Manchester Products Essay

Manchester Home expanded household furniture portionby adding market leader PLFD increment of 990 cardinal in PLFD revenues Addition of established gross revenue force, talented design teams PLFDs Signature zeal line very popular with consumers Ability to combine PL design skills with MH technology and manufacturing Manufacturing expertise and ergonomic designs Concerns How to tie-in PLs bold designs with MHs traditionalist style Customer confusion over new grease establish5CS OF THE ACQUISITIONCompany Companies strengths and weaknesses complement eachother5CS OF THE ACQUISITIONCustomers Target consumers ages 34-55 Income over $50K MH consumers are categorized as materialistic elegance PLFD consumers are more fashion-conscious, trend setters Will need a way to reach some(prenominal) customer segments Results from target consumer surveys Low grass loyalty 60% would change mugs High information search Style, design, quality, cherish most important qualities all cove red by MH/PL PL has high stigma awareness, almost double that of MH, will help to co- blot them to raise awareness for MH5CS OF THE ACQUISITIONCollaborators Manchester already has network of sanction distributionchannels, now they shape up access to household distributionchannels through capital of Minnesota Logan. PL sales force has strong ties to leading distributions channels PL strength in upscale furniture stores, specialty stores, department stores surd relationship with buyers Concern over brand name going away, necessary to create a smooth brand transition so consumers make the switch Push strategies important to mannequin strong relationships with distribution network 90% of PL shipments include Purchase Allowances5CS OF THE ACQUISITIONCompetitors Paul Logan was market leader Household furniture manufacturing$36.64 billion in 2004 positive % growth projectionsA mature exertionLarge number of corporate consolidationsLow-cost imports from Asia/Mexico moving into hig her charge levels Domestic companies ready to attack the vulnerability of the new brand and perplex We need strong publicizing and marketing mix Many competitors boast participation owned stores Crucial to leverage our distribution channels to do good market access5CS OF THE ACQUISITIONContext Office furniture sales growth tied to employmentgrowth and new melody formation. Burst of dot.com bubble and recession havedecreased demand for office furniture Rise in teleworking could increase demand for pedestal office Demand for rest home furniture is tied to new homeconstruction and home sales. Innovative and stylish products to bolsterdemand piteous FORWARDANALYSIS OF FUTURE BRANDING OPTIONS Drop the Paul Logan nominate right away Losing their current brand awareness Need to develop customers Strong distribution channel relationships could be damaged Keep apply the Paul Logan evoke for the entire allotted three years Ad agency advises against this option, as they dont want to allocate advertizement dollars to a brand with a three year shelf biography 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. conduct consumer seek to reevaluate after this time. Business good word to convert the name ampere-second% 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 After 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 asufficient awareness before removing PLOUR FUTUREADVERTISING STRATEGIESStrong campaign is critical to the mastery of the new brand name $184 million allotted for 2005 Includes national and cooperative advertising for both PLFD and MH productsPush vs. back off MH to allocate more $ towards Push advertising Heavy Push & cast the first 1.5 yrs. Marketing & Communications mix to form long-term company imagePromotional Programs Purchase spareances 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 officially to Manchester HomeQUESTIONS?