Batesmanor Furniture
Introduction
BatesManor Furniture is a relatively small manufacturer of middle to high-end wood furniture for the bedroom, living room, and dining room. The manufacturer has been around for over 100 years and is still a family owned and operated business. BatesManor sells its furniture through many high-end department stores as well as independently owned specialty stores across the country. The company currently has 10 salesman and two sales managers. During the last year, they have had a net profit of 3.7 million dollars. BatesManor does not currently sell to any chain stores or discount stores in order to maintain its image of high quality furniture.
Key Problems
BatesManor would like to continue to receive steady growth in sales and profit in the upcoming years.
They would like to have an effective advertising strategy that will prove successful in the current competitive and economic climate for the industry, which expects a modest 4.percent growth in 2008.
BatesManor would not like to spend more than 5% of total sales on advertising and promotion. The industry average spent is 3.5% of total sales.
They would like to set up a budget that would achieve a 5 percent net profit margin while maintaining the rising costs of sales and administration.
BatesManor will be adding 50 new accounts and need to decide whether or not they will add another employee to handle these new accounts.
SWOT analysis
Strengths
BatesManor’s salespeople are highly regarded in the industry and have an advantage in developing relationships with retailers in receiving ample floor space in their stores.
BatesManor has maintained a high reputation over the past century of producing mid to high-end furniture. They have a positive history and still make their furniture in the country.
BatesManor has maintained a profit throughout the past years, despite having practices that do not align with the competition.
Weaknesses
BatesManor Furniture is a relatively small manufacturer of middle to high-end wood furniture for the bedroom, living room, and dining room. The manufacturer has been around for over 100 years and is still a family owned and operated business. BatesManor sells its furniture through many high-end department stores as well as independently owned specialty stores across the country. The company currently has 10 salesman and two sales managers. During the last year, they have had a net profit of 3.7 million dollars. BatesManor does not currently sell to any chain stores or discount stores in order to maintain its image of high quality furniture.
Key Problems
BatesManor would like to continue to receive steady growth in sales and profit in the upcoming years.
They would like to have an effective advertising strategy that will prove successful in the current competitive and economic climate for the industry, which expects a modest 4.percent growth in 2008.
BatesManor would not like to spend more than 5% of total sales on advertising and promotion. The industry average spent is 3.5% of total sales.
They would like to set up a budget that would achieve a 5 percent net profit margin while maintaining the rising costs of sales and administration.
BatesManor will be adding 50 new accounts and need to decide whether or not they will add another employee to handle these new accounts.
SWOT analysis
Strengths
BatesManor’s salespeople are highly regarded in the industry and have an advantage in developing relationships with retailers in receiving ample floor space in their stores.
BatesManor has maintained a high reputation over the past century of producing mid to high-end furniture. They have a positive history and still make their furniture in the country.
BatesManor has maintained a profit throughout the past years, despite having practices that do not align with the competition.
Weaknesses