A Brand Transition Challenge


Manchester Product’s decision to enter into the household furniture market and acquisition of the Paul Logan’s Furniture Division (PLFD) has strategic level of implications for the company. These decisions are also very important in the sense that the office furniture market is becoming mature and showing no handsome profit margins for the competitor’s especially significant imports from Mexico and China. But there are certain key issues which the Manchester product’s has to tackle in order to be make this acquisition successful and to improve its position in the household market.

Company also wants to leverage the brand equity of the acquired company. These key decisions are about the brand transition strategies and long run marketing programs like the pull and push strategic tradeoff. Company has to decide which policy it should pursue for its long benefit. Writer of this essay has tried to cater to this problem and proposed the solution after very care full analysis of the market situation, the intensity of competition, the previous marketing practices of the  two companies and of course the objectives of the merger. Writer has tried to analyze and evaluate the different options available for brand transition strategies and come up with the best possible option. During analysis, both the quantitative and qualitative factors are considered and analyzed. During this study, writer has also considered the internal and external environmental conditions of the company, overall macro environmental conditions and possible impact of changes in policies by the companies on all the stockholders. Besides this, the suggestions for 2005 budget are also proposed and suggested the appropriate promotion and advertising programs to make this brand transition smooth and successful.

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