Haverwood Furniture Essay

Haverwood Furniture, Inc. Q1 How would you characterize the HH wood Furniture Industry? †¢Haverwood L Room & Bedroom †¢Haverwood has own sales force 10 sales/ 2 Reg †¢Upholstered 50%/ Wood 40% †¢Total Ind Sales 3 Mil †¢Top 10 Wood Manu = 1/3 of total sales †¢Asia imports driving down prices (BPuerto) †¢US Manu downsized – 100 Manu †¢$15 million sales = 6% mkt share †¢Hwood uses 1000 specialty style (Selective distribution) †¢Gallery concept prevalent †¢Do not have full line in all retailers †¢Do not have galleries in all retailers Q2 How do consumer buy? †¢94% enjoy shopping †¢Lack confidence about quality or evaluating price †¢95% get redecorating ideas from Mag. †¢84% believe higher price = higher quality †¢72% browse even when not buying †¢Rely on sales people for ideas but want to be left alone to shop †¢85% read ads before shopping †¢Difficult to select styles Attributes †¢Styling/Design (1) †¢Brand Name/Image (5) †¢Price (4) †¢Construction Quality/workmanship (2) †¢Store Quality/Image (3) Buying Decision †¢Joint decision †¢Difficult – guidance †¢Little Knowledge Q3 What is the role of Marketing Communications †¢Consumer advertising oinforms about styles, arrangements oEmphasize Quality oDevelops â€Å"share of mind† †¢Company Salespeople oSell thru as much of line as possible oSell-develop rapport oTraining retail sales people – product quality %& feature oBuild enthusiasm w/ RSP o100% sales time †¢Trade Advertising oPoint of purchase – anything that goes on at the time of sale oBrochure take away †¢Cooperative Advertising oGiven by the retailer but funded by the manufacturing †¢Builds bond between retailer and brand Q4 Objectives for 2008 †¢Broaden advertising incl online †¢Penetrating boomer demo (Buy hi-quality) †¢Lower ad budget if possible †¢Marketing many lines †¢Broaden full line penetration †¢More galleries †¢Reach consumers at critical decision points Q5 How might objectives be translated into budge? †¢Sales Increase oLast Year 75 M * 1.04% = $78000000 oSales person option $135000 (SALES) o5% of 78000000 = †¢3900000 †¢3675000 †¢225000 o1% = 780000 (AGENCY) †¢562000 †¢218000