At first glance it’s tempting to think of the bedding/mattress market as being highly commodified, outside of the very high end of both mattresses and furniture. Yet operations such as Snooze (the re-branded Capt’n Snooze) prove everyday that that it is possible to differentiate these ultra-personal and essential products (where we spend over a third of our lives) through promotional attitude, high-quality marketing, and in-store presentation.
As Simon Beaty, managing director of Snooze puts it, “Our point of difference lies with our focus on customer needs. It’s not about the cheapest product but the ‘right product’ for the individual, displayed in an inspirational setting that garners sales and market share.” It’s an approach that has netted the company an increase of around seven per cent for the July-September quarter of 2010 over the same quarter the previous year – an impressive performance given the difficult economic conditions.
Still a pioneer
The original Capt’n Snooze brand was one of the first companies in Australia to adopt the franchising model to enable market expansion. The first Capt’n Snooze store opened in 1974, and the company began franchising a few years later. There are still franchisers who have been operating their stores for up to 20 years.
Growth continues today. With the addition of a store in Chadstone (VIC), Kotara (NSW) and Alexandra (NSW) the total store numbers are up to 73, with plans to expand to 100 stores by 2014. The number of company stores has decreased, with many staff reinvesting in the business. When looking for new franchise partners, Snooze’s formula is simplicity itself: “Snooze looks for the right sites and the right people,” Beaty explains.
Snooze spends a good deal of its time looking after its franchise partners. They offer training for franchisees and individual stores, and there is online training available as well. A merchandising manual has been developed to help store owners set up their displays to get the most traffic and sales, while matching certain branding standards. Catalogues are available for store owners, which can be adapted to suit individual markets while retaining a core consistency to match the brand’s overall message.
Central to the company’s plans for growth is its rebranding strategy, which in embarked on in 2006. One goal of the rebranding is to help the company continue to appeal to what Beaty terms the “mid-market customer” by providing a value proposition. “A relevant offer for mainstream Australia,” is how he describes the essence of the brand.
Another aspect of the brand the company is working on is its digital strategy. The focus is not so much on ecommerce, as on providing a clear description of the available products, their features and benefits, along with information about how to get to the nearest Snooze store. The strategy is set to be rolled out during 2011.
The market today
“Consumer confidence will remain inconsistent with the impact of the latest interest rate increases,” Beaty says. However, he doesn’t see this as necessarily being an impediment as “Snooze provides real value to its customers.” Added to that is Snooze’s position as a retail chain that can provide ready access to the seasonal and fashion changes that occur with regularity.
In terms of stock, Beaty says that the increase in the value of the Australian dollar continues to make it difficult for Australian manufacturers to compete. Nonetheless, “there is more local product than imported product at Snooze stores,” he claims, adding that Snooze sees itself as a strong supporter of Australian manufacturers. He believes the brand needs to offer consumers a range of products so that they can easily choose the option that suits them.
Overall, there continues to be a lot of development in mattresses and furniture. Current trends in the market include a move from darker to lighter materials, such as woods. Timber with more “character” is becoming more popular, Beaty says. There has been an increase in sales in children’s ranges, he notes, as well as in king-size bedding, which he attributes in part to an increase in the size of master bedrooms in suburban homes. At the other end of the spectrum, apartment dwellers are seeking beds that provide easily accessible storage. Another trend is an increase in the purchase of accessories such as linen and Manchester, as Australian consumers seek out inexpensive ways to freshen the look of their bedrooms.
Future
Beaty sees the bedding market as remaining very competitive for the next several years. Snooze’s main competitors are Bed Shed, Harvey Norman and Forty Winks. To keep ahead of the competition, Snooze is planning a new, updated product range, with a particular focus on revamping its well-known Madison and Slumberland ranges of mattresses, along with a focus on exclusive ranges, such as its Sleep to Live mattresses with “My Side” technology. Some recent promotional moves have already borne fruit, especially the company’s “show your card” campaign run in association with automobile associations.
However, the way ahead remains firmly marked by the core values of Snooze: personalized attention to provide inspiration in creating your bedroom and the knowledge to provide the right product for enhanced sleep and wellbeing…all at a range of price points to suit the market, adding extra value wherever possible.