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Kurlon

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Submitted By khanjan
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KURLON LTD CASE ANALYSIS
ABOUT THE COMPANY

The company was established in 1962. It Started as manufacturer of cushion seats and bare blocks. The Kurlon factory is in Mysore and its marketing division is in Banglore. It launched rubberized coir mattress in 1965 under the brand name ‘Kurlon’

Sales growth
1987-88 to 1988-89 - 47%
1991-92 to 1992-93- 29.88
1995-96 to 1996-1997- 8.5
2000-01 to 2001-2002- .003%

PRODUCT DETAILS:

* Rubberized coir mattress was an evolution from the traditional cotton mattress * Kurlon mattress was made of million of fibres bonded with latex and compressed to form coir block * The design structure of Kurlon mattress allowed free circulation of air and prevented heat from building up between the mattress and cot

ABOUT ITS COMPETITORS

* Kurlon is the leading player in the country in the rubberized coir mattress followed by Duroflex, Starlite, Centuary and Aaram * In addition to these brands there are also regional and local players both in branded and unbranded category for example Rilaxon in East, Bedsy in Karnataka, Coiron and Suflex in Kerala and Tamilnadu * Spring mattresses having 1% market share

* Most are regional players having strong presence in their regions * Have lower prices than Kurlon * Score more than Krulon on price, softness and thickness index * Give tempting schemes and high margins to dealers * Don’t have too many varieties of products, produce what sells the most

MARKET OF KURLON

* Cotton mattress- 70 % * Rubberised coir mattress, PU foam mattress, spring mattress and others- 30% * Kurlon’s share of branded Rubberised coir mattress market- 30% * Regional players are very strong in their regions * More demand for PU foam

MAJOR ISSUES BROUGHT UP BY THE CASE:
There were high number of variations under this brand which added a lot of confusion
Ineffective sales promotion strategy
There were national as well as regional brands which lead to a strong competition

SUGGESTIONS:
Divide the product portfolio into three segments- Premium products, economy products and orthopaedic products
•Retain only the largest selling sub brands
•Products should be of standard size
•Provide better fit and finish
•Introduce PU foam mattresses
•Do some R & D
Increase dealer margin

BY:NUPUR MISTRY

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