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By: Simon George
Team Members
Team Members
    • Mansi Agarwal
 • Neelam Choudhary
      • Anjal Tyagi
   • Abhshek Pundir
      • K.S.S.Suraj
• Parth Sarthi Gairola
Index
          Index
•   Brand Equity
•   Product Modification
•   Brand Portfolio
•   Decisions
•   Product Costing
•   Brand Positioning
Background
Karnataka Consumer Products Ltd(KPCL)

1962 – company established
  -Started as manufacturer of cushion seats and
  bare blocks.
  - Concept of rubberized coir.

1965 - introduced first time, under the brand name
“Kurlon“..
Supply material to industrial buyers. .
1983 – decided to start manufacturing for end user.
1985- capacity to produce 800 tones of rubberized coir(60%
being sold as bare blocks)
1987- stopped its line of bare blocks
By 90’s – Product portfolio :
mattresses, pillows, towels, doormats, and cushion seats
            Leader in Indian comfort mattresses.
Export 10%of total mattress sale
Year End review
            Costing
             and
            pricing




 Position
            Drop
                       Product
    ing
 Strategy
             in        Design
            sales


             Poorly
            motivate
               d
            Dealers
Product Details

•Rubberized coir mattress was an evolution
from the traditional cotton mattress
•Kurlon mattress was made of million of
fibers bonded with latex and compressed to
form coir block.
•The design structure of Kurlon mattress
allowed free circulation of air and prevented
heat from building up between the mattress
and cot.
Product Varieties
            Product varieties
• The most popular varieties of mattresses
  in India are that of cotton, rubberized coir
  and foam which differ in
  density, freshness, comfort, strength and
  shape
  Mattress type  advantages      disadvantages
 PU foam           Soft, very light          Hot, expensive, sag
 Latex rubber      Not as soft as foam,      expensive
                   comfortable
 Spring mattress   No sagging, long life     Very expensive, gets
                                             noisy
 Rubberized coir   Firm, reasonably priced Tendency to sag
 Cotton mattress   Cheap, foldable, of any   Forms lumps
                   size available
Product Line of Kurlon
• Apsara – Economy model (3 & 4inches)

• Super Deluxe – Premium model (3 &4 inches)

• Romantique – Super soft model (4.5inches)

• Klassic – Super premium model (5inches)

• Ortho – Designed for back problems(4 inches)
Catoregry sub- branding –wise performance 2003

             Apsara   Super     Ortho    Romanti   total
                      delux              que



No. of       25       28        15       10        16
model
(variety)


Sales(rs     324.01   145.01    222.48   175.13    196.27
million)



Pbt(rs       2.90     0.91      1.86     1.22      1.33
million)
Market

Cotton Mattress(70%)
Rubberised Coir Mattress , PU Form
Mattress ,
Spring Mattress and other (30% )
Segmentation and targeting
• Economy seekers – price is more
  important
• Comfort seekers – comfort is more
  important
• Value seekers – value is more important
• Additional attributes – orthopedic buyers
Target segment
• Normal buyers - involved in purchase for
  marriage and additional to family.
• Therapeutic buyers- purchase mattresses
  on account of back problems.
Normal Buyers
• INCOME LEVEL of rs 15000 per month.
• Purchase good mattress for the comfort
  factor
• Economic factor – Apsara sales
• Volume price of apsara mattress
• Should be in true with competitors prices .
• Comfort segment – can be divided into those
  who seek only comfort , no matter at what
  price it may be .
Therapeutic Buyers
Purchase constitution mostly single beds to
prevent sub-brand target is ortho.
Price can be modified so as to associated
better quality with higher price . Dealer need
to be informed of the various ailment.
Consumer Buying
   Behaviour
Buying Decision Process

 •   Who buys our product or services?
 •   Who makes the decision to buy the product?
 •   How is the purchase decision made?
 •   What does customer buy? What needs must be satisfied?
 •   Why do customer buy a particular brand?
 •   When do they buy? Any seasonality factor?
 •   Where do they go or look to buy the product or service?
 •   How is our product perceived by customers ?
 •   What social factors might influence the purchase decision?
 •   DO customer lifestyle influence their decision?
 •   How do personal and demographic factor influence the
     purchase decision?
Buying Decision Process:
Buying Decision Process:
     Five Stage Model
             Five Stage Model

 Problem                    Evaluation                  Post
              Information                  Purchase
recognitio       search
                                 of
                                           decision
                                                      purchase
    n                       alternatives              behavior
Problem recognition/reasons
         for buying

  Marriage of son/daughter
  Need for replacing the old, damaged mattress
  Addition to the family in the form of child birth or
  Parents coming to stay
  Increased health concerns
  Others
Information Search
• The buyers gathered information on the mattress
• Through:
 advertisements : mass media, websites, ratings, etc
 consultation with
•          mattress dealers, friends, and relatives




 Advertisements were considered a very important
 source of information.
Evaluation of Alternatives
Evaluation process:
• Trying to satisfy need
• Looking for certain benefits
• Sees product as bundle of attributes with varying abilities
  for delivering benefits to satisfy this need
Evaluate 2-3 brands on following factors :
Competition
• Kurlon is the leading player in the country in the
  rubberized coir mattress followed by
  Duroflex,Starlite,Centuary and Aaram.
• In addition to these brands there are also
  regional and local players both in branded and
  unbranded category.
• For example Rilaxon in East, Bedsy in
  Karnataka, Coiron and Sulfex in Kerala and
  Tamilnadu.
• In addition to rubberized coir mattress there are
  also Full PU foam and Spring mattress with
  market share of 5% and 1% respecively.
Conti….
• Sleepwell and Springwel are the major
  players in the PU foam and Spring mattress
  segments respectively.
Brand equity
• Brand Equity implies combination of assets and
  liabilities associated with a brand that enhances
  or depreciates the value of brand.
• Brand Equity can be determined by the
  following components:
           1)Brand Awareness
           2)Quality Perception
           3)Brand Loyalty
           4)Brand Association
           5)Trademarks/Proprietary assets
Swot Analysis

STRENGTHS        WEAKNESSES
• Brand name     • Poorly motivated dealers
• Quality        • Many sub brands
• Promotion




OPPORTUNITIES    THREATS
• New brands     • Closest competitor-Duroflex
• New markets    • Brand loyalty
                 • Regional players
Promotions
 Kurlon advertise through various
  channels.
 They had their own theme.
 They have various sales promotion
  schemes- For customers
             For traders
PROBLEMS-
 Had too many brands which created
  confusion.
 Competitors with more attractive
  schemes.
Positioning




In marketing, positioning is the
process by which marketers try to
create an image or identity in the
minds of their target market for its
product, brand, or organization.
Conti…
Had a unique tag line which focuses on
product itself.
Major Issues
• High no. of variations under its brand.
  - adds confusion
• Ineffective sales promotion strategy.
 - re allocate funds
• National v/s Regional brands
 - strong competition
• Segmentation.
 -using all segment variables
• Positioning.
 - pure sleep nothing else
• Price
• Place.
 -most of the sales are from south
 -foreign sales stagnanting
Feasible solution
• Divide the product portfolio into 3 SBU’s
-premium products
-economic products
-orthopaedic products


•   Product should be of standard size
•   Promote only two or three sub brands
•   Slogan writing
•   Pricing should include cost leadership strategy
Cont…


• CURRENT MARKET                      • NEW MARKET


1. Increase dealers margin.           1. Go to the segment of lower –
2. Launch spring and PU mattress         middle income group
   for export                         2. Can go for horizontal
3. Create a website for delivering       diversification strategy
   more customer value
4. Creating own retail chain
5. Special mattress to cater health
   segment
Kurlon main

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Kurlon main

  • 2. Team Members Team Members • Mansi Agarwal • Neelam Choudhary • Anjal Tyagi • Abhshek Pundir • K.S.S.Suraj • Parth Sarthi Gairola
  • 3. Index Index • Brand Equity • Product Modification • Brand Portfolio • Decisions • Product Costing • Brand Positioning
  • 4. Background Karnataka Consumer Products Ltd(KPCL) 1962 – company established -Started as manufacturer of cushion seats and bare blocks. - Concept of rubberized coir. 1965 - introduced first time, under the brand name “Kurlon“.. Supply material to industrial buyers. .
  • 5. 1983 – decided to start manufacturing for end user. 1985- capacity to produce 800 tones of rubberized coir(60% being sold as bare blocks) 1987- stopped its line of bare blocks By 90’s – Product portfolio : mattresses, pillows, towels, doormats, and cushion seats Leader in Indian comfort mattresses. Export 10%of total mattress sale
  • 6.
  • 7. Year End review Costing and pricing Position Drop Product ing Strategy in Design sales Poorly motivate d Dealers
  • 8. Product Details •Rubberized coir mattress was an evolution from the traditional cotton mattress •Kurlon mattress was made of million of fibers bonded with latex and compressed to form coir block. •The design structure of Kurlon mattress allowed free circulation of air and prevented heat from building up between the mattress and cot.
  • 9. Product Varieties Product varieties • The most popular varieties of mattresses in India are that of cotton, rubberized coir and foam which differ in density, freshness, comfort, strength and shape Mattress type advantages disadvantages PU foam Soft, very light Hot, expensive, sag Latex rubber Not as soft as foam, expensive comfortable Spring mattress No sagging, long life Very expensive, gets noisy Rubberized coir Firm, reasonably priced Tendency to sag Cotton mattress Cheap, foldable, of any Forms lumps size available
  • 10. Product Line of Kurlon • Apsara – Economy model (3 & 4inches) • Super Deluxe – Premium model (3 &4 inches) • Romantique – Super soft model (4.5inches) • Klassic – Super premium model (5inches) • Ortho – Designed for back problems(4 inches)
  • 11. Catoregry sub- branding –wise performance 2003 Apsara Super Ortho Romanti total delux que No. of 25 28 15 10 16 model (variety) Sales(rs 324.01 145.01 222.48 175.13 196.27 million) Pbt(rs 2.90 0.91 1.86 1.22 1.33 million)
  • 12. Market Cotton Mattress(70%) Rubberised Coir Mattress , PU Form Mattress , Spring Mattress and other (30% )
  • 13. Segmentation and targeting • Economy seekers – price is more important • Comfort seekers – comfort is more important • Value seekers – value is more important • Additional attributes – orthopedic buyers
  • 14. Target segment • Normal buyers - involved in purchase for marriage and additional to family. • Therapeutic buyers- purchase mattresses on account of back problems.
  • 15. Normal Buyers • INCOME LEVEL of rs 15000 per month. • Purchase good mattress for the comfort factor • Economic factor – Apsara sales • Volume price of apsara mattress • Should be in true with competitors prices . • Comfort segment – can be divided into those who seek only comfort , no matter at what price it may be .
  • 16. Therapeutic Buyers Purchase constitution mostly single beds to prevent sub-brand target is ortho. Price can be modified so as to associated better quality with higher price . Dealer need to be informed of the various ailment.
  • 17. Consumer Buying Behaviour
  • 18. Buying Decision Process • Who buys our product or services? • Who makes the decision to buy the product? • How is the purchase decision made? • What does customer buy? What needs must be satisfied? • Why do customer buy a particular brand? • When do they buy? Any seasonality factor? • Where do they go or look to buy the product or service? • How is our product perceived by customers ? • What social factors might influence the purchase decision? • DO customer lifestyle influence their decision? • How do personal and demographic factor influence the purchase decision?
  • 19. Buying Decision Process: Buying Decision Process: Five Stage Model Five Stage Model Problem Evaluation Post Information Purchase recognitio search of decision purchase n alternatives behavior
  • 20. Problem recognition/reasons for buying  Marriage of son/daughter  Need for replacing the old, damaged mattress  Addition to the family in the form of child birth or  Parents coming to stay  Increased health concerns  Others
  • 21. Information Search • The buyers gathered information on the mattress • Through:  advertisements : mass media, websites, ratings, etc  consultation with • mattress dealers, friends, and relatives Advertisements were considered a very important source of information.
  • 22. Evaluation of Alternatives Evaluation process: • Trying to satisfy need • Looking for certain benefits • Sees product as bundle of attributes with varying abilities for delivering benefits to satisfy this need Evaluate 2-3 brands on following factors :
  • 23. Competition • Kurlon is the leading player in the country in the rubberized coir mattress followed by Duroflex,Starlite,Centuary and Aaram. • In addition to these brands there are also regional and local players both in branded and unbranded category. • For example Rilaxon in East, Bedsy in Karnataka, Coiron and Sulfex in Kerala and Tamilnadu. • In addition to rubberized coir mattress there are also Full PU foam and Spring mattress with market share of 5% and 1% respecively.
  • 24. Conti…. • Sleepwell and Springwel are the major players in the PU foam and Spring mattress segments respectively.
  • 25.
  • 26. Brand equity • Brand Equity implies combination of assets and liabilities associated with a brand that enhances or depreciates the value of brand. • Brand Equity can be determined by the following components: 1)Brand Awareness 2)Quality Perception 3)Brand Loyalty 4)Brand Association 5)Trademarks/Proprietary assets
  • 27. Swot Analysis STRENGTHS WEAKNESSES • Brand name • Poorly motivated dealers • Quality • Many sub brands • Promotion OPPORTUNITIES THREATS • New brands • Closest competitor-Duroflex • New markets • Brand loyalty • Regional players
  • 28. Promotions  Kurlon advertise through various channels.  They had their own theme.  They have various sales promotion schemes- For customers For traders PROBLEMS-  Had too many brands which created confusion.  Competitors with more attractive schemes.
  • 29. Positioning In marketing, positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.
  • 30. Conti… Had a unique tag line which focuses on product itself.
  • 31.
  • 32. Major Issues • High no. of variations under its brand. - adds confusion • Ineffective sales promotion strategy. - re allocate funds • National v/s Regional brands - strong competition • Segmentation. -using all segment variables • Positioning. - pure sleep nothing else • Price • Place. -most of the sales are from south -foreign sales stagnanting
  • 33. Feasible solution • Divide the product portfolio into 3 SBU’s -premium products -economic products -orthopaedic products • Product should be of standard size • Promote only two or three sub brands • Slogan writing • Pricing should include cost leadership strategy
  • 34.
  • 35. Cont… • CURRENT MARKET • NEW MARKET 1. Increase dealers margin. 1. Go to the segment of lower – 2. Launch spring and PU mattress middle income group for export 2. Can go for horizontal 3. Create a website for delivering diversification strategy more customer value 4. Creating own retail chain 5. Special mattress to cater health segment

Editor's Notes

  1. Marketeer must understand every facet of the c
  2. Marketers develop[ed a 5 stage model of buying decisioin process.Consumer can skip or reverse at any step