Haverwood Furniture

In: Business and Management

Submitted By ktaras1
Words 476
Pages 2
Page 1 of 2
Haverwood Furniture, Inc.
I. Summary of Facts
A. Market - Furniture Industry
1. Types of customers a. Buying public b. Baby boomers
c. Retailers
2. Factors of furniture buying a. Incidence in new housing starts b. Consumer confidence
c. Disposable personal income
3. Behaviors/trends of furniture buying
a. Customers lack confidence
b. Commitment towards a style
c. Price concerns
4. Economic market
a. Monopolistic Competition
b. Many sellers with a range of prices, styles, and services B. Product
1. Haverwood Furniture
a. Upholstered
b. Wood (Tables, dressers, and dining room suites)
c. Ready-to- assemble products
d. Casual furniture
2. Benefits
a. Core - Home furnishing/styling products
b. High quality/long-lasting products
c. Medium/high priced products
3. PLC
a. Growth stage
b. The company has peaking profits, many competitors, and intensive distribution to high quality stores and customers.
C. Price
1. Medium to higher priced products
2. Record $75 million in sales for 2007
3. Proposal of $225,000 for advertising in 2008
4. Sales expenses and administration costs were rising to $65,000-$70,000 in 2008
5. In 2007, allocated costs were $3,675,000 for total promotional expenditures
6. Total industry sales were $31 billion for 2007
7. Elasticity
a. Relatively elastic
b. Customers purchase lowest price and favorable style
D. Promotion
1. Consumer advertising (Appear in shelter magazines)
2. Trade advertising (Appear in brochures, point-of- sale, technical booklets, and have 2 trade shows per year)

Page 2 of 2
3. Cooperative advertising (Appear in newspapers, some television and radio spots)
4. Expansibility
a. Highly expandable
b. Sales are affected by the industry, the economy and consumer…...

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