BatesManor sells its furniture to independent furniture stores and high quality department stores nationwide; it's very selective in choosing retail outlets. BatesManor had 10 full-time salespeople and 2 sales managers for fiscal year And sales personnel receive his salary and commission on the base of the sales. Bates believes that the company has been successful because they have employees who are committed to the company and they are not only taking the order but motivate the retail sales people and suggesting them about displaying the furniture in the store.
First, it must be determined how much should be budgeted for overall promotion. Second, it must then be determined exactly how the promotion funds should be allocated. Specifically, these two issues are the most important problems stated in the case because all the details directly or indirectly support this problem statement, and the various deciding parties have not yet come to a consensus regarding this issue.
BatesManor will not consider selling to retail chains. This industry is broken down into 3 categories, these are upholstered, wood, and other.
This market is growing with documented sales growth of 2. Specifically from a company standpoint, BatesManor manufactures medium to high priced wood bedroom, living room, and dining room furniture. Based off Exhibit 4 in the case, this range covers the 3 age groups that spend a considerable amount on annual furniture expenditures.
Typically, furniture sales are cyclical and related to new housing starts, consumer confidence, and disposable personal income. The type of household that meets these 2 specifications is at the perfect age and wealth level to replace their old furniture with high quality, long lasting pieces.
They are also impacted less by the typical cyclical nature of the furniture industry due to their accumulated wealth. This explains why the target customer would purchase BatesManor quality furniture. That's where our customers get ideas and buy the quality furniture we sell" Building off of this, where the target customer buys their furniture and how they get their ideas is extremely important.
Based off exhibit 5 in the case, the largest percentage of people in the target demographic get their ideas from gallery stores Figure This provides all the incentive needed to convince BatesManor to not only increase their presence in gallery stores, but also to increase their offerings within these stores.
Currently, BM sells its furniture though 1, department stores and independent furniture specialty stores. However, all stores do not carry the company's entire line so this is certainly an opportunity for BM. Based on the fact that they have a company sales force, which is atypical in this industry, BM is positioned well to increase their presence within gallery stores.
Dealing with organizational capacity, BatesManor has an internal strength by having their own sales force as opposed to independent reps. Trained, knowledgeable people who aren't surviving on commission to feed their families are perfectly suited to advise and educate potential purchasers on the benefits of quality BatesManor furniture in a relaxed, no pressure atmosphere.
Figure 12 also shows the need for education on furniture amongst potential consumers. Therefore, BatesManor needs to capitalize on their well-trained sales force and expand their presence in gallery stores. Now, BM's advertising strategy needs to be aligned more appropriately with these findings.
As far as their communication mix budgeting, a "percentage-of-sales approach" has been adopted by BM. The company cannot yet adopt an "objective-task approach" since it is currently difficult to apply. However, with improved monitoring and controlling, this may be a possibility when budgeting comes around.
With a lower CM this year, the "all available funds" approach was not considered. A typical pulse strategy is to be employed; therefore BM will periodically concentrate its advertising but will also attempt to maintain some sense of continuity that is neglected by a blitz strategy.
From a "push" perspective, BM can educate retail salespeople and gain space to exhibit their full line. From a "pull" perspective, BM should continue improve brand awareness, brand knowledge, and image in line with what Hervey proposed.
When it comes to more appropriately aligning their budget with the corresponding sales benefit of those expenditures, it's a good idea to first evaluate the previous year's figures. Currently, figures show cooperative advertising accounted for Figure 7 However, monitoring and controlling measures are not currently in place to measure the benefit of such a high amount.
More information around this would be a "nice to have" to investigate the case further.
In the real world, you would document current procedures and then see if these are properly tracking to the company's goals and objectives. If not, new ones will need to be introduced to accomplish this.
Also, both the VP of Sales and the advertising agency are in agreement with the importance of increasing sales expenses and consumer advertising. Shelter magazines enable BatesManor to direct the proper communication to the proper individual at the proper time.
Trade advertising is important since retail buyers view manufacturers' lines and often make buying commitments for their stores. In response to this, a slight increase in trade advertising is proposed.
Promotional web sites were considered, but are on hold at this time until more marketing information is available.BatesManor Furniture is a manufacturer of high quality wood furniture, specializing in medium to high priced bedroom, living room and dining room pieces. Their furniture is sold through 1, high-quality department stores and independent furniture stores nationwide, but not all stores carry the company's entire line of furniture.
BatesManor sells medium-to high priced wood for bedroom, living room and dining room furniture. The company had net sales of $75m in and a before tax profit of $m. The industry sales of wood furniture in were $b and are projected to .
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Only at caninariojana.com". Palliser Furniture Upholstery Ltd (Palliser), located in Winnipeg is the largest furniture manufacturer in Canada with facilities in Canada and Mexico. These centrally and strategically located plants allow Palliser to provide prompt, cost efficient service and delivery to its customers.
In order to. This is a negative for BatesManor because they sell through independent furniture specialty stores and these stores have declined. However, the decision to only distribute to independently owned furniture stores demonstrates the high quality of their.
BatesManor Furniture is a manufacturer of high quality wood furniture, specializing in medium to high priced bedroom, living room and dining room pieces. Their furniture is sold through high-quality department stores and independent furniture subspecialty stores nationwide, but not all stores carry the company’s entire line of furniture.