J.C. Penney’s Re-Marketing Plan |
Did the company wait too long and make too fast decisions in re-marketing its brand? |
Aaron Dritz |
According to Forbes Magazine, in 2013, roughly 540,000 new businesses are started each month. Sadly, in most cases more businesses will end up being shut down in the same time frame (1 Nazar). In order to be the small 1/3 who will remain in business for 15 or more years, it is critical that the business have the successful tools to continue being profitable.
In any business, whether it be new or old, it is critical for the business to have a marketing plan that is always being re-structured to stay ahead of the competitors and ...view middle of the document...
Even Ron Johnson, CEO of the large retailer, said that retailing is “… hard and that’s what Steve [Jobs] said to me when we started stores at Apple (243 Peter and Donnelly).” This is where we can start to see the evolving sign of the start of Penney’s conducting quantitative research into better branding and marketing of the company.
Quantitative research method is more of procedural practice in taking and analyzing certain data. One of the most common methods is the Observation method; the process of simply watching a certain group of people and taking notes on their actions and thoughts that would be relevant to the business conducting the research. In the case of Penney’s, facing a 163 million dollar loss in the first quarter of 2012, they knew that they were losing a lot of business; specifically to other competitor’s stores as the number of customers shopping during the quarter was down 10 percent (Peter and Donnelly 243).
The observation was now critical in doing research into shoppers at other similar retailers to figure out what the customer’s enjoyed more there over J.C. Penney’s and what the company was missing in their marketing plan that drew customers to the competitors. This helped into leading the company into its “Fair and Square” pricing strategy that first began with offering large sales as deep as 50 percent off in order to compete with the competition’s very aggressive promotions in stores.
It is also with this new pricing model that the company had to conduct a fair amount experimental research. Experimental research involves sort of testing a new marketing plan or any idea in a controlled setting with the target market to see how it would work with all variables accounted for (57 Peter and Donnelly). Thus, just being purely experimental, it could be tough to conduct this kind of quantitative research in its true natural setting. That’s why it proved to be so risky with its new process in 2011. While the company did see a short spike in revenue and business generated, it shortly came to a head in 2012 (243).
While a lot of quantitative research was done by the company into its new “Fair and Square” pricing strategy, there was a large amount of qualitative research done. The different between both types of research is that qualitative are more in person types of data collection compared to “tests” or procedures of quantitative method (57). In the case of J.C. Penney’s, they had to sit and have several kinds of qualitative research done; such as focus groups and interviews with first its shareholders, board members and other critical departments of the company to determine what the problem was that lead to the company losing money and possible ideas and plans to bring into the company to make them on top again.
In the case of J.C. Penney’s, it is important to also determine what data to use in conducting marketing research methods. There are two possible...