Saturday, September 21, 2019
Manchester Products Essay Example for Free
Manchester Products Essay Manchester Home expanded household furniture division by adding market leader PLFD ââ¬â Addition of 990 million in PLFD revenues ââ¬â Addition of established sales force, talented design teams ââ¬â PLFDââ¬â¢s Signature Style line very popular with consumers â⬠¢ Ability to combine PL design skills with MH engineering and manufacturing ââ¬â Manufacturing expertise and ergonomic designs â⬠¢ Concerns ââ¬â How to tie-in PLââ¬â¢s bold designs with MHââ¬â¢s conservative style ââ¬â Customer confusion over new brand name 5Cââ¬â¢S OF THE ACQUISITION Company â⬠¢ Companiesââ¬â¢ strengths and weaknesses complement each other 5Cââ¬â¢S OF THE ACQUISITION Customers â⬠¢ Target consumers ages 34-55; Income over $50K ââ¬â MH consumers are categorized as conservative elegance ââ¬â PLFD consumers are more fashion-conscious, trend setters ââ¬â Will need a way to reach both customer segments â⬠¢ Results from target consumer surveys ââ¬â Low brand loyalty ââ¬â 60% would change brands ââ¬â High information search ââ¬â Style, design, quality, comfort most important qualities ââ¬â all covered by MH/PL ââ¬â PL has high brand awareness, almost double that of MH, will help to co-brand them to raise awareness for MH 5Cââ¬â¢S OF THE ACQUISITION Collaborators â⬠¢ Manchester already has network of office distribution channels, now they gain access to household distribution channels through Paul Logan. ââ¬â PL sales force has strong ties to leading distributions channels ââ¬â PL strength in upscale furniture stores, specialty stores, department stores â⬠¢ Strong relationship with buyers ââ¬â Concern over brand going away, necessary to create a smooth brand transition so consumers make the switch â⬠¢ Push strategies important to build strong relationships with distribution network ââ¬â 90% of PL shipments include Purchase Allowances 5Cââ¬â¢S OF THE ACQUISITION Competitors â⬠¢ Paul Logan was market leader â⬠¢ Household Furniture Industry $36.64 billion in 2004; positive % growth projections A mature industry Large number of corporate consolidations Low-cost imports from Asia/Mexico moving into higher price levels Domestic companies ready to attack the vulnerability of the new brand and position â⬠¢ We need strong advertising and marketing mix â⬠¢ Many competitors have company owned stores ââ¬â Crucial to leverage our distribution channels to gain market access 5Cââ¬â¢S OF THE ACQUISITION Context â⬠¢ Office furniture sales growth tied to employment growth and new business formation. ââ¬â Burst of dot.com bubble and recession have decreased demand for office furniture â⬠¢ Rise in ââ¬Ëteleworkingââ¬â¢ could increase demand for home office â⬠¢ Demand for home furniture is tied to new home construction and home sales. â⬠¢ Innovative and stylish products to bolster demand MOVING FORWARD ANALYSIS OF FUTURE BRANDING: OPTIONS â⬠¢ Drop the Paul Logan name right away ââ¬â Losing their current brand awareness ââ¬â Need to educate customers ââ¬â Strong distribution channel relationships could be damaged â⬠¢ Keep using the Paul Logan name for the entire allotted three years ââ¬â Ad agency advises against this option, as they donââ¬â¢t want to allocate advertising dollars to a brand with a three year shelf life â⬠¢ Transition mid-point ââ¬â Leverage the Paul Logan name to build strong brand awareness for Manchester ââ¬â Continue to use the PL name in subtext for 1.5 yrs.; conduct consumer research to reevaluate after this time. ââ¬â Business recommendation to convert the name 100% to Manchester Home after 1.5 yrs. ANALYSIS OF FUTURE BRANDING: OPTIONS â⬠¢ Brand name transition: ââ¬â First 6 months: Manchester Home: The New Home for Paul Logan Furniture ââ¬â Following year: Manchester Home: The Home for Paul Logan Furniture ââ¬â After 1.5 yrs.: Conduct consumer research to reevaluate transition â⬠¢ Business recommendation is to drop the Paul Logan name â⬠¢ Want to ensure the Manchester Home brand has achieved a sufficient awareness before removing PL OUR FUTURE ADVERTISING STRATEGIES â⬠¢ Strong campaign is critical to the success of the new brand name ââ¬â $184 million allotted for 2005 ââ¬â Includes national and cooperative advertising for both PLFD and MH products â⬠¢ Push vs. Pull ââ¬â MH to allocate more $ towards Push advertising ââ¬â Heavy Push Pull the first 1.5 yrs. ââ¬â Marketing Communications mix to form long-term company image â⬠¢ Promotional Programs ââ¬â Purchase allowances ââ¬â Recommend amending the planned 2005 marketing expenditures to allow for purchase allowances. â⬠¢ Currently based on % of sales ââ¬â Due to brand transition, allocate a fixed amount to advertising to ensure the levels do not drop RECOMMENDATIONS â⬠¢ Continue to use the Paul Logan name to leverage brand awareness and channel partnerships â⬠¢ Focus strongly on both Push and Pull strategies the first 1.5 yrs. to communicate the acquisition ââ¬â Amend proposed 2005 advertising plan to incorporate more Push strategies, specifically Purchase Allowances that contributed to the success of the PL distribution network â⬠¢ After 1.5 yrs., the business goal is to transition brand officially to Manchester Home QUESTIONS?
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