Case: J.C. Penney’s “Fair and Square” Pricing Strategy-Memorandum

One-page typed homework assignment. State your recommendation to the board, and provide a table of the pros and cons associated with implementing your recommendation. Keep in mind that boards set strategy, policy, and budget; thus, your recommendation is actually a request that the board adopt a specific strategy, policy, or budget.

Memorandum

Case:  J.C. Penney’s “Fair and Square” Pricing Strategy

Name: ABC

Date:

Key Issue

“The key issue of the J.C. Penney is the controversial pricing strategy. The up and downs in pricing strategy have converted customers in the competitive retail market. Even with some adjustment, the company struggled in the competitive market, which hit revenue streams and profitability as well.”

Recommendation

1: The big recommendation of this company is the penetration pricing strategy. If the company wants to streamline its sales process, it has to come up with the low process of products and services for customers. Interestingly, it will make customers assertive in making the positive buying decisions, and obviously, it will create the best impact on the profitability as well.

2: Another recommendation for this company is to utilize different modern media channels to streamline its pricing strategy, which is different from other retailers. The most important thing is to boost the competitive positioning through this consideration.

3:  The third recommendation is to create several segments, which can rationalize the pricing strategy of the company for different customers.

Rationale

1: Penetration pricing can help to increase the profitability due to higher sales in the market

2: Modern media channels to streamline the pricing strategy can attract customers, which can make them quite assertive and aggressive in the buying process. These channels are good to depict the comparison with other retailers

3: Making some new segments may reduce the overall customer’s bargaining power, which may also increase the sales.

Pros and cons