Marketing Channel

This report discusses the strategies that Sealy Mattress needs to undertake to expand their distribution channel and brand. It explores the possibility of using social media and digital platforms as alternative distribution channels. It also discusses the variables affecting the distribution channel, such as market demand, product positioning, and brand strategy.

Running head: MARKETING CHANNEL
Marketing Channel
Name of the Student:
Name of the University:
Author’s Note:

2MARKETING CHANNEL
Executive Summary
Sealy Mattress is one of the well-known companies operating in Brisbane Australia. They have
developed their operations in many different countries. In 1950, Sealy introduced its first Sealy
Posturepedic brand mattress, the only mattress in the industry that focused on the importance of
correct back support, designed in cooperation with Orthopaedic Surgeons. Thus it is evident that
this company is providing a very unique kind of a product that can outrun or at least give a very
tough competition to all other companies working in this similar market niche. However, as the
competition is increasing rapidly they have to widen their area of operation and appeal to a large
number of customers. Thus they want to venture into new areas of operation. This report deals
with the different strategies that they have to undertake in terms of their distribution channel and
their brand as well, in order to Wien their area of operation.

3MARKETING CHANNEL
Table of Contents
Introduction......................................................................................................................................4
Possible new alternative channel structures....................................................................................5
Variables affecting distribution channel..........................................................................................6
Market..........................................................................................................................................6
Product.........................................................................................................................................7
Company......................................................................................................................................7
Intermediary.................................................................................................................................8
Environmental..............................................................................................................................8
Behavioral....................................................................................................................................9
Optimum Channel............................................................................................................................9
Criteria used to find channel member..............................................................................................9
Product positioning........................................................................................................................10
Brand strategy................................................................................................................................11
Identifying target audience.........................................................................................................11
Overcoming brand barriers........................................................................................................11
Brand packaging........................................................................................................................11
Crowd sourcing..........................................................................................................................11
Channel management of the suggested new channel....................................................................12
Getting software.........................................................................................................................12
Getting network security experts...............................................................................................12
Using VR or virtual reality concept...........................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

4MARKETING CHANNEL
Introduction
Sealy Mattresses is one of the leading mattress producers in Australia. They operate in
the mattress industry and also in the bedding and furniture industry sector (www.sealy.com.au.
2019). They produce a large number of product ranges. One of their best product ranges is the
Posturepedic bed range. This mattress range is mainly designed by experts so that their
customers get the best use out of the products that they are purchasing. They mainly sell their
products in different stores that run across part of Australia. The company is mainly devoted to
providing the premium and the best service for their customers so that they do not suffer from
any kinds of injuries due to improper sleeping postures. Currently, the distribution channels of
this company are large and wide as they deal with clients that are located in different parts like
Hong Kong, India, Indonesia, Ireland and also different other parts of the country. Thus it can be
said that in the modern day scenario the company is having a large distribution center that looks
after the distribution tasks taking place on a large and wide level. There are two different kinds
of distribution tasks that are carried on by the company in this current scenario, this is because
there are two main departments like the sales department and the logistics department. They
carry on their sales via the physical selling method. The physical or the brick and mortar stores
sell the mattresses so that they can be sold to a large number of customers. The promotion is
mainly done by selling the product ranges in the different conventional furniture stores,
departmental stores, Specialty bedding outlets and many other such places (Krueger and Muhle
2017). However, it must be made sure that the company is following the process of constant de
elopement so that they can stay in the proper competition and can develop their distribution
channels at a faster rate in order to keep proper pace with the changing conditions of the modern

5MARKETING CHANNEL
customers. As this is a special range of beds that are used to mainly for the purpose of providing
a best
Possible new alternative channel structures
The new alternative possible structure that can be developed is the social media or the
digital up gradation in their distribution channel. This is because as they are mainly selling these
products for the purpose of supporting the health benefits, they have to make sure that people
living in different parts of the world are able to use their products just by using the online or the
digital apps. They will have to make sure that all the customers belonging from different kinds of
age group are able to get the products for their use (Hübner, Kuhn and Wollenburg 2016). This
must be noted that the Posturepedic bed range is one of the most highly demanded product in this
modern day scenario as people are often suffering from many orthopedic and health-related
issues (Radwan et al. 2015).
Thus the customers will naturally like to go for some products that will help them to deal
with these problems (Taleizadeh, Akhavizadegan and Ansarifar 2019). Thus the Sealy mattress
company has to work over some online apps or third-party distribution channels that will help
them in order to make their products easily reachable to all their customers. They have to make
sure that the length of their new alternative channel is long and is available in all the different
parts of the world (Ambrose and Harris 2017). This will ensure that their products are being sent
to all the customers living in the local and also the Global level. Thus they have to manage their
online alternative distributive channel in a proper manner. The company will use agents in order
to propagate into the new geographic locations for increasing their trade.

6MARKETING CHANNEL
Variables affecting distribution channel
Market
There is a good demand for the Posturepedic bed range. People in this current scenario
are under huge health pressure. This is because people are under huge stress due to their Work.
Thus, after getting tired they often try to take a long nap. In order to do this, they immediately lie
down on their beds. However, they do not usually keep in mind that right postures about their
sleep. This either takes place due to their ignorance or lack of time. They often feel that taking
some time out from their busy schedules to know about the right postures of sleep is too much
time-consuming. Thus they do not get adequate sleep in the right posture and this leads to many
body or physical ailments. Thus they have to widen their range of products in order to affect their
market demand in a positive manner. Customers in the current market scenario are not only
concerned about the product quality but also about the other additional services (Israel and
Jakobs 2015). In order to appeal to the customers, Sealy Mattresses will have to sell their product
through the online marketing distribution channel so that the customers loaded in different parts
of the country can get to see all the necessary details about the products and then make their
purchases (Kahn 2018).
Customers both from the local and the global level can check all the product details and
place their orders. They will also be able to get the assurance they these products will reach them
right at their homes or any other kinds of desired locations. Thus they will be able to enjoy a
proper service.

7MARKETING CHANNEL
Product
It must be noted that the company Sealy Mattress is selling a very useful product. The
Posturepedic bed range is one of the most useful and healthy products that is needed by the
customers. A large number of customers are suffering from bone disorders and another
orthopedic disease. Thus they are being recommended by the hospitals to get the right kind of
mattress so that they can sleep in the right manner. This company provides the only mattress in
the industry that focused on the importance of correct back support, designed in cooperation with
Orthopaedic Surgeons. Sealy Mattresses will be a greater advantage as they are selling a
particular specialized premium bed range that will help the customers in dealing with their
problems. As Sealy Mattresses mainly want to propagate their business into different parts of
Australia they will have to use the online or the digital channels so that they can understand
about the needs and demands of their customers located in different other parts of the country
(Baltes 2015).
Company
Sealy Mattresses is one of the leading companies that is selling the premium range
mattresses for their customers. They have also tried their level best to meet with the demands of
a large number of customers who are located both on the local and on the Global level. They are
also trying to cater to all the needs and demands of their customers (Syed AlwiL et al. 2018).
One of the very important and unique features that have been implemented by them is including
sleep advice from the experts. Thus collaborating with the health experts have been a very
important step for them in order to create a strong appeal to their customers. Using strategies like
this will help them to give a very tough competition to their competitors. The natural bedding

8MARKETING CHANNEL
company and the mattress company are some of the leading and well-known organizations of
Australia that usually tries to give a very tough competition for the customers.
Intermediary
The Sealy Mattress Company can use different kinds of intermediaries in order to
strengthen its communication channels. This is because of without the help of the intermediaries
or the middlemen they will not be able to carry on with their business in a proper manner. As
they have thought of creating the alternative online or the digital platform for strengthening their
distribution channels they will have to take the help from many retailers, wholesalers and also
some of the agents. Many other cosmetic companies like Avon, Amoy and also many other such
organizations have used the concept of intermediaries in order to reach to new customers.
A very good example is the beauty company Avon that has used the intermediaries to
reach to a large number of customers. These agents try to make an appeal to the customers by
undertaking an open and easy communication with them. Agents are trained to make an appeal to
the targeted customers (Ailawadi and Farris 2017). Sealy Mattress will also have to hire some
agents who will undertake online meetings or discussions with the targeted customers in order to
narrate all the important details about their new and premium range of products. These agents
will also be present in order to undertake customer queries and solve them effectively at any
point of the day.
Environmental
Australia has a more or less stable environment. Thus it will be easier for the company to
venture into the new areas. They will be able to abide by the political rules easily as they are
most stable in nature.

9MARKETING CHANNEL
Behavioral
The behavioral attitude of the Australian workforce is also very customer friendly. They
have a hardworking and multicultural workforce that will help in easily making an appeal to
customers belonging from multicultural backgrounds.
Optimum Channel
An agent or broker must be used by the organization as their new product distribution
channel. This is because the company is trying to venture into new stretches in Australia. Thus it
is important for them to understand the current patterns of customer demands. Hiring an agent
will be useful for the company to appeal to their customers on a personal level. One of the best
strategies to connect to the customers is by giving them an unforgettable experience. Thus an
agent will be able to interact with the customers, help them in understanding the advantages of
using these products and the current offers that are going on in the company. Online transaction
of products will be much easier if it is done with the help of an agent.
Criteria used to find channel member
The criteria used will be to arrange for interview sessions. The interviews will be carried
on not only in the Brisbane region of Australia but from different other parts both local and
Global scale. The candidates will be assessed mainly on their customer handling capacities,
knowledge Posturepedic bed range. They will also have to appear for a communication skill test.
In this test, they will be assessed on criteria like listening, reading, writing and speaking
(Bilgihan and Bujisic 2015). They will also have to be tested on the criteria for persuasion and
negotiation techniques.

10MARKETING CHANNEL
Product positioning
Sealy Mattress
Natural Natural Bedding Company
Figure 1: Product Positioning of Sealy Mattress
Source: (www.sealy.com.au)
Sealy Mattresses will have to provide some discounts or offers on their products so that
they can appeal to all the customers belong from different income groups. They have to provide
their products at an affordable price so that they can be afforded by customers belonging from
the medium income group as well (Hajli et al. 2017). This will help them to stay in the
competition and give a tough competition to other existing competitors in the market.
HIGH QUALITY
HIGH PRICE
LOW
PRICE
LOW QUALITY

11MARKETING CHANNEL
Brand strategy
Identifying target audience
Sealy Mattresses have identified a properly targeted customer that includes people
belonging from all age groups like children, young adults, and elder people as well. Sleeping in
the right posture is one of the healthiest aspects and is a demand for all customers. Thus there
will always be a strong demand for their products among these customer groups
Overcoming brand barriers
One major barrier is the distance or the lack of awareness about their product among
customers. Thus developing online marketing channel along with the hiring of an agent will be
the best option for them.
Brand packaging
Sealy Mattress has to add some special effect to their packaging in order to connect to the
emotions of their customers. As their product will provide health benefits to their customers they
can have some nice messages on a paper left inside the boxes (Ambrose and Harris 2017).
Crowd sourcing
Sealy Mattress have to make people aware of the uniqueness of their brand by making an
entry into the new market stretches. Thus they have to provide the customers with some unique
services that they have not received earlier. This can be done by letting customers be a part of the
brand naming process or taking their valuable feedbacks in all the important business decision
processes.

12MARKETING CHANNEL
Channel management of the suggested new channel.
Getting software
Sealy Mattress will have to get the right software for ensuring that their product is
reaching to targeted customers in an effective and time optimizing manner. They will have to use
software that will help them to store all the important business data and customer data in an
error-free and easy manner. In order to keep all booking channels up to date, they will also have
to collaborate with an experienced channel manager
Getting network security experts
Online sales come with both advantages and disadvantages. Thus the company has to
ensure that there is no data loss or fraudulent bookings going on on their website or online
booking apps. To prevent double bookings or double cash debiting activities from its customers,
the company will have to use proper network securities. This will ensure a completely safe and
secure gateway for all transactions.
Using VR or virtual reality concept
Sealy Mattress wants to enter into new market regions ion this modern scientific age.
Thus they will have to make use of the most recent technologies to make an appeal to their
customers. In order to make customers aware of their brand they must give a very dynamic
experience to their customers. They can use the video calling facilities to interact with remote
customers and share a 3D clip on their products that will help customers to get some idea about
the product.

13MARKETING CHANNEL
Conclusion
Thus it can be concluded that Sealy Mattresses is currently doing a good job by taking
care of the health aspects of their customers. However, in order to enter into new market
stretches of Australia, they will have to use all the modern and updated scientific technologies
that will help them to connect with remote customers as well. They can hire an agent that will
help them in getting more business by undertaking communication and personal selling with
customers. The agent will take up the responsibility of negotiating the price and the best deals of
their company with the prospective targeted customers.

14MARKETING CHANNEL
References
Ailawadi, K.L. and Farris, P.W., 2017. Managing multi-and omni-channel distribution: metrics
and research directions. Journal of retailing, 93(1), pp.120-135.
Ambrose, G. and Harris, P., 2017. Packaging the brand: the relationship between packaging
design and brand identity. Bloomsbury Publishing.
Baltes, L.P., 2015. Content marketing-the fundamental tool of digital marketing. Bulletin of the
Transilvania University of Brasov. Economic Sciences. Series V, 8(2), p.111.
Bilgihan, A. and Bujisic, M., 2015. The effect of website features in online relationship
marketing: A case of online hotel booking. Electronic Commerce Research and
Applications, 14(4), pp.222-232.
Hajli, N., Shanmugam, M., Papagiannidis, S., Zahay, D. and Richard, M.O., 2017. Branding co-
creation with members of online brand communities. Journal of Business Research, 70, pp.136-
144.
Hübner, A., Kuhn, H. and Wollenburg, J., 2016. Last mile fulfilment and distribution in omni-
channel grocery retailing: a strategic planning framework. International Journal of Retail &
Distribution Management, 44(3), pp.228-247.
Israel, A. and Jakobs, M., 2015. Germany: Challenges from New Online Practices to Established
Competition Law Principles. Journal of European Competition Law & Practice, 6(8), pp.588-
594.

15MARKETING CHANNEL
Kahn, B.E., 2018. The Shopping Revolution: How Successful Retailers Win Customers in an Era
of Endless Disruption. Wharton Digital Press.
Krueger, B. and Muhle, J., 2017. The EU's Vertical Restraints Rules and E-Commerce-A Case
for Continuity, Modification or Distruption. CLPD, 3, p.34.
Radwan, A., Fess, P., James, D., Murphy, J., Myers, J., Rooney, M., Taylor, J. and Torii, A.,
2015. Effect of different mattress designs on promoting sleep quality, pain reduction, and spinal
alignment in adults with or without back pain; systematic review of controlled trials. Sleep
health, 1(4), pp.257-267.
Syed Alwi, S.F., Pitelis, C., Georgiadis, A. and Zarantonello, L., 2018. Inter-national Branding
Strategy and its Effect on Brand Performance: A Comparison Between the USA and China”.
Taleizadeh, A.A., Akhavizadegan, F. and Ansarifar, J., 2019. Pricing and quality level decisions
of substitutable products in online and traditional selling channels: game‐theoretical
approaches. International Transactions in Operational Research, 26(5), pp.1718-1751.
Wheeler, A., 2017. Designing brand identity: an essential guide for the whole branding team.
John Wiley & Sons.
www.sealy.com.au. (2019). Mattresses & Beds Online from Sealy Australia. [online] Available
at: https://www.sealy.com.au/ [Accessed 16 May 2019].
Zenker, S. and Braun, E., 2017. Questioning a “one size fits all” city brand: Developing a
branded house strategy for place brand management. Journal of Place Management and
Development, 10(3), pp.270-287.