Final Proposal

Agner Drumsticks Business Proposal

Firas Faraj

ECO/561

November 3, 2014

Joseph Broberg

Agner Drumsticks Business Proposal

Since it has been a profession, we can find out drummers across the world with the perfect pair of drumsticks. These sentences don’t make a lot of sense As they are perfect for playing the drum’s they can use those sticks comfortably which is very much essential for them to perform their best. Moving ahead with the Swiss company, Agner Drumsticks has been in a leading ladder among all the other competitors as they are known or making best drumsticks since 1985 across the nation (Europe) ("Agner-Sticks", 2014). Even though they have recently occupied the market from last three years (2011) in U.S with the initial NAMM show, they have been successful to occupy over a large area of the market. What is the new product you are introducing?

The oOrganization was introduced and started by Mr. Paul Agner in1985 and later on the merger was acquired by Mc Duff (owner of Swiss percussion) while they entered our nation for the business expansion ("Swiss Percussion", 2013). It was a great move for them as they seek their way ahead to provide world class product cross the globe. Their home based company is located in Lucerne, Switzerland and moreover they have also opened a new factory in Braselton (Georgia), recently ("Agner-Sticks", 2014). If we look around the past in terms of trade by the Swiss company, they used to import woods from us. Hence it is well understood that the price of those drumsticks was expensive, but the opening of new factory in U.S after the merger, surely reduced the price to some extent. By saving the import cost of woods after the grand opening of company in Georgia they are happy enough to eliminate a big amount of the weight for those cargoes and thus reducing the price ("Swiss Percussion", 2013). What is new product?

Agner Drumsticks are apart of the monopolistic competition market structure, as we know there are many other companies as well, such as- Vic Firth, Pro Mark, and Vater Drumsticks. Need dat supporting assertion Those companies have been leading the market for several years, thus it is a great challenge for the Agner to acquire market in U.S. Agner represents a wide variety of product line which includes various drumsticks and other merchandise to acquire over the perception of customers and make them feel satisfied. There Average drumstick cost approximately $12.00 do you mean sells for or costs to make? and the other variety such as the signature sticks cost approximately $14, they are the special sticks designed for the top artist, such as Lady Gaga (Spanky) ("Agner-Sticks", 2014).

We also know that many of the Agner’s artists are signed with an endorsement deal, which helps them to get discounts and also been a tremendous asset for the company, by giving them great exposure to RnB, Gospel, and other alternative drummers. In a personal conversation, with Co-owner Scott Mc Duff, I asked about the competition how they would compete with the other competitors dealing with same products, along with selling them in low price. He answered even our product are costly and 30% higher than the other brands, but our quality is the only added subject which makes our product worth and even help the artist’s to feel better and comfortable, thus we would surely grab the market ("Agner-Sticks", 2014). Even the words were very transparent and realistic, but having such conversation really influenced my perception and helped me to withstand more willingness, and future prospects to know the market concept in a better way. Moreover dealing with such products also reflects various advantages, such as many of the followers who are the fans of great drummers; they use to purchase the sticks to show their support. Secondly if the company reduces the price of those sticks, it is obvious the sales would be enhanced and it would rapidly be increased, but doing such might not be proved as a fruitful strategy for a long run. This is written too much from personal knowledge nad does not use enough data, support from economic and peer reviewed references

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The number of sticks that are produced varies, based on the most popular drumstick and looking at quantities which are sold. The average drumsticks which is mostly preferred by drummers are size 5A’s and 5B’s. Naturally, when the production started in the Georgia factory, the company started by making a certain number 5A’s and 5B’s. Shortly after the expansion of the company products in other models increased the demand as they were considering the customers need while manufacturing any product.

Although this company has put in lot of effort for the distribution of their product in 24 countries, the operations in the U.S were hurt due to lack of supply, but on the other hand it was just a strategy to increase the demand by creating a short fall of the product in market. Where is analysis of price elasticity of demand and MR=MC

Because of these issues, there was a shortage of Agner drumsticks in U.S. This issue of shortage became an issue for the artist and customers not being able to purchase their supply of drumsticks when they needed them ("Agner-Sticks", 2014). The change in the quantity of supply created small damage to the credibility of the company and forced the company to have high prices due to not being able to sell as many pair drumsticks as they would like.

Now as the factory in Georgia became fully operational and started producing drumsticks, Agner Drumsticks reaches the peak and also able to save more mix (money). While the company is producing sticks, they are focusing on marketing their products through the artist on the roster as well as introducing their products in musical show cases like the NAMM show ("Swiss Percussion", 2013).

Conclusion:

While concluding the entire topic, I would just say that while reaching above to a certain height we must also take care to see backward, else it might turn across with a negative result, same was happened with Agner as they created shortfall in the supply , it caused loss of funds for the company due to lack of there customer care. While doing any business we must think about our customers and the services we are providing them. At last but not the least would like to say that this is the only way to see a business truly grow beyond the average expectations.

References: Need 8 economic, primary data, and peer-reveiwed references