MKT501 Module 5 CASE

MKT501 Module 5 CASE

Background

J.C Penney is a brand that is also known as JCP and is said to be a chain of departments in United States. It is a mid range department which is based in Plano, Texas. The company currently has 1107 stores in totality from which 50 are based in Puerto Rico and United States. Initially it was said to operate via catalogue business and also via numerous discount oriented outlets. This company is known for selling merchandize which is conventional by nature (www.library.ndsu.edu).

Discussion

The company is also said to have a transformation in the way it does business especially when it comes to the remaking of the customer experience across the number of stores it has as well as its online presence J.C.P.com. The customers, upon making every visit to the store will witness pricing that is fair and square. What makes the prices fair and square are massive price reduction and cost effectiveness.

The concept of departmental store is said to be a top most priority when it comes to retailing. J.C. Penny is revamping every aspect of their business and is boldly pursuing changes as well as creating long term oriented value of the shareholders considering that it is a top favorite of its target market. J.C. Penny's initiative is pursuing its core value driven by treating the customers in a fair and just manner. With the new pricing strategy, everyday will be a fabulous day for shopping. J.C. Penny is planning to create excitement via promotions on monthly basis which will be synced with the rhythm that the lives of the customers have (www.bizjournals.com). J.C Penny is also planning to revamp every store present by rolling out the merchandize that is tagged with exciting initiatives.

Pricing

J.C. Penny has introduced a pricing strategy known as the fair and square pricing strategy which will constitute three modes of pricing namely:

1. Month-Long Prices: Prices on the products which are required on regular basis

2. Best Prices

3. J.C. Penny's Lowest Prices: Low prices will be present on the first and the third Friday's of every month

Simultaneously J.C. Penny will also make room for new merchandize. The merchandize will be coupled with the new pricing strategy and at the same time will also have promotional strategies syncing with the customer's needs and wants. J.C. Penny has now decided to eradicate the concept of coupons, series of sales, retail gimmicks ...