Vegemite

1. Evaluate the overall effectiveness of the "Fair and Square" pricing strategy. How well or poorly do all of the elements work together or work at odds with each other to deliver a coherent whole?

By the sounds of what I read, Johnson tried to pull a “start-up” branding scheme. Like that of Apple stores, he always referred too.  JCP was different in that everything he was trying to create was already created and known by consumers whom shopped at JCP. Therefore, everything seemed to be working against Johnson. Although, having Ellen DeGeneres as the New spokeswomen created a lot of flak it also created some marketing JCP didn’t have in place.

What elements are missing?

New Marketing Campaign

2. What do the first and second quarter results indicate about the "Fair and Square" strategy?

No one liked them, Ex. 10 shows that what used to be purchased at 5.99 is now 7.00. Sales dropped, and there wasn’t any incentive to shop at JCP anymore.

Are the first two quarters results enough to validate or invalidate the changes?

No, as most places don’t tend to see positive results from changes this dramatic for at least a fiscal year. Validation or invalidation would not be accurate.

 How would you respond to them?

I would make some small adjustments and tweaks to the current plan, during the quarters to see how the market would resonate with the changes.

3. What assumptions about J.C. Penney's 5 Cs (customers, competitors, collaborators, company and context) must hold true for the re-positioning to be effective?

• Customers: Would have to continue to be loyal
• Competitors: Would have to follow suit
• Collaborators: Work diligently through communication and make the transition smooth.
• Company: Believe in what they are doing is the correct way for the company to go.
• Context: Would have to be understandable to the customer and prove to them it is a better deal.

What does Johnson perceive in these factors that leads him to believe that "Fair and Square" pricing can be an effective approach for J.C. Penney?

Johnson thought it made sense to cut to the chase by listing realistic prices from the get-go and foregoing nonstop sales.