Case study covers Brass beds, Inception The Family Tree, Manufacturing process and expansion, pricing, market, competition, distribution

2. Agenda
 Brass Beds
 Test the market
 Inception of “The Family Tree”
 Manufacturing Process & Expansion
 Pricing
 Market
 Competition
 Distribution
 Q&A

3. Brass
Beds
Brass beds are beds in which the headboard and footboard are
made of brass & rails are usually made of steel.
The brass used in making brass beds is usually 70 per cent
copper and 30 per cent zinc.
 Brass beds popularity at its peak at the turn of the century,
post World War II & in 1970’s

4. Test the market
To test the market
for reproductions
of antique brass
beds in
Southeastern US
•Contacted bed supplier in
Pennsylvania
•Began selling beds to furniture
and antique dealers
Mr. Jim
Epps
(An Antique
Dealer)
Mr. Sanford
Pattern
(Businessma
n)
•300 beds sold
•Mostly to Antique dealers
6 months later

5. Inception of “The Family
Tree”
Encouraged by
Initial success
Began
manufacturing
beds
To minimize
transportation
cost
Control quality
& deign
With in 2years
“The Family
Tree” began
manufacturing
brass beds in
Colbert, Georgia

6. Manufacturing Process &
Expansion
Raw
Material
• Small investment in fixed assets
• Import brass tubing from West Germany
Producti
on
• Cut into pieces and polished with cutting rouges
• Drilled holes to easy assemble with nut & bolts
• Started producing 8 beds/day
Expansio
n
• Started selling accessories like brass spitoons, oak
china cabinets & chairs, wrought iron tables &
glassware
• Less margins but are valuable trade & display items

7. Pricin
gItems Cost Range Start From
in $ per unit
Range End To
in $ per unit
Brass beds cost to dealers 200 500
Direct labor & material cost 130 230
Misc. expenses 20 70
Profit margin 50 200
Discounts given
on large orders
Commissions
paid to sales
person only on
initial order
Repeat business
was non-
commissionable

8. Marke
t
• High priced antique brass beds
• Refused to reproduction brass bedsNorth
Region
• Shortage of antique beds
• Antique dealers purchased reproduced brass beds
• Furniture chains also plays a major role
South
Region

9. Competitio
n
30 brass bed manufactures in US
Out of 30, 2 were located in Southeast
region except The Family Tree
Those 2 were located at Virginia & New
Orleans
The Family Tree dominates the Southeast
US market due to its presence in central
location at Colbert, Georgia

10. Distributio
n 95% beds sold through antique dealers
Initiated to gain profits through furniture chains. Ex: Tie up
with Ethan Allen
Sold limited no. of bed through retail from Colbert
Two large trucks with sample, travelled through southeast,
cover as many dealers as possible, Trucks returned only
when everything had been sold
Truck & driver is born by The Family Tree while the customer
had to pay for gasoline

11. Q&A-
1What were the feasible alternatives for The Family Tree?
Continue as a
dominant
player in
southeast
region
Continue as a
dominant
player in
southeast
region + expand
in southwest
region
Continue as a
dominant
player in
southeast
region + expand
in southwest
region + expand
in north region

12. What do you recommend for a course of action?
Q&A-
2
 Should also focus on high end and high margin accessories.
 Long term contracts & profit sharing with dealers and distributors
 Conceptualizes institutional sales
 Increase in sales force
 Incentive on repeat orders
 Broader product range