Submitted by: Submitted by xmelishx
Views: 141
Words: 472
Pages: 2
Category: Business and Industry
Date Submitted: 10/27/2014 10:30 AM
Haverwood Furniture, Inc. (A)
Summary of Facts
A. Market – Wood Furniture
1. Segments
a. 40-59 year old homeowners
b. Those with annual income over $100,000
2. Industry
a. Total furniture industry sales in 2007 – estimated $ 31 billion at manufacturers prices
b. Wood furniture manufacturers’ dollar sales grew by 2.5% in 2007
c. Dollar sales forecasted to increase by 4% in 2008
3. Economic market
a. Monopolistic Competition
Product
1. Furniture
a. Upholstered (50%)
b. Wood (40%)
c. Other (10%)
2. Benefits
a. Core: Home furnishing
b. Quality furniture
c. Status
d. Aesthetic home appeal
3. PLC
a. Furniture – Maturity
Price
1. Allocated $3,675,000 for total promotional expenditures for 2007
2. Cooperative advertising allowances are matched by funds provided by retailers on a dollar-for-dollar basis
3. 3.5% of annual net sales are spent for advertising
4. Proposed budgeting meeting calls for consumer advertising to be increased by $225,000 in 2008
5. Elasticity
a. Furniture – relatively elastic to relatively inelastic
Promotion
1. Participates in two trade shows a year
2. Featured on shelter magazines
3. Newspaper advertising in given city
4. Point of purchase materials
5. Booklets
6. Trade magazines
7. Expansibility
a. Furniture – expansible
Place
1. High-quality department stores
2. Independent specialty stores
3. Channel: manufacturers (Haverwood) – (agents) – retailers – consumers/users
F. Other
1. Internet
a. Small manufacturers consider up-front cost to build a website coupled with the ongoing cost to maintain a furniture website to be prohibitive
b. Cost of delivering and...