J.C. Penney’s “Fair and Square” Strategy (Abridged) Harvard Case Solution & Analysis

As he gets geared up to release 2nd quarter 2012 results, Ron Johnson, the new CEO of department store J.C. Penney, is re-assessing the spectacular transformation he pioneered for the business model and brand image of his firm. A new pricing scheme he put in place in February, dubbed "Fair and square", was a crucial component of the novel strategy. In the introductory phase the scheme had three diverse pricing tiers and removed the typical sales promotions in an attempt to make simpler the shopping experience for consumers; as a result moving J.C. Penney off its preceding high low pricing practice. Additional components of the new strategy included a brand new shop arrangement, the inclusion of several well-known brands, and having special lines designed by well-known designers.

Under tremendous stress to turn things around as the all-important back-to-school and holiday shopping seasons were imminent, Johnson decided to make adaptation to the first pricing scheme that were set to go into effect August 1st. Were these changes enough to turn things around? Should Johnson stay the course on the opposite aspects of his attempts that are repositioning? Is Johnson's experience in setting up Apple shops helping or hurting him as he tries to achieve his goal of making J.C. Penney "America's favorite store?" (This is an abridged version of the initial case, "J.C. Penney's "Fair and Square" Pricing Strategy", 513-036.)

PUBLICATION DATE: October 31, 2013 PRODUCT #: 514063-HCB-ENG

This is just an excerpt. This case is about SALES & MARKETING

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