Haverwood Furniture Essay

Haverwood Furniture, Inc.Q1 How would you specify the HH wood Furniture Industry? Haverwood L Room & BedroomHaverwood has profess sales force 10 sales/ 2 RegUpholstered 50%/ Wood 40%Total Ind Sales 3 air mileTop 10 Wood Manu = 1/3 of total salesAsia imports ride down prices (BPuerto)US Manu downsized 100 Manu$15 million sales = 6% mkt partingHwood uses 1000 specialty style (Selective distribution) head concept prevalentDo non support full stock in all retail merchantsDo not have galleries in all retailersQ2 How do consumer bribe?94% enjoy buy atping motive confidence about quality or evaluating price95% get redecorating ideas from Mag.84% believe higher(prenominal) price = higher quality72% browse even off when not buyingRely on sales people for ideas but want to be left alone to shop 85% read ads before obtainDifficult to select stylesAttributesStyling/Design (1) grade Name/Image (5)Price (4) crook timberland/workmanship (2)Store Quality/Image (3)Buying Decision articulate decisionDifficult guidance brusque KnowledgeQ3 What is the role of marketing communicationsConsumer advertiseoinforms about styles, arrangementsoEmphasize QualityoDevelops fate of mindCompany SalespeopleoSell thru as more than of line as possibleoSell-develop sonorousnessoTraining retail sales people harvest-home quality %& feature oBuild inspiration w/ RSPo100% sales time commerce AdvertisingoPoint of purchase anything that goes on at the time of sale oBrochure take absentCooperative AdvertisingoGiven by the retailer but funded by the manufacturingBuilds bond amidst retailer and brandQ4 Objectives for 2008Broaden advertising incl onlinePenetrating boomer demo (Buy hi-quality) lower berth ad budget if possibleMarketing many linesBroaden full line penetrationMore galleriesReach consumers at critical decision pointsQ5 How might objectives be translated into budge?Sales IncreaseoLast yr 75 M * 1.04% = $78000000oSales person option $135000 (SALES)o5% of 7800 0000 =39000003675000225000o1% = 780000 (AGENCY)562000218000