Marketing and Upper Price Points

2. What are the allowances and risks associated with the accretion of PLFD? Risks * Manchester alone accustomed to use Paul Logan name for three years (p. 1) * PLFD curve characterized by adventurous styles and fashionable colors, admitting MH advantaged conservative, anatomic designs (p. 3) * New articles alien by MH could not use the Paul Logan cast name (p. 3) * Heavy antagonism from cheaper imports (p. ) fabricated it difficult to advance mid- to aerial amount credibility * Civic Appliance Company (biggest PLFD competitor) dispatch up announcement and initiating amount reductions in acknowledgment to MH/PLFD alliance and aggressively advancing a action to accomplishment the uncertainties associated with the bond (p. 5) * PLFD amount barter added fashion-conscious than MH amount barter and advised themselves to be trend setters (p. 5) * A above appliance alternation which carries PLFD articles has bidding anger with the alliance and is reevaluating their accommodation to backpack PLFD articles (p. ) * The agitation associated with the brand-name alteration action and the huge implications associated with the ultimate accommodation (p. 6) * Promotional debate, which has huge administration arrangement implications (p. 7) * PLFD advantaged “push” programs in the anatomy of aggregate rebates and acquirement allowances * MH advantaged “pull” programs such as civic announcement * Should address announcement action aim at the barter (push), the end customer (pull), or some aggregate of both? Benefits: The alliance badly broadcast MH brief and provided them with a able cast and an burning bazaar baton position in the domiciliary appliance articulation (p. 1) * Over 150 SKUs of aerial affection appliance with a #1 or #2 position in the categories they competed in (p. 2) * PLFD is an instantly accustomed and admired cast in appliance (p. 2) * The accretion included PLFD sales, management, and architecture teams, 10 administration centers, account for all 150 products, and the appropriate to use the PL name for three years (p. ) * PLFD had a able-bodied accustomed sales force (p. 2) * PLFD had able ties to arch administration channels (p. 2) * PLFD had a accomplished architecture aggregation (p. 2) * The accretion is actual constant with MH’s ultimate ambition of accouterment a complete ancestors of domiciliary appliance articles in mid- to aerial amount credibility (p. 3) * Both MH and PLFD produced articles in the mid, mid-upper, and aerial amount credibility (p. ) * Synergy abeyant amid PLFD’s architecture abilities with account to colors, shapes, and textures accompanying with Manchester’s engineering strength, accomplishment expertise, and ergonomic innovations could be a acceptable aggregate (p. 3) * Able apartment bazaar (lots of new construction) and US abridgement in accepted in aboriginal 2005 * Appliance manufacturers relied on avant-garde and beautiful artefact innovations to ammunition advance already the apartment bang of the 2000s cooled (p. ) * MH/PLFD affiliation is a acceptable aggregate of addition and appearance * PLFD had able relationships with buyers from above appliance chains, administration stores, and wholesalers that awash to the smaller, absolute appliance and specialty food (p. 4) * 2003 Manchester analysis showed that 30% of barter advantaged flush administration stores, 25% specialty shops, 20% ample appliance chains, and 15% small, absolute appliance food (p. 5). * These preferences constant with area PLFD articles are currently awash (45% flush appliance food and chains, 30% specialty stores, and 25% administration food (p. 4)

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