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JC Penney   Fair and Square Pricing Initiative Crisis                           SIPR Team 1Terenia Autrey   Rey Colarte   ...
History✤   Originally named Golden Rule and was a    small goods store✤   Opened by James Cash Penney in    Kemmerer, Wyom...
Change Is Good Right?(FIDM Digital Arts Blog. 2012)
CEO Ron Johnson✤   Former Target executive and    creator of the Apple Store✤   Plans to bring in better    merchandise an...
New Pricing Plan✤   75% of everything sold at J.C. Penney    was at a discount of 50%.✤   Mailers and coupons are no longe...
New Pricing Plan✤     Prices will now end in "0" instead of "99" and      price tags will list just one price.✤     New pr...
Public Relations Efforts✤   Will begin to house affiliate brands and partners✤   Will develop Town Squares to offer constan...
Survey Says   ?
A Major Drop In Saleswebpronews.com
Results of New Pricing Plan✤      Customers are confused about new pricing plan✤      Shares decreased more than 8% in pre...
What Are Customers Saying?
What Are Customers Saying?
Reoccurring Themes✤   Customers like coupons✤   Customers do not believe they are getting deals✤   Poor customer service✤ ...
What Went Wrong
PR Action Plan To Date
PR Action Plan To Date                            Goal                        To Become                  Americas Favorite...
Action Plan /Crisis Plan✤ H a v e a C r i s i s Te a m i n P l a c e✤ Spokes People✤ Developed Process
Action Plan /Crisis Plan✤P r e p a r e d f o r S o c i a l M e d i a                                               (Dhaly,...
Action Plan /Crisis Plan✤B r a i n S t o r m f o r t h e F u t u r e• Testing Ideas and Changes First• Determine What the ...
ReferencesDhaly, I. (2010). Social Media for Crisis management   Retrieved August 20, 2012 from    http://www.slideshare.n...
ReferencesThau, B. (2012). What the Exit of JCPs President Means for Its No Sale Strategy. Daily Finance.     Retrieved Au...
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Sipr team 1 first draft

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Sipr team 1 first draft

  1. 1. JC Penney Fair and Square Pricing Initiative Crisis SIPR Team 1Terenia Autrey Rey Colarte Nyota Ferguson David Hardnett Jesse Teske
  2. 2. History✤ Originally named Golden Rule and was a small goods store✤ Opened by James Cash Penney in Kemmerer, Wyoming in 1902✤ Sold blue jeans and other work clothes, shoes, fabrics and sewing needs✤ At its height, there were over 1,200 stores in all 50 states and Puerto Rico, Mexico and Chile(Our History. n.d.)
  3. 3. Change Is Good Right?(FIDM Digital Arts Blog. 2012)
  4. 4. CEO Ron Johnson✤ Former Target executive and creator of the Apple Store✤ Plans to bring in better merchandise and create strategic partnerships✤ Rolled out a new pricing plan for J.C. Penney (Heller, L. 2012)
  5. 5. New Pricing Plan✤ 75% of everything sold at J.C. Penney was at a discount of 50%.✤ Mailers and coupons are no longer used.✤ The makeover was expected to save the company over $900 million dollars (Mohammed, R. 2012)
  6. 6. New Pricing Plan✤ Prices will now end in "0" instead of "99" and price tags will list just one price.✤ New pricing initiative has three levels: ✤ Red tag items - indicate the everyday price ✤ Blue tag items - will be the best price for as long as the item is in stock. ✤ Month long values (Thompson, S. R. 2012)
  7. 7. Public Relations Efforts✤ Will begin to house affiliate brands and partners✤ Will develop Town Squares to offer constant customer support and complimentary services✤ Completed a 10-year agreement with Martha Stewart Living Omnimedia✤ Used Ellen DeGeneres as a celebrity spokesperson(Thompson, S. R. 2012)
  8. 8. Survey Says ?
  9. 9. A Major Drop In Saleswebpronews.com
  10. 10. Results of New Pricing Plan✤ Customers are confused about new pricing plan✤ Shares decreased more than 8% in premarket trading✤ There was a lost of $147 million or 67 cents per share✤ Gross profit margin fell to 33.2% from 38.3% a year ago✤ The sales decline accelerated to ~22% in the second quarter✤ A lot of negative press about the change (D’Innocenzio, A. 2012)
  11. 11. What Are Customers Saying?
  12. 12. What Are Customers Saying?
  13. 13. Reoccurring Themes✤ Customers like coupons✤ Customers do not believe they are getting deals✤ Poor customer service✤ Quality is perceived as deteriorating✤ Customers are moving over to competitors such as Target and Kohl’s✤ Online store is continuously out of stock
  14. 14. What Went Wrong
  15. 15. PR Action Plan To Date
  16. 16. PR Action Plan To Date Goal To Become Americas Favorite Store(Thau, B. 2012)
  17. 17. Action Plan /Crisis Plan✤ H a v e a C r i s i s Te a m i n P l a c e✤ Spokes People✤ Developed Process
  18. 18. Action Plan /Crisis Plan✤P r e p a r e d f o r S o c i a l M e d i a (Dhaly, I. 2010)
  19. 19. Action Plan /Crisis Plan✤B r a i n S t o r m f o r t h e F u t u r e• Testing Ideas and Changes First• Determine What the Customer’s Really Want• Developing Better Communication with Customers•Find what is Relevant to the Consumer and Test
  20. 20. ReferencesDhaly, I. (2010). Social Media for Crisis management Retrieved August 20, 2012 from http://www.slideshare.net/ishraq77/social-media-for-crisis-managementD’Innocenzio, A. (2012). J.C. Penney revenue, profit plunge; everyday prices struggle. USA Today. Retrieved August 20, 2012 from http://www.usatoday.com/money/companies/earnings/story/2012-08-10/jc-penney/56929566/1FIDM Digital Arts Blog. (2012). On JC Penney website. Retrieved August 20, 2012 from http://blog.fidmdigitalarts.com/typography-tuesday-jcpenneys-newest-brand-re-design-is-catching-our-attention/Heller, L. (2012). JCPenneys Ron Johnson Is The New Steve Jobs. Forbes. Retrieved August 20, 2012 from http://www.forbes.com/sites/lauraheller/2012/06/25/jcpenneys-ron-johnson-is-the-new-steve-jobs/Mohammed, R. (2012). Understanding J.C. Penneys Risky New Pricing Strategy. Harvard Business Review. Retrieved August 20, 2012 from http://blogs.hbr.org/cs/2012/01/understanding_jc_penneys_risky.htmlOur History. (n.d.). On JC Penney website. Retrieved August 20, 2012 from http://www.jcpenney.net/Our-Old-Company/About-jcpenney/Our-History.aspx
  21. 21. ReferencesThau, B. (2012). What the Exit of JCPs President Means for Its No Sale Strategy. Daily Finance. Retrieved August 20, 2012 from http://www.dailyfinance.com/2012/06/19/what-the-exit-of-jcps-president-means-for-its-no-sale-strateg/Thompson, S.R. (2012). J.C. Penneys pricing: Heres what has changed. Dallas Business Journal. Retrieved August 20, 2012 from http://www.bizjournals.com/dallas/blog/2012/07/a-break-down-of-jc-penneys-pricing.html

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