About Manchester Products

個案：Manchester Products: A Brand Transition Challenge (編號4043)

Student preparations before class-Manchester

1. How would you characterize the household furniture industry?

2. Please outline the sales (past 3 years) and the STP/4Ps for both two companies.

3. What are the benefits and risks associated with the acquisition of PLFD?

4. What are the marketing problems raised by the brand transition?

5. Which of the three brand transition options outline in the case (or a fourth one that you develop) should Adams recommend? And why?

6. Compare the marketing budgets for MH and PLFD (exhibits 5 and 6). What differences do you observe in the allocations of push vs. pull expenditures?

7. Do you agree with Adams’s 2005 budget estimates and allocation? Please comment and outline a new budget proposal of promotion plan (based on exhibits 5 and 6). Total budget can be the same or a new one. What recommendation would you make to Manchester management for a 2005 promotion plan? Please note that the logic of recommendation must be consistent with your brand transition option you recommend.

8. Calculate 2005 sales (MH+PLFD) needed to make up (maintaining the same profit) for the incremental marketing spend in 2005 ($298.2) vs. 2004($231.6). What sales are needed to maintaining the same profit if 2004 PLFD push expense allocation are maintained in 2005? What kind of strategies can be used by marketing people to convince top management to accept “the new budget is possible to achieve the new sales target? Please propose recommendation for above two options respectively.