current event research essay
JCPenny has just launched its new marketing strategy in Feb one particular, 2012, which include improving it is brands, stimulating its fresh stores, as well as the most important part”the new charges model. The newest pricing style is so called “Fair and Square pricing strategy. This new pricing technique includes 3 parts. The first one is “everyday regular costs, which is regarding 40% off 2011’s retail price with out discount or perhaps promotion. The second one is the “month-long value pricing, which offers even better value on certain merchandise.
The final is the “best price costs, which are measurement deals around the first and third Fridays of each month. In my point of view, I do think JCPenny’s new marketing strategy is essential for their additional development in such challenging competitive environment. According to Martis-Olivo, a retail expert for Thomson Reuters, JCPennt’s sale overall performance is poor compared to Macy’s in 2011. Though Macy’s gives less discount and promotion, it submitted a much better same-store product sales average.
Buyers now believe department stores usually offering items at excessive prices, then offering special discounts or coupons, so make use of such low cost or discount promotion to draw sales is definitely not as much effective as before. Furthermore, net sales are jump up significantly in recent years due to the lower price and more comfort. So JCPenny’s new web marketing strategy is introduced in time to tackle these types of challenges. The “everyday costs is about forty percent off 2011’s retail value without lower price or advertising, which will supply the consumers less expensive products to increase the chances that consumers can visit more and purchase more because of the lower prices.
The “month-long values in specific items, which will also keep the customer mentality via waiting for extra price drops, and this will also catch the attention of consumers come to the retail store more frequently, rather than only enter the stores the moment promotion. Finally, the “best price costs on the initially and third Fridays of each and every month may help the stores to clean up their particular piled up stocks to avoid additional carrying price. JCPenny’s fresh marketing strategy actually coincides with all the marketing mix, which we usually named 4 Playstation: Price, Promo, Product make.
As we discussed previously mentioned, the important function of the JCPenny new web marketing strategy is the new pricing model, which supply the lower every day price and month-long principles to the buyers. So all their new costs position is focusing on better price-value relationship. Also, they will hold campaign on the initially and third Fridays of each month, which can be the new brand for measurement, or the cheapest price you’ll watch for a particular item. Secondly, brands are actually the products to department stores like JCPenny.
The improvement of brands is definitely refer to enhance their products, while Wahlstrom described, J. C. Penney offers put it is focus on fewer, “more relevant brands, and fewer on private brands which can be “less efficient, such as Arizona and Worthington. These types of will provide buyer with top quality instead of amount. The final L is referring place, as we mention at the beginning, JCPenny can be refreshing it is new retailers, which may provide consumers more convenient accessibility. Furthermore, the new online marketing strategy is also coincides with what all of us just learned from the class” Acquiring & Retaining buyers. The lower cost is to change customers’ perceived price and then will change the identified value.
The lower price obtaining new customers and retain clients to come to their grocer more frequently. As well, new brand marketing is to improve their products and service, which change the recognized benefits and again changes the identified value, and change the consumers’ preference. These combinations of quality, support and cost are called “customer value triad, as value increases with quality and service and decreases with price. These make an effort to coagulate JCPenney’s relationship with its loyal consumers and attract new ones.