The Marketing mix of JCPenney analyses the 7Ps of JCPenney, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of JCPenney. JCPenney Company is commonly referred to as JCPenney. It is a public company founded in 1902 by its founder, James Cash Penney. It is associated with the retail and lifestyle industry and deals in departmental stores. JCPenney has set up its outlets for American families looking for household products in one place. Some analysis of the competition and its competitors are as follows-
- L Front Retailing
- Mercuries and Associates
- Macy’s Inc
- Wal-Mart Stores
About Jcpenney Company
- Type: JCPenney Company is a department store chain.
- Industry: Retail
- Founded: April 14, 1902
- Founder: James Cash Penney
- Headquarters: Plano, Texas, United States
- Area served: United States and Puerto Rico
- Key people: Marvin Ellison, CEO, and Brian Cornell, Executive Chairman
- Number of employees: Over 100,000
Table of Contents
JCPenney Company Product Strategy
JCPenney is a trendy retail outlet in America that sells many brands and conventional merchandise in its stores. It also houses leased service departments like jewelry repair, portrait studios, optical centers, salons, Seattle’s Best Coffee, and Sephora.
- General Merchandise: The store sells conventional merchandise and includes leased departments for specialized services like jewelry repair, portrait studios, optical centers, salons, and coffee shops.
- Distinctive Boutiques: Within its department stores, JCPenney houses nearly one hundred distinctive boutiques, offering products for men, women, and children of all ages.
- Wide Range of Products: The product portfolio includes furniture, home décor, dining appliances, bed and bath products, window items, backpacks and luggage, and various appliances.
- Apparel and Accessories: Their offerings include a wide range of clothing for different age groups and genders, footwear, and accessories such as handbags, sunglasses, wallets, watches, gloves, hats, and belts.
- Jewelry, Beauty Products, and Fragrances: JCPenney also offers an extensive range of jewelry, beauty products, fragrances, and grooming products like shaving kits for men.
JCPenney Company Pricing Strategy
- Promotional Pricing: JCPenney often uses promotional pricing strategies such as sales, discounts, and special offers. This approach is designed to drive traffic to stores and websites, clear out inventory, and encourage impulse buying.
- Penetration Pricing: For new product launches or entering new markets, JCPenney might use penetration pricing – setting lower prices to attract customers and establish a market presence. Once a customer base is established, prices can be gradually increased.
- Price Skimming: JCPenney sometimes uses price skimming strategies for exclusive or high-demand products. This involves setting higher prices initially and then gradually lowering them over time.
- Psychological Pricing: A common tactic is implementing prices slightly below a round number (e.g., $19.99 instead of $20). This strategy, known as psychological pricing, is used to make prices seem lower than they are.
- Competitive Pricing: JCPenney often benchmarks its prices against competitors. This approach ensures that they remain competitive in the market, matching or slightly underpricing similar products offered by competitors.
- Dynamic Pricing: With advancement, JCPenney might also use dynamic pricing, where prices are adjusted in real-time based on demand, inventory levels, and competitor pricing.
- Value-Based Pricing: Focusing on the perceived value of products to the customer, JCPenney might set prices based on the benefits and satisfaction the products provide rather than just the cost of production.
- Tiered Pricing: Another strategy is offering products at various price points to cater to different market segments. This includes having budget, standard, and premium versions of a product.
JCPenney Company Place Strategy
JCPenney is an American company with its business and marketing operations spread nationwide. Its retail industry network is stretched over Puerto Rico and forty-nine states in the United States via department stores in one thousand and fourteen places. Its headquarters are in Plano, Texas. Previously, most of its outlets were in downtown areas, but after 1966, they have been based in shopping malls in suburban areas.
A focus on several key elements characterizes JCPenney’s place strategy:
- Wide Store Presence in the USA: JCPenney is present in over 800 locations across various states in the USA. The company ensures easy accessibility for customers with the help of a ‘Find a store’ option on its website, facilitating accessible locations of nearby stores.
- Target Market: The primary target market for JCPenney includes Millennials and average Americans with reasonable income. The store’s location strategy and product offerings are aligned to appeal to this demographic segment.
- Optimization Strategy: In line with its Plan for Renewal, JCPenney aims to reduce its store footprint and concentrate resources on its most muscular stores and its robust eCommerce flagship store, jcp.com. This involves closing some physical locations while strengthening others and focusing on online sales.
- Nationwide Retailer and Online Store: Despite the reduction in physical stores, JCPenney remains one of the nation’s largest apparel and home retailers. The company has reopened nearly 500 stores since easing COVID-19 restrictions and continues to operate both physical stores and its flagship online store.
- Shift in Store Locations and Online Retailing: JCPenney’s stores were initially located in downtown areas. However, with the growing popularity of shopping malls in the 1960s, the chain began relocating and developing stores to anchor malls. Recently, JCP has opened stores in power centers and stand-alone locations. The company has been an Internet retailer since 1998, has streamlined its catalog and distribution processes, and has undergone store-level renovations.
JCPenney Company Promotion Strategy
JCPenney has a well-devised marketing strategy and policy to promote, create, and maintain brand awareness amongst its consumers through social media. It emails customers about upcoming happenings like a clearance sale, recent offers, forthcoming discounts, and in-store coupons.
It also offers free family portraits and children’s haircuts and sends an email about the days and times. JCPenney has associated certain brands and products with specific festivals or days and has adopted promotional policies accordingly. For instance, it offers several incentives on occasions like Valentine’s Day, Mother’s Day, and Easter by providing offers on brands and times that consumers will most demand.
Some Recent Video ads and Print ads for JCPenney are:
JCPenney Company People Strategy
When discussing the “People” aspect of the Service Marketing Mix for JCPenney, you’re focusing on the employees, customer service, marketing, advertising, and overall customer experience, which are crucial for service delivery. Here are several key points to consider:
- Employee Training and Development: JCPenney invests in comprehensive training programs for its employees to ensure they possess the necessary skills and knowledge to provide exceptional customer service. This includes product knowledge, customer interaction techniques, and handling customer complaints effectively.
- Customer Service Focus: The company emphasizes the importance of excellent customer service as a core component of its brand identity. Employees are encouraged to go above and beyond to meet customer needs, creating a positive shopping experience that encourages loyalty and repeat business.
- Diverse and Inclusive Workforce: JCPenney strives to maintain a diverse workforce that reflects its varied customer base. This includes hiring employees from various backgrounds and cultures, which helps them understand and meet the needs of a broader range of customers.
- Employee Empowerment: JCPenney empowers its employees by giving them the authority to make decisions that can immediately resolve customer issues or enhance the shopping experience. This level of trust in employees can lead to more efficient service and customer satisfaction.
- Role of Sales Associates: Sales associates at JCPenney play a crucial role in the shopping experience, offering personalized assistance, advice on products, and helping customers make informed decisions. Their knowledge and friendliness are vital for creating a welcoming atmosphere.
- Management and Leadership: Effective leadership and management practices are essential for motivating employees and maintaining high service standards. JCPenney’s management team focuses on creating a supportive and positive work environment that encourages employee engagement and retention.
- Feedback and Improvement: JCPenney values customer and employee feedback as a tool for continuous improvement. Implementing feedback mechanisms allows the company to identify areas for improvement in service delivery and employee satisfaction.
- Community Engagement: Employees are often involved in community engagement activities, reinforcing the brand’s commitment to social responsibility. This benefits the community, builds a positive brand image, and fosters a sense of pride among employees.
- Technology Integration: To enhance the service experience, JCPenney integrates technology to support its staff. This includes the use of mobile devices for inventory management, online training modules for continuous learning, and digital tools for enhancing customer interaction.
- Performance Recognition: Recognizing and rewarding employees for outstanding performance is a key strategy at JCPenney. This motivates employees to maintain high levels of customer service and contributes to a positive organizational culture.
JCPenney Company Process Strategy
The “Process” element of the Service Marketing Mix for JCPenney encompasses the operational and service delivery procedures that define the customer experience. This includes everything from how services are designed and delivered to how customer data and interactions are managed. Here are several key points to consider:
- Service Design and Delivery: JCPenney designs its services with the customer experience in mind, ensuring a seamless and efficient shopping process. This includes easy navigation of the store layout, clear signage, and the strategic placement of products.
- Checkout Process: The company focuses on a streamlined checkout process, both in-store and online, to minimize wait times and enhance convenience. This includes multiple payment options, self-checkout stations, and efficient online payment systems.
- Online Shopping Experience: JCPenney’s online platform is designed for user-friendliness, with an intuitive interface, detailed product information, and easy navigation. The online process includes features like product filters, wish lists, and customer reviews to aid in the shopping experience.
- Order Fulfillment and Delivery: JCPenney has a robust order fulfillment process that ensures timely and accurate delivery of products. This includes efficient inventory management, reliable shipping partnerships, and in-store pickup or home delivery options.
- Customer Service Channels: The company offers multiple customer service channels, including in-store assistance, online chat, email support, and a dedicated customer service hotline. This ensures customers can quickly seek help or information through their preferred mode of communication.
- Returns and Exchanges: JCPenney simplifies the process for returns and exchanges to enhance customer satisfaction. This includes clear policies that are easy to understand, multiple return options (in-store or mail), and a hassle-free process to encourage customer confidence.
- Appointment Booking for Services: For services such as salon appointments or optical services, JCPenney provides easy booking options through online platforms or phones, allowing customers to schedule services at their convenience.
- Feedback and Complaint Resolution: The company has a structured process for handling customer feedback and complaints, ensuring they are addressed promptly and effectively. This includes dedicated teams for resolution and mechanisms for feedback collection, such as surveys and online reviews.
- Technology Integration in Service Delivery: JCPenney integrates technology in its service delivery, such as mobile apps for shopping and loyalty programs, digital kiosks in stores, and augmented reality features for trying products virtually.
- Employee Roles and Training: Employees are trained to thoroughly understand their roles in the service delivery process, from sales associates providing product advice to customer service representatives handling inquiries and complaints.
- Health and Safety Measures: Especially relevant in recent times, JCPenney has implemented processes for ensuring the health and safety of both customers and employees, including sanitization protocols, social distancing measures, and contactless service options where possible.
JCPenney Company Physical Evidence Strategy
The “Physical Evidence” component of the Service Marketing Mix for JCPenney encompasses the tangible aspects of the brand that customers interact with, directly impacting their perceptions and purchase experiences. This whole marketing mix includes the store environment, online presence, and all the physical and visual elements associated with the brand. Here are several vital points to consider:
- Store Design and Layout: JCPenney’s store design is focused on creating a welcoming and pleasant shopping environment. This includes clear and intuitive store layouts, attractive merchandise displays, and comfortable lighting and ambiance that enhance the shopping experience.
- Branding Elements: The company’s branding elements, such as its logo, color scheme, and typography, are consistently used across all physical and digital platforms. These elements contribute to the brand’s recognition and customer’s perception of quality and reliability.
- Point of Sale Displays and Signage: In-store point-of-sale displays and signage are designed to be eye-catching and informative, facilitating the shopping process by highlighting promotions, new arrivals, and product information.
- Online Website and Mobile App: The online presence of JCPenney, including its website and mobile app, serves as physical evidence of its brand in the digital space. These platforms are designed to focus on aesthetics, ease of use, and a seamless shopping experience.
- Packaging and Branding Materials: The packaging of products and branding materials, such as shopping bags, gift boxes, and receipts, are carefully designed to align with JCPenney’s brand image and to leave a lasting impression on customers.
- Employee Uniforms: Employee uniforms contribute to the physical evidence of the brand, offering a consistent and professional appearance that reinforces the company’s identity and values.
- In-store Technology: In-store technology, such as digital kiosks, interactive screens, and augmented reality experiences, adds to the physical evidence by enhancing the shopping experience and showcasing the brand’s innovation.
- Customer Service Areas: Customer service areas, including returns and exchanges counters, information desks, and checkout stations, are designed for functionality and efficiency while also being welcoming and reflecting the brand’s commitment to customer satisfaction.
- Cleanliness and Maintenance: The cleanliness and maintenance of physical spaces, both in-store and in other customer-facing areas, are crucial for creating a positive brand image. This includes regular cleaning, upkeep of fixtures and fittings, and ensuring that all areas are well-maintained.
- Marketing Collaterals: Printed marketing collaterals, such as catalogs, flyers, and in-store promotional materials, provide tangible evidence of the brand and its offerings, helping to communicate value and engage customers.
- Atmospherics: Elements such as music, scent, and lighting within stores are carefully curated to create a specific atmosphere that aligns with the brand’s identity and enhances the customer experience.
Liked this post? Check out the complete series on Marketing Mix