Mudit Jain . PGP 16201 Strategies Section € Hi-low strategy — New items are priced at a higher rate and then prices are brought down to penetrate the market. This helps in generating higher profit per unit in the initial stages ‘and then later the market penetration increases revenues. © APP. Automatic price protection increases customer confidence by guaranteeing the lowest price. It eases customer's uncertainty about price differences and thus becomes attractive fo customers. EDLP- Everyday low pricing Is a strategy wherein the sellers set the prices between the regular non-sale price andl discount sale price of the competitors. This helps in maintaining a continuous demand and prices are consistently low (may not be the lowest). Evaluation of strategies Hi-Low strategy- 2.5% of Tweeter's existing customers put emphasis on price as the major criterion (entry level consumers) APP- Itis not sustainable unless prices cre very competitive. Recent trends show that its prices are not competitive. Low ‘awareness of APP (20%) results in low sales. Even among the population awore of APP, only 5.1% believed Tweeter offered 4G lower price. Price war with The Wiz which has deep pockets could potentially prove to be very fatal. EDLP- It can counter the perception of consumers who Feel that Tweeter is high priced. It con smoothen demand thet reduces, the weekend rush on account of sales and discounts. Recommendation 2 Olt is recommended that EDLP be followed. 0 Tweeter can sell premium products because the cheapest or sale perception can be taken away. 1 Tweeter should focus to further differentiate itself from other stores on the service dimension by providing additional service benefits such as extended product warranties, free product service ond repair for a limited period etc.