Batesmanor Furniture (a) Essay

Charlton Bates-President of BatesManor Furniture and great-grandson of founder. Charlton is the key decision maker and must analyze the recommendation to increase his normal advertising spending percentage in the next year. Being the President of a small furniture manufacturer, Mr. Bates knows that his bottom line is very important as BatesManor begins to feel the pressure of dwindling margins due to rising manufacturing costs. Dr. Thomas Berry- Consultant to BatesManor that is trying to help Mr. Bates work through the issue of increasing advertising budget. Due to the nature of his work, Dr. Berry’s job as a consultant and reputation are on the line. Mike Hervey- Mike Hervey is a partner at the ad agency Hervey and Bernham. He is asking Mr. Bates to increase his consumer-advertising budget by about 40% ($562k to $787k). He has been analyzing target markets, their habits, and greatest purchase influencers. As with Dr. Berry, if this advertising campaign is adopted and fails, Mr. Hervey can lose a customer in BatesManor. John Bott- As the VP of sales, John is concerned with making sure there are dedicated BatesManor sales people working with the 1,000 high quality department stores that are carrying their furniture. Mr. Bott is very familiar with the competitive edge provided by a knowledgeable and driven sales force; and is keen to keep his team properly staffed and trained. Department Stores Selling BatesManor Furniture- High quality department stores may have agreements with BatesManor that will require them to match advertising expenses. While this may indeed increase sales, it will cost the stores extra that they may not have expected to spend. 10 Full-Time Salespeople- This team is tasked with introducing their line to the department stores carrying BatesManor furniture. Being commissioned salesmen and women, they may also benefit from an increase in sales. They could also suffer if they ad campaign falls short of expectations. 2 Regional Sales Managers- Similar concerns as above, but are in need of another salesperson. The advertising decision may impact their ability to hire new personnel. Furniture Manufactures (As an industry)- If BatesManor decides to increase consumer advertising, it could lead to a trend being set on the advertising front. This could cause others to have to follow suit in order to be able to keep up with the competition. This could prove to be costly in an industry dealing with rising costs. Baby Boomer Customers- The target market of BatesManor, this is the generation that is driving changes in the way furniture is marketed.