1.How would you characterize the household wood furniture industry?
I would characterize the wood furniture industry to be a very complex competitive relationship based industry. This industry has many different segments that form as a whole. A few of these segments are suppliers, producers, and raw material manufactures. A great deal of the raw materials are imported from different countries in order to keep constant on quality and cost. This industry is had to penetrate being that a lot of the competition has been in business for many years. This give them a competitive edge being that this market can be cyclical like many others. The furniture industry is affected by different economic conditions which may directly impact a consumer’s purchasing power. A few furniture companies have decided to outsource different process in order to be cost effective.
2. What is Haverwood’s relative position in this industry?
Haverwoods position in the industry is reflected in the product it produces. It is a mid to high price furniture manufacture. Its sales are good with a least six percent of market share. The growth of the company is expanding with the addition of Lea-meadows and most likely many others as the market seems to get more competitive. They have 1,000 specialty styles that gives versatility amongst a wide array of different consumers. They are positioned well in this industry.
3. How do consumers buy furniture? Describe the process from need recognition to purchase.
Many consumers buy furniture from a wide variety of choice whether they impulse buy or see an idea in a magazine. Most individuals just enjoy shopping. Many believe that a higher price is equivalent to a higher quality.
4.What is the purpose and role of advertising, promotion, and personal selling in the household furniture industry?
The purpose of advertising gives the consumer information on the products that the company offer. It may give ideas to the consumer who will eventually purchase. When a firm promotes it allows the consumer to understand and recognize the quality of product that is being offered. Sales people are often the first contact a consumer may have to the firm allowing them to feel as though the experience is worthy of their money. Sales people develop a rapport with the consumers which may allow for repeat business and referrals which contributes to the bottom line of increasing sales.
5.What should be the objective(s) for Haverwood’s communication program in 2008? Please provide rationale for your response. I think the objective is to market all the lines that are available and control their advertising budget. The many lines will contribute to more product being seen and available to the consumer. This will give them many more options to decide from. If they control the ad budget then they can control the amount of money being spent in areas that may not be as noticed by the consumers with in the market. The more galleries will allow more exposure to the general public.