Tweeter

TWEETER ETC. (Pre- Case Analysis)

Marketing Management - II

Tweeter etc. case is analyzed on the following five points.

What is the customer perception of Tweeter's prices relative to its competitors - i.e., do customers think Tweeter is price competitive? Why or why not? Is it actually price competitive?

Tweeter is a specialty electronics store, which dealt in middle and high end stuff. The consumers are more interested in price and as the starting price for its products are well above the other retailers advertised starting prices. But the middle and high end stuff are sold at around the same prices in all stores. But the product offerings made by Tweeter and the advertising has made it price uncompetitive. The lack of awareness along with the price advertising has made the Tweeter a more costly and specialized to the customers and driving away from Tweeter when they saw its ads.

Who are Tweeter's primary customers? Who is the main competition for those customers? Are these the right customers to be targeting?

The price bitter and the quality/service customers together account for 90% of Tweeter customers. Tweeter targets a niche segment, to be sustaining growth in that segment amongst the low cost players and mass marketers should be synonymous with the customers for hi end systems. The too-expensive tag attached to it has to be justified and the awareness to be created, Tweeter sells reliable and latest technologies unlike other retailers.

Think about buyer behavior for electronics. Does this behavior fit with Tweeter's pricing strategy? How is APP designed to alter that behavior?

Customer usually visit two to three stores before they buy a product for a better price. Lechmere, Circuit City, Wiz and Tweeter are the main competitors in electronics business. Lechmere customers usually visit for better products and reasonable prices. Lechmere is in direct competition for Tweeter as its major customers are Tweeters target customers. APP was undertaken so that Tweeter does not loose out customers on the basis of price. In some aspects it has helped to increase the customers and revenues, but as it has paid around $798,000 as part of its APP program the management has to rethink about the pricing and may not be price competitive.

Is APP better as a customer acquisition strategy or a customer retention strategy?

It is rather a customer retention strategy, as the