Case 3 Haverwood Furniture
Haverwood Furniture, Inc
I. Summary of Facts
A. Market – Furniture Industry
1. Customers
a. Retailers
b. Older crowd 45-65 year old
c. Public crowd
2. Purchasing Furniture
a. Consumers
b. Price
c. Promotion
d. Looks
3. Economic market – Monopolistic Competition
B. Product
1. Haverwood Furniture
a. Furniture that’s easy to assemble
b. Wood tables
c. Everyday furniture
d. Different types of styles
2. Benefits
a. Priced aggressive to show that furniture is good quality
b. Product looks distinct and unique
c. Built to last
d. Styled for every type of customer
3. PLC- Growth (market is growing)
C. Price
1. Product is pricing mid-range to high priced (Premium).
2. Sales in 2007 $75 Million
3. 2008 Sales expense and admin cost $65,000-$70,000
4. Total promotion expense: $3.6 Million
5. Industry sales $31 Billion
6. Elasticity- Relatively Elastic
D. Promotion
1. Spread the word by running ad in local paper
2. Consignment ads
3. Magazines
4. Model furniture at trade shows
5. Television ads
6. Radio
E. Place
1. Department Stores
2. Retail stores
3. Consignment Stores
4. Channel:
1. Being able to determine the quality of the products
2. Wood manufactures
3. Varnishes
4. Assembly teams
F. Other
1.
a. This industry can focus on driving profits because of the margins being so high.
b. Can find unique ways to set themselves apart from the completion’s such as looking for new wood options.
c. Find new ways for future customers to purchase the products.
II. Problem/Opportunity
A. Primary – The Company is looking for ways to create a new budget for upcoming business.
B. Secondary- Looking to reach out to potential customers. Also finding ways to use different alternatives for wood. Possibly outsource things to cut cost. Determining the labor you currently have and see if you can cut there. Market products globally on the internet.
III. Recommended Action
A. Primary – Do not accept the new budget that was being proposed.
B. Secondary
1. Developing a
I. Summary of Facts
A. Market – Furniture Industry
1. Customers
a. Retailers
b. Older crowd 45-65 year old
c. Public crowd
2. Purchasing Furniture
a. Consumers
b. Price
c. Promotion
d. Looks
3. Economic market – Monopolistic Competition
B. Product
1. Haverwood Furniture
a. Furniture that’s easy to assemble
b. Wood tables
c. Everyday furniture
d. Different types of styles
2. Benefits
a. Priced aggressive to show that furniture is good quality
b. Product looks distinct and unique
c. Built to last
d. Styled for every type of customer
3. PLC- Growth (market is growing)
C. Price
1. Product is pricing mid-range to high priced (Premium).
2. Sales in 2007 $75 Million
3. 2008 Sales expense and admin cost $65,000-$70,000
4. Total promotion expense: $3.6 Million
5. Industry sales $31 Billion
6. Elasticity- Relatively Elastic
D. Promotion
1. Spread the word by running ad in local paper
2. Consignment ads
3. Magazines
4. Model furniture at trade shows
5. Television ads
6. Radio
E. Place
1. Department Stores
2. Retail stores
3. Consignment Stores
4. Channel:
1. Being able to determine the quality of the products
2. Wood manufactures
3. Varnishes
4. Assembly teams
F. Other
1.
a. This industry can focus on driving profits because of the margins being so high.
b. Can find unique ways to set themselves apart from the completion’s such as looking for new wood options.
c. Find new ways for future customers to purchase the products.
II. Problem/Opportunity
A. Primary – The Company is looking for ways to create a new budget for upcoming business.
B. Secondary- Looking to reach out to potential customers. Also finding ways to use different alternatives for wood. Possibly outsource things to cut cost. Determining the labor you currently have and see if you can cut there. Market products globally on the internet.
III. Recommended Action
A. Primary – Do not accept the new budget that was being proposed.
B. Secondary
1. Developing a