Objective: To analyze the existing marketing strategy and devise a new marketing strategy Situation Analysis:
Tweeter currently has two major points of difference with its competitors. * The firm offers good quality products and excellent service. This value specifically targets the Quality/ Service type of customers, who are price insensitive. This POD has the disadvantage of overshadowing the presence of low end competitively priced products in Tweeter’s portfolio, as it conveys the perception of Tweeter being a premium store. * The Automatic Price Protection system, though a very highly publicized POD, does not appear to have had a significant impact. Data from the Bryn Mawr acquisition, as well as the low awareness score obtained from the Consumer Survey, indicate the increase in sales of Tweeter to be due to the change in the product mix, and not APP. Issues Faced:
* Entry of “Nobody beats the Wiz” in the local market * Large electronic superstore which may cater to Entry level consumers and price-biter segments * May impact the growth of Tweeter as Tweeter is already unable to pull more customers from other segments * Around 77% of consumers are unaware of Tweeter’s APP plan * Bryn Mawr followed Tweeter’s APP strategy, but did not succeed * Difficult to attribute the sales increase of Tweeter to APP program Recommendation
* Medium to high product lines
* Provide additional service benefits such as free product service and repair for a limited period * Placing
* Relocate the retail outlets to the shopping malls or to a location where people shop frequently * Pricing
* The premium products are already offered at competitive prices * Promotion
* Advertisements in radio, TV, direct mail, product catalog * Regular price protection strategy can be eliminated as it does not create an impact in consumers’ mind that Tweeter...