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JCPenney (JCP) Taps Legendary 'New Coke' Mastermind in Turnaround Effort

February 28, 2013 10:04 AM EST
Just when you think things for JCPenney (NYSE: JCP) can't get any better, they absolutely can.

On the retailer's quarterly call Wednesday, CEO Ron Johnson said the company has been working with marketing guru Sergio Zyman since last autumn. Coincidentally, Zyman was the "mastermind" behind one of the worst marketing blunders in consumer goods history: Coca-Cola's (NYSE: KO) 'New Coke' effort back in 1984. Now, everything can't really be tied to the ad campaign; the product needs to back up the effort. However, things went so bad that Coca-Cola switched back to its original formula after just 77 days.

Zyman also ran the campaign for Fruitopia, which was a very redeeming product both in appearance and taste.

Johnson commented on the call that, "Sergio has a unique ability to understand customers and develop strategies that will succeed on rapid-fire tests and response." Unique is one way to put it.

Last year, Johnson alienated customers after switching from JCPenney's traditional "discounting" model to everyday "fair and square" pricing. He noted that JCPenney would be returning to the "clearances" model to lure back customers over the next several quarters.

While shares of the retailer are trading over 18 percent lower Thursday, investors are hoping that the "New Penny's" has a markedly different effect on consumers than "New Coke" had back in the day.


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