JC Penney's Rebranding Efforts- Hit or Miss?

by Rick McNeely

So what do you think of the new JC Penney's, or should I say JCP? There are many opinions creating buzz for the company. From the choice of signing comedian Ellen DeGeneres as a brand partner (I love it), a new logo to "everyday low prices" (well sort of), JC Penney is now JCP.

First of all, it's easy to criticize the efforts and there are a lot of skeptics saying that the move was a mistake, but let's look at the positive.  JC Penney has put together a great integrated campaign combining television, a heavy dose of direct mail and a nice looking online monthly brochure.  New Penney's CEO Ron Johnson (from Apple) has brought in a host of new partner ad agencies and a new pricing position geared at positioning the new JC Penney apart from its competition.  It was a much needed task to  breath life back into the dusty brand.

As I said, it was a needed change, but can the brand be saved?  It's great to change the mark, message and pricing, but is the brand delivering anything new or unique to the consumer on the Penney's sales floor?  After watching JC Penney through the Mother's Day season, it doesn't look like they are offering any new punch in the stores.  In other words, the consumer finds the same merchandise at Kohls, only priced in a more confusing manner.  I like the idea of "Everyday Low Pricing," and it's worked in the grocery industry, but can this pricing model be brought successfully to JC Penney's?

JC Penney's new "fair and square" pricing strategy is built around the premise that the consumer knows the fair price and if JCP prices its goods everyday at the fair price, she will buy.  Again, assuming the Penney's consumer only wants a fair price without the hassle of promotion (see the television ad below).  This is where I think the new positioning falls apart.  For example, JC Penney's offers similar or the same merchandise as many items at Kohls.  Kohl's runs an incredible number of promotions, coupons and gimmicks.  So here's Penney's bet, the consumer will run from Kohl's to Penney's for fair pricing and no shouting promotions.  However, the reality could very well be she doesn't want a fair price (and she is well aware Kohl's everyday prices are inflated), she wants a smoking hot, crazy deal.  She knows the fair price, but doesn't want to pay it.  She want's a deal.  (See blogger Lily's comments from 3/28/2012, below)

"Everybody knows regular prices are inflated; we didn't need JCP to tell us that!  This is why we don't buy anything unless it is on sale.  The problem with JCP's new pricing plan is that intelligent consumers realize the new "fair and square" prices are STILL inflated!  I can go to Kohls and buy a similar item on sale with a coupon for less than I can buy it a JC Penny."   Lily, blogger
                                                                                     

Time will tell if the new strategy works or if JC Penney's seriously missed their shoppers true motivations.