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Brand Audit Report

COMM 467 101

18590075

11465077

12360079

11275070

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Table Of Contents

Executive Summary………………………………………………………………………………………………………...2

Part 1: Brand History………………………………………………………………………………………………………4

a) Company Background……………………………………………………………………………………………3

b) La-Z-Boy Timeline…………………………………………………………………………………………………5

Part 2: Assessment of Intended Brand Meaning……………………………………………………………….6

a) Target Segment……………………………………………………………………………………………….…….6

b) La-Z-Boy’s Intended Brand Meaning………………………………………………………………………6

Part 3: Assessment of Actual Brand Meaning……………………………………………………………………7

a) Data Tables & Graphs for Brand Associations………………………………………………………….8

i) Frequency of Primary and Secondary Associations……………………………………….8

ii) Inter-Relationships Among Associations……………………………………………………...9

iii) Relationships Between Associations and Other Segmentation Variables……10

b) Highlights of Analysis…………………………………………………………………………………………..10

i) Actual vs. Intended Brand Meaning……………………………………………………………10

ii) Variance in Brand Attitude and Purchase Frequency …………………………………11

c) Pros and Cons of Actual Brand Meaning and How to Strengthen Brand Meaning…..12

i) Extent to which Intended Brand Meaning is Appropriate…………………………….12

Part 4: Evaluation of a Category Extension……………………………………………………………………16

a) Associations Leveraged in Launch of New Product + New Associations Attempted..16

b) Success of Leveraged Associations………………………………………………………………………18

c) Recommendations: How La-Z-Boy should evaluate future Extension Opportunities.19

i) New product Categories: Mattresses and Beds……………………………………………19

Part 5: Assessment of Brand Strength……………………………………………………………………………22

a) Performance on Differentiation, Relevance, Esteem & Knowledge…………………………22

b) Y & R Matrix………………………………………………………………………………………………………..24

c) Recommendations: How to Strengthen Brand………………………………………………………24

Part 6: Final Recommendations……………………………………………………………………………………..26

Appendix A…………………………………………………………………………………………………………………...29

Bibliography…………………………………………………………………………………………………………………30

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Executive Summary

In the late 1960’s, La-Z-Boy Incorporated introduced the worlds’ first upholstered chair

that could both rock and recline, a product that has since become a staple of American

relaxation. La-Z-Boy Inc. was founded in 1926 and is currently the largest manufacturer of

upholstered furniture in the United States of America. Today, the La-Z-Boy store system

consists of more than 3,000 retailers, including more than 300 La-Z-Boy Furniture Galleries

across the U.S. and Canada. For the purposes of this report, our group will be analyzing the

various qualities and characteristics of the La-Z-Boy brand and will carefully scrutinize the

company’s extension into the outdoor hot-tub category.

This report is the outcome of a combination of primary and secondary research intended to

gain insight into how the La-Z-Boy brand markets itself as well as how it is perceived by

consumers. Beginning in 1990, La-Z-Boy has made a significant effort to reposition its

products to appeal to a larger variety of buyers, most notably females and Asians. They

have contracted style-icon Brooke Shields as a figurehead for their “Live Life Comfortably”

campaign, a statement that starkly contrasts to their use of famous masculine quarterback

spokesmen during the 50’s 60’s and 70’s. Our research found that the most common

primary associations with the La-Z-Boy brand were comfort, reclining and relaxation. In

general, the majority of survey respondents considered La-Z-Boy to rank in the upper

echelon of both product quality and recognition. However, many people viewed the brand

as the type of old, clunky furniture that only their parents would purchase. We ultimately

gained the impression that the positive connotations associated with La-Z-Boy furniture

would transfer favorably into the new hot-tub category. In this report, we will also examine

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the possible outcomes of La-Z-Boy designing and manufacturing bedroom furniture –

specifically bedframes and mattresses. Our findings have been compiled into three

recommendations for La-Z-Boy to further build strength in their brand while expanding

into new product categories.

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Part 1: Brand History

a) Company Background

La-Z-Boy Incorporated is the largest manufacturer of upholstered furniture and the

third largest manufacturer of all residential furniture in America. Founded as a family chair

company in 1926, La-Z-Boy experienced massive growth between 1961 and 1971 following

the introduction of its first generation armchair, the “Reclina-Rocka”. Since then, hundreds

of modifications and upgrades have been made to provide amenities such as heating,

massaging, armrest refrigeration and even Internet connectivity. In 1983 La-Z-Boy

extended their product line to include a wide variety of stationary chairs, sofas, and tables.

These products became so popular that by 1993, they accounted for 43% of La-Z-Boy’s

total sales.

La-Z-Boy went public in 1972 and began trading on the New York Stock Exchange in

1987. The company has since acquired several furniture manufactures such as Burris

Industries (1985), RoseJohnson Inc. (1986), Hammary Furniture (1986) and the Kincaid

Furniture Company (1988). These acquisitions were initially expensive, non-profitable and

were met with heavy criticism from investors, most notably La-Z-Boy’s largest institutional

investor, Prescott Investors. In 1989, Prescott investors attempted a hostile takeover of the

company, claiming that earnings and share value had not grown at an acceptable rate,

primarily due to the recent acquisitions. Ultimately, Prescott’s takeover was unsuccessful

and La-Z-Boy retained all of its subsidiary companies.

In 1982 La-Z-Boy hired Patrick Norton from Ethan Allen to lead the Marketing and Sales

department, an event that marked the beginning of a dramatic advertising and positioning

change for the company. Norton recognized the strong influence of women in household

furniture purchase decisions and began redesigning furniture to accommodate female body

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types in the late 1980’s. Meanwhile, the company introduced their largest advertising

campaign to date in 1991 which was designed to target female shoppers. The campaign

was focused almost exclusively on women’s magazines, as they were found to be a major

reference tool for women looking to buy furniture. During this time period, La-Z-Boy also

vastly expanded their international sales by modifying their furniture to suit Asian body

types in 1993.

b) La-Z-Boy Timeline

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Part 2: Assessment of Intended Brand Meaning

a) Target Segment

La-Z-Boy’s target segment is mature and established home and apartment owners that

are seeking to invest in quality furniture pieces rather than short-term disposable

products. Traditionally, La-Z-Boy has been considered the product of choice for the family

patriarch and the brand has been associated with masculine stereotypes such as watching

football, reading newspapers and smoking tobacco. As previously mentioned, La-Z-Boy

labored significantly in the early 1990’s to include female buyers into their targeted

customer segments through introducing new product lines and advertising campaigns.

b) La-Z-Boy’s Intended Brand Meaning

La-Z-Boy’s motto, “Live Life Comfortably”, is representative of their commitment to

using high quality materials and technologically advanced manufacturing machinery. The

brand is aware that “everyone knows about [their] world-famous recliners” (www.la-z-

boy.com) and consciously communicate their variety of furniture products through

numerous marketing channels such as their website, in-store at La-Z-Boy Furniture

Galleries, and on Facebook. Product attributes are also reinforced by an emphasis on

qualities such as “great-looking, long-lasting and comfortable” (company website).

Their point of comfort is further emphasized by claims that not only is the product

comfortable, but so is the shopping experience at La-Z-Boy stores. La-Z-Boy is offered in

more than 3,000 retailer locations, including more than 300 stores across Canada and the

US. In-store customers have the option of a “fit test”, where a salesperson will assist them

in finding the furniture that is the appropriate fit to satisfy their needs. Products are also

available online and attempt to communicate their point of differentiation by offering a 3D

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room planner where consumers can plan, visualize and redecorate their room, all in the

comfort of their home. Many stores also offer in-home design service where an interior

designer can aid in the designing process.

In striving to be viewed as budget friendly and stylish, La-Z-Boy promises to offer

hundreds of leather options to suit consumers styles and budgets. To reinforce their desire

to be seen as stylish to women, La-Z-Boy contracted Brooke Shields as a brand

spokesperson to establish associations with being elegant, fashionable and comfortable.

They also contribute trend reports on YouTube, which discuss current trends and expert

interior design recommendations.

Part 3: Assessment of Actual Brand Meaning

For the purpose of the La-Z-Boy Free Association test, 41 respondents were surveyed

outside of furniture stores in Richmond and Vancouver. Subjects who were entering or

leaving the furniture stores were targeted, as they accurately represented La-Z-Boy’s target

market. Furthermore, we focused on shoppers between 25 and 60 as an appropriate

representation of La Z Boy’s target consumer. Twenty-two females and 19 males were

surveyed, with an average age in the low 40’s.

The associations were grouped into categories for analysis (See Appendix A). Of the 198

total responses, 15 categories were created with the rest left uncategorized. More

specifically, similar responses such as “dad”, “guy” and “grandpa” were left uncategorized

on the basis that they may carry different connotations.

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a) Data Tables & Graphs for Brand Associations

i) Frequency of Primary and Secondary Associations

Primary Brand Associations:

Secondary Brand Associations:

Note: “other” responses include: Specialists, Established, Soft, Low Quality, Inexpensive, Endurance, Father, Sports, Weekend, Football, Chavvy, Home, Table, Rest, Old man smoking pipe, Grandpa Chair, Ugly, Vibrating, Leather, Sophistication, Classy, Support Posture, Classic, Leather, Black

Note: “other” responses are: Americans, First one to make the recliner, Solid Frame, no sag, Customized colors, Lying around at home, Tacky, Been around for a while, Man, Long Term Payment, Football, Sunday, Chilidogs, Heavy, Boxy, Ugly, Long-lasting, Endurable, Feels like home, Elevated feet, Lay back, Massage, Cheap, Leather, Comfort over looks, Doing nothing, Newspaper, Inactive, Well designed, Functional, Modern fabric, Heavy, Puffy looking, I want one, Luxury, Classic/timeless, Cute, Resilient, Dad, Durable, Luxurious, leather, Recognizable, Seattle, Living room, Basketball (The Movie), Guy and Taking it easy

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ii) Inter-Relationships Among Associations

Overall, the data was fairly balanced between product associations and non-product

associations. “Comfortable”, “cozy”, “quality” and “relaxing” were positive attributes of

the La-Z-Boy associations that were most common in the survey. Essentially, these

associations convey a positive image of La Z Boy being a comfortable brand that makes

quality products. Despite this, not all of the associations were positive. Many

respondents thought La-Z-Boy was “too large”, “old” and “boring”, with many stating

they picture a “grandpa chair” or an “old man smoking a pipe”. It is also important to

note that the “other” category included many masculine associations such as “guy”,

Total Brand Associations as a Percentage of Respondents

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“man”, “dad” and “grandpa”. These associations were too different to group together,

yet illustrate an underlying perception of masculinity relating to the brand.

iii) Relationship Between Associations and Other Segmentation Variables

It is clear through the analysis that associations with the La Z Boy brand and their

products are high. Recliners, sofas and chairs were all very strong primary

associations. Recliners in particular had a very strong association with the brand,

47.5% of respondents stated this as a primary association. This may be due to the use

of the word recliner interchangeably with the name La Z Boy as they are such a strong

and established company in the recliner market.

b) Highlights of Analysis

i) Actual vs. Intended Brand Meaning

Some interesting connections between age and gender as well as certain

associations were discovered in our analysis. In particular, females had a much higher

brand association with “old” than males, with 39.9% of females mentioning “old” as

either a primary or secondary association; this number would be even greater if “dad”

or “grandpa” were included in this category. Not only did females exceed males by 5%

with this association, but it also indicates that La-Z-Boy’s efforts at distancing

themselves from the image of older men are not significantly affecting the “old”

perception amongst women. Especially since the campaign to attract female consumers

began nearly 20 years ago, it is clear that a different technique should be adopted to

better capture the female market.

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Besides noted gender differences, there is also an issue with engaging the next

generation of La-Z-Boy customers. With 18% of respondents, in their 30’s, indicating

“old” as a primary response, this is much greater than the 5% of those above the age of

40. Once again, this illustrates that La-Z-Boy has not been able to distance themselves

from the perception of being “old”, especially among their young and future potential

customers. Respondents in their 30’s are clearly not identifying with the brand, still

associating their products as a better fit for their parents or grandparents. It is unclear

as to how great the extent of past advertising campaigns as well as the current Brooke

Shields’ endorsement has contributed to affecting “old” perceptions amongst

consumers. However, it is still evident that a large percentage of respondents surveyed

are still associating the brand with such unfavorable sentiments.

ii) Variance in Brand Attitude and Purchase Frequency

Segmenting the data with share of pocket did not achieve any statistically significant

information. This is mostly due to the fact that although the La-Z-Boy brand had very

strong and consistent associations among respondents, very few had actually

purchased La-Z-Boy products themselves. Purchasing a recliner or a sofa is not a daily,

monthly or even yearly occurrence for most individuals, therefore asking purchasing

behavior of La-Z-Boy products was our primary concern in order to establish a share of

pocket. A few respondents own or owned a La-Z-Boy product, and a handful owned

recliners second-hand from a family member or friend who could no longer use it. Due

to these factors our data showed no statistical difference between respondents who

owned a La Z Boy and those who did not.

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Although there is no insightful statistical relationship between perceived

competitive positioning and associations or demographics, there is still some important

information in the perceived positioning itself. Respondents were asked to rate La-Z-

Boy compared to their competitors using adjectives. The results indicated that most

perceived La-Z-Boy to be a very well known, established furniture brand. Many saw the

brand as a premium brand compared to their competitors, and very few could even

name a single competitor when prompted. This shows that although there were some

negative associations, especially among younger females, the brand still controls a

majority of the share of mind in the industry.

c) Pros and Cons of Actual Brand Meaning & How to Strengthen Brand Meaning

i) Recommendations: Extent to which Intended Brand Meaning is Appropriate

The free associations test resulted in mainly positive responses; however, there were

many negative and neutral responses as well. Overall the products are held in high

esteem with regards to quality and feel but are also known for being ugly or too large.

The brand itself has negative connotations with youth and females as being “old” and

“masculine”. The information below highlights the intended brand meanings and

compares them with the positive and negative association results.

Intended Brand Meaning #1: Innovative

In the 2010 La-Z-Boy Annual Report, the company discusses their desire to continue

their tradition of innovation. The company has defined the recliner market due to their

innovation in the past. However, this intended brand meaning is not coming across in

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the free association test. Many of our respondents labeled the company as “old-

fashioned”, “old” or “established. “

Pros Cons

The company has had a history of

innovation, and is continuing to

innovate releasing new

technology in their chairs and

sofas.

Our primary data did not show any

associations with the brand being

innovative.

Our data showed many contradictory

associations such as old, and

established.

La-Z-Boy has been innovating consistently, but has been unable to convey this in their

brand meaning. We recommend that if La Z Boy wants to be known as innovative they

must advertise the changes they have made over the history of their brand and continue

to demonstrate their most recent innovations. This promotional message will hope to

change consumers’ associations and thoughts about the brand in the future.

Intended Brand Meaning #2: Comfortable

It is clear with their 2010 Annual Report and slogan, “Live Life Comfortably”, that La-Z-

Boy wants to be known for comfort. This idea of is significantly established in their

advertising as well as their website. “Comfort” also resonated highly with our free

associations test.

Pros Cons

Comfort is the strongest association Very little; may hinder associations

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with the La Z Boy brand, and other

similar associations such as cozy

are also present.

Their chairs, recliners and couches

look and feel comfortable, which

confirms their intended brand

meaning.

Their slogan and promotional

activity are good at conveying the

comfort level of their products.

with “stylish” if comfort begins to

relate more with “lazy”.

The La Z Boy brand is doing well to promote their comfort level, with this message

resonating highly with potential customers, as seen in the data from the primary

research. Our only recommendation is for La-Z-Boy to continue stressing how

“comfort” is a positive association and is encompassed in all their products.

Intended Brand Meaning #3: Stylish

In the 2010 Annual Report La-Z-Boy discusses their desire to be known as stylish

especially to their female customers. Traditionally, La-Z-Boy has been known for

“comfort” and “quality” while being “ugly” and “big”. Transforming into a stylish brand

will involve having to distance themselves from their traditional campaign messages.

La-Z-Boy is currently attempting to leverage Brooke Shields image to reinforce this

transition.

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Pros Cons

La Z Boy has created an

advertising campaign with Brook

Shields and stylish furniture. This

is targeted to female consumers

who may relate to the actor and

appreciate the style of the

furniture.

The primary associations with the brand

demonstrated that many young

customers and females still view La Z

Boy as being large, chunky, too big and

ugly.

Their promotional message is mixed, on

one hand they are advertising being

stylish, on the other they are sticking to

their traditional message of being

masculine, large and comfortable. This

could cause confusion for customers

In order for La Z Boy to be known as stylish, they may have to distance themselves from

their traditional comfortable recliners. It is difficult for people to perceive the brand as

“big” and “comfortable”, while also being stylish. Perhaps leveraging the brand to be

stylish is a misstep – La-Z-Boy would need to create a new brand or drastically change

their promotional message in order to achieve stylish as an association.

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Part 4: Evaluation of a Category Extension

a) Associations Leveraged in Launch of New Product + New Associations Attempted

In launching their new line of hot tubs and spas La-Z-Boy was attempting to leverage

their core associations of quality and comfort when entering the spa category. The main

medium of marketing communication for the launch of their new products was through

their website and Facebook page. The website stressed La-Z-Boys strong association with

comfort and quality in introducing their new line of hotubs and spas as stated in their

landing page “Comfort has reached a new level [in] quality tubs”.

In promoting their hot tubs LA-Z-BOY emphasized their position of comfort by creating

the “6 C’s of Comfort” as their selling proposition: These 6 key features are as follows:

1. Comfortable seating

Hot tub inspired designs to deliver the most comfortable seating possible. Back up by

their reputation of providing 80 years worth of comfort stemming from their first

recliner.

2. Customizable massage

The hot tubs come with the exclusive AquaFlex Massage Technology which allows

users to adjust the massage intensity and comes pre-programmed with 14 different

massage patterns.

3. Craftsmanship

The same standard of care and attention to detail used manufacture LA-Z-BOY

furniture product will be applied to their hot tubs.

4. Convenient maintenance

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The La-Z-Boy® Spas Water Management System combines dual microfiltration,

pressurized ozone and a simple weekly application of La-Z-Boy AquaSynergy to ensure

safe, healthy, clean water.

5. Cost efficiency

The insulation system is provides mounting space for multiple components and is

energy efficient.

6. Consumer satisfaction

Unlike other hot tub manufacturers, LA-Z-BOY offers a 100% price back guarantee to

ensure complete satisfaction by their customers.

These 6’Cs allude to the idea that not only are the hot tubs comfortable but the entire

shopping and lifetime experience is comfortable as the spas are high quality, easy to

maintain, energy efficient, dependable and budget friendly.

When introducing their new product, LA-Z-BOY introduced 3 Collections: Classic,

Signature and Premier that suited different budgets and offered different degrees of

seating, customization and accessories.

The Classic line is marketed as “attractively priced spas” and stresses comfortable

underwater seating with full hydrotherapy jets designed for complete relaxation.

The Signature Collection with offers different models that seat up to 6 people. Each hot tub

has a different name centered on relaxation and rejuvenation; Relieve, Refresh Rejoice and

Revive.

The Premier Collection on the other hand appeals to the association of luxury as it

offers massage technology. The four different luxury spas are named The Dream, The

Fantasy, Soul Mate and Imagine.

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In introducing these three Collections, LA-Z-BOY was attempting to communicate the

association of both luxury and relaxation in their new product alongside comfort and

quality.

b) Success of Leveraged Associations

LA-Z-BOY was successful in leveraging associations identified in the brand meaning

assessment as their core associations of comfort and quality and directly relevant to the hot

tubs and spa product category.

The extension strengthened the brand as comfort and quality were directly linked the hot

tub category and therefore emphasized La-Z-Boy’s position on comfort. It also allowed La-

Z-Boy to introduce new associations of luxury and relaxation to their brand. These two

association fit with perfectly with the La-Z-Boy core association of comfort and enhances

the comfort experience of a La-Z-Boy furniture product as being a simultaneously relaxing

and comfortable with a feeling of luxury.

In their product marketing, the La-Z-Boy spa ads directly describe their association with

comfort and allude to the emotional feeling of relaxation and luxury through their use of

images as illustrated in Figure 1.

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Figure 1: Luxury

La-Z-Boy also mentions relaxation and luxury in their product descriptions:

- “Hot Tubs are the total package: beautiful and full of hydrotherapy jets specifically

designed and placed for complete relaxation – crafted with your lifestyle in mind”.

- “The perfect way to wind down and relieve stress after a busy day”.

La-Z-Boy Core Associations Hot Tubs & Spas

Comfort Comfort

Quality Quality

Recliner Relaxation

Premium Luxury

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Premium

Jets

Massage

c) Recommendations: How La-Z-Boy should evaluate future Extension Opportunities

In the future when La-Z-Boy considering entering new product categories, they should

be careful in how they evaluate extension opportunities and how they align with their

brand by conducting the following steps:

1. Identify the brands associations

2. Identify the benefits sought in the new category

3. Assess the relevance of the brand’s associations to the benefits sought in the new

category.

4. Identify any negative inferences that consumers may make from the brand when

considering the new category.

5. Identify new associations that need to be developed or learned for the extension to be

successful. These are:

a. Benefits/characteristics sought in the new category not currently

associated with the brand.

b. Associations that need to be developed to combat the negative associations

inferred from the parent brand.

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To complete the first two steps, La-Z-Boy should conduct two free association tests. One

on their brand, and the second on the category extension they are wishing to pursue. They

need to ensure that their key brand associations are directly relevant to benefits sought in

the new product category.

It is crucial that La-Z-Boy identifies any negative brand associations that may over

power relevant associations and become a barrier to purchase. For example, when Clorox

was looking to move into the kitty litter product category they believed they were building

on their association of “clean and sterile” but really their association with bleach was too

strongly anchored in the minds of consumers and therefore inhibited acceptance. La-Z-Boy

needs to be aware of their association with “recliner”, “puffy” and “old” when introducing

new extensions. They then may have to teach new associations while at the same time

emphasizing their core associations of comfort and quality.

In addition to these 5 steps, La-Z-Boy should enter product categories that will (1) not

cannibalize current sales, (2) attract new customers, and (3) generate additional sales by

current customers.

i) New product Categories: Mattresses and Beds

Looking into the future, La-Z-Boy should leverage their core associations of comfort

and quality and consider entering both the bed and mattress product category. La-Z-

Boy’s core associations are directly relevant to both of the new categories.

Looking specifically at mattresses new associations of support and relaxation must

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be learned from a consumer standpoint. From their extension into hot tubs and spas,

La-Z-Boy was successful in introducing “relaxation” to consumers and should carry on

this association into the mattress category. Since La-Z-Boy is strongly associated with

recliner, they should leverage this by developing reclining technology within their

mattresses. In addition to this La-Z-Boy should introduce back support along with their

core association of quality when positioning themselves into mattresses category, as it

is one of the key benefits sought.

To compliment the mattresses La-Z-Boy should invest into beds and bed frames.

Once again quality and comfort fit this category but one area that could affect them is

their association among some consumers of being “big” and “old”. Therefore along with

their relevant associations of quality and comfort, La-Z-Boy needs to emphasize style in

all their advertisements and promotion. La-Z-Boy already dominates the furniture

market, so it would be strategically sounds for them to offer bed frames as a part of

their furniture line and introduce this new product line at their La-Z-Boy furniture

stores.

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Part 5: Assessment of Brand Strength

a) Performance on Differentiation, Relevance, Esteem & Knowledge

Differentiation: (Low)

La-Z-Boy does not perform well on this dimension as a large percentage of La-Z-Boy’s

primary associations represented generic descriptions or attributes that could be applied

to any sofa/couch brand. In particular, associations such as “recliner” (22%), “comfort”

(18%) and “sofa” (11%) were among the top three primary associations, followed by

“chair” (10%), “high quality” (6%) and “furniture” (6%). Furthermore, none of the

associations provided, primary or secondary, managed to significantly distinguish La-Z-Boy

as a unique sofa/couch brand. Given this information, it is evident that consumers do not

view La-Z-Boy as much different than the leading competitor.

Relevance: (Moderate)

While the majority of responses were descriptive of product attributes, a few associations

with negative sentiments were expressed. More specifically, “large”, “expensive”, “old” and

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“boring” were among the top negative responses, with primary and secondary responses

totaling 17.5%, 15%, 25% and 7.5% respectively. Based on the frequency of their

association recall, it can be assumed that La-Z-Boy is not a relevant brand based on the

factors of size, budget and style.

Esteem: (Moderate)

La-Z-Boy also performs moderately on this dimension given the frequency of generic

sofa/couch associations and negative sentiments towards the brand. Applying a neutral

score towards the product attributes and a lower score towards negative sentiments, seeks

to reason that consumers have a relatively moderate opinion of the brand.

Knowledge: (High)

La-Z-Boy performs very well on this dimension. Of all 42 survey respondents, none were

unaware of the brand. Especially with about 40% of primary associations citing “comfort”,

La-Z-Boy is able to successfully project one of its primary positioning qualities to

consumers.

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b) Y & R Matrix

c) Recommendations: How to Strengthen Brand

It is clear that LA-Z-BOY must focus on improving the differentiation and relevance

dimensions. By reinforcing specific perceived associations that clearly defines LA-Z-BOY

apart from competitors, will not only improve their performance on the differentiation

dimension, but will also increase their relevance to consumers in the market for sofa/couch

products. The following are proposed recommendations to increase LA-Z-BOY’s brand

strength:

1. Create new associations

With 32.5% of total associations pertaining to “old” and “boring” in addition to the

other generic product attributes, LA-Z-BOY must engage in advertising and

promotions that emphasize contemporary designs and associations with other

Brand Strength

Differentiation

& Relevance

Brand Stature

Esteem & Knowledge

Low High

High

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desirable qualities. For instance, continuing to use celebrity endorsement - such as

Brooke Shields with “The Brooke Review” (lazboy.com) - will seek to engage

consumers in learning new associations such as “sexy”, “smart”, “stylish”,

“contemporary”, thus, further improving the brand’s ability to differentiate

itself. Stressing “contemporary” and “stylish” associations in brand advertising can

also help alleviate negative sentiments towards the perceived poor style quality.

2. Focus on innovation and use market research trends to influence product

development

Given that 17.5% of total association responses indicating the brand as

“large/chunky”, it is evident that LA-Z-BOY must continue to innovate products that

can better address the needs of its consumer base. More specifically, if market

research illustrates a growing trend towards condominium purchases, with a focus

on individuals moving into smaller spaces, LA-Z-BOY must apply these findings

towards developing products better suited for consumers who are looking for

space-effective furnishings. Failure to satisfy the needs of these growing markets

will result in consumers opting for a competitor who can meet their needs.

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Part 6: Final Recommendations

La-Z-Boy’s lack of differentiation but ability to successfully communicate its core

positioning points – quality and comfort – has earned the brand a B- grade. Furthermore,

since the brand is primarily associated with descriptive product attributes and negative

sentiments, indicating unfavorable consumer attitudes towards the brand, it is imperative

that La-Z-Boy take reasonable action to recondition more positive and distinguishable

associations. To rejuvenate the brands meaning and perceptions among consumers, and to

more clearly position itself in the market of furniture, we recommend LA-Z-BOY

implements the following solutions:

1. Emphasize style as part of LA-Z-BOY’s brand positioning

In addition to LA-Z-BOY’s core association of quality and comfort, LA-Z-BOY needs to

more aggressively emphasize their products as being both stylish and contemporary to

fight negative perceptions of being “old” and “large”.

The introduction of using Brooke Shield as part of the LA-Z-BOY marketing

campaign ads is a strong way to signal fashion and style in their products. Consumers

still do not associate the brand with these associations therefore; LA-Z-BOY should

increase their ad spending to emphasize this message. The desired associations to be

learned are Brook Shields, stylish and contemporary.

In regards to communicating the message LA-Z-BOY should promote their emphasis

on style by using traditional mediums such a television and print to reach the primary

decision maker in the household – women.

TV: Feature advertisements using Brooke Shields on networks such as TLC and in

between home improvement shows.

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Print: LA-Z-BOY should use magazines such as Chatelaine, Martha Stewart, Oprah,

and House & Home.

These advertisements should not only emphasize the style and contemporary design

of LA-Z-BOY furniture, but direct the reader to their website where they can benefit

from one of the man home improvement services and aids LA-Z-BOY offers.

2) Advertise key points and services of differentiation

Currently LA-Z-BOY is weak in differentiation compared to its competitors in terms

of its perception among consumers.

In addition to being high quality and comfortable similar to competitors, LA-Z-BOY

offers a wide range of options for customization in all shapes, styles and fabrics to suit

individual needs and budgets. From our survey, we observed that consumers were not

aware of these options.

LA-Z-BOY also offers a variety of home design and tools online as well as furnishing

advice from style experts such as Brooke Shields, and 3D Home décor visualization

planner.

This strong point of differentiation needs to be communicated to consumers. LA-Z-

BOY should focus on marketing to do it yourself home improvement customers, and

emphasize their ability customize any LA-Z-BOY piece to cater to specific needs and

individual styles of each of their customers.

This positioning would allow LA-Z-BOY to be seen beyond comfort and quality, but

as a credible source for home advice and personalization.

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3) Extend the LA-Z-BOY brand into mattresses and bed frames

Looking into the future, LA-Z-BOY should leverage their core associations of

comfort and quality and consider entering both the bed and mattress product category.

LA-Z-BOY’s core associations are directly relevant to both of the new categories.

Having leveraged the association of “relaxation” from their entrance into the spa

and hot tub category, LA-Z-BOY carries the relevant associations needed to enter the

mattress category. In addition to their emphasis on quality they must make sure this is

perceived among consumers in relation to back support which is a key benefit sough in

this product category.

Once LA-Z-BOY is able to harness the association of contemporary style to their core

associations, they should move in the bed frame category, to complement their entrance

into the mattress category. Quality is a relevant association, but style is a key purchase

factor in this category. Current customers value their quality and style in the furniture

category, and therefore would be receptive bed frames and mattresses.

LA-Z-BOY could introduce both these products into their furniture stores and sell them

alongside their sofa, love seat and recliner product offerings. They should also consider

adopting retailers to sell their mattresses at alongside their competitors at mattress

stores such as Sealy’s, The Bay, and Sleep Country Canada.

These products should be priced similarly to the top mattresses and bed frames

within the industry to signal quality and to stay consistent with their premium image.

LA-Z-BOY should promote these products in store at their furniture stores, and

mattress retailers to introduce and raise awareness about their new products.

Television would also be an effective medium to raise awareness and prompt

consumers to come try them out in store, or gather more information on their website.

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APPENDIX A

Association Groupings for Free Association Test:

Comfort = Comfort, Comfortable, Comforting

Old = Old

Large = Large, Too Large, Chunky

Expensive = Pricy, Expensive

High Quality = Quality, High Quality, Good Quality

Lazy = Lazy, Do Nothing

Relax = Relax, Relaxing

Sleep = Sleep

Boring = Boring

Cozy = Cozy

Recliner = Recliner, Reclining

Sofa = Sofa, Couch, Sofa couch

Chair = Chair, Arm Chair

Furniture = Furniture

TV = TV

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BIBLIOGRAPHY

LA-Z-BOY website home page: http://www.la-z-boy.com/?ef_id=4RlOfl4VEwkAAIce:20111121014637:s

Spa page: http://www.lazboyspas.com/?WT.ac=products@topmenu Facebook lazboy spa page : http://www.facebook.com/lazboyspas

http://www.la-z-boy.com/?ef_id=4RlOfl4VEwkAAIce:20111121014637:shttp://www.la-z-boy.com/?ef_id=4RlOfl4VEwkAAIce:20111121014637:shttp://www.lazboyspas.com/?WT.ac=products%40topmenuhttp://www.facebook.com/lazboyspas