Vision: January 2012 |
...And no one wants a Penney.
At least that’s what performance under Ron Johnson’s regime
would lead you to believe.
Released late February, Holiday/Q4 sales reports closed the books on the first operating year of a turnaround strategy that failed to take hold. In 2012, JCP amassed nearly a billion dollars in losses with revenue tumbling nearly 25 percent.
We weighed in on JCP’s
new logo and their controversial pro-gay Father’s Day creative last year, so we’d be remiss not
to comment on the changing of the guard.
Johnson Out, Ullman
(back) in.
Johnson, a former star executive from both Apple and Target landed at JCP with such promise; now, ousted from his post
as CEO after just 16 months. In a true “Leno 2.0” Tonight Show fashion, the board brought back Mike Ullman, a man who
held the post for 7 unimpressive years leading up to Johnson’s arrival in late
2011.
Was it too soon?
Absolutely.
Erratic decision making is the mark of a [brand] in distress.
You can have empathy for JCP’s plight; it’s easy to play “wait and see” when you’re not already fighting for survival.
As marketing professionals, we have a heightened sense of
awareness for the idiosyncrasies of branding. But surely the general public can
note there’s been something fresh and new with regards to the last twelve
months at JCP.
Pricing – Weekly category promotions and erratic couponing were
ousted in favor of everyday low pricing and simple sales.
Creatively speaking – There’s a new energy and spice in their
fast-paced, musical TV spots; there’s a great vibrancy and flavor to their print
ads and store fliers.
Looking in-store – Muddled cream subbed for bold white and crowded homogenous blocks of racks swapped for new “store within a store” boutique brands.
Looking in-store – Muddled cream subbed for bold white and crowded homogenous blocks of racks swapped for new “store within a store” boutique brands.
While the changes made might not have resonated with legacy
shoppers, it was by design. Far too reliant on an aging population, Johnson’s
JCP was meant to woo a new generation of buyers. And his leadership was pulled
before the aura of the transformation had a chance to deliver new demo dollars.
Attention, Interest, Desire, Conviction, Close – remember the Sales Cycle from
Marketing 101? Well, it takes time to work its magic. Johnson’s changes definitely secured attention and interest; maybe a bit of desire as well. But
conviction and close didn’t come fast enough for the board.
Fool JCP once, shame
on you. Fool JCP twice, shame on JCP.
What new vision does Ullman bring this go-around and what
magic could it work over Johnson’s vision that would finally move JCP off
life-support?
Is his (re-)post
interim or permanent? Is the goal to win back legacy loyalists? Continue to
rattle new, younger demos? Or, is it a mixture of both and a way to merely slow
the pace of change?
Neither reign delivered dollars but at least Johnson’s JCP
had personality and character. The brand felt alive once again. Although not part
of Ullman’s vision, he’d be a fool not to carry the bulk of the new features
forward.
The story isn’t over, but this marketing cynic is skeptical
we’ll find a happy ending.
To be continued...
No comments:
Post a Comment