August 6, 2013
Will a New Marketing SVP Help Bring Penney Back?
When Myron "Mike" Ullman was brought back to lead J.C. Penney as CEO for a second time, he also found himself having to fill key positions as executives handpicked by former CEO Ron Johnson left the company. Yesterday, one of those positions was filled as Penney named Debra Berman, the former vice president, marketing strategy and engagement at Kraft Foods, as its new senior vice president of marketing.
"There is huge opportunity to remind America’s families why it is so great to shop at J.C. Penney while attracting new customers to the brand," said Ms. Berman, in a statement. "This can be achieved through targeted campaigns that creatively highlight our unique and authentic combination of style, quality and value."
Mr. Ullman called Ms. Berman’s decision to join Penney, "A testament to our brand and its potential." He said he expected Ms. Berman’s experience as a marketing strategist to help the chain "reconnect" with its core customers and "increase excitement and loyalty now and over the long term."
Deborah Weinswig, an analyst at Citi Research, was among Penney watchers who thought the company was being hurt with key executive positions left open, according to an Associated Press report.
In a note written last week, Ms. Weinswig, according to the AP, said Penney was "operating with a ‘Swiss cheese’ executive team." She also wrote, "We do not think it is realistic to expect business to improve without a full management team and turnaround plan in place."
BrainTrust
Recent Discussions
Discussion Questions
What type of effect do you expect Debra Berman to have on Penney’s marketing efforts? What advice would you offer her if you had her ear?
Poll
It all depends on how free she is to do her job and how much time they are prepared to invest in a new marketing plan before hitting the panic button again.
My advice for Ms. Berman? Keep your resume up-to-date, you might need it soon.
The JCP hire is similar to a recent move by Kohl’s, in which it brought in a senior executive from Starbucks to tackle its marketing and omnichannel strategies. Both stores are trying to think outside the box of traditional retail backgrounds, and this could turn out to be a smart move for JCP. Without knowing anything about Debra Berman’s track record or skill set, I see her having an opportunity to make JCP marketing more about the brand and less about price…and likewise with the store’s loyalty program. The key is for JCP to let her be a change agent, if that’s why she was hired.
Debra brings a focus on consumers which is really needed. By choosing a direction and image, by getting management to buy into the same vision that resonates with consumers, and by getting the team to work together, Penney’s marketing efforts could make a significant difference. However, the switch needs to happen quickly and be customer focused.
I have to confess that I’m baffled by the JCP saga. When offered lower-than-low prices and spectacular merchandise (and, it must be noted, a strange ad campaign), customers bolted. I wish Ms. Berman the best of luck in divining what kind of price increases and “discounts” will appeal to Penney’s customer base.
Welcome to an amazing challenge Ms. Berman! You have inherited a fractured brand that has scrambled to find its place and identity. If brand is defined as a promise kept, then JCPenney lost its brand identity.
As the new SVP of Marketing, your challenge is to pick up the banner and forge ahead. The easy and safe approach would be to revert back to ‘old school’ retailing methods and practices. Safe and easy in that the Board of Directors would find it comfortable. The more challenging and correct approach is to move forward—recognizing that we live and shop in a digital landscape where your shoppers and customers are taking control of who, what, where, when, and how brands of their choosing communicate with them through channels of their choice. That is the reality and new status quo. Shoppers have come to expect it.
The challenge is tp design and activate brand communication that provides relevant, personal and consistent brand communication through ALL of your marketing communication channels. Being able to tell stories that emotionally connect while also providing integrity and rebuilding trust, to all of your shoppers across and through all of those available digital channels will allow JCPenney to redefine their place and the brand.
My advice: Don’t over-correct. Impressive denim bars, a lovely home section, Martha pantry products…there is a lot to love about JCP’s early-stage renovations and it didn’t come cheap. Hopefully Ms. Berman will get behind these initiatives (please, no more apologies) and do them proud with innovative marketing pieces that don’t just focus on price.
Recent major missteps by JCP indicate that their board of directors and its top management have been too starry-eyed in their key strategic hires.
Debra Berman may be a miracle worker for JCP, but as the insightful futurist Ryan Mathews advises Debra Berman above … keep your resume current.
Operating with a Swiss Cheese executive team — that’s a good reason to hire someone from Kraft. But seriously folks, as one who made a very bad career decision myself many years ago, I hope that “former Kraft” means she was unemployed and looking for a “new opportunity” and did not leave battleship Kraft for Titanic JCP.
CPG is very different from retail. In mall based, department store retail, marketing folks sit second chair. They don’t own a P&L. Marketing sells what merchants buy/own and they drive traffic to stores that operators run. And now there is the CIO. Debra has to sort, build out and protect her unique position among these colleagues. She needs to create a strong partnership with the CEO by supplying Ullman with ideas he will support, fund, and protect. While all in the executive cadre will assert their marketing expertise; Ullman MUST provide air cover. And then she needs to live and breath the calendar.
Then on day 2…
Or as we like to say, “retail ain’t for sissies.”
Dear Debra,
There are 6 universal Retail Truths
1. Retail is not CPG; Shopping is an experience
2. Ideas are only as good as they can be executed
3. Success is won one customer at a time
4. Short term is greater than Long term
5. Holidays make or break the year
6. Urgency and flexibility are your biggest assets
Two extremely different cultures and business types, Kraft and JCP. Ms. Berman will definitely have a serious, serious challenge on her hands.
A good friend and I were once hired as “change agents” for a prominent supermarket chain, he as VP Operations and me as VP Marketing. A little over a year later, we both left. The systemic inertia (the part about a body at rest tending to stay at rest) was simply too great to overcome.
Debra Berman is well known for her effectiveness at Kraft. B-b-but, now she’ll be working for Ullman, who is well known as an opinionated iconoclast. The Imam Of Inertia. The simple fact that so many top executives abandoned JCP when they learned of his return is ample testimony to the difficulty of working with the previous and current CEO.
All of us are rooting for Debra to succeed at helping to improve the prospects of this iconic retailer. I hope she’s tough.
Kraft does a fantastic job of making the public aware of its existence and purpose. This is an effort that JCPenney needs in any attempt to grow and sustain the business. Selecting someone with no retail experience in a declining market is a risk that has disappointed investors according to this day’s stock price declines.
In contemplating this announcement and the RW discussion which is in search of helpful ideas, I can think of two right away. First, I would recommend to the new vice president that she should produce no facial expressions or verbal outbursts of surprise or dismay when looking for any of the many reports she is used to having for decision making purposes to no avail. When the shock and surprise wears off from the discovery that there is no sales or marketing plan, or departments for that matter, the work to rebuild needs a breakneck pace with no room for placement mistakes. My second recommendation would be to rebuild with experienced retailers from the ground up, quickly.
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It all depends on how free she is to do her job and how much time they are prepared to invest in a new marketing plan before hitting the panic button again.
My advice for Ms. Berman? Keep your resume up-to-date, you might need it soon.
The JCP hire is similar to a recent move by Kohl’s, in which it brought in a senior executive from Starbucks to tackle its marketing and omnichannel strategies. Both stores are trying to think outside the box of traditional retail backgrounds, and this could turn out to be a smart move for JCP. Without knowing anything about Debra Berman’s track record or skill set, I see her having an opportunity to make JCP marketing more about the brand and less about price…and likewise with the store’s loyalty program. The key is for JCP to let her be a change agent, if that’s why she was hired.
Debra brings a focus on consumers which is really needed. By choosing a direction and image, by getting management to buy into the same vision that resonates with consumers, and by getting the team to work together, Penney’s marketing efforts could make a significant difference. However, the switch needs to happen quickly and be customer focused.
I have to confess that I’m baffled by the JCP saga. When offered lower-than-low prices and spectacular merchandise (and, it must be noted, a strange ad campaign), customers bolted. I wish Ms. Berman the best of luck in divining what kind of price increases and “discounts” will appeal to Penney’s customer base.
Welcome to an amazing challenge Ms. Berman! You have inherited a fractured brand that has scrambled to find its place and identity. If brand is defined as a promise kept, then JCPenney lost its brand identity.
As the new SVP of Marketing, your challenge is to pick up the banner and forge ahead. The easy and safe approach would be to revert back to ‘old school’ retailing methods and practices. Safe and easy in that the Board of Directors would find it comfortable. The more challenging and correct approach is to move forward—recognizing that we live and shop in a digital landscape where your shoppers and customers are taking control of who, what, where, when, and how brands of their choosing communicate with them through channels of their choice. That is the reality and new status quo. Shoppers have come to expect it.
The challenge is tp design and activate brand communication that provides relevant, personal and consistent brand communication through ALL of your marketing communication channels. Being able to tell stories that emotionally connect while also providing integrity and rebuilding trust, to all of your shoppers across and through all of those available digital channels will allow JCPenney to redefine their place and the brand.
My advice: Don’t over-correct. Impressive denim bars, a lovely home section, Martha pantry products…there is a lot to love about JCP’s early-stage renovations and it didn’t come cheap. Hopefully Ms. Berman will get behind these initiatives (please, no more apologies) and do them proud with innovative marketing pieces that don’t just focus on price.
Recent major missteps by JCP indicate that their board of directors and its top management have been too starry-eyed in their key strategic hires.
Debra Berman may be a miracle worker for JCP, but as the insightful futurist Ryan Mathews advises Debra Berman above … keep your resume current.
Operating with a Swiss Cheese executive team — that’s a good reason to hire someone from Kraft. But seriously folks, as one who made a very bad career decision myself many years ago, I hope that “former Kraft” means she was unemployed and looking for a “new opportunity” and did not leave battleship Kraft for Titanic JCP.
CPG is very different from retail. In mall based, department store retail, marketing folks sit second chair. They don’t own a P&L. Marketing sells what merchants buy/own and they drive traffic to stores that operators run. And now there is the CIO. Debra has to sort, build out and protect her unique position among these colleagues. She needs to create a strong partnership with the CEO by supplying Ullman with ideas he will support, fund, and protect. While all in the executive cadre will assert their marketing expertise; Ullman MUST provide air cover. And then she needs to live and breath the calendar.
Then on day 2…
Or as we like to say, “retail ain’t for sissies.”
Dear Debra,
There are 6 universal Retail Truths
1. Retail is not CPG; Shopping is an experience
2. Ideas are only as good as they can be executed
3. Success is won one customer at a time
4. Short term is greater than Long term
5. Holidays make or break the year
6. Urgency and flexibility are your biggest assets
Two extremely different cultures and business types, Kraft and JCP. Ms. Berman will definitely have a serious, serious challenge on her hands.
A good friend and I were once hired as “change agents” for a prominent supermarket chain, he as VP Operations and me as VP Marketing. A little over a year later, we both left. The systemic inertia (the part about a body at rest tending to stay at rest) was simply too great to overcome.
Debra Berman is well known for her effectiveness at Kraft. B-b-but, now she’ll be working for Ullman, who is well known as an opinionated iconoclast. The Imam Of Inertia. The simple fact that so many top executives abandoned JCP when they learned of his return is ample testimony to the difficulty of working with the previous and current CEO.
All of us are rooting for Debra to succeed at helping to improve the prospects of this iconic retailer. I hope she’s tough.
Kraft does a fantastic job of making the public aware of its existence and purpose. This is an effort that JCPenney needs in any attempt to grow and sustain the business. Selecting someone with no retail experience in a declining market is a risk that has disappointed investors according to this day’s stock price declines.
In contemplating this announcement and the RW discussion which is in search of helpful ideas, I can think of two right away. First, I would recommend to the new vice president that she should produce no facial expressions or verbal outbursts of surprise or dismay when looking for any of the many reports she is used to having for decision making purposes to no avail. When the shock and surprise wears off from the discovery that there is no sales or marketing plan, or departments for that matter, the work to rebuild needs a breakneck pace with no room for placement mistakes. My second recommendation would be to rebuild with experienced retailers from the ground up, quickly.