Battlefield_Furniture_Case_Exercise_Ver_4.pptxCase Facts
Furniture Industry
- Large number of regional
producers & limited variety
- Low Capital Intensive
- Low Ad Spends ( 2% of
Revenue) & low awareness
- 25000 r
...
Battlefield_Furniture_Case_Exercise_Ver_4.pptxCase Facts
Furniture Industry
- Large number of regional
producers & limited variety
- Low Capital Intensive
- Low Ad Spends ( 2% of
Revenue) & low awareness
- 25000 retailers - Giant
discount shops, full line
department & furniture stores,
small neighborhood specialty
shops
- 10 large retailers - 14% of
industry volume
Batlefeld
- 1998 - 2000 period sales grew by
9% (ahead of industry average)
- Sales up from $ 140 mn (1998) to
$ 160 mn (2000)
- Change in strategy - Sell ‘out of
the catalog, High quality / High
Margin, No inventory (for Retailer)
- 48 Agents – 5% Commission on
sales & 6 Employees – Considered
Management trainees
- Major challenge with agents (40+
Yrs old) – converting them ‘from
furniture peddlers to retail
consultants’Frank O’Brien
Background
Furniture Salesman for 40 yrs & with Battlefield for 25 yrs (Age
68 yrs);retiring in 2 years
Territory - Florida / Alabama / Georgia
Sales (2000) - $6.1 Mn (mostly Florida)
Rhoads reading of situation
Territory potential - $7.2 Mn (2000)
Reluctance of O’Brien to follow new strategy of program
selling to select accounts
Low Penetration / Distribution within neighboring territories
(Alabama, Georgia & the Carolinas)Frank O’Brien
Rhoads Solution:
Territory realignment
He believed current sales volume in the
underperforming territories could be doubled
President – approved of
arrangement
Wanted Rhoads to handle the situation
(O’Brien) delicately in a way that it does not
affect Battlefield’s reputation and Sales
For O’Brien – Loss of prestige would
upset him more than loss of income
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