Quote:
They are indeed a 17 people company, but one company that was founded about 50 years ago, they are not kids, and for sure they know what they are doing about marketing, or they won't survive, they are in bussiness far before those "talented guys", you want they to hire, were in kinder, and they had survived for many years in NY, not in HK, or China, or any other place which labor is cheaper, and even with an expensive labor, they are still there, so please do not underestimate their marketing practices. IMO they base their practices in an old fashion family way, but it had worked for them for 50 years.... |
the marketing somewhat non-existent...... you really only find grados in audio specialty stores.... i can't think of any major chains that carry them where i live.....
there is one store in raleigh that carries them to the best of my knowledge, Audio Advice..... but that is a true hi-fi store (linn, musical fidelity etc)
Definition:
Marketing - delivering customer satisfaction at a profit.
yes they are making a profit, but they could be making a lot more with better marketing.....
4p's of marketing:
Product, Placement, Promotion, Price
They have a great product, but it lacks on some key issues such as comfort and build quality for some of the lower end models.
The placement is limited.... unless you go out looking for grados you probably won't find grados.... it lacks proximity to the customer.... as far as placement in the market... they are very very welled placed in a niche market.
Promotion - also very very limited.... they could do a lot more for promotion...... trunk shows are a good way to promote without losing that personable feeling of a small family owned company....
Price - for the sound you are getting grado's price is unmatched... as someone said the SR225 for sound is an absolute steal..... as far as comfort for price they are hurting...... and as far as build quality for price it's a toss up--- awesome for their high end phones and in the middle for the lower end phones
With the increasing upward mobility of US consumers it behooves Grado to market to luxury consumers, and comfort and build quality are key...... for the first time ever the middle range price points are disappearing (e.g. mid-range dept stores going bankrupt).... most markets only have room left to be profitable at the budget and the luxury price points..... moderate price points are become more and more inexistent in many many markets.....
the number of individuals, couples and families grossing more than $100k a year has never been higher
The hi-fi market really has never been in a better position to attract people with no prior hi-fi experience...
Most people don't get better audio because they've never experienced better audio
you want a great example of premium audio marketing... look at Bose..... Bose isn't great but they are marketing geniuses... grado could go the same route and make $texas, bank, chedda etc
they could do so and keep the same quality and improve..... the only risk they have is getting so overwhelmed that they can't keep up with production (their current production doesn't allow for a lot of growth.
yes they have been in business over 50 years, but they've hit hard times.... they did well in the 80s and hit a slump hard in the early 90s
as far as quality... defects such as stitch problems, leaking glue and other such things should never leave their small factory for headphones in the 150+ range
also regarding the hot shots... i am not talking about audio hotshots, i'm talking about business strategy hot shots, new product development hot shots, quality control hotshots
Since the Japanese automobile first introduced a true quality controll system and applied it later to eletronics you can see the importance of quality..... with methodology such as six sigma you have the tools, techniques and statistical power to mass produce products with a theoretical and realizable goal of JUST OVER 4 DEFECTIVE PRODUCTS PER MILLION...... that is mass production.... if that is possible with mass production it definitely should be possible at a small one building operation........
As far as Quality Function Deployment..... the fact that they don't listen and react to customer complaints about issues that cost them sales shows that they haven't a clue what QFD even is... if they did then these issues would be resolved in many cases before there are even complaints
the business strategies are out there... they aren't being used, most likely because the arent aware of them.....
just look at the top management .... Joe Grado - master watchmater, master headphones maker, master cartrige maker... but he does not have a mastery in better business practices...... (i think he dropped from high school and went to vocational school if i am correct)
same goes for John Grado who has more formal education and probably knows more about business than Joe, but still no real mastery of better business practices......
i would recommend they get someone who knows their stuff ... "always surround yourself with good people." ... john and joe know their audio stuff but they should get someone who knows the business stuff.....the best leaders know when they need to get outside help instead of succumbing to pride.....
they could also go learn these things themselves..... it's not uber-complicated stuff......
i would recommend they read "Design and Marketing of New Products" Glen Urban & John Hauser
the "Art of War" by Sun Tsu isn't a bad read either..... as i rise through the corporate ranks i'm going to require that all my subordinates have read it
just because it has worked for them for 50 years doesn't mean it is the best way or that it will continue to work...... that's a fallacious conclusion
they should adopt a strategy of continuous improvement. - 'adaption'/'evolution'