Tweeter Case Study

1159 Words5 Pages
Tweeter

Case Questions

1. Objectively and subjectively, is Tweeter price competitive? Why or why not?

Tweeter is an electronics store that pride itself on selling middle and high end goods. To see if they were price competitive, we would have to evaluate them with similar stores like Cambridge sounds waves as opposed to Walmart. Before APP in 1993, it would not have been possible to evaluate Tweeter’s price competitiveness since there was no systematic benchmarking present. However with the APP, objectively, I think that Tweeter did try to price their goods competitively with other similar goods. The APP strategy showed that their prices were competitive even in comparison with cost leader competitors like Lechmere. This
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Customers now perceive Tweeter as expensive but not more than its other competitors. By changing the marketing mix and including the buyer guide, it tells the customers who are interested in high quality, the features of the products and ensures them that they are taking a calculated decision. These customers who are particular about the product now appreciate Tweeter’s efforts to provide technical advice and provide fair advices about the product through the guide.

Doing all these helps change the customer’s perception of Tweeter of being expensive, it is trying to convey to customers that their price on the high quality goods are matched to its other competitors. Its unique selling proposition of “high quality and customer service” is embedded in the minds of its customers and that’s how they are differentiating themselves from the other retailers. I think overall, their new marketing strategy really fits well and targets their niche market of “Quality/Service” customer. Such customers are interested in premium products yet concern about price and I think Tweeter’s marketing message and marketing mix really targets those customers.
I also think that the buyer’s guide is Tweeter’s great way of establishing itself as the tech-go to and standard for tech products, similar to Kelly’s blue book for cars. Also, the buyers guide is a great way to establish brand image and relationship between its customers and
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