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Haverwood Furniture

In: Business and Management

Submitted By jkrystos
Words 630
Pages 3
Jeremy Kris
Marketing Policy and Strategy
10/22/2013

Haverwood Furniture

The household wood furniture industry is healthy and growing. Total industry sales in 2007 were estimated to be $31 billion at manufactures prices. Three categories of furniture divide the industry. First upholstered furniture which makes up 50% of sales, Secondly wood furniture at 40% of the industry market share which has grown 2.5% in 2007 and is projected another 4% in 2008, this second category includes dining room and bedroom furniture. Third and last is the other category at 10% this includes ready to assemble and casual furniture. Haverwood has established themselves as a medium to high priced furniture company through 1,000 carefully selected high quality department stores which do not include chain stores. They have selected the baby boomers as a target market In 2007 year end net sales were $75 million profiting $3.7 million before taxes.

Haverwood is facing a decision presented by their ad agency Hervey and Bernham to increase the current ad expenditures by $225,000 through various consumer magazines ads. Magazines such as Better Homes and Gardens, House Beautiful, and Southern Living provide 95% of redecorating ideas for consumers according to a study done by Better Homes and Gardens, they do not provide enough incentive to push the consumers to purchase furniture. However, a study constructed by Better Homes and Garden magazine asked participants (449) to rank factors which influence a purchase by order of importance. Only 16.3% claimed that magazines were the most important while 62.8% said that family/spouses had the largest impact on the decision.
The target market for Haverwood is the 40- to 50- year old upscale homeowner with an annual income of at least $100,000. These consumers according to survey (77.5%) prefer a knowledgeable salesperson when factoring a

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