Bg group 2 latest 12 09_2013

Andy AshmoreAlisa Cook

Maricris MontonBrittany NealAngela Studt

Globalization Strategy of Bluegrass Music

Bluegrass Consumer at a GlanceAccording to 2008 Simmons Research data:

• 63% are 45 or older• 39% earn $75,000 or more annually• 59% are married• Top 2 occupation industries are Manufacturing and Health Care/Social

Services• Attitudes toward life:

• 70% say how they spend time is more important than money• 65% agree it is worth paying extra for quality goods• 71% believe we should strive for equality of all• 85% agree that it is important to be well informed

• Hobbies:• Listening to music (80%)• Reading Books (64%)• Musical instrument (17% of BG consumers compared to 9.46% of total

population)

Definition of Bluegrass

Roots of Music

• If football symbolizes the all-American sport then in music, nothing can boast of a greater American heritage than bluegrass music.

• From its earliest roots in the rural areas during the 1940 s ′to the eclectic range it boasts of today, bluegrass music is ultimately about self-expression, which is constantly displayed by its trademark instrumental solos.

• Along with country music, gospel, old time music, jug bands, Appalachian folk, blues, Cajun and Native American Music, bluegrass is one of the sub genres of the roots of music.

Origin.. How is it American?

• Either because the music is a native to the United States or because the music was developed here out of foreign origins to some degree that it has impressed the musicologist because of its uniqueness and newness.

Roots of Bluegrass

• In the case of Bluegrass, it has mixed roots in Irish, Scottish, Welsh, and English traditional music, and also later influenced by the music of African-Americans through incorporation of jazz elements.

• It is considered "roots music" because it served as the basis of music later developed in the United States, including rock and roll, rhythm and blues, and jazz.

• Immigrants from UK and Ireland arrived in Appalachia in the 18th century, and brought with them the musical traditions of their homelands.

• These traditions consisted primarily of English and Scottish ballads, which were essentially unaccompanied narrative and dance music, such as Irish reels, which were accompanied by a fiddle.

Lyrics

• Narrative and based on everyday lives;• Laments about loves lost, unwanted changes

like visible effects of mountaintop coal mining• Hard life in the Appalachia;• Railroading as a popular theme such as

“Wreck of the Old 97” and “Nine Pound Hammer”

Lyrics – A Fallen Star by Bill Monroe

• A star fell from heaven right into my armsA brighter star I know I've never seenThen I found out that it was only you with all your charmsWho came into my life to fill a dream

• A fallen star is what you are The twinkle in your eyes came from the sky you must have strayed from the milky way A fallen star that's what you are

• The heavens must be lonely now that you are mineI'm sure they'll miss a star as bright as youBut the stars will send there blessing and brighter they will shineWhen they see the dream that's comin' true

Lyrics - A Hundred Years From Now – By Flatt and Scruggs

• Well a hundred years from now I won't be crying A hundred years from now I won't be blue And my heart will have forgotten that she broke every vow I won't care a hundred years from now

• Oh, it seems like only yesterday you told meYou couldn't live without my love somehowNow that you're with another it breaks my heart somehowI won't care a hundred years from now

• Now do you recall the night sweetheart you promisedAnother's kiss you never would allowThat's all in the past dear it didn't seem to lastI won't care a hundred years from now

Lyrics – A voice from On High by Bill Monroe

• I hear a voice callin' it must be our Lord It's comin' from heaven on high I hear a voice callin' I'll gain the reward In the land where we shall never shall die

• The Savior has paid a great price for meHe gave His life on CalvarySo I'll follow his footsteps up the narrow wayAnd be ready to meet Him when He calls on that day

• He died on the crossthe old rugged crossThat we would be saved from sin and not lostSo I'll follow His footsteps up the narrow wayAnd we'll pay that debt on the great judgement day

Instruments

• Bluegrass is traditionally played on acoustic stringed instruments. – The fiddle, five-string

banjo, guitar, mandolin, and upright bass (string bass).

Instruments - Innovation

• Resonator guitar, also referred to as a Dobro and of which was just an addition to its original band instruments

• Harmonica which was used occasionally

Differentiation

• Earl Scruggs – “Three-Finger Style”

– A finger-picking method which is the most common style of playing banjo. The result is lively, rapid music, which lends itself both as an accompaniment to other instruments and as a solo.

Differentiation

• Lester Flatt – two-pick guitar styleFlatt played bass runs and melodies with his thumb pick on the low strings while using the pick on his index finger on the high strings to add rhythm fills.

Technology

• The invention of the phonograph and the onset of the radio in the early 1900s brought this old-time music out of the rural Southern mountains to people all over the United States.

Evolution of Technology

History of Music Technology

– 15 Jun 1877 - The First Microphone..

– 12 Dec 1877 - The First Phonograph Edison invents the cylinder "phonograph" used to record and playback sound.

– 27 Sept 1887 First Flat Record Player

History of Music Technology

• 23 Nov 1889, the First Jukebox, Louis Glass invents the modern jukebox (coin-operated phonograph)

• 20 Jun 1900, Flat Disks, Eldredge Johnson perfects first system of mass duplication of pre-recorded flat disks.

• Feb 12, 1908, Double Sided Phonograph Records

History of Music Technology

• Mar 27, 1909, Wireless Voice, experimental "wireless" voice and music broadcasts from San Jose, California using experimental radio station

• May 19, 1912, First Radio Station, The Herrold Station.

• Oct 27, 1913 - First Disk Player• May 3, 1920, AM Radio, Commercial AM Radio

broadcasting begins on KDKA, Philadelphia.

History of Music Technology

• Dec 29, 1924, Home Viewing Movies• Jul 12, 1924, Electronic Records Electrical records replace acoustic discs, via a process developed by Western Electric.

• Aug. 26, 1926, Synchronizing• Frequency-modulated (FM) radio, once believed

to be an impossibility, becomes reality in 1933• 1964 – the cassette tape becomes mainstream

History of Music Technology

• Philips and Sony announce plans to work together to come up with a uniform standard for a Compact Disc (CD) in 1978.

• In 1987, the Digital Audio Tape (DAT), introduced shortly after the CD

• 1990, the birth of MP3• 1995, streaming audio service on the internet• 1997, early attempts to sell records on the

internet

Folk Music group

• Between 1927 and 1956, the Carter family who was a traditional American folk music group started recording their music and it had a profound impact on bluegrass, country, southern gospel, pop and rock musicians. The family group started the beginning of the divergence of country music from traditional folk music.

Band Formation

• Charlie and Bill Monroe, brothers, were one of the most popular duet teams of the 1920’s and into the 1930’s. Charlie played the guitar while Bill played the mandolin. They sang duets in harmony. The brothers split up as a team in 1938 to form their own bands.

Bill Monroe and the Bluegrass Boys

• Bill named his band “Bill Monroe and the Blue Grass Boys” since Bill was a native of Kentucky, which is the Bluegrass State.

Earl Scruggs

• In 1945, shortly after Earl Scruggs joined the band, he introduced the innovative three-finger picking style on the banjo that energized enthusiastic audiences and then was called “Scruggs style” banjo.

Lester Flatt

• Then came, Lester Flatt from Sparta, Tennesee on guitar and lead vocals against Monroe’s tenor; Chubby Wise from Florida on fiddle and Howard Watts aka “Cedric Rainwater” on acoustic bass.

The Foggy Mountain Boys

• Earl Scruggs first left Monroe’s band, then Lester Flatt and eventually formed their own band called “The Foggy Mountain Boys”.

• They decided to incorporate the resophonic guitar or Dobro into their band format.

The Foggy Mountain Boys

• From 1949-1969, Flatt and Scruggs were a major force in introducing Bluegrass music to America through national television, major universities and coliseums, and even school house appearance in many towns. The soundtrack for the film “Bonnie and Clyde” was composed and recorded by Scruggs.

Earl Scruggs Revue

• In 1969, Scruggs together with his sons Randy on guitar and Gary on bass called themselves “The Earl Scruggs Revue”.

The Nashville Grass

• Lester Flatt also continued successfully with his own group, “The Nashville Grass”, until his death in 1979.

When it was referred to as Bluegrass

• It was exactly in the late 1950’s when people started referring it as Bluegrass.

• This music was initially called mountain hillbilly music;

• Bluegrass was derived from the “Blugrass boys” band with Bill Monroe’s leadership who also was considered the “father of Bluegrass music”.

Promoting Bluegrass Music

• The availability of traditional music broadcasting and recording, nationwide bluegrass festivals, and movie, television, and commercial soundtracks featuring bluegrass music have helped to bring the music out of obscurity.

Promoting Bluegrass Music

• Bluegrass music has attracted a diverse following worldwide. Bluegrass pioneer Bill Monroe characterized the genre as: "Scottish bagpipes and ole-time fiddlin'. It's Methodist and Holiness and Baptist. It's blues and jazz, and it has a high lonesome sound.“

Bluegrass Festivals

• In the 1960s, the concept of the "bluegrass festival" was first introduced, featuring bands that had seemed to be in competition with each other for a relatively limited audience, on the same bill at weekend festivals across the country.

• Carlton Haney, from Reidsville, N.C., is credited with envisioning and producing the first weekend-long bluegrass music festival, held at Fincastle, Va. in 1965.

Some of Bluegrass Festivals Today..

• February 21, 2014, 2nd Annual BMAI Ramada Tropics Bluegrass Festival in 5000 Merle Hay Road Des Moines, IA 50322

• December 12, 2013, Christmas In The Smokies Bluegrass Festival in 4010 Parkway Pigeon Forge, TN

• Jan. 2, 2014, New Year’s Bluegrass Festival in Jekyll Island Convention Center, 75 N Beachview Drive, Jekyll Island, GA 31527

Some of Bluegrass Festivals Today…

• March 22, 2014, RenoFest in 212 N. Fifth Street, Hartsville, SC 29550

• February 14, 2014, Bluegrass First Class in 1 Resort Drive Asheville, NC 28801

Bluegrass at Its Best

• Lester Flatt, Earl Scruggs, and the Foggy Mountain Boys achieved national prominence with tour sponsorship by Martha White Flour and for playing the soundtrack for the previously mentioned film Bonnie and Clyde as well as through the Beverly Hillbillies television show. The Deliverance movie soundtrack also featured bluegrass music, specifically "Dueling Banjos," performed by Eric Weissberg on banjo and Steve Mandel on guitar.

Bluegrass at Its Best

• The Nitty Gritty Dirt Band's Will the Circle Be Unbroken triple LP set, released in 1972, introduced artists like Earl Scruggs, Doc Watson, Jimmy Martin, Maybelle Carter, Roy Acuff, and others to pop music fans and brought the authentic sounds of bluegrass and traditional country music to new audiences.

• In 2001, the triple-platinum soundtrack for the Coen Brothers movie, O Brother, Where Art Thou?, helped to attract even wider audiences to bluegrass music.

Gone International

• The International Bluegrass Music Association, or IBMA, is a trade association to promote bluegrass music.

• Formed in 1985, IBMA established its first headquarters in Owensboro, Kentucky. In 1988 they announced plans to create the International Bluegrass Music Museum as a joint venture with RiverPark Center in Owensboro.

IBMA

• In 1990 IBMA established the World of Bluegrass, a combination trade show, concert, and awards presentation. This was originally set in Owensboro, before moving to Louisville, Kentucky in 1997. Nashville, Tennessee hosted this event from 2005 through 2012. 2013 will be the first year of three years that the event will be hosted in Raleigh, North Carolina.

• In 1991 IBMA established the International Bluegrass Music Hall of Honor at the International Bluegrass Music Museum to recognize lifetime contributions to bluegrass, both by performers and non-performers. In 2003 IBMA relocated its offices to Nashville, Tennessee.

IBMA

• The International Bluegrass Music Association awards are the genre's equivalent of the Grammys. Winners are chosen by the 2,500 members of the International Bluegrass Music Association.

IBMA

• Bluegrass music is now performed and enjoyed around the world. The IBMA alone claims members in all 50 states and 30 countries. In addition to the classic style born in 1945 that is still performed widely, bluegrass bands today reflect influences from a variety of sources including jazz, contemporary country music, Celtic music, rock & roll ("newgrass" or progressive bluegrass), old--time music and Southern gospel music--in addition to lyrics translated to various languages.

What is Bluegrass to some?

Bluegrass is a very inclusive music, with friendly and informal jam sessions springing up around almost every event. It's a great way to learn to play an instrument and sing, for kids and adults alike. Almost all bluegrass events have a family atmosphere, and performers and listeners are equally welcome.

by Elisabeth Burkett

What is Bluegrass to some?

• Bluegrass Music is a shivering, blustery Friday night on the Ohio, at a town called Owensboro waiting to hear more... As they begin, the cold and wind vanish, and all you hear, all you feel, is the music - true and sweet. It is the campfire where we gather, listening and playing. Ordinary people go from camp to camp, carrying their instruments, bringing their music, sharing their friendship.

• This is Bluegrass Music, this and more. It is almost a way of life, a respite from everyday rushing and hurrying. A chance to get back to yourself, a chance to meet old friends and make new ones. A chance to celebrate life. A chance to thank God.

By Michael L. McDonald

Competitive Position

Focused Differentiation• Major benefit to Bluegrass fans = social aspect

• In a video sent to us by John Revell of BBMA, many of those interviewed discuss how Bluegrass is a “social music”. This means instead of just going to concerts and listening to performers play, fans are actually taking part in the music by playing an instrument themselves.

• This level of involvement with the music creates loyal fans and may give Bluegrass music a competitive position.

• http://www.youtube.com/watch?v=uHs4EFRdLsc 10:24

Focused Differentiation• Fewer fans than other music genres, but they

like to be involved• Bluegrass is more about the experience than

just the music• Bluegrass music has a large group of loyal fans.

This makes it easier to charge higher prices for performances because loyal customers are more willing to pay the price rather than turning to an alternative form of entertainment.

Blue Ocean Strategy

From then to Now

• Early Jamestown– “As the early Jamestown settlers began to spread out into the

Carolinas, Tennessee, Kentucky and the Virginias, they composed new songs about day-to-day life experiences in the new land. Since most of these people lived in rural areas, the songs reflected life on the farm or in the hills and this type of music was called "mountain music" or "country music

• Present Day– Presently, bluegrass music is still enjoyed in a community setting.

• Resolution– Marketing bluegrass music as a musical will allow for its

uniqueness because it is a performance based genre and it will cost less resulting in a blue ocean strategy.

Differentiation

According to the International Bluegrass Music Association, “A top priority for many bluegrass organizations is presenting live bluegrass music in venues ranging from the local pizza restaurant, community centers, schools and churches, to festival sites capable of accommodating thousands”

• No other mainstream genre is pursuing this. – Only a few genres have attempted to a musical, however

that is not their main source of promotion and these attempts were only one time occasions.

• Exploiting the Value– This strategy will Exploit Bluegrass music’s value while

capturing a new market. Promoting bluegrass music on a continual basis through musicals will allow for the live performance atmosphere that the music thrives in. This strategy will capture the market of theater goers as well as bluegrass lovers.

Three Tier of Noncustomers

Four Actions Framework

Eliminate

• “Which factors that the industry has long competed on should be eliminated?”

• Abolish Red Ocean Strategy – The bluegrass music industry currently gains it’s

exposure through performances at bars, festivals, and concerts. The bluegrass music industry is attempting to beat the competition in this existing market.

Create

• “Which factors should be created that the industry has never offered?”

• Enjoyment is Magnified– The bluegrass music industry should focus their attention on musical

theatre. In this way the value in bluegrass music, in that it is a performance based enjoyment is magnified.

• Apply the strategy throughout the industry– There have been small sporadic musicals that have been introduced in the

past however nothing substantial. In order for the industry to benefit from this strategy it must apply the strategy throughout the industry in order to capture a larger audience and for the musicals to become a valuable part of musical theatre.

• New Market – This strategy will allow bluegrass music to create a completely new market.

Raise

• “Which factors should be raised well above the industry standards?”

• Exposure– Continual touring and word of mouth marketing will enhance

exposure• Image

– As a result of music becoming more digital, audiences are becoming skeptical of the authenticity of the talent in the music industry. The live performances will dismiss any question of their talent.

• Iconic – These performances will market the artists as a character. This will

allow for the fans to become emotionally attached to the artists, believing they are getting to know them through the performance.

Reduce

Average Concert Tour CostsAverage number of tour dates 12

Venue $20,000/night total: $240,000

Promoter 3%- 10% of ticket sales

Management 10%- 15% of ticket sales

Road Crew (10 members making $35,000 for a band of 5 people)

$350,000/ year

House Lights and Sound Yorkville Sound LS801P - Active Subwoofer - 1500w, 18" $1,440.00; LP-304 Lighting Dimmer Bar $600.00

Hotels Varies

Transportation Varies (Tour Bus- gas amount)

Reduce

Average Musical Tour CostsAverage number of tour dates 18

Venue $4,000/night total: $72,000

Artist Director $49,000

Stage Crew (paid $636/week with 10 members)

$330,720

Stage Management $29,142

Hotel Varies

Transportation Varies (Tour Bus- gas amount)

Riverdance vs. Bluegrass Analysis

Elements that made Riverdance a success

Opportunities for Bluegrass Music

Continually performed tours on large stages therefore receiving publicity

Bluegrass musicals will be shared on theatre stages

Starred a couple key dancers until retirement (Jean Butler and Michael Flatley)

Bluegrass music will be able to feature their key performers (Alison Krauss and Mountain Heart)

Audio recording of Riverdancing become #1 on the Irish singles chart on May 5th 1994 and stayed there for 18 weeks

Audio and video recordings of musicals will solidify popularity because of its ability to be shared with others

After successfully penetrating the European market, they went overseas to New York City to Radio City Music Hall and performed in March 1996

After penetrating the American market Bluegrass music musicals can move overseas

As Irish dancing was repositioned in the market during this time along with that the name was changed to Riverdancing

Bluegrass music would benefit from a change in its name as a result of its new position in the market.

What’s the Problem?

• Lack of awareness • Negative stereotypes• Appeal is very limited demographically – by

age, gender, race, religion• Lack of engagement through social media.

Although Bluegrass lovers cherish new founded relationships with other fans, they fail to engage with the overall community as well as other genres such as Country and Pop do.

Playing to Win

Five Questions:

1. What is your winning aspiration - what do you wish to achieve?2. Where do you want to play?3. How will you win?4. What are the necessary internal capabilities in order to win?5. What management systems are necessary to succeed based on previous 4 questions?

Bluegrass PEST Analysis

Political• Core threats internationally:

– Piracy– Censorship

• Opportunities internationally:– Countries allied with the U.S.– Countries where U.S. troops have been heavily

stationed

PoliticalOpportunit

ies

NATO• Belgium• Canada• Czech

Rep• Poland

United Nations• Brazil• China• Italy• Kuwait

Stationed US

Troops• Iraq

• Germany• Japan• U.K.

EconomicThreat Opportunity

Age of Population Younger Older

English-Speaking - Yes

Location of Population

Urban Rural

Nature of Key Industries

Industrial Agricultural

Social

Opportunities

Christianity

Papua New

Guinea

Portugal

Philippines

Socially Musical

Countries

Romania Turkey Maced

onia

Threats

Islam

Morocco

Somalia Jordan

TechnologicalOpportunities Threats

Internet Electric Instruments

• Allows for Bluegrass to be spread globally

• Quick and potentially inexpensive

• Can have widespread appeal• Provide a contrasting sound to

that of Bluegrass• Potentially competition

Music Industry AnalysisAn analysis of Porter’s 5 Forces

Music Industry: GeneralForces Level

Bargaining Power of Suppliers Low

Bargaining Power of Buyers Very High

Intensity of Rivalry High

Threat of New Entrants Very High

Threat of Substitutes Very High

This industry could be considered highly developed.

Music Instrument IndustryForces Level

Bargaining Power of Suppliers High

Bargaining Power of Buyers Moderate

Intensity of Rivalry Moderate

Threat of New Entrants Moderate

Threat of Substitutes High

This industry could be considered very developed.

Recorded Music IndustryForces Level

Bargaining Power of Suppliers Low

Bargaining Power of Buyers High

Intensity of Rivalry Very High

Threat of New Entrants High

Threat of Substitutes Very High

This industry could be considered highly developed.

Live Music IndustryForces Level

Bargaining Power of Suppliers Moderate

Bargaining Power of Buyers Low

Intensity of Rivalry High

Threat of New Entrants High

Threat of Substitutes Very High

This industry could be considered highly developed.

Bluegrass Music IndustryForces Level

Bargaining Power of Suppliers Very Low

Bargaining Power of Buyers Low

Intensity of Rivalry Low

Threat of New Entrants Low

Threat of Substitutes Very High

This industry could be considered poorly developed, but has great potential for growth.

Bluegrass Internal Analysis

Core Competencies• Not easily imitated• Can be reused widely• Contributes to the end consumer’s perception of value

• Some of Bluegrass Core Competencies– Giving more than music

• Giving community– Fans play the music, they don’t just listen– Fans don’t worry about the newest trends

• High appreciation for classics in the genre– Utilizing instruments not commonly found in modern popular music

• Banjo, mandolin, fiddle, harmonica– Improvising

• Providing a sense of freedom in the music

Benchmarking• Challengers

– Ahead of the change curve or on the leading edge– Pop music, country music

• Laggards – Behind the change curve– Bluegrass

• Solution? – Reinvent the existing competitive space– Create a new space

Global Recorded Music Retail Sales by Genre

2009 2011

Although country music has gained popularity, bluegrass is still lacking significant sales.

Bluegrass SWOT Analysis

Strengths

• Loyal Fans-more so than other Genres• Unique product offering/experience• Diverse offerings of Bluegrass and Newgrass

Weaknesses

• Exposure-websites, social media, etc.• Older consumer market• Lack of promoters and agents overseas to help with

performances• Negative stereotypes facing Bluegrass Music• Small market • Expensive instruments (limits fans who may want to play)• Lack of female musicians, acceptance • Loss of identity as those unfamiliar with Bluegrass classify it

as country• Recorded music sales very low compared to other genres

Opportunities

• Pair Bluegrass events with complimentary events (Beer tastings, instrument events, etc.)

• Effectively use social media and tools to manage social media

• Bring music to events that are not exclusively Bluegrass to tap into other markets (community festivals, etc.), as well as collaborate with other genres

• Connect with other popular musicians, network• Find sponsors with complimentary products• Create Bluegrass movie or musical to increase awareness

similar to “O Brother, Where Art Thou?”

Threats

• Royalties/Piracy-FM/AM music stations, Pandora, etc.• Other music industries taking market share• Acceptance in foreign markets-will they succeed or not• Cost of touring and performing• High threat of substitutes• Low bargaining power throughout industry• Demand for modernization from society may cause music to

become mainstream• Government regulations in foreign countries• Lack of suppliers for instruments, venues, etc. as industry

declines

Bluegrass Market Analysis

The Need for Proxies

• Record sale data by country is not readily available

• Proxies can provide correlations indicating the prevalence of bluegrass-related products exported internationally

Kentucky Whiskey Exports

Country 2007 2008 2009 2010 2011 2012 2013 thru Sept.

Average 2012 % of Total

Japan 19811 23093 18831 22728 29057 33474 33700 25813.4 8.21%U.K. 11189 11328 8104 9187 10832 8820 9295 9822.1 3.12%

France 3862 4461 4110 3518 5209 8986 6400 5220.9 1.66%China 1522 1680 1328 420 90 862 237 877 0.28%

Panama 407 177 105 23 176 503 885 325.1 0.10%Russia - - - - - 382 191 286.5 0.09%India - - 199 107 335 340 196 235.4 0.07%Brazil 137 177 159 264 103 408 353 228.7 0.07%

S. Africa 116 256 74 133 570 129 281 222.7 0.07%

Columbia - - - - 77 191 153 140.3 0.04%Egypt 10 18 - - - 114 - 47.3 0.01%

• Sales in thousands of U.S. Dollars• Rounded to the nearest thousand

Tennessee Whiskey Exports

Country 2009 2010 2011 2012 2013 through Sept. Average 2012 % of

Total

United Kingdom 112,219 124,871 115,666 112,327 69,481 106913 18.91%

France 69,402 76,351 105,896 87,578 79,882 83822 14.74%

Germany 51,049 58,289 69,543 69,367 55,975 60,845 11.68%

Australia 26,978 30,545 31,666 41,885 28,361 31,887 7.05%

Japan 21,625 21,543 26,274 26,677 23,477 23,919 4.49%

Spain 30,371 32,113 33,553 24,856 20,959 28,370 4.18%

Italy 24,044 25,527 27,761 23,427 14,251 23,002 3.94%

Netherlands 5,104 5,812 7,129 16,071 12,034 9,230 2.71%

Singapore 6,402 6,282 9,648 14,100 10,885 9,463 2.37%

Turkey 258 3,708 13,712 13,837 11,379 8,579 2.33%

• Sales in thousands of U.S. Dollars• Rounded to the nearest thousand

U.S. String Instrument Exports

Time 2009 2010 2011 2012 % of Total

World Total 109,302,629 112,709,238 135,502,912 139,979,445 100%

Japan 25,591,480 22,379,112 24,276,516 27,931,510 20%

Canada 15,385,765 17,342,122 20,102,270 24,377,965 17.4%

Netherlands 13,324,869 7,892,736 20,369,837 18,645,899 13.3%

Germany 9,326,533 16,599,718 10,989,928 9,858,079 7%

Australia 6,270,820 7,718,062 10,011,591 7,533,247 5.4%

Korea, South 1,561,098 2,185,156 3,158,110 4,597,229 3.3%

Italy 3,551,236 4,768,898 3,661,536 4,422,344 3.2%

South America 1,826,166 3,096,422 3,968,528 4,061,642 2.9%

France 3,452,047 2,555,419 2,909,964 2,954,109 2.1%

• Sales in U.S. Dollars

U.S. Tobacco Exports

Country 2007 2008 2009 2010 2011 2012 2012 % of Total

Japan 761,055,522 599,685,349 347,105,271 312,574,299 363,953,087 295,295,542 26%

Mexico 24,848,586 25,321,366 33,808,114 30,219,967 39,429,821 43,818,944 3.8%

Canada 36,559,118 31,959,718 29,403,217 32,695,117 29,320,389 29,169,746 2.6%

Lebanon 49,553,151 25,682,664 28,563,287 22,446,095 5,083,814 5,199,854 0.46%

Dominican Republic

8,261,399 10,775,043 9,424,244 15,968,508 12,046,993 24,975,356 2.2%

Russia 9,539,740 12,273,159 5,923,695 8,197,529 10,492,989 21,352,515 1.89%

United Arab Emirates

19,651,568 5,889,739 2,288,239 4,934,163 4,537,942 12,703,873 1.1%

Netherlands 11,799,426 9,074,951 6,597,251 6,992,492 7,863,057 6,815,812 0.60%

Honduras 541,994 869,774 504,492 278,721 7,063,611 6,847,986 0.61%

Switzerland 1,087,553 5,193,626 228,041 153,237 259,046 4,842,345 0.43%

• Sales in U.S. Dollars

U.S. Beef Jerky Exports

Country 2007 2008 2009 2010 2011 2012 Average

Canada 356,463,265 402,531,611 377,038,311 423,307,588 487,365,699 564,647,721 435,225,699

Mexico 54,701,318 61,072,866 64,695,078 77,716,388 77,880,845 105,319,668 73,564,361

Japan 19,704,730 19,877,404 21,114,856 30,972,680 32,406,618 32,590,683 26,111,162

Philippines 9,669,650 10,132,323 14,171,618 23,172,660 33,613,699 36,370,750 21,188,450

Australia 9,371,424 14,880,714 9,279,379 11,201,246 14,159,192 15,002,146 12,315,684

Hong Kong 7,183,682 8,565,245 9,665,425 9,230,807 12,974,753 9,543,799 9,527,285

Guatemala 4,419,952 5,034,180 9,498,291 10,397,540 12,983,079 14,675,800 9,501,474

Colombia 7,744,879 7,551,243 8,793,982 9,666,830 8,377,831 8,627,410 8,460,363

Panama 2,513,716 4,876,745 6,357,769 7,685,840 8,719,468 10,072,022 6,704,260

Chile 304,871 534,333 491,477 1,008,543 7,306,154 9,135,255 3,130,106

• Sales in U.S. Dollars

U.S. Cowboy Hat Exports

Country 2007 2008 2009 2010 2011 2012 Average

Japan 1,438,145 2,003,949 1,816,543 2,363,653 3,015,464 3,669,453 2,834,535

Germany 333,601 373,927 337,779 378,901 448,367 251,869 354,074

U.K. 138,152 86,488 274,751 167,815 243,644 245,787 192,773

Mexico 77,526 162,946 93,472 115,574 132,940 217,410 133,311

Canada 75,807 67,317 108,846 97,504 146,313 149,737 107,587

S. Korea 22,520 137,404 6,790 28,190 15,552 126,272 56,121

France 22,594 87,765 56,583 45,211 24,159 82,119 53,072

Australia 74,637 25,485 12,246 52,722 63,058 85,914 52,344

Honduras 0 0 4,237 0 5,725 114,165 20,688

Indonesia 0 0 0 12,019 0 90,744 17,127

• Sales in U.S. Dollars

U.S. Cowboy Boot Exports

Country 2007 2008 2009 2010 2011 2012 Average

Canada 157,130,618 167,332,394 158,847,061 179,888,186 195,714,603 224,250,079 180,527,157

Japan 22,728,594 40,427,759 42,634,487 54,511,269 62,137,203 60,862,493 47,216,968

Mexico 12,610,485 25,482,558 15,614,570 23,644,231 23,631,835 14,536,510 19,253,365

S. Korea 13,801,445 13,850,955 10,930,273 13,431,463 22,507,743 34,769,554 18,215,239

United Arab Emirates

9,474,764 14,574,533 9,735,301 14,638,241 20,173,893 24,878,674 15,579,234

Netherlands 13,442,748 12,171,465 6,248,602 12,565,565 11,943,369 9,724,233 11,015,997

Hong Kong 8,026,988 5,782,665 5,580,361 7,859,963 11,618,950 14,438,469 8,884,566

U.K. 7,638,774 12,632,484 5,388,162 8,310,404 8,413,652 10,794,729 8,863,034

Australia 5,882,586 7,652,225 6,270,805 6,255,617 9,057,691 8,358,098 7,246,170

China 1,466,287 5,226,776 4,377,240 6,072,728 10,792,390 11,378,923 6,552,391

• Sales in U.S. Dollars

U.S. Military Presence Overseas

CountryNumber of

Troops 2005

Number of Troops

2012Average

Iraq & Kuwait 207,000 15,000 111,000

Germany 66,000 45,596 55,798

Japan 35,050 52,692 43,871

Afghanistan 20,400 63,000 41,700

Italy 11,428 10,916 11,172

U.K. 10,536 9,310 9,923

Bahrain 1,482 2,902 2,192

Spain 1,634 1,600 1,617

Turkey 1,738 1,491 1,615

Belgium 1,388 1,165 1,277

Highest Country Ratings Based on Proxies

Rank KY Whiskey

Tobacco String Inst.

Beef Jerky

Cowboy Hats

Cowboy Boots

Military Presence

1 Japan Japan Japan Canada Japan Canada Iraq & Kuwait

2 U.K. Mexico Canada Mexico Germany Japan Germany

3 France Canada Netherlands Japan U.K. Mexico Japan

4 China Lebanon Germany Philippines

Mexico S. Korea Afghanistan

5 India Dominican Republic

Australia Australia Canada United Arab

Emirates

Italy

Based on the aforementioned data, the top potential markets for Bluegrass are Japan, Canada, Mexico, Germany, and U.K.

Bluegrass Instruments

Heart of Bluegrass

Bluegrass is traditionally played on acoustic stringed instruments. The fiddle, five-string

banjo, guitar, mandolin, and upright bass (string bass) are often joined by the resonator

guitar

Acoustic Guitar• Makers: Allen guitars, Bourgeois Guitars, CA Guitars, CB Guitars, Collings

Guitars, Dudenbostel Stringed Instruments, JW Gallagher, Gibson Guitars, Henderson Guitars, Hoffman Guitars, Huss and Dalton, Larrivee Guitars, LoPrinzi Guitars, Lucas Custom Instruments CF Martin

a stringed musical instrument with a fretted fingerboard, typically incurved sides, and six or twelve strings, played by plucking or strumming with the fingers or a plectrum.

Under 100100-200

200-350350-500

500-1,0001,000-1,500

Over 1,500

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

U.S Sales

JapanU.S

GermanyU.K.

TaiwanHong Kong

AustriaFrance

ItalyChina

Australia

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Sales (millions)

Banjo Banjo Makers: Gretsch Enterprises, Pyle

Pro, Washburn a stringed musical instrument with a long

neck and a round open-backed body consisting of parchment stretched over a metal hoop like a tambourine, played by plucking or with a plectrum. It is used esp. in American folk music

Fiddle Makers: Bellafina, Cremona, Rozanna, Florea,

Silver Creek, Revelle String instruments, usually with four strings

tuned in perfect fifths. It is the smallest, highest-pitched member of the violin family of string instruments, which also includes the viola, and the cello.

"Son, the only difference is the name. Fiddle is just a nickname."- Unknown

Mandolin and Dobro Mandolin Makers: Gibson, Fender, Dean Tennessee a musical instrument in the lute family (plucked, or

strummed) usually with four courses of strings, tuned in perfect fifths and plucked with a plectrum.

Dobro makers: Dobro Manufacturing Company, Gretsch, Gibson.

Originally coined by the Dopyera brothers when they formed the Dobro Manufacturing Company, in time it came to commonly mean a resonator guitar, or specifically one with a single inverted resonator. This particular design was introduced by the Dopyeras' new company.

Successful Artists

Top Grammy Winning Artists1990s to Today

Genre 1990-1994 1995-1999 2000-2004 2005-2009 2010-2013

Bluegrass

Alison Krauss Ricky Skaggs & KY Thunder

Alison Krauss & Union Station

Ricky Skaggs & KY Thunder

Alison Krauss & Union Station

Nashville Bluegrass Band

Alison Krauss & Union Station

Dolly Parton Steve Martin The Steep Canyon Rangers

Alison Krauss & Union Station

Nashville Bluegrass Band

Ricky Skaggs & KY Thunder

Del McCoury Band

Patty Lovelace

Folk

Chieftains Chieftains Steve Earle Steve Earle Carolina Chocolate Drops

Bob Dylan Emmylou Harris

Nickel Creek Levon Helm The Civil Wars

Americana

- - - Levon Helm Bonnie Raitt

- - - Alison Krauss & Robert Plant

Levon Helm

Billboard Top Artists2002 to Today

Artist Top AlbumsSteve Ivey Best of Bluegrass 20 Best of BG Gospel Best of BG Gospel: Collector’s

EditionAlison Krauss & Union Station

Live Lonely Runs Both Ways Paper Airplane

Nickel Creek Why Should the Fire Die?

Reasons Why (The Very Best)

This Side

Old Crow Medicine Show Big Iron World O.C.M.S. Tennessee Pusher

Rhonda Vincent All American BG Girl One Step Ahead The Storm Still Rages

Ricky Skaggs & KY Thunder

Brand New Strings Live at the Charleston Music Hall

Instrumentals

The Wailin’ Jennys Firecracker Bright Morning Stars Live at the Mauch Chunk Opera House

Dailey & Vincent Dailey & Vincent Sing the Statler Brothers

Brothers from Different Mothers

The Gospel Side of Dailey & Vincent

Doyle Lawson & Quicksilver

You Gotta Dig a Little Deeper

He Lives in Me Lonely Street

Key Bluegrass Record Labels

2003 2004 2005 2006

1 Rounder Rounder Rounder Rounder

2 Sugar Hill Gaither Music Group

Sugar Hill Welk

3 Time Life Sugar Hill Nettwerk Hollywood

4 Sony Music

Universal Music Group

Gaither Music Group

CMH

5 Capitol Madacy Madacy New Line

Source: Billboard

Social Media & Bluegrass

IBMA

IBMAMission:1. Connect and educate2. Empower community3. Encourage worldwide appreciation of BG music of yesterday,

today, and tomorrow

Customer Benefits:4. Deliver info and education5. Gather and distribute database of opportunities6. Professionals perceive income and net growth have grown

due to IBMA

IBMAOfferings• Tips for:

– Forming BG organization– Networking – Social Media– Pitching Songs– Traveling and Touring– Filing Taxes– Performing at different venues– Branding– Websites

• Legislative information regarding copyrights, royalties, etc.• News about festivals and conferences• Bluegrass Leadership society

BluegrassEasy Listening

AlternativeChristian

RapPop

RockCountry

0 20 40 60 80 100 120 140 160

1.11.525.067.118.63

16.617.8

168

YouTube search results in millions

Number of search results

Social Media

Social Media

Bluegrass

Easy Listening

Rap

Alternative

Christian

Rock

Pop

Country

0 500 1000 1500 2000 2500 3000 3500 4000

21.7

347

430

434

615

1290

1340

3780

Google Search Results in Millions

Number of Search Results

Social Media

Rock Pop

Christian

Country Rap

Altern

ative

Bluegrass

Easy Li

stening

0

50

100

150

200

250

300251

112 101 88

41 3817 7

Linked in Groups

# of LinkedIn Groups

Easy Listening

Bluegrass

Alternative

Country

Pop

Rock

Rap

0 5000 10000 15000 20000 25000 30000

286

420

4461

10255

15286

17692

27647

Facebook Genre Like Count

Likes

Social Media

Bluegrass Global Strategy

Ways to Increase Awareness• Bombard the market-get the music and musicians names

out everywhere. Advertise, perform, connect through social media, etc.

• Update websites-way too many BG websites are poorly created and outdated including IBMA (the main website for all of BG music!)

• Perform at venues that are not necessarily for just BG, Go to festivals where target consumers may typically go (Beerfest, community festivals, etc.)

• Check out IBMA’s tips on how to foster interest in younger audiences

Ways to Increase Awareness• Create a Bluegrass Music database accessible online• Include pages specific to:

• Buy/sell music• Buy/sell instruments• Buy concert tickets• Get details of festivals• Chat with other BG

lovers

• Research historical BG data

• Find original albums• Even a BG dating site!

• Include translations for most common languages around the world