Koala Mattress Marketing Strategies

This assignment examines effective marketing strategies for Koala mattresses. It delves into leveraging social media, fostering customer loyalty through initiatives like a generous trial period, and exploring new product avenues such as a travel-friendly mattress. The analysis considers customer skepticism towards extended trials and the potential benefits of catering to travelers' sleep needs.

RUNNING AHEAD: Think Big: Koala Mattress
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THINK BIG: KOALA MATTRESS
STUDENT NAME
UNIVERSITY NAME

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Executive Summary
Koala Mattress is a new organization but they understood the expectations of the people and
they came up with something that would be loved by everybody. Their mattress would be
loved by people who suffer from lack of sleep. The lack of sleep would be due to improper
mattress or shaky mattress. If an individual is not aware of the problem then they can try
Koala mattresses for 120 days and then they can make a decision on whether they would like
to buy it or it.
Koala as an organization is dependent on online sales and word of mouth communication for
marketing. They will have to explore other areas as well so that they can reach out to more
customers and the same time, they would continue to be sustainable in the market.
The technology used in Koala mattress can be easily copied and hence, the business should
continuously innovate to stay ahead in the competition. Koala mattress should also explore
direct sales so that people can walk-in to their store and have a look at the product, before
they make a decision to buy it.

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Table of Contents
About the business.................................................................................................................................1
Business canvas model of Koala mattress.............................................................................................1
Critical success factors for sustainable success......................................................................................5
Downside risk for Koala mattresses......................................................................................................6
Changes required in Koala mattress......................................................................................................7
References.............................................................................................................................................7
About the business
Koala mattress was found in the year 2015, by Danny Milham and Mitch Taylor.
Have good quality and quantity sleep is every important and this organization is a result of
Danny’s dependency on coffee to stay alive, awake and active throughout the day. The team

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ensured to introduce the best possible mattress that meets with the requirement of
Australians. The team loved the memory foam mattress, but they released that it too hot and
hence, is not suitable for Australian weather conditions.
Koala mattress every well understands the fact that one can be disturbed even when
one has a restless partner, who rolls all night. Koala mattress ensures that the movement of
one partner doesn’t disturb the sleep of other. Zero disturbance features with softness makes
this mattress better than that of the other competitors available in the market. Apart from that,
the team also ensures that the mattress is delivered in 4 hours and the user also gets 120 days’
of free trial.
Business canvas model of Koala mattress
The business canvas model of Koala mattress will help to understand the business of
Koala mattress and also the areas wherein they need to improve. The business canvas model
of Koala mattress is discussed below.
Key partners – Koala mattress has partners who help them to reach out to the
customers. First and foremost, they are majorly dependent on the website for sale. They have
partnered with the website Development Company and also customer care. The customer
care systems are maintained by an external party. Finally, the organization is highly
dependent on agents to deliver the products on time (Michalos 2014).
Key activities – The key activities undertaken by the basis on daily basis to reach out to
the customers are as follows: -
 Online marketing to reach out to people who are searching for a mattress
 Offline marketing like billboards and posters at local places so that the customers
can be aware of the existence of the organization

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 Recruitment right people to ensure that they discover more products that can offer
better sleep.
Value propositions – There are certain features in this mattress due to customers opt for
this over the other similar mattresses available in the market. Few of the value propositions
are as follows: -
 This is targeted towards sleep deprived people
 This is best for people who have restless partners.
 120 days of free trial and then the buyer can make a sound decision
 The mattress would be delivered in 4 hours if the customers stays in a metro
(Tschopp 2014)
Customer relationships - They believe in reaching out fast to the customers and hence,
they look techno-friendly ways to build customer relationships. Few of the ways by which
they maintain customer relationship are as follows: -
 Customer care
 Live chat
 Email
 Apart from that, they have their presence in various social media websites as well
(Watts 2015).
Customer segments - Few of the customer segments that are served by Koala mattress
are as follows: -
 People dependent on coffee to keep them going throughout the day

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 Anybody suffering from lack of sleep due to discomfort
 People suffering from lack of sleep due to restless partners
Key resources - The organization is dependent on few key resources to keep the business
going and they are as follows: -
 Website development team
 Good research and development team
 Online payment systems to ensure that payments are made smoothly via website
Channels - Koala mattress reaches to its customer through various channels and they are
as follows: -
 Website – They don’t have agents and hence, the sale is completely dependent on the
organization’s website
 Word of mouth – Positive feedback from customers who have used their product
boosts the sales of the organization
 Online search engine – If anyone in Australia or New Zealand is planning to buy
mattress, then Koala should appear on the top so that it can be considered by the
customer while buying (Wharton 2015).
Cost structure - Various costs are taken into consideration while the cost of the product is
decided. Few of the costs that contribute to the cost of the product are as follows: -
 The raw material used in the mattress contributes to the major chunk of the cost
 The employees working in the organization are paid salary

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 The organization pays a huge amount on maintaining its website, customer care
department and also delivery team
Revenue streams - The organization is solely dependent on sales of mattress, bed base,
bed sheets and sofa for the revenue (Markota 2015).
Relationship between the nine building blocks
It is very important for Koala Mattress to understand the key relationship between the
nine blocks so that they can put in more efforts to enhance the organization’s offerings to its
customers. The importance of each is elaborated below.
 Customer segments are the most important block to consider. Koala needs to identify
their customers so that they can produce products accordingly
 Value propositions offered by Koala mattress’ customers to make a decision if they
need to reach out to the organization or there are better products available in the
market (Li 2013).
 Koala should decide on appropriate channels so that the products can reach out to the
customers within the expected time and also in the best possible state.
 The organization will have to maintain good customer relationships so that the
customers can share their real concern and expectation with them.
 Customer relationships will create an impact on the revenue stream. If the
organization is ignorant about customer relationships then customer may be ignorant
about buying Koala mattress.
 Based on the revenue generated, Koala can make a decision on the key resources that
they would require further to sustain in business.

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 After key resources are decides, Koala would proceed towards the key activities that
would ensure that the product is in place as expected by the customer (Frias 2013).
 Koala also needs to decide on the key partnerships that they need to maintain so that
the key activities are delivered to the end-user
 Finally, after everything is put in place, the cost structure would be understood by the
management and accordingly, the product needs to be priced
(De Villiers 2014).
Critical success factors for sustainable success
Few of the areas wherein Koala needs to pay extra attention so that they can enjoy
sustainable success are discussed below.
Koala mattress should ensure that they pay extra care to their marketing strategies that
they are using. Today’s customers are extensively dependent on social media to make buying
decisions. Koala should ensure that they keep the customers informed about the complete
product information. Apart from that, they can organize few contests and competitors to
engage the viewers (Frias 2013).
Koala mattresses should continuously talk to customers and understand the reason
behind which they are not getting their well deserved sleep. This will help Koala mattress to
come up with better solutions to satisfy the customers further.
Most of the organizations today have got a nap area so Koala can target these
companies. If the mattress is good then the employee would love the mattress, enquire about
it and finally, make a decision to buy it at home as well (De Villiers 2014).

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Downside risk for Koala mattresses
It is very important for every business to understand the risks associated with them so that
the business can continue to grow and be liked by the customers. Similarly, Koala mattress
also has some risks associated with its product which they need to look into so that they can
grow. Few of the downside risk for Koala mattress are as follows: -
 The technology used in Koala mattress is not very confidential and hence, plenty of
other mattress manufacturing companies are copying it. It is very important for Koala
mattress to innovate continuously so that they can stay ahead of the competitors who
are copying them (Das 2013).
 The organization needs to improve its marketing so that they can reach out to more
customers. As of now, Koala is more dependent on word of mouth promotion rather
than anything else.
 Competitive pricing is one area which Koala needs to venture into. Not all the
customers can afford to have Koala mattress because of the price being slightly higher
than other similar mattresses available in the market (Berinde 2015).
Changes required in Koala mattress
First and foremost, the organization needs to change the marketing strategy that they
are currently following. By the current marketing strategy, the team is not able to reach out to
all the prospective customers (Bahfen 2015).
Secondly, the organization can have their stores where the customers can walk in and
experience the product before they buy the product. Most of the customers would be sceptical
to have a 120 days free trial before they pay for it.

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Finally, Koala mattress can also explore the option of having travel friendly mattress.
Most of the travellers suffer due to lack of sleep and this product would really back life in
them and hence, they would love to explore it (Alonso 2015).
References
Alonso, D (2015). Sustainability and social responsibility reporting in open source software.
International journal of the commons. 9(1). Pp. 369-397
Bahfen, N (2015). Tweeting, friending, reporting: Social media use among journalism
academics, students and graduates in the Asia-Pacific. Pacific Journalism Review. 21(2).
Pp. 173-184
Berinde, M (2015). Reporting corporate social responsibility according to GRI standards.
Annals of the university of Oradea: Economic science. 9(1). Pp. 17-23
Das, S (2013). Corporate social reporting and human resource disclosures: experiences from
insurance companies in India. Social responsibility journal. 9(1). Pp. 19-32
De Villiers, C (2014). The institutionalisation of corporate social responsibility reporting. The
British Accounting review. 46(2). Pp. 198-202
Frias, A (2013). The role of the board in the dissemination of integrated corporate social
reporting. Corporate social responsibility and environmental management. 20(4). Pp. 219-
233
Li, Y (2013). Towards the theory of social responsibility reporting. Chinese Management
Studies. 7(4). Pp. 519-534
Markota, N (2015). Corporate social responsibility reporting: differences among selected EU
countries. Business systems research journal. 6(2). Pp. 63-73

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Michalos, A (2014). Angus Campbell: A pioneer in social indicators and social reporting.
Applied research in quality of life. 9(3). Pp. 911-945
Tschopp, D (2014). The harmonization and convergence of corporate social responsibility
reporting standards. Journal of business ethics. 125(1). Pp. 147-162
Watts, S (2015). Corporate social responsibility reporting platforms: enabling transparency
for accountability. Information technology and management. 16(1). Pp. 19-35
Wharton, T (2015). Rigor, Transparency, and reporting social science research: Why
guidelines don’t have to kill your story. Research in social work practice. Pp. 152-159