Tweeter Case Essay Example

as this segment consists of only 10% of market, Tweeter should also reach out to the ‘Price Biter’ segment by marketing their APP policy.

As 20% of their customers fall in this category, which commands 15% of the entire market, this is another segment that they should tap on. With the use of APP, Tweeter would be able to offer the “absolute best deal” on mid to high-end electronics, which suits this segment’s customer profile who turn to quality after being assured of the good deal The role of APP is primarily to change the perception of Tweeter amongst its customers, from the premium-expensive brand image to the shop that offers the best prices for high-end products.

This is important as even Quality/Service customers perceive them to be more expensive than their rivals, seen by how 1/3 of their customers come to Tweeter to figure out what they want before going to other shops to get a better price. Another role of APP is also to etch onto the minds of customers that they would be getting the best deals for high-end electronics, and if their prices were not lower, they would issue refunds automatically, which makes it attractive for both customer segments. Once aware of the competitive prices offered, the “Price Biters” would turn to Tweeter due to their service and quality provided.

3. Has APP been effective? Based on the above analysis, what are the necessary factors for APP to be effective? APP has been ineffective. Despite the doubling of sales, there are no clear indication that this was brought about purely by APP or if it was due to the increase in stores. Though implemented to

differentiate itself, results shows that it has failed, only 22% of customers surveyed were aware of Tweeter’s APP policy and only 4. % of customers perceived Tweeter to offer lower prices than its competitors. For APP to be effective, Tweeter has to improve marketing efforts to highlight the automatic refund process that gives it a competitive advantage. Customers need to know that if Tweeter’s prices are not the lowest, they would be automatically refunded, a service not provided elsewhere. Tweeter also needs to educate customers in the industry on the benefits of APP as 40% of customers still do not know about it or think they are similar to its competitor’s programs.