This case is all about, how to become a leader in particular segment with help of acquisition and establish own brand name.

1. SUBMITTED TO
PRADEEP KAUTISH
SUBMITTED BY
GARIMA TANK
DIVYA PAREEK

2. MANCHESTER PRODUCTS
A BRAND TRANSITION CHALLENGE

3. PROTAGONISTS
 Colleen Jones- Manchester's CEO.
 Jason Adams- Vice President of marketing for
Manchester.
 Gary Burnett- COO(MH).
 Lisa Marks- CFO(MH).
 Jeremy Campbell- VP, Strategic Planning(MH).

4. MANCHESTER PRODUCTS
 Premium office furniture.
 In 2004 there revenue were $2.33 billion.
 Looking to acquire.

5. PAUL LOGAN INC.
 A true life style brand.
 High-end, fashionable consumer goods.
 In 2004 there revenue were $9 billion.
 Looking to divest.
 Paul Logan operated in four division.
i. Apparels
ii. Home décor
iii. Fashion accessories
iv. Furniture division

6. Where are we now?
Where do you want to get?
How will we get there?

7. ACQUISITION

8.  Household furniture segment.
 Manchester was given rights to use the Paul Logan
brand name for only 3 years (new products doesn’t
include).
 Paul Logan was restricted from re-entering the furniture
business for ten years.
 In Jan 2005 Manchester product corporation Inc. had
made a bold move into household furniture market with
its recent acquisition of Paul Logan furniture
division(PLFD).
 The acquisition of PLFD dramatically expanded
Manchester household division over night and provided
them with a strong brand and an instant market leader
position in household furniture.

9. REASONS FOR PLFD ACQUISITION
Paul Logan Inc. Manchester product Inc.
Strengths
• High Brand Equity.
• Strong distribution
network.
• Talented design team.
Weakness
• Business diversification.
Strengths
• Manufacturing Expertise
and Great Production
Capacity.
• Skills in Engineering,
Ergonomics and Durable
designs.
Weakness
• Deficient access to
household furniture
distribution channel.

10. 5C’S OF ACQUISITION
Company
 Companies’ strengths and weaknesses compliment each other.
Customers
 Target customer age 34-55; income over $50k.
 MH customers are categorized as conservative elegance
 PLFD customers are more fashion conscious, trend setters
 Result from target consumer survey
- low brand loyalty- 60% consumer would switch brand
- 70% visited more then one store prior to furniture purchase
- high information search
- participant ranked furniture purchased decision on the basis of – style, design,
quality, comfort, price, brand, material – all covered by MH/PL
- PL has high brand awareness, almost double that of MH, will help to co-brand
them to raise awareness for MH.

11. Collaborators
 Manchester already has network of office distribution channels, now they gain
access to household distribution channels through Paul Logan
 PL sales force has strong ties to leading distribution channels-PL strength upscale
furniture, stores, specialty stores and departmental stores.
 Strong relationship with buyers
- Concern over brand going away, necessary to create a smooth brand transition so
consumers make the switch.
 Push strategies important to built strong relationship with distribution network
- 90% of PL shipment include purchase allowances
Competitors
 Paul Logan was market leader
 Household furniture industry
 $36.64 billion in 2004, positive percentage growth projection
Large number of corporate consolidation
Low cost imports from Asia/Mexico moving into higher price levels domestic
companies ready to attack the vulnerability of the new brand and position

12. Context
 Office furniture sales growth type to employment growth and new business
formation
-burst of dot.com bubble and recession have decreased demand for office
furniture
 Demand for home furniture's is tied to new home construction and home sales
due to home office.
 Innovative and stylish products to bolster demand

13. SUGGESTIONS GIVEN BY 3
EXECUTIVES

14. STRATEGY 1 BY GRAY BURNETT,
COO
IMMEDIATE
Quick name change determination to enter to market
Wins
•Built employees sense of
belongingness
•Quick decisive action
conveys fearlessness to
competitors
•Minimize internal and
external confusion of
brand name
losses
•Cannot leverage Paul Logan’s
powerful brand name
•Built uncertainty among
distributors
•Possibility for competitor to
gain market share

15. STRATEGY 2 BY LISA MARKS, CFO
POSTPONE
Use Paul Logan brand name, delay changes as long as
possible
Wins
•Sufficient time to understand
how to integrate both brand
successfully
•Appease brand loyal
customers and distributors
•Capitalize on Paul Logan’s
unaided brand awareness
Losses
•Impending “revenue cliff” in
three years
•High cost of managing two
marketing operations and staffs

16. STARTEGY 3 BY JEREMY
CAMPBELL, VP OF STRATEGIC
PLANNING
GRADUAL
Pick one or two products at a time and transit to PL
Manchester’s name gradually
Wins
•Contingency plan to protect
against brand failure
Losses
•Causes confusion to consumers
•Possible brand confusion
weakens standing against
competitors

17. OUR STRATEGY
Combination of the strategy 3 & create a
completely new brand at the end of year 3.

18. 1ST YEAR
I. Run MH & Paul Logan in parallel.
II. Senior leadership of both companies formulate
vision for new brand.
III. Vision is formulated and communicated
throughout the organization.

19. 2ND YEAR
I. Companies unify distribution channels and
supply chain network.
II. MH Engineering and Ergonomics teams
collaborated with Paul Logan design team to
establish new identity of functional groups.
III. Distribution gains and realize, crosspollination
of design and engineering breeds new lines of
products.

20. 3RD YEAR
i. New brand name rollout; press releases, large
corporate party, share vision with the world.
ii. Recognize individuals who developed specific
lines of products through bonus and press
release.

21. ADVERTISING STRATEGIES
 Strong campaign is critical to the success of the new
brand-$184 million allotted for 2005-
 Includes national and cooperative advertising for both
PLFD and MH PRODUCTS
 PUSH V/S PULL
 -MH to allocate more dollars towards push advertising
 -heavy push and pull the first 2 years
 -marketing and communications mix to form long term
company image

22.  Promotional programs
-purchase allowances
-recommend amending the planned 2005 marketing
expenditures to allow for purchase allowances
 Currently based on % of sales
-due to brand transition, allocate a fix amount to
advertising to ensure the level do not drop

23. RECOMMENDATIONS
 Continue to use Paul Logan name to leverage brand
awareness and channel partnership
 Focus strongly on both push and pull strategies the
first 2 years to communicate the acquisition
- Amend proposed advertising plan to incorporate
more push strategies, specifically purchase
allowances that contribute to the success of the PL
distribution network
 After years the business goal is to transition brand
officially to Manchester home.

24. CONCLUSION
 Communicate a vision
 Remove obstacles
 Provide resources
 Empowerment
 Reward

25. REFERENCES
 Harvard case study (Manchester Products)