Value Propositions

Value proposition is the benefits upon which the brand is differentiated and positioned. It answers the questions "Why should people buy your brand?" (see page 190)

In order to come up with effective value proposition, Gibson has targeted specific marketing segments, mostly based on income segmentation, which is dividing a market into different income groups (see page 170). User status such as beginner and intermediate guitar players can be used to segment their target markets as well.

Gibson guitars are positioned as having superior quality, excellent performance and style, and prestigious. They offer "More-for-more" positioning which involves providing the most upscale product or service and charging a higher price to cover the higher cost. Gibson wants to make its products "the dream product" guitar players want. There are two different Gibson products: Gibson USA and Gibson Custom, where the Custom division offers more expensive customization and replicas of famous guitarists' guitars. These products are targeted towards high-income earners and guitar players who have intermediate skills.

However, Gibson has anticipated the risk of imitators who claim the same quality but at a lower price. The company created a new production line called Epiphone. The company offers "the less for less" value proposition for Epiphone. This value proposition is design to compare the products within the company itself. This is not a proposition in order to beat competitors. Epiphone products have good quality, similar style and good performance. The price difference varies greatly with Gibson products, but these products offer beginner guitar players or middle-income earners the chance to use good quality products with similar style as Gibson.

Gibson and Epiphone are good examples how a company tries to offer different value propositions to different target markets.

One of the very expensive Gibson Custom guitars:

$15,294 MSRP

"Billy Gibbons’ legendary Pearly Gates – a rare 1959 Gibson Les Paul Standard – is like no other guitar in the world, and now you can own a painstaking replica of this sacred instrument. Admit it; this is the artist model you’ve been waiting for. Now it’s here, so don’t wait any longer. There are three different models for you to choose from – all in very limited quantities."

Here are some pictures of Gibson USA and Epiphone guitars:

$3509 MSRP

"Gibson USA's 2008 Les Paul Standard—an elegant revision of a true classic, with upgrades and new features that make it the best Les Paul Standard ever produced. Based on consumer feedback and a drive to uphold and enhance the legacy of the Les Paul Standard, Gibson USA’s 2008 model sets a new guitar benchmark for excellence and achievement. Play the new 2008 Les Paul Standard from Gibson USA and experience the evolution of the greatest electric guitar of all time."

Check out the link for more features and stylish finishes compared to Epiphone:

$3899 MSRP


http://www2.gibson.com/Products/Electric-Guitars/Les-Paul/Gibson-USA/2008-Les-Paul-Standard/Features.aspx

Epiphone

$832 MSRP

"Now, the classic look of the 'plain' maple top is available to go with the classic Les Paul Sound. This understated look is preferred by many Les Paul fanatics. It still has everything you need in a Les Paul: the Solid Mahogany body, Maple top, Alnico V Humbucker pickups and the Tune-o-matic bridge/Stopbar tailpiece combo for monstrous sustain."

Here is the newest Gibson USA product, the next generation robot guitar that can tune by itself:

$4128 MSRP






Check out more about Gibson: www.gibson.com

Hendy Kurniawan, Section E