Questions1. Which market segments did WakeFit target?2. Which marketing strategies/tools did WakeFit use to reach their customers?3. List down the types of product ranges which WakeFit offered to their customers.4. What were the external problems which people faced in terms of comfort which WakeFit solved for their customers? And how did they solve it?5. What were the internal issues which WakeFit faced? How did they solve it?6. In your opinion, how can WakeFit grow further in the future? Provide an in-depth strategy which is innovative. "Younger consumers, students, and young professionals at early stages, are usually moreprice- and time-sensitive. They are also in a relatively 'mobile' phase of their life, so theirview of the lifetime of the product is far shorter than an older consumer furnishing a homeor renewing furniture," Devangshu says.Customer experience comes firstWakefit's research has given the team deep insights into their customer base.For instance, their survey found that in India, 48 percent people complained of backproblems, and 80 percent people reported feeling sleepy at work one-three days aweek.From then to nowIn the initial days, team building was one of Wakefit's biggest challenges. Ankit says, "Takingcare of everything ourselves was hard, as was finding the right people at the right time. Wefound the team through referrals and LinkedIn." He recollects the initial days of starting upwhere he only had his cook to help him out with logistics and delivery.To solve the increasing number of sleep-related problems, Wakefit included these criteria(and more) while designing their products. Wakefit claims that its mattresses are madeof proprietary "open-cell structure" for cool summers, and that its high-densityfoam gives complementary support. Body contour is another factor they have focused on.Wakefit claims that its mattresses' memory foam provides pressure relief. Also, sinceimmigrant millennials in metro cities may prefer renting, Wakefit has tied up with onlinefurniture and home appliances rental platform Rentomojo (to provide Wakefit's mattressesalong with their beds). In the B2B space, Wakefit is also in talks with more players.Today, the team comprises 120 people whom the company calls "sleep experts" rather thancustomer care executives. It plans to increase its employee base by 20 percent in 2020.Wakefit's current offerings include two mattresses (memory foam and dual comfort), apillow, a bed frame, and a mattress protector. It plans to soon introduce new categories likecurtains, night suits, bedsheets, neck pillows, pregnancy pillows, nursing pillows,comforters, dog beds, etc. The new product line is expected to contribute about 10 percentof the revenue in the long term.Wakefit products are available on multiple online marketplaces besides its own website. Butdoesn't selling on online marketplaces hurt its brand value? Won't Wakefit be just one of themany brands sold online unless it is exclusively available on their own website? Ankit doesn'tthink so. He believes that customer experience is what matters in building brand value. "Bybuilding on our customer experience, we will thrive. Thanks to the new FDI policies,discounting will not be a game changer anymore."A sleeper hitAlthough mergers and acquisitions are common in ecommerce, Wakefit wants to continueas an independent entity and not be acquired. The company recently raised Rs 65 crore fromSequoia Capital as their Series A funding: Ankit claims most of it is still unused.No offline game for nowThe trend among many ecommerce platforms in the lifestyle category is to provideexperience centres, and promote an omnichannel business model. Home furnishing playerslike Pepperfry, and Urban Ladder, as well as Wakefit's direct competitor Sunday Mattress.have all ensured that their customers get a "touch and feel" of the high-value purchase.India's mattress market is estimated to be worth Rs 10,000 crore. Startups likeCuddl, SleepyCat, Wink&Nod, and Sunday Mattress are all taking sleep seriously, usingadvanced tech and raw materials to build their products. Horizontal marketplaces likeAmazon, Flipkart, Snapdeal, and ShopClues also offer branded and unbranded mattresses. Ifyou include other sleep-related products, the market grows larger, making space for multipleplayers.However, Wakefit does not believe in this strategy. Ankit explains: "Most people, especiallywomen, are not comfortable lying on a bed in front of people. Also, you cannot really knowif you are comfortable in a bed till you use it overnight for a while. That's why we give 100day-return period with 100 percent refund."Devangshu Dutta, Chief Executive at Third Eyesight retail consultancy, believes thatwhile mattresses are high-value, high-involvement products, they are bought onlineby young consumers who are already most comfortable purchasing online. He addsthat they may be less finicky about the product quality and lifetime value."The business is then about creating a brand with a high-quality product and high-serviceexperience. With that approach, mattresses and allied products (such as pllows, cushions,support pads) could be sold to the consumer under the same brand," he says. It looks like theurban consumer who has disposable income to spend on health and personal care will neverbe short of options.Page 3 of 4Page 4 of 4 Ankit reminisces about the initial days. "Internet adopters were our first users. We visitedHow did WAKEFIT earn Rs 114 Cr revenue in 3 years? Byhelping customers get a good night's sleephomes for our first 100 deliveries and did video interviews for feedback." He recounts thatthose experiences told them how to improve their product in terms of longevity, aesthetics,packaging, thickness (soft/medium/hard), and different types for different health conditionsLaunched in 2016, Bengaluru-based Wakefit is promoting a healthy sleep culture with itsmattresses, pillows, and protectors. The firm, which has seen 3x rise in annual revenue sinceinception, will launch new categories this year and continue to focus on online sales.and senior citizens.Today, Wakefit mattresses are among the best sellers in the category on Amazon. Thecompany claims that it sells more mattresses than Urban Ladder and Pepperfry puttogether.Tough days should end in a comfortable bed. That's what Wakefit, a sleep solutions startup.aims to provide. Researched and developed for ergonomically beneficial factors, Wakefitwas launched in 2016 and offers mattresses along with other sleep-related products such aspillows and comforters.Ankit says their factory area has, over the years, gone from 3,000 sqft, to 5,000, 30,000, andnow 70,000 sqft. The startup currently has four warehouses, one each in Pune, Mumbai,Bengaluru, and Hyderabad, and plans to set up six more by the end of 2019.Team WakefitNot losing any sleep over cash burnWakefit, which claims to have been profitable since the first month and has seen 3x growthin annual revenue. In its first financial year, Wakefit generated Rs 6.7 crore; the figure wentWakefit imports most of its raw material from Europe and the Middle East to ensure world-class quality in terms of consistency and chemicals used. Manufacturing is done in Bengaluru,and quality checks take place in Europe. They are certified under Certi-PUR process (forfoam). The chemicals used are certified by Greenguard, an environmental institute that aimsto reduce human exposure to pollutants. Wakefit has invested profits into Germanmanufacturing equipment, which provide high efficiency and low cost. But Ankit asserts thatWakefit is not losing sleep over cash burn.up to Rs 27.6 crore in the next financial year.In FY19, Wakefit claims to have earned Rs 80 crore, and is now gearing up to replicatethe 3x annual growth rate for FY2020 with Rs 240-crore revenue.Founded by Ankit Garg and Chaitanya Ramalingegowda, Bengaluru-based Wakefit importsraw material from Europe and the Middle East, and manufactures and sells memory foammattresses. It claims to have delivered about 4.5 lakh units to over 30,000 pincodes acrossthe country with the fastest growth drivers being Bengaluru, Mumbai, and Hyderabad.Presently, Wakefit's monthly revenue is Rs 8-9 crore."To reduce manual labour and increase efficiency, we are using vertical cutting andcompression machines. Our customer acquisition cost is Rs 800-900, and our averageticket size is Rs 11,000, so there is no cash burn," says Ankit, who was recentlyfeatured in the Forbes list of 30 under 30.Earnest beginningHe adds that since they have no middlemen, Wakefit is able to provide prices that are 50percent lesser than their competitors - between Rs 5,000 and Rs 26,000.A chemical engineer from IIT-Roorkee, Ankit, 30, began his research for starting up whileworking at Bengaluru-based startup Tapzo. Before launching Wakefit officially, in 2015.Ankit bought a few hundred mattresses and sold them on Amazon to understand the uniteconomics. He made a profit of Rs 60 lakh in this trial period. But Ankit wanted to makehetter mattresses and decided to launch Wakefit formally in March 2016. He quit his joWakefit ships 250-300 units a day, adding up to 7,500-9,000 mattresses in a month. Itdelivers across India, including to small towns and difficult terrains such as Ladakh, andJammu & Kashmir. It has tied up with BlueDart, and FedEx, and local companies like City Xferfor transport and delivery. While marketing has been mostly digital, the team claims thatword of mouth has helped immensely.job atTapzo, along with his colleague Chaitanya Ramalingegowda (now 37), and started up withRs 18 lakh from the duo's savings. With ecommerce gaining popularity and healthconsciousness rising, they were looking at a market open for innovation.Page 1 of 4Page 2 of 4

Question

Questions1. Which market segments did WakeFit target?2. Which marketing strategies/tools did WakeFit use to reach their customers?3. List down the types of product ranges which WakeFit offered to their customers.4. What were the external problems which people faced in terms of comfort which WakeFit solved for their customers? And how did they solve it?5. What were the internal issues which WakeFit faced? How did they solve it?6. In your opinion, how can WakeFit grow further in the future? Provide an in-depth strategy which is innovative. &#34;Younger consumers, students, and young professionals at early stages, are usually moreprice- and time-sensitive. They are also in a relatively 'mobile' phase of their life, so theirview of the lifetime of the product is far shorter than an older consumer furnishing a homeor renewing furniture,&#34; Devangshu says.Customer experience comes firstWakefit's research has given the team deep insights into their customer base.For instance, their survey found that in India, 48 percent people complained of backproblems, and 80 percent people reported feeling sleepy at work one-three days aweek.From then to nowIn the initial days, team building was one of Wakefit's biggest challenges. Ankit says, &#34;Takingcare of everything ourselves was hard, as was finding the right people at the right time. Wefound the team through referrals and LinkedIn.&#34; He recollects the initial days of starting upwhere he only had his cook to help him out with logistics and delivery.To solve the increasing number of sleep-related problems, Wakefit included these criteria(and more) while designing their products. Wakefit claims that its mattresses are madeof proprietary &#34;open-cell structure&#34; for cool summers, and that its high-densityfoam gives complementary support. Body contour is another factor they have focused on.Wakefit claims that its mattresses' memory foam provides pressure relief. Also, sinceimmigrant millennials in metro cities may prefer renting, Wakefit has tied up with onlinefurniture and home appliances rental platform Rentomojo (to provide Wakefit's mattressesalong with their beds). In the B2B space, Wakefit is also in talks with more players.Today, the team comprises 120 people whom the company calls &#34;sleep experts&#34; rather thancustomer care executives. It plans to increase its employee base by 20 percent in 2020.Wakefit's current offerings include two mattresses (memory foam and dual comfort), apillow, a bed frame, and a mattress protector. It plans to soon introduce new categories likecurtains, night suits, bedsheets, neck pillows, pregnancy pillows, nursing pillows,comforters, dog beds, etc. The new product line is expected to contribute about 10 percentof the revenue in the long term.Wakefit products are available on multiple online marketplaces besides its own website. Butdoesn't selling on online marketplaces hurt its brand value? Won't Wakefit be just one of themany brands sold online unless it is exclusively available on their own website? Ankit doesn'tthink so. He believes that customer experience is what matters in building brand value. &#34;Bybuilding on our customer experience, we will thrive. Thanks to the new FDI policies,discounting will not be a game changer anymore.&#34;A sleeper hitAlthough mergers and acquisitions are common in ecommerce, Wakefit wants to continueas an independent entity and not be acquired. The company recently raised Rs 65 crore fromSequoia Capital as their Series A funding: Ankit claims most of it is still unused.No offline game for nowThe trend among many ecommerce platforms in the lifestyle category is to provideexperience centres, and promote an omnichannel business model. Home furnishing playerslike Pepperfry, and Urban Ladder, as well as Wakefit's direct competitor Sunday Mattress.have all ensured that their customers get a &#34;touch and feel&#34; of the high-value purchase.India's mattress market is estimated to be worth Rs 10,000 crore. Startups likeCuddl, SleepyCat, Wink&Nod, and Sunday Mattress are all taking sleep seriously, usingadvanced tech and raw materials to build their products. Horizontal marketplaces likeAmazon, Flipkart, Snapdeal, and ShopClues also offer branded and unbranded mattresses. Ifyou include other sleep-related products, the market grows larger, making space for multipleplayers.However, Wakefit does not believe in this strategy. Ankit explains: &#34;Most people, especiallywomen, are not comfortable lying on a bed in front of people. Also, you cannot really knowif you are comfortable in a bed till you use it overnight for a while. That's why we give 100day-return period with 100 percent refund.&#34;Devangshu Dutta, Chief Executive at Third Eyesight retail consultancy, believes thatwhile mattresses are high-value, high-involvement products, they are bought onlineby young consumers who are already most comfortable purchasing online. He addsthat they may be less finicky about the product quality and lifetime value.&#34;The business is then about creating a brand with a high-quality product and high-serviceexperience. With that approach, mattresses and allied products (such as pllows, cushions,support pads) could be sold to the consumer under the same brand,&#34; he says. It looks like theurban consumer who has disposable income to spend on health and personal care will neverbe short of options.Page 3 of 4Page 4 of 4 Ankit reminisces about the initial days. &#34;Internet adopters were our first users. We visitedHow did WAKEFIT earn Rs 114 Cr revenue in 3 years? Byhelping customers get a good night's sleephomes for our first 100 deliveries and did video interviews for feedback.&#34; He recounts thatthose experiences told them how to improve their product in terms of longevity, aesthetics,packaging, thickness (soft/medium/hard), and different types for different health conditionsLaunched in 2016, Bengaluru-based Wakefit is promoting a healthy sleep culture with itsmattresses, pillows, and protectors. The firm, which has seen 3x rise in annual revenue sinceinception, will launch new categories this year and continue to focus on online sales.and senior citizens.Today, Wakefit mattresses are among the best sellers in the category on Amazon. Thecompany claims that it sells more mattresses than Urban Ladder and Pepperfry puttogether.Tough days should end in a comfortable bed. That's what Wakefit, a sleep solutions startup.aims to provide. Researched and developed for ergonomically beneficial factors, Wakefitwas launched in 2016 and offers mattresses along with other sleep-related products such aspillows and comforters.Ankit says their factory area has, over the years, gone from 3,000 sqft, to 5,000, 30,000, andnow 70,000 sqft. The startup currently has four warehouses, one each in Pune, Mumbai,Bengaluru, and Hyderabad, and plans to set up six more by the end of 2019.Team WakefitNot losing any sleep over cash burnWakefit, which claims to have been profitable since the first month and has seen 3x growthin annual revenue. In its first financial year, Wakefit generated Rs 6.7 crore; the figure wentWakefit imports most of its raw material from Europe and the Middle East to ensure world-class quality in terms of consistency and chemicals used. Manufacturing is done in Bengaluru,and quality checks take place in Europe. They are certified under Certi-PUR process (forfoam). The chemicals used are certified by Greenguard, an environmental institute that aimsto reduce human exposure to pollutants. Wakefit has invested profits into Germanmanufacturing equipment, which provide high efficiency and low cost. But Ankit asserts thatWakefit is not losing sleep over cash burn.up to Rs 27.6 crore in the next financial year.In FY19, Wakefit claims to have earned Rs 80 crore, and is now gearing up to replicatethe 3x annual growth rate for FY2020 with Rs 240-crore revenue.Founded by Ankit Garg and Chaitanya Ramalingegowda, Bengaluru-based Wakefit importsraw material from Europe and the Middle East, and manufactures and sells memory foammattresses. It claims to have delivered about 4.5 lakh units to over 30,000 pincodes acrossthe country with the fastest growth drivers being Bengaluru, Mumbai, and Hyderabad.Presently, Wakefit's monthly revenue is Rs 8-9 crore.&#34;To reduce manual labour and increase efficiency, we are using vertical cutting andcompression machines. Our customer acquisition cost is Rs 800-900, and our averageticket size is Rs 11,000, so there is no cash burn,&#34; says Ankit, who was recentlyfeatured in the Forbes list of 30 under 30.Earnest beginningHe adds that since they have no middlemen, Wakefit is able to provide prices that are 50percent lesser than their competitors - between Rs 5,000 and Rs 26,000.A chemical engineer from IIT-Roorkee, Ankit, 30, began his research for starting up whileworking at Bengaluru-based startup Tapzo. Before launching Wakefit officially, in 2015.Ankit bought a few hundred mattresses and sold them on Amazon to understand the uniteconomics. He made a profit of Rs 60 lakh in this trial period. But Ankit wanted to makehetter mattresses and decided to launch Wakefit formally in March 2016. He quit his joWakefit ships 250-300 units a day, adding up to 7,500-9,000 mattresses in a month. Itdelivers across India, including to small towns and difficult terrains such as Ladakh, andJammu & Kashmir. It has tied up with BlueDart, and FedEx, and local companies like City Xferfor transport and delivery. While marketing has been mostly digital, the team claims thatword of mouth has helped immensely.job atTapzo, along with his colleague Chaitanya Ramalingegowda (now 37), and started up withRs 18 lakh from the duo's savings. With ecommerce gaining popularity and healthconsciousness rising, they were looking at a market open for innovation.Page 1 of 4Page 2 of 4

Accepted Answer

Disclaimer: Since you have posted a question with multiple sub-parts, we will solve first three…