Crestfield Furniture: Analysis
Crestfield Furniture
Case Brief
Marketing Strategy
April 2, 2009
Prof. Carolyn Shiery
Background
Crestfield Furniture Industries Inc. was founded in early 1900’s By the Bates family, and is run by the 3rd generation today. In 2003 the fairly successful company enjoyed $75 million year-end net sales with a $3.7 million profit. Crestfield sells a high quality line of wood furniture goods, through high-end department (furniture) stores, as well as independent stores. The company remains fairly small, but is expecting to grow 6% in 2004. Crestfield currently employs 10 people full time. The total budget for advertising/promotion was in 2003, $3,675,000. Harvey and Bernham, the advertising agency was brought on board to help increase awareness of the company and bring in sales. Harvey and Bernham caused Crestfield to realize that there was problem with distribution of additional funds for more advertising. There recommendation is one Crisfield’s president will have to think about.
Problem
Crestfield needs to change advertising strategy and tactics to increase sales and knowledge of the brand, without diminishing the quality of the brand that its current customers have known for years.
Alternatives
1. Follow the ad agency’s campaign and increase expenditures by 225,000 2. Do nothing to current advertising and promotion plan 3. Increase expenditures but not as much as recommended by the ad agency
Recommendation
To increase expenditures but not as much as recommended by the ad agency
Analysis Since Crestfield has been successful at creating awareness for their quality furniture it will be easy for them to continue this tradition with new customers. Crestfield’s success depends on their promotion, by increasing their advertising plan, they will not only ensure growth but essentially guarantee to retain current customers. Although, simply increasing spending does not guarantee success in this industry. Crestfield needs to change its marketing strategy
Case Brief
Marketing Strategy
April 2, 2009
Prof. Carolyn Shiery
Background
Crestfield Furniture Industries Inc. was founded in early 1900’s By the Bates family, and is run by the 3rd generation today. In 2003 the fairly successful company enjoyed $75 million year-end net sales with a $3.7 million profit. Crestfield sells a high quality line of wood furniture goods, through high-end department (furniture) stores, as well as independent stores. The company remains fairly small, but is expecting to grow 6% in 2004. Crestfield currently employs 10 people full time. The total budget for advertising/promotion was in 2003, $3,675,000. Harvey and Bernham, the advertising agency was brought on board to help increase awareness of the company and bring in sales. Harvey and Bernham caused Crestfield to realize that there was problem with distribution of additional funds for more advertising. There recommendation is one Crisfield’s president will have to think about.
Problem
Crestfield needs to change advertising strategy and tactics to increase sales and knowledge of the brand, without diminishing the quality of the brand that its current customers have known for years.
Alternatives
1. Follow the ad agency’s campaign and increase expenditures by 225,000 2. Do nothing to current advertising and promotion plan 3. Increase expenditures but not as much as recommended by the ad agency
Recommendation
To increase expenditures but not as much as recommended by the ad agency
Analysis Since Crestfield has been successful at creating awareness for their quality furniture it will be easy for them to continue this tradition with new customers. Crestfield’s success depends on their promotion, by increasing their advertising plan, they will not only ensure growth but essentially guarantee to retain current customers. Although, simply increasing spending does not guarantee success in this industry. Crestfield needs to change its marketing strategy