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Koala Mattress


Business Model Of Koala Mattress


Discuss about the Business Model of Koala Mattress.  

koala mattress


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 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.

koala mattress

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
  • Recruitment right people to ensure that they discover more products that can offer better sleep. Get Assignment help UK with us !!

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).
koala mattress

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
  • 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. Get HND Assignments now with us !!

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. Get My Assignment help with us. 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
  • 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).

koala mattress

Relationship between the nine building blocks for koala mattress

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.
  • 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).

koala mattress

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.

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).

koala mattress


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