Washburn Guitars: How Much Is the Maya Worth?
Background of Washburn guitar:
“Some stories demand to be told. Others are simply content on being heard. Hearing through music, through lyrics, through a cultural revolution, this is the story of Washburn Guitars.” (the history of Washburn, 2009) The Washburn guitar company started making guitars in 1883 in Chicago. The factory would later be involved and located near a musical movement in Chicago in the 1920s. The history of Washburn Guitars is the history of a wide range of musicians, from blues players to emerging guitar virtuosos. It is a history that can be heard and experienced every time you turn on the radio or listen to a live performance. It is a history built by skilled craftsmen and musicians who share one common love–a passion for the guitar. The whole list of Washburn endorsers is very lengthy, and a lot of notable artists have their signature Washburn models. For example, Dan Donegan Signature Model (2003): Maya Series for Disturbed guitarist Dan Donegan named after his daughter. (the history of Washburn, 2009) At present, Washburn continues to be a consistent leader in combining design, innovation, and technology to deliver the rich, bold sounds for a vast musical landscape. And they have been gaining much recognition in recent years. More and more bands have been playing Washburn guitars. (the history of Washburn, 2009) About the Case study:
The Maya series is one of the models that Washburn manufactured, which is also one of the most recent, used and endorsed model, such as Donegan, the lead guitarist for the rock band Disturbed. (The Making Of Dan Donegan's Guitar "Maya" , 2007) Maya series are usually priced in the range of US$799.90 to US$4999.90, with a most expensive one at US$5399.90, which is the Donegan signature model. (Domestic Retail Price List, 2009) It’s not hard to say that Maya series is at the upper end of the guitar price range. Washburn believes that “Consumers, especially guitar lovers are willing to pay for quality.” Though the price is high, many of the users commented that “it’s just worth the price.” In this paper, I am going to discuss the following aspects of Washburn Maya guitars. Firstly, the price competition form that Maya focus in. Secondly, why the demand of Maya guitar is inelastic? And thirdly, the challenges that Washburn may face when they are selling abroad. Lastly, some of the recommendations that may facilitate Washburn’s development will be stated. Discussion
Question 1: Does Washburn guitar s take a price or non-price competition focus? Why. * Price competition refers to the engagement, in which a marketer emphasis price as an issue and matching or beating competitors’ prices. Example is that when all the car manufacturers sell one particular car model charging the same price, the company with the lowest costs, will be most profitable and the winner in this price competition. (W.Pride, 2007) To lower the cost, the company could outsource all the components of the car in developing countries, in which the labor force is much cheaper than native. Price war gives marketers plenty of flexibility to set the price, danger, however, is that oligopoly may occurs as a result of too much flexibility in price setting. * Non-price competition is the form of competition in which marketers decide not to focus on price and instead emphasizes distinctive product features, service, product quality, promotion, packaging or other factors to distinguish its products from competing bands. (W.Pride, 2007) Customers stick to some certain brands may because the non-pricing futures, like the quality and the experience they have by using it, and so we do. This is the biggest advantage of non-price competition—customer loyalty. For instance, ladies sometimes are crazy about Louis Vitton are concerned about the fancy brand name rather than its price. Nevertheless, non-price competition is effective only...