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Big news today as Ron Johnson, CEO of J.C. Penney “resigned”. He did so following a series of decisions designed to make the staid Penney’s brand more hip. Sadly, thus far these changes have chased away existing customers without attracting enough new ones to turn around the store chain’s long decline.

Johnson’s decisions, like those of his mentor Steve Jobs, were made from the gut…no need for any market research. Jobs of course had an almost magic touch. Carefully choosing the markets to enter, when to do so and producing products that were seen as cutting edge. Often his decisions were seen as counter intuitive (such as the opening of retail stores in the Internet age), but time and time again he was proven to be right. So, why didn’t it work for Mr. Johnson?

First, Mr. Jobs was producing products for Apple, not J.C. Penney. Apple was known as a producer of fine computers that were easy to use (intuitive is a word often used). Some of the luster came off that reputation when Jobs left the company, but when he returned there was little doubt what Apple stood for and the types of products to expect. From the moment he returned he looked for places where that reputation (intuitive electronics) might find a market. Mr. Johnson, by contrast saw the J.C. Penney reputation as a problem and looked to change it…a far tougher task.

Second, Jobs often had success by leaping into relatively new markets and then using the power or Apple design and engineering to dominate it. He didn’t create the first digital music player, but he created one that was intuitive and he backed it up with a legal way to buy digital music. He could do this without giving up the existing Apple business (computers). Johnson needed to focus resources on shoring up the flailing store chain…perhaps if he’d had the luxury of creating small J.C.Penney Boutiques it would have worked.

Third, I am reminded of something that I once heard the legendary Warren Mitofsky say with regards to flawed sampling, “Results will be right until they aren’t”. Mr. Jobs was not always right. He left Apple the first time a failure (one could argue that others were at least as much to blame), started a new company that was largely a failure and then started his run, first at Pixar and then his triumphant return to Apple. He was clearly brilliant and had incredible vision, but he was not always right.   Of course, it goes without saying that not everyone has the same skills (me included).

...

magical_eyeThere's a lot of discussion today about the researcher as story-teller. Most of it has to do with the choices we make as analysts - what to focus on and what to discard; all important stuff.

Ultimately, however, we have to step up and tell those stories and good visual display is critical to that effort. Too often we fall short of effective in this area, and that's a problem. Market Researchers are fighting everyday for respect, but we'll never get it if we can't communicate the good (or bad) news we have to tell about brands and products and customers. To quote "Information Is Beautiful" author David McCandless from a recent interview in "Research:"

...everything you create now design-wise is competing with everything else that everyone ever looks at. So market research stuff is looking worse and worse as time goes by, because the web and good design are becoming more and more of a daily experience for people.

Recent comment in this post - Show all comments
  • Ed Olesky
    Ed Olesky says #
    Thanks for this very good advice. I've often talked about the need for the market researcher to stand with one foot outside the m

For those interested in the visual display of information Edward Tufte is no stranger. He is a Professor Emeritus of Political Science, Statistics and Computer Science at Yale, but his claim to fame is expertise in displaying information. A quick visit to his website will show you the scope of his work and suffice to say he is a renowned expert. Now he is getting in the act to help the government.

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