Module 5 case assignment Example | Topics and Well Written Essays - 1000 words

Module 5 case - Assignment ExampleThe new strategies aim at eliminating procession of products and focuses on selling the recognized brands. The promotion based determine strategy was initially adopted by the friendship but latter the company undertook mark-up determine strategy which made room for promotional discounts. However, the new everyday pricing strategy helped the company to set prices at a lower range and eliminated the regard for higher sales price.There are several changes in the pricing structure of the company as the prices no longer ended in ten-fold number such as $9.99 etc rather whole figures are used for the products. The price tags of the products employed only one price and did not print the retail price of the manufacturers. This trend of printing the retailing price in the product provided greater comparison pertaining to the amount of product that should be sold. The retailer has made pregnant changes in assorting merchandise (Hess, 2011). The company focused on its mini-stores within larger ones and evaluated that the mini-stores are selling higher than the larger one.The new pricing strategy neer gained any attention and thus it is unsuccessful in making any change to the situation. The consumers are not happy with the pricing strategies and the sales of the company declined steadily as time passed. The company encountered a loss of $3.3 billion in the first year of sales of Johnson plan. The amount increased as it approached the second year. The yearbook revenue of the company in 2011 declined 25% a sharp decline after 1987 (Henricks, 2010). As a result of the decline the CEO announced that the company will not use the everyday pricing strategy anymore and would return to the previous coupons and discounts and would focus on advertised sales (Henricks, 2010 Hill, 2010).1) Everyday pricing is not correctly executed by the company as it sells many products and does not concentrate on a unique one. Everyday pricing is