J.C. Penney Company. JC Penney. JCP. Which one is it?
It’s not uncommon for companies to go through some form of rebrand or refresh in their lifetime. However, for former retail front man JC Penney, the three rebranding attempts in three years didn’t go as smoothly as one would hope. Rebranding can be extremely beneficial if done correctly, but in JC Penney’s case, it went terribly wrong. As fresh produce marketers, our reality often presents the need for a rebrand of a product and/or our business. Based on lessons from JC Penney’s fiasco, we’ve outlined three things to keep in mind if you find yourself faced with this marketing task.
Consistent Communication
Communication is key, especially when you are involving hundreds of thousands of your customers. JC Penney created an extremely ambitious rebranding strategy led by Target’s Michael Francis, who made cheap-chic look cool. Valiant efforts were made to generate excitement for the facelift JC Penney was about to receive. Then things went sour when JCP rolled out new product lines, displays, messaging and a logo that seemed to be polar opposite of what was promised. The anticipation overpowered the luster of the actual rebrand.
Take Away: Make sure you have consistent communication within your company, industry and most importantly your customers about changes on the horizon.
Importance of Buyer Personas
Millions of dollars are spent each year on customer behavior research and the development of buyer personas. JCP seemed to disregard the insights about their current customers, which was a costly decision to make. The original JC Penney customer sought value instead of the overpriced fashions that graced the cover of Vogue and Instyle Magazine. Their customer’s best interests seemed to be pushed to the back burner as rebranding goals were believed to be based on the feelings of the top management, instead of their customers’.
Take Away: Buyer personas provide the necessary insights that should guide our marketing strategies and business decisions. If you are not leading with your customers in mind, where are you heading?
Lack of Patience
Three rebranding attempts, three different CEOs, three years. This drastic turnover of JC Penney’s top leadership has caused discontinuity among the organization. The ambitious rebranding strategy created by Michael Francis was carried out by Ron Johnson and currently Mike Ullman all in 18 months. This is less than each of Francis’ and Johnson’s term of employment. We understand the thought aspirations behind the decisions of JCP: “Let’s bring in two of the brightest minds in the retail industry, one from Target and one from Apple; that will work!” Until it didn’t.
Take Away: Patience is a virtue. If you are in a hole, it usually takes double the time to dig back out to where you started.
Whether going through a full rebrand or just a company refresh, your business is at the mercy of your customers. JC Penney has seen major financial hits due to their marketing decisions. Will they be able to recover one day? That is for the customer to decide, and it seems their fiasco isn’t over yet. So let’s learn from the ups and downs of JC Penney. Keep clear communication with those involved in your business, including your customers, know who you are selling to, and sometimes you just have to be patient.
