Description
Final Presentation on RottWeiler
jcp enney
REFRESH Consulting Group
Ariel Rios
Christina Tran
Evelyn Shao
Jessica Hendrawidjaja
Stephanie Whitman
To fully capture the young men’s
apparel market share in the United
States
GOAL
JCP
Challenge
Analysis Product Line Strategies Financials
JCPENNEY
Challenge Analysis Product Line Strategies Financials
Young
Target
Market
Creative
Clothing
Line
Exclusive
Branding
Effective
Marketing
Innovative
Advertising
JCPENNEY
To execute a strategic Long Range Plan that
involves customers, associates, and shareholders
CORE COMPETENCY : JCPENNEY BRAND
CURRENT ISSUE
MISSION: WINNING TOGETHER Principle
• Capturing the young men
target market
• Product awareness
• Competitions
POTENTIALS
• Innovative
advertising
• Creative product line
• Exclusive branding
Challenge Analysis Product Line Strategies Financials
TARGET MARKET PROFILE
BRYAN SMITH
• 33, Finance Manager at
Microsoft, WA
• USD 87,750/year
• Loyal subscriber of GQ
Magazines and Auto
• Interest: sports, car,
business and political
topics
Challenge Analysis Product Line Strategies Financials
BEHAVIOR
43% don’t look for clothes, but buy what
they stumble across that suits them
72% says “Style is important, I want them
to fit what I consider to be my style
41% thinks Italy has the best-dressed
men
Challenge Analysis Product Line Strategies Financials
BEHAVIOR
CAR (58%)
FITNESS (60%)
GADGET (70%)
Challenge Analysis Product Line Strategies Financials
TREND ANALYSIS
Less demand for
conspicuous logo
More long-lasting
& everyday staple
pieces
Challenge Analysis Product Line Strategies Financials
RE-INVENTED MARKET
Men of Generation Y
Classic to Modern
Work to Casual
Challenge Analysis Product Line Strategies Financials
SIGNATURE ITEM
“COMPLEMENT” SPORT COAT
Challenge Analysis Product Line Strategies Financials
PRODUCT LINE
• Color Swatch Embellishment
• Material to fit lifestyle of our man
• Pop of Color
• Versatile/Easily Mixed and
Matched
• Vintage Buttons
Challenge Analysis Product Line Strategies Financials
RE-INVENTED
Exclusive line
Mid-price positioning
Modern, stylish, contemporary
Challenge Analysis Product Line Strategies Financials
‘RE-INVENTED’ realizes that our brand is
the source of a promise to our consumer
BRANDING
• Deliver message clearly
• Confirm our credibility
• Connect with our target prospects emotionally
• Motivate the buyer
• Increase User Loyalty
Main Branding Objectives
Challenge Analysis Product Line Strategies Financials
RE-INVENTED BRANDING
Challenge Analysis Product Line Strategies Financials
Gain recognition in Men’s
publications: generate buzz
• Facebook & QR Code Application
Expand current market by
capturing a new target market
• Generation Y & Men, 25-35 years old
Leverage customer experience
Increase sales
• Convert prospect to loyal clients
VISUAL MERCHANDISING
• Placement:
Inside main entrance in
corner
• Adjacencies:
Levis and Dockers
• One Stop Shop
environment
• Giant QR Code on every
display
• Matching ideas
• Color options
Challenge Analysis Product Line Strategies Financials
SOCIAL MEDIA
Less demand for
conspicuous logo
Challenge Analysis Product Line Strategies Financials
MOBILE QR CODE
JCP Challenge Analysis Product Line Strategies Financials
MAGAZINES
MEDIA ADS
• Ideal audience
profile
- Age Group
- Annual Income
- Behavior/Interest
Challenge Analysis Product Line Strategies Financials
• 3 platforms of
advertisement:
Magazine, Website,
Mobile
PRICING
Challenge Analysis Product Line Strategies Financials
• Signature Sport Coat: $69.99
• Jacket: $69.99
• Sweaters: $39.99
STRATEGY: MARKET PRICE
PRODUCT PRICES
• T-Shirts: $19.99
• Briefcase: $59.99
“COMPLEMENT”
Sport Coat
JCP Profit Analysis
Test Production
Challenge Analysis Product Line Strategies Financials
Test Production .
Sales at Full Price $ 41,994.00
Sales at Discount Price $ 13,438.08
Total Gross Sales 55,432.08
COGS 25,840.60
Gross Margin $ 29,591.48
JCP Profit Analysis
Full Production
Challenge Analysis Product Line Strategies Financials
Full Production
Sales at Full Price 3,499,500.00 $
Sales at Discount Price 1,119,840.00
Total Gross Sales 4,619,340.00
COGS 2,153,383.04
Gross Margin 2,465,956.96 $
SPI Profit Analysis
Test and Full Production
Challenge Analysis Product Line Strategies Financials
“Complement” Sport Coat
.
Test Production $ 8,518.88
Full Production $ 709,906.50
ALTERNATIVE SCENARIOS
Challenge Analysis Product Line Strategies Financials
Best Case
Best Case
Sales at Full Price 4,899,300.00 $
Sales at Discount Price 559,920.00
Total Gross Sales 5,459,220.00
COGS 2,461,009.18
Contribution 2,998,210.82 $
Complement Sport Coat
Challenge Analysis Product Line Strategies Financials
Worst Case
Worst Case
Sales at Full Price 2,099,700.00 $
Sales at Discount Price 1,679,760.00
Total Gross Sales 3,779,460.00
COGS 1,845,756.89
Contribution 1,933,703.11 $
Complement Sport Coat
Challenge Analysis Product Line Strategies Financials
Break-Even Analysis
Full Production .
Break Even Units 43,953
Break Even Point 3,076,261.48 $
Complement Sport Coat
JCPENNEY
Young
Target
Market
Creative
Clothing
Line
Exclusive
Branding
Effective
Marketing
Innovative
Advertising
thank
you
questions?
APPENDIX
Presentations
Goal
JCPenney Challenge
Analysis
JCPenney Analysis
Target Market Profile
Target Market Behavior
Target Market Behavior(cont.)
Trend Analysis
RE-INVENTED
MARKET
Signature Item
Product Line
RE-INVENTED
Strategies
Branding
RE-INVENTED BRANDING
Visual Merchandising
Social Media
QR Code
Media Ads
Financials
Pricing
Financial - Sport Coat
Alternative Scenarios
Appendix
Analysis
Market Segmentation
Market Segmentation Profile
Market Segmentation Geographic
Financials
Entire Line
Alternative Scenarios - Full Line
MARKET SEGMENTATION
Retail Industry
MARKET SEGMENTATION
Retail Industry
Consumer aged under 25
This market segment holds 20% of the overall market share which is valued as $38.34 billion.
Customer Profile Teenagers or young adults
Income Limited disposable income
Shopping Behavior More likely to shop in smaller niche stores that offer the latest fashion
products
Consumers aged 25 to 40
This market segment holds 35% of the overall market share which is valued as $67.095 billion.
Customer Profile Employed individuals, sometimes with children
Income Steady income
Shopping Behavior ? Has the ability to shop for a range of goods under one store
? Those with children are also able to purchase goods at competitive price
? The quality of the good is more important to consumers as opposed to its
label
Consumers aged 41 to 65
This market segment holds 30% of the overall market share which is valued as $57.51 billion.
Customer Profile Key buyers of department store merchandise
Income Higher disposable income
Shopping Behavior ? Buy for their grandchildren as they have generally accumulated sufficient
goods for themselves
? Tends to purchase higher-tier merchandise for themselves and their
family
Consumers aged over 65
This market segment holds 15% of the overall market share which is valued as $28.76 billion.
Customer Profile Retiree
Income Reduced disposable income stream
Shopping Behavior Reduced demand for goods sold by the industry
MARKET SEGMENTATION
GEOGRAPHICS
RE-INVENTED
LINE DETAILS
ENTIRE LINE
JCP Profit Analysis
Test Production
Challenge Analysis Product Line Strategies Financials
Test Production .
Sales at Full Price 170,961.50 $
Sales at Discount Price 54,707.68
Total Gross Sales 225,669.18
COGS 97,184.60
Gross Margin 128,484.58 $
JCP Profit Analysis
Full Production
Challenge Analysis Product Line Strategies Financials
Full Production
Sales at Full Price 14,496,750.00 $
Sales at Discount Price 4,638,960.00
Total Gross Sales 19,135,710.00
COGS 8,250,383.04
Gross Margin 10,885,326.96 $
SPI Profit Analysis
Test and Full Production
Challenge Analysis Product Line Strategies Financials
Entire Line
. .
Test Production $ 32,038.88
Full Production $ 2,719,906.50
ALTERNATIVE SCENARIOS
FULL LINE
Challenge Analysis Product Line Strategies Financials
Best Case
Entire Line
Best Case
Sales at Full Price $ 20,295,450.00
Sales at Discount Price 2,319,480.00
Total Gross Sales 22,614,930.00
COGS 9,429,009.18
Contribution $ 13,185,920.82
Challenge Analysis Product Line Strategies Financials
Worst Case
Worst Case
Sales at Full Price 8,698,050.00 $
Sales at Discount Price 6,958,440.00
Total Gross Sales 15,656,490.00
COGS 7,071,756.89
Contribution 8,584,733.11 $
Challenge Analysis Product Line Strategies Financials
Break-Even Analysis
Style # Item Units Bought Cost Total Cost
Break Even
Units
# of stores
Avg Units
per Store
RO5-SCC Sport Coat
100,000 $ 30.76 $ 3,076,261.48 43,953 1,108 90
RO5-JKK Outerwear Jacket
100,000 26.00 2,600,000.00 37,148 1,108 90
RO5-SSI Sweater
100,000 15.60 1,560,000.00 39,010 1,108 90
RO5-CGS Cardigan
100,000 19.50 1,950,000.00 48,762 1,108 90
RO5-TSS T-Shirt 1
100,000 6.50
650,000.00 32,516 1,108 90
RO5-TSG T-Shirt 2
100,000 6.50
650,000.00 32,516 1,108 90
RO5-BCA Briefcase
50,000 26.00 1,300,000.00 21,670 1,108 45
doc_644473256.pptx
Final Presentation on RottWeiler
jcp enney
REFRESH Consulting Group
Ariel Rios
Christina Tran
Evelyn Shao
Jessica Hendrawidjaja
Stephanie Whitman
To fully capture the young men’s
apparel market share in the United
States
GOAL
JCP
Challenge
Analysis Product Line Strategies Financials
JCPENNEY
Challenge Analysis Product Line Strategies Financials
Young
Target
Market
Creative
Clothing
Line
Exclusive
Branding
Effective
Marketing
Innovative
Advertising
JCPENNEY
To execute a strategic Long Range Plan that
involves customers, associates, and shareholders
CORE COMPETENCY : JCPENNEY BRAND
CURRENT ISSUE
MISSION: WINNING TOGETHER Principle
• Capturing the young men
target market
• Product awareness
• Competitions
POTENTIALS
• Innovative
advertising
• Creative product line
• Exclusive branding
Challenge Analysis Product Line Strategies Financials
TARGET MARKET PROFILE
BRYAN SMITH
• 33, Finance Manager at
Microsoft, WA
• USD 87,750/year
• Loyal subscriber of GQ
Magazines and Auto
• Interest: sports, car,
business and political
topics
Challenge Analysis Product Line Strategies Financials
BEHAVIOR
43% don’t look for clothes, but buy what
they stumble across that suits them
72% says “Style is important, I want them
to fit what I consider to be my style
41% thinks Italy has the best-dressed
men
Challenge Analysis Product Line Strategies Financials
BEHAVIOR
CAR (58%)
FITNESS (60%)
GADGET (70%)
Challenge Analysis Product Line Strategies Financials
TREND ANALYSIS
Less demand for
conspicuous logo
More long-lasting
& everyday staple
pieces
Challenge Analysis Product Line Strategies Financials
RE-INVENTED MARKET
Men of Generation Y
Classic to Modern
Work to Casual
Challenge Analysis Product Line Strategies Financials
SIGNATURE ITEM
“COMPLEMENT” SPORT COAT
Challenge Analysis Product Line Strategies Financials
PRODUCT LINE
• Color Swatch Embellishment
• Material to fit lifestyle of our man
• Pop of Color
• Versatile/Easily Mixed and
Matched
• Vintage Buttons
Challenge Analysis Product Line Strategies Financials
RE-INVENTED
Exclusive line
Mid-price positioning
Modern, stylish, contemporary
Challenge Analysis Product Line Strategies Financials
‘RE-INVENTED’ realizes that our brand is
the source of a promise to our consumer
BRANDING
• Deliver message clearly
• Confirm our credibility
• Connect with our target prospects emotionally
• Motivate the buyer
• Increase User Loyalty
Main Branding Objectives
Challenge Analysis Product Line Strategies Financials
RE-INVENTED BRANDING
Challenge Analysis Product Line Strategies Financials
Gain recognition in Men’s
publications: generate buzz
• Facebook & QR Code Application
Expand current market by
capturing a new target market
• Generation Y & Men, 25-35 years old
Leverage customer experience
Increase sales
• Convert prospect to loyal clients
VISUAL MERCHANDISING
• Placement:
Inside main entrance in
corner
• Adjacencies:
Levis and Dockers
• One Stop Shop
environment
• Giant QR Code on every
display
• Matching ideas
• Color options
Challenge Analysis Product Line Strategies Financials
SOCIAL MEDIA
Less demand for
conspicuous logo
Challenge Analysis Product Line Strategies Financials
MOBILE QR CODE
JCP Challenge Analysis Product Line Strategies Financials
MAGAZINES
MEDIA ADS
• Ideal audience
profile
- Age Group
- Annual Income
- Behavior/Interest
Challenge Analysis Product Line Strategies Financials
• 3 platforms of
advertisement:
Magazine, Website,
Mobile
PRICING
Challenge Analysis Product Line Strategies Financials
• Signature Sport Coat: $69.99
• Jacket: $69.99
• Sweaters: $39.99
STRATEGY: MARKET PRICE
PRODUCT PRICES
• T-Shirts: $19.99
• Briefcase: $59.99
“COMPLEMENT”
Sport Coat
JCP Profit Analysis
Test Production
Challenge Analysis Product Line Strategies Financials
Test Production .
Sales at Full Price $ 41,994.00
Sales at Discount Price $ 13,438.08
Total Gross Sales 55,432.08
COGS 25,840.60
Gross Margin $ 29,591.48
JCP Profit Analysis
Full Production
Challenge Analysis Product Line Strategies Financials
Full Production
Sales at Full Price 3,499,500.00 $
Sales at Discount Price 1,119,840.00
Total Gross Sales 4,619,340.00
COGS 2,153,383.04
Gross Margin 2,465,956.96 $
SPI Profit Analysis
Test and Full Production
Challenge Analysis Product Line Strategies Financials
“Complement” Sport Coat
.
Test Production $ 8,518.88
Full Production $ 709,906.50
ALTERNATIVE SCENARIOS
Challenge Analysis Product Line Strategies Financials
Best Case
Best Case
Sales at Full Price 4,899,300.00 $
Sales at Discount Price 559,920.00
Total Gross Sales 5,459,220.00
COGS 2,461,009.18
Contribution 2,998,210.82 $
Complement Sport Coat
Challenge Analysis Product Line Strategies Financials
Worst Case
Worst Case
Sales at Full Price 2,099,700.00 $
Sales at Discount Price 1,679,760.00
Total Gross Sales 3,779,460.00
COGS 1,845,756.89
Contribution 1,933,703.11 $
Complement Sport Coat
Challenge Analysis Product Line Strategies Financials
Break-Even Analysis
Full Production .
Break Even Units 43,953
Break Even Point 3,076,261.48 $
Complement Sport Coat
JCPENNEY
Young
Target
Market
Creative
Clothing
Line
Exclusive
Branding
Effective
Marketing
Innovative
Advertising
thank
you
questions?
APPENDIX
Presentations
Goal
JCPenney Challenge
Analysis
JCPenney Analysis
Target Market Profile
Target Market Behavior
Target Market Behavior(cont.)
Trend Analysis
RE-INVENTED
MARKET
Signature Item
Product Line
RE-INVENTED
Strategies
Branding
RE-INVENTED BRANDING
Visual Merchandising
Social Media
QR Code
Media Ads
Financials
Pricing
Financial - Sport Coat
Alternative Scenarios
Appendix
Analysis
Market Segmentation
Market Segmentation Profile
Market Segmentation Geographic
Financials
Entire Line
Alternative Scenarios - Full Line
MARKET SEGMENTATION
Retail Industry
MARKET SEGMENTATION
Retail Industry
Consumer aged under 25
This market segment holds 20% of the overall market share which is valued as $38.34 billion.
Customer Profile Teenagers or young adults
Income Limited disposable income
Shopping Behavior More likely to shop in smaller niche stores that offer the latest fashion
products
Consumers aged 25 to 40
This market segment holds 35% of the overall market share which is valued as $67.095 billion.
Customer Profile Employed individuals, sometimes with children
Income Steady income
Shopping Behavior ? Has the ability to shop for a range of goods under one store
? Those with children are also able to purchase goods at competitive price
? The quality of the good is more important to consumers as opposed to its
label
Consumers aged 41 to 65
This market segment holds 30% of the overall market share which is valued as $57.51 billion.
Customer Profile Key buyers of department store merchandise
Income Higher disposable income
Shopping Behavior ? Buy for their grandchildren as they have generally accumulated sufficient
goods for themselves
? Tends to purchase higher-tier merchandise for themselves and their
family
Consumers aged over 65
This market segment holds 15% of the overall market share which is valued as $28.76 billion.
Customer Profile Retiree
Income Reduced disposable income stream
Shopping Behavior Reduced demand for goods sold by the industry
MARKET SEGMENTATION
GEOGRAPHICS
RE-INVENTED
LINE DETAILS
ENTIRE LINE
JCP Profit Analysis
Test Production
Challenge Analysis Product Line Strategies Financials
Test Production .
Sales at Full Price 170,961.50 $
Sales at Discount Price 54,707.68
Total Gross Sales 225,669.18
COGS 97,184.60
Gross Margin 128,484.58 $
JCP Profit Analysis
Full Production
Challenge Analysis Product Line Strategies Financials
Full Production
Sales at Full Price 14,496,750.00 $
Sales at Discount Price 4,638,960.00
Total Gross Sales 19,135,710.00
COGS 8,250,383.04
Gross Margin 10,885,326.96 $
SPI Profit Analysis
Test and Full Production
Challenge Analysis Product Line Strategies Financials
Entire Line
. .
Test Production $ 32,038.88
Full Production $ 2,719,906.50
ALTERNATIVE SCENARIOS
FULL LINE
Challenge Analysis Product Line Strategies Financials
Best Case
Entire Line
Best Case
Sales at Full Price $ 20,295,450.00
Sales at Discount Price 2,319,480.00
Total Gross Sales 22,614,930.00
COGS 9,429,009.18
Contribution $ 13,185,920.82
Challenge Analysis Product Line Strategies Financials
Worst Case
Worst Case
Sales at Full Price 8,698,050.00 $
Sales at Discount Price 6,958,440.00
Total Gross Sales 15,656,490.00
COGS 7,071,756.89
Contribution 8,584,733.11 $
Challenge Analysis Product Line Strategies Financials
Break-Even Analysis
Style # Item Units Bought Cost Total Cost
Break Even
Units
# of stores
Avg Units
per Store
RO5-SCC Sport Coat
100,000 $ 30.76 $ 3,076,261.48 43,953 1,108 90
RO5-JKK Outerwear Jacket
100,000 26.00 2,600,000.00 37,148 1,108 90
RO5-SSI Sweater
100,000 15.60 1,560,000.00 39,010 1,108 90
RO5-CGS Cardigan
100,000 19.50 1,950,000.00 48,762 1,108 90
RO5-TSS T-Shirt 1
100,000 6.50
650,000.00 32,516 1,108 90
RO5-TSG T-Shirt 2
100,000 6.50
650,000.00 32,516 1,108 90
RO5-BCA Briefcase
50,000 26.00 1,300,000.00 21,670 1,108 45
doc_644473256.pptx