Two-and-a-half years go Fender was faced with two problems. (snip) Secondly, there was a segment of the market (approximately 25-30%) that was not being addressed by Fender stye product. All our previous attempts to penetrate it under the Fender banner had been in vain. One fact was consistent to both of these problems – the Fender name. (snip)
Which brings us directly to the cause of the second problem – why couldn’t we sell those other styles of guitars? Tradition.
In the dealers and consumer minds Fender means a particular group of instruments – Strats, Teles Ps and Js. We could tweak them a little here and there, but heaven helps us if we went too far. It seems like every time we did, we had messed with mom, apple pie, baseball the flag, etc. etc. (snip)
Because we had been unsuccessful in our attempts using the Fender name, we felt that marketing the right products using a different brand name might be the answer.