Manchester Products

Manchester Products Case Questions

A. Current Situation

Evaluate the industry for household furniture.  Identify the benefits and risks to Manchester in acquiring PLDF?

• The household furniture market of United States is three times larger than office furniture market of the country, creating a massive opportunity for Manchester with the acquisition of PLFD.

• Household furniture: Huge market…. Numbers!

• Manchester can leverage manufacturing and production expertise to sell household furniture, and combined with PLFD’s design skills this will produce highly desirable products. But, Manchester lacks access to sufficient household fffurniture distribution channels.

• PLDF is number 1 and 2 in market share and brand recognition, with the Signature Style line being very popular with consumers.

• As indicated by the consumer studies, the companies’ strengths and vulnerabilities complement each other. Versus competitors, Manchester’s strength is making durable products with high-quality workmanship. PLFD’s products are easily found, attractive and good-looking products.

• The acquisition helps diversify Manchester’s product portfolio and helps minimize the risks associated with fluctuating office furniture sales due to unemployment, slowing business formation, and the increased ability of telecommuting.

• Risks: Customer confusion over brand name, seamlessly integrating PLFD bold designs and Manchester’s conservative style, marketing with sale force.

B. Marketing Problems

What are the marketing problems raised by the brand acquisition?

• The PL brand name has strong recognition power, but can only be used for 3 years, which can cause confusion for customers. The biggest problem raised by the brand acquisition is determining the optimal timing and brand transition strategy.

• To include channel selection, MH lacks a household furniture distribution network.

• Strategy should be to market home furniture with target...