Tweeter Etc. future success and survival depends on correctly identifying and targeting the proper segment of the target market. Therefore, the store needs to pursue the consumer groups that will bring in the most revenue to assure Tweeter’s continued existence and profitability over time. We were able to identify four possible opinions for Tweeter’s current situations, namely: 1. Mass-market strategy with APP. 2. Mass-market strategy without APP. 3. Niche-market strategy with APP. 4. Niche-market strategy without APP.

To better determine Tweeter’s best course of action we perform a thorough analysis of the different variables affecting Tweeter’s performance. Also, we proceeded to analyze Tweeter’s current situation through a SWOT analysis (Annex 1); we determined the “Pros and Cons” of the different options Tweeter currently has (Annex 2), and, finally; we decided to use a decision grid to support our decision (Annex 3). As a result of the aforementioned analysis, we have come to the conclusion that adopting a niche marketing strategy and maintaining the APP policy is the best course of action for Tweeter at the present moment. To support this conclusion we took into consideration the fact that, according to the market segmentation, Tweeter is considered as a “Specialty Store” and its most important customers are the “Quality/Service Customers” (Appendix 3). These costumers account for most of Tweeter's costumers (70%) and their major characteristic is that they care about high quality/service and not so much about price (Appendix 3). In 1992 a high percentage of this class of customers (47.4%), was shopping at other retailers (Lechmere or Circuit City). Tweeter at the time only had 19.6% of this customer category (Appendix 4). On the other hand, Tweeter has not been able to increment the number of Quality/Service Customers buying at their stores. Hence, although said segment is Tweeter’s core customer,