1. Introduction
Marketing strategies can greatly change consumer perceptions about a firm or product service matter in a positive way. Finding a means of drawing consumers to products and keeping their interest is an extremely valuable tool for the growth of a company. The form that products take, the prices they are asked, the quantity, and the methods of distributing them must all be based on concrete information regarding customer needs in order to create products and promotion methods. The knowledge of what consumers seek is very important to all forms of business organizations throughout the world. Based on this data, the margin of marketing mistakes can be contained.
The competitive market of each corporation challenges every entrepreneur to think about survival while doing business. In achieving success in this competition, firms carry out various marketing activities dealing with their marketing mix consisting of product, price, place, and promotion strategies. These strategies must serve to be effective in boosting changes and differentiation of a product or service, as well as being able to change consumer interest and perception towards a product matter in any field. Marketing experts have analyzed the effect of strategies on consumer perceptions in various research and marketing theories. In the process of developing a new product or service, a firm’s research and design can use needs surveys and interviews with consumers for the benefit of this desired product. R&D can use surveys and interviews to look for the variation factor that is keenly sought by consumers. Establishing the price too high would restrict improvements.
This chapter sets the background of the thesis and introduces the readers to the motivations and aims, as well as the research outline and structure. Moreover, readers are directed through the problem statements that the study aims to address, as well as the importance of why the chosen research is relevant. The introduction ends with the examined hypotheses and some definitions.
1.1. Background and Significance of the Study
This case study was conducted for Magic Koil Mattresses Singapore, a company that engages in the business of mattresses and bedding accessories. The company started off with manufacturing spring mattresses in Singapore. Over the years, the company extended the product range to include latex mattresses and bedding accessories like bed bases, pillows, and bolsters. Today, the products are exported to more than 13 countries through the local network of distributors and dealers supported by standalone retail stores, departmental stores, etc. With the extensive retail network in and out of Singapore, the company has more than 350 points of sale featuring the products from Magic Koil Mattresses as well as products from other established brands. Inflation, currencies, and cost of raw materials are some of the barriers the company faced to maintain the desired gross profit margin. The financial report of 2008 signifies a consistent decline in net sales, with SGD 20,548,988 in 2004, and SGD 11,916,912 in 2008. The objective of the study was to explore the impact of marketing strategies on consumer perceptions through word of mouth recommendations and to examine whether consumers have taken into consideration the marketing strategies when considering relative purchases.
This study was conducted to understand the consumer’s perception on the effectiveness of marketing strategies applied by Magic Koil Mattresses and also in turn provide recommendations for the company through the information gathered. The objective of the case study is to explore the impact of marketing strategies on consumer perception through word of mouth recommendations and also to examine whether consumers have taken into consideration the marketing strategies when considering relative purchases. The scope for this study includes the branding and promotions contributed by the company; this is due to the effectiveness and consistent application by the company towards the strategies. It is vital to measure the perception of the consumers as they are the source of all profits for the organization. Most importantly, the responses will allow the company to assess the performance and effectiveness of the current marketing strategies compared to the existing and potential competition. The responses gathered from the consumers will determine the next course of action by conducting further studies on the existing marketing strategies. It may result in a redirection of marketing budget to more sustainable advertising solutions, or launch new promotions or price strategies to attract more consumers on the market.
1.2. Research Objectives
Specific Objectives: To explore the relationship between Magic Koil’s marketing strategies and Malaysian consumer perception. The company services offer and the premiums used are highly considered by the team as important as they provide the consumer with additional protection such that they spend years in high-quality mattresses for good. So it is prudent for Magic Koil to promote the services, bonuses, and exclusive offers to be consistent with the overall brand strategy. My next specific aim is to investigate the relationship between purchasing behaviors and Magic Koil’s marketing strategies.
The main objective of this research is to explore the impact of Magic Koil’s marketing strategies on Malaysian consumer perception, focusing on the brand image, brand association, and perceived quality. These consumer perceptions are distinctive as consumer perception can determine whether the consumer will purchase the company’s product. Based on previous research, high perceived quality, a strong brand association, and a favorable brand image are essential elements of building customer-based brand equity that would provide the comparison criteria and should positively correlate to consumer purchasing decisions.
2. Literature Review
Marketing strategies should be concerned with the identification of consumer needs and preferences and an ability to understand the intricacies of needs, expectations, and quality. Kotler cited addressing this aspect as a prerequisite not only for the company to distribute a product but also to seek the maximum satisfaction of customer needs. Clement has argued that one should never study consumption without considering the desires and expressions of individuals: desire precedes the creation of new objects as well as processes characteristics which encourage consumption. Thus, the establishment of share of demand for a product or service is a function of the value that the product provides, as well as the marketing strategies established and the ability of the entire entity involved in managing and delivering guarantees that the proposals from a product or service reflect their benefits.
The classic definition of marketing presented by Kotler is that it is a social process by which the needs and wants of individuals and groups are satisfied through the creation and exchange of value with others. The objective of marketing is to seek, attract, and retain a client where they have both the capacity to consume and the ability to meet the expectations of clients. Assael suggested that the marketing concept is a management philosophy seeking to simultaneously maximize the profitability of the company and maximize customer satisfaction. Assael also states how a business, by offering quality products, through an analysis of customer needs and preferences and responding to them, can satisfy the needs of the client better than the competition. The marketing concept postulates that before producing something, a firm should identify the needs that remain unsatisfied or unmet, rather than rely solely on its production capacity and attempt to sell what it produces.
2.1. Consumer Perception and Buying Behavior
Before buying a product, consumers absorb all information provided. They use their own evaluation and judgment process to make a decision. The influences of a plethora of parameters, external and internal, guide the individual through this decision process. Considering that one of the first steps of consumer buying behavior, namely regardless of the buying situation can be seen as collecting and processing information, combined with the fact that individuals use specific information cues provided by product packaging, it seems plausible that product packaging serves as cues to predict the product’s performance. At this stage, the basic secondary functions of packaging are obvious to see; product protection and preservation, product unity and communication were keeping the expectations in tune. The consumer’s expectation of the product was met partly by the packaging and partly by other cues provided by the external environment.
The aim of marketing strategies is to inform consumers about the product and establish a favorable perception. Consumer perception plays a vital role since it is essentially the first step of a buying process. It can influence all stages of consumer buying behavior and which may take place before, after, or at every stage of buying process. According to a study, consumer’s perception of the product largely depends on the product’s perceived own label cues. The conclusion of the study explains consumers use POF cues to make predictions, which at their turn, lead to a perception of a good or a bad performing product, which is then combined with information of external cues. If POF exceed the consumer’s basic value threshold, and there is sufficient space available, a product is stored from the evoked set. Consideration is the forgotten step at this stage and may lead to failure in the long run, although the product may be considered a possible cup of choice or sweet spot at that particular moment.
2.2. Marketing Strategies in the Mattress Industry
The increase in the mattress industry’s informational advertising provides the consumer with crucial information about new products or information about price changes. Additionally, these effects are important from the consumer’s point of view, and our concern is directed at both aspects, namely the evaluation of informative advertising and the assessment of image adapting (institutional) advertising. Notoriously advertising for goods in general and for those who are rich in symbolical content, arises the aforementioned perplexities when there is an attempt to clearly separate print advertisements that mostly fit into the two categories used as a critical probe. In fact, the health sector is rife with promotion in the guise of nutrition, fitness, and weight-loss advice. Moreover, advertising for mattresses is not far off this health-related path, appearing where efficiency recommendations and solutions are offered. Advertising characteristics tailored to enhance the consumer’s dissatisfaction, personal experience and needs for achieving emulation and conspicuous leisure may well preach at the expense of the general public’s health or at least of a large number of consumers who have little experience in these cholestatic health pursuits.
The mattress industry is highly competitive across the globe, with most firms choosing to implement market-driven strategies to reach out to consumers and out-market each other by increasing profits. There are currently many competitors in the industry, and each is trying to dominate the market by introducing new and innovative products and by conducting informational advertising. The high concentration of advertising, at times, is a focal point that creates the interest and the necessity to explain the magic behind advertising from the economic and social point of view. Functional advertising parameters carry an inherent benefit to the advertiser, in this case the manufacturer or marketer who is usually viewed as the formulator of each advertising stimulus, namely the advertisement in which continuity and uniformity are essential. These follow the concept of signature which, in an advertising context, involves the intradimensional identification of the promotion.
3. Methodology
Magic Koil is a manufacturer and retailer that has been operational for the last three decades and involved with the production and provision of an extensive range of mattresses. The study sample involves the utilization of a semi-structured interview questionnaire with the management, salespersons, and the corporate marketing personnel to identify essential information regarding the marketing strategy and its impact, particularly with respect to the 4Ps of marketing. Data from the survey are subject to a small-scale quantitative survey using an online questionnaire. The respondents who took part in the survey included the retail persons and a category of Wholesaler Firm Staff such as operational, retail, etc. The online questionnaires were distributed via personal email and respondents were provided with background information. Results from the survey are analyzed to produce research findings. Limitations, ethical considerations, and diversity of mixed research methods are discussed.
This chapter describes the research methodology carried out in the research. In order to achieve the research aim and objectives, a mixed method approach is utilized involving semi-structured interviews with marketing personnel in the organization and quantitative survey. The choice of utilizing the mixed method approach was made to acquire a balanced view through interviews, while confirming the initial results through survey to achieve depth and breadth, reliability and validity, and ensure consistency of results. The nature of the research is concerned with discrete findings, reinforcing the need to utilize quantitative research to fully understand and capture the user parameter. A concise overview of the chosen organization, Magic Koil, is provided, followed by a detailed description of the methodological process for this research.
3.1. Research Design
For the present case study, surveys and interviews were conducted on 300 consumers across Singapore to examine their perception of the different marketing strategies employed by mattress retailers within the industry market of premium mattresses. Present multi-method designs use a combined approach of quantitative data collection (using surveys) and qualitative data collection (using interviews). The most salient characteristics of each data type are then considered in detail. Surveys are predominantly used in quantitative research, and findings are usually summarized using percentages and average mean scores. Qualitative research studies predominantly utilize data recorded during interviews and formulated into themes. Data from both surveys and interviews are analyzed, and both the number of responses and the amount of variation are noted. Additionally, consumers’ experiences, feelings, attitudes, and perceptions towards the individual marketing strategies of a select number of mattress retailers were obtained. Findings derived from this research paper contribute to an understanding of the perceptions of consumers who purchase a premium mattress. Marketing managers responsible for promoting and selling these luxury items may find the research outcomes helpful in developing future marketing strategies to differentiate their brands more effectively. Findings and interpretations could further be of interest to anyone involved in the business of retailing premium mattresses.
Research involving the investigation of the impact of marketing strategies on consumers is often multi-faceted, employing various quantitative and qualitative methodologies. The design used is typically dependent on the objectives of the research. Some studies may be oriented towards comparing a particular group or set of groups and how they score on certain demographic and key variables. Such studies are often descriptive, relying on administering questionnaires. Others may seek to describe phenomena in detail. In such studies, interviews and participant observations are usually employed. Still, others focus on theory-building, where the constant comparative data analysis method is usually used in large-scale qualitative research studies, following the grounded theory framework. However, regardless of purpose and scale, sound research design is essential to ensure that the research is conducted systematically.
3.2. Data Collection and Analysis
The primary data used in this study was gathered from 70 participants using convenience sampling. The survey data was collected using a structured questionnaire. The questionnaire is divided into three sections. The first section includes consumers’ perception questions regarding Magic Koil mattresses. They were asked to share their level of agreement with 30 perception statements that related to the mattresses. The second section collected consumers’ self-reported social network responses. Consumers provide information on their participation in different websites. The third section captures the demographic information of the respondents. Descriptive statistical tests, t-tests, and correlation analysis were performed to analyze the survey data. The results indicate that most of the respondents’ levels of their perception exceeded average. Furthermore, a significant correlation indicates the relationship between their perceptions of the product’s attributes and their perceptions of the symbolic benefits of the products. Information on social media can be provided as secondary data for future research in order to further solidify the results.
4. Case Study: Magic Koil Mattresses
Advancements in technology and the internet have significantly changed marketing and consumer behavior. Aggressive advertising, with its embedded high risk and high rate of return, has become more popular, especially for companies short on resources keen on making a conspicuous splash in the market. With this aggressive advertising, the perception of product and implicit product attributes plays a pivotal role in purchase decision-making. Aggressive advertising often masks low perceived brand performance of implicit product attributes, leading to deception. Ultimately, when such states of inability are unmasked, brand equity of any kind, whether commercial or brand, takes a consistent hit. This case study of Magic Koil mattresses used a qualitative approach through a series of interviews. Participants were selected given their interests in and awareness of Magic Koil mattresses. Data were analyzed using NVivo 11, whereupon creating the appropriate coding schemes facilitated the research process. The findings revealed that aggressive advertising thrives on the unawareness and lack of knowledge of customers. However, aggressive advertising may not have the same effect on explicit product attributes, especially when materials used are common and easily imitated or available. The advertising strategy is thus crucial when aggressive advertising is chosen because the strategy chosen affects brand equity, focusing on cost, quality, or customer feedback, among other aspects. In conclusion, companies must weigh the pros and cons of making quick returns and adapt the appropriate advertising strategy. Companies must weigh the pros and cons of making quick returns and be aware that missing the right beat could potentially hold significant financial fallout in the immediate future. Only with the right tempo will the brand’s reputation and equity stand the test of time, ensuring sustainability and longevity in the market.
Marketing strategies have been recognized as important tools to modify consumer behaviors, evoking demand and enhancing brand image. Vital to a brand’s survival in today’s competitive market, such marketing strategies aid in differentiating a brand from competitors. The objective of this case study is to explore the constructs of a marketing mix and different components of advertising strategies, with an ultimate aim of analyzing customer perceptions of Magic Koil mattresses. The results of this study suggest that Magic Koil mattresses are expensive and are assumed to possess high quality with their perceived implicit product attributes and perceived explicit product attributes. Their brand equity was thus assumed to be high. Although aggressive advertising, whether standard or nonstandard, could yield very certain and even quick results for brands willing to take the risk, companies must weigh the pros and cons of making quick returns as well as the attributes they wish their brand to possess before choosing and adapting the appropriate advertising strategy. Future research could expand on this case study as a more comprehensive model of consumer perception of Magic Koil mattresses and the hidden components in aggressive advertising.
4.1. Company Overview
In 2005, the company extended its product line to include the Marriott brand of mattresses which they sell to Marriott Hotels worldwide through a licensee. Realizing the importance of international certifications to the packaging business, the company embarked on a quality control and assurance program which was recognized when it was awarded ISO 9001 by the International Organization for Standards Authority. Retaining quality manufacturing control through close supervision in our own factory in Penang, the company increased its volume with specific emphasis on the quality of its products. The company emphasized high and consistent quality, good business ethics, and also outstanding service to its customers. The company’s aim made well resonates with the mission to manufacture and deliver the highest quality mattresses and bedroom furniture at the most competitive value with excellent service so as to enhance the sleep and health of our consumers.
The project embarked on the research of Magic Koil as the mattress manufacturer has grown to become a major player in the global mattress industry. With its own factory located in Singapore, it has a renowned international presence in key markets such as Asia, Eastern Asia, Middle East, and USA. Magic Koil Pte Ltd was established in 1995 by a group of Malaysians who had their training in Singapore for the bedding companies. Starting from modest beginnings, Magic Koil has grown from strength to strength especially in the Middle East markets. It has achieved its success by offering a quality product at an affordable price.
4.2. Product Line Analysis
Magic Koil offers numerous types of mattresses and other related sleeping goods, such as pillows, bolsters, and bed linen. Furthermore, Magic Koil offers its customers various bed and mattress sizes, from single to super king sizes. Supplementary products include back care products, such as the Bokwang Chiropractic Mattress. By offering multiple types and variations of mattresses and related sleeping goods at its distribution points, Magic Koil provides customers with an extensive product line and ensures that they can purchase a complete sleeping solution based on their specific requirements or preferences. Additionally, this product line allows Magic Koil to cater to a broader market segment, thereby increasing its market capabilities.
Product line analysis involves discovering the number and types of products offered and determining whether a company is involved in a sole product or a multi-product line. The specific product line comprises distinct items or groups of items, which fall into one of three different categories: product width, which involves the variation in size, types, or materials of each item; product depth, which refers to the degree of standardization of the items or groups. The level of analysis required is contingent on the study. It may either be at the company level or the product line level. The study starts at the product line level, in which representative members of the line are chosen for further formulation of the product line mix or product group.
4.3. Marketing Strategies: Magic Koil Sale, Sensation, and Sleep Legacy
Magic Koil sale has entered the Chinese market for 12 years, and this brand has covered the high-price point mattresses in China, so how to build its brand? The brand operation originated from the brand strategy and a series of planning promotion processes. The brand management here mainly refers to Magic Koil’s planning and promotion. Toyoko’s Kano Model points out that meeting customer requirements is the first condition, and perceived quality is the basic condition for products to stimulate customer satisfaction and is a marketing weapon. In order to obtain the competitiveness of the product, an enterprise must improve the quality and can achieve the competitiveness of the product through an improved ability to meet customer requirements. Stimulator quality is a surrogate. Enterprises can constantly improve and exceed the production promoted by the enhancement of quality to make consumers feel pleased with services or designs not considered by customers. This paper shows that the development of Magic Koil sleep legacy sensation is operated from its core quality, and the series of experiential activities jointly provided by Comfort Solutions also play a role in the strengthening of the product to exceed the excitement and enhancement qualities.
Innovation demonstrates the continuous commitment of Magic Koil sensation to providing customers with an enhanced sleep experience. First, Magic Koil, as a high-price point mattress brand, significantly reduces the end customer’s price under the same quality. The cost of Comfort Solutions and Magic Koil should be the same. Then, Magic Koil reinvests the high profits of dealers and agents into marketing, advertising, branding, and personnel training for promotion. Magic Koil has successively held more than ten large-scale Sleep Products Expos around the country for promotion, with an average annual investment of about $3.18 million for promotion. The number of teams that the Comfort Solutions shops have for promotion has already developed to 5 in their second year of operation, including performance rehearsals, support rehearsals, expansion practices, and quality roadshows. The price of Magic Koil has been reduced, so the percentage share of the total sales price has decreased, but the increase in sales price has increased by three percentage points year on year. Marketing is a huge support for the corporate brand and lays a solid foundation for its continuous expansion.
5. Findings and Discussion
Magic Koil was found to have not only focused on developing and marketing a product that meets the expectations and desires of its market but also with high standards that included the Brand, Presentation, and Social Responsibility factor taken into consideration when dealing with its customers and the parts of society where the company operates in. But like any other companies, smaller organizations would indeed be held back by inefficiencies, require much higher overhead costs, and would be incapable of competing head-to-head with the largest market participants unless accomplishing with the required technological infrastructure. The researchers’ findings and conclusion were limited in a few areas related to consumer purchasing latter stages of their purchase, and future researchers could include new product designs, covering other groups of other countries, and set it up on both homogeneous and heterogeneous samples, including Magic Koil employees. The researchers have selected a different sector, using newly developed instruments, in which the data had actually been collected retrospectively. New companies believed these might have contributed to the researchers’ conclusions and findings, providing new information to the academic and business communities.
The researchers utilized a sample of 100 respondents who were owners of Magic Koil products, with the majority of them being under the age of 50, hold bachelor and professional degrees, with household incomes of not less than $3,000 per month. According to the findings, respondents strongly believed Magic Koil had a strong reputation, as supported by the literature seeking Brand, Presentation, and Social Responsibility. The Social Responsibility factor, the one factor which was not included in past studies researched in the apparel industry, thus provided more evidence to the earlier studies. Hypotheses formulated in this study concerning the relationship between the overall Magic Koil mattress consumer perception and the four studied factors were all found to be strongly supported, thus leading to the conclusion that Magic Koil’s been utilizing the right marketing techniques in developing a very positive consumer perception. With such a strong position in the market place, it was concluded that the perception of the respondents who were heads of households was influenced very much by the different product and marketing strategies the company researched.
5.1. Consumer Perception of Magic Koil Mattresses
A consumer’s decision processes will depend on the importance of the stimulus and situation complexity. The study of consumer perception leads to the understanding of how to position product and services in the market which affects the consumer’s decision and buying process. Understanding how well consumers can interpret the various product properties and how they perceive the goodness of these properties is crucial in determining the market value of the associated products. Consequently, marketing firms try to influence consumer perception by varying a mix of marketing stimulus associated with the product, the brand image, advertising, logos, and any other consumer’s interaction related to the marketing mix to influence what consumers perceive. Consumer perception refers to how consumers see a product and reality – the interpretation of the product properties, functionality, and value. Consequently, it is vital to understand consumer perception to help companies to create unique products which resonate with consumer needs, e.g. a product with a unique selling proposition.
Consumer perception is the process by which an individual selects, organizes, and interprets information input to create a meaningful picture of the world. Consumers do not simply absorb and accept marketing stimuli. Instead, they actively engage with stimuli – combining new stimuli with the existing schema. Perception is the “meaning” that people attribute to events that give people a context within which they can make sense of their environment. Perception is the process of selecting and interpreting information to make decisions. It is a process of learning about stimuli in the environment, rather than just passive reception of messages. It occurs when people give meaning to associated stimuli in interaction with their pre-existing personal characteristics, experiences, and social relations.
6. Conclusion and Implications
We propose several avenues for future research that could extend beyond this study. The key constructs (marketing communication, product quality, price, service quality, perceived value, brand loyalty) were focused on a single brand and sector; thus, the future possibility could explore these constructs in a context comprising various brands and sectors with significant growth potential across different industries. As the constructs (digital and traditional marketing communication, perceived value, brand loyalty) were drawn from Magic Koil Singapore, the products and solutions discussed in this paper are not generalized in different international markets. Our study encourages future researchers to build and test the proposed model using international customer data. These avenues for future research can help contribute to the development of the literature on the consumer’s perception of value and the significance of marketing communications in today’s competitive economic environment.
Magic Koil is a leading home-grown mattress brand headquartered in Singapore, recognized for its relentless innovation, quality mattresses, and expert sleep solutions. As Magic Koil’s exclusive support group, Edictus Consulting recently undertook a detailed marketing strategy framework to revamp the marketing strategies and improve consumer brand engagement. Our research ultimately sheds light on the impact of various marketing strategies on consumer perception and gives several valuable insights and recommendations for marketers. The objective of the research was to analyze the impact of marketing communications (digital and traditional), service quality, product quality, and price on the consumer’s perception (brand loyalty, perceived value) and the causal relationships among the constructs.
6.1. Key Findings and Contributions
In constructing an integrative understanding of the link between marketing strategies and consumer perceptions of Magic Koil mattresses, this study makes a number of key contributions. The study has sought to bridge the work in the service marketing, understanding consumers’ cognitive processing of marketing strategies within a preference articulation framework. A mixed method approach revealed that Magic Koil’s project brief, product model and physical sleep experience have led consumers to articulate five complex needs relevant to public health. This study has outlined a number of consumer myths, attributed to Magic Koil’s advertising, advertising model, advertising and product. Campaign best practice was also critically evaluated. After accounting for DMA membership, visitor history and sleep experience, four consumer characteristics were found to be predictive of product choice. The problems, solutions and implications inherent in the above findings, including campaign evaluation techniques, are discussed in the next chapter.