Case- Haverwood Furniture, Inc. (A)
• While you can use your understanding of the furniture industry and role of the sales force and push strategy from Haverwood (B), remember that the Lea-Meadows acquisition takes place after this case. We are only dealing with Haverwood itself.
• Also remember that Haverwood sells to retailers only. It does not own retail stores, nor do its salespeople sell to the furniture-buying consumer. The sales force interacts with the retail buyers only, providing them the training and materials to sell the Haverwood brand to their store's customers.
• This case presents a fairly obvious "issue," but again, dig deeper to understand the strategic issues underlying the promotional recommendations presented in the case.
• Think about how the first four steps of the communications strategy framework apply to Haverwood:
1. What are the information requirements of the furniture buyer? How do they buy? What factors are important? How do the elements of the purchase process model (awareness, consideration, preference, purchase) apply?
2. What are/should be Haverwood's communication objectives, especially as they look at overall goals (including product and distribution changes) for 2008? Consider their position in the industry, the consumer buying process, and what they want to achieve.
3. How does/should Haverwood use the various elements of the communications mix, given their objectives?Consider the role of push vs. pull strategies for Haverwood, the role of each of the communications mix elements in the furniture buying process, and the implications for Haverwood's promotional strategy.
4. How much should be budgeted across which elements of the communications mix to accomplish Haverwood's communications objectives? How should these budget allocations be determined?
• Your analytics in this case should focus on the fourth step above. Think about the various budget methods discussed in class and in your text (pp. 289-290) and if/how you should apply them given Haverwood's situation, communication objectives, promotional mix elements used, etc. As you look at your alternatives, develop the appropriate budget/expenditure numbers as part of your analysis. Include the dollar impact of various promotional options (including those of Hervey and Bernham and John Bott), along with industry comparisons. What are the implications of these for Haverwood and its goals?
• Note that while you can consider Herveyand Bernham's and Bott's recommendations, as well as the 5% percentage-of-sales limit that Bates brought up, do not feel that you must follow or be limited by these. Remember that your recommendation should be the plan you feel will most help Haverwood address its issue.