Current Event Analysis Essay

JCPenny has just launched its new trade strategy on Feb 1, 2012, which include improving its dirts, refreshing its new stores, and the most cardinal partthe new determine model. The new price model is so called Fair and Square pricing strategy. This new pricing strategy includes three parts. The source one is everyday regular pricing, which is about 40% off 2011s retail price without give the axe or promotion. The second one is the month-long revalue pricing, which offers unconstipated 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 JCPennys new marketing strategy is necessary for their further development in such tough competitive environment. tally to Martis-Olivo, a retail analyst for Thomson Reuters, JCPennts sale performance is poor compared to Macys in 2011. Although Macys offers slight discount and promotion, it posted a more than strong er same-store sales average.Consumers now think division 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 JCPennys new marketing strategy is launched in period to tackle these challenges. The everyday pricing is about 40% off 2011s 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 month-long values on specific items, which will also keep the customer wit from waiting for additional price drops, and this will also attract consumers come to the store more frequently, instead of only come into the stores when promotion. Finally, the best price pricing on the first and third Fridays of each mont h will help the stores to clean up their piled up inventories to avoid additional carrying cost. JCPennys new marketing strategy actually coincides with the marketing mix, which we usually called 4 Ps Price, Promotion, Product 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 youll 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 cons umer 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 perceive 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 JCPenneys relationship with its loyal customers and attract new ones.