“Manchester’sProductsInc.”=“M”“PaulLogan”=“PL”“Manchester’sOfficeFurniture”=“MO”“Manchester’sHouseholdFurnitureDivision”=“MH”“PaulLogan’sFurnitureDivision”=“PLFD”BrandTransitionStrategyMakePush&PullStrategy2005BudgetPlansMPLMOPLFD2005AcquisitionUsenamePLFD:3yearsleavefurnituremarketfor10yearsMHHouseholdOfficeBackgroundBasicanalysisPlansImplementationPredictionConclusionBasicAnalysis——4PMPLMH+PLFDProductS:1)Furnituremarketleader2)Technology3)AttractivelogocolorsW:1)Design&attraction2)BrandawarenessFeatures:Conservative,focusonfunctionS:1)150SKUsofhighquality2)Highbrandawareness3)Designteam&styleW:QualityweakerthanMFeatures:Bold;fashionableS:1)CombineadvantagesofM’stechniquesandPL’sbrandawareness2)MakefulluseofPLFD’sresourcesW:DifferentstylesPriceMid-toupper-pricepointsMid-toupper-pricepointsMid-toupper-pricepointsPlace1)Holesindistributionchannels2)Productsnoteasilyfound1)Moreefficientdistributionchannels2)Easytofindproducts3)Highmarketshareposition1)PLFD’s10distributioncenters:betterdistributionchannels2)PLFD’sbrandeffectresultsinM’sbettermarketpositionPromotion1)Successfulnationaladvertising2)EmphasisonPullStrategy1)Awards,mediareports2)FocusonPushStrategy1)ImproveMH’spublicity2)Useadvertisingsynergyin3yearsBackgroundBasicanalysisPlansImplementationPredictionConclusionBasicAnalysis—IndustryConsumersCompetitorsManufacturer:MH&PLFDCompetitorDivisions:1.Low-costimportsfromAsiaandMexico.——along-termdefensestrategy2.Domesticcompetitors(theclosestistheNationalFurnitureCompany).——1)duringtransition:appropriateprice2)persuasiveadvertisingtoincreaseconsumers’confidence.ComparisonwithCompetitors:S:1)MHandPLFDverycomfortable,durable,high-quality2)PLFD’sprice;productaccessible;design&attractionW:1)M’sprice;unattractive;productinaccessibleConsumers’Features:Highinformationneeds;mediumpricesensitivity;mediumbrandsensitivity.CommonFeatures:Homeowners;aged34-55;incomeof5millionormore.MH:Conservativeclients.PLFD:Morefashion-consciousBackgroundBasicanalysisPlansImplementationPredictionConclusionBasicAnalysis—Consumerresearch35%boughtduringasale25%plannedpurchasesbasedonadsfromretailers60%switchbrandswhenlookingforareplacement60%talkedtoathirdpartybeforepurchases70%visitedmorethanonestorepriortopurchases1)Style2)design3)quality4)comfort5)price6)brand7)material/fabric8)durabilityDiscountsstimulateconsumers’purchases.Increaserebatestoretailers,wholesalersStrengthencooperationwithretailersforbetterpublicity.Givemoreincentives.Twosub-brandwithdifferentstylescanlockconsumers.Keepproducts’durability.Salespersonisimportantforpublicity.Commissionmeasures;trainingthesalesstaffpurchasevolume;Broaddistributionchannels’breadth;keepqualitystrengthMH’slevelofstyleanddesignneedsimprovingBackgroundBasicanalysisPlansImplementationPredictionConclusionPlansProblem1Problem2BrandTransitionStrategyPushorPullBackgroundBasicanalysisPlansImplementationPredictionConclusionPlans—BrandTransitionStrategyBackgroundBasicanalysisPlansImplementationPredictionConclusionChangetoMHabsolutelyContinuePLChoose1~2productstochangegraduallyMH--MainBrandDoubleSub-brandStrategyPlanAPlanBPlanCPlanDBackgroundBasicanalysisPlansImplementationPredictionConclusionPlanAPlanBPlanCPlanDMarketshareAbilitytoobtainprofitCooperationsynergyBrandOrientationBrandExtensionOthersFlexibility;uncertaintyHighcosts;RiskWechoosePlanDPlans—BrandTransitionStrategyAssessment0100200300400200320042005(p)1919.52020.52121.522salesmarketing0102030405060708090200320042005(P)PUSHPULL024681012141618200320042005(P)PUSHPULL020040060080010001200200320042005(p)050100150200250salesmarketingPLFD(80%)MH(45%)AnalysisofmarketingexpensesBothpull&pushshouldbeattachedimportancetoPlans—PushorPullBackgroundBasicanalysisPlansImplementationPredictionConclusionThefinalplan1、Usethe“Doublesub-brandsstrategy”toscorethebrandtransitiongoal.2、Recognizeboththepushandpullstrategiesasimportantstimulationtothesuccessofthecompany.Doublesub-brandsPull+PushTheFinalPlanBackgroundBasicanalysisPlansImplementationPredictionConclusionImplementation—TargetBrandManagementLong-term:ProvidecompletehouseholdfurnitureShort-term:Brandtransition;MarketShare&GrowthTargetBrandManagementMainBrand:MHSub-brand:MH-AMH-BMH-PLFD3yearslater:ConsolidateMH-B&MH-PLFDOrganizationstructure;CompanyCulture;PersonalResources;InformationintegrityBackgroundBasicanalysisPlansImplementationPredictionConclusionImplementation—DistributionChannelsConsumerpreferencesAnalysis45%UpscaleStores/chains30%SpecialtyStores25%DepartmentStoresPLFDsales30%UpscaleDepartmentStores15%DepartmentStores10%Others20%LargeRetailChains25%SpecialtyStoresConsumers’PurchasesDistributionChannelsDesignDistributioncentersWhole-salerRetailersRetailersMConsumersConsumersConsumersBackgroundBasicanalysisPlansImplementationPredictionConclusionImplementation—DistributionChannelsDistributionchannelmanagement——Internal10distributioncenters=regionalgeneralmanagement(M)(retailers)passuniformprice,pr