JC Penneys Fair and Square Pricing Strategy Elie Ofek Jill Avery 2012
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Elie Ofek (JC Penneys) and Jill Avery (Fair and Square) had a brilliant idea in 2012: to introduce a price war in fashion. The two fashion retailers took a different approach: they offered free shipping to their customers and reduced prices on almost all of their lines. Free shipping was an unprecedented innovation for these two fashion retailers. Their customers were so accustomed to being charged for shipping that they were shocked to discover that they could walk away with the sh
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The Fair and Square pricing strategy for JC Penneys was one of the most successful in history. JC Penneys’ pricing strategy was built upon several key principles that enabled the company to remain successful in the competitive retail marketplace for over 50 years. useful site Fair Pricing The fair pricing strategy was based on three core principles: a commitment to offering the lowest price possible for a comparable product, a commitment to competitive pricing across the entire product line, and a commitment to providing a superior shopping experience for
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Selling the perfect product at the right price remains a challenge for retailers in the face of a competitive market, economic downturn, and new technologies. This essay, based on my personal experience and honest opinion, examines JC Penneys Fair and Square Pricing Strategy with a focus on its effects on customer retention, loyalty, and profitability. Prior to 2007, JC Penneys operated in the traditional brick-and-mortar format of traditional stores, supplemented by online and e-
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“The Porters five-factor model is based on the concept of value creation. It helps managers understand the value proposition of their product, the customer needs, the marketing strategy, production processes, and distribution channels. The five factors are: firm strategy (intangible assets, competences, competitive advantages, and capacity), market strategy (pricing, promotions, distribution channels, product design, advertising, branding, and differentiation), customer strategy (attitude, service quality, satisfaction, loyalty, and brand perception), and competitive strategy (cost
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[Your Topic 1] JC Penneys Fair and Square Pricing Strategy In the 2009 JC Penneys annual report, CEO Elie Ofek declared, “We believe that our customers are the foundation of our business. Our vision is to be the world’s favorite shopping destination for customers by delighting them with exceptional experiences and great value.” In the same report, he also stated that “Our strategy is simple – Fair and Square.” He defined “Fair and Square” in the report as “Fair
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I do not recall where, but I’ve heard that some successful brands, and this case study, JC Penneys, follow a “fair and square pricing” strategy. In other words, they offer fair prices on their products, which is perceived by most consumers to be a good price. This strategy, as I see it, is well thought out. It’s based on the idea that prices should be high enough to cover the costs of production, but low enough to enable the company to sell as much product as possible. This approach has been found