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  1. 1. The Kim Guitar Company (KGC) in Seoul, South Korea, makes electric guitars for Japanese manufacturers and distributors in Europe and the US. A major USdistributor, Ashbury Guitars, hascontacted KGC about marketinga range of guitars under its ownbrand name for the Californianmarket
  2. 2. It is now early January. KGC has agreed to manufacture the guitars for Ashbury, even though it is a very busy time of the year for them. The two companies have had some initial correspondence by e-mail and now a face-to-face meeting is required. Several points of the contract need to be negotiated. KGC’Sowner, David Kim, has flown to San Francisco to meetRichard Grant
  3. 3. 2. Information file: KGC Model SG 200SG 1000 SG 500
  4. 4. Quality• To reduce costs of production, we want 40% of the order to be manufactured other Korean firms.
  5. 5. Quantity • we want Ashbury Guitars to place a first other of at least 2,000 guitars. We need a large order to cover the costs of setting up the production lines.List price Estimated of Prices quoted to(US$) production AshburySG 1000 510 920SG 340 340 550SG 290 290 475
  6. 6. PaymentDelivery 30 June. If an earlier delivery is required, production costs will increase by 10% because of overtime payments to workers. Before 30 June, the factory will be fulfilling orders for other customers
  7. 7. My company policy is to offer new customers 3%off list price for a first order, and 5% for second andfurther orders.
  8. 8.  We have a number of strategies to prepare to meet Mr. Richard Grant talk to convince bring electric guitars product to California market.
  9. 9.  The Kim guitar company, established in 1997, is a specialized manufacture in electric guitars and classic guitars and acoustic guitars and musical instrument parts and accessories.
  10. 10.  Ashbury musical instrument is a company dedicated to the design and manufacturing of high quality musical instruments and accessories at affordable.
  11. 11. First of all, we would like to briefly introduce the electric guitar.An electric guitar is a guitar that uses the principle of directelectromagnetic induction to convert vibrations of its metalstrings into electric audio signals. Invented in 1931, the electricguitar became a necessity as jazz musicians sought to amplifytheir sound. Since then, the electric guitar has become the mostimportant instrument in popular music. It has evolved into astringed musical instrument that is capable of a multitude ofsounds and styles. It served as a major component in thedevelopment of rock and roll and countless other genres of music.
  12. 12. Specification of SG1000-Body : Arched Maple top mahoganyback-Neck : Mahogany (set-in Neck)-Fingerboard : Ebony 22F (350R)-Bridge : SGB-IIIG-Pickup : "SGH-1SOB" (Alnico V) x2-Control : Front volume, Front tone(Bi-Sound SW), Rear volume, Reartone(by Sound SW),3P selector SW-Scale (mm) : 628-Hardware : Gold-Finish : BS(Brown Sunburst), RS(Red Sunburst) , BL(Black)- High quality Hard Caseinclude(SGFC)
  13. 13. Specification of SG500:• Later 1970s model. 2 x HB .. pretty"stock" set up. Maple topped, decorativeheadstock + fret markers. Mine is red. Setneck, MIJ. With original case. "Les Paul"type set-up. Nothing fancy: 2 x PU, 4 xcontrols. Pretty sure it is maple cap (notsure of base timber) and ebony board.
  14. 14. Specification of SG200:• SG-200 offers a superior combination of electrical and mechanical properties - properties such as dielectric strength, flame resistance, arc and track resistance, high and impact strength. These fiberglass- reinforced polyester thermoset sheets will not melt under heat and have excellent overall electrical properties.• SG-200 electrical insulating laminates have inherently good dielectrics. SG-200 has been engineered to maximize the specific properties required for a electric guitar.
  15. 15. Guitar probably appeared first in Egypt and Babylon from 1000 BC.• California has 478 cities, which are mostly inlarge urban areas.
  16. 16. -As of 2000, the number of California from 5 years of age in English and Spanish at respectively 60.5% and 25.8% -The industrys largest states, including agriculture, aerospace, entertainmen t, light industry, and tourism -Southern California, one of the most eastern university in the world, there are many good songs that the choir competition in the large conference.
  17. 17. So electric guitar is a strongdemand on this market ofCalifornian, upcoming have musicfestival, with quantity 2,000 guitarswill not have any problem to sell thestock during the music festival
  18. 18. -To reduce costs of production, we want 40% of the order tobe manufactured by other Korean firms.-About transportation costs, we will be all prices includetransport costs to Pusan, Korea.- delivery before 8th June
  19. 19. • About price for the SG1000, we couldn’t reduce price forproduct SG1000• offer an additional 5% discount on all purchases of theSG1000, and 7% for second and further orders. An agreementis to be ironed out on the optimal... hope Ashbury guitar willsatisfied with our method.• About guarantee, we usually offer a guarantee of 5 years.