Essay about Manchester Products

1131 WordsNov 15, 20135 Pages
Manchester Products: A Brand Transition Challenge Case Q&A 1. HOW WOULD YOU CHARACTERIZE THE HOUSEHOLD FURNITURE INDUSTRY? In 2004, the Household Furniture Industry’s annual growth was 4%, it was a $36.4 billion industry. There a many competitors within the industry because of low cost imports from Asia and Mexico. The household furniture industry is also closely tied with the economy. After the housing boom in the early 2000’s, companies needed to focus on a more innovate and stylist product to get consumers attentions. Household furniture products are classified as wood (48%), upholstered (34%), and metal/other (18%). They are then segmented by price and quality. In a survey, Consumers rated that they are more concerned…show more content…
They have two different styles of furniture. Manchester offers conservative, functional designs, where as PLFD offer bold styles and fashionable colors, which would definitely be two different target markets. Another risk is that Manchester can only use the Paul Logan name for 3 years. It is important that they use this name to their benefit because of the brand equity, but they also want their customers to be aware of their Manchester brand because that will ultimately be the brand name. Also a major risk is that competitors such as National Furniture are looking for an opportunity to capitalize on the acquisition and steel some of PLFD’s business. Once the acquisition is complete, MH needs to make sure that they come up with a strong marketing strategy so that they do not lose loyal or potential customers. 3.4.What are the marketing problems raised in the brand transition? Which of the three brand transition options outlined in the case should Adams recommend? The major problems in this case are, the 2 different styles of furniture that MH and PLFD offer, target two different types of consumers, and how to transition from the Paul Logan name to Manchester name. Both MH and PLFD target customers in the Middle to Upper Price points, but their customers have 2 different styles. MH is conservative and PLFD is highly stylish. The
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