\

need help to make a Marketing Strategy Plan for this case study. (goals: increase sales, improve brand recognition, expand sales, pricing)

Company History: Wave Guitars (WG) manufacturers acoustic and electric guitars and was founded in 2012 by Valentina Perez who has an extensive background in the music industry. Through her connections, developed over several years, Ms. Perez was able to hire a talented group of artisans, managers, and other workers who have all contributed to the company's success. WG is a C-corporation and headquartered in San Bernardino. The company was started with an investment of $200,000 from Ms. Perez and a $300,000 private stock sale to family, employees, and other investors. Senior management is made up of highly experienced people that worked with Ms. Perez at Gibson, Guild, and Fender. The board of directors includes prominent people from the San Bernardino area that are also investors in the company. Sales increased rapidly and WG achieved profitability in the second year of operations. WG has continued to add new products and innovations over the years. The company began by offering made- to-order electric and acoustic guitars and created a reputation for quality artisanship. In 2015 WG added collectable, limited-edition models. Capitalizing on the excellent reputation for quality and the growing brand identity, in 2017 WG began producing a line of standard guitars (both electric and acoustic) to appeal to a broader customer base. The brand continues to develop and WG has been able to utilize traditional methods and social media to help promote the company. The company website is designed to provide a complete customer experience and support sales. Ms. Perez gave a TED Talk in October of 2019 that has been viewed by over 5 million people. YouTube posts of people using WG guitars are popular and growing. The company's big break came when noted guitarist and Black Keys front-man Dan Auerbach was photographed with his custom WG guitar for the cover of Guitar World Magazine. In 2018 influential guitarist Kaki King ordered a custom acoustic model from WG and used it in several music videos and interviews. Several other famous guitarists are now owners of a WG instrument. Products: Custom Customers can log onto the WG website and upload their concept for a guitar then work directly with a craft person at WG to complete their design. In addition to having a unique shape the customer can choose from several customization features including having a name or message scripted into the fretboard, use of exotic tonewoods, alternative neck profile, choice of electronics, cutaways, armrests, etc. These one-of-a-kind models are priced from $2,500 to $10,000 (average $8,500) or more depending on the material and extent of customization being requested (2021 pricing). For an additional charge, the customer can have the entire fabrication process recorded. The finished guitar is delivered in a custom WG case. Collectables The limited-edition models are designed by the company and only 25 units per design are ever made. The company introduces four unique designs each year, 2 acoustic and 2 electric, and these models are typically sold out before they are manufactured. The cost for these guitars is based on materials used and the length of time to complete fabrication. More expensive models can cost up to $12,000, with an average cost of $10,000 (2021 pricing). The typical buyer is a guitar collector or aficionado. The design for each collectable model is announced on the WG website and through a press release which generates considerable free publicity for the company. The collectable guitars are no longer a significant part of the business but have helped establish the WG brand and continue to identify the company being innovative and producing the highest quality instruments. Some past models have sold for a premium on the secondary market. Standard Models These models feature the well-known WG quality and have a more traditional look. Because the standard models offer no customization options WG can produce them in volume at a lower cost per unit. The standard line also has several models designed specifically for women and younger players. These guitars have slightly narrower fretboards, smaller bodies, and are more comfortable for anyone with smaller hands and reach. The design of these models was based on industry trends and company research. The WG standard line is sold at various retail music stores including Sam Ash, Guitar Center, and over 400 independent and small chain music retailers. The standard line is also available for purchase directly from WG's website and other online retailers (Sweetwater, American Musical Supply, zZsounds). Standard models are priced from $1,200 to $2,000, with an average of $1,500 (2021 pricing). Immediate Need: A few weeks ago, the owner of the building WG is leasing offered to sell the property. After negotiating a sale price of $9,400,000 the company began working on a business plan to request a loan of $6,580,000 (70% LTV) from a bank. The company and shareholders will provide the necessary down payment and closing costs: Sources Amount Uses Amount Company cash $9,400,000 $200,000 New stock sale proceeds $1,620,000 Purchase price $1,400,000 closing costs $6,580,000 $9,600,000 Total Loan amount Total $9,600,000 Wave Guitars Building specifics: . . 45,600 square foot building 2.74 acres of land Concrete tilt-up construction Built in 1989 22' ceilings 100 car parking 3,000 square feet of office space Employee lunch and break room Fully fenced secured yard 4 dock-high loading doors . . . . Next 5-years: The company is focused on continued brand development, improving their website and social media presence, and continuing to grow the number of retail store that carry their products. The WG workforce will see a modest increase over the next 5-years. WG has explored adding electric bass guitars to their products. This is a much smaller market, and the company will continue to research the interest in customized bass guitars over the next year. WYM As the WG brand is becoming more recognizable the company will add a line of branded clothing (t- shirts and hats), instrument cleaning products, music stands, instrument cases, and other accessories to the products. These items will not significantly change sales but will help to establish the brand name. Exit Strategy: The company estimates annual sales will reach $100,000,000 in 11-years at which time the company will either go public or sell to a competitor. If WG goes public, the stock price is expected to be $20 per share and the company could raise $500 million. If WG sells to a competitor, the sale is expected to be 5 to 7x EBITDA ($70 million to $100 million). This information is for background purposes only and should not be shared with outside individuals. Marketing: The company has used traditional print media to advertise the website and products. WG runs a half- page or quarter-page ad in Guitar World Magazine, Premier Guitar, and Acoustic Guitar Magazine a few times a year. The company also advertisements in on-line publications including Guitar World Magazine, Rolling Stone, and Billboard. A few amateur guitar players have posted videos using WG models to YouTube, TikTok, Facebook and other platforms. WG's marketing team is developing a series of instructional videos and a factory tour video showing how a guitar is built. The company would like to explore other innovative ways to market the products and build brand identity, including guerrilla marketing campaigns. The focus is national exposure as the products are sold throughout the US and internationally. WG is a member of the National Association of Music Merchants (NAMM) and has attended their trade shows over the years. The company has a custom booth that they use for this and other similar events including concerts, fairs, and conventions. The booth can be used to show interested people how WG makes a guitar, and also displays the standard models currently available for sale. The company website is a featured sales tool and allows users to design a custom guitar, interact with company craftsman, and follow the production of their guitar. All custom-made guitar orders start with a website visit. Orders for standard models also use the website