Essay on Department Store Marketing Comparison

5516 WordsOct 7, 201223 Pages
1. I have chosen to discuss and compare the department store industry. I have chosen this industry because I live in Southern California where the retail sector is a major part of business. Shopping malls are prevalent everywhere. I have seen and experienced all the differences among class and status. With a wide variety of demographics in Southern California, there are a number of shops and stores to choose from. Department stores range from discount warehouses such as Wal-Mart, mid-range stores such as JC Penney, and high-end stores like Nordstrom. I am going to discuss the department store industry specifically for Wal-Mart, JC Penny, and Nordstrom. Coming from a middle-class family, I have experienced shops at all ends of the…show more content…
Promotion consists of advertising, public relations, etc. Place Providing the product at a place that is convenient for consumers. Place is the distribution aspect. JC Penney: Product: Like its two competitors, JC Penney offers a variety of tangible goods for sale. JC Penney caters to its customers with higher end products at an affordable price. It is similar to Nordstrom’s in the types of goods offered. It differs from Wal-Mart because it has less variety. JC Penney offers clothing, bed and bath products, home items, clothing accessories, and patio furniture. Clothing is the main area of production for JC Penney and accounts for more than 50% of sales. Price: JC Penney has recently decided to move to three kinds of prices: everyday, monthly specials, and clearances. They came to this strategy through a variety of studies. First, using past sales data, the company looked at consumers' actual purchasing behavior, and came up with what it terms “Fair and Square” pricing, which means shoppers can expect lower prices in stores at all times. To reach this conclusion, research showed 72% of JC Penney's revenue came from selling items priced at least 50% off. Thus, in the example cited in most recent news stories about the “Fair and Square” strategy, a T-shirt that had retailed for US$14 but typically sold — after markdowns — at US$6, would now be priced at a US$7 every day. Part two of “Fair and Square” means monthly deals, and in the T-shirt example,
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