Haverwood Furniture. Inc.
Q1 How would you qualify the HH wood Furniture Industry? •Haverwood L Room & A ; Bedroom
•Haverwood has ain gross revenues force 10 sales/ 2 Reg
•Upholstered 50 % / Wood 40 %
•Total Ind Gross saless 3 Mil
•Top 10 Wood Manu = 1/3 of entire gross revenues
•Asia imports driving down monetary values ( BPuerto )
•US Manu downsized – 100 Manu
• $ 15 million gross revenues = 6 % mkt portion
•Hwood uses 1000 forte manner ( Selective distribution ) •Gallery construct prevalent
•Do non hold full line in all retail merchants
•Do non hold galleries in all retail merchants
Q2 How do consumer purchase?
•94 % enjoy shopping
•Lack assurance about quality or evaluating monetary value
•95 % get redecorating thoughts from Mag.
•84 % believe higher monetary value = higher quality
•72 % browse even when non purchasing
•Rely on gross revenues people for thoughts but want to be left entirely to shop •85 % read ads before shopping
•Difficult to choose manners
Properties
•Styling/Design ( 1 )
•Brand Name/Image ( 5 )
•Price ( 4 )
•Construction Quality/workmanship ( 2 )
•Store Quality/Image ( 3 )
Buying Decision
•Joint determination
•Difficult – counsel
•Little Knowledge
Q3 What is the function of Marketing Communications
•Consumer advertisement
oinforms about manners. agreements
oEmphasize Quality
oDevelops “share of mind”
•Company Salespeople
oSell thru as much of line as possible
oSell-develop resonance
oTraining retail gross revenues people – merchandise quality % & A ; characteristic oBuild enthusiasm w/ RSP
o100 % gross revenues clip
•Trade Ad
oPoint of purchase – anything that goes on at the clip of sale oBrochure take away
•Cooperative Ad
oGiven by the retail merchant but funded by the fabrication
•Builds bond between retail merchant and trade name
Q4 Aims for 2008
•Broaden advertisement incl online
•Penetrating boomer demo ( Buy hi-quality )
•Lower ad budget if possible
•Marketing many lines
•Broaden full line incursion
•More galleries
•Reach consumers at critical determination points
Q5 How might objectives be translated into Budge?
•Sales Increase
oLast Year 75 M * 1. 04 % = $ 78000000
oSales individual option $ 135000 ( SALES )
o5 % of 78000000 =
•3900000
•3675000
•225000
o1 % = 780000 ( AGENCY )
•562000
•218000
