August 19, 2013
2014 YMA FSF $5,000 Scholarship Case Study
Background
The landscape of retailing has changed dramatically in the last few years. More and more
retailers are aware that they must make changes and offer to their customers various formats
in marketing to them. The world of Omni Channel (Multi Channel) retailing is currently the
focus of most retail companies and as new technologies develop, retailing will continue to
change even faster. The consumer demands access to product 24/7. The retailer must be able
to meet these demands. The consumer wants to have access to products and services via their
smartphones, iPads, laptops etc. The shopping experience must be one that is entertaining and
seamless for the customer.
One of the retailers who has “lost“ its way is J.C. Penney. It made radical changes without
testing how it would affect their customer. As a result, it has lost a large share of the market.
In 2012, J.C. Penney, under the leadership of new CEO Ron Johnson who had run stores at
Apple, undertook a significant change in its pricing strategy. The new strategy eliminated
promotions and focused on selling recognized brands. Under the prior promotions-based
pricing strategy, prices were marked up so there would be room for promotional discounts. By
contrast, the new “Everyday” pricing strategy set prices lower, eliminating or reducing the need
for what used to be sale prices.
Now J.C. Penney is faced with changing (yet again) the direction it must take. Their goal is to
reinvent and rebuild the business. To succeed J.C. Penney must be ready to initiate new
platforms to gain a larger share of the market. How can they reach the new Millennial
customer?
The Objective:
This case study is about how J.C. Penney can capture and retain the Millennial customer. Make
sure you visit a J.C. Penney store in your area so that you can have a reference.
PART ONE: EVERYONE MUST ANSWER THE FOLLOWING QUESTIONS:
1) Develop a consumer profile for the Millennial customer. It should consist of
demographics, psychographics, geographics and attitudes. Why would this new
customer shop at J.C. Penney?
2) Do a SWOT analysis for this customer.
3) Develop a product line for the Millennial customer, either men’s, women’s, children’s,
home or accessories for spring/summer 2014. Discuss what type of products you would
develop for this consumer and why?
4) Develop a brand name and create a brand identity that will represent the Millennial
consumer and product category.
5) Develop a marketing plan to introduce the new line for the Millennial customer at J.C.
Penney. Include what type of new platforms you would use to entice this customer.
PART TWO: IF YOU ARE INTERESTED IN DOING THE BUSINESS PART: ANSWER THE FOLLOWING
QUESTIONS:
1) Based on the product you have decided on developing from Part One, create an
assortment plan for nine products or garments. Break it down by color, size, and
silhouette if applicable.
2) Do a competitive analysis. Discuss two other retailers who have developed a significant
business with the Millennial customer. Explain why this business model has worked.
Should J.C. Penney follow this model?
3) Develop a six-month plan using a sales plan of $2.5 million at retail. This plan should be
from February 2014 – July 2014.
4) How would you develop a visual presentation that will appeal to the new Millennial
customer at J.C. Penney? Explain.
5) Create an advertising campaign that J.C. Penney should use to attract the Millennial
customer? Be specific about your plan and what the budget would be to execute.
PART THREE: IF YOU ARE INTERESTED IN DOING THE DESIGN PART: ANSWER THE FOLLOWING
QUESTIONS:
1) Develop an inspiration board for the Millennial customer you are targeting to shop at
J.C. Penney.
2) Develop a hangtag and label for the product.
3) Design three color stories in the product category you have chosen, each containing
three looks (apparel or three products in home or accessories) for a total of nine
products or garments.
4) Each color story must contain four colors. Name the colors.
5) Develop three patterns within the three-color stories using any of the four colors.
PART FOUR: DIRECTIONS: EVERYONE MUST FOLLOW:
1)
2)
3)
4)
5)
6)
7)
8)
9)
All case studies must be 8 ½ by 11 inches.
All reports must be 1.5 spaced using Roman 12 font
Research must be cited and endnotes or footnotes must be included.
A bibliography must be included.
A title page with your name, school name and the title of the product.
Part One must be a maximum of 8 pages.
Part Two must be a maximum of 6 pages
Part Three must be a maximum of 6 pages
All Case Studies MUST not be over the maximum of 14 pages. THIS DOES NOT INCLUDE
ANY ENDNOTES, OR THE BIBLIOGRAPHY. If you go over the 14 pages you will
automatically be disqualified.
10) Spelling and grammar will count in the judging of this case study.