Manchester Products
Brand Transition Strategy
Britt Miller and Rebecca Orsher
EXECUTIVE SUMMARY
• Background: Acquisition of Paul Logan Home Furniture
Division
– Add strengths of design, brand awareness, market leadership, distribution channels
• Problem: Design a brand transition strategy to transfer Paul
Logan brand to Manchester Home
• Analysis: 5 “Cs”
• Recommendation: Gradual transition first linking Paul Logan to the Manchester name to build brand awareness then phasing out Paul Logan once target brand awareness has been reached as measured by another target consumer survey
– Utilize both push and pull marketing strategies to drive distribution channels and consumers
ACQUISITION
BACKGROUND & OVERVIEW
MANCHESTER
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Leading manufacturer of premium office furniture
Revenues $2.33 billion in 2004
Home lines currently include
Recliner, Home office,
Media/Entertainment furniture
Home sales expected to grow 30% in 2005, from $260 million
Want to leverage manufacturing expertise and production capacity into household furniture
Goal: To provide a complete family of household furniture products in the mid- to upper-price points.
PAUL LOGAN
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Furniture Division revenues $990 million in in 2004
Number 1-2 in market share and brand recognition
Well established sales force; strong ties to leading distribution channels; talented design team
Sold Furniture Division to refocus on its competencies in fashion and textile design. 5C’S OF THE ACQUISITION
Company
• Manchester Home expanded household furniture division by adding market leader PLFD
– Addition of 990 million in PLFD revenues
– Addition of established sales force, talented design teams
– PLFD’s Signature Style line very popular with consumers
• Ability to combine PL design skills with MH engineering and manufacturing – Manufacturing expertise and ergonomic designs
• Concerns
– How to tie-in PL’s bold designs with MH’s conservative
Britt Miller and Rebecca Orsher
EXECUTIVE SUMMARY
• Background: Acquisition of Paul Logan Home Furniture
Division
– Add strengths of design, brand awareness, market leadership, distribution channels
• Problem: Design a brand transition strategy to transfer Paul
Logan brand to Manchester Home
• Analysis: 5 “Cs”
• Recommendation: Gradual transition first linking Paul Logan to the Manchester name to build brand awareness then phasing out Paul Logan once target brand awareness has been reached as measured by another target consumer survey
– Utilize both push and pull marketing strategies to drive distribution channels and consumers
ACQUISITION
BACKGROUND & OVERVIEW
MANCHESTER
•
•
•
•
•
•
Leading manufacturer of premium office furniture
Revenues $2.33 billion in 2004
Home lines currently include
Recliner, Home office,
Media/Entertainment furniture
Home sales expected to grow 30% in 2005, from $260 million
Want to leverage manufacturing expertise and production capacity into household furniture
Goal: To provide a complete family of household furniture products in the mid- to upper-price points.
PAUL LOGAN
•
•
•
•
Furniture Division revenues $990 million in in 2004
Number 1-2 in market share and brand recognition
Well established sales force; strong ties to leading distribution channels; talented design team
Sold Furniture Division to refocus on its competencies in fashion and textile design. 5C’S OF THE ACQUISITION
Company
• Manchester Home expanded household furniture division by adding market leader PLFD
– Addition of 990 million in PLFD revenues
– Addition of established sales force, talented design teams
– PLFD’s Signature Style line very popular with consumers
• Ability to combine PL design skills with MH engineering and manufacturing – Manufacturing expertise and ergonomic designs
• Concerns
– How to tie-in PL’s bold designs with MH’s conservative