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Haverwood Furniture

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Adam Markulics

on 16 November 2016

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Transcript of Haverwood Furniture

Haverwood Furniture
The Company
The Industry
The Problem
Alternative 1
Alternative 2
Alternative 3
Adam Markulics, Jordan Delao, Max Forster
[ ]
[ ]
Middle- to high-quality wooden furniture.
1,000 department stores and independent sellers nationwide
10 employees and 2 regional managers
Upholstered, wood and other furniture
Estimated $31b in sales revenue (2007)
50% upholstered, 40% wood, 10% from other (ready-to-build/casual furniture)
Approximately 1,000 manufacturers
Top 25 own ~50% of sales
Asian imports driving prices down
Three general categories:

2007 Net Sales: $75 mill. (profit of $3.7 mill.)
Promotion Spending:
In-house sales force
2 Regional Managers
10 Full-time sales representatives
Offer full product line to affiliated stores
High competition
1,000 manufacturers in the U.S.
Small sales force
To accept the proposed increase in advertisement or not?
Invest on expanding sales force?
Lack of online presence
Criteria for Evaluating Alternatives
Ease/Time of Implementation
Cost/Return of Investment
Competitive Advantage Gained
New distribution channels
Offers Higher-Quality products
Understanding of their target market
Top 10 make up one-third of market
Haverwood accounts for <1%
Imports from Asia driving prices down
Small distribution share in comparison to industry gatekeepers
(Accept the proposed promotional budget expansion of $225K)
Ease of implementation - High
Cost/Return - $225K/
Competitive Advantage - Additional awareness of new styles in '08
(Allocate additional funds to sales force)
Ease of Implementation - Medium
Cost/Return - Cost: ~$135,000
Return: $12,000 leftover for other expenses
Competitive Advantage - Increased ability to manage new accounts
(Build a website)
Ease of Implementation - low
Cost/Return - ~$100,000 to develop & maintenance costs
Competitive Advantage - Easy access for customers; real time inventory information
Expand sales force
Develop online presence
(Better management of additional accounts)
(99% of respondents answered they like when there is a rep available to) inform.
(Acts as an online gallery)
Full transcript