Kurlon main

1. KURLON LTD. By: Simon George

2. Team Members Mansi Agarwal Neelam Choudhary Anjal Tyagi Abhshek Pundir K.S.S.Suraj Parth Sarthi Gairola Team Members

3. Index Brand Equity Product Modification Brand Portfolio Decisions Product Costing Brand Positioning Index

4.   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

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. Year End review

7. 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

8. 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, 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

9. 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

10. 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

11. C otton Mattress(70%) R ubberised Coir M attress , PU F orm M attress , Spring M attress and other (30% ) Market

12. 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

13. Normal buyers - involved in purchase for marriage and additional to family. Therapeutic buyers- purchase mattresses on account of back problems. Target segment

14. INCOME LEVEL of rs 15000 per month. Purchase good mattress for the comfort factor Economic factor – A psara 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

15. 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

16. Consumer Buying Behaviour

17. 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

18. Buying Decision Process: Five Stage Model Buying Decision Process: Five Stage Model

19. Marriage of son/daughter N eed for replacing the old, damaged mattress A ddition to the family in the form of child birth or Parents coming to stay Increased health concerns Others Problem recognition/reasons for buying

20. 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 . Information Search

21. 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

22. 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

23. Sleepwell and Springwel are the major players in the PU foam and Spring mattress segments respectively. Conti….

24. 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

25. 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

26. 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 c reated confusion. Competitors with more attractive schemes. Promotions

27. 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

28. Had a unique tag line which focuses on product itself. Conti…

29. 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

30. 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

31. Cont … CURRENT MARKET Increase dealers margin. Launch spring and PU mattress for export Create a website for delivering more customer value Creating own retail chain Special mattress to cater health segment NEW MARKET Go to the segment of lower – middle income group Can go for horizontal diversification strategy

32. Thank You