Introduction: Haverwood Furniture, a medium-to high-priced manufacturer of wood furniture for bedrooms, living, and dining rooms, has just acquired Lea-Meadows, Inc. Lea-Meadows is a manufacturer of upholstered living and family room furniture. A decision now needs to be made concerning the selling approach. Haverwood has 3 options:
Give the upholstery line of chairs and sofas to the current sales force.
Continue to use Lea-Meadows sales agents.
Merge the sales representatives together.
Using Haverwood Sales Representatives
Current sales force is well-known and respected in the furniture industry.
Salespeople have a high knowledge of Haverwood’s wood furniture.
Lea-Meadows would only require an…show more content…
There is the risk that, even after training, the current salespeople will not have a good enough grasp of the new upholstered furniture line.
Reconstruction of sales territories would take time and may frustrate current salespeople who have already established relationships with clients in those areas.
Using Lea-Meadows Sales Agents
All sales agents already have established contacts and are highly regarded by store buyers. Fully committed to Lea-Meadows furniture lines and already have the necessary product knowledge.
Lea-Meadows agents call on territories and stores that Haverwood has not yet reached.
Unprofessional if representatives from both Lea-Meadows and Haverwood were to call the same accounts.
Lack of fluidity if two different groups are doing the same jobs.
To use Lea-Meadows’ already established relationships to bring new customers to Haverwood.
Potential loss of commissions.
Laying off Martin Moorman could create hostility among workers.
The separation between the companies may be too deeply rooted, the “us and them” outlook may never change.
Alternative 1: Use only Haverwood Sales Representatives, hire more representatives and train them in the upholstered furniture market as well as current market of wood furniture.
Alternative 2: Use Haverwood Sales Representatives and Sales Agents already in place by Lea-Meadows.
Alternative 3: Use only Sales Agents;