manchester products: a brand transition challenge - hbs brief cases 4043

Manchester Products – A Brand Transition ChallengeAJ PradsManny KaushPanks GoksTans Pari

PA U L L O G A N

A trading name of Manchester Products

so what?

so what?Dependant Variable??!!?

so what?

what‘s next?

Dependant Variable??!!?

so what?

what‘s next?

Dependant Variable??!!? Value Offering??!!

so what?

what‘s next?

“Core Competency”

Dependant Variable??!!? Value Offering??!!

“ Being Human-oid ”

Just a random google of “Paul Logan”

Wasssaaaa!!!!!!

Two players, Manchester Holdings & Paul Logan Furniture Design

Marriage Made in Heaven – With PRE-NUP

Marriage – Funny Proposition?

Office furniture market had declined by appx. 28% percent from 2000 to 2004.

Manchester cannot launch a new product with Paul Logan brand name.

Manchester can use the brand name for only 3 years.

Since Manchester-Paul Logan was high priced, several companies had permeated the market with low cost import from Asia and Mexico.

Closest Competitor National Furniture Company are trying to exploit Manchester /Paul Logan market by advertising price reductions

Manchester Products lacks in household furniture distribution network

Complications

Manchester is the New Brand Name

• PLFD is Past, Manchester is Future.• Manchester Products all the way.• No confusion for two brand names but decisive

in actions• Strengths of Manchester:

Comfo

rtabl

e

Durab

le

High-

qual

ity w

orkm

ansh

ip

Closest CompetitorsPaul LoganManchester

Stay with PLFD Brand Name • PLFD are the Leaders of the Market .• Manchester has weak Brand Strength

and Distribution network.• Whatever be the name, We are the

game.• Brand Awareness

Awareness Own a Product0

10

20

30

40

50

60

70

80

90

PLFDManchester

Market Cannibalization Gradually eating into the share of Paul Furnishings .

Target - Capture the 45 % users who use Paul Furniture.

“Don’t Touch Office – Inner Strength”

Coke and Thumbs Up Analogy.

Premium Products – MANCHESTER ELITE

Pre-Owned Products

Pre Owned Products – Free Maintenence every 6 months.

“You know you are not the first one, but do you really care?”

HOME OFFICE

Home office concept is that families dedicate a room in their homes as an office.

Home office furniture consumption has been rapidly growing in recent years.

20%

26%

Home office users and growth

Home Of-fice Users

Others

26%

74%

The US market for home office furniture has recorded an average annual growth of more than 10%.

The Revenue of US home office market is around $23bn.

SME’sAffluent

Households

WFH Employees

Senior citizens

Baby Boomers

Target Customers

Moolah baby!!! Lets talk benefits!!!

Co-Op. Advertisement

Paul Logan - 51 M $Manchester Holdings - 6 M $

Trade Shows and Promotions

Paul Logan - 4 M$ManchesterHoldings - 0.2 M$

Moolah baby!!! Lets talk benefits!!!

Moolah baby!!! Lets talk benefits!!!

Paul Logan Manchester0

500

1000

1500

2000

2500

Total RevenueAdvertisement

Public Promotions Guerilla Marketing Ideas

Unconventional and Imaginative system of promotion

A unique, engaging and thought-provoking concept to generate buzz and consequently turn viral

Tradeshows Everything that we say and do on the show floor will

influence prospects perception of Manchester Furniture

Promoting Manchester’s Products

At 5 star Hotel Reception

At the Business class Lounge of airports in US

Innovative Bill Boards Develop a billboard with a nice 3-D effect to show off

our products

Mobile Bill Boards

Wood Quality speaks for itself!!!

Superior Wood quality-FSC certified wood

TV Advertising

Infomercial – Tele-marketing Impulsive purchase by looking at the

products. Toll-free numbers and website links.

Television commercial to air between prime time shows.

Comfort….

ManchesterELITE

Covert Advertising Use of Manchester Elite Products in the

Entertainment Industry – TV dramas and movies.

News Paper Ads

Radio Advertising

Special Incentives

Special gifts for customers who make a purchase over $4000.

Special discounts for Bulk purchases.

0% interest EMI on credit cards.

Scratch Coupons for variable discount – 5% to 15%.

Monthly Lucky draw winner – Upto $2000.

Future Promotional Strategies

Collaboration with real estate agents.

Folding furniture -- 345 million industry.

Online Sale -- rapidly growing.

Metal and House hold - 2.26 billion industry.

Movies halls – sponsor furniture.

If we Screw UP??!!

30

2520

1515

Market Division Upscale Dept. Store

Speciality Shops

Large Retails

Independent Store

Catalogs and Online

Used Market – 35%

Switching Markets – 60%

Smart Customer

Base – 60%

Multi-Option Aware – 70%

If we Screw UP??!!