Automatic Protection Policy (APP)
..., high end video and audio equipment, and knowledge sales people. Two recent developments in the marketplace gave Sandy Bloomberg, Tweeter’s CEO, reason to reflect on APP. First, the company purchased small high-end consumer electronics chain which adopted the APP strategy without any significant impact on sales. Second, “The Wiz” a huge electronics retail, opened a 50,000 square foot store. The Wiz has been known for its monstrous marketing campaigns, intensive customer service and they offered 110% price protection for 30 days. II. STATEMENT OF PROBLEM Has APP strategy been causing Tweeter’s growth and what would be the role in Tweeter’s future competitive positioning? III. ALTERNATIVE SOLUTIONS 1. Eliminate Automatic Price Protection. Tweeter will need to eliminate APP because it won’t be able to compete with Miz and its massive marketing campaign using lower price. Tweeter could introduce regular price protection as other companies are doing, but to all products above $50 for 30 days. Miz disadvantage will be that it only gives 100% regular price protection to all products except camcorders and cellular telephones. Tweeter could come with a marketing campaign emphasizing Regular price production to all products. 2. Focus Marketing in Quality and Service. Tweeter customers won’t leave the company if they still receive quality and good service. Miz is a discount retailer that offer a good service but not quality. Tweeter could use that as a strong marketing campaign t...