Haverwood Concise Outline

Haverwood Furniture, Inc.

I. Summary of Facts

A. Market – Furniture Industry

1. Target customer

a. Baby boomers (40-59)

b. 47% of all U.S households

c. Disposable income over $100,000

2. Industry

a. Total furniture industry sales in 2007 –estimated $31 billion at manufactures prices

b. Wood furniture manufactures dollar sales grew by 2.5% in 2007

c. Dollar sales forecasted to increase by 4% in 2008

3. Economic market- Monopolistic

a. Artifacts – Oligopoly with Monopoly overtones

b. Replicas – Monopolistic Competition

B. Product

1. Haverwood Furniture

a. Upholstered (50%)

b. Wood (40%)

c. Ready to assemble furniture (10%)

d. Casual furniture

2. Benefits

a. Core: Home furnishing

b. Quality furniture and long lasting products

c. Status

d. Aesthetic home appeal

3. PLC- Maturity

C. Price

1. Medium to higher priced products

2. Sales forecasted to increase 4% in 2008

3. Before tax Profit in 2007 is about 3.7 million

4. Allocated $3,675,000 total promotional expenditures for 2007

5. Total industry sales in 2007 were estimated to be 31 billion

6. Dollar sales grew by 2.5 percent in 2007

7. Proposed advertising to be increased by $225,000 in 2008

8. Elasticity- relatively elastic to relatively inelastic

D. Promotion

1. Participates in two trade shows a year

2. Consumer advertising (magazines)

3. Trade promotion ( brochures, point of sale, technical booklets and has 2 trade shows per year)

4. Cooperative advertising programs (newspapers, television and radio)

4. Expansibility- Highly expandable

E. Place

1. High- quality department stores

2. Independent furniture specialty store

3. Not in chain stores or discount outlets

4. Mass- merchandise stores in U.S

5. Channel: Manufacture, Agents, Retailer, Consumer/user

F. Other

1. Competition

a. 1000 manufactures in U.S

b. 10 manufactures represent 1/3 of entre furniture industry dollar sales

c. Top 25 manufactures account for over half of U.S furniture sales

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