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Tweeter's Optimal Pricing Strategies

EDLP is the most appropriate pricing strategy for Tweeter. It focuses on Tweeter's strengths of high quality products and good customer service which attracts the majority of its customers. Tweeter has consistent demand throughout the week and a consistent workforce to support EDLP. Price guarantee and Hi-Lo strategies are not suitable as most customers do not consider price the primary factor and Tweeter should avoid a price war with its main competitor The Wiz.

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Ankur Desai
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57 views1 page

Tweeter's Optimal Pricing Strategies

EDLP is the most appropriate pricing strategy for Tweeter. It focuses on Tweeter's strengths of high quality products and good customer service which attracts the majority of its customers. Tweeter has consistent demand throughout the week and a consistent workforce to support EDLP. Price guarantee and Hi-Lo strategies are not suitable as most customers do not consider price the primary factor and Tweeter should avoid a price war with its main competitor The Wiz.

Uploaded by

Ankur Desai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Tweeter Etc.

Desai Ankur V.
PGP 16114
Section-C

Pricing Strategy

Salient Features

Hi-L o

Intertemporal Pricing Strategy


High price is charged to initial Consumers
Useful marketing strategy as low-price items can be advertised
Risk of loss and loss of consumer loyalty

EDL P

Prices are kept fair everyday without Sales


Attracts bargain-conscious customers
Uniform Demand can be assumed through out the week
Useful for commodities
Useful where the customer does not have the time to research

Price Guarantee
Strategy

L owest Pricing guaranty is assured to consumers


Helps to build on consumers rationality
Easy communication of value on marketing

Appropriate Strategy
Pricing Strategy

Appropriate for Tweeter or not?

Hi-L o

Not appropriate for tweeter


Only 5% of existing consumer consider price as first priority

EDL P

Appropriate for tweeter


Focuses on Tweeters USP-High quality product and consumer
service
70% of existing consumers are Quality/ Service Consumers
Evenly spread out demand; No weekend rush
Consistent workforce

Price Guarantee
Strategy

Not appropriate for tweeter


It is not recommended to indulge in price war with The Wiz
Consumer perception remains the same despite APP
80% consumers are not completely aware of Tweeters APP
$78,000 amount refunded under APP

Future Course of Action

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