casual comfort.1

7/31/2019 Casual Comfort.1

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CASUAL COMFORT

Case Analysis

By:Ayush Goyal(2011MB0001)Prachee Parwanee(2011MB0003)

Madhurendra Kumar(2011MB0005)Lopa


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Summary

Two university graduates have an idea ofbean bag business.

Vision to make high quality bean bag chair. Want to make it available to students at

comparatively cheaper prices.

For the same trying to make a marketingplan.


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Key facts

Bean bag are flexible, easy to move andcomfortable.

Targeted customer i.e. students can becategorised into two groups: freshmen andupperclassmen.

70% of students live in on campus residencesand a small bean bag chair may not be an

attractive options for them The popular perception for bean bag is that it

is sloppy, poorly made and not attractive.


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Contd..

The material and design is the key factor forthe product to be a success.

There are three possible ways of making

the product available to the students: Selling to local stores

Selling to campus outlets.

Selling directly to students.

Competition is quite minimal.


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Contd..

Due to high fixed cost they have decided tosell the chairs unstuffed.

They want to make money devoting minimal

time.

They have decided to produce to order thanstocking.

Promotion is critical for this business. There are opportunities to sell the product to

other university students.


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Case problem

Lee and Michael want todesign a furniture product foruniversity students i.e. beanbag chairs which is attractive,

durable and of high qualitywhich can break the so calledperception that bean bagchairs are sloppy, poorly madeand not attractive and make itavailable at fairly cheaper priceso that it can be affordable forstudents.


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Target Customer

Freshmen

staying at on campus residents.

have to be convinced that beanbag can be a good

furniture alternative. Upperclassmen (residents and non-residents)

have allocated budget for furniture.

they need to be convinced on price, quality, anddurability of the product.


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Product

Design Ball shaped:

Advantages: Easy to make, least cost,

disadvantages: not stylish, not flexible, one sitting position

Pear shape:Advantages: sophisticated, comfortable and three ways of

sitting

Disadvantages: more waste material, difficult to make

L-shape:

Advantages: small, takes less spaceDisadvantages: difficult to sew and one sitting position


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Contd

Material:

Leather:

Rolled: lower quality, minimize waste in production

Skin: high quality, durable but expensive.

Vinyl: variety of texture and colour, easy to cleanand durable.

Fabric (velour\cotton\canvas): limitless choice ofcolour and pattern, not easily cleaned.


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Distribution

Selling to local furniture stores.

Selling to campus outlet

Selling directly to students


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Promotion

Orientation for freshmen

Word of mouth

Advertisement


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Suggested solution:

Raw material: Vinyl should be used.

Design: pear shaped

Distribution: directly to students

Promotion through orientation, word of mouth,radio advertisement(ciqm103.1 fm, evening sat/sun for 30 sec)

So total product cost: 94 Mark up: 100%

Selling price: $188+ $8( freight charges)=$196

Competitor( toronto): $245-$299


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SWOT ANALYSIS Strengths

sophisticated, comfortable three ways of sitting

Easy to clean

Variety of texture and colour

Cost efficient

Weakness:

No brand image

Less time

Opportunity:

Threats:

Toronto

Other furnitures

Student lounge

Corporate capabilities: refer page5


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Growth opportunity

Possibilities for otheruniversities exits

We choose the universitieslocated along 401

Excluding toronto and yorkuniversity.

Name

Number of fresh

students

Galph University 9802

Waterloo University 14397

UOW 15422

Wilfren University 4405

Windso University 7512

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