Market Analysis for the E-Guitar Market Essay Example
Market Analysis and Low-Price-Segments
The global market for music instruments covers about $16,8 billion. As there are no reliable sources on worldwide sales data for guitars, the U.S. market shall be examined exemplarily. Table 1 shows the development of units sold, retails, and the average prices over the last ten years. It can be observed that there is a growth of nearly 275% in units sold, and about 160% in retail, whereat the average price decreased by 57%. According to this there is a strong tendency for low price products. Year | Units Sold | Retail | Average Price | 2010 | 2,991,260 | $1,151,290,000 | $372 | 2009 | 3,302,670 | $1,158,592,050 | $350 | 2008 | 3,201,220 | $1,022,861,000 | $309 | 2007 | 2,341,551 | $903,261,000 | $386 | 2006 | 1,942,625 | $921,057,000 | $529 | 2005 | 1,742,498 | $922,280,000 | $529 | 2004 | 1,648,595 | $923,522,000 | $560 | 2003 | 1,337,347 | $762,185,000 | $569 | 2002 | 1,153,915 | $694,883,000 | $579 | 2001 | 1,090,329 | $710,769,000 | $652 |
In table 2 this tendency appears very obviously. In the low price segment, that is prices below $500, are about two third of the whole market volume. Comparing acoustic and electric guitars it can be observed that there is a stronger request for high prize electrics than acoustics. | Units Sold | Units Sold | Type | Acoustics | Electrics | Under $100 | 390,028 | 256,354 | $101 to $200 | 410,030 | 561,537 | $201 to $350 | 110,008 | 195,317 | $351 to $500 | 40,003 | 97,659 | $501 to $1,000 | 40,003 | 61,037 | $1,001 to $1,500 | 10,001 | 24,415 | Over $1,5o1 | 20,001 | 36,621 | Total | 1,490,260 | 1,501,000 |
Also it turns out that high quality guitars as Gibson’s or Paul Reed Smith’s, which are presented in this paper, are prestige goods with an inverse price-demand relationship. That is higher prices are associated with higher quality. Gibson’s former attempt to join the low price segment in order to compete with
The global market for music instruments covers about $16,8 billion. As there are no reliable sources on worldwide sales data for guitars, the U.S. market shall be examined exemplarily. Table 1 shows the development of units sold, retails, and the average prices over the last ten years. It can be observed that there is a growth of nearly 275% in units sold, and about 160% in retail, whereat the average price decreased by 57%. According to this there is a strong tendency for low price products. Year | Units Sold | Retail | Average Price | 2010 | 2,991,260 | $1,151,290,000 | $372 | 2009 | 3,302,670 | $1,158,592,050 | $350 | 2008 | 3,201,220 | $1,022,861,000 | $309 | 2007 | 2,341,551 | $903,261,000 | $386 | 2006 | 1,942,625 | $921,057,000 | $529 | 2005 | 1,742,498 | $922,280,000 | $529 | 2004 | 1,648,595 | $923,522,000 | $560 | 2003 | 1,337,347 | $762,185,000 | $569 | 2002 | 1,153,915 | $694,883,000 | $579 | 2001 | 1,090,329 | $710,769,000 | $652 |
In table 2 this tendency appears very obviously. In the low price segment, that is prices below $500, are about two third of the whole market volume. Comparing acoustic and electric guitars it can be observed that there is a stronger request for high prize electrics than acoustics. | Units Sold | Units Sold | Type | Acoustics | Electrics | Under $100 | 390,028 | 256,354 | $101 to $200 | 410,030 | 561,537 | $201 to $350 | 110,008 | 195,317 | $351 to $500 | 40,003 | 97,659 | $501 to $1,000 | 40,003 | 61,037 | $1,001 to $1,500 | 10,001 | 24,415 | Over $1,5o1 | 20,001 | 36,621 | Total | 1,490,260 | 1,501,000 |
Also it turns out that high quality guitars as Gibson’s or Paul Reed Smith’s, which are presented in this paper, are prestige goods with an inverse price-demand relationship. That is higher prices are associated with higher quality. Gibson’s former attempt to join the low price segment in order to compete with