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Tweeter Launches New Business Plan

11/10/2004 08:16:00 AM Eastern

Canton, Mass. — Tweeter Home Entertainment Group will roll out the first elements of a radical new business plan this week.

The strategy, some two years in the making, employs a completely redesigned store model and a fresh marketing theme to emphasize the chain’s new focus on custom installation and complete home theater solution selling.

The initiative is designed to further differentiate Tweeter in the marketplace by emphasizing bundled, media server-based home theater products and services over individual price-driven items while targeting its most lucrative customer segments. (Also see Tweeter Outlines New Business Strategy)

As part of the marketing plan, the company, whose national footprint was built through acquisition, will consolidate its five different operating names, including Sound Advice, HiFi Buys, Hillcrest High Fidelity and Showcase Home Entertainment, under the Tweeter brand over the next 12 to 18 months. Tweeter has also developed a new logo that replaces the words “Home Entertainment Group” with the new descriptor “Entertainment Architects.”

Tweeter will unveil its new store prototype to the trade this January in Las Vegas during the Consumer Electronics Show. According to Mark Richardson, the company’s recently named senior VP/marketing and chief brand officer, the airy, 14,500-square-foot test store, replete with concierge desk, modular demo areas and an in-store design studio, will more resemble a Nordstrom or luxury car showroom than a traditional CE outlet.

The store, located in the suburb of Summerlin, will represent Tweeter’s first entry into the Las Vegas market. A second unit is planned for nearby Henderson.

Richardson said that elements of the prototype will be incorporated into all new store construction while older locations will be retrofit over time.

More immediate is a new advertising campaign that breaks this Sunday on ESPN during the New England-Buffalo football game. The largely TV and radio ad effort features the company’s new tagline “We can untangle your mind,” set to the refrains of the 1970 hit “All Right Now” by the rock band Free.

Richardson said the female-friendly theme, which will be carried over into catalogs, print ads and direct mail pieces, addresses consumers’ dislike for the “noisy, overwhelming” in-store experience of big-box chains, and their confusion over new home entertainment options.

Other elements of the new strategy include a leaner assortment with more private label products; in-home shopping; post-sale follow-up service; and a redesigned Web site.

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