Causes — This opportunity presents itself due to the following reasons.
Apr 27th, by Scott Hebert The Problem. Haverwood Furniture is examining its marketing budget for the year There are competing requests for a limited amount of promotion dollars. After hearing both requests and arguments, Haverwood is faced with the following problem: As Charlton Bates noted in the case study, it is just as important for Haverwood to examine how funds are apportioned within the budget as to determine how much additional funds should be applied to the overall budget.
Table 1 details the recommended changes Haverwood should make to the four line items that comprise the promotion budget. The recommended changes for the upcoming year our based on the communications objectives identified for Haverwood Furniture.
One of the most significant trends in furniture sales is the gallery concept.
To achieve this, Haverwood needs to move forward with hiring the additional salesperson to ensure existing salespeople do not become overloaded.
Additionally, increasing the trade advertising budget will put more resources into the major trade shows where retail buyers often make decisions about what manufacturer products they will sell. This support comes directly from the sales personnel associated with each retail store.
In order to ensure that retail outlets receive the support they need, Haverwood furniture inc case study must add the additional salesperson as indicated in the budget.
Furthermore, the increased spend at trade shows can be used to educate retail sales personnel on the unique benefits of Haverwood furniture. Reach Consumer at Critical Points. Additionally, Exhibit 5 indicates that buyers get ideas from furniture stores that do not always turn into purchase.
The most critical point of interaction with the customer is inside the retail outlet. This is the best opportunity to turn a shopper into a buyer.
Rather than trying to convince buyers to buy Haverwood furniture before they enter the store, the most likely opportunity to convince the buyer is after they are already inside.
All of this points to the need for more contact between Haverwood sales people and retail sales people, as well as improved training for those sales people.
Improve Image and Awareness. Like all companies, Haverwood wants to improve the image and awareness of their brand. Michael Hervey believes that building the brand means spending additional dollars on consumer advertising.
Rather than improving the image of their brand in the eyes of the consumer, Haverwood needs to focus on improving their brand awareness with retail salespeople. These salespeople play a critical role in influencing the purchasing behavior of consumers. Therefore, it is important to increase the both the sales expense and trade advertising budgets.
Push promotion involves getting products into retails stores and in front of consumers. Pull promotion, on the other hand, focuses on getting consumers into the retail stores. Because of the importance of penetrating existing retail outlets and maintaining retail support, push promotion is the larger focus of Haverwood furniture.
This requires an increase in the sales expense and trade advertising budgets. That being said, pull promotion has its place, too. Since Haverwood furniture is not in every retail store, getting consumers into the right retail stores is also important.
Therefore, a decrease in the cooperative advertising allowance is not recommended. Although an increase in consumer advertising is not warranted, a decrease is not necessary thanks to the expected four percent growth of sales in Thanks to the increasing cost of labor and materials and pricing pressure from competitors, Haverwood is expecting gross profit margin to shrink in Although the effect of this will not be fully understood until the budgeting for begins, a conservative approach with the promotional budget is advisable.
I would have included the tables mentioned above, but converting them was a big PITA.Haverwood Furniture Individual Summary Introduction: In , Haverwood Furniture and Lea-Meadows Inc. merged into one company. The issue at hand involves merging the selling efforts of .
Haverwood Furniture, Inc. I. Summary of Facts A. Market - Furniture Industry 1. Types of customers a. X 5 case copy kimberlybak Student P kimberlybak depth interview tabs kimberlybak Lancer gallery case study copy kimberlybak Carnival cruise report copy kimberlybak Clip pers project kimberlybak Haverwood Furniture Inc.
They are a manufacturer of medium- to high-priced wood bedroom, living room and dining room furniture. Their net sales in were $75 million; and the industry sales of wood furniture in were $ billion. haverwood furniture inc a marketing case study KEYWORD essays and term papers available at pfmlures.com, the largest free essay community.
Haverwood Furniture Inc. (B) Background on the merger In April Haverwood Furniture merged with Lea-Meadows, a manufacturer of upholstered furniture for living and family rooms.
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