- Introduction
Magic Koil US mattress is a case in point. Backed by 12 years of expertise in the business, Magic Koil has positioned itself as a pioneer of an innovative design of quilting in the field as one of the leading suppliers of bedding products. The company’s products, such as the Infinity Mattress, which is attached with a removable cover, and the Pearl Mattress, which features moire designs with a sand wash effect on their corner tape, have attracted clientele from the local and international markets. Because the brand is also available in different markets, it is believed that the company will experience intense competition. This research aims to provide Magic Koil with insights into market readjustment against its competitors’ products because the pricing strategy of Magic Koil plays a role in the competition. This paper is organized into the literature review, research methodology, and a discussion of the results.
Asia Pacific is one of the fastest growing markets in the global bedding industry, and it is projected that the global market will continue to expand. This may be attributed to the growing middle class population and an increase in the number of double-income families. Market development is also fueled by product innovations in mattress technology. Singapore, as a gateway to the Asia Pacific region, has been actively involving itself in the bedding industry. The vibrant economic growth in the region, coupled with the government’s continuous efforts to position Singapore as a leading business hub, has made Singapore an attractive place to source for products that cater to the Asia Pacific market. Through many kinds of events organized in this region, a lot of manufacturers are encouraged to use Singapore as the marketing base.
1.1. Background of Magic Koil Mattresses
Apart from these internationally branded mattresses, Magic Koil also has another brand called the Elite Sleep brand in some countries. However, the Elite Sleep brand mainly carries pocketed spring mattresses with different firmness. As Magic Koil mattress store Singapore carries various types of mattresses, the pricing strategy is quite varied based on the technology and material used in the mattresses. There can be a premium range with a higher price before promoting so that most of the common people can also have the opportunity to purchase affordable good quality mattresses. There is also another economic range mattress which is much more affordable for many consumers but with not so high technology in the mattresses. This allows the actual conditions of the consumers to have different choices based on their affordability of the mattress.
Before conducting a comparative analysis of Magic Koil mattresses, let’s have a brief understanding of the background of Magic Koil mattresses. Magic Koil Mattress Pte Ltd is a well-known brand in the mattress market in several countries. Magic Koil mattress has its headquarters in Singapore and was founded in 1995. The retail outlets of Magic Koil can be found in Singapore, Malaysia, Indonesia, Hong Kong, and Brunei. In Indonesia, Magic Koil brand achieved the Best Mattress Award in the Home Products Category in 2017. In Hong Kong, Magic Koil brand achieved the Hong Kong Top Brand Awards in 2019 and 2020. Magic Koil carries different types of mattresses such as pocketed spring mattresses, also known as individually wrapped mattresses. There are also mattresses with chiropractic care functionality to support back care during sleep. There are also natural latex mattresses which provide much better comfort and air flow. There are also bamboo-treated cover mattresses which provide some kind of anti-stress and cooling function during sleep.
1.2. Purpose of the Study
The modern pace of life depends on many factors, but the most important role belongs to the place where we get our energy – during sleep. Its quality significantly affects the health and working ability of individuals. In order to ensure durable, sound sleep filled with energy, a quality bed and mattress is needed. The company “Magic Koil” – a brand with a rich tradition – has entered the Georgian market. The company is actively engaged in the Singaporean, Australian, British and other European and non-European markets. The purpose of the study is the comparative analysis of Magic Koil mattresses in different markets. Based on the review of existing scientific literature, the authors have not found a study that identifies the distinctive features of consumer demand related to “Magic Koil” mattresses in different markets – European and American, as well as the study that identifies the individual characteristics of a mattress (viewed through the marketing prism) with the help of questionnaire methods (using LinQStat online resource).
The global market environment is becoming increasingly complex, but demand for different products is increasing. Accordingly, it is very important to find answers to the following question when selecting a target market: “What does the consumer need?” and study the distinctive features of demand as it concerns a specific product, as well as the individual characteristics of each market. The operation of any company is closely connected with marketing. Even though the setting up of a marketing department in small companies raises some skepticism (on behalf of the administration), it is definitely known that creation of marketing measures and their adaptation to the features of a particular target market is essential for the success in business. This issue is very important in the case of the company under review. Magic Koil has succeeded in ensuring operational efficiency and efficiency in the production, sales and profitability sectors by promoting innovation and using new methods in manufacturing management.
- Magic Koil Mattress Features
People living in warm climates often prefer mattresses that are not too warm to sleep. A good mattress will have a woolen blend that can keep the mattress cool during warm weather.
Magic Koil mattresses have been designed to have individual pockets for the spring inside the mattress. A pocket spring system ensures that the mattress does not make a sound when there is any movement during sleep. Such a feature can be a significant advantage.
Some mattress manufacturers have come out with the use of ash 2000 soya memory foam at the upper end of the mattress to enhance customer perception.
A good mattress uses spike latex in addition to normal latex for additional spinal support. With the number of people suffering from back problems, such a product feature has gained importance.
A mattress is a critical component of sleep in the evenings. Magic Koil has emerged as a popular demand brand for quality mattresses. Therefore, a comparative analysis of Magic Koil mattresses has to focus on critical features. The significant features of the mattress are:
2.1. Materials and Construction
The materials and construction of the mattresses are important since the comfort and durability provided reflect the quality of the product. The information was gathered through interviews conducted with several retailers with a range of prices used by outlets in the different countries. The stiffer and flex-foam core, in general, is the consumers’ main concern with regard to the feel and durability of the mattress. Pocketed spring core mattresses yield significant postural support by varying support from one part of the mattress to another. However, the consumer has some reservations about their construction because in case the springs cannot be replaced, they perceive that they are throwing out the entire mattress instead of just replacing the springs.
To investigate the development of similar products in different markets, the same approach used in the early work of Kaufer and Lippman was used to evaluate Magic Koil mattresses distributed in Singapore and compare them to others from Korea, Australia, and the US. The aim is to determine how the quality and price of Magic Koil mattresses fare with respect to other similar mattresses in different markets. Statistical models were developed to assess the relationship between quality and price. The findings are useful in understanding how similar products with different country designs distribute in markets with different ppp-adjusted GDP per capita.
- Market Analysis
The assumption that all these differences in operational conditions do not affect the brand marketing approach is a great simplification. The author develops a conceptual model to identify the optimal configuration for consumers of multinational retailers in the context of the host country, including a set of factors that affect a consumer’s utility, and a mechanism by which the performance of a given configuration of these elements can be gauged. Five factors were identified as potentially meriting attention, including the consumer’s familiarity with the retailer and its market strategy, clustering and back-end knowledge transfer, product availability, and price differences. No consideration is given to consumer characteristics that might affect the relevance of these elements or their impact, such as demographics, preference structure, or shopping habits. Indeed, the fact that the research focused on Fair-Price outlets in Singapore suggests a DDR approach to international market entry.
Most of the analysis in this project will relate to the Magic Koil consumer in three markets – Singapore, P.R. China, and Russia. The Magic Koil operations in these three markets are one of the most illustrative – they are geographically distant with an apparent low integration between the markets, they have different economic and cultural conditions, different distribution structure, different competitor sets, and other differences which will be revealed further. But, at the same time, the core consumer demand and consumer preferences can be practically the same. Firstly, the developing Magic Koil buying behavior and segmentation markets and other brand positioning efforts are based on these insights, and secondly, now we are trying to grasp the geography sector by sector and distribute a range of different features of Magic Koil products which are needed on foreign markets into due marketing effort.
3.1. Magic Koil in the US
It is interesting to see that Mattress Koil Inc’s experiences were mentioned above. The two families jointly operate Magic Koil, which has been based in Singapore for over 19 years. Is the Magic Koil product line unique enough to demand consideration for marketing mantra, overcoming significant market differences? In 2013, most Asian market sales were from five families of crews who started new businesses with Magic Koil. Some of those families sold mattresses in Cambodia and Vietnam, but Indonesia has been the site of greater interest. However, earlier interest in the Middle East market and South America has waned somewhat. After candid discussion during the 2013 annual industry meeting in Singapore, now just the Francis family ships special label mattresses to serve these diverse merchant families’ regional distribution preferences.
3.2. A Comparison of Magic Koil’s Experiences in Singapore and the U.S.
The U.S. subsidiary, Magic Koil USA, was established in 2010 in response to an unsolicited offer from Haselkamp, a U.S. mattress center distributor and an unrelated third party, to be Magic Koil’s U.S. distributor. In the initial year of operations, the U.S. subsidiary was disappointed with net losses of $42,000 in 2012 on revenues of $215,000. However, Magic Koil USA sold $573,000 in mattresses in 2013 and earned net profits of $56,000. The objective of Magic Koil USA is to continue to expand, but the company does not anticipate U.S. sales to exceed $800,000 annually for the next three years. These early experiences have steered Magic Koil to the U.S. marketplace and the company has been learning the differences between the U.S. and S.E. Asian mattress markets.
Magic Koil in the U.S.
3.2. Magic Koil in Singapore
Magic Koil is sold through both mass merchants, such as Carrefour, and retailers with a door or shop. Its available sizes are the same as in Malaysia and Singapore. Introduced to the Singaporean market, Magic Koil has always been a market leader in quality mattresses. To ensure that customers purchase with confidence, Magic Koil always provides clear product line shaping and specifications of each item. Due to changes in the socio-economic environment, living standards, as well as the economic boom in Singapore, demand for quality mattresses in the country has increased. Housewives in the market with high personal income, lack of time, and an increase in the number of dual-income families indirectly results in changes in consumer perceptions. Therefore, Singapore is only given three product lines: Branded, Duplex Support, and Orthopedic Superior. The expansion of Magic Koil’s market coverage is subsequently in line with changes in consumer perception in the market.
Singapore, a metropolitan state, is well known for its high level of living standards, quality educational system, as well as a tourist destination. Vision 2028 was launched with the aim of raising aspirations and making higher education accessible to more young Singaporeans, providing students with excellent facilities, nurturing resilient, resourceful, and innovative citizens, promoting a lifelong love for learning among Singaporeans, increasing the capacity of the higher education sector, and improving research with practical applications. As the majority of Singaporeans long for higher living standards and are well off, Magic Koil has limited product lines in the country. Currently in Singapore, apart from marketing and selling its mattress, Magic Koil also places great emphasis on retailing and merchandising, as the taste and appreciation of Singaporeans towards their living standards has gradually changed. The company has indicated that to promote itself, it does a lot of advertisements to improve customer relations and public relations activities.
3.3. Maxcoil in Australia
MaxCoil Australia mattress is almost entirely bed imported and sold in Australia. It is important to closely investigate the service quality provided by MaxCoil Trading. Focusing on the purchase of mattresses and the last third stage of the distribution chain: my specific product choice, purchase history, and order lead times; product delivery and adjustable timing; product condition and quality expectations upon receipt; price of the product and/or the service conditions. In relation to MaxCoil Trading only, the general survey provided by Target Research cannot be used, except for the investigation and requests. Further surveys, which may be subjective and confidential by nature, may be run to get additional general knowledge on MaxCoil Trading as the data provider. Future attempts involving Magic Koil Trading and MS Negara Trading may prove useful in understanding potential responses to further markets.
3.3 MaxCoils in Australia. Since 1996, MaxCoil Trading has been the authorized distributor for MaxCoil mattresses in Australia. Importing many thousands of Magic Koil mattresses, they guarantee that every one of their mattresses and bed bases meets the stringent Australian standards required for exports to their country. While the list of exporting companies is closed, it is important to note that Magic Koil and MaxCoil mattresses may be engineered at different production units. As of June 23, 2009, there are 135 patents granted to Maxim House Corporation Pte Ltd, among which there are several filed in Australia. Preliminarily, it is noted that these could be new inventions or related to the same existing products, and that no quality assurance guarantee is given to the mechanism characteristics and the mattress layers found in the Magic Koil models after MaxCoil’s history start.
- Consumer Preferences
Normal.dotm 3 Netsoft Chipal 1 Consumer preferences It is widely assumed that the cross-country comparison can be comprehensive only if all countries are evaluated on the same market. This means that at least the same product or service should be considered in the context of all the countries involved in the research. The only way to reach this goal is to build a case when a particular range of products is available in the same brand growing in different countries. Special attention should be paid to products that are difficult to compare because of cultural background, design, quality, taste, or a sort of other reasons. Offering traditional products from different countries provided by a local brand can be a criterion for similarity. In this case, the problem of consumer preferences of our interest, as well as the competitors’ response, is interesting to perform. One way of attempting to reveal a foreign consumer’s (dis)taste if the product is characteristic mainly of one country or a few countries, is to make a comparative analysis of the markets’ behavior to various offers of similar products. The idea of our approach is based on that assumption.
4.1. Survey Results
Respondents use the mattress for an average of 5.33 years, and their average expenditure on the mattress is HK$4,470. This amount includes such items as the frame, pillow, etc., making the actual average expense of the mattress lower. The general impression of Magic Koil’s mattress is the good design, ample cushions and content surface. Attributes regarded as the most important include the degree of hardness, size and weight. However, the main characteristics most seriously noted by the consumers include strong wear and tear characteristics, and good and strong back support, rather than heat insurance, water resistance and fitting body curvatures. After experiencing the Magic Koil mattress, the expectation of the respondents to Magic Koil mattress, not just the same needs, drop significantly for items they did recognize as important the first time.
The brands and models of mattresses under survey are Multicare series, Singapore’s best-seller, followed by Crystal, Orthopeace, Impress, Comfort EZ, Leisure/Zen and HR Deep. The mattress that the respondents were using before the current one is mainly Sealy, followed by Simmons, Dunlopillo, King Koil and Magic Koil. Despite the fact the survey was done in 2 departmental stores that are both agents for Magic Koil, almost 40% of the respondents were not aware of the fact that they are using Magic Koil products. As the products of King Koil, Simmons, Sealy and Restonic are featured more in the department stores of those 2 agents, it is no wonder that more respondents thought the products that they use are made by King Koil or other brands. Under the so-called brand effect, consumers simply thought their products were from those renowned brands.
- Conclusion and Recommendations
A significant contribution of this study is that the findings also proffer a cogent and coalescing response to the calls for new and thoughtful inquiry into the ways in which firms comprehend and act on the imperatives to maintain and satisfy customer relationships across national cultures. They also inspire current researchers to think positively about future work, extending the purport of the current work. The positioning of the comparative analysis of magic koil mattress segments as a method analogy undergirds the impingement of a relevant aspect of international marketing and cross-cultural comparisons in other global markets. Indeed, when national culture is ignored in such comparative ventures, researchers may at the very least measure different constructs across cultures, hopefully not making erroneous conceptualizations of the scales. Additionally, if it can be demonstrated how cognitions of business, moral, and logistics cultures of the developing scholars and practitioners in this arena, the realization of modeling boardrooms and negotiating corridors as both distinct and dynamic national markets becomes feasible.
The linkages between culture in the U.S. and Singapore for the mattresses market are significant as the U.S. and Singapore are the two most highly developed economies, with higher literacy rates, universities, and technological capacity, offering residents a high standard of living and greater access to technological innovations in healthcare and other fields. However, recall that variations in hybrid global-local segmentations between markets are attributing to the political, social, and cultural issues within each of foreign and local markets. Given its importance, such boundary-spanning understanding of the variations in magic koil mattress embodiments across business, moral, and logistics cultural complexities may afford insights into the holistic side of consumers’ ‘market offerings’. A simple understanding of how magic mattress emerges on its home turf and abroad may not provide the necessary compensating response in understanding consumers’ behavior.
This research concludes on highlighting the importance of addressing multiple national markets in studying the impact of national culture on business conduct. After examining the business, moral, and logistics cultures, the study found encouraging evidence that these cultural practices may be crucial in shaping those differences in the external behaviors among multinational firms operating in developed (U.S.) and developing (Singapore) markets. Specifically, the findings suggest that firms operating in the highly developed U.S. economy may be more concerned with business culture, moral culture, and logistics culture in their external business conduct compared to firms operating in the developing Singapore economy. This study is to be regarded as an extension and an expansion of previous studies.