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James Cash Penney Company Marketing Analysis
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Institution
James Cash Penney Company Analysis
James Cash Penney is among the oldest companies in the United States established in 1902 by William Henry and James Cash Penney. It offers a variety of products such as jewelry, family apparel, accessories, shoe and home furnishing items through its website and series of departmental stores. The company also provides its items through a catalogue channel, which serves the same customer and offers same product mix. The company’s activities are carried out through a single segment; however, the revenues are determined by item category. In addition to the company’s product categories, the stores provide an optical, salon, consumer decorating services and portrait photography. JC Penney faces stiff competition from numerous retailers and operates stores in close proximity to rivalries. The departmental stores like Dillard’s, Macy’s and Kohl’s offer direct competition to JC Penney. Furthermore, discount stores like Wal-Mart and Target are also competing with the company. The aforementioned stores offer cheap prices and are attractive to customers in the escalating economy.
Because of the stiff competition, the company has recently in the latest great recession which has adversely affected their sales and market share. To regain its market share and redefine itself, JC Penney Company should consider its key pricing approaches like narrowing prices to clear out its daily low pricing strategy which has led to decline in the operational income. In addition, the company should bring in weekly sales activities and in-store coupons to improve its sales trends and develop a more participatory, brand centric department. The company should also concentrate on production and presentation approaches in their warehouse format by removing the typical warehouse set up and establishing a new arrangement which will enable them to have many departmental shops.
In summary,...
Student Name
Institution
James Cash Penney Company Analysis
James Cash Penney is among the oldest companies in the United States established in 1902 by William Henry and James Cash Penney. It offers a variety of products such as jewelry, family apparel, accessories, shoe and home furnishing items through its website and series of departmental stores. The company also provides its items through a catalogue channel, which serves the same customer and offers same product mix. The company’s activities are carried out through a single segment; however, the revenues are determined by item category. In addition to the company’s product categories, the stores provide an optical, salon, consumer decorating services and portrait photography. JC Penney faces stiff competition from numerous retailers and operates stores in close proximity to rivalries. The departmental stores like Dillard’s, Macy’s and Kohl’s offer direct competition to JC Penney. Furthermore, discount stores like Wal-Mart and Target are also competing with the company. The aforementioned stores offer cheap prices and are attractive to customers in the escalating economy.
Because of the stiff competition, the company has recently in the latest great recession which has adversely affected their sales and market share. To regain its market share and redefine itself, JC Penney Company should consider its key pricing approaches like narrowing prices to clear out its daily low pricing strategy which has led to decline in the operational income. In addition, the company should bring in weekly sales activities and in-store coupons to improve its sales trends and develop a more participatory, brand centric department. The company should also concentrate on production and presentation approaches in their warehouse format by removing the typical warehouse set up and establishing a new arrangement which will enable them to have many departmental shops.
In summary,...