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Q1. Define the boundaries of Penny .
a) boundries of the industry ? what is the served market ?
prodiucts services ?
b) who are their customers ? non-customers ? difference ?
c) competitors ? NC? difference ?
d) key competencies required to compee in this industry ?
Where is value added ?
boundaries of JC Penny .
• not more than 60 years– targeted mainly the middle aged people (price sensitive
,middle suburban mothers)
• concentrated only in few cities
• post 2013--- focused towards retail chains (despite online boom)
Customers
About 24% of JCP’s customers are core shoppers vs 35% peer group average (Core
shopper: Spends >$100 in 3 months) and these core shoppers accounted for 66% of
total sales revenue of J.C. Penney
▪ About 40% of JCP’s shoppers are peripheral vs 32% peer group average (Peripheral
shopper: Spends
Shoppers purchase during “Sales and Clearance” season. They love shopping during
weekend sales. Consumers are addicted to coupons and discounts. ▪ Customers are
habituated to play games and hunt for good deals. Mostly shops during big holidays
with great discounts and promotions.
boundries of the industry ? what is the served
market ? products services ?
• retail industry operated as a mass merchandiser
• offered large discounts ( clothing)
Served market
• Unique Designer products which were new to US markets
• great products that are merchandised and marketed clearly.
competitors ? NC? difference ?
Before joining Apple
 large scale discount retailers such as Ames, Hills, Kmart, Venture
Stores, Walmart Macy’s
who is the customer ? what is important to him ? how does he perceive
penny ? What kind of relationship does penny have with them ?
 Pre Johnson era --- middle aged personnel below 60 yrs looking for
discount, Price sensitive
Johnson era– he removed all discounts and concenterated on niche
high end customers
Who are the competitors? what are their
strengths and weaknesses ? How do they perceive
penny ? What can penny learn from them ?
Before joining Apple
 large scale discount retailers such as Ames, Hills, Kmart, Venture
Stores, Walmart Macy’s
 Post JC Penny
 Clothing Store Lehmann, Kohls, Sears, Macys
• Strengths of Competitors
Demographic, Socio cultural, Global, Technological
who are potential competitors? new entrants ?
what changes in environment would make them
competitors ?
• Companies exploring niche markets ( maternity or Bifg and tall)
• online sales companies
• companies offering large discounts
Value Chain
what technologies are important ? product techy/ production
techy/Delivery & Service techy/ where is penny where these are
concerned ?where are competitors ?
• Technolgies wrt production using latest equipments,
• Created Exclusive JC Penny Merchandise
• Had a team of specialists to assist customers—known as geniuses
• usage of online delivery instead of only using niche marketing
key factors of oriduction/ service ? dependence on
limited sources ? how critical are the relationships
?

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Presentation1

  • 1. Q1. Define the boundaries of Penny . a) boundries of the industry ? what is the served market ? prodiucts services ? b) who are their customers ? non-customers ? difference ? c) competitors ? NC? difference ? d) key competencies required to compee in this industry ? Where is value added ?
  • 2. boundaries of JC Penny . • not more than 60 years– targeted mainly the middle aged people (price sensitive ,middle suburban mothers) • concentrated only in few cities • post 2013--- focused towards retail chains (despite online boom) Customers About 24% of JCP’s customers are core shoppers vs 35% peer group average (Core shopper: Spends >$100 in 3 months) and these core shoppers accounted for 66% of total sales revenue of J.C. Penney ▪ About 40% of JCP’s shoppers are peripheral vs 32% peer group average (Peripheral shopper: Spends Shoppers purchase during “Sales and Clearance” season. They love shopping during weekend sales. Consumers are addicted to coupons and discounts. ▪ Customers are habituated to play games and hunt for good deals. Mostly shops during big holidays with great discounts and promotions.
  • 3. boundries of the industry ? what is the served market ? products services ? • retail industry operated as a mass merchandiser • offered large discounts ( clothing) Served market • Unique Designer products which were new to US markets • great products that are merchandised and marketed clearly.
  • 4. competitors ? NC? difference ? Before joining Apple  large scale discount retailers such as Ames, Hills, Kmart, Venture Stores, Walmart Macy’s
  • 5. who is the customer ? what is important to him ? how does he perceive penny ? What kind of relationship does penny have with them ?  Pre Johnson era --- middle aged personnel below 60 yrs looking for discount, Price sensitive Johnson era– he removed all discounts and concenterated on niche high end customers
  • 6. Who are the competitors? what are their strengths and weaknesses ? How do they perceive penny ? What can penny learn from them ? Before joining Apple  large scale discount retailers such as Ames, Hills, Kmart, Venture Stores, Walmart Macy’s  Post JC Penny  Clothing Store Lehmann, Kohls, Sears, Macys • Strengths of Competitors Demographic, Socio cultural, Global, Technological
  • 7. who are potential competitors? new entrants ? what changes in environment would make them competitors ? • Companies exploring niche markets ( maternity or Bifg and tall) • online sales companies • companies offering large discounts
  • 9. what technologies are important ? product techy/ production techy/Delivery & Service techy/ where is penny where these are concerned ?where are competitors ? • Technolgies wrt production using latest equipments, • Created Exclusive JC Penny Merchandise • Had a team of specialists to assist customers—known as geniuses • usage of online delivery instead of only using niche marketing
  • 10. key factors of oriduction/ service ? dependence on limited sources ? how critical are the relationships ?