Customer/Market problem
Australia is a nation rich in diversity, culture, and geographical features. A richness that is embodied in her music which embraces all genres and styles. From the folk song, blues, pop, hip-hop and rock music. Most of the people in Australia love rock music. One of the best rock bands in Australia is the AC/DC which have motivated many young people to enjoy and embrace rock music to the extent of making it their hobby. One of the basic instruments used in rock music is the electric guitar which requires a pedal board (Ball, 2017). A Pedalboard is a flat board that acts as a container, patch bay, and power supply for the effects required in an electric guitar. The pedal boards are expensive therefore unaffordable to most starter guitarists. Also, professional guitarists are looking for tailor-made boards suit their experience. The two matches are currently missing in the market. Matching innovation, customization and economical on the pedal board is the new idea to enter the already explored markets.
According to Sophie Benjamin (2017) in her article “intro to pedals,” most beginners should consider buying second-hand pedals because most of the new ones are expensive. One disadvantage of purchasing a second-hand device is that it has shorter warranty period than the new devices (Colless, 2017). For the pro guitarist, they are looking for more customization on the features according to their satisfaction. The features include the wheels, cases and raised surfaces that make it easy to reach the pedals furthest away from the player. They are also looking for more improved designs and which will be less costly to maintain.
The business idea formulated from the market niche is to create pedal boards for electric guitars which will be economical for the beginners such that they will be able to afford new ones. Additionally, to make a customized pedal board with an improved new design to tap the pro-guitarist market.
Benefits of the idea
The majority population (59%) of Australia believes that music is a good hobby and an effective medium of expressing oneself. Therefore, making an improved and affordable pedal for electric guitars will see music improvement and many people will enjoy the new technology of the electric guitar. It is believed that learning a musical instrument makes one do better in test scores or other subjects such as languages and mathematics. It is also believed that most teenagers who play instruments have fewer indiscipline cases. Making a pedal board which will be more affordable with an attractive look will attract many beginners. They will, thus, acquire some or all the benefits stated by the study above (Australian music association, 2007).
The other benefit will be to bridge the gap between the affordability of pedal boards. The innovative idea will lead to an increase in the number of pedal boards. The products will be availed in the remote areas where musicians are forced to hire them at an expensive cost (Darwin,2017). The new boards will be portable and will be affordable to the upcoming artist so they will no longer hire them but will become owners.
According to Music Australia, “Australia is the third music market in the world in the overall revenues.” This fact suggests that improvement in the musical instruments is important. Making more people who have got the talent but are unable to access basic devices such as the pedal boards to acquire them at an affordable price will see an increase in the revenue. This is because more artists will be able to produce their songs with ease. They will also be able to do live shows effectively. The business will also create employment for young people who are unemployed. The company will also create profit for the owner and generate revenue for the government through tax payment.
Feasibility of the Idea
The business requires several strategies to fill the market gap available. First is to understand its target customers, what the customers want, internal and external environment of the business, and suppliers of the material needed, legal environment, and the economic environment.
Customers who are mostly the young men in Australia believes that playing the guitar makes them more attractive to their opposite sex, Thus, playing an electric guitar makes it more of an added advantage. Three-Science experiment research proved that most women are attracted to men who play the guitar (Stow, 2017). Therefore, making pedalboards more accessible and available will gain more customers who are using guitars for different reasons. Another ready market includes the beginners who are unable to access the pedals because they are limited in number and their unavailability, especially in remote areas. Additionally, there are those guitarists who are looking for a new innovative pedal board which they can easily be customized for their personal use.
The environment for the business is conducive all over the country. However, a more conducive environment is the remote places because of a large number of upcoming artists who are not able to access most musical instruments such as pedal boards. Additionally, the suppliers of materials that build innovative pedal boards are available in the market. There is also the availability of raw materials required for building the pedal boards including tuners, compressors, chips, bolts, carpet tiles, and woods. Making a new pedal board is easy and also saves a lot of money (Guitar magazine, 2015).
The business will not require a lot of capital to start. However, close attention will be given to the engineer who will be completing the set-up of the pedal boards. With the ideas already put in place, the only element required is the workforce to implement the idea. Legal requirements are the business permit and license which are relatively fair.
Business Model
Customer Segment
Our product targets a whole range of customers from beginners to professional guitarists and households. The market is undifferentiated, and any customer can own our product depending on their reasons and use. The product quality features, design, innovativeness, customization, and affordability, offer the best niche to target the whole market.
Value proposition
We are offering a wide range of customization adapted to everyone from novice guitarists to experienced guitarists. Our product will also have performance solid and compact excellence, best quality, and innovative features which satisfy customers expectations. We will also offer intuitive usability features to make our product give our customers the best feel and interface needed when using them.
Channels
Our product will be distributed from music instrument stores and online services. This will offer convenience to our customers and also play a role in reducing cost in the value chain, which ultimately has an impact on prices of the pedal boards.
Customers Relationships
Our customers will have 24/7 assistance from us in case of any problems in usage or deliveries. We also intend to build a community of customers with a common interest in music and guitar. These communities are easy to reach and also to serve their interests, through seminars, open online forums, and social networks.
Revenue Streams
Though our main objective in producing pedal board is to serve the interests of the customers by bridging an existing gap, we also expect to earn profits from our good services. Our revenues will be generated through product sales: that is B2B, B2C, and B2B for MXR relationships.
Key Resources
For our product to be marketable, we need key resources for value addition in our value chain. Our key resources will be: human resources, that is, marketing and sales teams, creative designers; intellectual resources, like knowledge, brand name and copyright; and financial resources from investors.
Key Partners
For successful business and market leadership, beneficial and mutual partnerships are inevitable. These partners work for the common good, which is a success and market competitiveness of the product so that all remain in business. Our company will partner with OEMs, distributors both on-line and off-line, famous artists and musicians, forum and communities, specialized magazines, and influencers like bloggers. Each one of these will be engaged for a specific purpose(s) which will add value to the product.
Key Activities
Out company will mainly focus on production of affordable quality pedal boards. We will also engage in, though not as the main business, producing other effects of guitars.
Cost Structure
For any production to be complete, there costs associated with it. We will incur both fixed costs and variable costs which will be appropriated in the final product.
Critical success factors
Our pedal board is a novel idea, in the aspects of innovativeness, design, customization, and affordability. Some of the key success factors are: web marketing and sales to ensure we reach customers directly and also to avoid additional costs to the value chain, actively carrying out research and development to improve our product and also to remain competitive in the industry, maintaining the initial value proposition and even improve on it because it has far-reaching influence on customers satisfaction and loyalty, maintaining customers good relationships, and lastly creating partnerships which will add value to the company’s value chain. Conclusion
Our pedal board is revolutionary game changer in the music instrument industry and the whole music market. We are looking forward to becoming the market leaders in offering innovative and customized affordable pedal boards. Our product gives value and satisfaction needed by our target market. Our company strives to make it a perfect brand that is the pride of our customers, by making sure we meet their expectations and trust.
We anticipate growth in the market after launching this product, which is likely to stir up the market status-quo. Although our competitors might take up the new development and work on it, we stand a better position to create customers loyalty and lasting relationships and commitments. The product is the new frontier in electric guitar pedal board market.
References
Australian music association, (2007). Australian altitudes to music research summary, Australian music. Available at: https://www.australianmusic.asn.au/australian-attitudes-to-music/ (Accessed 3rd May 2018).
Ball, E., (August 1, 2017). How to Wire a Pedal Board. Ernie Ball. Available at: https://blog.ernieball.com/interesting/how-to-wire-a-pedal-board (Accessed 3rd May 2018).
Benjamin, S., (Jan, 17). Girls Rock Melbourne?—?intro to pedal boards. Medium. Available at: https://medium.com/@sophiebenjamin/girls-rock-melbourne-intro-to-pedal-boards-35dfb9809a38 (Accessed 3rd May 2018).
C.M.G.A., (July 11, 2013). Porter’s Five Forces. C.m.g.a. Available at: https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html (Accessed 3rd May 2018).
Colless. J., (Oct. 16, 2017). Is it possible to get venture capital in Australia? Quora. Available at: https://www.quora.com/Is-it-possible-to-get-venture-capital-in-Australia (Accessed 3rd May 2018).
Darwin, R., (12, Nov. 2017). The challenge of making music in remote Northern Territory communities. News. Available at: https://www.abc.net.au/news/2017-11-12/aus-music-month-remote-indigenous-music-challenges/9134422 (Accessed 3rd May 2018).
Fitzgerald, R., (November 4, 2016). Happy. Available at: https://hhhhappy.com/before-you-buy-a-new-stompbox-make-sure-you-check-these-out-these-7-australian-manufacturers-of-boutique-guitar-pedals-as-chosen-by-ben-shaw/ (Accessed 3rd May 2018).
Guitar magazine (Sep. 22, 2015). Build your own Pedalboard. The guitar magazine. Available at: https://www.theguitarmagazine.com/features/diy-workshop-build-your-own-pedalboard/ (Accessed 3rd May 2018).
Music Australia, (2017). How the Australian music. Music Australia. Available at: https://musicaustralia.org.au/discover/the-professional-music-industry/how-the-australian-music-industry-works/ (Accessed 3rd May 2018).
Stow, J., (5 Jun 2017). Science Proves That Guys Who Play the Guitar Really Are Sexier, Elle studio. Available At: https://www.elle.com.au/news/science-confirms-that-guys-with-guitars-are-peak-sexiness-13326 (Accessed 3rd May 2018).
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