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Haverwood Furniture, Inc.

Q1 How would you characterize the HH wood Furniture Industry? •Haverwood L Room & Bedroom
Haverwood has own sales force 10 sales/ 2 Reg
Upholstered 50%/ Wood 40%
Total Ind Sales 3 Mil
Top 10 Wood Manu = 1/3 of total sales
Asia imports driving down prices (BPuerto)
US Manu downsized – 100 Manu
$15 million sales = 6% mkt share
Hwood uses 1000 specialty style (Selective distribution) •Gallery concept prevalent
Do not have full line in all retailers
Do not have galleries in all retailers

Q2 How do consumer buy?
94% enjoy shopping
Lack confidence about quality or evaluating price
95% get redecorating ideas from Mag.
84% believe higher price = higher quality
72% browse even when not buying
Rely on sales people for ideas but want to be left alone to shop •85% read ads before shopping
Difficult to select styles

Attributes
Styling/Design (1)
Brand Name/Image (5)
Price (4)
Construction Quality/workmanship (2)
Store Quality/Image (3)

Buying Decision
Joint decision
Difficult – guidance
Little Knowledge

Q3 What is the role of Marketing Communications
Consumer advertising
oinforms about styles, arrangements
oEmphasize Quality
oDevelops “share of mind”
Company Salespeople
oSell thru as much of line as possible
oSell-develop rapport
oTraining retail sales people – product quality %& feature oBuild enthusiasm w/ RSP
o100% sales time
Trade Advertising
oPoint of purchase – anything that goes on at the time of sale oBrochure take away
Cooperative Advertising
oGiven by the retailer...