AQUI is a marketing consultant firm specializing in creating strategies to assist businesses. Our task is to help your company by simply planning suited approaches to support brand move for Manchester Products.
Regarding the Manchester Products: A brandname Transition Challenge (Quelch, 2009), Manchester Product was a company, which offers premium office furniture. Likewise, the company is one of the leading business furniture brands in america because of their abilities in engineering and ergonomics that make you can actually products become popular in term of style and comfort.
Nevertheless , the research by company shows that 5% of their consumers intentionally bought office furniture products for home. Therefore , Manchester has chosen to enter home furniture15344 market together with the acquisition of Paul Logan’s Home furniture Davison (PLFD). Also, Paul Logan can be described as well-known brand for home household furniture due to its stylish and colorful style, which makes its products exceptional. In addition , the acquisition simply included a furniture section; however , Paul Logan continue to runs the apparel, fashion accessories, and residence decor categories.
Likewise, Paul Logan allows Stansted to use its brand name to get only a three-year period.
Strengths- Manchester has a solid reputation and brand image in the office household furniture market, when PLFD is recognized as a prime brand pertaining to household furniture. Consequently , the promiscuité of these two popular brands will allow the organization easily encourages its products. Likewise, the acquisition of PLFD will permit the company to expand 4-seasons catalog as well as gain market share from household furniture market. In addition , the business financial was stabled and expected to increase by thirty percent in 2006.
Weakness- the business is struggling with their division network mainly because office furnisher distribution did not interact with residence furnisher division network. Thus, the consumer may have difficulty to reach home furnishes products collection.
Opportunities- the economy started to retrieve after the economic downturn period, and it seems that the household furniture industry has been growing since 2002. Therefore , there is a potential for Stansted to enter the house furniture industry during this period.
Threats- the increasing number of imported furnishers from China and South america has endanger the United States furnisher industry since these regions have reduced labor expense, which make merchandise less expensive. As an example, over the past five years, the proportion of adding furnisher from China increases simply by 154%. If the low-cost imports trend coming from overseas still continues increasing, the United States furnisher industry might collapse down the road.
Synopsis from the current situation
The case, Manchester Products: Your brand Transition Obstacle, Quelch (2009), reports that Manchester can be facing the battle of brand transition as well as determining the advertising expenditure to aid the change of the brand. Paul Logan provides strong brand images, that enables Manchester to simply promote household products. Nevertheless , Manchester are able to use the Paul Logan manufacturer only for three year, thus after 3 years, the company has to change the brand and by time its may well struggle to rebrand itself. Consequently , the company need to make sure initially place that the consumer will not likely confuse or mislead with the two mentioned here brands.
On the other hand, the company should take advantage of Paul Logan brand image since consumer possess confident to acquire Paul Logan product mainly because in the sense that they will receive a high-style and top quality finisher. In addition, since the organization will use Paul Logan brand only for three year, hence company need to determine the marketing expenditure for Paul Logan simply by finding the right promoting strategy and promotion programs. Currently, Paul Logan primarily spends its marketing spending budget on press programs including volume rebates because the business believes that rebate system will lead to successful distribution network. Although, Manchester give attention to pull software such as nationwide adverting because advertisement will help company encourage the brand along with provoking of sales.
Discover Key Advertising concepts
Customer brand roles- brands can give the knowledge regarding the product for the consumer. Once consumers has experienced the item and its satisfied their need. Also, when consumer currently have knowledge about the manufacturer this will generate they think more comfortable for purchase. Order decision as well became significantly less. Paul Logan is already a well known brand pertaining to household furnisher, and consumers have their item experience and knowledge about the brand name. Thus, for purchase, the buyer will have self confidence to buy the item because they will has their knowledge in the brand and feeling they will receive quality piece. Yet , if Stansted considers rebrand itself, it could take time for client to learn about the brand as well purchase decision is more longer than purchasing the branded types.
Company brand roles- to protect the brand, the company should be able to maintain the feature of the product, just like design, likewise the brand will help company-categorizing merchandise. For instance, Stansted is known as your workplace furnisher and consumer could be confused in the event that Manchester utilized the same brand name for household furnisher product line. Thus, the Paul Logan brand provides a stronger identity for household furnishers, but it will surely also help consumers not really be confused about the brand.
Rival brand roles- the rival of the market-leading brand has focused to be competitive by building merchandise to target with the market head. For example , Countrywide Furniture Company, which is Paul Logan’s rival in terms of price point, realize that Stansted and Paul Logan will certainly merge that brand. National takes advantage of the uncertainly relationship by announcing price reduction.