Haverwood Furniture Essay

Haverwood piece of furniture, Inc.Q1 How would you characterize the HH wood Furniture Industry? Haverwood L Room & BedroomHaverwood has own sales throw 10 sales/ 2 RegUpholstered 50%/ Wood 40% occur Ind Sales 3 MilTop 10 Wood Manu = 1/3 of total salesAsia imports driving down prices (BPuerto)US Manu downsized hundred Manu$15 million sales = 6% mkt shareHwood uses 1000 strong suit style (Selective distribution) Gallery concept prevalentDo not tolerate full decipher in all retailersDo not conduct galleries in all retailersQ2 How do consumer buy?94% enjoy shopLack confidence about whole tone 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 altogether to shop 85% read ads before shoppingDifficult to appoint stylesAttributesStyling/Design (1)Brand Name/Image (5)Price (4)Construction feel/workmanship (2)Store Quality/Image (3)Buying Decision vocalize decisionDifficult guidanceLittle KnowledgeQ3 What is the role of market CommunicationsConsumer advertisingoinforms about styles, arrangementsoEmphasize QualityoDevelops share of mind social club SalespeopleoSell thru as much of line as possibleoSell-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 take awayCooperative AdvertisingoGiven by the retailer but funded by the manufacturingBuilds bond between retailer and noticeQ4 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 office objectives be translated into budge?Sales IncreaseoLast Year 75 M * 1.04% = $78000000oSales person option $135000 (SALES)o5% of 78000000 =39000003675000225000o1% = 780000 (AGEN CY)562000218000