...Tweeter etc. Summary: Tweeter should focus back on its key target customers and get rid off the APP program. In response to the increase competition of low-cost retail stores, Tweeter launched the APP program to remain competitive and gain market share. Although initially successful, the APP strategy miscalculated the long term down side of it. The APP was created to help Tweeter compete on price, which is something that is not part of the company’s core competences. As a result, it lost focus on the 2 customer segments that were loyal to it. In addition, it became a financial burden as Tweeter had to send out checks back to customers more and more. Finally, the image Tweeter had developed over years was a high quality, good services company. It was viewed as a more upper scale price. Even with the introduction of the APP, customers still thought that Tweeter had higher prices than the competition. In order to regain sustainable growth, Tweeter must eliminate APP, rationalize the product portfolio, expanding the unique line of products, and continue focusing on the target segments of Price Biter and Quality/Service Customer, which they currently own 20% of the market and corresponds to 90% of their customer base. Customer Variables: Convenience, price and quality Market Size: Consumer electronics was 30 Billion in the U.S. New England market is 5% of it, which represents. $1.5 billion. Customer Segment analysis: 1. Entry level customer (need lowest price) – shop...
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...mid-to-high end electronics, their products were sold at a premium. This resulted in Tweeter being identified as a high priced retailer in the eyes of consumers. However, as the industry grew, a large number of low end retailers entered the market; this created an increasingly competitive environment, as the economy made more consumers conscious of price. Eventually, Tweeter’s profitability began to suffer. They responded by introducing some low-end brands to their product list that were sold at comparable prices to other larger competitors, but because Tweeter’s perception was still associated as high priced, many consumers’ habits remained unchanged. The company again responded, and in August 1993, they eventually changed their strategy to one in which they continued their commitment to high quality and service, but shifted to an “Every Day Fair Pricing” strategy (P. 7) Tweeter’s Automatic Price Protection was introduced. This guaranteed that consumers would receive a refund if a competitor advertises the same product at a lower price. Ultimately, the shift led to a boost in their financial performance. “Sales almost doubled in the three years since the institution of the new strategy, from $43.7 million in FY 1993 to a projected $82.3 million in FY 1996.” (P. 8) One can easily argue that their new strategic action caused consumers to realize that they were a major price competitor. Tweeter is best-suited to serve the Quality/Service consumer, this group desires the best...
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...Tweeter Inc. Case Report 1. Objectively and subjectively, is Tweeter price competitive? Why or why not? Since the company was founded, Tweeter positioned itself as a retailer of high quality, high-end hi-fi and video equipment offering high quality of customer service. At the very beginning Tweeter didn’t offer low price electronic devices and wasn’t actually competing with companies such as Lechmere or Circuit City who became its competitors few years later. However, after the introduction of Automated Price Protection (APP) Tweeter proved to be price competitive. As we can see from Exhibit 13, Tweeter’s prices for many overlapping products were lower or the same as its competitors’. The results of APP also showed that Tweeter’s prices were competitive even in comparison with cost-leader competitors. Even though Tweeter’s prices were objectively competitive, customers continued to perceive them as being higher than competitors’. The Tweeter’s image of a premium brand remained unchanged to public. A focus group conducted by the company confirmed that 4 out of 5 people view Tweeter as being more expensive than the competitions. The focus group also showed that 1 out of 3 consumers would come to Tweeter to figure out what to buy and then go to Lechmere or Fretter “to get there a better price.” Hence, Tweeter is not price competitive when looking at the subjective value. Ideally, Tweeter needs to convince its customers that it is the low price leader. However, with its...
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...Tweeter etc. Situación del caso - Fecha: 16 de Agosto de 1996. - Tweeter es una pequeña tienda de electrónica de gama alta en Nueva Inglaterra. - Evolución de la compañía por años: 1991: 13 establecimientos / ventas 35 millones USD 1993: 14 establecimientos / ventas 40 millones USD 1996: 21 establecimientos / ventas estimadas 82 millones USD - Aplica desde 1993 la estrategia comercial de “Protección Automática de Precios” (APP), que consiste en revisar la prensa local y devolver automáticamente por correo la diferencia a los clientes que en los últimos 30 días hubieran comprado un artículo y apareciera en la prensa anunciado por la competencia más barato. Suceden dos acontecimientos importantes que preocupan a Tweeter: 1) El 16 de Mayo de 1996 Tweeter adquiere una participación mayoritaria en Bryn Mawr Stereo (BMS), situada fuera de Nueva Inglaterra. BMS había aplicado en 1995, a instancias de Tweeter, la APP sin el éxito obtenido por Tweeter. 2) El 16 de Junio de 1996 The Wiz abre una tienda de electrónica de 50.000 pies en Boston, zona de Tweeter, siendo la segunda tienda de las diez que tiene planificadas en Nueva Inglaterra y la primera de el área metropolitana de Boston. The Wiz es una tienda económica, es decir, de bajos precios. Mercado de electrónica en USA Ventas en fábrica - Año 1995: 30.000 millones USD, en los últimos 10 años las ventas han crecido a una tasa compuesta del 5,6%. - Año 1996: 31.914...
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... Tweeter, etc. is an audio/video company that faced pricing strategy problems in 1993 that made the history books for adverse pricing strategies. Sandy Bloomberg formed the company in 1972 and the company faired well in the 1970’s and 1980’s. It grew to 13 stores when they implemented the Automatic Price Protection pricing strategy. This strategy nearly drove the company into bankruptcy. The company still faces unremitting problems which this paper will address. This is our proposal as RU Consulting, L.L.C. First, we will examine how the company evolved. Second, an analysis of the company’s strengths, weaknesses, opportunities and their threats will be considered and an analysis of their corporate strategies will be given. Third, we have included our solutions and recommendations for this company. Last, we would like to give our recommendation to you as the stockholder on what you should do with the stock you are holding. Tweeter started out as a small retailer of high-end audio/video equipment right outside of Boston University. This store was a success and soon expanded into 13 stores through out New England. [1] It began to get a reputation for its excellent service and quality products and sales soared. However, in the late 1980’s, the bottom fell out of the electronic market and caused two things: price wars with local competition; and Tweeter then joined the Progressive Retailers Organization, in 1988...
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...Case Study of Tweeter Decision: APP would not continue to be an effective policy in the future. Instead, Tweeter may think about abandon the APP strategy and focus on high-end market, emphasizing ‘high quality and high service’. Several considerations about the decision: 1. Customer Based on the dimension of ‘price’ and ‘quality/service’, there will be 4 segments, which are ‘entry-level customer’, ‘the price bitter’, ‘the convenience customer’ and ‘the quality/service customer’. According to Herschman’s estimation that ‘the quality/service customer’ group accounted for 70% of Tweeter’s clientele though it only represented only 10% of the total New England customer base, which also far exceed the makeup of customer base of Tweeter’s competitors( 10% for Lenchmere and 15% for Circuit City). Thus, we can say that ‘the quality/service customer’ group is the core customer of Tweeter. And this group of customers pays much more attention to product quality and customer service instead of merely price. 2. Competitor The third largest consumer electronics retailer in the U.S, Wiz, newly entered the New England market which implemented the strategy of rock bottom prices as well as offering intensive customer service and 110% price protection. It is very aggressive in capturing the low-price driven consumer market. The ‘entry-level customer’ and ‘the price bitter’ will be most likely attracted by Wiz. Besides, the top 2 retailers, Lechmere and Circuit City also focus on entry-level...
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...I think our two main competitors for this project are circuit city and tweeter, what i did this morning was to research the prices they are charging for electronic options on cars. If anyones interested in the websites they are circuitcity.com and tweeter.com Keep in mind that for almost all these products Tweeter offered free shipping, on certain items, like Cd players, circuit city was offering free installation Cd Players and Changers Tweeter - Lowest Cd Player - $79 Highest Cd Player - $600 Circuit City - Lowest CD Player - $59 Highest CD Player - $699 I found they both were selling the same player, the pioneer DEH 1900MP,the details on this player can be found at http://www.circuitcity.com/ssm/Pioneer-In-Dash-Player-DEH-1900MP/sem/rpsm/oid/170131/rpem/ccd/p roductDetail.do Tweeter Price - $99.99 Circuit City Price - $99.99 Remote Starters Tweeter - Lowest Remote Starter - $49.99 Highest Remote Starter - $229.99 Circuit City - Lowest Remote Starter - $59.99 Highest Remote Starter - $549.00 couldn't find a matching item for this one GPS Systems Tweeter - Lowest GPS System - $249.99 Highest GPS System - $1,799.99 Circuit City - Lowest GPS System - $79.95 Highest GPS System - $1,699.99 They are both carrying the TomTom OneB GPS system, again if u want more information on this GPS...
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... Tweeter, etc. is an audio/video company that faced pricing strategy problems in 1993 that made the history books for adverse pricing strategies. Sandy Bloomberg formed the company in 1972 and the company faired well in the 1970’s and 1980’s. It grew to 13 stores when they implemented the Automatic Price Protection pricing strategy. This strategy nearly drove the company into bankruptcy. The company still faces unremitting problems which this paper will address. This is our proposal as RU Consulting, L.L.C. First, we will examine how the company evolved. Second, an analysis of the company’s strengths, weaknesses, opportunities and their threats will be considered and an analysis of their corporate strategies will be given. Third, we have included our solutions and recommendations for this company. Last, we would like to give our recommendation to you as the stockholder on what you should do with the stock you are holding. Tweeter started out as a small retailer of high-end audio/video equipment right outside of Boston University. This store was a success and soon expanded into 13 stores through out New England. [1] It began to get a reputation for its excellent service and quality products and sales soared. However, in the late 1980’s, the bottom fell out of the electronic market and caused two things: price wars with local competition; and Tweeter then joined the Progressive Retailers Organization, in 1988...
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...Store Manager Incentive Design and Retail Performance: An Exploratory Investigation Headnote Store managers perform multiple tasks within a store, and the way in which they are evaluated and rewarded for these tasks affects their behavior. Using empirical data from multiple stores of a consumer electronics retailer, Tweeter Home Entertainment Group, we highlight the extent to which store manager incentive design impacts store manager behavior and, consequently, retail performance. More specifically, we describe the shift in store manager behavior resulting from a change in incentives, which, in part, altered the importance of sales relative to inventory shrinkage in the store manager compensation plan. Store managers, following this change, directed less attention to the prevention of inventory shrinkage and more toward sales-generating activities and made different process choices within the store. We observed increases in the level of inventory shrinkage and sales within these stores. Controlling for alternative drivers of sales and inventory shrinkage, we find this change in incentive design to be associated with a profit improvement of 4.2% of sales. This work indicates that altering how store managers are compensated impacts retail performance. Moreover, our findings underscore the importance of balancing the rewardsgiven for different types of activities in contexts where agents face multiple competing tasks. Key words: incentives; multitasking agent; retailoperations;...
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...The internet; a wonderful place full of useless information, random pictures, and halfway decent homework help. First invented for the government to use, it now open to the entire world… and by the entire world, of course, I mean the United States of America. America,the greatest country in the world, has come up with the one most addicting thing that humans crave. We have become extremely addicted to social media. It has overtaken the human race like a zombie invasion from Mars. Sharing, posting, and liking have consumed America as a whole. More specifically: Facebook, Twitter, Tumblr, and Snapchat. Each has its own addicting property and has its own clique: The Facebookers, Tweeters, Bloggers, and Snappers. All are a different species from one another, and for those who do not religiously use social media who cannot spot them in real life, you can use this to help find them. First, we have the Facebooker. Facebooker’s are very common, as most everyone has one. Facebook is a social media app that allows people to share photos, posts, and all around random crap with “friends” (we all know...
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...penny more. It sounds better than ever and accommodates all of the new iPod and iPhone models, even the iPhone 3G S. • Works with any iPod or iPhone with a 30-pin connector iPod shuffle and other devices connect via auxiliary input • Instant wake functionality when using your iPod’s alarm clock feature • Quickly recharges the iPod, iPod touch or iPhone • Includes IR remote, power adapter and power cord SpecificationS The iGroove SXT is a true stereo sound system that employs dual long-throw 2.5inch woofers in a ported enclosure and dual ¾-inch horn-loaded tweeters. Klipsch is the only company in the iPod speaker category to utilize horn technology, a design that delivers lifelike sound as well as produces more output using less energy. frequency response 60 Hz - 20 kHz crossover frequency 4 kHz maximum acoustic output 99 dB SPL @ 1m anechoic tweeter 3/4 inch tweeter high frequency horn MicroTractrix™ Horn midrange 2.5” woofer amplifier Class D, bi-amplified Unlike before, the iGroove SXT is now bi-amplified, which means each driver is individually amplified, a feature that virtually eliminates distortion and significantly improves sonic performance. We’ve also re-tuned the bass ports on the sides of the system to remove any “port noise.” enclosure material HIPS plastic enclosure/dock and remote enclosure type Tuned port inputs 30-pin iPod docking connector, 3.5mm mini auxiliar y input ...
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...NEW INFORMATION TECHNOLOGIES | SOCIAL MOVEMENT OF NETWORK AND SOCIAL MEDIA | Critical essay | SOYEON PARK 20122455 2012-12-05 | SOCIAL MOVEMENT OF NETWORK AND SOCIAL MEDIA Malcom Gladwell printed an article in The New Yorker, the article is entitled ‘Small Change : Why the revolution will not tweeted’. The article is giving criticism in principle about the social media disseminator’s ideas that social media such as facebook and tweeter will bring enormous changes on social activities and movements. His article provides us with amount of food for thought about what is behaviorism and social movement in the age of social media and what is relations between social media and social movements. Of course, there would be a sharp division of opinions between those who approve and disapprove. He argues that it is impossible to reform the society radically by social media such as tweeter and facebook based on weak ties. And he pointed out the limit of ordinary unimportance of weak ties. It means, in spite of extensivity and quantitative expansion of weak ties, it does not have materiality of solidarity showing in the 1960s’ a civil rights movement. And he’s opinion is that the connection of information is different with the solidarity of people. A movement, which goes along with human body, makes people blood boil and heat them up, unlike when they are absorbing information by using their brain cells. It is hard to banish the lingering and regret about that kind of...
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...twitter Therefore, similar to other social media platforms, one must have an account to tweet. To get an account the following procedure must be followed: Download twitter application program, create an account using personal details, and log in to tweet. In the first time, one mighty not be knowing what to do with twitter; ether to follow someone or what should they do, but after sometimes one learns on how to tweet through other members on tweeter. Similar to other social media platforms there is no security as one tweets any message, as a result any one disposed to tweet must choose to stay public on twitter platform. (Patterson, Michael 2015 Importance of twitter Consequently, tweets enhances confidence to many people who are shy to share their ideas openly as they face their clients. Sharing of ideas enable one to understand their strength and weakness in some matters or in a given field, furthermore, improves the performance of different institutions since sharing of ideas allows them to compare their standards of performance. Tweeter is the best platform to advertise goods and services similar to other to media of communication. Through tweets one can be able to sent variety of messages to many clients at the same time and in wide treatment since it has no limits. (Michael Patterson on July To tweet or not? According to (Hogman,Chris, 2015), if we tweet just for interaction with friends, then should be personal thoughts and ideas , but if we tweet for the reason of...
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...SIP Report On ANALYSIS OF SALES & PROMOTIONAL ACTIVITIES IN TIERII CITIES From Ishan Shingne (27) Acknowledgement I take this opportunity to express my profound gratitude and deep regards to my guide E. Anand sir and Hemant Bapat Sir for their exemplary guidance, monitoring and constant encouragement throughout the course of this study. The blessing, help and guidance given by her time to time shall carry me a long way in the journey of life on which I am about to embark. I also take this opportunity to express a deep sense of gratitude to Dr. Gopal Iyengar, Director KIAMS, for his cordial support, in selecting us to be on board on the journey of PGDM with the KIAMS. Table of content Topics Number Page Executive Summary------------------------------------------------------(1) Introduction --------------------------------------------------------------(2) Objective of the stud-----------------------------------------------------(3) Concept -------------------------------------------------------------------(4) Brief about the company------------------------------------------------(5) Methodology followed--------------------------------------------------(10) Result----------------------------------------------------------------------(12) Summary------------------------------------------------------------------(13) Recommendations-------------------------------------------------------(15) Limitations of the study-------------------------------------------------(16)...
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...Course Syllabus MKT 6336-0I1 Jindal School of Management The University of Texas at Dallas | Course Info | Tech Requirements | Access & Navigation | Communications | Resources | | Assessments | Academic Calendar | Scholastic Honesty | Course Evaluation | UTD Policies | Course Information Course Course Number/Section Course Title Term MKT 6336.0I1 Pricing Spring 2014 (January 13 – May 12) Professor Contact Information Professor Ram Rao Office Phone 972-883-2580 Email Address rrao@utdallas.edu Office Location SM 3.701 Teaching Assistant Office Email Address Administrative Assistant Office Phone Email Address Mohammad Zia McDermott 1.406N Mohammad.Zia1@utdallas.edu Andrea Hapeman SM 3.704 972-883-4743 andrea.hapeman@utdallas.edu Course Pre-requisites, Co-requisites, and/or Other Restrictions MKT 6301 or equivalent Course Description Pricing is the way a firm produces revenues from the value created by its product offerings. Much of marketing involves activities that are costly for the firm, while revenue generation depends on pricing that is sustainable and profitable. Students in this course will learn both the principles that can guide pricing and the practical considerations that make pricing a challenge. Sustainable and profitable pricing stands on three legs: costs, competition and consumer value. Some managers focus too much on costs, while others focus too much on competition. Decisions made in this way are typically not good. As we will see in this course, a manager...
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