1. Kerianne Marshall David Emmert Isaiah Thomason “The Wal-Mart of Music”

2. OVERVIEW HISTORY CURRENT MARKETING MIX TARGET MARKET STORE LAYOUT S.W.O.T. SUMMARY

3. HISTORY Began 1959, in Hollywood Re-named Guitar Center in 1964 Became multi-channel retailer in 1999 Bought Musician’s Friend (Oregon based) Acquired internet and catalog sales 2005 Acquired Music and Arts Center Inc.

4. CURRENTLY 2007 now has 171 stores and growing Current stock price - $45.74 Net Sales 2005 - 1.7 Billion Net Sales 2006 - 2.4 Billion “Nations #1 retailer of guitars, amplifiers, percussion instruments, keyboards, pro-audio and recording equipment.” Goal is to “continue to leverage our leading industry position”

5. MARKETING MIX Products Guitars Bass Keyboards Drums & Percussion DJ & Lighting Recording Live Sound Books & Videos Lifestyle Price Lowest Industry prices Emphasis on lower-end equipment Place Big Stores All over U.S.A. 171 Stores Promotion “Category Killer” Mass Marketing “Guitarmageddon” $1000’s in prizes

6. TARGET MARKET “Baby boomers looking to emulate their 60’s musical heroes, or kids hoping to be the next Green Day” - MSN Money, 7/13/05

7. STORE LAYOUT

8. STORE LAYOUT (Cont.) Departments by Product Category Sound proof demo rooms Can be crowded Rockwalk http://www.guitarcenter.c om/company/tour/ http://www.guitarcenter.c om/company/tour/

9. STORE LAYOUT (Cont.) Product Levels Lower Beginner Guitars (cheap)  $100-$300 Mid Intermediate Guitars  $400-$1000 Upper Top of the line  $1000-$5000

10. S.W.O.T. Strengths Selection Price Well known Locations Weaknesses Employees work on commission Overwhelming atmosphere “Wal-Mart complex” Store Layout

11. S.W.O.T. Opportunities Music Foundation (music in schools) Spin-off for high-end buyers Threats Losing reputation Over expansion Sam Ash Music / Sweetwater

12. VIDEO Adam Fulara