Haverwood Furniture Case Analysis
Autor: Adam Fisher • October 4, 2018 • Case Study • 1,541 Words (7 Pages) • 657 Views
Adam Fisher
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Individual Case Report for:
Haverwood Furniture, Inc.
MKTG 5150.007
Marketing Management
Fall 2018
Attached is my report for the Haverwood Furniture, Inc. case. Included in the table are my recommendations which provide supporting data.
The Problem
Haverwood Furniture is planning its budget for the year 2008. There are opposing plans for a restricted amount of advertising dollars. After hearing both requests, Haverwood Furniture is faced with the following problem:
- “What should be Haverwood’s marketing communications (promotion)
program and budget for 2008 in order to achieve its communications
objectives?”
Recommendation(s)
As stated in the case study, it is not just how much additional funds are needed for the overall budget, it also makes sense to evaluate how the funds are allocated within the budget. The table below details the recommended changes Haverwood should make to the four advertising line items that comprise the 2008 promotion budget. The recommended changes for the upcoming year are based on the communications objectives identified for Haverwood Furniture.
[pic 1]
Haverwood Furniture Communications – 2008 Proposal
Based on Estimated Sales for 2008: $78 Million¹
2007² | 2008 | Increase | Percent Increase | |
Sales Expenses & Admin | $995,000 | $1,130,000 | $135,000³ | 13.6% |
Cooperative Advertising | $1,650,000 | $1,695,000⁴ | $40,000 | 2.4% |
Trade Advertising | $467,000 | $517,000⁵ | $50,000 | 10.7% |
Consumer Advertising | $562,500 | $562,500⁶ | $0 | 0% |
Total | $3,675,000 | $3,900,000⁷ | $225,000 | 6.1% |
Computations:
¹$75,000,000 total sales for 2007 provided by case × estimated sales increase of 4% for 2008 (75,000,000×.04 = 78,000,000)
²Data provided by case exhibit 2
³$135,000 determined from case estimate $65,000 increase in administration costs in 2008 plus additional $70,000 salary and expenses for an additional salesperson
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