It has appeared over the last couple of years that the folks at Penney were concerned that there were no recent case studies on how to screw up a brand so they have worked diligently to provide fresh material. Most recently, after firing Ron Johnson their “saviour” CEO, they hired back the previous CEO that Johnson replaced. (Really it’s a choice only between just these two guys? No one else with talent out there? #Bush-or-Kerry?)
A fortnight ago they released an apology ad. Oh golly…what underground bunker are these chaps working from? And now just two weeks later they pull that ad from all sources and have started running a “thank you for coming back” ad. I couldn’t make this stuff up! Really, in two weeks we all came back? Wow.
For Penney they have two choices: the Target route which Johnson was trying to put them on but takes patience, an ability to bleed profusely in the short-to-mid-term and a better branding/advertising/sales strategy.
Or just be like Macy’s. Macy’s is a profit machine. What they are doing is not rocket science. Plus the Macy’s strategy is not unassailable. Going the “constant sales” route bonds customers to the deals not the brand which makes them vulnerable. Unlike Target, no one thinks of themselves as a “Macy’s gal”. But veering (lumbering) from one huge strategic commitment to another is confusing to customers, morale sucking to employees and evaporative to profits. I hear a sound in the distance like a giant toilet flushing…
BE SOMEONE. CHOOSE WELL. STICK TO IT. Or start writing copy for your next apology ad. And start looking at resumes for your next CEO. Hey, I hear Ron Johnson is available.
— Simon Dixon, Idea Engineering, CEO