March 12th, 2008 | 
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Please help THIS IS A MARKETING QUESTION..?
my teacher asked me too point out two problems in this case below and i can't seem to understand what the problems would be i read the case over and over and it seems find to me..does anyone see two problems with madison furniture??please someone with marketing knowledge only answer i dont have time for foolishness..
MADISON FURNITURE CO. PRODUCES A LINE OF HIGH QUALITY REPRODUCTIONS OF EARLY AMERICAN STYLW BEDS,DRESSERS,NIGHT TABLES. MADISONS PRODUCTS ARE DISTRIBUTED NATIONALLY THROUGH A NETWORK OF HIGH END FURNITURE RETAILERS. MADISON HAS ENJOYED CONSIDERABLE SUCCESS. THEY ADVERTISE HEAVILY AND HAVE STRONG BRAND RECOGNITION. CONSUMERS PERCEIEVE MADISON TO BE A LEADER IN STYLE AND QUALITY. MADISON ALSO HAS GOOD RELATIONSHIPS WITH ITS RETAILERS. MADISON BEDROOM SETS INTERGRATE WELL WITH THE LIVING ROOM AND DINING ROOM FURNITURE THE RETAILERS OBTAIN FROM OTHER MANUFACTURERS.
NOW MADISON WOULD LIKE TO INTRODUCE its own line of living room furniture. Most retialers have already filed their showrooms and warehouses with wel known living room furniture from other companies. THe retailers do not want to five up successful lines of furnitre for the unprover madison line. Also, Madison is concerened about how their furniture will be represented by the retail salespeople. in the high end furniture stores, the salespeople often function as decorating consultants. They make specific recommnedations to customers for models,colors,etc…madison is concerned that the salespeople will continue to recommned the brands of living room furniture that they have worked with in the past.
below is a case with two possible channell allowances..the possible allowances include advertising allowance,push money,trade in allowances,and stocking allowances..which TWO DO YOU THINK IS CORRECT FOR THIS CASE????
Posted in Other - Advertising Marketing | 
Tags: Beds, Brand Recognition, Colors, consumers, Dining Room Furniture, Dressers, Foolishness, Furnitre, Furniture Co, Furniture Retailers, High End Furniture, High End Furniture Stores, high quality, Living Room Furniture, Night Tables, Quality Reproductions, Retail Salespeople, Showrooms, Stocking, Warehouses
Two points to note:
1) Madison by entering the living room furniture section will obviously have to displace an existing brand or two as they target this market segment, this is going to cost them some of their profit margin. They may have to offer a better wholesale/retail discount on their furniture line than the other manufacturers are giving to persuade the retail managers to make room for their furniture.
2) They will have also have to offer incentives to the design sales people and give regular promotions to consumers to make them aware of and ask for the Madison brand, this is not helped by the Madison brand being highly associated with the Early American style for which they have an established reputation, and which is currently complimenting the other brand designs in the stores. Assuming Madison are sticking with their Early American designs in their living room range of furniture the question has to be will consumers be persuaded that they will want that much of one style in their homes?
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