ASSIGNMENT ON: STRATEGIC MANAGEMENT

SUBMITTED TO: Dr.Nadia

SUBMITTED BY: Zaki Abbas (41)

Malik Hassan(35)
Atif Mahmood(36)
 ACKNOWLEDGEMENT

This report is a part of our course “Business Strategies of a Mattress Company;

basicalluy it is a strategic tool for measure performance at “ Master MoltyFoam ‘ASLI
FOAM’It has been written by us on the basis of our knowledge of these topics and the
way some strategies are implemented in Master Molty Foam as compared to Greek
mattress company . This report may not be even close to perfection, but we have given
it a Big Effort on our part.

Our big thanks to Miss Dr.Nadia, for giving us the opportunity to make this report.
Without his guidance and support, this report could have never reached completion.
She helped us gain command over the concepts of Strategic Management, helping us
to apply that knowledge in the making of this report.

STRATEGIC MANAGEMENT 2
 DEDICATED To

First of all I am really thankful to Almighty ALLAH who gave us the strength to work on
the project and complete it in time without any hurdles. I would also like to thank our
Instructor Dr.Nadiawho gave me the confidence and guidance at every step of my
assignment. This project helped me to know more about the Retail& Trade business
strategies.

STRATEGIC MANAGEMENT 3
 TABLE OF CONTENTS

Topics Page

Acknowledgement 2

Dedication 3

Executive Summary 5

Introduction 6

Situation Analysis 7

SWOT Analysis 8

Porters Five Forces Analysis 9

Molty Foam Case Study 11

Growth Strategy 14

Replacement Strategy 15

Trade Strategies 16

Conclusion 19

STRATEGIC MANAGEMENT 4
 EXECUTIVE SUMMARY

Strategic is what keeps great organizations ahead of their competitors. If the company,
which has a competitive advantage, performs financially much better than other
companies in the industry or better than the industry average. Some companies may
achieve it without thorough strategic plan but for the most players out there it is vital to
plan strategically, i.e. analyze, create, implement and monitor, and do this continuously.
It is not guaranteed that companies will ever achieve competitive advantage conducting
strategic planning but it is an essential process if the company wants sustain itself in the
Market.

The organization that we have selected is Master Group of Companiesand their product
Master MoltyFoam. It is a National brand having its branches and offices in all cities of
the Pakistan. Master Molty Foam strategic operations gave tough competition to its
rivals to other organizations as it sales, marketing and brand image.

This report points out the factors why Moltyfoam strategies is effective and how they
have given a tough competition to its opponents.

STRATEGIC MANAGEMENT 5
 INTRODUCTION

In order to offer quality mattresses that boost sleep quality and set the new standards in
the industry, the company Strom was founded by the Johnt and Nick Niarcho brothers in
1967. It is considered the number 1 firm in the mattress industry, with a market
presence spanning over 4 decades.

It is a 100% Greek company with up to 3 generations of sleep to date. Thanks to their

stringent recycling and packaging system and partnership with the Hellenic Recovery
Recycling Organization, they have eco-friendly facilities without emissions of gas or
waste. The company's history is marked by developments that have changed the way
most Greeks slept. More than 2,5 million Greek people wake up today in a media
energy bed or mattress. Completed in 2010, The New Rich Media Factory is the gem of
the global quilting, which confirms entrepreneurship and healthy development.

For over 40 years, H Media Strom mattresses is a market leader, giving consumers a
special quality of sleep. Consumers trust efficiency, unparalleled price and products of
hygiene. He has been able to make the name of his profession synonymous with good
sleep both in Greece and abroad. The company has an impressive growth rate and
increased to over 329 percent between 2000 and 2010. Media Strom won a major
international recognition in 2006 and placed 266th among the 500 fastest-growing
European companies and has a prominent place on the Statbank's Diamonds of Greek
Trade and Industry list in the last few years.

The estimate for New Factory investment amount led to over € 25 million and is a
European and international standard model. This is the largest and most important
project in the quilting industry in Greece to date. The new factory now houses the most
advanced and fully automated production lines, sleep products and a well-appointed
research and development facility to test the strength of anatomical and orthopedic
layers.

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SITUATION ANALYSIS
Marketing is a social and governance mechanism through which individuals and groups
accomplish what they want and need by creating, selling and exchanging value-added
goods with others. The business market is made up of all organizations that procure
goods and services for the production, selling, rent or supply of other products or
services (Kotler et al, 2012)

"Fresh" is one of marketing's strongest words. "Fresh" calls on the assumption that
something goes ahead, is new, modern or enhanced. New products such as a magnet
are attracted to people. The best way to get attention and to be invaluable publicity in a
company is to constantly introduce new products. "Fresh" finds a company complex
and forward thinking

MATTRESS PURCHASE MARKET

Consumers first purchased mattress without much knowledge or information concerning the
product benefits. As product development increased the consumers became better informed
about the benefits and began to focus their interest on sleep health issues, bone-spine
structure, sleeping disorders, etc. Advertising and promotion also increased due to creation of
premium and super-premium product class. A mattress comprises a filler, often made from
foam, synthetic plastic fibers, feathers, or down and elastic foam and latex. Stroke has
traditionally been a filler, but today is uncomfortable and rare. Plumage is the most expensive
and often comfortable; they have the advantage of softness and the ability to match shapes that
a user wants, rather than foam or fiber mattress. You don't spend so much time on other things
as mattress. You spend eight hours a night there on your nose. It's important to have the right
kind of mattress, "said Mattresses, a leading manufacturer of mattress ' Vice President,
Marketing for Mattresses. According to the truth, sales of bed mattress have fallen by 737
million, compared to 840 million in 2010, according to the annual survey from the weekly Home
Textiles Today. According to a mattress expert at the Company shop, a company of La Crosse,
Wis., linens, understanding how you can sleep is an important first step in purchasing the
appropriate pill. No wonder, consumers will pay more for a luxury mattress of higher quality.
However, that does not necessarily mean that you have to spend 200 on finding your mattress.
Prices depend on fill. Prices vary.

STRATEGIC MANAGEMENT 7
MARKET TRENDS

"Sleep On It"-GE and MedHelp have collaborated to develop a mobile app to

monitor the habits of sleep, identify trends of sleep and improve quality of sleep.
A custom alarm and snooze feature are given for this device. The alarm is
combined with the monitoring feature "To go to bed" and "I am awakened"
buttons. This function allows the user to monitor the habits of sleep at night in a
way that can decide which factors will influence their sleep. Users can choose
their mood on a gradient scale after waking, which helps the tracker identify
trends during sleep. A calendar picture shows all of the patterns in sleep, and
clear charts show specifics of sleep cycles and sleep hours in the last 7, 30 and
90 days. "The health and goodness of our people and our well-being depends on
good quality and enough sleep," says John de Souza CEO of MedHelp. "Sleep
shortages were linked with severe health problems from diabetes to obesity, and
millions of Americans don't get enough sleep. This app is currently free, and is
available from Apple.com. (Mashable,2012). This sleep on app helps consumers
understand how much their bed is actually and how many they need to feel their
best.

SWOT ANALYSIS

Strengths

1. Leader company in the industry

2. Strong brand name
3. International presence
4. In-house R&D department
5. Pricing policy
6. Strong franchise-retail network
7. Strong corporate culture internal satisfaction
8. Capital accumulation

Weaknesses

1. No relevant experience on implementing innovation

2. Lack of innovation orientation

STRATEGIC MANAGEMENT 8
3. Lack of synergies an outsourcing services.

Opportunities

1. Innovation products for technology oriented generation

2. Extended use and life cycle of a product
3. Strong profitable industry
4. Exploit new niche markets

Threats

1. Economic downturn
2. Demographics
3. Highly competitive market
4. Low income taxpayers
5. Premium cosmetics have maintained their global dominance

Internal Environment

Porter’s five forces analysis

Industry rivalry:
1. Customers have low switching costs between companies and products
2. Industry companies is grow very fast despite the crisis
3. Exit barriers are high and rivals stay and compete
4. Fixed cost are high resulting huge production and reduction in prices
5. Media Strom is a market leader with the highest market revenues and then
there is equal competition of smaller firms.
Byers - Consumer power:

1. Consumer purchasing power is very high in the industry.

2. Consumers can choose from a number of different product variations and
test-touch-feel-use-combine them, having a real-time experience, and turn
back the ones when they are dissatisfied for any reason.
3. Products have long time-period warranties and good after sale services.
4. Buyers chasing too many goods in one time/place.
5. Product are not differentiated clearly enough.
6. Buyers are price sensitive

STRATEGIC MANAGEMENT 9
 Supplier power:

1. Suppliers are concentrated and well organized.

2. A few substitutes available to supplies.
3. Their product is most effective or unique.
4. Switching cost, from one suppliers to another, is high
5. Not an important customer to Supplier

Threat of new entrants:

1. The turbulent economic environment worldwide makes it very unattractive for

companies to invest in any industrial sector at the moment.
2. High capital requirements to start a business and grow it.
3. Few economies of scale are in place due to regulation gaps.
4. Low switching cost.
5. Technology is not hard to acquire and isn‟t protected well.
6. Product is not differentiated

THREAT OF SUBSTITUTES:
1. Small private business owners who offer competitive prices and customized
solution.
2. Future consumer trends and scientific research upon sleeping habits, the
dropping importance of sleep. Working life more important.

MARKETING OPPORTUNITIES
Niche/mainstream positioning strategy:

Consumers who are worried about their sleep disorders would be the subject of niche
Positioning. The Company’s positioning the "smart mattress" as a niche product would
have many positive benefits. This would be through the charging of premium prices for
the segment of customers worried about calming sleep. In the meantime, Media Strom
will separate the new mattress from other mattress, because it already has
technological superiority over the others. I would decrease costs if they did not succeed
and then it helps us to minimize profits.

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Mission marketing strategy:

Media electricity project strategy in the sleep enhancing industry will be successful and
the new mattress will hopefully not fail. They aim at gaining competitive advantage over
other firms while generating profit and meeting customers ' requirements and needs.
The mattress is aimed at adding value or benefit to the lives of customers.

Product levels:

Media Strom works its manufacturing businesses through franchise sales in the area of
retail mattress production. Sleeping peripherals and especially digital high-tech sleeping
mattress will provide the future expansion of product lines.

R & D in Mattresses:

Our principal problem is that the product can partly work and serve its own customers.
The use of the product and service is linked by a third-party provider due to its
technological aspect. If the ultimate customer does not have a smartphone, the product
liability is at stake. In the field of marketing and publicity a relationship should therefore
be formed with another business group.

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 Pakistani Company Introduction

MoltyFoam, a pioneer in manufacturing mattresses, beddings and furniture,

started with their business in 1963. Half a century later, MoltyFoam enjoys a heartfelt
relation with their consumers. The brand focuses on a the idea of a healthy, peaceful
sleep

SWOT ANALYSIS

Strengths

1. Market Leader
2. Pioneer
3. Generic Name
4. Strong Dealer Ship Network
5. Financially Strong Dealer
6. High Number of Display
7. Good Market Reputation
8. Captured best located prints in terms of Advertising.
9. Developed Dealer ships
10. High Quality Standards
11. Well Trained & Experienced Staff.
12. Advance payments minimize bad-debts
13. Mostly dealerships are on best location of the market.
14. Third generation of Dealers.

Weaknesses

1. Limited production and Space Facility.

2. Un Consistently in Quality.

3. No Ware house facility in Out Station areas.

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4. Un trained dealers and sales man.

5. Maintenance issues in dealer ship 6. MIS System

6. After Sale Services

Opportunities

1. Exposure to International Markets. i-e Online portal.

2. New markets in Interior Region.

3. 9 Nine Months on Season

 Threats

1. Extortion Money problem

2. Unstable Political situation

3. Non-Filers Dealers

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There are few strategies which company makes to increase their
volume

Growth Strategy:

A growth strategy is a plan of action designed to help businesses capture a larger share
of the market, even if it comes at the expense of short-term profit. The type of growth
strategy a company implements will depend heavily on factors such as their finances,
target market, and the industry they occupy.

Your business will never increase in value without growth. But business growth does not
happen accidentally; it's the result of strategic initiatives.

MegaStore Strategy: Large Display showrooms

They find out some good places in All Major cities of the Pakistan and make showrooms
for Display all its products under one roof.

This concept enhance their sales upto 40%.They successfully introduced their upper
qualities nationwide and capture market shares by displaying all their qualities.

Not only mattresses but also their Home Furniture and Health Care Products.

This is initiative which they had taken and successful to capture.

We shared some pictures for understanding the concept of Megastores and how
customers showing interest by getting all products display in a one showroom.

STRATEGIC MANAGEMENT 14
 Replacement Strategy: which Tag line should they use in Advertising:

DOSRON KA WADA HUM NY SUCH KAR DIKHAYA…………

Through time should they choose to start and end this scheme from 1st Ramzan until
10 days after Eid. We receive about 50 percent more revenue through this substitution
system. They launched TVCs and they also viralized them through print media and
social media in order to gain greater attention from their customers.

They only announce this scheme in Ramzan, as people wait for their old columns to be
replaced and people receive a wage bonus to spend disposable income on Ramzan.

STRATEGIC MANAGEMENT 15
 TRADE MARKET STRATEGY:
Trade marketing, to put it simply, is a B2B marketing strategy aimed at getting
a product onto store shelves. This is done by making other businesses recognize the
value of your product, and convincing them that helping you sell your product will
ultimately help them make money too

MEAL COUPON SCHEME • KFC, Mc Donald’s Student Biryani Coupons • Targeted

Furniture Shop owners, Sales Man, and Helpers • Scheme was given in Off Season. •
Coupon Cost Rs 350 to 550 with Two month Duration. Result: Expense 2.5% to 3%
=20% Growth

They give it on the purchase of High End mattresses. This Scheme definitely creates a
lot of attraction as Furniture Walas show great interest in selling and displaying high end
mattresses and get KFC Coupens.

Molty Inside Strategy:RoohAfza / Fruitly Jar Scheme Starts 10 Days before Ramazan
and Ends 10 Days before EID.
Opening Sofa on Furniture Show Room and also the Dealer ship for Checking Master
Brand Inside. Monthly Checking reading of Molty Foam Usage,Distribute Gift (i-e Dinner
set) to Winner who is consistently using Master Foam .
Advertisement only for Cable Ad.

STRATEGIC MANAGEMENT 16
 Poster / Bunting Distributed & Pasted in Market.
In 2019 we gave different gifts to create Competition Between Furniture Shops
and Cushion Makers
Sofa Opening Activity

“MoltyDikhouInaamPou”

Hence they will make marketing strategies according to their target market

Market positioning includes that how the product is perceived by the customers. It
involves that how the product is positioned in the mind of the consumer. Molty foam
wants its product to pre perceived as a good quality and comfortable product. It wants
the product to be perceived as a lifetime product that is easily available and easy to
dispose of too. Molty will market it in such a way that it is stressed on the notion that this
is a value for money product. It has all the components of what a good quality and
comfortable mattress requires. This means that we will not only enhance our product
quality alone but we will also look into other factors such as after sale service. Relevant
marketing strategies have been developed and are in effect to make sure that
communication is done in such a manner that consumers understand and interpret what
was originally aimed by the marketers.

Exhibition Marketing Strategy:

Master Molty foam given very tough competition to its rivals by doing exhibitions in all
Major Cities like Lahore,Faisalabad,Islamabad,Multan.Bahawalpur,Sukkur,Hyderabad
and Karachi.

• Set Clear, Measurable Goals

The first step of any exhibition marketing plan should be to set out exactly what
you are aiming to achieve. This may be, for example, to generate a certain
number of sales, or a certain amount of exposure in a new market. The key is to
make sure your goals are realistic, understood by all involved and measurable.
• Establish a Budget
Next, you need to sit down with your finance department and decide exactly how
much money you have to spend on your exhibition. The amount you allocate will
depend on a number of factors, including the amount of money available to you
and the specific goals you have. Once a budget is established, try to stick to it by
breaking it down carefully, taking into account all outgoings.
STRATEGIC MANAGEMENT 17
 • Put Together Your Team
One aspect of your strategy that will require careful thought is the staff you
choose to be part of the process. Here, you need to ensure you are picking
reliable, trustworthy, knowledgeable team members. It may also be necessary to
consider which products or services you are showcasing and who has the best
knowledge of them.
• Plan Your Exhibition Stand and Services
Another important consideration is the type of exhibition stand you want. Many
design companies will offer a range of options, from bespoke exhibition stands to
pop up stands, and everything in between. You should also think about any
additional exhibition services you may require, such as storage, transportation,
installation and derigging.
• Carry Out Pre-Event Marketing
An element of successful exhibition marketing that is not always given the level
of attention it requires is pre-event marketing. Yet, around 70 percent of
attendees plan a list of the exhibitions they want to visit before they attend,
according to purple arts (local marketing agency) which should put its importance
into perspective.
• Create a Follow-Up Plan
Finally, lead generation is often cited as one of the key benefits of carrying out an
exhibition marketing strategy. Do not leave the follow-up process until after the
event. Plan in advance for how you are going to make contact with your leads,
what you are going to say to them and how often you are going to reach out to
them. You should also plan who is going to be responsible for getting in touch
with people and when the process will begin.

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CONCLUSION:

I have researched both companies and I have gained much knowledge about different
aspects, operations,frameworks and marketing strategies in both organization H media
strom and Molty Foam. Both are using different types of marketing strategies according
to their target market.

One of the company is doing its operations in Greek while another is operating in
Pakistan. As a mattress foam company both have same goals to achieve.Boths are
working on providing the comfort through their products to their end users.

We have discuss some core strategies which boosts sales and generate revenue.

The success of strategies and operational activities in any business activity must be
measured. The best way to assess the effectiveness of policy and policies in order to
make necessary changes is to measure performance. Organizations must measure the
performance and report on stated business goals. Only those elements of the market it
manages are calculated and analyzed by the client. Ideally, these measures should also
be benchmarked in order to see how performances are compared to other
measurements.

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