Marketing and Tweeter

1390 Words Jan 12th, 2011 6 Pages
Case Analysis
Tweeter etc.

Company Overview
Tweeter etc. was founded in 1972 by Sandy Bloomberg in Boston to sell high-end stereo components. The current portfolio of the company consists of brand stereos, television, car radios and car phones. Tweeter has recently witnessed a healthy growth in its financial performance. Sale has almost doubled in the last three years reaching $82.3 million in FY 1996. Its sales per store has increased by 50% and number of stores increased to 21 from 14 during the same period.

The Making and Current Scenario
During its formative years, Tweeter gained the reputation of being the retailer of high quality, high-end audio components and video equipment. They had a knowledge able sales force providing
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The starting price for its products as communicated to the consumers by ads was well above the other retailers. Thus, consumers being price sensitive thought of Tweeter as the store selling high priced goods. Even though the middle and high end stuff are sold at around the same prices as in all stores. The lack of awareness along with the price advertising has made the Tweeter appear more costly and specialized for high end customers and thus driving consumers away. As can be justified Tweeter’s 70% sales was due to Quality/Service customers which look for high levels of product quality and customer service due to its image. As can be seen from the survey, the awareness level of people about APP was very low. Only 32% of the respondents could define it. Only 22.1% of the respondents knew that Tweeter offered the APP service.

Concern 4: Is Tweeter targeting the right customer sector and should it continue with APP?

The price bitter and the quality/service customers together account for 90% of Tweeter customers. It lacks behind in Entry level and convenience customers. This can be attributed to the various misconceptions about the store in the market such as Tweeter stocks high end goods only. This has led to Tweeter running in losses during early 1990’s. Though, it has shown some improvement after that due to the inclusion of APP.

Concern 5: Is Tweeter actually price competitive among its competitors

Tweeter is price

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