Haverwood Furniture Essay

Haverwood Furniture, Inc.Q1 How would you condition the HH wood Furniture Industry? Haverwood L direction & BedroomHaverwood has own sales force 10 sales/ 2 RegUpholstered 50%/ Wood 40%Total Ind sales 3 Mil cover 10 Wood Manu = 1/3 of ingrained salesAsia imports driving down termss (BPuerto)US Manu downsized hundred Manu$15 million sales = 6% mkt careHwood uses 1000 specialty style (Selective distribution) Gallery excogitation prevalentDo not have right take out in all retail merchantsDo not have galleries in all retail merchantsQ2 How do consumer cloud?94% enjoy shoppingLack self-confidence about quality or evaluating price95% get redecorating ideas from Mag.84% believe higher price = higher quality72% browse tear down when not buyingRely on sales pile for ideas but want to be leave alone to shop 85% read ads in front shoppingDifficult to select stylesAttributesStyling/Design (1) strike off Name/Image (5)Price (4)Construction timbre/workmanship (2)Store Quality/ Image (3) get DecisionJoint decisionDifficult managementLittle KnowledgeQ3 What is the role of Marketing communication theoryConsumer advertisingoinforms about styles, arrangementsoEmphasize QualityoDevelops share of fountainheadCompany SalespeopleoSell thru as much of line as feasibleoSell-develop rapportoTraining retail sales people product quality %& feature oBuild enthusiasm w/ RSPo100% sales timeTrade AdvertisingoPoint of purchase anything that goes on at the time of sale oBrochure catch awayCooperative AdvertisingoGiven by the retailer but funded by the manufacturingBuilds bond between retailer and brandQ4 Objectives for 2008Broaden advertising incl onlinePenetrating baby boomer demo (Buy hi-quality)Lower ad budget if possibleMarketing many linesBroaden full line penetrationMore galleriesReach consumers at circumstantial decision pointsQ5 How might objectives be translated into budge?Sales IncreaseoLast Year 75 M * 1.04% = $78000000oSales soulfulness option $135000 (SALES)o5% of 78000000 =39000003675000225000o1% = 780000 (AGENCY)562000218000