Miles Ahead Guitars: Marketing Plan for International Expansion

This report presents a comprehensive marketing plan for Miles Ahead Guitars, a UK-based company producing folding guitars. The report begins with an overview of the current marketing mix and the unique value proposition of Miles Ahead Guitars. It then delves into international market selection, evaluating the global guitar market and specifically analyzing the guitar markets in the Netherlands and India, including PESTLE analyses and a comparison of the two markets. Porter's Five Forces analysis is applied to the Indian guitar market. The report explores various international market entry strategies, recommending a specific approach for Miles Ahead Guitars. A detailed market plan for India is then developed, including organizational and marketing objectives, a marketing strategy based on the STP model, and a growth strategy using the Ansoff Matrix. The marketing mix, including product, price, place, and promotion, is thoroughly discussed, with specific strategies tailored for the Indian market. The report concludes with a digital promotion strategy and relevant figures and tables to support the analysis and recommendations.

Table of Contents
1. Introduction.................................................................................................................3
1.1. Folding Guitar – Current Marketing Mix...............................................................3
4.1. Unique Value Preposition of Miles Ahead Guitars...............................................4
2. International Market Selection....................................................................................4
2.1. Global Guitar Market............................................................................................4
2.2. Netherland Guitar Market.....................................................................................6
2.2.1. Netherland Guitar Market – PESTLE Analysis..............................................8
2.3. Indian Guitar Market.............................................................................................8
2.3.1. Indian Guitar Market – PESTLE Analysis......................................................9
2.3.2. Indian and Netherland Market Comparison...................................................9
2.3.3. Porter’s Five Forces Analysis in Indian Guitar Market................................10
3. International Market Entry Strategies.......................................................................12
3.1. Direct Exporting of Products...............................................................................12
3.2. Brand Franchising..............................................................................................13
3.3. Joint Ventures in International Marketing...........................................................14
3.4. Miles Ahead Guitars Entry Strategy to International Market..............................15
4. Market Plan – Miles Ahead Guitars in India.............................................................16
4.1. Organizational Objectives..................................................................................16
4.2. Marketing Objectives..........................................................................................16
4.3. Marketing Strategy.............................................................................................16
4.3.1. STP Model (Segmentation, Targeting, Positioning)....................................16
4.4. Growth Strategy..................................................................................................20
4.4.1. Ansoff Matrix................................................................................................20
4.5. Marketing Mix.....................................................................................................21
4.5.1. Product.........................................................................................................21
4.5.2. Price.............................................................................................................21
4.5.3. Place............................................................................................................22
4.5.4. Promotion.....................................................................................................23

List of Figures
Figure 1- Folding Guitar - Product Image..........................................................................4
Figure 2- Leading countries with highest music product sales - 2018..............................5
Figure 3 - Region wise music product sales - 2018..........................................................6
Figure 4 - Europe Guitar market data and assumptions (Statista, 2020)..........................7
Figure 5 - Netherland Guitar Market Position in Contrast to the world (Source:
Statista,2020).....................................................................................................................8
Figure 6 - Porter's Five Forces Analysis of Indian Guitar Market....................................11
Figure 7- Perceptual Map - MA Guitar India....................................................................20
Figure 8- Ansoff Growth Matrix for MA Guitar at India....................................................21
Figure 9- Pricing Factors (Source Kotler,2008)...............................................................23
Figure 10 - Product Distribution Channel Breakdown (Source: Kotler, 2008)................23
Figure 11 - Miles Ahead Guitar Promotion Mix India......................................................25

List of Tables
Table 1- Indian Guitar market Pestle Analysis................................................................11
Table 2 – Indian Market Segmentation of MA guitars.....................................................18
Table 3 – Indian Targeting MA Guitars...........................................................................20
Table 4 - Miles Ahead Guitar Digital Promotion Strategy................................................25

1. Introduction
Miles Ahead Guitars is a company producing guitar which is based on United Kingdom.
Their main product of manufacture is a folding guitar that can fit to a case of around
60X30X15cm which is of the size of an ordinary suitcase. Currently annual sales of
worth 1.2 million pounds is acquired by their sales and marketing team. As a business
expansion strategy it is required to step into the international market. This report
consists of a fully marketing plan for Miles Ahead Guitars overseas expansion along
with possible market evaluation details.
1.1. Folding Guitar – Current Marketing Mix
1. Product – Acoustic type foldable guitar made out of the finest Mahogany wood
(Color variations and value additional available)
2. Price – Cost of the base product added with the desired margin as per the company
requirements
3. Promotion – Done using the paper advertisements, TV commercials and radio
jingles
4. Place – Sold by using the supermarket chain “Metro” and other music product
dealers in Germany
1.2 Unique Value Preposition of Miles Ahead Guitars
Figure 1- Folding Guitar - Product Image

Miles Ahead Guitars has identified a greater niche in the music market by converting the
traditional acoustic guitar to a foldable version by adding an innovative inclusion.
Therefore their unique value preposition becomes, “Lightweight Portable Guitars for any
place any occasion”. Therefore this has given competitive advantage for the company.
2. International Market Selection
2.1. Global Guitar Market
Music industry is a rapidly growing sector as the demands never go down as which
people all are interested in listening to any kind of a music. There as a whole music
industry has grown rapidly within the last decade of time with introduction of new
technologies and online based music performances.
Above graphs prove the fact that the largest music products are sold in North America
while the rest of the potential is in Asian and European countries.
Guitar is a very common instrument used in many music occasions due to its special
characteristics. According to the report by Technavio 2019, the growing number of
Figure 2- Leading countries with highest music product sales - 2018

concerts and live events is a significant driver of the global guitar market's growth. The
rising interest of the young community in music has contributed to the creation of
various musical bands performing diverse styles of music such as jazz, punk, rock,
metal, and electronica. Furthermore, a rise in consumer disposable income leads to a
high demand for guitars in developing countries like China and India (Technavio, 2019).
As a result of changing habits and higher living expectations, people are inspired to
invest on leisure activities such as music, which is expected to boost musical instrument
sales.
In 2020 so far before the Covid-19 outbreak, sales in the String Instruments market
stood at US$ 596 m. The demand is forecast to rise by 2.7 percent per annum (CAGR
2020-2023). Globally, most revenues are produced in China (in 2020, US$ 834 m). In
2020, per individual incomes of US$ 0.7 are produced in relation to total population
figures (Technavio, 2019). (These figures may vary depending on the global economic
status due to Covid-19 attack)
Therefore a greater potential lies for the global guitar market and Miles Ahead Guitar
has to use it effectively to gain the best competitive advantage of their innovative
product. Backed up by the above evidences and data it can be concluded that entering

to the other countries of the Europe where the third highest music sales demand is and
the Asian region with the greatest developing market is the ideal.
2.2. Netherland Guitar Market
Figure 4 - Europe Guitar market data and assumptions (Statista, 2020)
According to above data it is evident that there is an expected rate of compound annual
growth rate (CAGR) in consumers of Europe region and are much interested towards
the string instruments specially, Guitars. Among these Italy, France, Netherland and
United Kingdom comes to main position of string instrument use (Statista, 2020).
Among those according to the demand forecast and the competitor availability
Netherlands becomes an ideal international market for Miles Ahead Guitar.

According to Statista, 2020 Netherland Guitar market lies in the 38th Global position with
a USD 137 million (Statista, 2020). Their main Guitar producers are follows with their
respective market share,
1. VanderMeiji Guitars – 34%
2. JHG Guitars – 23%
3. RebelRelic Guitars – 16
These 3 manufacturers cover the 73% of the total market and other segments are
being covered by the rest of the manufacturers. Therefore there is a good potential
to enter into Netherland market and following are the main reasons.
 Easier access to the export as the country is nearby
 Growing demand for guitars in multiple traditions of music in Netherland.
 Growing music band setup and reality music shows with increase travel
based music options
 Main Indi rock based music style in Netherlands that has guitar for a
fundamental instrument.
2.2.1. Netherland Guitar Market – PESTLE Analysis
Prior to entering any international market it is crucial to analyze the environment
conditions of the potential market to determine whether that investment is worthwhile. A
Figure 5 - Netherland Guitar Market Position in Contrast to the world (Source: Statista,2020)

PESTLE analysis is a method for analyzing the main factors (Political, Cultural,
Sociological, Technical, Legal and Environmental) that affect an external entity (Jacob,
2015). It provides qualified professionals insight into the external conditions that shape
their organization. The research is versatile, and it can be used in a variety of various
situations for organizations. The findings can be used by people's experts and senior
executives to direct strategic decision taking.
Political Economic
 Government bans and taxation on
product import
 Trade favourations in the music
industry
 Higher income growth in the
middle and high income level
population
 Stable GDP growth
Social Technological
 Rising people living index which
moves towards a hobby like music
 Millennials in search of content
creation era of You Tube and other
platforms
 Higher technological advancement
in the music industry
Environmental Legal
 Higher influence and research for
use of sustainable and eco-friendly
material
 Environmental and CO2 emissions
consciousness awareness issues
 Strict rules and regulations in the
manufacturing industry
 Copyright and Intellectual property
laws which are favorable for a
innovative product
2.3. Indian Guitar Market
According to Statista,2020 forecast reports guitar market potential in the world is mainly
located in China and the second highest possible market is in India with a expected 531
USD million revenue from India itself. In 2018 India had the worlds lowest per capita
sales value of music instruments to a value of 0.12 , but by 2018 it has reached up to a
value of 2.3 which is a drastic growth (Statista, 2020). Market potential value can be
justified by that finding.
Therefore India is a Ideal developing market for entry for the “Miles Ahead Guitars”
company. Other than that following reasons too increase the potential,
 Indian is a country full of diversity and more than 34 varieties of music cultures
 As the geographic area of the country is very high most of the musicians has to
travel a lot and also they prefer portable Guitars rather than their traditional bulky
instruments.
 Number of young Hindi based musicians blooming has increased rapidly.

 Mashup based music method trending in India making more and more
youngsters to engage in Music.
 YouTube era of Music trending in India with demand for personal affordable
music instruments that include guitar.
2.3.1. Indian Guitar Market – PESTLE Analysis
Table 1- Indian Guitar market Pestle Analysis
Political Economic
 Lower goods and services is an
opportunity
 Effect of the Indian demonetization
policy
 Concessions provided by the
Indian trade association for
promoting music industry
 Narendra Modi’s (Indian Prime
Minister) support in uplifting music
activity
 India’s rapidly growing economy
and the economic status is a
greater opportunity for new
industries
 Lower competition from the
international entrants to the market
 Exchange fluctuations makes in
unpredictable for the sales
Social Technological
 Career changes in the life style of
the millennials making more
interest towards music
 Higher rate of music band
formation and public interest
towards music
 Western technological integration
to eastern music type is a new
trend in the market
Environmental Legal
 Higher environmental laws making
Indian manufacturers difficult to
produce guitars from wood,
making a good opportunity to
international entrants
 Newly introduced music related
sound pollution laws
 Pricing constitution introduced by
the Consumer Affairs Authority of
the India
2.3.2. Indian and Netherland Market Comparison
When a comparison of these two selected markets are done in terms of the PESTLE
conditions, it can be clearly seen that the developing market of the India is much
favorable when Miles Ahead Guitars is firstly stepping to the international market.
When the political environment is taken much of loosened policies can be seen in India
being a country with huge geographic area. So the entry become much of easier with all
the political concessions provided. When considering the shipping and international
logistics concerns it seems like the Netherland is comparatively easier. But overall

considering all the economical, technological, environmental, legal characters Indian
developing market is ideal for the first entry.
PESTLE factors come more favorable to Indian market. But before entering it has to
bee proven with more facts. Therefore other market analyzing techniques like SWOT
analysis, Michael Porter’s Five forces, competitor analysis, cluster analysis etc. needs
to be done. Therefore a five forces analysis is done for the Indian market.
2.3.3. Porter’s Five Forces Analysis in Indian Guitar Market
This analysis proves that comparatively as an International company it is much easier
for Miles Ahead Guitar company to enter Indian market with a lower market entry cost
and then acquire the market with lower effort. This becomes much easier as the
supplier bargaining power is high for the Indian manufacturers, and as Miles ahead is
producing their parts in UK which is comapartively lower in production cost this will be
much easier. Other than that this proves that customer loyalty is little lower in Indian
market, being a UK, European product with a good pricing strategy it will be much
easier to Miles Ahead to capture the customer shares easily as in Asian countries like
India there is a much enthusiasm for Europe products.
Industry Rivalry – Low
Low consumer loyalty
Few but quality competition
Higher cost of switching and
leaving the market
Supplier Power- HIGH
Very few suppliers of major raw
materials
Higher cost of raw materials
Highly segmented
Threat of Substitutes – VERY
HIGH
Availability of alternative
string music instruments
Easier switching for the
substitutes
Buyer Power: Moderate
Homogenous products
Large orders for academies
Higher price sensitivity
New Market Entrants - LOW
Comparatively easier to enter
Lower investment needed
Low customer switching cost
Figure 6 - Porter's Five Forces Analysis of Indian Guitar Market