• This report is written to determine whether Automatic Price Protection introduced by Tweeter will be a successful strategy to keep the electronic store able to compete in intense competition of electronic store. The trends of APP refunds are increasing every period until it reached cumulatively $783,863 in December 1995. Tweeter market share is considered very low in New England Market. Tweeter was not able to compete with market that has bigger market share and offer cheaper price.
• Causes that lead Tweeter to implement APP will be discussed, as well as other problems that are threatened Tweeter condition.
• As solution to reduce the issue, the writer recommends Tweeter to fix their APP strategy and some strategies to increase Tweeter
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They did not use TV advertising in 1993 and they spend second highest on TV advertising in 1996. Lastly on radio, they increased the uses of radio advertising by three times ($375 to $2,750).
• Automatic Price Policy o Tweeter established Automatic Price Policy for the purpose to promote that Tweeter is price competitive. o APP is a strategy to enter price-conscious market, by offering a refund scheme that allows customers to claim refund if after they purchased an item in Tweeter, and the customer finds in a local newspaper that the product they have bought is being sold cheaper elsewhere, they can claim a 100 percent refund for the difference. o However, the APP launched by Tweeter also followed by other retailers such as Crazy Eddie, Newmark and Lewis that offer higher percentage of reimbursement for the price gap as well as longer duration. o Cumulative amount of refunds is $783,863 (large amounts of money) also can be proven that Tweeter prices are still more expensive compared to their competitors (exhibit 12). o Based on exhibit 12, we can see that APP program is very costly, that the accumulated rebate reached almost $800,000 (exact amount $783,863 refunded to customer). APP is considered heavy additional expense for Tweeter in their bad financial condition. o However, in exhibit 5, we can see there is a slight increase after Tweeter implement APP = ((3.6%-2.7%)/2.7%)) =
TGT’s share price currently traders around $71 a share, down almost 14% from its 52-week high price of $84 a share. Targets stock also appears undervalued considering its lower valuations compared to the industry peers. TGT’s stock price is currently trading around 13 times to earnings, when the industry average is hovering around 17 times.
5. An analysis of the individual customer accounts suggest that TFC’s current pricing model is ineffective. They are undercharging an alarming number of their customers thereby reducing their overall profitability. Based on this information, managers will hopefully elect to implement the services based pricing model so that customers are charged based on the services they are actually consuming. Ideally, changing the current pricing model will resolve the issue of customers reducing profit by 140% and 60% (Exhibit 8, numbers 3 and 4). If there are still profit draining customers, management should revisit and assess accordingly, either further increasing fees to those customers so their contribution is positive, or perhaps dropping these customers to increase overall profitability.
TechMall’s revenue streams are rather simplistic. They receive a $750 one time set-up fee from all new merchants added into the TechMall system and a $50 statement fee, or maintenance fee, per month from all members. In addition, they receive a fee on each sales transaction, which is variable based on the dollar volume of the merchant’s transactions. TechMall’s standard pricing schedule indicates this revenue stream to be in the form of a 2% commission on all items sold by member merchants with a maximum commission receivable of $200.
US News gives this following numbers, CBS and Turner Broadcasting gain more than $1 billion all in favor of a $700,000 ad rate for a 30 second commercial placement.
Donors who contribute $300 or more to the General Javelina Club Fund will receive an invitation from the Athletic Director to purchase T-Room passes based on their level of giving. Each pass is $50 and will provide that individual access to the T-Room for the 2016 football season. Here is the breakdown below:
Runaway Discount ( the Company) in an effort to increase its sales implemented a customer referral marketing scheme “Refer-a-Friend Program” to increase its customer base. Under this program a $25 credit will be provided to existing customer who refer their friend to the company and referred friend purchases merchandize from the company. The existing customer can apply this credit of $25 to their future purchase from the company.
For the diversified shopper, short on time, Q-saver provides the knowledge of savings and variety with the convenience of different stores and products. Q-saver is not affiliated with just one or two stores. The smartphone and tablet app provides access to a wide variety of stores and products, providing access to current sales promotions, brand coupons, availability and so on. The objective is to position the app in the coupon app industry to best serve the market segments concerned with time management, savings and variety. Q-saver differentiates itself from competitors by providing access to a wide array of different stores’ information as well as sales promotions, providing guidance to what promotions can align with what manufacturer coupons to get the best savings, providing services such as scan and compare, the comparison of savings with consideration of other stores and so on. The application will constantly be evolving to better serve the well-informed shopper; requesting feedback and most importantly, acting on the feedback to provide the best product possible.
That being said, since these rebate apps compete against one another, they often offer the same deals during the same
All your coupons in one handy little app? It’s like Target wants you to get stuff for really cheap.
In conclusion, NutraSweet could launch a price-war in Canadian market, because of its size and presence in America, but should compete in Europe with its less comfortable position there than NutraSweet beneficiating from the DSM strong presence in Netherlands, Germany and others European Countries.
So far APP has been successful as a retention and acquisition strategy. From 1992 to 1996 Tweeter 's core customer market share has grown from 19.6% to 25.2% (Appendix 8 Tweeter). By contrast with the exception of Circuit city (Appendix 10 Circuit city) over the same period the market share for this class of customer has increased by a smaller percentage (Appendix 9 Lechmere) or actually declined (Appendix 11 Other retailers). Since Tweeter has retained its customers and acquired more customers over the years I would say the strategy is applicable and successful for both functions.
Dealers want to make money on selling Techsonic's products. The projected margin for dealers needs to be 15% to ensure profits.
I would like to introduce you to Twitter Inc., a modern and popular form of self-expression on the Internet. It provides users with a plethora of services including Twitter, an application that allows the user to share and distribute content to their followers. The company also owns Vine, a mobile application where users can create and share short looping videos, and #Music, another mobile application that
Business like Amazon wants to make buying item from their business easier for customers. This is why Amazon offers E-retailing which gives customer option to go shopping online. The internet has had impact change on consumers shopping habit as shopping online has numerous advantages which is why online shopping continues to gain popularity. Some of the advantages of E-retailing is that it’s convenient as consumers are able to go shopping at home which could help them save cost on travelling and also gives consumers an option to compare prices of different products as there are wide range of products being sold online.
70% of Tweeter customers are in the Quality/Service Type but only represented 10% of total market in New England. By having most of customer base in smallest market segment Tweeter needs to create a marketing strategy to satisfy its current customer base in order to become 100% loyal. Value proposition and differentiation will be key drivers in order to keep current customers satisfied. 20% of tweeter customers are price-biters, so these customers could be potentially lost to lower-cost perceived retailers. With APP introduction Tweeter could overcome price competition by offering current customers the peace of mind that they will pay the lowest price without the need of lowering retail prices and continue to offer great customer service. This strategy works perfectly because customers will not see cheap retail prices which could trade down Tweeter’s image of being a high-end quality retailer to a low cost cheap retailer.