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Case Solution of Tweeter

Essay by   •  March 27, 2013  •  Case Study  •  908 Words (4 Pages)  •  3,289 Views

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Tweeter is a relatively small and upscale retailer of consumer electronics based in New England. From a strategic standpoint; Tweeter etc. makes several departures from its brand profile during its lifetime. Its inception as a mid-range specialty store for consumer electronics was succeeded by inclusion of high-end lines and a subsequent dip in the portfolio value by including "sale" oriented campaigns and catering to the "entry level" market. Though the entire process was stretched out over a period of two-plus decades its brand positioning and thereby the brand profile was seriously shaken. Hence, Tweeter needs to rethink its position strategy and come up with a more consistent idea for its marketing mix, instead of shifting from one pricing strategy to another that always resulted as a direct consequence of its competitors' success. On the other hand, the Darwinism in the electronics market as a whole is one which Tweeter should separate itself from. The company holds no competences in price leading and should avoid using it as a competitive tool altogether.

Key Issues:

Inconsistent positioning and a bleary target market which resulted from the act of serving to everyone in the market.

Inconsistent positioning -Previously with powerful slogans like-'We don't carry all the brands, only the ones that count' and 'some hi-fi salesman can sell you anything, and often do.' Tweeter was the name of a brand which offered high end products and highest level of customer service possible with the help of some of the best salespeople who had a deep knowledge about the products as well as customer`s needs. Tweeter`s loyal customers were happy to pay the premium as they thought the quality and service they were getting were worth the extra money. But to survive among the competitors, Tweeter started promotions like-"APP-Automatic Price Protection" and "Everyday Fair Pricing". This created a rather negative image on the minds of the customers as quality service was their primary concern not price cuts.

Bleary target market- After a certain time, Tweeter started to target broad range market which consisted of all the market segments. Previously they sold only to the niche market with high-end products, now they have mid-levels and even entry level products. Despite having the quality service, the situation did not improve. The new customers still perceived Tweeter as expensive while the premium customers thought that they are giving up on quality due to the various price cuts and price schemes involved.

Marketing Strategy and Action Plan

Logic dictates Tweeter takes a step back and consolidates on the market where it is most competent.

 The BRAND PROFILE to be is as follows:

* Description; A specialty store of consumer electronics that delivers--top notch service and the highest quality.

* Benefits to customers will be the assurance of their purchase being sound and superior.

* Target Market: SEC B+ and above, psychographic profile; Q/S consumers of electronics

* Competitive Differentiation - an empowered brand that delivers on its promise of quality, making no compromises for price.

* Pricing - Premium, operating in a niche that is being increasingly underserved thanks to the acquisition of Bryn Mawr and



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