Pricing Case J.C.Penney

In: Business and Management

Submitted By Lion92
Words 1343
Pages 6
Case reflexing questions:
1- Evaluate the overall effectiveness of the "fair and square" repositioning strategy. How well or poorly do all of the elements work together or work at odds with one another to deliver a coherent whole? What elements are missing?
In order to evaluate the strategy, its several elements need to be analyzed:
The new name “Fair and Square” communicates honesty and simplicity to the consumers. It stands for a clearing up of the chaos the countless rebates and discounts, which were part of the past strategy. The new name aims exactly the perception consumers might had of being cheated by the department store. If JCP was able to give this huge amount of discounts (on average 40% off), what is the original price worth then? Customers might perceived normal prices as too high and the discount structure too complicated due to a lack of overview, which is the main idea of the new strategy. “Fair and Square” communicates trustworthy of the company.
The new price strategy is therefore another key element of the new strategy and needs to be evaluated. By limiting the amount of discounts and special sales to regular daily prices increases transparency for the consumer and help to understand the new prices. Rounding prices from .99$ to the full Dollar communicates psychologically fairness as consumers can easier calculate their total expenses now and JCP doesn’t try to make their products seem to be cheaper as they actually are. But it also has to be mentioned that consumers might not see how “fair” the price is as they can’t see the comparison to the MSRP and don’t see their savings anymore.
The new logo represents the square and the simplicity and is more modern which makes it fit to the strategy. “Square” and simple, like the new pricing and more modern as they aim to attract younger customers. The colors of the American flag can be interpreted as…...

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