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This article describes the luxury bag price points.  Everlane chose to use a pricing strategy of around $400 compared to bags $1000 in this category. They can offer these prices by "cutting out middle men like retailers, operation on modest budgets..". However, the big issue is convincing its customers that the quality is still there. Everlane also mentions they will not do discounts because of the customer sensitivity. 

I personally believe that Everlane's strategies are not only a fantastic approach at growing their consumer base, confidence and improving their brand image, but will also allow them to gradually squeeze in to compete with the handbag 'titans' - if you will. By eliminating excess costs and utilizing a penetration pricing method, not only will they be able to target a larger market that can afford their products, but they will also be displaying that they can compete with the other big name brands on the basis of quality alone.

I think the bags Everlane is selling at reasonable prices for this quality will pay off for them. I see this as a JCPenney type idea under Ron Johnson: selling items at good quality without sales or discounts. That way people will understand how Everlane is trying to give the customer the savings by cutting out the middle man/retailers to give customers the savings. If money grew on trees and I wasn't a broke college student, I would LOVE to buy one of those bags. To know it could sell at an upscale retailer for close to half the price with similar quality is great for the customer's piece of mind!

JCP failed to convince customers to buy at "everyday prices" so they decided to bring sales back. To do this, they marked up prices then marked them down however people ended up paying more than the "everyday prices" and there is evidence that proves it.

Very interesting article. It seems that JCP has changed their pricing strategy multiple times this year -- I think this strategy could possibly cause JCP to loose more customers. Marking up and down is a good strategy but not when existing customers know what specific items cost -- the worst is that JCP put higher price tags on top of low ones (as a customer I would just be offend and that alone would drive me to shop else where). I think JCP has driven customers to think they are getting ripped off rather than getting good prices and leading them to believe they are getting a bargain. I think it is a very common strategy used by retailers and I am not bothered by it but when I become fully aware of it -- that is a problem.

It makes me sad to think that companies are "tricking" us to get our business. I understand from a "marketing mindset" and psychological perspective that companies get us to think we are getting such a great deal when prices are slashed. Just like the article also mentioned, Kohls may do this too. They always make a conscience effort to circle (in red pen) the amount of money you saved today on our shopping trip. But that number fluctuates so much based on when there is Kohl's cash, 15-20% off mobile coupons, etc. They always make you think you got an amazing deal, when next week it could be even better...or worse.

After numerous setbacks, JCPenney is coming out with a different strategy with a new partner.

This is an interesting pair because I know that Disney is very particular about who they partner with. JCPenny does not necessarily seem like the strongest brand name to associate with the Disney brand. This may end up harming Disney in the long run or greatly helping JCPenny- however it doesn't not directly reach their target market.

I am also surprised.. I worked at Disney world in Orlando and I do not see what disney expects to gain from this partnership.

This article lists multiple different approaches to pricing a product. Including multiple that are mentioned on our class guide sheet...

I like looking over all of these different pricing strategies because it makes me more aware. Some of the strategies were familiar from MK380, but others were new. Reading over and understanding the different pricing strategies makes me more aware when I am shopping to take note of what strategies retailers are using, and seeing how they work on myself and others. I think it's interesting to think of all the different components needed to consider just for pricing. I like, and know I fall victim to, odd pricing quote often. I find it interesting that even something at $3.99 will typically be perceived as $3. Overall I think this is a really good article to describe and provide examples of all of the different pricing strategies.

Patagonia has built a brand image that focuses on buying less and decreasing environmental harm. The strategy has actually worked so well Patagonia has actually had an increase in sales and caused other companies to follow suit and pledge to decrease there own harm to the environment. Patagonia has done a great job communicating with their consumers and have created a brand loyalty and great image while using this market strategy.

This truly blows my mind with it's level of genius alone. By urging people to live out their Patagonia jackets to the full extent of their life, they are not only conveying brand quality, but the 'idea' brands that millenials swoon over. By representing themselves as a Eco-conscious and 'caring' brand, they are inspiring more sales by urging the opposite. It's damn brilliant.

I agree with Patagonia's approach.. Society is becoming more and more green oriented and this approach targets that market. This is boosting sales and I believe will continue to raise sales because more and more people want to at least say they are trying to save the environment

I think this article is a great example of how important it is for companies to be continually evolving and strengthening their brands. I currently work for Kairos Zero, which is an online marketing consulting company, and their main objective in helping their clients is specifically defining the target market. Once the target market is clearly defined for any company, they can use analytics to better analyze their main customers, how they behave, and what they are looking to experience with your product or service. In the case of this article, JC Penny was unable to evolve and develop new strategies for existing or new customers because their target market was not clearly defined, and JC Jenny's overall focus was not based on what the customer truly wanted. This directly affected their bottom line over the course of two years. Unfortunate for JC Penny, but demonstrates how important it is to cater to the customer and provide that "experience" that they are looking for.

As everyone has stated, JC Penney is in hot water because they have lost sight of what the main focus should be: the customer. Without focusing on the customer, how do they expect to keep them coming back? The main aspect of customer loyalty is keeping customers satisfied in order to make them want to be a continuous customer. Because JC Penney is making decisions based on what they think customers want without doing any market research to back up these decisions, it is apparent that their customer loyalty, which in turn, affects their sales is dwindling rapidly. One aspect of the article that I could relate to was when the author talked about using test brands to see customer's responses to the brand. While working at my part time job at Express clothing, we would always be sent one or two items that we didn't have and would use them as "test items" to see if customers would be interested in buying the item. If the items were purchased, we let the manufacturer know and they would determine whether they would send us the item to sell. If not, we would not sell the items in our store. I think using a test brand is a great idea for JC Penney to try. By using a select few items from different brands, they can see what is successful and what is not and plan accordingly.

When I saw the changes JCPenney made in person, I thought it made their company look a little bit cheaper. While it was nice to see low prices, I still liked the more "department store" feeling with cash registers in every department rather than just in the front of the store. I agree with Kara about how Apple is its own "breed" because Apple is constantly innovating their products to be more user friendly to their customers and they are constantly listening to their customers, not to mention their top of the line customer service. It is also a lot easier to listen to your consumers when you have one specialized product such as Apple with electronics. JCP sells a wider variety of things from clothing, to luggage, to home goods, to shoes. With that being said, I believe it is a lot more important for them to listen to your customers because they have a wider variety of target customers.

From Macy's Investor Relations website, their "millennial" strategy

I think Macy's "millennial" strategy is a great idea for the retailer to continue innovating it's brand. They are seeking to attract a major portion of their target market through new programs. I believe the omnichannel integration will be extremely beneficial because the mobile and online aspects are the areas that will be utilized the most outside the brick-and-mortar locations. I'm interested to hear Lisa Hudson's opinion on these new changes.

This article discusses how Whole Foods is trying to position itself as a go-to grocery store. Do you think this is a good move for Whole Foods? Do you think their position as a organic and higher end health only grocery is a better position for them?

I think loyal customers will recognize that the brand is capitalizing on helping a community grow. I think it will help the brand because it's consumers are interested in helping the community and creating sustainable environments.

I think this article is very interesting because I had the same thoughts when learning that Whole Foods was expanding into these new areas. Since Whole Foods is considered a high-end grocery store, it really made me question what its marketing strategy actually is and if they are making the right decision by entering into these markets. I truly think this will be a challenge for Whole Foods because they are dealing with a market that is not truly its target market, but if they succeed I think this will strengthen Whole Foods' brand more than any other grocer.

This article talks about pricing techniques, and in particular promotional pricing for Abercrombie & Fitch. It talks about how the recession affected how Abercrombie priced items. It talks about the rationale of promo pricing.

I agree with Brock's comment. With the trendiness of Abercrombie and Fitch dwindling, the popularity of this store has gone down. As we have seen with many different trends, the less popular it becomes, the less people are willing to pay for these items. I think it would be in Abercrombie's best interest to rethink their pricing strategy, the time for that is now. Not only is the popularity diminishing for this retailer, it has also been under fire recently with the sizing issue, which has skewed customers perceptions even more.

Easy to agree with Brock and Kyle, there was a missed opportunity. It seems like they were holding on too closely to their image and not worrying about how a loss of interest would really impact them. I feel like it was management that had been there and done things a certain way too long that when change was needed they were too comfortable with their current plans and feared change. If they had just seen that price promotions were beneficial and gone into it at first with their "calculated" approach then they could have had a much smaller hole to dig themselves out of. I also didn't see why, if most of the other stores were using pricing promotions to counteract the recession why they thought their image would be tarnished. If it was a uniform movement then their image would stay relatively the same.

Wow - absolutely loved this article! Even though it started with discussing the death Rosaila Mera, the article totally turned the bad news around and focused on 6 amazing facts about Zara. I think this article did a great job of turning the upsetting news into something that left a positive outlook on Zara.

Yes, Zara is another example for a brand which made it without spectacular advertisement to the top of the world. I have the feeling in Europe (or at least Germany and the Netherlands) Zara is even bigger. It is one of the few apparel brands which we talk about in class that I actually know. I do agree that the design of a lot of apparels in the store looks similar to other known brands, though.

This is really interesting! It really highlights the importance of PR for a company and how placement in a highly visible can really increase company sales and provide marketing for a company at little to no cost.

Really interesting article about how our favorite fast food restaurant really responds well to the socio-cultural environment and adapts there products and presentation to win over the population- including famous chefs in this case.

What stood out in my head was the woman who was offended by the breading. Rather than taking this new food item as an insult, I think that the she should realize the efforts McDonald's makes to accommodate peoples' needs. Yes, it is not the same as homemade or some bakeries, but it is up to the French people to know the difference. McDonald's is only trying to create a low priced food that appeals to people considering the hard times that they have had.

Fantastic article. One important thing to remember for their new campaign however, is to remember the relevance of those commenting on their products. It's awesome that they were able to have the acceptance of a world-famous baker, but it would be even more influential if they could analyze cultural trends within France to see who really has an impact on the people. Is it this world known baker? Or, the friendly baker down the street. If they could grab a combination of positive expressions about their baguettes and other products, McDonald's could produce a positive message that would be received throughout various demographics of their target markets.

I like it! I want to be recognized, greeted, and assisted if I need to be. I can see where some people may feel uncomfortable but employees should be trained when to know when a person wants more help or to be left alone.

I find this kind of stuff extremely interesting. I honestly like that stores can track me like this because this means that they are more likely to send coupons and deals my way for the things I want to buy. I also think this is a great way for stores to get the perfect layout of their store by seeing where certain demographics walk around.

This is significant because it has implications beyond just marketing to consumers. The question is, how far should we trespass into citizens (aka customers) rights in order to improve the customers experience? This isnt JUST another marketing ploy, it's an experiment in eroding consumer privacy... and it's working. Marketers realize how little consumers are informed of their own behavior and by association they realize lengths to which they can go. But as privacy erodes, what do we really gain? Sure, it's great they can send us coupons and build our customer profile, but did companies consult the consumer and get consent to do this? Is this data collection all passively done because companies know the taboo behind privacy issues? What does this type of intrusion open up in the future? I think this is seen as simply "the way things are" because we are all desensitized to businesses (and governments) violating the privacy of information. I would like to point out that historically when masses of people in power simply accept things the way they are that's when really really bad things happen (slavery, child labor, exploitation, etc). Passive accumulation of this information seems to me complicit with those who actively accumulate this information- they're both invasions. We must critically think about how allowing such invasions actually works to shape the physical and mental landscapes of our lives, are we actually prepared to deal with the consequences? So, while it may seem like this is just another marketing ploy, we instead should see this as actually another breach of private information which will continue to shape consumer behavior.

This is an article that gives advice on tactics that businesses should implement in order to create a positive follow up experience with customers after a purchase has been made. After reading the article can you think of any retailers that you have noticed that use any of these tactics particularly well or poorly?

These different ways to follow-up with a customer are fantastic. After delivering the goods, giving ongoing customer support is crucial to keeping the customer in your fanbase and to keep purchasing products from your company. The different ways to utilize an ancient tool (email) just goes to show that no matter how old a marketing tool is, it can still be effective.

I think a follow up is good and keeping a presence but it should have boundaries. I get the Xbox newsletter which gives new content and games added and also contests. It keeps its name running in my head and that makes me feel more involved. If I had an e reader though, I don't think I would like follow up e-mails about support, AN e-mail would be fine just to make sure the customer is used to the product and to outline the support they offer so I have something to refer to, anything past that, besides some news on new devices they are offering, would just seem annoying to me. If it is something available for them to seek out then my mind changes though. Using social media to "build the tribe" seems like a good idea as long as it is there to be sought out not pushed upon their customers in on-going e-mails.

This article discusses how apparel retailer Onward Reserve refines its e-mail targeting process in order to maximize brand exposure and increase consumer interaction. Do you think that e-mail targeting will remain relevant in the coming years and be an effective strategy? What other methods do you see retailers using to target particular markets and segments?

This is a clever idea. Not necessarily try to sell a product in every email, but more keep the consumer engaged as to what is going on the company. I believe this will help cut back on the number of customer getting annoyed by all the emails sent out by certain companies always trying to sell something.. I believe this method should be adapted by more companies.

I think that e-mail targeting will not remain a relevant strategy. I am already overwhelmed and overlook e-mails from companies. But, if there is an innovative e-mail or heading then my interest will be met. It depends on the content and how many times I receive e-mails whether or not I open it up.

This offers a good coverage on the ideas behind Location strategy.

I liked that the article pointed out the need for adapting their products to the areas that they expand into. Keeping a product standardized may not always be the best option when expanding into another country/location. Adapting products to fit with the culture and lifestyles of those around is key.

Thought this image was a great representation of the different channels of distribution. This is the original article: http://www.smallbusiness.wa.gov.au/marketing-place-distribution-strategy/

Exciting to know that college students began the company and have stuck to their values ever since. It is interesting to hear that they prefer art students over business students (us). Makes me think that we should become more well-rounded so that we are not stereotyped as only "analytical" which the article mentions at least twice. We can be creative too!

Thank you for this article Kara! Urban Outfitters is one of my favorite places to shop and I had no idea that it was started and run by college students--I think this is one of the great ways that they are attracting their target market. This was my favorite sentence from the article, "If a manager sees an old wooden crate on his way to work and thinks it would look good in the men's section, he can bring it to work and put it on display." This is wonderful, just wonderful! Going back to what a lot of you have already mentioned, their unique layout and atmosphere is what brings people in and creates that overall "experience" for the customers.

Great article Kara! I agree with Lina and find it very interesting that they prefer to hire art students versus business students. Although I am not a very artist person this article makes me wonder if students should take more classes in the arts along with our core curriculum. I have never actually entered or bought anything from urban outfitters so I cant say I truly understand what the stores look like from a layout stand point, but it is very interesting that employees are allowed a sense of freedom when it comes to creating an ascetically pleasing store. I think it will be interesting to see if more businesses learn toward hiring more artistic individual.

What a great target market! Never thought that by targeting mothers that they would continue to shop at the same location they bought bottles from. Crazy to think how companies can know so much about someone! Poor father.. but I think Target moved in the right direction by making the coupons more random and less direct. This is definitely something to take into consideration when I, or anyone else for that matter, finds marketing jobs. Great article! Loved the insight.

What a great article. I had no idea the amount of data acquired about its customers. Like Lina and Kyle said it is a good idea to send customers a wide variety of coupons versus more direct coupons, which makes me feel a little less creeped out that target knows so much information about us. It is an interesting look on how companies acquire data to bring customers in and transform them into loyal target customers .. especially interesting to see that mothers are targets main target!

Target is one of those stores where I walk in needing one or two things and leave with five or six items I had no intention on buying. This article really shows how innovations in marketing research can boost sales immensely. I agree with Lina, Kyle and Sarah in that it is good that the coupons are more random so Target does not scare their customers away. I am interested to see what Target does their research on next because they have had such great success with the moms to be.

Interesting guide for retailers during economic downturns. Written in 2008 but still applicabel. If you are too lazy to read 6 pages, read at least the tips for retailers on p.6 ;-)