JCPenney Case Study

Was the Fair and Square strategy overall effective Do the elements of the strategy work together or compete with one another to provide a coherent strategy Did the Fair and Square strategy simplify J.C. Penneys pricing structure and make it more straightforward for customers or did it confuse customers What, if anything, is missing or be changed From this case, the Fair and Square strategy almost changed everything in J.C. Penney. However, in my opinion, the overall of this strategy is not effective. Technically, the Fair and Square strategy is trying to give customers the maximal benefits and build the win-win between customers and retailer. J.C. Penney is an American based department store and it was established over 100 years. With the developing of new retail formals, such small specialty sores, and e-commerce, the company was keep losing market share and revenue. Therefore, the purpose of the new strategy is stop losing money and customers, as the case described, recreate a golden age department store that appealed to all Americans, across age, income, and geographic demographic. However, from the result of J.C. Penneys first earning report after the new strategy, the company lost 163 million, including total sales revenues and gross margin decreasing. From J.C. Penneys Stock Performance, since the company launched the new strategy, although J.C. Penneys stock price was rise for one and half month, it kept declining in the rest of time. According to the case, investors sending the companys stock down 20, the biggest single day drop in over four decades. In addition, customers were moving away from J.C. Penney because the whole strategy removed Sales, clearance, and coupons, instead of complicated pricing tags. Also, J.C. Penney is more focus on younger shoppers in this plan, so the loyal customers were leaving before the new ones coming. Thus, the result of the Fair and Square strategy is totally departed from its original purpose. By the textbook Marketing