After going through the below case study , answer the above questions in a detailed manner

CASE STUDY

Answer should be detailed on

Instructions

9 QUESTIONS 1) Analyse the impact of J.C. Penny's radical makeover strategy under Ron Johnson, new CEO ,from strategic implications of Branding view point. 2) Examine the challenges faced and opportunities explored by JC Penny in integrated marketing mix activities to build its brand equity "Do Unto Others as You Would Have Other do Onto You" This is the JC Penney's "Golden Rule" JC Penney History 1902 Founded by James Cash Penney in Kemmerer, Wyoming 1973 Its highest peak with 2,053 stores 2011 Hired Ron Johnson as CEO, he created the Square and Fair pricing strategy 2016 1924 Became JC Penny Incorporated 1998 Launched an internet store Only 1,100 Stores . 11 Distribution Centers 5 region al warehouses 4 JCO.com fulfillment centers 4 furniture distribution centers Retail Industry JC Penney and the retail landscape was experiencing lower sales Lower sales due to: The change in store formats like: Free Standing Supercenters o Walmart & Target had garnered the lower end of the market o Macy's & Nordstrom's catering to the upwardly mobile middle class. Small Specialized Merchandise (Gap & J.Crew) M Large International Qothing retailers (ZARA) Increasing competition from online retailing JC Penney's Radical Makeover Forbes: "1C Penney the most interesting retail story of the year" In November 2011, Ron Johnson announced a radical repositioning of JC Penney's business and brand. "It's the most exciting thing I've seen in retail since Apple opened stores" Johnson declared it a reclamation of the company's heritage: "we need to treat customers fair and square" New Brand Spokesperson The announcement of comedian Ellen DeGeneres as the new brand spokesperson. "One of the most fun and vibrant people in entertainment today" ho DeGeneres homosexuality could be affecting the brand's image. Firestorm erupted on J.C. Penney's Facebook page. New Pricing Strategy Implemented EDLP similar to Walmart Old strategy of high/low pricing becoming too expensive and addictive Average discounts to get customers to buy went from 38% to 60% Too expensive for JC Penny's to sustain EVERY DAY MONTH VALUE BEST PRICE New Strategy to implement Every Day Low Pricing "Fair and Square" pricing strategy New Pricing Strategy Old strategy of high/low pricing becoming too expensive and addictive Implemented EDLP similar to Walmart EVERY DAY MONTH VALUE BEST PRICE New Strategy to implement Every Day Low Pricing "Fair and Square" pricing strategy Stop high/low pricing 1 Stop coupon offerings Stop daily/weekly/monthly sales Ban the word sale from selling vocabulary of the store Allows for customers to be free from waiting for specials and retailer from printing coupons New Pricing Strategy Old strategy of high/low pricing becoming too expensive and addictive Implemented EDLP similar ta Walmart EVERY DAY MONTH VALUE Consumers are savvy shoppers and are able to instantaneously compare prices . Will see benefits having the low price "all the time" compared to competitors Regain selling integrity of the Department Retail Store Wanted to regain brand value or perceived value Expected one year roll out to fully integrate EDLP BEST PRICE New Strategy to implement Every Day Low Pricing "Fair and Square" pricing strategy Fair and Square Results JCP decided not to run a market research to test the appeal of the new strategies with consumers. Launched new pricing plan on February 1st 2012 Ellen DeGeneres was featured in a new advertising campaign Consumers were confused (and disappointed) with new pricing scheme Fair and Square in Numbers DAN Stock price $163 million loss on JCP first earnings report Sales revenue fell 19% E-commerce decreased 28% Gross margin from 40.5% to 37.6% plunged 20% Net Income margin was negative: -5.2% h Exhibit 1 J.C. Penney's Stock Price under Ron Johnson (November 1, 2011-April 8, 2013) 1) Compare Mov. Avgs 11/01/2011 1D 3D 11 04/08/2013 Last Price Line 6M YTD 1Y SY Max Daily No Lower Chart Security/Study Event USD SE2 Exhibit 3 J.C. Penney's Operating Statistics Five-Year Operations Summary 2008 2009 2010 2011 2012 1,067 109.9 $160 1,093 111.7 $149 1,108 111.6 $153 1,106 111.2 $154 1,102 111.6 $116 Number of Stores Gross selling space (square feet in millions) Sales per gross square foot Capital Expenditures (in millions) Store renewals and updates (in millions) New and relocated stores (in millions) Other capital expenditures (in millions) Total capital expenditures (in millions) SG&A as a percent of sales $322 $460 $187 $969 $195 $163 $242 $600 $257 $25 $217 $499 $410 $33 $191 $634 $617 $63 $130 $810 29.2% 30.7% 30.2% 29.6% 34.7% Exhibit 4 Home Goods/Housewares as a Percentage of Total Sales 2007 2008 2009 2010 2011 2012 21 20 19 18 15 12 Percent of Sales J.C. Penney Macy's Kohl's Target 15 15 18 16 18 15 19 15 19 18 22 16 18 18 21 19 19 18 JC Penny's Fair & Square Strategy O O o Business analysis Strategic implications of branding viewpoint Challenges faced and opportunities explored O Before attempting the assessment have a clear understanding of the concepts like the New Product Development, Product Life Cycle and Brand Management before attempting the assignment, have a clear understanding of the concepts like brand equity , strategic implications of Branding, significance of branding and brand management process, business analysis and branding and positioning and Integrated marketing mix activities to build brand equity. MARKS ALLOCATION Criteria Points Understanding of the PBM concepts underlying each of the questions. 10 Application of PBM concepts to the assigned questions. 10 Application of the right PBM concepts to the problem statement in the questions. 10 Adherence to a proper structure while attempting the question or the presentation for cohesiveness between 10 sections of the answer/report/presentation. Points 40 a - You are required to submit a PDF file: o In this, you need to submit all the answers to all the questions in a sequential manner. It should include a detailed explanation of the approach used, insights, inferences, all outputs like graphs, tables, etc.(if any). o You will be evaluated based on the PDF. o The assessment should be O a maximum of up to 1500 words(+-10%, excluding tables, diagrams, infographics, and references if any) Referencing style: Harvard Referencing Style (refer: https://www.mendeley.com/guides/h arvard-citation-guide) o Font: Calibri, 12, single-spaced o Do mention the assumptions taken into consideration by you in the PDF file if any 1