Bedding Industry Survey Analysis
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1 1750 H Street NW, 2nd Floor, Washington, DC P F hanoverresearch.com Bedding Industry Survey Analysis Prepared for Leggett & Platt, Inc. In this report, Hanover Research analyzes the results of a survey administered to retail salesmen in the mattress industry. MARKET EVALUATION SURVEYING DATA ANALYSIS BENCHMARKING LITERATURE REVIEW
2 Introduction In April May 2012, Hanover Research conducted a survey of retail salesmen in the mattress industry. A total of 139 respondents were surveyed, across 72 stores. The most common stores that the respondents worked in were Mattress Firm (24 respondents), and Ashley Furniture (12 respondents). Most respondents in this survey were either a retail store manager or a retail sales associate (RSA). The respondents were majority male, Caucasian, and most of them have gone to college at least for some time. 2
3 Analysis: Survey Charts Figure 1: Role in the bedding industry (n=139) Survey Question: What is your role in the bedding industry? Bedding Manufacturer 3% Retail owner 14% Retail sales associate 41% Component Supplier 1% Retail manager 41% Most respondents in this survey are either a retail store manager or a retail sales associate. Figure 2: Opinion of the bedding industry (n=139) Survey Question: What is your overall opinion of the bedding industry? % 4 38% 12% 1% 1% I love it I like it It's okay I dislike it I hate it 86% of respondents have a positive opinion of the bedding industry (either love or like it). Very few respondents (2%) dislike or hate the industry. 3
4 Figure 3: Importance of components in building mattresses (n=138) Survey Question: In your opinion, how important are the components used to build mattresses? 9 84% Extremely important 13% Important 3% Somewhat important Not at all important Most respondents believe that the components used to build a mattress are extremely important. Figure 4: Have enough information to speak about the components of a mattress (n=138) Survey Question: To what extent do you agree that you have enough information to speak intelligently about the components in the mattresses you sell? % % Strongly Somewhat Somewhat 1% Strongly Nearly half the respondents strongly agree that they have enough information to speak intelligently about the components of a mattress. 4
5 Figure 5: Encourage friends to enter industry (n=138) Survey Question: Would you encourage your friends to get in the industry? % Yes, I definitely would 4 Yes, I probably would 29% Maybe 9% No, I most likely would not 4% No, I definitely would not A majority of respondents said that they would either definitely or probably encourage their friends to join this industry. Figure 6: Advancement opportunities in this industry (n=139) Survey Question: Do you see an opportunity for you to advance in this industry? I see a large opportunity 33% I see a medium opportunity 18% I see a small opportunity 9% I don't see any opportunity at all While most respondents see opportunities to advance in this industry, nearly a third (28%) either see a small opportunity or don t see any opportunity to advance. 5
6 Figure 7: Rate the overall integrity of the bedding industry (n=139) Survey Question: On a scale of 1 to 10, how would you rate the overall integrity of the bedding industry? 18% 16% 14% 12% 8% 6% 4% 2% 3% 3% 7% 9% 14% 1 19% 1 12% 4% On average the respondents rated the integrity of the industry at 6.21 on a scale of 1 to 10, with 10 being the highest. Figure 8: Source of industry education (n=139) Survey Question: Where do you get most of your bedding industry education? % 1 16% 12% 2% Bedding reps The company I work for Manuals and literature Web-based education (online communities, websites, etc.) Colleagues I don't really get help The largest sources of information are the bedding representatives and the company employing the respondents. 6
7 Figure 9: Comparison of alternative purchase options compared to a new mattress. Survey Question: Would your customers rather be spending money on this item than a new mattress? % 28% 73% 72% 7 New Computer (n=139) New TV (n=137) New Car (n=138) 53% 47% New Sofa (n=136) 76% 24% New Set of Tires (n=139) Yes No, will buy new mattress Most representatives believe that their customers would rather be spending their money on a new computer, a new TV or a new car. A large majority of representatives do agree that their customers would rather buy a new mattress than buy a new set of tires for their car. Figure 10: Usefulness of brochures, posters and displays (n=139) Survey Question: Do the brochures, posters, and displays in your store help you sell products? % 4 27% 14% 11% They are essential They help a good amount They help to some extent They do not help at all Very few representatives think these materials are essential, though, most representatives agree that they help to some extent. 7
8 Figure 11: Does the representative s store offer a strong selection of accessories? (n=139) Survey Question: To what extent do you agree that your store offers a strong selection of bedding accessories (pillows, mattress protectors, etc.)? % 39% 18% 73% of the respondents agree or strongly agree that their store offers a strong selection of accessories. Figure 12: Ideal warranty for premium mattresses (n=139) Survey Question: For a premium mattress product, what should the warranty be? Strongly Somewhat 28% Somewhat 3 1% 3% Strongly 32% 1-5 years 6-10 years years More than 15 years Two thirds (67%) of the respondents think that the ideal warranty for a premium mattress should be more than 10 years. 8
9 Figure 13: Down time on a typical day (n=137) Survey Question: How much "down time" do you have during a typical work day? under an hour, 28% more than 3 hours, 33% 1-3 hours, 39% There was a wide range of how busy the respondents were in a given day. A third had more than 3 hours of down time, while an equal number (28%) had less than an hour of down time during a typical day. Figure 14: Time spent selling products over the phone (n=138) Survey Question: How much time do you spend each day selling your products to potential customer referrals on the phone? more than 3 hours, 3% 1-3 hours, under an hour, 78% Most respondents spend less than 1 hour selling products over the phone to potential customers. Very few respondents (3%) spend more than 3 hours on the phone per day. 9
10 Figure 15: Propensity to make thank you phone calls or notes (n=137) Survey Question: How often do you send thank you notes, or make thank you phone calls? 28% % 18% 17% 16% For every sale For most of my sales For less than Rarely/Only for half of my salesimportant sales Never 5 of the respondents say that they send a follow up thank you note or phone call either after every sale or after most sales. However, 33% of the respondents rarely or never send a follow up note. Figure 16: Propensity of conducting drive the business efforts Survey Question: How often are you conducting outbound, "drive the business" type efforts (building relationships with chiropractors, doctors, etc.)? % 8% Every day At least once a week 23% At least once a month 8% At least once every three months The largest plurality of respondents (32%) never spends any time conducting drive the business efforts. 9% At least once every six months 7% At least once a year 12% Less than once a year 32% Never 10
11 Figure 17: Does respondent s store do a good job at convincing customers why they should shop at their store? (n=139). Survey Question: I believe my store does a good job of convincing customers why they should shop at it, instead of at another store % 17% 1 Strongly Somewhat 2% 3% Somewhat 73% of respondents either agree or strongly agree that their store does a good job in of convincing customers why they should shop there, instead of at another store. Strongly Figure 18: Understanding of the company s forward looking strategy (n=138) Survey Question: I have a clear understanding of my company's forward-looking strategy % 34% 2 1 4% 4% 2% Strongly Somewhat Somewhat Strongly 7 of respondents either agree or strongly agree that they have a clear understanding of the company s forward looking strategy. Only 6% disagree or strongly disagree that they have a clear understanding of the company s forward looking strategy. 11
12 Figure 19: Frequency with which boss meets with respondents to learn customers feedback (n=136) Survey Question: My boss meets with me to find out what I'm hearing from customers on the sales floor % 33% 24% 4% 7 of respondents meet with their boss at least once a month; 51% meet once a week or more. Figure 20: Signing bonus amount for which respondent would leave the bedding industry (n=136). Survey Question: If I knew I could maintain my current income, I would leave the bedding industry for a signing bonus of Every day At least once a week At least once a month At least once every three months 6% At least once every six months 4% 3% At least once a year 5 Less than once a year 8% Never 26% 14% 3% 1% $1,000 $500 $250 I would not leave my current job Other: A majority of representatives would not leave their current job. 12
13 Better training Increase advertising Product merchandising Improve the look and feel of the store Improve culture Reduce employee hours Increase store hours Other: HANOVER RESEARCH MAY 2012 Figure 21: Avenues for improvement (n=138). Survey Question: My Company needs to do the following to improve (select top 3) % 41% 4 28% 17% 14% 6% Better training, increased advertising and better product merchandising all received over 4 responses when asked to select up to three channels where the company could improve. Figure 22: Most Important to Customers (n=139). Survey Question: Which of the following do you think is most important to your customers? (Select top 3) % % 4 24% 17% 12% 9% 8% Comfort was chosen by 81% of the respondents when asked the top 3 most important factors for their customers. Price was second with 7. No other factor was mentioned at levels greater than 5. 13
14 Tempur-Pedic Simmons Serta Sealy Comfort Solutions Corsicana Therapedic Englander Kingsdown Other HANOVER RESEARCH MAY 2012 Figure 23: Frequency with which respondent pushes customer toward the respondent s favorite brand (n=138) Survey Question: Do you push a customer to your favorite bed or brand? % 1 19% 14% 4% For every sale For most of my sales For less than Rarely/Only for half of my salesimportant sales Never This question reveals that there are two types of sales representatives, 34% who almost always push their customers toward the brands they like, and 47% who usually let the customers make up their own minds. Figure 24: Favorite Brand (n=139). Survey Question: What brand or bed is your favorite? % 23% 18% 6% 2% 1% 1% 1% 1% 18% Tempur-Pedic, Simmons and Serta are the three most popular brands. 14
15 Figure 25: Main reason for favorite brand (n=139) Survey Question: What is the main reason that this is your favorite bed or brand? % This bed or brand's product is simply better 24% I have this bed or brand 9% This bedding brand services our business better than the others Customers often ask for this bed or brand 7% I know more about this bed or brand than any other 4% I make the most money selling this bed or brand 3% I like the bedding rep Quality is the main driver of why a brand is favored. Personal ownership is the second most common driver of why a brand is favored. Figure 26: Respondents Gender (n=138). Survey Question: What is your gender? Prefer Not to Respond, 1% Female, 28% Male, 71% 15
16 Figure 27: Age (n=118). Survey Question: Age 27% % 21% 13% Figure 28: Respondents Race (n=136). Survey Question: What is your race/ethnicity? 1% 1% 1% 1% 4% 4% Caucasian Hispanic Prefer Not to Respond Black/African-American Other 87% Asian/Pacific Islander 16
17 Less than high school graduate High school graduate (includes equivalency) Some college, no degree Associate's degree Bachelor's degree Graduate or higher professional degree Prefer Not to Respond HANOVER RESEARCH MAY 2012 Figure 29: Respondents Annual Household Income (n=137). Survey Question: What is your annual household income? 2 22% 18% 17% 1 14% 9% 2% 3% Less than $25,000 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $124,999 $125,000 to $149,999 $150,000 or More Prefer Not to Respond Figure 30: Respondents education (n=137). Survey Question: What is the highest level of education you have completed? 38% 12% 1% 4% 17
18 Figure 31: Preferred Charity (n=139). Survey Question: In exchange for your participation, Leggett & Platt will be donating $20 to one of the following charities. To which charity would you like us to give on your behalf? Seena Magowitz Foundation, 22% Autism Speaks, 78% Autism Speaks is the preferred charity for 108 respondents. Changing one thing about the industry (n=87) Open ended question: If you could change one thing about the industry, what would it be? The most popular answer was dishonest competition combined with integrity. 13 out of 87 responses (1) mention something along these lines. An example of a representative response: Fewer sleazy, dishonest sales people. Everyone wants to make a sale, but the sales people who flat-out lie to customers give the entire mattress industry a bad name that's hard to overcome. The second most popular response was greater public education regarding mattresses with 6 such responses. A representative response, Better understanding about insomnia/sleep and pain/ sleep disorders. A few responses mention they would like to change long or unusual hours. Full text is available in the file previously provided to Leggett & Platt entitled Bedding Industry Survey Crosstabs - Leggett & Platt, Inc.xlsx 18
19 Project Evaluation Form Hanover Research is committed to providing a work product that meets or exceeds member expectations. In keeping with that goal, we would like to hear your opinions regarding our reports. Feedback is critically important and serves as the strongest mechanism by which we tailor our research to your organization. When you have had a chance to evaluate this report, please take a moment to fill out the following questionnaire. Caveat The publisher and authors have used their best efforts in preparing this brief. The publisher and authors make no representations or warranties with respect to the accuracy or completeness of the contents of this brief and specifically disclaim any implied warranties of fitness for a particular purpose. There are no warranties which extend beyond the descriptions contained in this paragraph. No warranty may be created or extended by representatives of Hanover Research or its marketing materials. The accuracy and completeness of the information provided herein and the opinions stated herein are not guaranteed or warranted to produce any particular results, and the advice and strategies contained herein may not be suitable for every member. Neither the publisher nor the authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Moreover, Hanover Research is not engaged in rendering legal, accounting, or other professional services. Members requiring such services are advised to consult an appropriate professional. 19
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