504 Tweeter Case Report 
Executive Summary
Problem Statement
.
Tweeter etc. Company was a specialty store famed for its excellent customer service and products quality of medium to highend products in New England. In order to remain its brand image and avoid price war, Tweeter applied “Every Day Fair Pricing” strategy, launched Automatic Price Protection and changed Market Mix. And then the market share of Tweeter increased from 2.8% to 3.6% from 1992 to 1996. In this period, only instituted with Price Protection, the biggest competitor Lechmere, a heavy use of promotional sales superstore, owned 35.6% market, and the second biggest competitor the market share of Circuit City jumped from 0% to 18.6%. What’s worse, as the entry of Wiz, another nationally recognized discount retailer, may threaten the playing field. And the query of APP as it failed in Bryn Mawr Company, we want to figure out whether APP is an efficient strategy to ensure Tweeter’s sale growth, and what other strategies Tweeter could use to compete with large discount retailers such as The Wiz and avoid price war.
Strategy Recommendation.
From the increase of market share from 1992 to 1996, we indicated that the highend products still been need by some customers. As Tweeter is the only specialty store in
New England, we suggest it continue develop the highend market. However, the success of Lechmere and other electronic superstores and the entry of new competitors which also from mid to lowend market were huge threatens to Tweeter etc. We recommended Tweeter to entry the lowend market by opening “Tweeter Outlets”. Because the success of APP, we strongly insist to use it in the future, and applied more promotion methods on it. At the same time, launched more promotion methods to the products themselves, and enhanced the communication between Tweeter and customers.
Market Analysis
In 1996, consumer electronics industry had a $31 billion of manufacturer sales in United States with a
Problem Statement
.
Tweeter etc. Company was a specialty store famed for its excellent customer service and products quality of medium to highend products in New England. In order to remain its brand image and avoid price war, Tweeter applied “Every Day Fair Pricing” strategy, launched Automatic Price Protection and changed Market Mix. And then the market share of Tweeter increased from 2.8% to 3.6% from 1992 to 1996. In this period, only instituted with Price Protection, the biggest competitor Lechmere, a heavy use of promotional sales superstore, owned 35.6% market, and the second biggest competitor the market share of Circuit City jumped from 0% to 18.6%. What’s worse, as the entry of Wiz, another nationally recognized discount retailer, may threaten the playing field. And the query of APP as it failed in Bryn Mawr Company, we want to figure out whether APP is an efficient strategy to ensure Tweeter’s sale growth, and what other strategies Tweeter could use to compete with large discount retailers such as The Wiz and avoid price war.
Strategy Recommendation.
From the increase of market share from 1992 to 1996, we indicated that the highend products still been need by some customers. As Tweeter is the only specialty store in
New England, we suggest it continue develop the highend market. However, the success of Lechmere and other electronic superstores and the entry of new competitors which also from mid to lowend market were huge threatens to Tweeter etc. We recommended Tweeter to entry the lowend market by opening “Tweeter Outlets”. Because the success of APP, we strongly insist to use it in the future, and applied more promotion methods on it. At the same time, launched more promotion methods to the products themselves, and enhanced the communication between Tweeter and customers.
Market Analysis
In 1996, consumer electronics industry had a $31 billion of manufacturer sales in United States with a