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Consumer Behaviour and Marketing Psychology
Koala
MBA404
Assignment no.3
Koala
Executive summary
Dany Milham and Mitch Taylor in 2015 established the company with an aim to serve the customers according to their individual needs. There are several brands in Australia that are offering several solutions to peoples sleeping needs. They are good at designing and quality too. However, Koala is unique in its service, products and also in its marketing and communication strategies. Thus, it offers its customers with mattresses that are exceptionally comfortable, breathable and solution of their every issue. The focus is always on ease, firmness, and cooling. All these specifications require familiarity with the customers (Belyusar et al., 20160. Koala is making the customers main focus on all of its communication and marketing strategies. They offer them their required solutions in their adverting and convince them of the use of persuasion strategies.
Overview of product and service and its market performance
Humans need seven to nine hours of sleep each night for their proper functioning of bodies during day time. However, the rightquantityof sleep does not always result in the best quality of sleep. The one best way of improving the quality of sleep is the use of the finest and best quality mattress. If any mattress is not only providing comfort to users, then they must replace it. There are different kinds of mattress available in markets that are for different needs of people and are according to everyones impression of a good nights snooze. Koala is one of the paramount companies in Australia that are fulfilling the needs of their customers of an ideal mattress ADDIN ZOTERO_ITEM CSL_CITATION citationIDROcip6Yd,propertiesformattedCitation(koala, n.d.),plainCitation(koala, n.d.),noteIndex0,citationItemsid72,urishttp//zotero.org/users/local/CNBGYtRv/items/LYNHTLF6,urihttp//zotero.org/users/local/CNBGYtRv/items/LYNHTLF6,itemDataid72,typewebpage,titlekoala,URLhttps//au.koala.com,authorfamilykoala,given,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (koala, n.d.). This mattress not only fulfils the need for sleep but also makes people happy and more productive.
Koala is a relatively new and out of the boxAussie brand that has a five-star rating in any classification such as ease, quality of sleep, sturdiness, backing and worth for money. The company is successfully selling mattresses online. Mattresses are offered in five different sizes, from single to the king size bed options ADDIN ZOTERO_ITEM CSL_CITATION citationIDdShrO3el,propertiesformattedCitation(Bailey, n.d.),plainCitation(Bailey, n.d.),noteIndex0,citationItemsid71,urishttp//zotero.org/users/local/CNBGYtRv/items/XYDYWZFI,urihttp//zotero.org/users/local/CNBGYtRv/items/XYDYWZFI,itemDataid71,typewebpage,titleKoala losses double on marketing, non-mattress investments,URLhttps//www.afr.com/companies/retail/koala-losses-double-on-marketing-nonmattress-investments-20181207-h18v5i,authorfamilyBailey,givenMichael,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (Bailey, n.d.). Moreover, it is offering a 120-night trial period for its products and keeps people fit. The product is also thought to be just accurate for firmness and is not too soft or hard ADDIN ZOTERO_ITEM CSL_CITATION citationIDCi2RqGsp,propertiesformattedCitation(koala, n.d.),plainCitation(koala, n.d.),noteIndex0,citationItemsid72,urishttp//zotero.org/users/local/CNBGYtRv/items/LYNHTLF6,urihttp//zotero.org/users/local/CNBGYtRv/items/LYNHTLF6,itemDataid72,typewebpage,titlekoala,URLhttps//au.koala.com,authorfamilykoala,given,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (koala, n.d.). In addition, the Kloudcell foam is designed in such a way that it delivers the texture of memory foam and latex. There is no doubt that the mattress has the breathability and recoiling.
During 2017-18, Koala has seen an increase in revenues to nearly 91 per cent. However, losses are also there due to the competition in the industry ADDIN ZOTERO_ITEM CSL_CITATION citationIDUed0XQui,propertiesformattedCitation(Bailey, n.d.),plainCitation(Bailey, n.d.),noteIndex0,citationItemsid71,urishttp//zotero.org/users/local/CNBGYtRv/items/XYDYWZFI,urihttp//zotero.org/users/local/CNBGYtRv/items/XYDYWZFI,itemDataid71,typewebpage,titleKoala losses double on marketing, non-mattress investments,URLhttps//www.afr.com/companies/retail/koala-losses-double-on-marketing-nonmattress-investments-20181207-h18v5i,authorfamilyBailey,givenMichael,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (Bailey, n.d.). Competitors are making heavier investments such as De Rucci and Clive Palmer and expanding their product varieties yonder the mattresses. Furthermore, the company is selling online and taking advantage of digital technology to improve its profits. Additionally, the Koala is also rated as the best company selling mattresses online as it is also a socially responsible company. They are not only offering the Australian-made, comfy, reasonable and memory foam mattresses but these products are also made by recyclable materials. This shows the companys obligation to eco-sustainability. With this, it is also using the products providing aids to Koala charities for every cushion traded.
Koala current marketing communication mix
Koala is a young company that has successfully combined furniture, and the internet for its marketing purposes. It is offering customers, high-tech designs that are instantly delivered. This has also changed industry practices and now people show more likeness towards this brand and its marketing tactics. The company has the strategy of showing the prompt action and reaction in every aspect of the product (Meyer, Neck and Meeks 2017). They cover all the stages of selling quickly from marketing the product to its delivery. Consequently, it has managed a well-defined sales shift that is continually nourishing its digital advertising. This strategy is also backed with email advertising to remain in a continuous context with customers.
Moreover, the company is customer centred and all its energy goes hooking on customers apprehensions and finding solutions to them. Since its inception, it has always determined its communication strategies to address peoples concern and make them think about its products. Hence, the main aim behind the communication mix is to convey to people that the company is providing them reasonable bedding resolutions along with ensuring outstanding long-term assets for them ADDIN ZOTERO_ITEM CSL_CITATION citationIDJUK2rScJ,propertiesformattedCitation(CAMERON, 2017),plainCitation(CAMERON, 2017),noteIndex0,citationItemsid73,urishttp//zotero.org/users/local/CNBGYtRv/items/5JFP6CRR,urihttp//zotero.org/users/local/CNBGYtRv/items/5JFP6CRR,itemDataid73,typewebpage,title7 ways to run your marketing department like a software startup,URLhttps//www.cmo.com.au/article/626731/7-ways-run-your-marketing-department-like-software-startup/,authorfamilyCAMERON,givenNADIA,issueddate-parts2017,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (CAMERON, 2017). All of the company communication mixes are audience-driven and has connected to their local ethos, eccentricities as well as to quintessentially Aussie outlook.
For instance, in Sydney, it is offering a variety of billboards that capture people attention. Their ads are not only comic but these also show their refined strategy. The company does not go for the traditional billboards marketing and pasting ads about the company and product (Todor, 2016). They are rather exploit billboards in an unlike and clever way and use them for the social sharing of their mattresses and other product ranges. These ads not only target a larger number of audience but these also deliver them an instant message and make them think about the product and how to get it ADDIN ZOTERO_ITEM CSL_CITATION citationIDGcYCQJt4,propertiesformattedCitation(CAMERON, 2017),plainCitation(CAMERON, 2017),noteIndex0,citationItemsid73,urishttp//zotero.org/users/local/CNBGYtRv/items/5JFP6CRR,urihttp//zotero.org/users/local/CNBGYtRv/items/5JFP6CRR,itemDataid73,typewebpage,title7 ways to run your marketing department like a software startup,URLhttps//www.cmo.com.au/article/626731/7-ways-run-your-marketing-department-like-software-startup/,authorfamilyCAMERON,givenNADIA,issueddate-parts2017,schemahttps//github.com/citation-style-language/schema/raw/master/csl-citation.json (CAMERON, 2017). Thus, the company goes for the tickling ad that increases people inspection. This is indeed a successful strategy of affecting the consumers buying decision-making processes. Its marketing helps them find answers to most of the questions that they may encounter while going for this product (Decker at al., 2015). The brand is not doubted fearless in selecting the content and its execution with its audience.
Moreover, Koala is an e-commerce company that also has its presence in social media for enhancing the quality of its commination mix. Accordingly, it is using this media to increase awareness about its products and the worth of its brand. For this, it has several advanced marketing teams that use significant company resources in pursuing this strategy. For example, marketing teams also work and people might have experienced their presence at Instagram also. Here, they use the video making strategy of communicating with their customers. There, they share a photo or video of the product and unbox it. In this way, they go for influencer marketing and change peoples perception about the product forcing them to purchase the product instantly.
Furthermore, the company is customer-focused and b4live in long term relationship management for its long-drawn-out success. Thus, it also continues communication and interfaces with the previous customers to cover them to their recurring customers. For instance, the company goes gathering the customers feedbacks a few months after the use of the product. This improves the organisation relationship with its customers and makes them this feeling too. On the other hand, this approach is also beneficial in improving company future marketing campaigns and effectively target customers. All the feedback collected through this plan is fed into the system and all customers concerns are highlighted and improved. The result is the finest product that is ready to further fulfil the demands of customers.
Alignment with the findings of the research
Koala has a focus on its communication matrix to take care of different factors that affect the customers decisions. These include cultural factors, naturally cool and design factors. All these elements are effectively transmitted through advertisements to the audience. Moreover, findings of the research are clearly showing the equal value of selling either through online or in physical stores for customers. Koala is an e-commerce company that is effectively selling the product online and using marketing and communicating strategies accordingly. Besides, the company is also striving and investing to establish and maintain its brand worth. There are several competitors in the market that are also selling the products at low prices and increasing their profits by serving a greater number of the target market (Hesterly and Barney, 2010). However, the company is determined to be customer focus and for this, it has never compromised with its quality of the products. Thus, it mainly uses its brand worth and quality of its mattress to attract customers rather than going for the low prices as well as quality.
Koala offers mattresses in five different sizes that range from single to king. These are designed to cater to the needs of all ages customers. People who are above 35 are mostly seen with health problems. For them, the company offers a solution in the form of innerspring mattresses. These solutions are shown in their commutation with the customers so they can have the idea about their problem solving and go for its purchase. For this, they also use the reviews of other clients who had previously used these products. These help buyers in getting the friction resolved in the decision-making process. Moreover, these people also have problems while physically going and purchasing products. Thus, these prefer online shopping and are also happier with the delivery quality.
Furthermore, young people both male and female also more inclination towards the hybrid forms that has spring and memory combination. These people also prefer to go online for getting their desired products. Another category is the female buyers that are also seen with different health-related issues. They also like to have hybrid forms with spring and memory combination. This group is in one of the major categories that have a personal liking with the brand. They do not go for economic feasibility as they do not want to compromise with their health. This group is also famous for getting suggestions from their friends and families (Tussyadiah, Wang, and Jia, 2016). Thus, they also serve as good word of mouth for the company. The company also acknowledge this fact and serves them with the best products that can address their health concerns.
Additionally, the company through its commination mix also communicate its different objectives with its consumers. Rather than offering them hundreds of different kinds of stuff the company only design and develop a small number of important merchandises that fulfil their customers needs. This also saves customers from analysis additional products but they straight forward go only for the required mattress. It also saves the company from the additional costs of the showroom and keeping the extra no used items. This is the poof of their increased sales and customers satisfaction with communication strategies.
Likewise, customers are also shown that they are company first preference and it will deliver the product that fulfils their needs. For this, they offer a free trial of the product for 120 nights. If the customer is not satisfied as it is not getting the solution of its issues (Aguinis, Edwards and Bradley, 2017). Then he can communicate the concern and can return the product. Then the company go for designing and fulfilling the specific need of the customer and making it satisfied in the long run.
Recommendations
Koala is a company that is adhering to its local traditions. In its advertising, it also has the same aim to focus on this aspect to gather customer attention and increase the brand worth of the company. Its advertisements show the culture, people taste, preferences and their choices regarding the company product. The company is not old but has successfully maintained its quality with Australia raw material used in the designing and manufacturing of the mattresses. The world is changing and technology is everywhere. It can take advantage of this and can increase its product sales by going internationally (Lasserre, 2017). The company is already maintaining the quality of its products and this will be advantageous for the company to go worldwide with the supreme quality (Ansoff et al., 2018)
Moreover, the company can invest in the R D and can effectively maintain the pool of its customers information. This will help it in addressing their concerns and in turn, increases the sales and product line. For this, it can take advantages of the use of artificial intelligence in all of its products and gain success in combining and analysing its databases. It is already a data-driven organisation through its online sales and is capable of assembling and analysing the vast assortment of marketing data in real-time. This data is can be augmented with the constant feedback loop from customers. However, there is a need to get this data used effectively and for the long-term benefit of both the customers and the company. It is already doing this but the questions often arise on its speed of processing this data as it lacks the use of any specific technology for this.
Additionally, the company is facing the server competition and requiring novel strategies to face them. If it purses this strategic recommendation, then it can easily face the competition with prompt action to any customer requirement (Rothaermel, 2013). This will also save the company costs that it has to second in marketing for retaining the customers. This will make customers satisfied and decrease their marketing requirements.
Additionally, the company should go for divarication and increase more and more products to minimize the risk (Bromiley, McShane, Nair and Rustambekov, 2015). For this, it can add different furniture items as wells increasing the number of mattresses categories. This will save it from the effects of down turning economy. Moreover, it will also increase the number of customers and their long-term association with the company (Wolf, and Floyd, 2017).
References
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of moderation and mediation in strategic management research.Organizational Research Methods,20(4), pp.665-685.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018.Implanting strategic management. Springer.
Bailey, M., n.d. Koala losses double on marketing, non-mattress investments WWW Document. URL https//www.afr.com/companies/retail/koala-losses-double-on-marketing-nonmattress-investments-20181207-h18v5i
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management Review, critique, and research directions.Long-range planning,48(4), pp.265-276.
Belyusar, D., Reimer, B., Mehler, B. and Coughlin, J.F., 2016. A field study on the effects of digital billboards on glance behaviour during highway driving.Accident Analysis Prevention,88, pp.88-96.
CAMERON, N., 2017. 7 ways to run your marketing department like a software startup WWW Document. URL https//www.cmo.com.au/article/626731/7-ways-run-your-marketing-department-like-software-startup/
Decker, J.S., Stannard, S.J., McManus, B., Wittig, S.M., Sisiopiku, V.P. and Stavrinos, D., 2015. The impact of billboards on driver visual behaviour A systematic literature review.Traffic injury prevention,16(3), pp.234-239.
Hesterly, W. and Barney, J., 2010. Strategic management and competitive advantage.Upper Saddle River, NJ.
koala, n.d. koala WWW Document. URL https//au.koala.com
Lasserre, P., 2017.Global strategic management. Macmillan International Higher Education.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship strategic management interface.Strategic entrepreneurship Creating a new mindset, pp.17-44.
Rothaermel, F.T., 2013.Strategic management concepts. New York, NY McGraw-Hill Irwin.
Todor, R.D., 2016. Blending traditional and digital marketing.Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V,9(1), p.51. ADDIN ZOTERO_BIBL uncited,omitted,custom CSL_BIBLIOGRAPHY
Tussyadiah, I., Wang, D. and Jia, C.H., 2016. Exploring the persuasive power of virtual reality imagery for destination marketing.
Wolf, C. and Floyd, S.W., 2017. Strategic planning research Toward a theory-driven agenda.Journal of Management,43(6), pp.1754-1788.
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