Janmar Article

Market Qualifications


100, 000 niche furniture and home furnishing stores, department shops, and mass-merchandise stores in the usa Furniture product sales to stores is focus on manufacturer's expositions Manufacturers spend approximately three or more. 5% of annual revenue for advertising of most types Cooperative advertising: expense shared simply by retailers; newspapers, television, car radio Trade marketing: directed toward suppliers; brochures, point-of-purchase materials, technical booklets Customer advertising: refuge magazines

Real wood Furniture Industry – Customer Behavior

Remarkably cyclical

Client spending linked to:

Incidence of recent housing starts off

Consumer confidence

Disposable personal income

Consumer wants:

Even more confidence in purchase decision (help to judge construction, quality, and price) Narrow number of styles

Good return plan

Moderate degree of interaction with salesperson – helpful and knowledgeable however, not pushy Customer tendencies:

Associate high price with high quality

Obtain redecorating ideas or advice from publications

Read home furniture ads before needing home furniture

Enjoy ordering furniture to some degree or very much

Haverwood Pieces of furniture, Inc. Backdrop

Wood pieces of furniture manufacturer

Medium- to high-priced items

Room, living area, and living area furniture

Financial standing

08 contribution perimeter will be twenty percent

Company goal of five per cent net revenue margin prior to taxes

Organization policy of spending ≤5% of predicted sales for total campaign expenditures Season


Just before Tax Profit

Promotional Costs (≤5% of sales)

3 years ago

$75, 1000, 000

$3, 700, 1000

$3, 675, 000

08 (projected)

$78, 000, 000

$3, 900, 000

$3, 900, 000


1, 000 premium quality department stores and independent pieces of furniture specialty retailers 10 full-time sales people; two regional sales managers

Dedicated to the company

Inspire retail sales-personnel to sell Haverwood line

Aid in setting up in-store displays

Offer advice to retailers and their salespeople over a variety of matters related to the Haverwood manufacturer Market Share

Marketplace Definition

Household furniture Dollar Sales

Haverwood Pieces of furniture Sales

Market Share

Total U. S. Pieces of furniture Market

$31 billion

$75 million

zero. 24%

U. S. Furniture Sold at Specialised Furniture and Home Decorating Stores $21. 08 billion

$75 mil

0. 35%

U. S i9000. Wood Home furniture Market

$12. 4 billion

$75 mil

0. 60 per cent

Haverwood Household furniture, Inc. SWOT Analysis





Break-even Analysis

Alternative 1

Choice 2

Option 3

Difficulty: The amount of money to be allocated to the promotion budget, and exactly how those cash should be allotted within the finances. Option one particular: Increase marketing expenditures by simply $225, 1000, all in consumer promoting program to get ads in a number of shelter journals Increase direct exposure

Convey quality and hair styling story to consumers

Increase brand consciousness

Enhance business image

Supportive advertising and trade advertising allowances stay at 3 years ago levels 2008 Promotional Expenses ($3. 975M)

Sales expenditure and government – maximize $75, 000 ($1, 070, 500) Cooperative advertising allocation – zero change ($1, 650, 000) Trade marketing – not any change ($467, 000)

Client advertising – increase $225, 000 ($787, 500)

Choice 2: Added sales rep to company accounts (50 new accounts being added) Sales expenditures and administration costs were expected to climb by $65, 000 in 2008 Keep level of consumer (retailer) services that has built Haverwood effective in the past Cost of additional sales rep: $70, 000 in 08

2008 Marketing Expenditures ($3. 975M)

Sales expense and administration

Supportive advertising allowance

Trade advertising and marketing

Consumer promoting

Option three or more: don't change?

Industry Market

Household furniture industry (2007 $31B)

Upholstered (50%)

Wood (40% $12. 4B)


Dining tables

Dining room bedrooms

2007 industry sales grew 2 . 5% ($12. 098B � $12. 4B)

2008 industry...

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