Manchester Products Essay

Manchester Home expanded household furniture departmentby adding market leader PLFD Addition of 990 million in PLFD revenues Addition of established sales force, dexterous envision teams PLFDs Signature Style line very popular 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 node confusion over new score establish5CS OF THE ACQUISITIONCompany Companies strengths and weaknesses complement all(prenominal)other5CS OF THE ACQUISITIONCustomers Target consumers ages 34-55 Income over $50K MH consumers are categorized as conservative civilization PLFD consumers are more fashion-conscious, trend setters Will need a way to reach both customer segments Results from target consumer surveys Low brand loyalty 60% would change brands High information search Style, design, quality, allayer most important qualities all covered by MH/ PL PL has high brand sentiency, 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, instantaneously they gain access to household distributionchannels through capital of Minnesota Logan. PL sales force has warm ties to leading distributions channels PL strength in upscale furniture stores, specialty stores, department stores Strong kindred with buyers Concern over brand going away, necessary to create a smooth brand conversion so consumers make the switch Push strategies important to build strong relationships with distribution network 90% of PL shipments include Purchase Allowances5CS OF THE ACQUISITIONCompetitors capital of Minnesota Logan was market leader Household Furniture attention$36.64 billion in 2004 positive % growth projectionsA mature industryLarge number of corporeal consolidationsLow-cost imports from Asia/Mexico moving into higher pric e levels Domestic companies ready to attack the vulnerability of the new brand and position We need strong advertising and marketing mix Many competitors have bon ton owned stores Crucial to leverage our distribution channels to gain market access5CS OF THE ACQUISITION context of use Office furniture sales growth tied to employmentgrowth and new business formation. break of dot.com bubble and recession havedecreased demand for office furniture Rise in telecommuting could increase demand for firm office Demand for home furniture is tied to new homeconstruction and home sales. Innovative and stylish products to bolsterdemandMOVING FORWARDANALYSIS OF in store(predicate) BRANDING OPTIONS Drop the Paul Logan conjure up right away Losing their current brand awareness impoverishment to educate customers Strong distribution channel relationships could be damaged Keep using the Paul Logan name for the entire deal three years Ad agency advises against this option, as they dont priva tion to allocate advertising dollars to a brand with a three year shelf life revolution 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. conduct consumer research to reevaluate after this time. Business recommendation to convert the name degree centigrade% to Manchester Home after 1.5 yrs.ANALYSIS OF succeeding(a) 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 After 1.5 yrs. Conduct consumer research toreevaluate transition Business recommendation is to drop the Paul Logan name Want to meet the Manchester Home brand has achieved asufficient 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 cooperative advertising for both PLFD and MH productsP ush 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 base 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 eruditeness 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 officially to Manchester HomeQUESTIONS?