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KURLON LTD.
By: Simon George
Team Members
• Mansi Agarwal• Neelam Choudhary
• Anjal Tyagi• Abhshek Pundir
• K.S.S.Suraj• Parth Sarthi Gairola
Team Members
Index
• Brand Equity• Product Modification• Brand Portfolio• Decisions• Product Costing• Brand Positioning
Index
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. .
Background
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
Drop in
sales
Costing and
pricing
Product Design
Poorly motivate
d Dealers
Positioning
Strategy
•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 Details
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 shapeMattress type advantages disadvantages
PU foam Soft, very light Hot, expensive, sag
Latex rubber Not as soft as foam, comfortable
expensive
Spring mattress No sagging, long life Very expensive, gets noisy
Rubberized coir Firm, reasonably priced Tendency to sag
Cotton mattress Cheap, foldable, of any size available
Forms lumps
Product Varieties
• 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)
Product Line of Kurlon
Apsara Super delux
Ortho Romantique
total
No. of model (variety)
25 28 15 10 16
Sales(rs million)
324.01 145.01 222.48 175.13 196.27
Pbt(rs million)
2.90 0.91 1.86 1.22 1.33
Catoregry sub- branding –wise performance 2003
Cotton Mattress(70%)
Rubberised Coir Mattress , PU Form Mattress , Spring Mattress and other (30% )
Market
• Economy seekers – price is more important
• Comfort seekers – comfort is more important
• Value seekers – value is more important• Additional attributes – orthopedic buyers
Segmentation and targeting
• Normal buyers - involved in purchase for marriage and additional to family.
• Therapeutic buyers- purchase mattresses on account of back problems.
Target segment
• 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 .
Normal 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.
Therapeutic Buyers
Consumer Buying Behaviour
• 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
Problem recognitio
n
Information search
Evaluation of
alternatives
Purchase decision
Post purchase behavior
Buying Decision Process:Five Stage Model
Buying Decision Process: Five Stage
Model
Marriage of son/daughterNeed for replacing the old, damaged mattressAddition to the family in the form of child birth orParents coming to stay Increased health concernsOthers
Problem recognition/reasons for
buying
• The buyers gathered information on the mattress• Through:advertisements : mass media, websites, ratings, etcconsultation with • mattress dealers, friends, and relatives
Advertisements were considered a very important source of information.
Information Search
Factor Preferred Sub-level
Price (Rs.) 1,500, 2,500, 4,500 Thickness 3”,4”,5” Density (Kg/M3) 20, 30, 60 Colour of tapestry Blue, Green, Yellow Design on mattress Plain, flowers, line designs Measurement 72*30,72*42,75*60 Foam (%) 10, 20, 30
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 :
Evaluation of Alternatives
• 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.
Competition
• Sleepwell and Springwel are the major players in the PU foam and Spring mattress segments respectively.
Conti….
• 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
Brand equity
STRENGTHS• Brand name• Quality• Promotion
WEAKNESSES• Poorly motivated dealers• Many sub brands
OPPORTUNITIES• New brands• New markets
THREATS• Closest competitor-Duroflex• Brand loyalty• Regional players
Swot Analysis
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.
Promotions
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.
Positioning
Had a unique tag line which focuses on product itself.
Conti…
• 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
Major Issues
• 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
Feasible solution
Cont…
• CURRENT MARKET
1. Increase dealers margin.2. Launch spring and PU mattress for
export3. Create a website for delivering
more customer value4. Creating own retail chain5. Special mattress to cater health
segment
• NEW MARKET
1. Go to the segment of lower – middle income group
2. Can go for horizontal diversification strategy
Thank You