Report on Kurl-on case

Case facts
1. Consumer behaviour: Sales in some of these countries were getting saturated
as customers were developing a strong preference for full foam or spring-
based mattresses.

2. Product: The company offered approximately 94 varieties or models of mattresses

under these five sub-brands.

3. Promotion: Kurlon’s positioning statement was changed to “pure sleep,

nothing else.” Advertisements were considered a very important source of
information by kurl-on.

4. competitors: Duroflex, Coirfit, Springwel, Sleepwell

5. Market segmentation: Segmented market into economy seekers, value

seekers, comfort seekers and attribute seekers.

6. Price: Products varying from 999₹ to 11999₹.

7. Dealers: The dealers get around 20% of margins.

Problems of kurlon brand

1. Too many offerings in their portfolio: The company offered approximately 94

varieties or models of mattresses under these five sub-brands. This has confused
buyers which led them to buy competitors’ brand.
Solutions:

1. Simplify their offerings and drop out the poor performing categories.

2. Effective communication and awareness of their offerings to customers to end their

confusion.
Solution chosen from the above: I chose the first solution of minimising the product
offerings because communication to customers through advertising would lead to rise in
costs.

2. Poor Dealer support strategies: Most of the competitors offer many tempting
promotional schemes like foreign trips, huge price discounts, high margins, and
costly gifts to dealers who perform well compared to kurl-on.
Solutions: The company needs to increase the dealer promotion budget and introduce more
attractive schemes.

1. Increase margin for dealers.

2. Provide non-financial incentives for the dealer with higher sales.

Solution chosen from the above: I chose the second solution of Providing non-financial
incentives because increasing the margin would lead to rise in price for the customers.

Swot analysis

Strengths Weakness

 Poorly motivated
 Brand name. dealers.
 Quality products.  Too many sub-brands.
 Above the line
promotion.
SWOT
ANALYSIS

Opportunities Threats

 New markets.  Closest competitor-

 Fulfilling rural Duroflex.
market needs.  Lacks brand loyalty.