In using this latest YOU Tube video, J.C. Penney ($JCP) doesn’t sound desperate–THEY ARE DESPERATE. And no, it wont work.
Seriously, Ron Johnson should have lead with this apology and then rolled out the new ad campaign and it may have had a chance in hell. Now it just looks like a desperate last gasp for air. This company cannot get out of its own way. The Langer Research Group published a survey this week on JCP basically showing the’ve lost 1/5 of their customer base… and those customers aren’t coming back.
The funny thing about consumers is that their memory is short. Now, Johnson & Johnson is the Gold Standard for apologizing early and often (with the Tylenol debacle). However, here no one is losing life… a great american heritage brand simply dropped the ball and quit innovating. JCP is basically the KODAK of retail at this point. Problem is, there is nothing for consumers to come back TO. This consumer has already traded down to Kohl’s ($KSS), T.J. Maxx ($TJX), Wal-Mart ($WMT), etc. There is no unique selling proposition at JCP.
Yes… customers (especially JCP customers) love a deal. But the deal has to be on product they WANT. JCP allowed their stores and brands to become tired and lackluster. Plenty of substitutes out there at the retail level for what they provide.
The lesson is stay relevant to your consumer. Provide a constant dialogue with them. Provide value and newness and brands and products they actually want. JCP is now going the way of Gimbels. The real estate is worth more than the brand equity at this point.
Smart companies are listening to their consumers-via social media–in real time. $WMT actually had their entire marketing team on Black Friday sitting in front of lap tops answering customers questions and comments in REAL TIME. In the new world of the 24 hour news cycle and social media, bad experiences can impact a retailer exponentially if not dealt with swiftly and in realtime.
