Magic Koil mattress review
Mattress availability and quality have become key factors in urban life with improved living standards. Mattresses account for 28% to 38% of all household furniture items, ranking as the top import item in a range of countries and attracting increasing attention. Korea and Japan are among the top 10 target markets for the mattress industry and the Korean mattress industry is highly dependent on home sales of single households. The Japanese single population continues to increase, but sales prospects are hampered by the declining population. This necessitates a shift to the global market, but there is a lack of data for strategic development and comparative analysis. The proprietary evaluation sites of Japan and Korea were collected for the full text of 711 product evaluations for Japanese and 755 product evaluations for Koreans. A heuristic code approach for Chinese written data was performed and verifiable by multiple coders. The heuristic coding was separated in the discovery phase, and then about 10% of overlapping text data was used as a validation set. We worked to eliminate variables through an inductive review of products and develop and answer research questions. This analysis is significant in determining the characteristics of the two businesses by exploring the psycho-social characteristics of the users of the two countries as gateway business communities. In addition, it is expected to contribute to the advancement of consumer expectations on mattress reviews as a source for development and marketing strategies.
The purpose of this study is to conduct a comparative content analysis of 711 Japan and Korea product evaluations on their country’s largest product review website, kakaku.com (kakaku.com Japan, kakaku.com Korea). This study extracted and examined consumer evaluations of a representative mattress brand ‘Magic Koil’ available in both Japan and Korea to compare the consumer behavior of the two countries and, ultimately, explore how each operates. The findings reveal vast differences between Japanese as foreigners and Koreans as locals in terms of how they consume the same product.
1.1. Background of Magic Koil Mattresses
Through the survey conducted at the point of sale (POS) in Japan and Korea, we found that the attributes and dimensions of product quality for Magic Koil Japan size mattress differ across the two countries. While the product quality dimensions inspected in Korea and Japan were equal in number, we found different numbers of the attributes behind the product quality dimensions. In both countries, dimensions of service quality are the same, yet they differ in the attributes. Due to the limited scope of the study, we collected data from only two countries. However, our study is a significant and pioneering research because this kind of product quality study at POS targets only the physical store in the global marketing area. Our findings also offer practical guidelines to the company to understand country-specific different points affecting product and service quality to determine their service strategies.
Magic Koil korea size mattress was born in the heart of peaceful and festive Singapore in the late 80s. Driven by quality, the company, which started with 10 employees, expanded to over 1500 employees in the year 2009. Sales soared and the bed revolution began. It was not long before Magic Koil Mattresses gained prominence in local and worldwide markets.
1.2. Purpose and Scope of the Study
The purpose of the project is to study the differences shown for similar products from Japan and Korea on the basis of a direct appeal to the manufacturer. You have 2 real-world cases of similar mattress brands for export to Japan and Korea. As research methods will be used the allocation of dimensions of boundaries of utilitarian factors and scaling for weight, length and volume, which are developed in a linear approximation of the function of dimension of non-exclusive price of delivery. Accuracy of the methods is estimated by the relative closeness of the prices, calculated from tables of these factors for mattresses of different sizes, to the prices of direct references on import delivery. The resulting price variations for all non-exclusive delivery rates are modeled.
The article studies competition policy in Japan and South Korea, based on the experience of the developer of Magic Koil mattresses for 2000 pieces. This is one of the few real-world cases of similar products from Japan and Korea, as the cost of shipping these items is very high. Different conditions for finding goods in private use and expanded access to the conditions of delivery are determined. As a result, the cost of the Korean product was superior to the price of the Japanese one for all additional conditions of reduction of non-exclusive prices. There are several other factors besides prices that speak for the dominance of developed countries in the creation and delivery of goods used in Japan.
2. Methodology
To predict the probability that a product’s choice is made on the basis of joint consideration of a set of relevant attributes, conjoint analysis and consumer preference models were used. For example, the logit model, the rank ordered probit model, and discriminant model are some relevant models useful for situations in which the dependent variable is dichotomous. Data were gathered by using a mail survey of Korean and Japanese consumers. A constructed conjoint analysis questionnaire and a demographic data sheet were both mailed. The sample was from the Japanese general population and Korean general population living in metropolitan regions of Korea.
This paper studies the consumer preference for the Magic Koil mattress, which is known for providing good comfort for several hours of sleep, even though it is expensive, and whether there is a difference in purchase factor preference for consumers in Japan and Korea. Conjoint analysis was conducted to compare the factors that influence the preference of Korean consumers and Japanese consumers for Magic Koil mattresses. To determine consumer purchase intention and important factors when purchasing a Magic Koil mattress, a survey was conducted with Korean and Japanese subjects. There were 15 factors that might influence the purchase preference for the Magic Koil mattress. They included a price range variable, a brand name variable, and 13 factor variables. However, brand name and price did not have different levels. The composite variable had so much pretentious that it was eliminated from the study in order to reduce the confusion and reluctance of the respondents.
2.1. Research Design
Magic Koil is a well-known local producer in the field of mattress production. The company has existed for a long time and has managed to obtain an established market niche. Several strengths of this manufacturing company can be mentioned. One of them is the fact that Magic Koil has managed to be more competitive in a market with strong rivalry, including from aggressive and skillful foreign companies. This circumstance implies that the company has the strength to adopt flexible pricing policies and was able to maintain a reasonable service and good quality level. From the viewpoint of the authors, this company perfectly embodies the excellence of local producers in the mattress market segment, providing high-standard products and intelligent distribution strategies. In particular, it is quite interesting to make a comparison on the level of the same company’s sales performance in the two different countries. The quality of contact with key insiders facilitates the inclusion of company principals in future research.
To find out the existence of specific features of the products launched by Magic Koil in order to attract foreign customers, it was decided to examine the assortment of the two sales offices of Magic Koil in Japan and Korea. Continuous direct contacts with the company’s management team and its sales department helped to collect a relevant and useful sample. It will be appropriate to explain the choice of these two countries and this company.
2.2. Data Collection Methods
The interview method enabled us to gain better insights into areas which were not apparent on the questionnaire, such as changes in demand and sales strategies, product differentiation, price discrimination, and other analytical models. Providing a general overview of the sales environment in Japan, it was mentioned that certain aspects of the operation were peculiar to Japan and Asia, and several interesting and unique aspects of the domestic and international sales strategy were suggested. First, direct government intervention effectively establishes price subsidies. Second, subtle technological equipment differences as well as production inputs and sales training were seen as vital components for market penetration. Finally, target end users and sales environment characteristics impinge on price discrimination, product differentiation, and service quality requirements.
We interviewed a senior brand manager at Magic Koil who provided us with detailed information concerning their Japanese operations. The responses included both factual information and personal management perspectives. Additionally, as a result of oversupply problems in the Korean market, three well-informed Magic Koil Korean sales managers had worked for Magic Koil in Japan for three to five years and provided insights on the unique characteristics of the Japanese and Korean operations. Finally, two experienced Japanese and Korean franchisees provided detailed information which enabled us to incorporate the strategic and tactical marketing concerns within and among the two countries by allowing our questionnaire to reflect actual market behavior and strategy on the part of the clients.
3. Magic Koil Mattresses in Japan
It is very similar to the case that Roem (Lohaz) products in Japan have mainly been sold to the older Koreans in Japan as Western-style fashion, while they are marketed to younger Koreans regarding intrinsic cultural significance at the retail stores upon a new product launch in Korea. Moreover, then what about Magic Koil in Korea? If being featured in the market for luxurious mattresses in Japan, how can it position itself in its domestic market?
3. Magic Koil mattresses in Japan Magic Koil mattresses are primarily featured at import shops with either Korean or Chinese connections. They have been sold mostly as a luxurious Western-style mattress, partly because Magic Koil Ltd. made substantial effort to bring the image of mattresses up to the accepted Western standard. Among these stores, the ones with Korean ties are mostly run by Japan-returned Koreans or Zainichi (Japanese Koreans), focusing their business on middle-class homemakers who are enthusiastic about Western culture and living styles. They claim advantages of their products are an international brand, the lowest pricing, and decent quality, but at the same time, they also rely on entertaining customers with effective communication, complementing a shorter but responsible history of Chinese import stores for such merchandise.
Comparative analysis of Magic Koil mattresses in Japan and Korea
3.1. Product Range and Features
The literally “king size” of such models is our brand-new mattress. Magic Koil “Royalty” represents the inner frame and his mattress by an exclusive luxury sleeping aura. Its internal construction is a mixture of foam and individual pocket springs dividing it into four zones, which suits the various parts of the body. Then it can be combined with three layers of coconut coir. All this provides to the person who is the lucky owner of this miracle of engineering thought, a direct impact and the feeling of the safety net. You can take it as high as 35cm. There is no luxury price for it, considering the king mattress – it is an exceptional production. That’s because the cost of assembling it is almost as expensive as the mattress itself.
During their long history of manufacture, the plant of Magic Koil has developed a wide range of mattresses that can satisfy various, sometimes even the most demanding, requirements of any client. The entire range of patented exclusive products includes “no turn, pillow top, storage, memory foam, viscose (natural Eucalyptus thread), Aloe Vera, Anti Dust mite, Anti Insect repellent, Bamboo Charcoal, Nano Silver, Ultra Fresh” and many other models and designs. Every day we produce a wide range of mattresses – from economy class to premium mattresses of VIP quality. The list of the most prominent models even includes custom-made mattresses to your designs and dimensions, the number of which we produce. Participants are constantly striving to satisfy customer demand in the shortest time possible.
3.2. Market Presence and Customer Base
In Japan, Magic Koil brand has been promoted and known to the Japanese consumers outside of Singapore. The bulk of Magic Koil sales was from Japan, 87.5% of Magic Koil international mattress sales.
It is also apparent that respondents knew at least 1 more mattress brand from the list provided than Magic Koil. In Japan, 73.2% of the respondents knew 2 other mattress brands compared to 61.2% of the respondents in Korea. Of this, 65.9% of the Japanese respondents did not know that Magic Koil was from Singapore. Commercially in Singapore, Magic Koil was well accepted that the respondents were not aware that Magic Koil was from Singapore. In Korea, 88.1% of the respondents were not aware that Magic Koil was from Singapore. This is more exaggerated than Japan. Of the Korean respondents, 84.2% did not know Magic Koil was established in Singapore. Only a mere 15.8% of the Korean respondents knew Magic Koil was established in Singapore.
In Japan, as many as 24.4% of the respondents were aware of Magic Koil while in Korea, only 13.7% of the respondents were aware of Magic Koil.
In comparing the market presence of Magic Koil in Japan and Korea, Magic Koil is more localized with the Japanese community as it is clearly a made in Japan brand using British technology and designs while in Korea, Magic Koil is more of an import from the Far East Asia. This is because there was already a very strong local mattress brand in Korea. The same local mattress brand presence is displayed in Japan. The following charts 7-10 will illustrate the market presence and customer brand name familiarity of Magic Koil in Japan and Korea.
4. Magic Koil Mattresses in Korea
Magic Koil insists that the main reason for its high-quality products is mainly due to the high heat and faster heating in their company. For a mattress that consumers can use to sleep comfortably, it is important that the mattress made from the coils be evenly distributed and have the characteristic of high elasticity. Furthermore, the company claims that it uses proprietary processes such as pressure heat generation, wire drawing, and the outer circumference of the spring, as well as innovations in raw materials and equipment from producers around the world. Cooperation with producers from around the world is the main reason for the high quality of Magic Koil’s products. Based on Singapore’s confidence in its products and its own strict requirements, the company has actually built a number of plants in Singapore and established brands. Eight regular employees applied their products to other Southeast Asian companies and tried to be proud of the high-quality Magic Koil premium mattress. However, it is important to note that the brand is made in Singapore and the mattress is produced in Southeast Asia.
The Korean government implemented different policies to develop the mattress industry and lower the price of Magic Koil’s products. As a result, Magic Koil offers cheaper and more diverse products than other companies. Of course, Magic Koil is selling products in various fields because consumers can feel the competitiveness of the products. In 2004, Magic Koil built plants in Malaysia and Vietnam to attract more consumers’ attention to the company’s products, including the Southeast Asian community. In addition to the US, Southeast Asian countries are present in various fields, including JIS, TUV, UKFT, ISO, SGS, SASO, INF, and Oeko-Tex. In particular, JIS is a certification that ensures the springs of the mattress provide a predetermined force and resilience, and are certified products produced by heat-generated wire. That is, when a person is shaken, the springs under conventional products do not stretch at all, causing the body to be distorted and bounced.
Koreans do not have many chances to purchase Southeast Asian brands that are not well known. It is one of the characteristics of Korea that it mainly consumes home-country products only. Despite these characteristics, Magic Koil is another unique distribution model that allows consumers to purchase Magic Koil products in Korea. Magic Koil products sold in Korea are manufactured in Malaysia. Magic Koil mattresses are produced in two areas. One is in Korea, where there is a special order for Magic Koil Korea consumers. Additionally, Magic Koil mattresses are sewn in Korea, and springs and other products made by domestic Korean companies are processed and then sold. Another way Korean consumers can use Magic Koil Malaysia products.
4.1. Product Range and Features
In Korea, the Magic Koil trademark does not produce spring mattresses. On the other hand, the company offers a large assortment of rubberized coconut mattresses, such as the well-protected Miracle Lush, Tesla, Iris, Terry, and other series. Each series of mattresses consists of a three-layer construction. The body of the mattress consists of a durable base layer, coconut fibers independently wrapped in fabric, and a comfortable layer for the user. All models of mattresses are designed for different types of loading, durability, density, rigidity, and have various functions (improving blood circulation, adjusting the spinal column, enabling a comfortable feeling, etc.) to satisfy a full range of customer requests. At the same time, a series of Magic Koil is represented by different heights and different thicknesses of the latex layer. Depending on the function, the cover material is chosen from Aloe Vera, Silk, Milk, etc., and a 3D mesh material with a decorative pattern that gives the mattress a pleasant appearance.
In Japan, the company Magic Koil mainly offers spring and hybrid mattresses in series, such as Magic Koil with separate pocket springs, Magic Koil Cushion Pocket Spring, Magic Koil Chateau Comfort, Magic Koil Luna, Magic Koil Aloe, etc. Regardless of the line, each mattress consists of a core of independent springs separately wrapped in fabric. They isolate the movements of their users so that they do not feel discomfort during the work of partners. For those who have restless sleep, the separation of the spring mattress is the best solution. The core is sandwiched between layers of foam or latex. All mattresses come with a quilted 100% jacquard fabric mattress cover.
4.2. Market Presence and Customer Base
The strong levels of price and quality competition that have always characterized the Korean domestic market have had an accumulative influence on the level of sophistication in bed design. The Korean domestic bedding manufacturers are actually producing some world-class designed beds. Despite this, Magic Koil mattresses in Korea can be competitively priced relative to locally produced similar quality beds due to the Korean bed manufacturing industry’s high-cost structure. However, Magic Koil now recognizes the speculative attractions of small but quality preferring buyers in local specialty shops. But Magic Koil has barely managed to stay afloat in a sea of local seabed manufacturing competition and recession. In recent years, compounded by the credit squeeze, these long-standing contacts in the established customer base have become markedly more aggressive in negotiating even greater price reductions.
The company’s customer base largely comprises local department stores or apartment builders in Korea. Throughout Magic Koil’s long Korean market presence, the company’s contacts with the Korean customer base have gradually developed to involve the local business culture and business practices. However, the customer demand placed on these contacts is not as extensive nor as specific in its marketing requirements. The more direct exposure of the Japanese retail consumer to the market also allows firsthand experience of consumer demand and market trends. This is not so, considering the customer demand placed on information technology and computer software development in the Japanese producer-organized corporate culture. When we talk of Japan as a producer-oriented consumer market, we are usually referring to the level of marketing and market activity, or the textbook trading practices of the major trading companies.
5. Comparative Analysis
With the technology in-house, Magic Koil continued to evolve as world-class designers and producers. In 2003, a technology sharing agreement was signed that allowed advanced Belgium licensed Bonnell Springs to be manufactured in Japan. Magic Koil branded its product as Brushed and upped its game by introducing it into wider distribution systems. The introduction of Foam Wood and the ongoing development of its premix-spring products made Magic Koil an excellent ‘All-in-One’ choice for customers. Currently, Magic Koil Korea, via the exploration of research and development works on the new materials within the industry and engagement of Italy licensed technology to produce individually wrapped pocket springs, continues to become a truly world-class designer and manufacturer of sleep systems.
In 2001, Asamitsu exercised its right to acquire the remaining 49% of the shares within Asamitsu Bedding. Thereafter, Asamitsu renamed itself Magic Koil Japan. The Japanese market is competitive, and it takes success in two crucial steps – brand names and targeted selling. To retain its success, Magic Koil established the following independent brands for the following customer profile.
Magic Koil first entered the Japanese market in 1991, when one of its agents, Mimatsu Co. Ltd, was appointed. In 1998, Magic Koil, with the assistance of JBIC (which provided much-needed working capital accommodation by way of an extended factoring facility), acquired a 51% controlling stake in Asamitsu Bedding Company Limited. Asamitsu had a long history in bedding and competed in the upmarket sector, with its own top independent brands. The acquisition of Asamitsu Hotel was Magic Koil’s first step in setting up our bed-and-mattress manufacturing base in Asia. Asamitsu, with its excellent business connections, complemented Magic Koil on the range of hotel products which could be placed within Japan. Together, a sophisticated modern latex factory was built to produce both Asamitsu and our Openside collection. A new showroom was also established to display the joint product ranges to prospective buyers of the product within the region.
5.1.1. Japan: Acquisition of Asamitsu and Brushe
5.1. History of Magic Koil in Japan and Korea
5.1. Price and Affordability
The exchange rate between two countries is the most common reference used in comparison of differences between prices, but we believe that a simple comparison using currency exchange rates is not enough. There are factors such as import costs, middlemen, and preference for foreign goods that magnify the gap between the price of products sold in two nations. So we propose to include additional factors in comparing the prices shown in this paper. When it comes to import costs, countries with a Free Trade Agreement (FTA) can import goods without tariffs or quota restrictions. Because of an FTA, the Magic Koil mattresses made in Malaysia could incur cheaper import costs, so consumers get these mattresses at cheaper prices than the other countries without any FTA.
In fact 5.1, we compare the prices of the 15 models offered by the Magic Koil brand in Japan and Korea. The wholesale price and highest selling price at the dealer (Yigin Jijik) in Japan were quoted by the dealer. We quote retail prices from South Korea. Magic Koil mattresses are generally more affordable to consumers in Korea than consumers in Japan. All prices are converted to United States dollars (USD) at the exchange rate of March 14, 2015. Although there are various aspects to consider in these price comparisons, it is clear from the quoted prices that purchasing power in Korea is stronger than it is in Japan. The prices in Japan are completely out of range for many consumers, but the prices in Korea are more affordable. The same trend has been observed in other luxury products sold in Japan and Korea.
5.2. Quality and Durability
Comment: Since the products are the same, the mattress has the same quality. The only difference is that the firm in Japan-Korea is absorbing damages and the guarantee conditions. The firm in Japan-Korea is providing cash coupon service. The communication should be improved between the two firms in order to satisfy the customer, who only speaks Japanese or Korean, and who wants limited products with short lives.
The fifth criterion is quality and durability. Koil and Magic Koil are two different brands, which simply produce and distribute the same products (mattresses) to different countries. They are manufactured in similar processes and share the same design. The Magic Koil mattresses sold in Japan are imported from the same company in Korea. The Koil mattresses are exported from Korea and sold in other countries (USA, Malaysia, Singapore, Saudi Arabia, etc.). So, there is no difference between the quality and durability of the two mattresses. However, for complete satisfaction with the product, the seller has to provide the guarantee conditions, the help of the manufacturer, the repair service, and which type of proof (warranty card, cash coupon, etc.) should the customer possess. Also, the firm in Japan-Korea is absorbing damages that could occur. They also have to communicate well in order to meet the requests of the customer with limited Japanese and Korean.
6. Consumer Reviews and Satisfaction
Many consumers are at a dilemma in buying a suitable brand of mattress for their own after marketing Magic Koil mattresses first in Japan and then in Korea. Moreover, Koil Co., a Korean company, has also marketed its mattresses in Japan and conducted Japan market crossover strategies in various aspects. Owing to the marketing strategies of the company, the Magic Koil mattress has captured consumers’ positive attention. Through analyzing the data regarding product features, perceptual judgments, evaluations, and satisfaction toward the Magic Koil mattress, we inferred the attributes design the overall quality perception considering the features of the product, various types of perceptual judgment, and satisfaction of the Korean and Japanese consumers toward such mattresses. With respect to product feature evaluations, we predicted that consumer perceptions or evaluations might differ according to country. Due to geographical, familial, and culture-related economic factors, shared opinions or similarities of neighboring nations are considered very likely. The present study’s purpose is to explore and compare Korean and Japanese consumers’ perceptions and satisfaction with their mattresses available in the Korean market. Such comparisons are generally difficult to confuse economic indicators with consumer behavior. Furthermore, considering a product element’s relationship with managers’ marketing strategies, these contrasts can especially contribute to company Korean mattress-related strategies in the future. The present study’s employed data provide very current feedback for Koil Co. marketing decision-making processes, as they were collected from on-site surveys conducted during the summer of 2001 in Korea and the summer of 2002 in Japan.
According to a study, thirty-one percent of the people had back pain resulting from the bedding while sleeping. Although there are many reasons causing such circumstances, a terribly unsuitable bedding may be one of the causes of the backache. A bed with a bad mattress appears to worsen back conditions of house specialists, back pain. Moreover, increasing consumer affluence has resulted in more emphasis on the social and physiological needs for sleep, which have led to a demand for higher quality mattresses. Koil mattresses, which originated in Australia, are now widely accepted for their high quality. The exceptional popularity of Magic Koil brand may be due to its unique qualities. Magic Koil Co. focuses on providing mattresses that satisfy the customers’ demands, which they are not able to sense from the categories nor the prices itself.
The Korean consumers used their mattresses less frequently than the Japanese consumers, although the Koreans were generally more satisfied with their mattresses than the Japanese consumers. Significant differences between Korean and Japanese consumers’ perceptions of their mattresses were also revealed. The managerial implications of this study regarding marketing leadership strategies and sensory marketing are noted.
Korean consumers’ perceptions of their mattresses, their satisfaction with those mattresses, and a comparison between the perceptions of Korean and Japanese consumers regarding their mattresses were examined. The data of 140 Korean and 192 Japanese Magic Koil mattress buyers were collected from on-site surveys.
