The J. C. Penney New Business Model

Decent Essays
The J.C. Penney Case (New business model) Due to the lack of customers shopping, J. C. Penney experienced a loss in sales. The “Fair and Square” Pricing Strategy was Johnson’s idea to simplify the pricing structure for customers. “Fair and Square” pricing was meant to simplify J.C. Penney’s pricing structure and make it more straightforward for customers to shop. Ofek, and Avery, (2012). The components of the J.C. Penney new business model consisted of greater and cheaper prices more frequently with less hassle and promotions. In addition, there was a business model, a pricing strategy, new sales structure, a new logo, new spokesperson, and new store design. The business model was not what I considered original, Johnson used examples from Walmart, Target and Apple to build the model, not realizing that those companies market different merchandises and serve different customers. Sales and clearance items were discontinued which was the main reason for customers…show more content…
Penney. J.C. Penney has been on the market for years and was known for its coupons, weekly specials and sales items, unlike the other retailers who were new on the scene. The new pricing strategy was a big shift for J.C. Penney, a company known and loved for its JCP Cash coupons distributed to customers via direct mail and email, its RedZone Clearance aisles, and its weekly circulars advertising that week’s price specials. (Ofek, et al, 2012) Although Johnson was successful with Target and Apple retailers, J.C. Penney was a different retailer in a class by itself, therefore what worked for the others as we read in the case study did not work for J.C. Penney because Penney was more customer oriented.After years of sales, sales and more sales, customers weren't so sure about the Fair and Square strategy. Wolfe,
Get Access