Advent Calendar Challenge Day 12
This is a continuation of my marketing plan post!
Core Competency and Sustainable Competitive Advantage
No Treble plans to (1) provide high-quality, lasting guitar strap attachments at reasonable prices to people who struggle to play their instruments standing up for long periods of time due to the weight of the instrument and (2) offer the product using the most environmental and ethically conscious manufacturing and distribution practices possible.
In order to convert these core competencies into a competitive advantage, the company will choose U.S.-based manufacturing and distributing companies and closely monitor production and distribution of the product to approved dealers.
|Management||Experienced in the music industry, contacts within the music field||Unexperienced in business, small group limits ideas/reach|
|Offerings||Unique, universal and durable design, attractive||Competitors with different design, but similar idea|
|Marketing||Can focus marketing on very specific group of people||Restricted consumer base, niche product|
|Personnel||American-based companies with high morale, care about product they’re making and selling||More expensive to pay wages|
|Finance||Can charge more for the product because it could come to be an essential||Limited/cap to growth of sales/$ because of niche market|
|Manufacturing||U.S.-based ensures quality level||More expensive manufacturing (location & variety) leads to higher end prices|
|R&D||Creative nature of the product makes for opportunities for further development of design||Li
mited market and expertise on other possible markets
|Consumer/Social||Consumers in the market communicate with each other||Niche market may limit mass market access|
|Competitive||Most similar products in the market are expensive, high-end ($70+).||Similar products exist in the market|
|Technological||Online market, marketing through media (pictures, videos, demos) is a viable option.||Competitors are on online markets.|
|Economic||People who spend money on instruments are also willing to spend it on accessories, especially high-level or veteran players||Lower income individuals do not consider music/instrument accessories essential in times of recession|
|Legal/Regulatory||Little regulation/limits in the industry||Similar products have similar patents|
There are a variety of strengths and weaknesses within No Treble’s internal and external analyses. Its strengths include a niche market of consumers who communicate about products they like, the creative nature of the product, little regulations within the industry, and the opportunity to offer a lower price. No Treble’s weaknesses include similar products within the market, limited mass market access, and expensive manufacturing.
NAICS code for No Treble’s product market is 339992 (Musical Instrument Accessories).
There are currently 594 establishments & 573 companies manufacturing musical instrument accessories in the U.S.. From 2015 to 2016, the manufacturers value of shipments stayed about the same ($1,826,216 to $1,811,866).
The growing music industry itself correlates to increased sales of instrument accessories. Record companies are re-gaining traction, promoting more competition for musicians. In order to succeed, they must have the full package, including a strap that appears attractive and functions well (1). “A report from research firm IBISWorld, which tracks guitar manufacturing in the U.S., [also] shows consecutive growth in the last five years and a projected upswing through at least 2022,” meaning more accessories for these new guitars need to be sold as well.
New and diverse markets also exist in terms of the types of consumers who are purchasing instruments. “50 percent of new guitarists today are women,” which opens new markets of styles and designs for straps. Additionally, while “half the guitars every year are bought by first-time players…the [people] who stick with it…are willing to shell out as much as $10,000 on guitars, amplifiers and accessories over the course of their life” (2).
From this information, it can be inferred that there is still some industry potential because the accessory manufacturing industry is not decreasing on an alarming scale and the music industry itself is growing, so people will still need instruments and accessories for those instruments.