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Tweeter Case Study

Satisfactory Essays

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Purpose:

Tweeter etc. founded by CEO Sandy Bloomberg in 1972, is a specialty retail store of middle and high end audio and video consumer electronics. Between the years 1991 to 1996, it expanded from a 13-store chain with $ 35 million annual sales to a 21-store chain with $ 82 million in annual sales. To sustain its market share amongst the highly price-focused competitors of New England in USA, the company had adopted 3 major promotional strategies. Unfortunately, Tweeter’s long-nurtured consumer image as a highly specialized and expensive retail outlet still remained unchanged, and the company was forced to formulate the “Three Pronged Attack” strategy in 1993. However, the refined …show more content…

Their advertising slogans should change to ‘Get the best deal out of it’ from ‘We don’t carry all the brands, only the ones that count’.

Action Plan:
Changing an already built positioning is not very easy to change. The perception in people’s minds can be overdrawn by using i. New TVC and radio ads (like the new Blackberry ad) ii. Interesting outdoor & print ads.

c. Outdoor Advertising:
Rather than spending intensely in print, radio and television advertisements, Tweeter should allocate a portion (25%) of their marketing budget in outdoor advertisements in the localities where they have their stores.
Tweeter should go for outdoor advertising because i) its customers are people living nearby their stores and ii) it is easier to inform them by these outdoor advertisements and it is cheaper. However, they have to use the broadcast and print media as well (50% of total marketing budget)

Action Plan:
These outdoor advertisements can be in the form of: i. Advertisements in bus stations and also on the sides of buses. ii. Selectively putting billboards in places of high exposure (in squares and busy roads) iii. In front of shopping carts in big grocery retail stores. iv. In subway terminals.

d. Controlled Sale Promotion:
Rather than abandoning the sale strategy Tweeter should introduce sale promotion in a controlled manner. i. There can be a quarterly sale offer but the

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