NUIG Marketing Policy & Strategy-MK311Crestfield Furniture Industries, Inc. (B) Group 3 Ken Fuller, Francis Gray, Emma Harney, Mairead Guihen & Eoin Clarke. 22nd of March Crestfield Furniture Industries. Also. Lea-Meadows. is a manufacturer of medium to high-priced woos bedroom. All agents had established relationships with their retail accounts and worked closely with them. living room and dining room furniture.15% of their in-store time on Lea-Meadows products according to Moorman. Inc. Crestfield Furniture Industries. Considering the firm hired 10 sales agents. This merger was not a planned move but a necessary one. The two firms were located on adjacent properties and the two firms maintained as much autonomy as was economically justified.Introduction Introduction to Crestfield Furniture Industries. Inc.000 on each sale’s agents for 10% . This family company then merged with Lea-Meadows.000 in total sales agent’s costs in 2003. These sales agents also represent other manufactures of noncompeting furniture and non-furniture firms. Lea-Meadows. is a small privately owned manufacturer of upholstered furniture for use in living and family rooms. Lea-Meadows. Lea-Meadows employed 15 sales agents to represent its products. in April 2004 after Charlton Bate’s Father-in-law died suddenly leaving his daughter with controlling interest of LeaMeadows. Inc. An estimated 1. Although the company y did not attempt to influence the type of retailers that agents contacted. Crestfield had its own sales force.000 retail accounts.000 retail accounts were called on in 2002 and 2003. The company employed 10 full time sales representatives. and company executives believed this growth rate would continue for the foreseeable future. Inc. this amounted to $500. it was implicit in the agency agreement that agents would not sell to discount houses. ‘Do we give the upholstery line of chairs and sofas to our sales force or do we continue to use the sales agents?’ there was mixed views from the staff of each firm. Inc. These individuals performed the same function as sales agents but were paid a salary plus a small . Main issue The main issue concerned with the merger was the selling efforts. The two firms retained their own identity and brand names. Inc. The company’s sales have increased by 7% annually over the past five years. The question which plagued Bates was. paid an agent commission of 5% of net company sales for these services. The company was formed in the early 1900’s by Charlton Bate’s great-grand father. Inc. but Lea-Meadows relied on sales agents to represent them. who called on 1. In 2003 Lea-Meadows spent $50. Lea-Meadows filled a gap in the firms product mix. plus the small commission of $375000. . This does however leave Martin Moorman. Recommendations Both firms have many advantages and limitations to their selling methods which Moorman and Bott both disagree about. these salaries amounted to $700. which are the way Crestfield. a close family friend.000 in administration cost coming to a complete total of $1. Martin Moorman feels that it is important to keep sales agents for the firm. whereas. John Bott believes that the Lea-Meadows should assign the line to the Crestfield’s sales force.205.commission.000. Crestfield’s sales people were highly regarded and were known for their professionalism and knowledge within the industry. We feel that now that Moorman is 58 he will possible be retiring in the near future.000. and a position could be made available for him to fill as an advisor to the firm. have been operating. without a position. Both parties present excellent arguments although it is clear from the financials that it is more profitable for the firm to stick with their own sales agents. In 2003. plus $130.