Business Strategy: Custom Precision Engineered Guitars

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Custom Precision Engineered Guitars

‘Taking a hobby to the next level’.

Executive Summary
We are a guitar manufacturing company. Currently, we are going to produce one guitar, ‘THE MULE’. We are marketing to sell a one of a kind steel bodied, cone resonator, 6-string acoustic guitar. We are custom making each guitar by hand in our machine shop in Michigan. The fully customized finished guitar will be delivered to the customer’s home in 10 weeks from the time the deposit is confirmed. If the customer chooses, they will have full access to promote their upcoming band performances via our social media outlets. We have a vision of expanding into making many different styles of guitars in the future.

Vision Statement
We believe that we can make a significant contribution to the music industry by creating sounds that cannot be replicated, leaving a positive impression on everybody who hears our instruments.

Mission Statement
To help people enjoy life through music, we are on a journey to create the highest quality instruments to share with the world. We want everyone to enjoy the opportunity and to participate in creating, playing, and listening to the sounds our instruments make.

Target Markets (Segmentation)
We understand that our product is a niche market and we are going to market it to specific consumers. We are looking for guitars players who already own at least one guitar and are looking to add another guitar to their collection.

We are going to divide our market of guitar players into different subsets: those who are professional guitar players and those who are casual guitar players.

The professional and aspiring professional, since this player is already in a band, they own at least one guitar; we are going to focus on this group the most. We will suggest that our ‘Mule’ will offer a whole new sound to the band. We will concentrate our marketing campaign on the segment of bands that play mostly Rock and Roll, Rhythm and Blues, Folk, Country, and Jazz. The sound of the ’Mule’ will complement the tonal layers of these music styles.

Our other market segment is the casual guitar player, also known as a hobbyist. Since our product is more expensive than a standard factory made, we must focus on players in the middle to upper income level, they have expendable money for a luxury item. We will look for players who currently own at least one guitar.

As for a geographic segment, we will concentrate on players throughout the United States. We will target out marketing campaigns to various festivals and concerts in the South and Southwestern United States. The steel guitar sound is very popular in the Country Music and Folk Music scene.

Positioning Strategy
We are positioning ourselves as a one of a kind luxury item. The customer will receive a superior quality guitar, excellent performance and style, with a sound that cannot be replicated. Since each guitar is hand-made and built to order, you will customize your guitar as to the neck height, bridge-height, engravings, color (patina), fret amount, scale length, neck wood, inlays, etc. We are offering the most unique combination of a steel body with the cone resonator. We are offering a 10 year warranty against craftsman defects. You send it back to us and our master luthiers will fix it or replace it.

Industry Analysis

A study by Guitar Center estimates that the guitar sales in North America were $1.4 Billion in 2011.1

Guitar Center classifies their guitar customers as:2

16% Professionals
43% Aspiring Professionals
41% Hobbyists


A National Association of Music Merchants (NAMM) poll showed that 43% of adults (aged 18 – 55) can play a musical instrument. 3 The same poll from NAMM showed that 13% of adults are able to play a guitar. The gender breakdown is 17% males and 9% females. 4

This poll estimates that there are over 20 million guitar players in the U.S.

Professionals --2.6 Million...
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