Establishing a presence in the retail market amid all the rising competition is easy, but bringing in the sales is what really determines the level of success that a business will have once the numbers are in. Consumers have to actually want what you are selling. The demand has to be there, to build the type of loyalty that actually encourages repeat business.
JC Penney is going through a major transition at many of their locations, as a shift to a new business model happens during remodeling efforts that will showcase brands positioned in their own little boutiques within the JC Penney Department Store.
It is a great idea that represents one of the components of Ron Johnson's plan to bring in higher profits and improve the bottom line of JC Penneny, a well known Department Store. The recent reports that show decreased interest and sales at JC Penney is only a realistic reflection of the up and down shift that happens in retail all the time. The company will redeem itself in no time, especially, if the focus stays on more individualized branding with good price points.
Individualization does not only mean separating a brand to create more personalized shopping for loyal customers. More than that is required to close sales within departments. Loyal customers want more personalization using goodies like samples and product events that exclusively showcase their favorite products. Events like that give customers something to look forward to and something to remember. The burden of responsibility to carry out such programs does not fall solely on the shoulders of the CEO's either, this is where brand creators, brand ambassadors, and sales representatives come into the picture to execute their role and help the real deals turn into dollar signs. Brand creators should not skimp on the inclusion of samples, training, and special programs or rewards in order to cut cost either. That way, there are adequate materials available to serve as a reminder to employees handling products and customers actually making purchases. Oh, and let's not forget the potential to turn your sales representatives into loyal customers too. Everyone is fair game when numbers are involved. Ron Johnson is not in this alone, and there is still a lot of interest and value there for JC Penney. For now, this is just the way it has to look until the true plan comes together.
Individualized branding within JC Penney is not the only change being implemented in the fresh and new JCP business model. The company is also attempting to win over the coupon dependent consumer who believes that their bargains are tied to paper cut outs. Ron Johnson wants consumers to know that prices on their favorite brands are being created to reveal everyday low prices which do not require a coupon. Another bonus for consumers is the new Huge Touch Screens located inside the store which can be used for product searches, ordering and actual checkout. In the end, Ron Johnson's plan will open the door to approximately 100 brands, and the success of the JC Penney venture will rest on everyone from the office of the CEO, all the way to the sales floor of each JC Penney location.
In : Executive Minds
Tags: jcpenney sales ron johnson
comments powered by Disqus