Running head: COLT FIREARMS MARKETING MIX

Colt Firearms Marketing Mix Maddie Robinson, Chuck Stanton, Marcus McCray, Kevin McConnell, Ethan Maas Valdosta State University

1

COLT FIREARMS

2

Colt 1911 handguns have been an important part of American history and have helped to push the economy. The guns were put into production over 100 years ago and have been in production ever since. There have been many different versions produced in the last 100 years. They range in design and purpose, but they all do the same job which is to shoot. The Colt guns were sold during the Civil War as supplies to the Union army, the company refused to sell them to the southern states. The guns were also a standard issued to the troops during World War I, World War II, Vietnam, Korea, and every war since then, including the current Iraqi War we are currently in. They are sold all over the world and are put into use by the military and law enforcement today. They made the first breach loaded revolver, first machine gun, M4, and many others, all of which changed how each war was fought and the tactics used. The 1911s are very collectible and are eagerly sought out by gun enthusiasts all over the world. Marketing Mix Promotion variable is a big part of any company but Colt firearms uses it in a special way. Colt uses technology, such as YouTube, to promote their products. The company hires professionals to video while they test out their guns and give reviews that way people know just what they are buying. Colt also gets its name out to the public by sponsoring gun contest so people associate the best shooters with their guns. Colt is known for quality. History and Patronage motive is a big part of Colt guns. Samuel Colt started his weapons manufacturing company by mass-producing of the revolver for the first time. Colt gets most of its revenue from the United States government. Colt won a contract to produce 16,000 Colt M4 carbines in 1996. A year later Colt won a contract for another 6,000 M4 rifles. In 1998, the U.S. Government ordered 32,000 units of their M16 rifles from Colt for the first time in ten years. Well known from its use in the military during WW1, WW2, the Korean and Vietnam wars. Due to its wide

COLT FIREARMS

3

use in the military a lot of people are aware of the Colt 1911. It has been marketed as a quality weapon that’s highly accurate and reliable. Its infamous status is further shown by its cameos on History Channel’s Top Shot seasons 2 and 4. In order to increase its brand name Colt has a Facebook, where it promotes its weapons and events. Colt is expanding, and so is their weaponry. The Colt 1911 is actually now the 1991 series on the website. The Colt 1911’s price usually ranges from $600-2000. However those prices can increase based on the age and the parts used on that model. Online there are some for up to $10,000. Target Market Colt 1911s are advertised to quite a large target market. A target market is the group of customers on which marketing efforts are focused. The guns are used by a variety of people and for a variety of needs. They are used by law enforcement, the military, gun enthusiasts, and those who just like to shoot. They have customers in over ninety countries worldwide. The Colt Company has been selling firearms to the military since the Civil War, but only to the North during that time. Colt rifles and carbines are the only 5.56mm (.223 Rem.) weapon systems in the world that have been truly battle-tested under every condition that may be encountered on the diverse battlefields of the 21st century. From the early 1960’s to today, Colt M16 rifles, M4 carbines and variants have proven themselves under the most severe combat conditions from the jungles of South America and Southeast Asia to the deserts of the Middle East and the mountains of Afghanistan. Starting with the first Colt M16 rifles fielded during the Vietnam War, Colt engineers have continuously evaluated the performance of Colt firearms in the hands of users engaged in combat operations. Based on reports from the battlefield and continuous technical interaction with military and law enforcement users in the U.S. and around the world, evolutionary improvements have steadily been incorporated, keeping Colt weapons systems the

COLT FIREARMS

4

world standard. They also sell to law enforcement. Today, Colt has a complete line of law enforcement products that features the AR-15 series, the combat proven M4 series, 9mm submachine guns, a grenade launcher (non-lethal applications) and a heavy barrel accurized rifle. Furthermore, Colt maintains a staff of professional engineers, armorers and experienced operators who devote themselves to constant improvement of their products. They even sell to every day consumers. They work with the customer to give them everything they want with their gun. The company prides itself on customer satisfaction. SWOT Analysis The SWOT Analysis for the Colt 1911 (1991 series) is complex and it begins with the firearm’s strengths. Colt Manufacturing is among the most recognizable firearms brands. Samuel Colt, the founder of Colt Manufacturing, and John Moses Browning, a brilliant gunsmith and firearms designer, collaborated to introduce the 1911 to US and foreign markets. Both parties profited from their business relationship and Colt, already known for their single and double action revolvers, became a world renowned pistol superpower. Colt was the first in a long line of manufacturing companies to produce the 1911. It’s been said that “God made man and Sam Colt made them equal.” Another strength the Colt 1911 (1991 series) possesses is their reliability. The 1911 has a simplistic design in order to increase its reliability. Simple designs mean that there are less moving parts and the less moving parts a mechanism has, the less there is to break. Colt 1911s have been influential throughout history because of this attribute. Weaknesses are the next part of the SWOT Analysis. The Colt 1911 is expensive. The suggested retail price of a Colt 1911 (1991 series) is between $883.00 and $1,147.00 depending on the model in the 1991 series that is chosen. This makes the Colt on the upper end of the price

COLT FIREARMS spectrum. There are some brands that sell more expensive 1911s, Kimber and Limcat, but one can find a 1911 for a cheaper price also. The caliber may be another weakness. This depends on the shooter. A more advanced shooter will use proper form and stability to absorb the high recoil of the firearm whereas a novice or beginner would have difficulty remaining on target with this particular caliber. The 1911 uses a .45 ACP but there are different models of the 1911 that come in 9 millimeter. The opportunities for Colt are astounding. They have already remained in use in the United States military for over 100 years and they have more recently been used by defense contractors. The professional shooting circuits use the 1911 in speed shooting and USPSA (United States Practical Shooting Association) events worldwide. There are threats to the Colt 1911 that are mainly legislative. The Brady Bill, The Brady Handgun Violence Prevention Act, is a prime example. The Brady Bill makes a firearms dealer conduct a background check on any potential customer before they can sell them a handgun. It also raises the price of obtaining a Federal Firearms License (FFL) twenty fold. In order to sell firearms at a store, the store owner must possess an FFL. This hinders not only the market but also the dealer cost for the opportunity to sell firearms. Environmental Analysis A brief overview of the environmental forces surrounding handguns (Colt and otherwise) in the U.S. reveals a few interesting trends. Economically, the environment has recently gone toward providing lower-cost handguns in lower middle class areas; the economic squeeze has caused consumers to lower their price thresholds. Even if they can currently afford higher priced handguns they may refrain from purchasing them if they perceive their jobs or financial situations to be insecure. Additionally, a steadily decreasing violent crime rate in

5

COLT FIREARMS

6

recent years has helped contribute to a reduced economic demand for personal handguns (Pride and Ferrell). This trend may be reversing itself but it is too soon to tell at the moment. Competitively, Colt’s main domestic competitors include Smith & Wesson and Allaint; the growth of cheap competition from countries like Brazil and Israel has decreased each firm’s market share (Pride and Ferrell). In a related area, technological advances such as the use of lighter, cheaper materials have made prices more competitive; many manufacturers like Colt and Smith & Wesson have also begun marketing handguns to females. They specifically zero in on the compact size and ease and familiarity of use to try to capture this growing target market. Politically, public perception of whether or not a politician is friendly or hostile to individual gun ownership can have an effect on the marketing & sales of Colt handguns; for example, firearm & ammunition sales increased sharply in the months preceding & following the election of Barack Obama as President because of how many people perceived the possible changes his administration could affect on federal gun policy. In the same vein as political forces, handgun sales fluctuate in response to possible changes in the legal & regulatory environment. Regulations often increase prices to manufacturers such as Colt and some of these costs are then passed along to the consumer; these trends can persist in the long-term as well as the short term. While it is true that the handgun market has become steadily more regulated over the years, recent court rulings have also signified victories for proponents of individual gun ownership in America; a specific case of this is the Supreme Court case D.C. vs. Heller, which affirmed the right to keep a gun in the home in self defense (Kopel). Sociocultural trends are harder to gauge but concealed carry laws seem to be getting more and more support lately especially in the wake of college campus and high school shootings such as Columbine and Virginia Tech.

COLT FIREARMS Conclusion Colt handguns have been a very important part of history and the economy of the world and more importantly the United States. They have many strengths and reach out to many different target markets. They have been able to adapt to the changes that come with the changing times of the world. These changes have helped them to stay around these many years and help them to be one of the most recognized brands in the world.

7

8

COLT FIREARMS Work Cited Brand, R. (1997). Bradycampaign.org. http://www.bradycampaign.org/legislation/backgroundchecks/bradylaw Campbell, D. (07 m). Americanrifleman.com. http://www.americanrifleman.org/articles/colt1911-history/ Colt: Quality makes it a colt. (2012). http://www.coltsmfg.com/About/History.aspx Curt , G. (1999). m1911.org. http://www.m1911.org/browning.htm Kopel, David B. “Peril or Protection? The Risks and Benefits of Handgun Protection.” Saint Louis University Public Law Review. Saint Louis University School of Law, 1993. Web. 19 Apr 2012. Pride, William and O.C. Ferrell. Marketing 2012. 16. Mason, Ohio: Southwestern Cengage Learning, 2012. Print. United states practical shooting association. (2011). http://uspsa.org/