1. Hayley Gray Strategy for JCP 1
Objectives:
 Pinpoint a family-based target market in which to interact and engage with in order to
provide for their needs and build strong relationships.
 Develop a strong online presence through social media platforms including Facebook, the
mobile app, Twitter, Instagram, and a personalized discussion blog in which to engage
with customers.
 Build trust with all stakeholders including employees, investors, and customers by
creating a new unified company culture and structure.
 Ensure strong financial standings through a diverse financial portfolio, cost control, and
effective management policies.
 Create a consistent, recognizable brand image and reputation through establishing a
unique family-oriented DSI that builds customer awareness.
Internal Issues:
With J.C. Penney being the oldest department store, it had a large amount of loyal
customers and a specific brand reputation until the changes made by Ron Johnson were
implemented, causing the company to lose sight of its vision and mission. What it was known for
was its family orientation, American name, excellent customer service, and reasonably priced
wide selection of products. This is what many loyal customers expect from the company. As a
result, the new mission must be focused on the fulfillment of these expectations. The mission
will be “J.C. Penney strives to become a part of every family through engaging with each
member and providing them with personalized service and the largest selection of products that
help them to become the family they know they are.”

2. Hayley Gray Strategy for JCP 2
This mission can only be achieved through having a stable and supportive internal
culture, which JCP failed to have due to the fear and distrust instilled by Johnson’s massive
layovers. The culture needs to build a family within the company where the employees openly
communicate and trust each other. This will facilitate teamwork. Some of the ways this could be
achieved are through having departmental teams with leaders who are informed about company
changes weekly. These teams would have meetings to discuss the changes with input on the
company, and the teams could engage in games and competitions such as with stocking
inventory. Winners would receive some kind of prize. All the teams could gather together
monthly for a special event hosted by the top and middle management, such as a cookout. This
kind of culture would boost the energy of the employees. Furthermore, it would enhance the
family-oriented nature of JCP. By implementing a trusting and fun environment, the employees
would be happier, leading to better customer service. Training would be a fun environment with
much feedback between managers, team leaders, and bottom-line employees. Games would also
be used with this, in which goals were set and awarded when met. Role plays would be used to
demonstrate what not to do vs. what to do when dealing with customer issues. Overall, the
culture will be a more relaxed, engaging style.
Structurally, JCP was too hierarchal with muddled communication between the levels. As
a result, the organization was not fast, flat, or flexible. This could be fixed by having less levels
of management. Top management could hold more meetings with middle management. Middle
management could then communicate with team leaders, who would tell the bottom-line
employees. All managers would be interviewed personally by the CEO to ensure they are
suitable for the family style of the company with great communication skills, a high level of
energy, and a love for the company. Bottom-line employees would nominate team leaders, who

3. Hayley Gray Strategy for JCP 3
would then be interviewed by the middle management. It is essential that these team leaders be
trusted, respected, and liked by the bottom-line workers.
Dominant Selling Idea (DSI)
J.C. Penney is the #1 place to find what everyone in the family needs, from baby to great-
grandparent. That’s because J.C. Penney partners with the brands that our customers know and
love and combine it with an environment that make you feel at home with the people who make
this company part of your family.
The tag line will be “Togetherness made Effortless.” This supports the focus on family by
bringing everyone in the family together in their shopping experience, events JCP will host, and
bringing employees together as indicated by the new culture.
With family in mind, the new JCP logo will combine the box with JCP
inside it that was used for the “Fair and Square” branding with a roof and chimney
to represent home for the customers.
In comparison to competition, the company will provide a larger range of products for all
age ranges with brands that the customers submit online through social media, email, the
company web page, or send in mail surveys or in store. The company will also be more engaging
with the customers than its competition. This will be through hosting social events and
gatherings for customers to make them feel even more a part of the company. These events will
be planned by the managers, who will gather ideas from the bottom-line employees. At the
events, exclusive coupons will be given out, as well as door prizes that include gift cards to JCP
and family owned restaurants. Games will be played at the events that will allow for each
generation within a family to play together and make memories. Financially, these events will be
funded by donations and sponsorships from other companies whose products, perhaps food, are

4. Hayley Gray Strategy for JCP 4
shown at the events. Another customer-oriented distinction will be through the service given,
with employees who are professional, but relatable and down to earth. With training, these
employees will feel more like a friend or family member. Overall, this strong customer
interaction will differentiate JCP from its competition, making customers feel like they have a
relationship with the brand.
Marketing Mix Strategy
Customer Solutions/Product: The new J.C. Penney will offer a large variety of products
that will be based on what brands the customers say they want from social media, surveys online
or in-store, or mail-in. The products sold will be analyzed to see what is most popular. Many of
the brands currently used will be kept, but new ones will also be offered. There will be clothing
for all age ranges, as well as home décor and kitchen items for every age. Although the company
offers fashion for each age, the juniors section will need to be improved to include more
offerings than just trendy. Furthermore, the home offerings will range from baby to teen to
master suite options. Out of the stores, the social media strategy will be more family oriented.
The mobile app will allow people to link their J.C. Penney profiles, create outfits, favorite
products, and see notifications of when these products go on sale. Their family and friends will
see their favorites and creations if chosen by the user. Overall, there will be something for
everyone, whether it be in the actual physical product, or the shopping experience.
Access/Placement/Distribution: The store locations will remain the same, as that will
save costs and reduce confusion among current customers. However, these stores will need
reorganizing and arranging differently to allow for more options. The company will need to
analyze what is sold the least and remove it from the offerings in order to make room for a better
customer shopping experience. Once the company is back to stable and growing financials, they

5. Hayley Gray Strategy for JCP 5
can consider expanding these stores. The shopping experience will be very family oriented, with
dressing rooms large enough to let multiple people in for advice on fashion. There will also be
home displays for each type of room, nursery, toddler rooms, teen, and master bedrooms. Each
will be within a house-like set-up where families can walk through together and envision their
homes. When families enter, they will be greeted by an employee and coffee, cookies, and water
will be offered so as to make it feel like “grandma’s house.” There will also be a play area where
toddlers can play with train sets and other toys that will be monitored by a friendly, fun, J.C.
Penney employee. Different pictures and cardboard cutouts with hashtags besides them will be
placed throughout the stores for teens to take selfies with and share on social media. Bathrooms
will be large enough for many, with many family bathrooms offered.
Other than physical stores, the website will offer all of the same inventory as in store,
with up-to-date inventory listings about the stores. People will be able to order from the mobile
app and the website easily. The website could be simplified with less words for people to read
and more focus on the home theme. For instance, when pulling up the website, the categories
could be represented with pictures of the types of products, such as a house shape with the words
“for the home” on it. Furthermore, both of these platforms will have links to the company’s
Twitter, Instagram, LinkedIn, Pinterest and a new discussion board/blog for J.C. Penney
allowing for easier feedback. When products are shared in any of these social media platforms,
either through outfit posts or home decorating, there will be a link in the post to buy the product
online, as well as where to find it in a store closest to the user, using location services. Direct
mail will be based on the most active customers who shop at JCP. These customers will receive
the J.C. Penney catalog unless they unsubscribe.

6. Hayley Gray Strategy for JCP 6
Value/Price: The main focus will be taken off of prices, as that does not show value for
the customers. Instead, the company will emphasize the quality of its products and focus on
giving families an enjoyable shopping experience together. However, what most people expect
of a department store, especially JCP, is low prices and couponing. When Ron Johnson
eliminated couponing, many consumers stopped shopping at the store. Additionally, after the
exposition by the employee of the company’s false pricing, many customers lost trust in the
company. As a result, the company will have to maintain consistent pricing and constant
feedback for customers on pricing. Couponing will be a part of the new pricing strategy. They
will be given out through direct mail to the most loyal customers, as well as through emails to
users who subscribe, and at events hosted by the company. There will be monthly sales, as well
as Holiday season specials. Notifications on smartphones with the JCP app will indicate when
specials are going on and when the user’s favorites go on sale. The JCP rewards program will be
kept, but modified. There will be different levels that are personalized based on how loyal the
customer is. Those at the lower levels will receive more opportunities to earn points, while those
at high levels will receive less, but better offers. These customers will also be engaged on social
media and online through incentives to buy online or more points. Families can even engage in
loyalty programs together by having connecting accounts that add up points overall with special
promotions just for them.
Education/Promotion: One of the main issues with the old JCP was the inconsistency in
brand, which caused confusion and lack of recognition of the brand from its change of logos and
tag lines three times in three years. The new tagline and logo should remain in place and heavily
promoted. The physical stores should all have the new logo on the side, as many of the J.C.
Penney stores failed to convert to the new logos during Ron Johnson’s time, which added to the

7. Hayley Gray Strategy for JCP 7
confusion about the brand. The website should also reflect this change with the logo being
altered to match the new one. It should also be changed to reflect JCP’s new family-orientated
branding much like the mobile app in which profiles are linked together. The website will be
more personalized for each user based on their profile, with frequently bought products and
brands appearing. Additionally, the community events that the stores will start planning for their
local areas can be advertised in social media, newspapers, on television, and at the stores
themselves. Once financials have increased to a stable position, the company can begin
sponsorships of sporting events, which will be good for families to notice, especially in the
Hispanic customer market. Sponsorships of local businesses or local events would also promote
a sense of community and togetherness. Partnering with non-profits that are centered on family,
such as homeless or adoption organizations, would show customers J.C. Penney’s dedication to
family in everything they do. They could run special promotions where a portion of the profits
go towards these organizations. Advertisements should have families seen in them in order to
promote the company’s mission and DSI. Furthermore, the company will need to tailor all of its
ads based on the medium in which they are advertising. For instance, to target the teen age
group, the company may want to advertise in Snapchat or on Facebook with banners, whereas
the direct mailing of the catalog would be for older generations. Additionally, social media will
allow for expansive advertising through holding competition where users share the posts on
Facebook, retweet on Twitter, or regram on Instagram. There will be an integrated marketing
communications strategy for social media to make sure the brand is consistently represented. The
employees that work on these platforms will work together in order to pitch ideas and assure this
consistency.

8. Hayley Gray Strategy for JCP 8
Most Valuable Target Market
Families are the main target market for J.C. Penney, whether Hispanic or American.
These families would have multiple members, often with young children as the events and play
areas are catered to bring fun to them, and teens. They also will have extended family members
that enjoy shopping at J.C. Penney. Due to the nature of families to shop together since they live
in the same household and are brought up with similar tastes, acquiring just one of these
members will be good for attracting the other members. Then it can become a tradition for the
families to shop at J.C. Penney, making them loyal customers. As a result, this target market is
what the mission of JCP is dedicated to for providing products, services, and a family-oriented
shopping experience. The wide range of product lines offered, as well as the layout of the store
with different areas to meet each age group’s needs, represents the customer solution
components. The physical store, with room setups for families to envision themselves provides
values for families. The social media platforms will provide access for the young to middle aged
family members, especially with the ability to link JCP profiles together to see your connections’
favorites and created outfits. The catalog provides access for the older generations who are used
to seeing it. Emphasis will be placed on the family oriented shopping experience and large
offerings available, rather than the price, giving value to this market. Furthermore, the new
loyalty rewards program is geared towards families with the opportunity to connect accounts that
add up points overall with special promotions just for them. The Families will be targeted in ads
and promotions. Additionally, the events held will be family-friendly and have activities for
everyone. Lastly, with the sponsorships and partnerships oriented towards family organizations
and sporting events that families attend, the education components will bring value to this target
market.

9. Hayley Gray Strategy for JCP 9
Most Potential for Growth Target Market
Younger couples that are just starting out their lives and trying to figure out their
shopping patterns have the most potential for J.C. Penney. These couples may be close to having
children or looking to start in a couple years. As a result, they will be looking at where they can
get most of their products in one place. They are young enough to be heavily invested in social
media, and they need to still be trendy and professional. The clothing options offered and focus
on offering brands that customers want will meet the latter need. Furthermore, they are just
starting to build their homes and decorate, which J.C. Penney can offer them the home goods
they need. The home displays will provide a major customer solution component for these
couples in order to narrow down their vision for their house. Due to the heavy investment in
social media, JCP’s access strategy of their personalized mobile app and website being linked to
all of their social media platforms, this will be convenient for this target market, particularly with
links to products in the social media posts. Furthermore, having a large range of products in
stores is very convenient as these markets want to get their shopping done in one place. Younger
couples without children tend to have more expendable income, so value for them will be in the
offerings of brands they love that are high quality and at least moderately priced. JCP’s surveys
for brand offerings will keep this component in their strategy. The loyalty program will be
beneficial to this market as the company will offer more opportunities to earn points for new
members. The brand promotion through social media, sponsorships of sporting events, and
events will be key education components due to the use of technology and more free time to
attend events since these couples do not have kids yet. Furthermore, ads on television channels
with shows that this age range watches will benefit the brand interest for this group.

10. Hayley Gray Strategy for JCP 10
Budget and Resource Allocation
JCP has grown some in financial strength since the firing of Ron Johnson, but is still not
completely stable. Due to JCP’s financial struggles, the company should refrain from expanding,
but rather try to reorganize and get rid of old non-profitable products to make room for the new.
By getting rid of some of the older less-profitable products, the company will have more
resources available. These should be carefully allocated to a list of prioritized projects. Some
resources should be utilized on development of the company’s mobile app and website, as well
as on the new store layouts with the home design set ups. JCP should leverage its existing
partnerships with brands that consumers love. Other growth, such as events should be funded
through developing strong relationships with potential partners in local areas, as well as through
building a strong community presence in order to receive donations. Research on customer
preferences and age-specific interests and trends should also be funded as a part of the marketing
budget. Funds for the partnerships with family-oriented non-profits will come from the special
periods where portions of the sales are donated to these organizations. For rebranding, the
company will need to budget very carefully and sacrifice its liquidity through issuing stocks and
bonds to cover the costs of investing in this. After the brand has become more consistent and
recognizable, the company will earn some return on this investment, allowing them to pay off
any long-term debt accumulated from it. Service will be improved through funding training and
development sessions which will require capital investment. Furthermore, sales will increase
after the shopping experience and service are improved. These sales will then be a potential
resource for the company to grow and expand more.

11. Hayley Gray Strategy for JCP 11
Strategy Assessment
The % of sales should be analyzed to evaluate J.C. Penney’s product and brand choices.
After making investments in rebranding and redesigning the stores, the company should look
into its ROA and ROE in order to see how its investments are affecting the company. At first,
JCP should expect these to be a little low, but then they should increase fairly steadily. Similarly,
the liquidity, as seen through the company’s current and quick ratios, will be very poor in the
beginning of implementing the strategy. The debt-to-equity ratio will also be poor at the
beginning. However, after a few years, these should change when the company is able to pay off
its long-term debt and capital investment with its increased cash flow and sales.
In terms of market-based metrics, the company will especially need to analyze its
changes in customer interest and awareness of the brand considering its rebranding might cause
confusion like its past rebranding strategies have done. With the implementation of the new
loyalty rewards program, it will be easier to look into customer loyalty measures. The customer
retention and new customer percentage should be watched to see how the strategy is doing
overall in making a difference, and who the company should be targeting. Consumer attitudes
should be watched through social media heavily, as most feedback is given through this medium
today. Customer preferences will be tracked through the surveys in store, on social media and
sent through direct mail. This will help JCP with product choices and brand partnerships.
Furthermore, one of the issues that faced JCP over the past couple of years with Ron Johnson
was trust, both from employees and customers. This should be watched as well to see if the
company addresses the issue. Lastly, market share will help to indicate whether the company is
improving as a whole through this new strategy.