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Electric Expressions Project

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					              December 11, 2008




 Business Plan for




“Exotic Touch, Beautiful Sound”
    8600 University Blvd, Evansville, IN 47712

           Paul Castillo, P.R. Manager
              Paul.Castillo@eeguitars.com

    www.electricexpressionsguitars.org
                                                     Table of Contents

Executive Summary

       1.1 Description of Opprotunity∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙4

       1.2 Explanation of the Business Concept∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙4

       1.3 Growth Plan∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙5

       1.4 Management Team Description∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙6

       1.5 Amount and Purpose of Money Being Requested∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙8

The Industry, Target Customers, Competitors

       2.1 Industry Overview∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙9

       2.2 Target Market∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙10

       2.3 Competitors∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙10

       2.4 Competitive Advantage to be Achieve in the Market∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙11

Company Overview

       3.1 Company Overview∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙12

       3.2 The Types of Guitars Built∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙12

       3.3 The Store Layout∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙15

Marketing

       4.1 Marketing Objective∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙16

       4.2 Target Market∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙16

       4.3 Positioning∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙17

       4.4 Market Penetration∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙17

       4.5 Pricing Strategy ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙20

       4.6 Marketing Mix∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙22

Location/Operation
          5.1 Location∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙24

          5.2 Hours of Operation and Strategy∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙25

          5.3 Employee Hiring and Training∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙26

          5.4 The Production∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙27

          5.5 Facilities and Equipment ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙28

          5.6 Strategic Alliances/Supplier∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙30

Harvesting

          6.1 Overall Harvest Plan∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙32

          6.2 Harvest Plan—Selling the Firm∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙32

          6.3 Execution of the Harvest Plan∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙33

Appendix I Promotional Brochure∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙35

Appendix II Signature Guitar Replica Advertisment∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙37
                                      Executive Summary



1.1 Description of the Opportunity

       Electric Expressions has discovered a new opportunity for an exotic line of wood.

Electric Expressions uses this exotic wood as materials for the production of high quality guitars.

We have formed a relationship with a supplier that will provide Electric Expressions with an

exotic wood which has been known to produce a high quality finish and provide a superior tone

when compared to traditional woods used in the production process. Electric Expressions is

innovative in connecting this wood in the form of high quality finished product (guitars) with the

desiring market of people who seek quality guitars.



1.2 Explanation of the Business Concept

       Electric Expressions is an internet based company that uses exotic woods to construct

cutting edge guitars that are superior in quality, tone, durability, and appearance. The guitars are

built, assembled, and finished by hand in our facility to the highest standards. Once finished,

they are available for sell at guitar stores and the internet. Prices start at $999 and can increase

depending on the degree of customization. Electric Expressions currently offers 6 signature

replica design guitars and also specializes in guitar customization. The 6 replica design guitars

are sold to guitar stores at wholesale prices. Electric Expressions reduces costs tremendously

because it is an internet based company. Therefore, lease, utilities, insurance, wages, phone, and

all other expenses associated with a physical store front do not exist for Electric Expressions.

However, Electric Expressions still reaps some of the benefits of having a physical store front.

For instance, the benefits of advertising, display cases, and getting product in the faces of
guitarists without paying extra wages is included in the guitar stores’ overhead costs that Electric

Expressions sells to as wholesale prices.



1.3 The Growth Plan


       Electric Expressions is an internet based company with a virtual store front. Lacking a

physical store front means there is a lack of overhead costs associated with having a physical

store front. Eliminating these overhead expenses allows Electric Expressions the ability to

maximize profit. During the first year of business, Electric Expressions will remain selective on

who we do business with as we are consciences of our reputation. Electric Expressions will also

add more guitar stores to our product carrier list. Within the first 2 years of business, Electric

Expressions will expand its production facilities to meet the projected level of high demand

around the world. Electric Expressions will continue to strive for success with innovation and

quality at the top of the priority list. As more and more requests for replicas that are not

advertised are made, Electric Expressions will expand the number of signature guitar replicas

from six to ten. Even though we will not have any physical storefronts, we will still sell our

guitars to the local stores as well as advertise locally to increase our local market share. We will

continue to advertise on the internet, which will also allow our customers to be located anywhere

in the nation, as well as around the world.
1.4 Management Team Description


        Paul Castillo is over the PR department for Electric Expressions, and he is a key

component to the company. Paul has been recognized for a multitude of awards and

involvements, however the most relevant to note would be “Business Plan of the Year.” This is

an award he received while studying business in the Philippines. This experience brings an

international perspective to Electric Expressions. This international perspective is capitalized as

Electric Expressions moves to be a global company. He is currently studying Business

Administration at the University of Southern Indiana and focusing on Entrepreneurial

Management. Paul specializes in the areas of creativity and language. A few more of his special

skills include task execution and self motivation.


        Andrew Effinger is over our marketing division. This includes negotiating wholesale

transactions with our product carrier list. His experiences at Northside Lawncare, Fritchley

Dental Lab Inc, and as a Camp Councilor have contributed to his interpersonal skills. He excels

in the areas of communications and sales. Andrew brings process management and innovation to

Electric Expressions. He also contributes in the form of group cohesion and detail orientation.

Andrew is currently studying Business Management at the University of Southern Indiana, and

plains to finish in the near future.


        Todd Martin is an invaluable component to our team. He is over the Research and

Development department. He brings a strong since of customer service to the table. His

background includes 7 year of retail experiences from grocery stores, Target, and

ATV/motorcycle shop. A few of Todd’s special skills include task execution and meeting

deadlines. Couple those qualities with a few of his talents such as adaptability and a continuous
strive for excellence, and it is easy to see the amount of worth Todd brings to Exotic

Expressions. Todd is currently studying Business Administration at the University of Southern

Indiana with an emphasis in Management.


       Kacheyta McClellan is another key component at Electric Expressions. He is a senior at

the University of Southern Indiana that brings real world and management experience to the

table. His experience comes from positions held at the University of Southern Indiana’s

Multicultural Center, Fifth Third Bank, and FedEx Ground. A few of his special skills include

delegating tasks and supervising. Complementing these skills are the talents of task execution

and adaptability. Kacheyta is over the Legal Division. He is primarily charged with making

sure Electric Expressions has proper permission to create are recreate the masterpieces its

customers demands.


       Loren Weiss is the fifth strong leg that keeps Electric Expressions firmly positioned.

Loren is the Webmaster, so he monitors a tremendous amount of orders, responds to emails, and

sends proof correspondences to customers. Loren is currently studying Business Management at

the University of Southern Indiana. He brings computer savvy methods, as well as expert option

to the table. His background includes guitar repair and guitar tuning. He is also a quick learner

and also has analytical skills.
1.5 Amount and Purpose of Money Requested

       The amount of money required for startup is $20,000

       Two thousand dollars is needed for the initial setup and continued use of a website for the

first year. In the two thousand needed for website maintenance, five hundred is needed for the

purchasing and continued use of the domain name. The remaining one thousand five hundred

dollars allocated to the website is needed to pay computer professionals to periodically update

the website as well as site maintenance.

       Six thousand dollars will go towards purchasing banners, fliers, and billboard space. The

banners and fliers will be used in the local music stores as well as on college campuses and other

selected businesses.

       Web advertising will also play a crucial role in our advertising strategies. We have

allocated four thousand dollars to web advertising. We feel that the use of web advertising is one

of the easiest ways to advertise on a global scale with the lowest cost.

       Electric Expressions will also sponsor “on campus” events each year as a way to give

back to the community. One will be held at the local University of Southern Indiana campus and

the other will be held at the University of Evansville campus. Each event will be allowed four

thousand dollars. At these events, students are able to handle the guitars as well as “test” or hear

them being tested (played).
                           Industry, Target Customers, Competitors



2.1 Industry Overview

       Currently, the guitar industry is in a trend that values individualism. The main ingredient

that creates a sense of individualism for a person is customization. This is why there are

individuals seeking customization. This customization can include the color, graphic, unique

material, and/or design graphics on the guitar. Some guitars are styled after the design of a

famous artist, which gives the consumer a connection with that particular artist, and all of these

elements are available through Electric Expressions.


       The era of customized guitars is across the board. Not only do experienced guitarists

want a customized look, there are guitarists at every experience level that want a guitar that feels

as if they designed it themselves and who hold quality at the same high standards as Electric

Expressions. Evidence of this trend can be seen on the websites of major guitar manufacturers

such as Fender and Gibson. Looking at their product line will also confirm the trend for

individualism. Every guitar, in all price ranges, has multiple options for different colors,

graphics, and/or styles. Additionally, this trend can be perceived in almost any magazine or

website with pictures of guitars because it can be difficult to come across two identical guitars.

This is attributed to individualism through customization. A poll was recently conducted at the

Guitar Lab in Evansville Indiana to further confirm the trend of individualism through

customization. This poll revealed that 50 out of 60 guitarists would prefer a custom made guitar.

44 of the 50 guitarists were willing to pay extra for customization, and 41 of the 50 guitarists

found Exotic Expression’s pricing chart on its virtual store front reasonable. A similar poll
conducted at the Guitar Center in Evansville Indiana revealed that 26 out of 26 guitar collectors

were impressed with at least three of the guitars in the Signature Guitar Replicas series.



2.2 Target Market

       Electric Expressions uses a multi-segment marketing strategy. The two segments include

the consumer who focuses on quality and the consumer who focuses on customization. The

Quality Consumer who desires or needs quality is generally an experienced player who wants the

beautiful sound produced by a guitar with exotic materials. The Customization Consumer who

desires customization will generally be at any experience level and wants the look and/or sound

of an exotic guitar. Each market will include people ranging from 18 to 55 years of age who live

anywhere in the world, and have a desire to play or collect guitars. While quality and

customization naturally dictate a higher price, Electric Expressions works hard to keep guitars at

a reasonable price. In addition, the instruments built may pull guitarists accustomed to only

acoustic guitars into the market of electric guitars simply by the texture and feel over the

“plastic” sensation of traditional electric guitars. While both target markets have similarities,

Electric Expressions feels each respected market deserves its own unique attention. Our guitars

produce a beautiful and vibrant sound from the use of exotic woods and the high quality we

strive for; hence our tagline, “Exotic Touch, Beautiful Sound.”



2.3 Competitors

       Electric Expressions has competition from other internet based guitar companies,

manufacturing companies that customize guitars, and guitar manufacturing companies that
wholesale replicas in the guitar industry. Because Electric Expressions is targeting Guitar Center

for contracts, the most notable are the following:

Ovation: Ovation is online guitar manufacturing giant

Gibson Guitars: Gibson Guitars is a guitar manufacturing giant that has a virtual storefront.

They currently supply Guitar Center with Eddie Van Halen Replicas that are advertised by

Guitar Center at a selling price of $21,428.57. Gibson also supplies Guitar Center with Jimmy

Page guitar replicas that are advertised at the selling price of $7,999.99

Fender: Fender also has a virtual storefront and is huge in the guitar manufacturing world.

Fender currently supplies Guitar Center with a Stevie Ray Vaughan Replica advertised at the

selling price of $1,599.99

Unknown Supplier: supplier X currently supplies Guitar Center with Randy Rhoads Replicas.

Guitar Center advertises these models at a selling price of $1,499.99.



2.4 Competitive Advantages to be achieved in the Market

    To be known for a selection of guitar replicas that are hard to find anywhere else

    To be known for our use of fine exotic woods and unmatched quality

    To have the best customer service in the exotic guitar industry

    The ability to keep the cost of imported exotic woods lower than our competitors through

       supplier relations

    The progressive knowledge and experience that we possess in the manufacturing of

       guitars

    To maintain a strong business culture that promotes quality and growth
                                        Company Overview




3.1 Company Overview


       Electric Expressions is an internet based company that uses exotic woods to construct

cutting edge guitars that are superior in quality, tone, durability, and appearance. The guitars are

built, assembled, and finished by hand in our facility to the highest standards. Once finished,

they are available for sell at guitar stores and the internet. Prices start at $999 and can increase in

price depending on the degree of customization. Electric Expressions currently offers 6

signature replica design guitars and also specializes in guitar customization. The 6 replica design

guitars are sold to guitar stores at wholesale prices. Electric Expressions reduces costs

tremendously because it is an internet based company. Therefore, lease, utilities, insurance,

wages, phone, and all other expenses associated with a physical store front do not exist for

Electric Expressions. Electric Expressions still reaps some of the benefits of having a physical

store front. For instance, the benefits of advertising, display cases, and getting product in the

face of guitarists without paying extra wages is included in the guitar stores’ overhead costs that

Electric Expressions sells to as wholesale prices.




3.2 Types of Guitars Built


       Exotic Expressions produces six (6) signature guitar replicas. They are the Jimmy

Hendrix, a replica of the guitar Jimi Hendrix’s was often seen playing the song Voodoo Child;

the Ace Freely, a replica of the guitar Ace Freely of Kiss was seen playing on several occasions;

the Randy Rhoads, a replica of the guitar Randy Rhoads who played for Ozzi Osborne was seen
playing the hit song Crazy Train; the Eddie Van Halen, a replica of the guitar Eddie Van Halen

of Van Halen was seen playing the hit song Eruption ; the Jimmy Page, a replica of the guitar

Jimmy Page of Lead Zeppelin was seen playing the hit song Stairway to Heaven; and the Stevie

Ray Vaughan, a replica of the guitar Stevie Ray Vaughan was seen playing the popular Texas

Flood. (See Appendix I for a brochure with a listing)


       In addition to these replicas, Electric Expressions also offers the option to customize

electric guitars. The materials options are the following: American Standard Series, Mustang

Series, Vintage Series, Axe Series, and the Custom Shop option. Below, the materials

descriptions are accompanied by a picture to show examples of the different styles and color

schemes. Electric Expressions products are displayed on our website with 800 call numbers to

ease the process of ordering and customizing.
3.3 Store Layout


       Electric Expressions is an internet based company. The Electric Expressions website

allows its visitors to view its six signature guitars. They are the following: the Jimi Hendrix, the

Ace Freely, the Randy Rhoads, the Eddie Van Halen, the Jimmy Page, and the Stevie Ray

Vaughan (see types of Guitars built for specifics). Electric Expressions also offers five material

combinations which are the following: American Standards Series, Mustang Series, Vintage

Series, Axe Series, and the Custom Shop options. In addition, website visitors will also find

catalogs with materials, finishing options, colors schemes, lettering options, and stringing

options. The virtual catalog is as easy as dragging and dropping a desired frame, and typing text

in the appropriate boxes that can also be dragged and dropped. There is even a description box

located below the created guitar image in case there is a special customization request that is not

offered in the catalog. All of these options make it easy for a guitarist to express their

individualism. Some of the other features of the virtual store front include uploading images or

graphics, FAQ, music page links to the 6 artists’ guitars Electric Expressions replicates, and

contact information such as phone, email, operation hours, etc. Electric Expressions house its

internet and manufacturing facility within the same building which is the old Wal-Mart space on

Evansville’s Westside.
                                           Marketing



4.1 Marketing Objectives

       The following are the marketing objectives that Electric Expressions uses as it strives to

maintain a strong business culture that promotes quality and growth.

      Electric Expressions uses a marketing mix to persuade the target marketed consumer that

       is concerned with quality to purchase an Electric Expressions guitar from a retailer.

      Electric Expressions uses a marketing mix to persuade the target marketed consumer that

       desires to customize to visit the company website in order to learn more about our great

       products.

      Electric Expressions uses a marketing mix that convinces the targeted market that the

       need for high quality customizable guitars is best satisfied with our services.

      The marketing mix keeps current customers loyal through brand recognition.

      Our marketing mix stimulates additional marketing in the form of conversation between

       current customers and new customers.




4.2 Target Market

       Electric Expressions uses a multi-segment marketing strategy. The two segments include

the consumer who focuses on quality and the consumer who focuses on customization. The

consumer who desires or needs quality is generally an experienced player who wants the

beautiful sound produced by a guitar with exotic materials. The consumer who desires

customization will generally be at any experience level and wants the look and/or sound of an

exotic guitar. Each market will include people ranging from 18 to 55 years of age who live
anywhere in the world, and have a desire to play or collect guitars. While quality and

customization naturally dictate a higher price, Electric Expressions works hard to keep guitars at

a reasonable price. In addition, the instruments built may pull guitarists accustomed to only

acoustic guitars into the market of electric guitars simply by the texture and feel over the

“plastic” sensation of traditional electric guitars. While both target markets have similarities,

Electric Expressions feels each respected market deserves its own unique attention. Our guitars

produce a beautiful and vibrant sound from the use of exotic woods and the high quality we

strive for; hence our tagline, “Exotic Touch, Beautiful Sound.”



4.3 Positioning

Electric Expressions positioning is as follows:

       “Electric Expressions thrives on creating guitars that strum individualism and quality.

Make your next guitar have the exotic touch and beautiful sound that only comes from Electric

Expressions.”




4.4 Market Penetration

       Quality Consumers are the typical target customers who want quality sound and quality

materials in their equipment. The quality consumer generally wants to be sure that the guitar

they are purchasing will not only be a part of their expenditures but will be an investment in the

long run. These are the customers who are able to buy an Electric Expressions guitar through

their disposable income. These targeted customers seek quality or customization.               These

customers range from beginners to experts that want an exotic guitar to use or add to their

collection.
       Customization Consumers are the target customers who would like to add their own

touch to their guitars. These are the people who are willing to go the extra mile and design a

guitar. These are the people that can afford the extra charges associated with customizing

guitars. For these people, there is nothing sweeter than being able to call your guitar “your

own.” They can visit our company website to select guitar materials, finishing options, colors

schemes, framing, and to type text in the appropriate boxes to be dragged and dropped.

Customers can also use the Special Customization Request to communicate something that may

not be offered in the catalog. Companies have the option to order at wholesale price on the

website. Most customers range from beginners to experts, depending on how they will be using

the guitar. For instance, some customers may want something as simple as their name or their

guitar’s name etched on the guitar. Others may want graphics, designs and special stringing or

functions for their convenience. Needless to say, the Electric Expressions customization option

matches customers’ personalities with guitar styles through individualism.


Sample Marketing Budget



                   Budget                                            $20,000

Expenses:

                   Website                                                              $2,000

         Banners, Fliers, Billboards                                                    $6,000

              Web Advertising                                                           $4,000

Promotions (On-Campus Events, Concerts)                                                 $8,000

            One on campus @ USI

            One on campus @UE
                        Total Marketing Cost                                            $20,000



       The Electric Expressions website is our most important tool. This is where the bulk of

our transactions, advertising, and communication take place.


       Banners and Fliers are given to targeted guitar shops for advertising purposes. Electric

Expressions supplies these stores with guitar replicas from our signature series for display and

sell. We sell our guitars to companies at wholesale value.


       Web Advertising is another important tool that Electric Expressions uses. We advertise

through the popular websites that have high traffic from our targeted market. Some of these sites

include performing arts associations such as BMI, ASCAP, and SESAC.


       Electric Expressions supports musical events as promotional opportunities. We primarily

focus on events that have live bands and partner with these groups by providing guitars from our

signature series for display or raffle, depending on group, venue, and number of people in

attendance. These kinds of events give Electric Expressions added publicity.
4.5 Pricing Strategy

       Electric Expressions has five lines of guitars, a signature replica series, and offers custom

made guitars. Our guitars are priced in the medium to high end, which is the range our targeted

customers are looking at. Our prices were derived from comparing our models to similar models

from our major competitors (Fender, Gibson, and Ovation). Electric Expressions guitars are

priced, on average, ten percent lower than our competitors’ models made with similar materials

and hardware. The signature series replica guitars made in our shop are priced between forty and

fifty percent lower than our competitors. This wide range of choices allows our customers to

choose the guitar that best fits their style and provides the tone and sound quality they are

looking for. Our product materials and prices are described below.




       Materials Descriptions
Signature Guitar Replica Series
4.6 Marketing Mix

       Electric Expressions uses a wide range of vehicles that appeal to the targeted market.


               1.   Print Media: magazines, posters, business cards, flyers,


               2. Broadcast Media: radio stations,


               3. World Wide Web: social websites, music sites, popup ads on specific sites


               4. Ads with Performing Arts Associations: BMI, ASCAP, SESAC


       Our strategy is to have our marketing pieces in the publications and locations that are

visible to our consumers. This includes placing promotional pieces in retail stores that carry our

products such as Guitar Center. Our marketing mix contains promotional pieces that are

informative of quality and descriptions of the six replica guitars we carry. They are the

following: the Jimmy Hendrix, a replica of the guitar Jimi Hendrix’s was often seen playing the
song Voodoo Child; the Ace Freely, a replica of the guitar Ace Freely of Kiss was seen playing

on several occasions; the Randy Rhoads, a replica of the guitar Randy Rhoads who played for

Ozzi Osborne was seen playing hit song Crazy Train; the Eddie Van Halen, a replica of the

guitar Eddie Van Halen of Van Halen was seen playing the hit song Eruption; the Jimmy Page, a

replica of the guitar Jimmy Page of Lead Zeppelin was seen playing the hit song Stairway to

Heaven; and the Stevie Ray Vaughan, a replica of the guitar Stevie Ray Vaughan was seen

playing the popular Texas Flood.


       Our marketing mix also contains pieces that persuade consumers that wish to customize

guitars to visit our virtual storefront and view the selection of materials, combinations, and

features we offer. Our materials options are the following: the American Standard Series,

Mustang Series, Vintage Series, Axe Series, and Custom Shop option—see section 3.2 for a

detailed description.


                    Budget                                              $20,000

Expenses:

                    Website                                                                  $2,000

         Banners, Fliers, Billboards                                                         $6,000

               Web Advertising                                                               $4,000

Promotions (On-Campus Events, Concerts)                                                      $8,000

            One on campus @ USI

            One on campus @UE

                         Total Marketing Cost                                               $20,000
                                        Location/Operation



5.1 Location



       Electric Expressions is an Internet based business. Our strategy is to focus on the

manufacturing and quality of our guitars coupled with our supplier relations and progressive

knowledge and experience to help us serve our customers better than our competitors. Our

“online storefront” allows our customers to experience a hassle free way of purchasing our

products 24 hours a day, 7 days a week, from anywhere in the world, and receive a one-

dimensional proof of the guitar they have created within 24 hours—or one working day.


       Our target market focuses on two main groups: The Quality Consumer, the customer

who is looking for quality, and the Customization Consumer, the customer who has the desire to

have a customized guitar. Our online store supports them in several ways. First, the Quality

Consumer is able to read numerous reviews about the guitars that have been purchased by other

customers. The website also outlines the specific qualities that each guitar has and will contain a

Q&A forum. Second, the Customization Consumer will be able to send in (through the site) his

or her specifications that will allow for the manufacturers to meet the expectations of each

customer.


       The Electric Expressions website allows its visitors to view its six signature guitars (see

section 3.3 for a detailed listing). In addition, website visitors will also find catalogs with

materials, finishing options, colors schemes, lettering options, and stringing options. The virtual

catalog is as easy as dragging and dropping a desired frame and typing text in the appropriate

boxes that can also be dragged and dropped. There is even a description box located below the
created guitar image in case there is a special customization request that is not offered in the

catalog. All of these options make it easy for a guitarist to express their individualism.

Companies that Electric Expressions has contracts with also have the option to order products

online at wholesale prices. When an order is made online, the customer receives confirmation by

e-mail within 24 hours communicating that the order has been processed. Some of the other

features of the virtual storefront include uploading images or graphics, music page links to the 6

artists’ guitars Electric Expressions replicates, contact information such as phone, email,

operation hours, ect… We believe that through these features our site will be able to support the

needs and desires that our target markets will have.




5.2 Hours of Operation and Strategy


       Electric Expressions webmasters, designers, and order processors are expected to be at

their posts Monday through Friday from opening at 8 a.m. until closing time 5 p.m. The

accountant will need to be in by 9 a.m. and stay until all the transactions of that day have been

processed. The production workers’ schedules are a little looser. Since we customize our

products to fit customers’ requests, it is normal for Electric Expressions to build 24 very different

guitars that all require different parts back-to-back. For this reason, we do not keep a large

inventory of components, which explains why there are a few days during the workweek when

the production team is waiting on FedEx to bring a shipment to our shipping department of parts

to complete a project. In such cases, only the production team lead is required to be in the

facility the entire workday. The other production team members are only required to work a

half-day or whatever reasonable time that is handed down by the production team lead in such
cases. We call this reasonable time a flextime system that reduces idle time tremendously. The

Flextime system also eliminates the overhead cost of wages, when possible, which means less

expense for the company when we are not generating as much income.


       The website is fully functional 24 hours a day, 7 days a week. This allows customers to

place orders, browse virtual catalogs, access frequently asked questions, and receive basic

customer service whenever it is convenient for them.




5.3 Employee Hiring and Training


       We prefer people who have transferable skills and experience. This is why Electric

Expressions targets and recruits highly creative individuals, people that have graphic design

experience or education, individuals with wood working experience, and people with Computer

Information Systems backgrounds. We hire and train them on the software Electric Expressions

uses to produce guitars as well as the techniques used to create our guitars. Some of this training

comes from producing our six Signature Series Guitars. We train our employees to incorporate

customer guitar customizations via OJT—on the job training. OJT includes elements such as

educating employees on material components, wood types, handling etiquette, tuning, job safety,

and production protocol. Electric Expressions teaches its employees everything they need to

know to produce an exotic guitar from employee conduct, to interpreting 3D design proofs, to

creating a finished masterpiece.
5.4 The Production


       The Electric Expressions Webmaster takes the online orders, separate them into two

categories (Replicas and Customs), and divides them among the Design Department. Replicas

refer to our six Signature Serious guitars while Customs include everything else. The Designers

receive the delegated orders for the processors in a digital drop box. This digital drop box allows

the designer to see the exact order that the customer created. The designer is able to view

selections the customer has made from the virtual catalogs including materials, finishing options,

colors schemes, lettering options, and stringing options the customer has selected. The designer

will also be able to view any text that has been typed by the customer via the description box that

provides a way for customers to note special customization requests that are not offered in the

catalog. In addition, the designer can view uploaded images and graphics.


       The designer takes all of this information and creates a one-dimensional color proof with

an order number to send the customer within 24 hours (or one working day) for approval. Once

the customer approves it, the Webmaster receives the approved proof and forwards it to the

assigned designer’s digital drop box. The designer then expands the one-dimensional proof into

a 3D virtual blue print guitar layout for the production team and forwards the guitar layout to

production.


       The Electric Expressions Production Team receives the 3D virtual blue print guitar layout

via digital drop box. The Production Technician responsible for ordering supplies, usually the

team lead, will open the new job via digital drop box and compare the materials needed with the

inventory listing. If additional materials are needed, the technician will place an order with the

appropriate suppliers. Some of these suppliers include Rockinger Guitars in Germany who
provides strings and high quality pickguards, Stewart MacDonald in Ohio who provides bridges

and tuners, and Exotic Woods Company Inc. in New Jersey who provides exotic woods and

materials.


       Once the materials list has been reconciled and needed materials have been ordered and

received, the production team begins the job. Electric Expressions does not keep an

overwhelming inventory of materials since it is standard operating procedure for Electric

Expressions to only order the materials necessary to complete a job that has been approved by

the customer. A courtesy status notification is sent to the customer when production begins.

Once the production team begins a job, the targeted turnaround production time is 7 to 14

business days. Courtesy status notifications are sent to the customer every 4 business days after

production begins.


       When the job is completed, the guitar is shipped via FedEx to the destination the

customer specified when placing the order. When the order has been shipped, the final courtesy

status notification is sent to the customer informing them that their Electric Expressions Guitar

has been shipped along with the expected time of arrival.




5.5 Facilities and Equipment


       Facilities: Electric Expressions has office, warehousing, and manufacturing facilities

located within the same building. Electric Expressions has negotiated a leasing contract that

locates these facilities on the Westside of Evansville, Indiana. The total space occupied is

approximately 4,000 square feet. The break down is expressed as follows: The office space

consists of roughly 800 square feet, the warehousing area makes up roughly 1,200 square feet,
and the manufacturing area makes up about 2,000 square feet. The building is a former retail

store occupied by Wal-Mart before the company’s transition to its new Superstore location on

Evansville’s Westside. Electric Expressions only needed to make minimal modifications to be

functional.


       Electric Expressions provides guided tours to some areas of our production facility to

customers who are interested by appointment only. The tour shows how guitars are created once

the order is placed in the hands of the designers. This consists of showing the different

machines, materials, and methods used to produce a guitar. A diagram of the Electric

Expressions facility provided below.




Facility Layout
       Equipment: Electric Expressions has acquired all the equipment needed to manufacture

guitars including the following: drill press, sander, exhaust system, tools, lathe, scroll saws,

drills, wood glue guns, waxing machines, finishing machines, etc. Electric Expressions needs to

invest in an upgraded computer system with cutting edge graphics and 3D generation capabilities

along with upgraded printers also need to be built into the budget. Additionally, these resources

are planned to be in running the online business along with payroll and inventory management.

Industrial Contractors is the perspective supplier that Electric Expressions is ordering these items

from because of their reputation for having a knowledgeable IT staff and their capacity to set up

the computer networks to meet our needs.




5.6 Strategic Alliances/Supplier


       Electric Expression’s main strategic alliances come from the companies we sell our

guitars to. The relationship that Electric Expressions benefits the most from is its relationship

with the Guitar Center, who has locations in over 40 states across the US. In addition, Electric

Expressions aligns with smaller, local businesses. These companies include Moore Music and

Opus 1 Music. These alliances with smaller local businesses remain very important because they

locate Electric Expressions near its consumers in the local area. Additionally, the relationship

with these two organizations shows Electric Expression’s commitment to being connected to the

community.


       Electric Expressions fulfills its need with suppliers that provide all the materials needed

to create a guitar very strategically. Electric Expressions uses variations of the following list of

materials that are provided by suppliers: exotic woods, strings, bridges, pick guards, and tuners
associated with building each guitar. Electric Expressions has formed receiving relationships

with Rockinger Guitars in Germany in the form of strings and high quality pickguards in many

different styles. Stewart MacDonald in Ohio will be providing Electric Expressions with the

bridges and tuners. Last but definitely not least, Exotic Woods Company Inc. located in New

Jersey will be providing Electric Expressions with any of the exotic woods chosen to construct a

guitar. Combining these connections with quality will help Electric Expressions be known for a

selection of replica guitars that are hard to find anywhere else, help Electric Expressions be

known for its use of fine woods and unmatched quality, and to help keep the cost of imported

exotic woods lower than our competitors through suppler relations.
                                             Harvesting


6.1 Overall Harvest Plan


       Electric Expressions owners plan on selling the business by the end of year six. During

the first five years, the owners will grow the business into a profitable, cash generating business.

Once the annual report has been completed after year five, the owners of Electric Expressions

will know the value and potential growth of the business and how much to sell the business for.

The sale of Electric Expressions will be open to any financial buyers interested, including

employees. However, the owners will look to sell the business to a party that will keep the

business in the United States. The profit generated from the sale of Electric Expressions will be

divided evenly between the owners.




6.2 Harvest Plan-Selling the Firm


       Electric Expressions is using the sales to financial buyers as the method of choice for

harvesting the business. Since financial buyers look to the firm’s stand-alone, cash-generating

potential as it source of value, Electric Expressions will be able to be sold at a price that will

allow for the owners to be compensated adequately for their part in the business.


       We feel that through the success of the first five years in business, we will be able to

show how profitable the business can be in the future for the buyer. The exact price that Electric

Expressions will be sold for will not be known until it has been in operation for five years then

Electric Expressions will accurately forecast year six and the following years of growth. After

the first five years, we will be able to go back and look at the annual reports to determine the
future revenue and growth that can be expected. Once that has been taken into consideration, we

will price the business appropriately to be sold to a financial buyer(s).




6.3 Execution of Harvest Plan



          Electric Expressions will begin the process of selling the company to financial buyers at

the beginning of year six of the business. The current owners will conduct research on the track

records and financials of various musically oriented companies. Electric Expressions wants to

keep the business domestic, so we will look for any company operating within the United States

beginning with our supplier relationships and product carrier lists. Once Electric Expressions

has compiled a list of potential buyers, the current owners will call these companies and

communicate our intentions of selling the venture at the end of the year. When a potential buyer

is interested, Electric Expressions will schedule a time convenient to them to showcase a

presentation of our company at their office. Afterwards, the selling price will be discussed. The

asking price will be decided upon once Electric Expressions completes the annual report of the

prior year to accurately evaluate the current value and potential grow of the business, which

means these meetings will not take place until after the current owners have a copy of the annual

report.


          Electric Expressions is not particular to any type of buyout but would like to find a

company who will maintain a similar atmosphere for the employees to keep the trust and moral

high because we like to create a family-like atmosphere where all employees can feel safe and

secure. In relation, employees will be notified of the potential buyout once a serious buyer(s) are

found for courtesy purposes assuring them their jobs are a priority in the transaction. A meeting
will be held to announce the plan and allow for any concerns. Once the buyer(s) are found, they

will be permitted time to see how Electric Expressions is operated to allow for a smooth

transaction. The process will be completed by the end of year six.
                               Appendix I


Promotional Brochure Outside
Promotional Brochure Inside
                                     Appendix II


Signature Guitar Replica Advertisement

				
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