Current Event Analysis Essay

JCPenny has just launched its new market dodge on Feb 1, 2012, which include improving its mark offs, call back its new stores, and the most eventful survey outthe new set model. The new legal injury model is so called Fair and forthright pricing schema. This new pricing system includes three parts. The first one is routine regular pricing, which is about 40% gain 2011s retail hurt without snub or forwarding. The second one is the month-long look upon pricing, which offers even better bell on particularized merchandise.The final one is the trump price pricing, which argon clearance deals on the first and third Fridays of for each one(prenominal) month. In my point of view, I think JCPennys new marketing system is infallible for their further development in such(prenominal)(prenominal) tough competitive environment. According to Martis-Olivo, a retail analyst for Thomson Reuters, JCPennts bargain performance is poor compared to Macys in 2011. Although Macys o ffers less discount and packaging, it stick on a much stronger same-store sales average.Consumers at once think incision stores usually oblation items at high prices, then fling discounts or coupons, so use such discount or coupon promotion to sop up sales is not as much efficient as before. Further much(prenominal), meshwork sales are jump up significantly in recent age due to the unhorse price and more than convenience. So JCPennys new marketing outline is launched in time to face these challenges. The everyday pricing is about 40% off 2011s retail price without discount or promotion, which go forth put across the consumers better place products to increase the chances that consumers get out visit more and purchase more because of the lower prices.The month-long values on specific items, which will also keep the customer mentality from waiting for spare price drops, and this will also attract consumers have to the store more frequently, instead of single come i nto the stores when promotion. Finally, the best price pricing on the first and third Fridays of each month will help the stores to peck 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 direction 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 final price youll ever see for a particular item. Secondly, brands are actually the products to department stores like JCPenny.The remedyment of brands is refer to improve their products, as Wahlstrom described, J. C.Penney has put its focus on fewer, more relevant brands, a nd less on private brands that are less efficient, such as Arizona and Worthington. These will issue consumer with quality instead of quantity. The final P is referring place, as we mention at the beginning, JCPenny is think 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 kinsperson Acquiring & Retaining customers. The lower price is to alternate consumers sensed cost and then will change the perceive 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 solidified JCPe nneys relationship with its loyal customers and attract new ones.