BatesManor Furniture Inc is a furniture manufacturer that was founded in the early 1900’s that offers medium to high priced wood bedroom, living room, and dining room furniture. The company’s president is Charlton Bates and the company was found by his great grandfather. BatesManor sells their furniture through high quality department stores nationwide and does not sell them through retail chain stores such as Rooms To Go, or discount outlets. The company is broken up into 10 sales people and 2 regional mangers where the sales people get a base salary as well as a small commission on their individual sales. BatesManor cares about creating brand awareness through promotion expenditures and it’s broken down in to 4 categories. First there is sales expense and administration, then cooperative advertising with retailers, then trade promotions, and lastly consumer advertising. Batemanors spends millions of dollars a year on promotions and advertising, they approximately spent almost $3.7 million dollars in promotion expenditures in 2007. Batesmanor does their advertising mainly through magazines and newspapers as doing a point of purchase strategy as well with retailers. The household furniture industry is a profitable industry as there was an estimated $31 billion dollars in sales in 2007. The industry is broken up into three different categories, which is the household upholstered furniture, which accounts for 50 percent of total household sales in the industry, wood furniture accounts for 40 percent and others account for only 10 percent. Wood furniture has put more emphasis on quality of the furniture, which then accounted for a sales forecasted increase of 4 percent in 2008. There are about 1,000 different furniture manufacturers in the US alone and ten of the manufacturers make up one third of the industry in sales. The
