Crestfield Furniture: Marketing Policy And Strategy

1389 words - 6 pages


Case Study:

Crestfield Furniture Industries, Inc. (B) 

Submitted by:


Course Details:

Marketing Policy and Strategy



2nd of March 2011







Executive Summary

Charlton Bate’s, President of Crestfield Furniture Industries, Inc. has just witnessed the merger of his company with that of Lea-Meadows Inc., a manufacturer of upholstered furniture for living and family rooms. The merger proceeded smoothly but a few necessity details were still to be answered:

  •      Is this merger working for both Crestfield Furniture Industries, Inc. and Lea-Meadows Inc.?

...view middle of the document...

Lea-Meadows, Inc. is a small, privately owned manufacturer of upholstered furniture for use in living and dining rooms and is more than 75 years old. The company uses some of the finest fabrics and frame construction in the industry.

In April 2004, Crestfield Furniture Industries, Inc., merged with Lea-Meadows, Inc. It was not a planned merger, as Charlton Bates’s father-in-law died suddenly in February 2004, leaving his daughter with controlling interest in Lea-Meadows. The upholstery line filled a gap in the Crestfield product mix. A general consensus that the two firms should maintain as much autonomy as was economically justified, with both companies retaining their own identify and brand names.



Situation Analysis

Crestfield employ 10 full-time salespeople and 2 regional sales managers. Crestfield are different in so much that it they have their own sales team, which is quite unique for a company involved in the furniture industry. This method ensures that they have a committed and dedicated sales team who help motive others on the team. Which was established by Bates father many years ago and has worked well for his company. A survey completed by ‘Standard & Poor’s Industry’ showed that for household furniture that the competition for retail floor space would require even more support, including store personnel sales training, innovative merchandising, inventory management, and advertising.

Lea-Meadows employed 15 sales agents to represent its products; their agents also represent several manufacturers of non-competing furniture and home furnishings. Typically their sales agents would need to speak to several different buyers within a store to sell their different products. They also found it necessary to return several times, firstly to visited buyers and discuss new lines, then to discuss any promotion being offered by manufacturers, with orders been sorted when and where appropriate, finally they visited a selling floor to check displays, inspect furniture, and inform salespeople about furniture style and construction. A Lea-Meadows agent spent 10 to 15 percent of their in-store time on Lea-Meadow products.

Deciding whether the two companies should retain their separate identity of different sales force or go against Crestfield policy of having its own dedicated sales team, which is separate to that of other companies. However the prospect if they were to merge their sales personnel that they would have to add new salespeople which would require reconstructing of sale territories, involve potential loss of commission by existing salespeople causing upset and disrepute and become a “big headache.” Also the possibility that if they did go ahead that they would have to loose a valued employee in Martin Moorman who has been employed for Lea-Meadows for 30 years and is a close family friend with Bates and his wife.

Market Analysis


Crestfield Furniture Industries, Inc. had net sales in...

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