Washburn Guitars
By: Drew Prinsen, Justin Ross, and Connor Giblett
History
• Began in Chicago in 1883 near Maxwell St. Which
would later become the epicenter of American music,
specifically the Delta Blues genre and Rock and Roll.
• This was a result of a large influx of African
Americans from the southern states.
• They manufacture all kinds of guitars including:
electric, acoustic, bass, banjos. They also make amps
and other guitar equipment.
History
• Their guitars have become increasingly popular among
extreme metal, hardcore punk and port-rock genres.
• The modern Washburn Guitars was founded in 1977
as a small firm bought the rights to The Washburn
name.
The Products
• Electric Guitars
• Bass Guitars
• Electric Guitars
• Banjos
• Amps
• Mandolins
• Replacement parts.
Production
• Until 1991, all Washburn Guitars were made in Asia,
more specifically Japan. After that they switched
production over to the U.S.A. for their specialty,
custom guitars. The mass-produced guitars are still
made in Asia.
Endorsements
• First guitar company to use endorsements.
• They provide guitars for free to musicians on the
condition: The musician endorses the product, and
Washburn provides guitars that best suits the musician.
• This works due to beginners wanting to copy their
favourite musicians and therefore are willing to buy the
same products.
Market Segments
Washburn Guitars has divided it product line into four
categories for different market segments, they are:
• One of a kind, custom instruments.
• Batch custom instruments. (Signature Series)
• Mass-produced instruments.
• Mass-customized instruments.
Competitors
• Gibson
• Fender
• Miller
• Eastman
• Gretsch
• Yamaha
SWOT Analysis
Strengths
• Celeb endorsements.
• Products are available to all skill groups, they offer cheap, learning guitars
and more expensive pro-guitars.
Weaknesses
• Smaller company than many competitors.
• No online store.
Swot Analysis
Threats
• Many competitors
• Recent Recession has made people shy away from unnecessary purchases.
• Guitar Hero and RockBand becoming the new norm.
Opportunities
• Music is popular worldwide.
• Open up an online store where you can buy guitars.
Sales
• At the time of the Washburn Guitars naming rights
purchase, the current owner was only producing about
2,500 guitars a year that generated $300,000 in profit.
• Today they produce 40,000 guitars with revenues of
over $40 million.
Pricing Issues
• Washburn has to remain competitive and therefore
pricing remains a constant issue.
• In order to help with this, they use endorsements, and
name guitars after musicians who use them to further
advertise and endorse their products.
• They constantly seek ways to look for cost savings. Ex:
They recently purchased Parker Guitars, and they will
combine production facilities, lowering variable costs.
Musicians
Some musicians who use or have used Washburn Guitars
include: Bob Dylan, Dolly Parton, Greg Allman, the late
George Harrison of the Beatles, Mike Kennerty of the
All American Rejects, Rick Savage of Def Leopard,
Hugh McDonald of Bon Jovi, Paul Stanley of KISS, and
Dan Donegan of Disturbed just to name a few.
Signature Guitars
• The Signature Guitars made by Washburn are guitars
that Washburn makes that have been designed and
named after their respective musicians. This include
Paul Stanley, George Lynch, Greg Tribett and several
others.
Reviews
• Washburn Guitars posts reviews for each product they
make that are made by independent sources that are
non-biased and provide fully truthful information,
something many companies still not do.
http://www.washburn.com/news-and-reviews/reviews/
Washburn Radio
• On their website, Washburn has a “radio” that plays a
random selection of 22 songs that use Washburn
Guitars in them. The radio is available to anyone who
visits the site. It also provides reviews and lessons.
Washburn TV
• Also on their site, Washburn has a channel that plays
videos of clips from shows of musicians using
Washburn Guitars such as American Idol and
Saturday Night Live.
Dealers
• Washburn guitars solely makes guitars and does not
own any stores, and therefore sells its guitars through
dealers. You also cannot buy them online.
Questions
1.Do you think it was a wise choice ford Washburn to
sell their products solely through dealers? Why or why
not?
2. Do you think it’s a good choice for Washburn to
include several market segments, or should they just stick
with one or two? Ex: Mass-Produced Instruments, one of
kind instruments etc.
3. Do you think its smart for them to watch their break
even points so closely?