Transcript Guitar center.ppt

“The Wal-Mart of Music”
Kerianne Marshall
David Emmert
Isaiah Thomason
OVERVIEW
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HISTORY
CURRENT
MARKETING MIX
TARGET MARKET
STORE LAYOUT
S.W.O.T.
SUMMARY
HISTORY
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Began 1959, in Hollywood
Re-named Guitar Center in 1964
Became multi-channel retailer in 1999
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Bought Musician’s Friend (Oregon based)
Acquired internet and catalog sales
2005 Acquired Music and Arts Center Inc.
CURRENTLY
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2007 now has 171 stores and growing
Current stock price - $45.74
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Net Sales 2005 - 1.7 Billion
Net Sales 2006 - 2.4 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
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Products
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Guitars
Bass
Keyboards
Drums &
Percussion
DJ & Lighting
Recording
Live Sound
Books &
Videos
Lifestyle
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Price
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Lowest Industry
prices
Emphasis on
lower-end
equipment
Place
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Big Stores
All over U.S.A.
171 Stores
Promotion
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“Category Killer”
Mass Marketing
“Guitarmageddon”
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$1000’s in prizes
TARGET MARKET
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“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.)
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Departments by Product
Category
Sound proof demo rooms
Can be crowded
Rockwalk
http://www.guitarcenter.co
m/company/tour/
STORE LAYOUT (Cont.)
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Product Levels
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Lower
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Beginner Guitars (cheap)
 $100-$300
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Mid
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Intermediate Guitars
 $400-$1000
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Upper
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Top of the line
 $1000-$5000
S.W.O.T.
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Strengths
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Selection
Price
Well known
Locations
Weaknesses
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Employees work on commission
Overwhelming atmosphere
“Wal-Mart complex”
Store Layout
S.W.O.T.
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Opportunities
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Music Foundation (music in schools)
Spin-off for high-end buyers
Threats
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Losing reputation
Over expansion
Sam Ash Music / Sweetwater
VIDEO
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Adam Fulara