Communication Styles of JC Penny v. Sears - Term Paper Example

? Communication Styles of JC Penny v. Sears Number Multichannel retailing involves selling merchandiseof services through multiple channels. JC Penny Corporation and Sears are some America’s leading multichannel retailers. These retailers use different communication styles to launch market and sell their products. These companies face stiff competition from their counterparts and are driven by the need to implement dynamic methods of maintaining their markets. Table of Contents 1.0Introduction 1.1Background of JC Penney 1.2 Background of Sears 2.0 Comparison of Communication Styles 2.1 Perceived audiences of each company 2.2 Websites 2.3 Press Releases 2.4 Advertisements 2.5 Public Relations/ Community Citizenship Activities 3.0 Conclusion 1.0INTRODUCTION: 1.1Background of J.C Penny J.C. Penny Company Inc. is one of the largest chains of American mid-range department stores, catalogue, and e-commerce retailers; with headquarters in Piano, Texas. It operates over 1, 100 departmental stores in U.S’s 50 states, Mexico, Chile and Puerto Rico (JC Penney 2012). It also runs 49 Renner department stores in Brazil. J.C. Penny began as a partnership between James Cash Penney, Guy Johnson and Thomas Callahan on April 14, 1902. The three created two more stores. In 1907, Johnson and Callahan dissolved their partnership and Penney purchased full interest in all three locations. In order to be closer to banks and railroads, Penney moved his company headquarters to Salt Lake City, Utah in 1909. The stores expanded and by 1912, there were 34 stores in Rocky Mountain States. The following year, all the stores were consolidated under the name J.C. Penney with William Henry McManus as co-founder. The company’s expansion was mainly due to its diversity of products and affordability. After much struggle in the 1970s, following stiff competition from upstart companies such as Wal-Mart that sold goods at discounted prices, the company reverted to a fashion oriented marketing strategy in the 1980s. It also moved its headquarters from New York to Texas, which reduced operational costs. The company was the first to sell zero coupon bonds in the public market. JCP stores are mainly located in suburban shopping malls, which is strategic in its operations. With about 1100 stores in America’s 50 states as well as Puerto Rico and Mexico, it is the second largest department store retailer and the largest catalogue merchant in the America. J.C Penny mainly targets juniors. The company focuses on value-priced fashion with an emphasis on classification and key-items focussed merchandising. JC Penney focuses on its pricing vis-a-vis its competition. Also, it focuses on providing mid-tier fashions in the malls. Its stores are located in attractive markets, that attract customers. It increasingly incorporating Sephora inside its locations, aimed at upgrading customers’ experiences in the stores. For the year ending January 2012, the company made sales totalling $17,260.0M and realized an annual growth of 2.8%; its net income for the year amounting to $152.0M (JC Penny 2012). 1.1 Background of Sears Holdings Corporation Sears Holdings Corporation is America’s fourth largest broad-line retailer with over 4,000 full-line and specialty retail stores in the U.S. and Canada. Its headquarters are based in Hoffman Estates, Ill. It became a multi channel store when it opened its first store to complement its catalogue channel which was launched in 1886 (Sears 2009). It provides quality merchandise and exceptional service, leading in retail of appliances, tools, lawn and garden, consumer electronics, and automotive repair and maintenance. The company provides diversified products through a wide range of retail channels. It was crowned the 2011 Energy Star Retail Partner of the year. Its leading brands are mKenmore, Craftsman and Diehard along with broad apparel offering including well known labels as Lands’ End, Jaclyn Smith and Jose Boxer, the Apostrophe and Covington brands. It is the country’s leading home service provider with over 11 million calls made annually. It operates through its subsidiaries which include Sears, Roebuck and Co. and Kmart Corporation. 3.0 Comparison of Communication Styles 3.1 Perceived audiences of each company J C Penney has a wide array of audience. However, its apparel line mainly targets the youth and the misses’ clients. J C Penney seems to have a better understanding on young customers, their experiences, satisfaction, and loyalty. On the other hand, Sears reaches a diverse group of audience. Its diverse range of products cut across a diverse market base. However, its apparel line entails brand names that mainly target upper class clientele. 2.2websites 2.2.1 JC Penney’s website The company’s website has a bright and exciting presentation that is appealing to customers. The website is interactive, professional and user friendly. It reflects the company’s broad range of products. It implies good use of red colour, which is the company’s theme colour. The website communicates a friendly tone. The font size is easy to read and the background creates a shopping mood. 2.2.2 Sears Website Sears lists the merchandise of each outlet store online. This makes it easy for clients to browse stock. www.sears.com has grown as a preferred shopping channel. The site has an improved customer interface that makes it user friendly. The site is also available at msn.ca, enabling customers to compare Sears Merchandise to other retailers. My Home, an online initiative by Sears won the Retail Council of Canada’s Excellence in Retailing Award in 2003 for retail technology. The graphics on the website produce visual variety. Also, it exhibits high quality photography which symbolizes high quality products. 2.3 Press releases (tone, timeliness) Both JC Penney and Sears provide timely and friendly press releases on key issues involving management, product launch, financial reports and company events. The press releases are unique to the culture and organization of each company. Generally, they are geared at realizing strategic advantage for the company. The press releases of each company are not easily detected or duplicated by competitors, which help to promote the uniqueness and peculiarity of each company. The press releases provide valuable information to customers and stakeholders regarding the development of the companies, providing greater opportunity for the companies to relay information that effectively target their marketing activities. 2.4 Advertisements 2.4.1 J.C. Penney’s Advertisements By focusing on juniors, JC Penney’s adverts call out for denim brands including mud. Focus is not laid on private label brands. JC Penney uses membership rewards loyalty programs to attract and maintain customers. It invested in online marketing at jcp.com, social media, mobile applications and FinmoreTM smart fixtures in stores. It explored new technology like the iPhone application and came up with a creative men’s style look book. It also offers quality range of sports apparel with its relationship with Dream, Inc. The company undertakes several multimedia marketing campaigns which incorporate billboards, street flags, window covering, banners, print and radio ads, celebrity events and specially designed shopping bags. The company established J.C. Penney Weekly Deals iPhone application which enables users to browse products, create shopping lists and find stores. Social media such as Facebook and Twitter are other great ways through which the company connects with its clients. It incorporates various exciting features that promote a unique shopping experience. J.C. Penney’s advertising strategies combine unique special events and promotions with social, mobile and traditional media. 2.4.2 Sears Advertisements Sears undertakes television and print advertising, emphasizing Sears as the destination. Its over reliance on the credit industry relatively weakens it. Sears has put strategic marketing and merchandising efforts behind its apparel by consolidating numerous private under Covington brand. It has a full line store designed from extensive consumer research that allows consumers to shop easily. Sears distributes its catalogues from Coast to Coast as a channel of advertising. The company’s corporate values aimed to make Sears a “Great place to Grow, Shop, Work and Invest.” 2.5 Public relations/ community citizenship activities. 2.5.2 J.C. Penney’s public relations/community citizenship activities. JC Penny’s vision is to be “America’s shopping destination for discovering great styles at compelling prices.” Its P.R is aimed at displaying an authoritative style and highlighting affordability especially among younger customers. In 2009, the company ranked no.1 for the second time in row in customer service among department stores in the American Express/National Retail Federation Customers’ Choice Survey. It has built a name for maintaining customer FIRST standards. It upholds a reputation for high quality and value. The company works at adding new brands that set it apart such as Cindy Crawford, She Said, Olsenboye, J. Ferrar , Allen B. and Liz Claiborne. These brands portray a message of a rewarding shopping experience. The Company has established its name as the growth leader in the industry, judging from its humble beginnings to the expansion of its on-line presence in order to catch up with changing market trends. J.C Penney cares about its communities and engages in activities aimed at improving the quality of life in homes and work places. As a way of contributing to the community, J.C. Penney gets involved in ‘giving back to the community’ activities. Associates in the company take part in volunteer programs. J.C. Penney also offers financial support to the United Way. It provides children with after school programs that help to build and nurture them, provide them health and human services. In addition, the company works with its associate program, “Just Caring People” to make individual contributions to enable better the society. 2.5.3 Sear’s Public Relations/Community citizenship activities. “Sears More Values” and “Sears Essentials” represents quality and affordability; and necessity. In 2003, Sears was ranked highest for good quality products and services in an independent survey by NFO CFgroup. The survey highlights Sears’s authority in the market. The company offers Craftsman, a leading brand for lawn, garden and power tools. In the same year, the Company re-launched its community investment program, Sears Young features geared at supporting organizations that provide after-school programs that motivate children and youth groups to identify and finds solutions to issues related to community safety. The Canadian Centre for Philanthropy listed Sears as a Caring Company. The company’s name and its brands are vital in marketing and maintaining a competitive edge in the market. 3.0 Conclusion J.C. Penney and Sears have mirrored each other in many ways. Both are some of the largest departmental stores, managing a large number of stock keeping units, interacting with diverse groups of people and experiencing tremendous operational complexities. The potential benefits these stores afford customers are greater than simply using multiple communication channels (Metters and Walton 2007; Agatz, Fleischmann, and van Nunen 2008). Both stores maximise usage of the internet which improves operational efficiency and pools a larger customer base. Retailers with the best financial performance are multichannel operators (Kilcourse and Rowen 2008). In addition, using multiple channels increases customer loyalty and satisfaction (Neslin and Shankar 2009). To beat competition and maintain a highly accorded reputation, the two companies constantly seek to merger technology with communication strategies. References Agatz, Niel A. H., Moritz Fleischmann, and Jo A. E. E. van Nunen (2008), “E-fulfillment and Multi-channel Distribution – A Review,” European Journal of Operations Research, 187, 339–356 Kilcourse, Brian and Steve Rowen (2008). Finding the Integrated Multi-Channel Retailer. Miami: Retail Systems Research. Metters, Richard and Steve Walton (2007), “Strategic Supply Chain Choices for Multi-Channel Internet Retailers,” Service Business, 1, 317-331 Neslin, Scott A., Dhruv Grewal, Robert Leghorn, Venkatesh Shankar, Marije L. Teerling, Jacquelyn S. Thomas, and Peter C. Verhoef (2006), “Challenges and Opportunities in Multichannel Management,” Journal of Service Research, 9 (2), 95-112. Sears (2009). A Narrative History of Sears. http://www.searsarchives.com/history/ accessed on April, 27, 2012. Read More