales• Convert prospect to loyal clients Challenge Analysis Product Line Strategies Financials
    17. 17. VISUAL MERCHANDISING • Placement: Inside main entrance in corner • Adjacencies: Levis and Dockers • One Stop Shop environment • Giant QR Code on every display • Matching ideas • Color options Challenge Analysis Product Line Strategies Financials
    18. 18. SOCIAL MEDIA Less demand for conspicuous logo Challenge Analysis Product Line Strategies Financials
    19. 19. MOBILE QR CODE JCP Challenge Analysis Product Line Strategies Financials
    20. 20. MEDIA ADS MAGAZINES• Ideal audience • 3 platforms of profile advertisement: - Age Group Magazine, Website, - Annual Income Mobile - Behavior/Interest Challenge Analysis Product Line Strategies Financials
    21. 21. FINANCIAL S
    22. 22. PRICING STRATEGY: MARKET PRICE PRODUCT PRICES• Signature Sport Coat: $69.99 • T-Shirts: $19.99• Jacket: $69.99 • Briefcase: $59.99• Sweaters: $39.99 Challenge Analysis Product Line Strategies Financials
    23. 23. “COMPLEMENT” Sport Coat
    24. 24. JCP Profit Analysis Test Production Test Production . Sales at Full Price $ 41,994.00 Sales at Discount Price $ 13,438.08 Total Gross Sales 55,432.08 COGS 25,840.60 Gross Margin $ 29,591.48Challenge Analysis Product Line Strategies Financials
    25. 25. JCP Profit Analysis Full Production Full Production Sales at Full Price $ 3,499,500.00 Sales at Discount Price 1,119,840.00 Total Gross Sales 4,619,340.00 COGS 2,153,383.04 Gross Margin $ 2,465,956.96Challenge Analysis Product Line Strategies Financials
    26. 26. SPI Profit Analysis Test and Full Production “Complement” Sport Coat . Test Production $ 8,518.88 Full Production $ 709,906.50Challenge Analysis Product Line Strategies Financials
    27. 27. ALTERNATIVESCENARIOS
    28. 28. Best Case Complement Sport Coat Best Case Sales at Full Price $ 4,899,300.00 Sales at Discount Price 559,920.00 Total Gross Sales 5,459,220.00 COGS 2,461,009.18 Contribution $ 2,998,210.82Challenge Analysis Product Line Strategies Financials
    29. 29. Worst Case Complement Sport Coat Worst Case Sales at Full Price $ 2,099,700.00 Sales at Discount Price 1,679,760.00 Total Gross Sales 3,779,460.00 COGS 1,845,756.89 Contribution $ 1,933,703.11Challenge Analysis Product Line Strategies Financials
    30. 30. Break-Even Analysis Complement Sport CoatFull Production .Break Even Units 43,953Break Even Point $ 3,076,261.48Challenge Analysis Product Line Strategies Financials
    31. 31. CONCLUSION S
    32. 32. JCPENNEY Young Target Market CreativeInnovative ClothingAdvertising Line Effective Exclusive Marketing Branding
    33. 33. thank you questions?
    34. 34. APPENDIXPresentations Financials PricingGoal Financial - Sport CoatJCPenney Challenge Alternative ScenariosAnalysisJCPenney AnalysisTarget Market Profile AppendixTarget Market BehaviorTarget Market Behavior(cont.) AnalysisTrend Analysis Market SegmentationRE-INVENTED Market Segmentation ProfileMARKET Market Segmentation GeographicSignature ItemProduct LineRE-INVENTED FinancialsStrategies Entire LineBranding Alternative Scenarios - Full LineRE-INVENTED BRANDINGVisual MerchandisingSocial MediaQR CodeMedia Ads
    35. 35. MARKET SEGMENTATION Retail Industry
    36. 36. MARKET SEGMENTATION Retail Industry Consumer aged under 25 This market segment holds 20% of the overall market share which is valued as $38.34 billion.Customer Profile Teenagers or young adultsIncome Limited disposable incomeShopping Behavior More likely to shop in smaller niche stores that offer the latest fashion products Consumers aged 25 to 40 This market segment holds 35% of the overall market share which is valued as $67.095 billion.Customer Profile Employed individuals, sometimes with childrenIncome Steady incomeShopping Behavior Has the ability to shop for a range of goods under one store Those with children are also able to purchase goods at competitive price The quality of the good is more important to consumers as opposed to its label Consumers aged 41 to 65 This market segment holds 30% of the overall market share which is valued as $57.51 billion.Customer Profile Key buyers of department store merchandiseIncome Higher disposable incomeShopping Behavior Buy for their grandchildren as they have generally accumulated sufficient goods for themselves Tends to purchase higher-tier merchandise for themselves and their family Consumers aged over 65 This market segment holds 15% of the overall market share which is valued as $28.76 billion.Customer Profile RetireeIncome Reduced disposable income streamShopping Behavior Reduced demand for goods sold by the industry
    37. 37. MARKET SEGMENTATION GEOGRAPHICS
    38. 38. RE-INVENTED LINE DETAILS
    39. 39. ENTIRE LINE
    40. 40. JCP Profit Analysis Test Production Test Production . Sales at Full Price $ 170,961.50 Sales at Discount Price 54,707.68 Total Gross Sales 225,669.18 COGS 97,184.60 Gross Margin $ 128,484.58Challenge Analysis Product Line Strategies Financials
    41. 41. JCP Profit Analysis Full Production Full Production Sales at Full Price $ 14,496,750.00 Sales at Discount Price 4,638,960.00 Total Gross Sales 19,135,710.00 COGS 8,250,383.04 Gross Margin $ 10,885,326.96Challenge Analysis Product Line Strategies Financials
    42. 42. SPI Profit Analysis Test and Full Production Entire Line . . Test Production $ 32,038.88 Full Production $ 2,719,906.50Challenge Analysis Product Line Strategies Financials
    43. 43. ALTERNATIVESCENARIOS FULL LINE
    44. 44. Best Case Entire Line Best Case Sales at Full Price $ 20,295,450.00 Sales at Discount Price 2,319,480.00 Total Gross Sales 22,614,930.00 COGS 9,429,009.18 Contribution $ 13,185,920.82Challenge Analysis Product Line Strategies Financials
    45. 45. Worst Case Worst Case Sales at Full Price $ 8,698,050.00 Sales at Discount Price 6,958,440.00 Total Gross Sales 15,656,490.00 COGS 7,071,756.89 Contribution $ 8,584,733.11Challenge Analysis Product Line Strategies Financials
    46. 46. Break-Even Analysis Break Even Avg Units Style # Item Units Bought Cost Total Cost # of stores Units per StoreRO5-SCC Sport Coat 100,000 $ 30.76 $ 3,076,261.48 43,953 1,108 90RO5-JKK Outerwear Jacket 100,000 26.00 2,600,000.00 37,148 1,108 90RO5-SSI Sweater 100,000 15.60 1,560,000.00 39,010 1,108 90RO5-CGS Cardigan 100,000 19.50 1,950,000.00 48,762 1,108 90RO5-TSS T-Shirt 1 100,000 6.50 650,000.00 32,516 1,108 90RO5-TSG T-Shirt 2 100,000 6.50 650,000.00 32,516 1,108 90RO5-BCA Briefcase 50,000 26.00 1,300,000.00 21,670 1,108 45 Challenge Analysis Product Line Strategies Financials

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