AugustÃn, the president of the retailer Emilia, strongly believed in his strategy shift in pricing model. However, what did he not do beforehand to validate his idea. But, this is that so important because it will affect the outcome and direction of the company. After reading this article, I was able to reconsider the feedback given by Shari Rudolph. As the vice president and the chief marketing officer for the apparel and home retailer Gabriel Brothers, Rudolph states that Augustin should eliminate his no-discount strategy. The circumstance with JC Penny and other retail stores was not fully dependent on discounts, meaning that there would be other ways to work around these problems.
For example, a customer may have chosen to purchase a good not because it was necessary, but because it was an extremely good deal. That is often the case with shopping at outlets or malls during holiday weekends. People are inclined to purchase goods that would have rather been more expensive if bought for the full discount price. A discount makes people feel like they are saving money when actually they are still spending money in order to save some. Altogether, this is a brilliant marketing strategy.
In addition, there is apart in the article that states. the strategy ‘hablar claro’ being approved by the board before even being tested. This can pose many issues long-term, and I would strongly advise against it if I could give input. The decrease in store revenue and increase in customer traffic are both negative effects of the poor strategies.
