Evaluate The Overall Effectiveness Of The Fair And Square Repositioning Strategy

1) Evaluate the overall effectiveness of the "Fair and Square" repositioning strategy. How well or poorly do all of the elements work together or work at odds with one another to deliver a coherent whole? what elements are mising?
The new pricing strategy was offered in three categories. JC Penny took away the coupon and clearance section which took away a major portion of their customers. Most of the times, people came to the store only for the coupons offered. J.C. Penny should have spent some time on the survey and doing market research before implementing a new strategy. Ron Johnson went head and introduced his new strategy called “Fair and Square” where he promised the company sells good for the best prices than other locations. Ron
Penny had around 590 individual sales every year. Due to their new “Fair and Square Price” comparisons, most of the goods were sold at 50% discounts. Only 1% of the goods were sold at full price. The “fair and square” strategy was able to get this back to simpler way from the prices which had .99 cents at the end. This actually was able to attract customers even while recession stuck. They were actually able to offer the same quality even during recession made them good compete again stores like Wal-Mart, Target and Kohls. Unfortunately, JC Penny was unable to make any profits from the strategy but had lost a lot of money from offering so many deep discounts. Due to offering the goods for such low prices holding them to increase prices by a huge amount to cover up the losses. Though JC Penny was unable to make any profit, they were able to gain the reputation as a company reliable store where customers can purchase things at a reliable and low price place. Now the company can’t increase the prices without having angry and frustrated
He needs to bring back sales, deals and offers for black Friday kind of occasions. It is always advisable to increase the advertisements over the social media. This is a fine way to attract young customers while retaining the core customers. He has to bring back the old JC Penney culture. Johnson needs to conduct market researches and survey to find out what customer needs and wants. If JC Penney stands on the current course of “Fair and Square” then the chances of companies share going down is high. The “Fair and Square” strategy made a huge impact of letting the shares go down from 17 billion dollars to 11 million dollars. The impact is too huge for the company to recover. If they do come up with any brilliant strategy then they could cover up some part of the loss while aiming to retain the reputation of the