Marketing Plan Assignment
1. Executive Summary
The proposed new product is known as the Automatic Guitar Tuner. It is a revolutionary
guitar tuning device with six tuning pegs allowing all six strings to be tuned at once. With clip-on
tuners and tuning pedals being the industry standard, the automatic guitar tuner is set to change
how players tune their guitars. The product will be produced by the guitar company, Fender.
Through its legacy in the electric instrument industry and its iconic logo and designs, this
company is best set to bring forth this new technology.
2. Company Description
In 1938, Clarence Leonidas “Leo” Fender started a repair shop for radios, phonographs,
public address systems and instrument amplifiers called “Fender’s Radio Service.” Leo Fender
eventually partnered with Doc Kauffman to design and manufacture electric instruments and
amplifiers. Leo Fender decided that manufacturing was more profitable than repair and decided
to concentrate on the business instead. Kauffman was unconvinced and later left the company in
1946. Leo Fender renamed his company to the “Fender Electric Instrument Company,” and
released his first lap steel guitar with the signature cursive Fender logo. Leo Fender continued to
design more conventional guitar designs adding metal truss rods to stabilize tuning and a bolt on
neck so the body and neck could be finished separately.
In 1950, Leo Fender released the first mass-produced electric guitar, the Telecaster.
Following its success, Fender released the Precision Bass and the Stratocaster, incorporating
input from working musicians to flesh out the design. The company was eventually sold to CBS
which led to a larger inventory of Fender parts and more production. Fender has since become
one of the most popular and recognizable guitar companies, being used by famous musicians
such as Bob Dylan, Jimi Hendrix, and Kurt Cobain.
3. Strategic Plan
This section covers three aspects of corporate strategy that influence the marketing plan:
(1) the mission, (2) goals, and (3) core competencies/competitive advantage of Fender.
Mission
The mission of Fender is to revolutionize guitar practice and tuning by inventing the self-
tuning guitar tuner. By introducing new audio technology to recognize the frequency of notes
being played, the tuner will automatically tune the string to the note selected by the user. This
new product will cut back the time and hassle that comes with using traditional clip-on guitar
tuners.
Goals
Nonfinancial Goals
1. To retain its present image as the most recognizable and popular guitar company.
2. To reduce the number of quartz-based batteries commonly used in traditional clip-on
tuners in an environmentally friendly effort.
3. Raise brand awareness to bring in new customers and maintain loyalty to already
existing customers.
4. To enter major music retailers such as Guitar Center and Sweetwater.
Financial Goals
1. To obtain a return on equity of at least 20%.
