Tweeter Case Study

At Costco, VIZIO relied extensively on consumers to purchase their product without any assistance from salesman whom would either influence or steer the consumer during the sales. Because of their low brand awareness, they strategically placed their products on conspicuous display, right at the entrance at the stores, to catch the customers’ attention, but more importantly because their shoppers fell into the market segment target by VIZIO, 35+ years, wealthy, and with disposable income.

Allround has many advantages over its competition in the industry, including higher brand awareness, highest market share, lower fixed costs, and a relatively high conversion ratio. A market survey detailed in Exhibit 1.5 of the case shows that the Allround Brand has brand

Similarly, buyers in the Performance and High End segments feel that performance and size are also important but the product’s reliability is most important to them. We chose to operate in these growing markets because neither segment is price sensitive and they are more concerned with overall quality and innovation which is our company’s underlying focus. Our objectives will be achieved by relying heavily on our sales and promotions team as well as increasing our spending in research and development to ensure the best, most up-to-date products for our customers. Brand awareness and accessibility is vital to our company because we are now competing against four other competitors in the same industry and customers need to be able to quickly recognize our brand of sensors.

9. Imagine that you are buying a new computer and comparing different brands and prices. Describe at least two nonprice competition factors you might consider when making your decision. (2-4 sentences. 2.0

3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (1-6 sentences. 3.0 points)

Each profit center should have the right to determine it’s own pricing for it’s products.

All segments are critical for the implementation of our company’s strategy because we chose to be broad cost leaders. Cost leaders maintain a presence in all market segments by focusing on low production costs and competitive pricing. With that in mind, one segment is considered to be slightly more important than the others: the low end segment. We will compete in every market segment, but this is one of the most important due to the fact that price is the main consideration of the buying criteria at 53% importance. Our costs will be much lower than our competitors which translates into a lower market price for this product, which is ideal for our customers.

They try and create brand preference where they prefer their brand over others because they are personally invested. Many companies try and reach a certain group of similar buyers by dividing them into market segmentations using one message platform, brandtech companies try and get their products to consumers in many ways using digital platforms. Social media is an easy way to get their products out to a variety of consumers. Red Bull is one more example of how this distributed form of marketing has been a success. They worked through YouTube having specific channels use their products in different ways. Thus, they gained 4 million subscribers. A good, solid product can be made or broken by its promotion techniques. Brandtech techniques have proven to be very beneficial for promoting products. I found this article to be very helpful and informative because there are so many ways to promote and sell products it is smart to know how other successful business go about finding their success. This article was well written and easy to understand because everything that was talked about was well explained with examples. I recommend this to article to others because it gives a different perspective over how to run a successful

as a service to the channel. It aims to help partners make the best use of this selfservice

From exhibit 13 in the case it is clear that Tweeter is price competitive in almost the entire range of items and models that it sells. In an objective model by model comparison (see appendix 1 for a sample comparison) Tweeter either matches or betters competitor 's prices. Further more when you compare quality and level of service and price paid Tweeter is cheaper than the competition.

Dealers want to make money on selling Techsonic's products. The projected margin for dealers needs to be 15% to ensure profits.

However, lowering the price decreases the overall profit of the market thus, non-price competition is most important win-win strategy for all the firm. As the game, does not allow us to make product differentiation, the other method that can increase the sales are advertising, product development and E-commerce enhancement. If these expenditures are below market average level, the firm can lose the market share.

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.

The supermarket wars has been increasingly frustrating for consumers as sometimes consumers tend not to know where to get the best deals, as they all advertise the same price and brands, in the UK companies such as Tesco and Asda advertise and sell the same products but also claim to low on prices for the customer satisfaction, but in fact they charge more when it comes to their own brands, looking in the telecommunication sector is clear that with the privatization of the telecommunications industry, the mobile phone industry experiences transformations that enhance the dynamics of competition.

He had a large amount of financial investment in an innovation to be sold and the first time around he did not succeed or come anywhere close to the prelaunch boast found in Time magazine. The magazine has a quote claiming the SHT would be the quickest product to reach $1 billion in sales after its launch. Mr. Kamen has begun to make moves with new hires, but he needs to step away and let professionals sell his product at a successful rate, as he has done with previous inventions. The value of professional marketers adjusting the marketing mix variables of price, promotion, place and product, for the SHT will surely be realized quickly with a noticeable boost in sales. One example of adjusting the marketing mix by these executives would be with price. The SHT could be “relaunched” at a new lower price (i.e.: $2,200). This new strategy would make the SHT a more attractive and realistic buy to the average consumer.