installment payments on your What are the benefits and hazards associated with the purchase of PLFD? Hazards * Stansted only authorized to use Paul Logan name for three years (p. 1) * PLFD lines seen as bold styles and fashionable shades, whereas MH favored traditional, functional designs (p.
3) * New products introduced by MH could not use the Paul Logan brand (p. 3) * Hefty competition by cheaper imports (p. ) made it challenging to maintain mid- to top price details * National Furniture Company (biggest PLFD competitor) upgrading advertising and initiating cost reductions reacting to MH/PLFD merger and aggressively pursuing a strategy to take advantage of the questions associated with the integrating (p. 5) * PLFD core buyers more fashion-conscious than MH core consumers and regarded themselves being trend retrievers (p. 5) * A significant furniture string which carries PLFD products has indicated displeasure while using merger and it is reevaluating all their decision to transport PLFD items (p. ) * The debate linked to the brand-name transition strategy as well as the huge effects associated with the greatest decision (p. 6) * Promotional issue, which has huge distribution network implications (p. 7) * PLFD favored “push courses in the form of volume rebates and purchase allowances * MH preferred “pull courses such as national advertising 2. Should cooperative mode advertising technique aim at the trade (push), the end customer (pull), or some combination of equally? Benefits: The merger dramatically expanded MH overnight and provided them with a strong brand and an immediate market leader position inside the household furniture part (p. 1) * More than 150 SKUs of high quality household furniture with a #1 or #2 position inside the categories they competed in (p. 2) * PLFD is a great instantly acknowledged and respected manufacturer in pieces of furniture (p. 2) * The acquisition included PLFD sales, management, and design teams, 10 syndication centers, inventory for all one hundred and fifty products, plus the right to utilize PL name for three years (p. ) * PLFD had a well established sales force (p. 2) 5. PLFD acquired strong jewelry to leading distribution programs (p. 2) * PLFD had a gifted design team (p. 2) * The acquisition is incredibly consistent with MH’s ultimate objective of offering a complete category of household furniture items in mid- to top price factors (p. 3) * Both equally MH and PLFD produced products in the mid, mid-upper, and uppr price items (p. ) * Synergy potential among PLFD’s style skills with respect to colors, forms, and designs coupled with Manchester’s engineering power, manufacturing experience, and ergonomic innovations may well be a winning mixture (p. 3) * Good housing market (lots of new construction) and ALL OF US economy in general in early 2005 * Household furniture manufacturers relied on progressive and stylish product innovations to fuel expansion once the real estate boom with the 2000s cooled down (p. ) * MH/PLFD partnership is a good combination of advancement and style 2. PLFD had strong human relationships with purchasers from major furniture chains, department stores, and wholesalers that sold to the smaller, independent household furniture and specialty stores (p. 4) * 2003 Gatwick survey demonstrated that thirty percent of customers popular upscale department shops, 25% specialised shops, 20% large pieces of furniture chains, and 15% small , and independent furniture stores (p. 5). * These tastes consistent with in which PLFD goods are currently offered (45% high end furniture stores and restaurants, 30% specialised stores, and 25% department stores (p. 4)