Koala Mattress: Marketing Strategies and Environmental Analysis

This report provides a comprehensive analysis of Koala Mattress's marketing strategies and brand positioning in the Australian market. It begins with an executive summary outlining organizational tactics, strategic planning, and the importance of marketing efforts in the industry. The report then delves into Koala's unique brand positioning, highlighting its innovative billboard and video marketing campaigns, exceptional product offerings, and outstanding customer support. It also explores Koala's influencer marketing strategy, leveraging micro-influencers to reach a wider audience. A macro-environmental analysis using the PESTLE framework is presented, examining political, economic, social, technological, environmental, and legal factors influencing Koala's market performance. Furthermore, a micro-environmental analysis, including a SWOT analysis, assesses Koala's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of the key findings and their implications for Koala's continued success in the competitive Australian mattress market.

Running head: MARKETING
MARKETING
Name of the Student:
Name of the University:
Author note:

1MARKETING
Executive Summary
Organizational tactic bring up market positioning of an organization which additionally
expresses the way a business is concentrated in terms of features linked to shoppers, market
competitions and departmental dynamics to bring success. Effective strategic planning calls for
improvement in the trade for understanding distance which are prompting the situation as well as
the machinery by which such an accepting tends to occur and consequently create marketing
strategy. Marketing efforts accompanied by industries attain authorization on pricing of products
as well as services which not only efficaciously reaches the targeted consumer base but also
reaches other market rivalries in order to withstand is competitiveness in the market. Marketing
proficiencies also is likely to underwrite to the international expansion of new undertakings in
overseas by influencing companies’ decision of selecting correct entry modes, which include
higher resource participation in overseas markets. Moreover, it has been inspected market
sensing, Customer Relationship Management (CRM) accompanied by brand management be
likely to explain organizations’ revenue growth and profit margin. The following report has
focused on Koala mattress in Australia and identified its brand positioning and factors
persuading its market approaches and presentation.

2MARKETING
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Brand positioning in Australia.....................................................................................................5
Koala Mattresses’ Unique Billboards and Video Marketing...................................................5
Koala Mattresses’ Exceptional Product Offerings..................................................................7
Koala’s outstanding customer support.....................................................................................7
Koala Mattress Unique Influencer Marketing Strategy...........................................................8
Koala Mattress Unique Influencer Marketing Strategy...........................................................8
Macro Environmental Analysis of Koala Mattress- PESTLE.....................................................8
Political Factor.........................................................................................................................8
Economic Factor......................................................................................................................9
Social Factor..........................................................................................................................10
Technological Factors............................................................................................................10
Environmental Factors...........................................................................................................11
Legal Factors.........................................................................................................................11
Micro Environmental Analysis..................................................................................................12
SWOT Analysis.........................................................................................................................12
Strengths................................................................................................................................12
Weaknesses............................................................................................................................13

3MARKETING
Opportunities.........................................................................................................................13
Threats...................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

4MARKETING
Introduction
For a successful business marketing strategy, it is important to recognize every factor
which is going on local and global market. Organizational strategy refers to the market
orientation of an organization which further defines the way a business is focused in terms of
factors related to consumers, market rivalries and departmental dynamics in order to deliver
success. Effective strategic planning calls for improvement in the business for understanding
distance which are influencing the situation as well as the mechanism by which such an
understanding tends to occur and subsequently create marketing strategy. The concept of
leveraging marketing strategy across several markets is highly beneficial (Plane and Berman
2019). It not only saves efforts as well as resources but for the guarantees and extensive degree
of consistency amongst all in market branding swell as activities. Marketing further fosters
environment within the industry for robust completion. Marketing efforts conducted by
businesses attain confirmation on pricing of products as well as services which not only
successfully reaches the targeted consumer base but also reaches other market rivalries in order
to sustain is competitiveness in the market (Trakic and Xnova 2017). Marketing competencies
also tend to contribute to the global expansion of new ventures in overseas by influencing
companies’ decision of choosing correct entry modes, which include higher resource
participation in overseas markets. Moreover, Keever and Colonial (2016) have examined market
sensing, Customer Relationship Management (CRM) along with brand management be likely to
explain organizations’ revenue growth and profit margin. The following report will aim to focus
on Koala mattress in Australia and identify its brand positioning and factors influencing its
market strategies and performance.

5MARKETING
Discussion
Brand positioning in Australia
A robust brand positioning is much more significant than creating logo or advertising. A
strong brand builds as well as maintains strong, deliberate perceptions in the minds of consumers
and employee base. Jeng et al. (2019) consider brand positioning as a core part of company’s
marketing strategy and shares unique language in order to communicate with customers as well
as stakeholders. Sydney-based Mattress Company, Koala is successfully creating striking
billboards which are targeting its market rivalry Clive Palmer and IKEA.
Koala Mattresses’ Unique Billboards and Video Marketing
A major shift from the usual standard of mattress brands, Koala’s mischievous and
unconventional billboard strategy has been initially revealed in 2018 when the company decided
to restructure its outdoor marketing strategies by famous furniture brand De Rucci. However, the
latest billboard marketed by the company involves a ‘NOFNIDEA’ Ikea-themed billboard along
with an additional one that has been inspired by Clive Palmer’s recent marketing strategy. Koala
mattress makes strategic selection of location for their billboard which is noticeable nearby the
brand of its competitors (Koala.com 2019). Additionally, the company captures images of the
billboard and pits them to news and social media in order to successfully generate public
relations. On the other hand, it generates the images of billboards on social media advertisements
in order to aim new viewers and start shifting them down the channel.

6MARKETING
Koala Mattresses’ Unique Billboards
Source: Abratt, Higgs and Nel 2015
Koala has been using video promotion since they initially launched. As per reports , one
of their initial videos of an individual jumping on Koala mattress with a glass of red wine
relaxing on the sofa has received significant attention, rapidly expanded their brand. However, in
recent times, Koala has extended its video marketing initiatives by employing their permanent
internal producer as well as video editor. Recently, they have amplified their video marketing
exertions by hiring their own full-time internal producer as well as video editor. The company
strategically operates their video production besides advertising similar to its growth channel,
with more or less everything executed internally in order to create exceptional rapid advertising
video ideas, successful execution and repost it and evaluate the persuasive ones on the stages on
which Koala performs predominantly (Plane and Berman 2019). As per reports, Koala marketers
have been implementing the ICE prioritisation technique in order to choose types of videos to
make based on positioning each concept by influence, confidence and easiness of execution.
Furthermore, according to Zutshi et al. (2016), one of the fundamentals to Koala’s

7MARKETING
accomplishment in video advertising relies on their creative team as well as their performance
team which operate in amalgamation on each of the projects for executing rapid advertisements
on social media and receive the feedback-loop from buyer to performance to inventive, which
results in creating improved video marketing strategies for prospective advertising.
Koala Mattresses’ Exceptional Product Offerings
In the view of Burt, Johansson and Dawson (2015), Koala Mattresses know that the
product offering of its company is of high-value, standard market quality. Nevertheless, the
brand has successfully positioned itself as a highly favourable company for wide range of
purchaser starting from youngsters to the elderly who seek to purchase mattress featuring
distinctive open-cell foam layer at a great price.
Koala’s outstanding customer support
Koala Mattress has attained substantial prominence for its exceptional level of support
and assistance it offers to its customer base. As pee reports, Koala takes care of every aspect of
its customer services starting from providing unremitting assistance to customers for choosing
correct success in store or customers’ seeking for online delivery in utmost seamless approach.
Customers in recent times have exhibited great inclination towards hassle-free shopping
experience whether purchasing food products, electronic merchandise, apparels or mattresses for
their comfort sleep (Jacob-John and Ching 2019). By drawing relevance to these factors,
Mehringer et al. (2016) have mentioned that, delivering customers’ demands and requirements
precisely is considered to be highly imperative in this competitive business setting. Koala
mattress has taken this factor with utmost seriousness to sustain its brand positioning in the
Australian retail market.

8MARKETING
Koala Mattress Unique Influencer Marketing Strategy
Koala Mattress Unique strategy of targeting range of micro-influencers has attained
significant attention in the Australian retail market. As per Cleaver, Jo and Muller (2015), the
micro-influencers are categorized as people who have considerable social media followers
ranging from 5,000 people to 700,000 excluding celebrities. Each of these influencers of Koala
Mattress brand has an intention of creating their individual content and have been provided with
unique coupon code which would enable their followers to use for getting around 15%
concession on purchase of Koala mattress. With the exceptional marketing strategy of displaying
Koala product, the social-proof to their followers would be highly resounding and would
generate greater productivity in comparison to ad campaigns.
Koala Mattress Unique Influencer Marketing Strategy
Source: Niu et al. (2019)
Macro Environmental Analysis of Koala Mattress- PESTLE
Political Factor
As per reports, retail sales have regular cycles which have been encountering disruptions
by external events related to federal elections. While, anecdotally it has recommended that

9MARKETING
uncertainty regarding elections has led buyers in Australia to make savings thus impacting
unconstructively on consumer spending. However, as per reports, Koala mattress services have
not yet faced any critical impact on its sales growth, but will be affected by the forthcoming
budget as well as Federal election, not only in the consumer space. Meanwhile, reports have
revealed that considerable impact would be observed particularly in the commercial media space
with an upsurge in government outlay blocking out inventory consequently constraining retail
brands into leftover, incompetent placements (Forbes, Cook and Hyndman 2019). At this
juncture, companies like Koala mattress with major competition must focus on timing and
strategy which would serve as an effective method for success. Historical movements along with
the approach of political media finances have indicated a propensity to witness an outpouring of
advertising in these years, subsequent to the Federal election.
Economic Factor
Australian retail has dropped unexpectedly in 2019 that has been determined by the
decline in New South Wales as well as Queensland. Conferring to the Australian Bureau of
Statistics (ABS), retail revenue has dropped by 0.1% in 2019 in seasonally-adjusted connections,
an upshot well below the 0.2% upsurge anticipated by financial markets. With location
preferences, sales has fallen by 0.4% respectively in New South Wales as well as Victoria, not
only Australia’s most crowded states but moreover where home charges drop at the fastest over
the last years (Simshauser and Tiernan 2019). However, companies like Koala can witness a
robust growth, but will be a neat-term improvement which would not persist into 2020 regardless
of any further development in income growth.

10MARKETING
Social Factor
The way Australian citizens have been selecting their product items have been
undergoing significant changes. Consumers in recent times have inclination towards greater
range of choices and flexibility in the way they purchase products and pay for their
consumptions. Customers not only prefer exceptional qualities must also look for excellent and
rapid customer services. Koala, though is a 3 years old start up, has been offering integral
customer support to its clientele. Furthermore, with growing social media trend and activity,
Koala can attain substantial amount of customers from its unique branding strategy and video
advertising (Best, Burke and Nishitateno 2019). As per reports, young Australians are embracing
messaging platforms such as Facebook Messenger, WhatsApp and Snap chat, which are helping
Koala Mattress to obtain significant number of customers.
Technological Factors
Technology has already undergone significant transformations in the retail industry
beyond recognition where more or less every customer is recognized as an online customer
starting from college goer to elderly citizens. Furthermore, the end-to-end purchaser journey has
initiated with digital research as well as product comparison and complaining regarding product
or service and public as sending a tweet or Facebook comment, stimulating instant action before
reputational damage occurs (Best, Burke and Nishitateno 2019). Technological developments
tend to pose constructive impact on business strategy of Koala Mattress. As per reports, Koala
Mattress has been judiciously engineering its products by using ‘world-first’ innovation in
technology in addition to offering excellent materials that make the product generally
comfortable for all its consumers (Simshauser and Tiernan 2019). Moreover, from a
manufacturing standpoint, the products of Koala are produced in Australia and are used in three

11MARKETING
exclusive layers of up-to-date polyurethane foam. It is a product that is primarily used in
numerous ‘memory foam’ style cushions. However, Koala claims that the way it has put together
its product and technology has elevated its uniqueness of its brand.
Environmental Factors
Customers in recent times have become highly environmentally conscious. The
Australian Business Council for Sustainable Energy, sustainability has developed more than just
an environment issue. It includes developing an economy which has been based on triple-based
on triple bottom-line values such as people, planet and profit. The retail sector requires
developing regulations and policies which embrace the values in a way the retail sector conducts
its business (Forbes, Cook and Hyndman 2019). Thus, retailers in recent times are addressing
ways to incorporate policies as well as practices which are responsive to customers’ demands
and needs. Koala mattresses always have an intention to act as a social good business and thus
named its company Koala in order to relate it to the animal that sleeps around 18 hours every
day. As per reports, Koala has been continually donating 1% of sales towards ecological causes
and the start-up has donated over $1,000,594 in support of wildlife adoption programs with
customers adopting programs with purchasers adopting koala. Furthermore, with an intention of
lessening the environmental temperature, Koala has collaborated with the World Wildlife Fund
on Milman Island that is located off the coast of far north Queensland in order erect artificial
shade structures with natural share structures made from palm fronds and pandanus leaves and
via sea water irrigation (Cleaver, Jo and Muller 2015).
Legal Factors
Furniture e-tailer Koala has increased revenues 91% in 2017-2018, however losses has
intensified as Sydney-based start-up invested significantly in marketing and expanded its product