Fender: Multibrand Strategy

IN 1948, a radio repairman named Leo Fender took a piece of ash, bolted on a length of maple and attached an electronic transducer.” 

                

 

Fender was started up in 1946 and was a company first of its kind. Before this Gibson (founded in 1902) had been making guitars for professionals. Mid 1900’s was where guitar music was really taking off and people wanted to get their hands on this instrument. Fender was really the first company to come out with guitars that average people could buy. There was something about the tone that appealed to people, the design was curvy, cool, and innovative in a way that people appreciated. Many legends including Jimi Hendrix and The Beatles.

As explained in the paper, “Positioning,” as popularized by Jack and Trout, Fender was the first on its ladder and it was at the top. Soon Fender wanted to expand and reach the lower income demographic with intermediate and beginner guitarists. Fender adopted the “single-position strategy.” Fender split up into three different brands.

1. Fender America (Professional quality guitars hand crafted in America)

2. Fender Mexico (Intermediate quality guitars mass produced in Mexico)

3. Squire Fender (Beginner quality guitars mass produced in China)

This strategy allowed for Fender to expand as a company without loosing the reputation or clientele it had developed over the years.

Works Cited:

Morrissey, Janet. “A Guitar Maker Aims to Stay Plugged In.” The New York Times. The New York Times, 29 Sept. 2012. Web. 11 Nov. 2014. <http://www.nytimes.com/2012/09/30/business/fender-aims-to-stay-plugged-in-amid-changing-music-trends.html?pagewanted=all&_r=0>.

 

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