Kerianne Marshall David Emmert Isaiah Thomason “The Wal-Mart of Music”
OVERVIEW HISTORY CURRENT MARKETING MIX TARGET MARKET STORE LAYOUT S.W.O.T. SUMMARY
HISTORY Began 1959, in Hollywood Re-named Guitar Center in 1964 Became multi-channel retailer in 1999 Bought Musician’s Friend (Oregon based) Acquired internet and catalog sales 2005 Acquired Music and Arts Center Inc.
CURRENTLY 2007 now has 171 stores and growing Current stock price - $45.74 Net Sales Billion Net Sales Billion “Nations #1 retailer of guitars, amplifiers, percussion instruments, keyboards, pro-audio and recording equipment.” Goal is to “continue to leverage our leading industry position”
MARKETING MIX Products Guitars Bass Keyboards Drums & Percussion DJ & Lighting Recording Live Sound Books & Videos Lifestyle Price Lowest Industry prices Emphasis on lower-end equipment Place Big Stores All over U.S.A. 171 Stores Promotion “Category Killer” Mass Marketing “Guitarmageddon” $1000’s in prizes
TARGET MARKET “Baby boomers looking to emulate their 60’s musical heroes, or kids hoping to be the next Green Day” - MSN Money, 7/13/05
STORE LAYOUT
STORE LAYOUT (Cont.) Departments by Product Category Sound proof demo rooms Can be crowded Rockwalk om/company/tour/ om/company/tour/
STORE LAYOUT (Cont.) Product Levels Lower Beginner Guitars (cheap) $100-$300 Mid Intermediate Guitars $400-$1000 Upper Top of the line $1000-$5000
S.W.O.T. Strengths Selection Price Well known Locations Weaknesses Employees work on commission Overwhelming atmosphere “Wal-Mart complex” Store Layout
S.W.O.T. Opportunities Music Foundation (music in schools) Spin-off for high-end buyers Threats Losing reputation Over expansion Sam Ash Music / Sweetwater
VIDEO Adam Fulara