“I certify that this is my own work and if this statement is untrue, I acknowledge that I will have committed an academic offense.”
MKTG6500 –Marketing MANAGEMENT
Professor: Dr. Rajesh Chandrashekaran
Date: February 14, 2012
Analysis of Current Events
JCPenny has just launched its new marketing strategy on Feb 1, 2012, which include improving its brands, refreshing its new stores, and the most important part—the new pricing model. The new pricing model is so called “Fair and Square” pricing strategy. This new pricing strategy includes three parts. The first one is “everyday” regular pricing, which is about 40% off 2011’s retail price without discount or promotion. The second one is the “month-long value” pricing, which offers even better price on specific merchandise. The final one is the “best price” pricing, which are clearance deals on the first and third Fridays of each month. In my point of view, I think JCPenny’s new marketing strategy is necessary for their further development in such tough competitive environment. According to Martis-Olivo, a retail analyst for Thomson Reuters, JCPennt’s sale performance is poor compared to Macy’s in 2011. Although Macy’s offers less discount and promotion, it posted a much stronger same-store sales average. Consumers now think department stores usually offering items at high prices, then offering discounts or coupons, so use such discount or coupon promotion to attract sales is not as much efficient as before. Furthermore, internet sales are jump up significantly in recent years due to the lower price and more convenience. So JCPenny’s new marketing strategy is launched in time to tackle these challenges. The “everyday” pricing is about 40% off 2011’s retail price without discount or promotion, which will give the consumers better value products to increase the chances that consumers will visit more and purchase more because of the lower prices. The...