Manchester Product

Category: Microeconomics, Product

Last Updated: 27 Jul 2020

Pages: 5 Views: 192

Manchester Products: A Brand Transition Challenge Recommendation: Here are two companies namely Manchester Products and Paul Logan Furniture Division, both offer furniture in different sectors. Indeed, Manchester Products has been known for office furniture while Paul Logan Furniture Division is selling high-? end fashionable home furniture. Manchester should co-? brand the Paul Logan Furniture Division line by using a strategy that makes Manchester an endorser brand (Aaker D. , 2004). In this way the existing product line could now be called Manchester Paul Logan Furniture Division and after two years,

Manchester should introduce a new household furniture brand. Problem statement: The problem that Manchester faces is that of transitioning from one customer segment, which is the office furniture segment to another segment which is the segment of household customers. If we have a look at the exhibit 4, the table highlights clearly the strengths of Paul Logan Furniture Division which are different than the Manchester Products. While the core product is the same, the marketing, branding and distribution techniques will differ. The choice of these strategies and the alternates present problems to the company. As ar as the next issues regarding the different distribution strategies of both the brands are concerned, Manchester follows a push strategy where it manufactures the furniture and sells it online, through retailers, specialty stores as well as through the direct sales force. As far as Paul Logan Furniture Division is concerned, it too follows a push strategy as it designs its products and manufactures them, without addressing specific consumer requirements. Assumptions: The future for Manchester, as a household and an office retailer brand will need to keep in mind that the Paul Logan Furniture Division name annot be used after three years. Another assumption is that furniture chain stores concerns will be satisfied, as Manchester will be able to provide them with products with the endorsed Paul Logan Furniture Division name. This will enable them to have a comfort level developed with Manchester so that once two years have lapsed and the new Manchester brand is introduced, these stores will be willing to carry them, based on a good relationship (Aaker D. A. , 2004). Discussion and analysis: The solution that needs to be undertaken in order to resolve the challenge of brand transition, considering that the company an only use the brand name for three years and the fact that it cannot use it to brand new products indicates that adoption of the Paul Logan Furniture Division brand name is not a sustainable strategy. Therefore, the suggestion given by Lisa regarding delaying the name change is not feasible and would only serve to confuse consumers (Davis, 2000). The suggestion where Gary recommends that all products should be rebranded to Manchester immediately ignores the core reason for the acquisition of Paul Logan Furniture Division. The acquisition was carried out to help Manchester enter the household furniture market nd if the name is not used then the acquisition would, in essence, waste the power of the Paul Logan Furniture Division brand in the consumer market. In so far as the last recommendation is concerned, the gradual change in one or two categories will help in registering the fact that Manchester has the same quality products as Paul Logan Furniture Division, and will help to leverage the acquired brand name better. However, this will be against the core principles as stated by Al and Laura Ries as an immutable law of branding (Ries & Ries, 1998). The law of singularity states that the brand should stand for ne particular image in the mind of the consumer. In as far as the case goes, it has been stated that Manchester has an image of a conservative furniture brand that is mainly ‘corporate’ in its approach, using conservative and elegant designs. Paul Logan Furniture Division has a completely different positioning, and is meant to be a contemporary outstanding furniture brand that is preferred by consumers who are trend setters in way. This target market serves to be a completely different brand persona which is bold and trendy as compared to Manchester’s persona which is serious and elegant. Therefore, none of hese strategies would have worked in the market place, and there was a need for a more comprehensive, and focused strategy that could harness the positive goodwill generated by Paul Logan Furniture Division so that Manchester cold sustain the advantage in the longer run, even after the three years had passed. That is the reason why the fourth strategy of endorsing the Paul Logan Furniture Division brand had to be considered. The marketing communications campaign that is used will need to focus on this endorsement, so that the brand name becomes so entrenched in the consumer’s mind, that even when three years nd and Manchester is relived of the right to use the Paul Logan Furniture Division name, Paul Logan Furniture Division is subconsciously perceived as a Manchester brand (Davis, 2000). As far as pull and push strategies are concerned, the company in case of the Paul Logan Furniture Division brand line should continue to follow a push strategy, with promotional offers and designs that can enhance sales as well as market recognition. However as far as the office furniture division is concerned, the company should also introduce a pull strategy whereby orders are taken from corporate buyers and are customized ccordingly. Implementation: The proposed recommendations have two phases. The first is endorsed product lines while the second is a new product line at the end of two years. In the first scenario the action plan would entail as an immediate step, a board and then a company-? wide meeting where all employees are brought onto the same page with reference to the strategy proposed of endorsing the brand. The employees need to be reminded that they are brand ambassadors. As far as the sales force is concerned, Paul Logan Furniture Division sales team will have to be instructed to consciously endeavour and call

Paul Logan Furniture Division as Manchester Paul Logan Furniture Division in all verbal, written and online communications. The sales force will have to be briefed and trained in following the company policy. Moreover, some sales people will be permanently placed at larger retail stores to help answer and queries regarding the corporate endorsed brand. Secondly, retailers and distributors will be brought on board, and all their concerns and issues should be answered proactively. Ad and communications campaigns also need to be worked on focusing on Manchester Paul Logan Furniture Division. Once the endorsement trategy ceases to exist, the company will have to have a contingency plan in catering to the situation Moreover as new products cannot bear the Paul Logan Furniture Division name, the company will have to come up with a new brand of household furniture, after two years of using the Paul Logan Furniture Division name. The implementation procedures in this case will include promotional strategies for retailers and wholesalers who will be encouraged to push the product more than the competitor’s products. Implementation is the key to executing a successful brand strategy and these measures will aid in just that.

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