Mark D. Imhoff
MM522 (Marketing Management)
Sunday, September 18, 2011
Suspension beds is a revolutionary product of which is very attractive to expanding families, kids, students, and trend-setters. The product utilizes wasted overhead space in bedrooms for the purpose of freeing up the entire square footage of the room to use as one so desires. The product and company has little direct completion, the benefits are immeasurable and the growth potential for the company is enormous. The product leverages cost savings when it comes to customers needing more space, and ...view middle of the document...
These beds can be fully suspended from the ceiling, partially suspended with a portion hard-mounted to the wall, or partially suspended with supporting structures to the floor. The room size will ultimately determine the bed options (single, double, full, queen or king), but in most standard rooms, two twin or two double beds can be suspended. Access ladders can be fully permanently secured (in most cases to the wall), removable or retractable for easy access to the entire space below. Ladders, like the beds themselves, can be made of any material but are most commonly made to match that of the beds construction.
Material used for suspending the beds comes in a wide range of options, from chain to cable and from metal to wood. The frames, or structures, are made of materials capable of holding 500lbs per bed. The Ideal rooms for installing a suspended bed will have a ceiling height of 8’ 6” or higher. All beds have side extending above the mattresses, though additional rails can be added for additional security of younger kids. Beds are not recommended for kids younger than 8 years old.
The product fills the need for expanding usable space of growing, or expanding, families, students or even shared rooms/homes, and where limitations for expanding exist due to building restrictions, architecture, structural, external space, or finances.
The target marker for Suspension Beds, being that the business it is much more specialized than its limited competition, is relatively small in comparison to a major home-furnishing company. The marketing will be very localized, customized and will include a significant amount of one-to-one marketing. There is no real age bias in the target market, with the exception of the elderly, of which will be excluded as a target. At the current time, the business is strictly servicing the local Phoenix-Metropolitan area due to the nature of the “made to order” business along with custom installation requirements. Even though the Target Market spans many age groups, generations, and even income levels, the target market will be smaller in size within any population. There will be segmentation of the target market using home pricing, not home sizes, as home price will be adequate in this area. The primary targets will be as follows:
Lower to Middle Income, Expanding Families;
Within this demographic “space” requirements are continually challenged by the availability of funds to acquire it, particularly when speaking of home renovations and expansions. This will be the largest of the three identified Target Markets, consisting of approximately 1/2 of the overall TM. Geographically, this target market is located throughout the valley, in the middle-income neighborhoods which is approximately $30k to $62.5k household income (US Census Bureau, 2006 – Appendix A). The slogan “the cheapest way to add a room to your home” will be a key...