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JCPenny has just introduced its brand-new marketing method on Feb 1, 2012, that include enhancing its brands, revitalizing its new shops, and the most fundamental part-- the brand-new rates design. The new rates design is so called "Fair and Square" rates method. This new pricing technique consists of three parts. The very first one is "daily" routine rates, which has to do with 40% off 2011's market price without discount rate or promo. The 2nd one is the "month-long worth" pricing, which provides even much better cost on particular merchandise.
The last one is the "best cost" rates, which are clearance deals on the first and third Fridays of each month.
In my perspective, I think JCPenny's new marketing strategy is needed for their further development in such difficult competitive environment. According to Martis-Olivo, a retail expert for Thomson Reuters, JCPennt's sale performance is poor compared to Macy's in 2011. Although Macy's deals less discount rate and promo, it published a much more powerful same-store sales average.
Consumers now think outlet store generally offering items at high prices, then providing discounts or coupons, so utilize such discount rate or coupon promo to bring in sales is not as much efficient as previously.
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Additionally, internet sales are leap up substantially recently due to the lower cost and more benefit. So JCPenny's brand-new marketing strategy is launched in time to take on these obstacles. The "everyday" rates has to do with 40% off 2011's retail cost without discount rate or promotion, which will offer the consumers much better worth items to increase the possibilities that consumers will visit more and buy more since of the lower rates.
The "month-long worths" on particular items, which will likewise keep the consumer mentality from awaiting additional price drops, and this will also bring in consumers pertain to the store more regularly, instead of only entered into the stores when promo.
Lastly, the "best rate" pricing on the very first and 3rd Fridays of monthly will assist the stores to clean up their stacked up inventories to avoid additional bring expense. JCPenny's brand-new marketing technique actually accompanies the marketing mix, which we generally called 4 Ps: Rate, Promo, Item and Place.
As we discussed above, the important role of the JCPenny new marketing strategy is the new pricing model, which give the lower everyday price and month-long values to the consumers. So their new pricing position is focusing on better price-value relationship. Also, they hold promotion on the first and third Fridays of each month, which is the new name for clearance, or the lowest price you'll ever see for a particular item. Secondly, brands are actually the products to department stores like JCPenny.
The improvement of brands is refer to improve their products, as Wahlstrom described, J. C. Penney has put its focus on fewer, “more relevant” brands, and less on private brands that are “less efficient,” such as Arizona and Worthington. These will provide consumer with quality instead of quantity. The final P is referring place, as we mention at the beginning, JCPenny is refreshing its new stores, which may give consumers more convenient accessibility. Furthermore, the new marketing strategy is also coincides with what we just learned from the class-- Acquiring & Retaining customers. The lower price is to change consumers’ perceived cost and then will change the perceived value.
The lower price acquiring new customers and retain customers to come to the store more frequently. Also, new brand marketing is to improve their products and service, which change the perceived benefits and again will change the perceived value, and change the customers’ preference. These combinations of quality, service and price are called “customer value triad, as value increases with quality and service and decreases with price. These aim to coagulate JCPenney's relationship with its loyal customers and attract new ones.
Revamping JCPenney: A New Marketing Strategy for Growth. (2017, Jan 22). Retrieved from https://studymoose.com/current-event-analysis-essay
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