Manchester Products Essay Example for Free

Manchester Products EssayManchester Home expanded household piece of furniture divisionby adding market place attraction PLFD Addition of 990 million in PLFD revenues Addition of established gross revenue force, talented design teams PLFDs Signature Style line very pop with consumers Ability to combine PL design skills with MH engineering and manufacturing Manufacturing expertise and ergonomic designs Concerns How to tie-in PLs bold designs with MHs conservative style Customer confusion all over new sucker chance on5CS OF THE ACQUISITIONCompany Companies strengths and weaknesses complement eachother5CS OF THE ACQUISITIONCustomers Target consumers ages 34-55 Income over $50K MH consumers are reason as conservative elegance PLFD consumers are more fashion-conscious, trend setters Will need a way to reach both customer segments Results from target consumer surveys starting time brand loyalty 60% would change brands High information search Style, design, quality, comfort m ost important qualities all covered by MH/PL PL has high brand awareness, almost double that of MH, will help to co-brand them to raise awareness for MH5CS OF THE ACQUISITIONCollaborators Manchester already has network of office distributionchannels, now they gain assenting to household distributionchannels through Paul Logan. PL sales force has strong ties to leading distributions channels PL strength in upscale furniture stores, military strength stores, department stores Strong relationship with buyers Concern over brand going away, necessary to create a smooth brand transition so consumers tiller the switch Push strategies important to build strong relationships with distribution network 90% of PL shipments include Purchase Allowances5CS OF THE ACQUISITIONCompetitors Paul Logan was market leader Household Furniture Industry$36.64 billion in 2004 positive % growth projectionsA mature industryLarge number of corporate consolidationsLow-cost imports from Asia/Mexico movin g into higher price levels Domestic companies ready to attack the vulnerability of the new brand and position We need strong advertise and marketing intermingle some competitors have company owned stores Crucial to leverage our distribution channels to gain market access5CS OF THE ACQUISITIONContext Office furniture sales growth tied to employmentgrowth and new business formation. Burst of dot.com bubble and recession havedecreased demand for office furniture Rise in teleworking could increase demand for stand office Demand for home furniture is tied to new homeconstruction and home sales. Innovative and stylish products to bolsterdemandMOVING FORWARDANALYSIS OF FUTURE BRANDING OPTIONS Drop the Paul Logan frame right away Losing their watercourse brand awareness Need to educate customers Strong distribution channel relationships could be damaged Keep using the Paul Logan name for the entire deal out three stratums Ad agency advises against this option, as they dont want to a llocate advertising dollars to a brand with a three year shelf life Transition mid-point Leverage the Paul Logan name to build strong brand awareness for Manchester Continue to use the PL name in subtext for 1.5 yrs. channelize consumer research to reevaluate after this time. Business recommendation to convert the name 100% to Manchester Home after 1.5 yrs.ANALYSIS OF FUTURE BRANDING OPTIONS Brand name transition First 6 months Manchester Home The New Home forPaul Logan Furniture Following year Manchester Home The Home for PaulLogan Furniture later 1.5 yrs. Conduct consumer research toreevaluate transition Business recommendation is to drop the Paul Logan name Want to ensure the Manchester Home brand has achieved a capable awareness before removing PLOUR FUTUREADVERTISING STRATEGIESStrong campaign is critical to the success of the new brand name $184 million allotted for 2005 Includes national and co-op advertising for both PLFD and MH productsPush vs. Pull MH to allocate more $ towards Push advertising Heavy Push Pull the first 1.5 yrs. Marketing Communications mix to form long-term company imagePromotional Programs Purchase allowances Recommend amending the planned 2005 marketing expenditures to allow for purchase allowances.Currently based on % of sales Due to brand transition, allocate a fixed amount to advertising to ensure the levels do not dropRECOMMENDATIONS Continue to use the Paul Logan name to leveragebrand awareness and channel partnerships Focus strongly on both Push and Pull strategiesthe first 1.5 yrs. to communicate the acquisition Amend proposed 2005 advertising plan to incorporatemore Push strategies, specifically Purchase Allowancesthat contributed to the success of the PL distributionnetwork After 1.5 yrs., the business goal is to transitionbrand formally to Manchester HomeQUESTIONS?