Batesmanor Furniture Case Study Analysis

1649 words 7 pages
BatesManor Furniture

History/Analysis

BatesManor Furniture Inc is a furniture manufacturer that was founded in the early 1900’s that offers medium to high priced wood bedroom, living room, and dining room furniture. The company’s president is Charlton Bates and the company was found by his great grandfather. BatesManor sells their furniture through high quality department stores nationwide and does not sell them through retail chain stores such as Rooms To Go, or discount outlets. The company is broken up into 10 sales people and 2 regional mangers where the sales people get a base salary as well as a small commission on their individual sales. BatesManor cares about creating brand awareness through promotion expenditures and it’s
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Another trend is the galley concept by creating free space for a furniture manufacturer, which is done by companies like Bassett Furniture Direct, which has over 11,000 galleries. There are also expositions that are seasonal events that are held in big cities around the United States like Los Angeles, Boston, and New York. Also on average furniture manufacturers spend 3.5 percent of annual net sales on advertising, which include consumer, trade, and cooperative advertisements. For consumer advertising sheltered magazines are used such Better Homes and Gardens, House Beautiful, and Southern Living. Trade is done towards retailers through brochures and point of purchase materials that are shown on the retailer’s sales floor. Then there is cooperative advertising, which is creating furniture awareness through newspapers as well as using television ads and radio ads.
So this brings us back to the original conversation that was introduced early on in the reading. Charlton Bates is the president of BatesManor Furniture Inc and has brought in some consultants, such as Thomas Berry, to discuss a proposal that was sent to him by Mike Hervey, who works for their ad agency, that they should increase their the companies advertising expenditures by $225,000 due to forecasted increase in sales and also to create more awareness of their furniture in these retail stores for consumers. BatesManor has enacted a 5

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