Washburn Guitars

Washburn Guitars

Patrick Creagh

Juliana Lacouture

Conor Montijo

Suzanne Fitzpatrick

Recommended Strategy

Join the Save the Music Foundation!

• Increases celebrity association
• Appeals to younger generation
• Socially Responsible Corporation
• "Adopt" schools in Midwest
• Reduce costs
• Easier entry

Key Decision Criteria

www.youtube.com/watch?v=cnQMkrMSakc

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Background

130 Years of Washburn

Market Overview

Delta Blues: The Beginning

Innovation and Washburn

Major Players

Washburn's Position

• Subsidiary of U.S. Music Corporation (USM)
• USM is a subsidiary of JAM Industries

• Opened in 1883
• Maxwell St., Chicago
• Hotbed for the Delta Blues

• First to use musicians to endorse the product
• Became one of the largest instrument manufacturers in the United States

• Fender Musical Instruments Corporation
• Gibson Guitar Corporation
• Top US manufacturers
• Account for over half the revenue

• Yamaha Musical Intruments
• Ibanez
• Top foreign manufacturers

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http://www.washburn.com/about/

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The Festival Series

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Washburn Today

Target Market

Market Position

• Signature Series
• Range of Instruments
• Relationship with retailers and artists
• Dedication to quality and innovation for all guitarists

Alternative Solutions

• 18-34 year-old
• Increased about 11% from 2003 to 2005
• Majority male
• Especially among higher price categories (25-34 year-old)

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VH1 Save the Music

Company Issue

Pros

Cons

• "The Foundation’s core mission is to restore instrumental music education programs, ensuring that every child has access to a complete education that includes the benefits of music instruction."

• Become a sponsor: provide both financial help and guitars for the schools

• Supports a good cause as well as inserts the Washburn brand name in schools and households

• Entry into the foundation could be difficult

• Cost of providing both money and guitars

• Ambassadors play a key role and Washburn has few celebrities

A Tradition of Innovation

Cons

Pros

SWOT Analysis

Issue

• Game has decreased in popularity

• Little use for older generations

• May give Guitar Hero makers idea to use a more popular guitar brand

• Might give off the notion that Washburn is just a rock guitar company

• Very effective way to reach out to young adults

• Uses one of Washburn's more popular styles of guitar

• Modernize the brand name

• Play songs made famous by Washburn artists

Strengths

Weaknesses

• Variety of products
• Quality
• Financial planning

• Lack of advertising
• Issues with setting price

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Opportunities

• Not a strong name in the industry
• How can Washburn become more well known and competitive?
• Need to target new markets

Threats

• Global competition
• Very sensitive to changes in the economy

• Relationship with independent dealers
• Acquisition of Parker Guitars
• Relationship with other US Music Corporation brands

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Channel

Pros

Guitar Show

Cons

Pros

• Interaction with Washburn's lesser known celebrities

• Use of social media increases popularity

• Learn to use Washburn's guitars

• Able to reach out to all different genres of music

Cons

• Have to be able to attract people to the YouTube channel

• Not as personal as actual lessons

• Impossible to cater to every request

• Not an ideal strategy for older players that do not use the Internet often

• Show off Washburn's wide array of guitars

• Also can display Parker guitars

• Would attract those interested in higher-quality and more expensive guitars

• Cater to the death metal group, most popular genre of underground metal, if they choose

• Seen as more of a hobbyist event for collectors

• Washburn does not have the celebrity roster to compete with the guitar shows of other companies

• Would not help with beginning guitar players

(Source: Iowa State University Department of Statistics)