Page 6 - Board meeting-MARSH

MKB STRATEGIC BRIEF
Marsh Kitchen & Bath has played a vital role in the success of Marsh Furniture Company for several decades. As the single largest purchaser of Marsh Cabinets, Marsh Kitchen & Bath is the largest customer of MFC. Marsh Kitchen & Bath has developed a sales, design and distribution business that, to our knowledge, is unique among cabinetry manufacturers of Marsh Furniture Company’s size. More specifically, cabinet manufacturers do not typically operate company owned showrooms.
The mixture of new construction when compared to repair and remodel at Marsh Kitchen & Bath closely mirrors that of the Company’s wholesale business. . Strong relationships with builders, combined with steady regional growth of new construction, has led to positive results, while focused consumer marketing initiatives, the addition of experienced design talent and a more remodeling-friendly product offering has led to growth in the strategically important repair & remodel segment.
Since 2016, the leadership team has been highly focused on modernizing the business through a cohesive set of practices aimed at streamlining and consolidating key functions, including financial reporting and marketing. Prior to this, the locations largely operated independently, each creating its own methods of quoting, selling, accounting and advertising. The objectives of an updated business model have been simple: improve the
overall process and customer experience while elevating sales and profit margins. The foundational principles of this updated model are now in place, with promise of excellence.
Looking ahead, Marsh Kitchen & Bath is well positioned for measured and profitable growth. Over the next three years, we will continue this momentum and focus on a set of Strategic Drivers specific to Marsh Kitchen & Bath. We have a plan and timeline for completing the deployment and adoption of Marsh X, which serves as both a retail business software platform and the guiding principle of Xceptional customer experience. Secondly, we will reposition existing showrooms to locations of higher visibility to attract more remodeling homeowners. Finally, we will seek to expand through the creation or acquisition of new locations throughout the region, and fill the key positions that will be needed to support them.
Historically, Marsh Kitchen & Bath has been referenced as five separate business units of Marsh Furniture Company. In 2019 and beyond, the business will be considered one division of Marsh Furniture Company, allowing for the comprehensive development of business objectives and strategic drivers to propel profitable growth.