Haverwood Furniture Essay

Haverwood Furniture, Inc.Q1 How would you characterize the HH wood Furniture Industry? Haverwood L manner & BedroomHaverwood has own gross sales force 10 sales/ 2 RegUpholstered 50%/ Wood 40%Total Ind Sales 3 Mil sack up 10 Wood Manu = 1/3 of total salesAsia imports driving down prices (BPuerto)US Manu downsized 100 Manu$15 million sales = 6% mkt lotHwood uses 1000 specialty style (Selective distribution) Gallery concept prevalentDo not have full word of mouth in all retail merchantsDo not have galleries in all retailersQ2 How do consumer buy?94% enjoy shoppingLack confidence about quality or evaluating price95% get redecorating ideas from Mag.84% believe higher price = higher quality72% browse even when not buyingRely on sales people for ideas but want to be left alone to shop 85% read ads before shoppingDifficult to select stylesAttributesStyling/Design (1) steel Name/Image (5)Price (4)Construction Quality/workmanship (2)Store Quality/Image (3)Buying DecisionJoint decisionDif ficult wayLittle KnowledgeQ3 What is the role of Marketing CommunicationsConsumer advertisingoinforms about styles, arrangementsoEmphasize QualityoDevelops share of mindCompany SalespeopleoSell thru as much of line as possibleoSell-develop rapportoTraining retail sales people product quality %& feature oBuild enthusiasm w/ RSPo100% sales timeTrade AdvertisingoPoint of barter for anything that goes on at the time of sale oBrochure take awayCooperative AdvertisingoGiven by the retailer but funded by the manufacturingBuilds bond between retailer and brandQ4 Objectives for 2008Broaden advertising incl onlinePenetrating boomer demo (Buy hi-quality)Lower ad budget if possibleMarketing many linesBroaden full line penetrationMore galleriesReach consumers at critical decision pointsQ5 How might objectives be translated into budge?Sales IncreaseoLast Year 75 M * 1.04% = $78000000oSales person option $135000 (SALES)o5% of 78000000 =39000003675000225000o1% = 780000 (AGENCY)562000218000