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MARKET EVALUATION SURVEYING DATA ANALYSIS BENCHMARKING LITERATURE REVIEW

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.

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HANOVER RESEARCH MAY 2012

© 2012 Hanover Research – Sales & Marketing Practice

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.

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Analysis: Survey Charts

Figure 1: Role in the bedding industry (n=139) Survey Question: What is your role in the bedding industry?

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?

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.

Retail manager

41%

Retail sales associate

41%

Retail owner 14%

Bedding Manufacturer

3%

Component Supplier

1%

48%

38%

12%

1% 1% 0%

10%

20%

30%

40%

50%

60%

I love it I like it It's okay I dislike it I hate it

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?

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?

Nearly half the respondents strongly agree that they have enough information to

speak intelligently about the components of a mattress.

84%

13%

3% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Extremelyimportant

Important Somewhatimportant

Not at allimportant

48%

35%

16%

0% 0% 1%

0%

10%

20%

30%

40%

50%

60%

StronglyAgree

Agree SomewhatAgree

SomewhatDisagree

Disagree StronglyDisagree

5



Figure 5: Encourage friends to enter industry (n=138) Survey Question: Would you encourage your friends to get in the industry?

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?

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.

13%

45%

29%

9%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Yes, I definitelywould

Yes, I probablywould

Maybe No, I mostlikely would

not

No, I definitelywould not

40%

33%

18%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

I see a largeopportunity

I see a mediumopportunity

I see a smallopportunity

I don't see anyopportunity at all

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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?

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?

The largest sources of information are the bedding representatives and the company

employing the respondents.

3% 3%

7% 9%

14% 15%

19%

15%

12%

4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

40%

26%

16%

12%

5% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Bedding reps The company Iwork for

Manuals andliterature

Web-basededucation

(onlinecommunities,websites, etc.)

Colleagues I don't reallyget help

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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?

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?

Very few representatives think these materials are essential, though, most representatives agree that they help to some extent.

73% 72% 70%

47%

24%

27% 28% 30%

53%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

New Computer(n=139)

New TV(n=137)

New Car(n=138)

New Sofa(n=136)

New Set ofTires (n=139)

Yes No, will buy new mattress

14%

27%

48%

11%

0%

10%

20%

30%

40%

50%

60%

They are essential They help a goodamount

They help to someextent

They do not helpat all

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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.)?

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?

Two thirds (67%) of the respondents think that the ideal warranty for a premium mattress should be more than 10 years.

34%

39%

18%

5%

1% 3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

StronglyAgree

Agree SomewhatAgree

SomewhatDisagree


5%

28%

35% 32%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-5 years 6-10 years 11-15 years More than 15years

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Figure 13: Down time on a typical day (n=137) Survey Question: How much "down time" do you have during a typical work day?

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?

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.

more than 3 hours, 33%

1-3 hours, 39%

under an hour, 28%

more than 3 hours, 3%

1-3 hours, 20%

under an hour, 78%

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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?

50% 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.)?

The largest plurality of respondents (32%) never spends any time conducting “drive the business” efforts.

21%

28%

18% 17% 16%

0%

5%

10%

15%

20%

25%

30%

For every sale For most of mysales

For less thanhalf of my sales

Rarely/Only forimportant sales

Never

1%

8%

23%

8% 9%

7%

12%

32%

0%

5%

10%

15%

20%

25%

30%

35%

Every day At leastonce aweek

At leastonce amonth

At leastonceeverythree

months

At leastonce

every sixmonths

At leastonce a

year

Less thanonce a

year

Never

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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.

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. 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.

70% 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.

35% 37%

17%

2% 3% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

StronglyAgree

Agree SomewhatAgree

SomewhatDisagree


36% 34%

20%

4% 4% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

StronglyAgree

Agree SomewhatAgree

SomewhatDisagree


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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.

75% 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 …

A majority of representatives would not leave their current job.

18%

33%

24%

4% 6%

4% 3%

8%

0%

5%

10%

15%

20%

25%

30%

35%

Every day At leastonce aweek

At leastonce amonth

At leastonceeverythree

months

At leastonce

every sixmonths

At leastonce a

year

Less thanonce a

year

Never

14%

3% 1%

55%

26%

0%

10%

20%

30%

40%

50%

60%

$1,000 $500 $250 I would notleave my

current job

Other:

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Figure 21: Avenues for improvement (n=138). Survey Question: My Company needs to do the following to improve (select top 3).

Better training, increased advertising and better product merchandising all received

over 40% 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).

Comfort was chosen by 81% of the respondents when asked the top 3 most

important factors for their customers. Price was second with 75%. No other factor was mentioned at levels greater than 50%.

48%

41% 40%

30% 28%

17%

6%

14%

0%

10%

20%

30%

40%

50%

60%

Be

tter

tra

inin

g

Incr

eas

e a

dve

rtis

ing

Pro

du

ct m

erc

han

dis

ing

Imp

rove

th

e lo

ok

and

fee

lo

f th

e st

ore

Imp

rove

cu

ltu

re

Re

du

ce e

mp

loye

e h

ou

rs

Incr

eas

e s

tore

ho

urs

Oth

er:

81% 75%

44%

24% 17%

12% 9% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

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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?

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?

Tempur-Pedic, Simmons and Serta are the three most popular brands.

4%

30%

19%

14%

33%

0%

5%

10%

15%

20%

25%

30%

35%

For every sale For most of mysales

For less thanhalf of my sales

Rarely/Only forimportant sales

Never

28% 23%

18%

6% 2% 1% 1% 1% 1%

18%

0%

5%

10%

15%

20%

25%

30%

Tem

pu

r-P

edic

Sim

mo

ns

Sert

a

Seal

y

Co

mfo

rtSo

luti

on

s

Co

rsic

ana

The

rap

edic

Engl

and

er

Kin

gsd

ow

n

Oth

er

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Figure 25: Main reason for favorite brand (n=139) Survey Question: What is the main reason that this is your favorite bed or brand?

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?

42%

24%

10% 9% 7%

4% 3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

This bed orbrand's

product issimplybetter

I have thisbed orbrand

Thisbeddingbrand

services ourbusiness

better thanthe others

Customersoften ask

for this bedor brand

I knowmore aboutthis bed orbrand thanany other

I make themost

moneyselling this

bed orbrand

I like thebedding

rep

Female, 28%

Male, 71%

Prefer Not to Respond, 1%

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Figure 27: Age (n=118). Survey Question: Age

Figure 28: Respondents’ Race (n=136). Survey Question: What is your race/ethnicity?

15%

27%

24%

21%

13%

0%

5%

10%

15%

20%

25%

30%

20-30 31-40 41-50 51-60 61+

87%

4% 4%

1% 1% 1% 1% Caucasian

Hispanic

Prefer Not to Respond

Black/African-American

Other

Asian/Pacific Islander

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Figure 29: Respondents’ Annual Household Income (n=137). Survey Question: What is your annual household income?

Figure 30: Respondents’ education (n=137). Survey Question: What is the highest level of education you have completed?

2%

9%

18%

22%

17%

14%

3%

5%

10%

0%

5%

10%

15%

20%

25%

Less than$25,000

$25,000to

$34,999

$35,000to

$49,999

$50,000to

$74,999

$75,000to

$99,999

$100,000to

$124,999

$125,000to

$149,999

$150,000or More

PreferNot to

Respond

1%

12%

30%

10%

38%

5% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less

th

an h

igh

sch

oo

lgr

adu

ate

Hig

h s

cho

ol g

rad

uat

e(i

ncl

ud

es

equ

ival

ency

)

Som

e co

llege

, no

deg

ree

Ass

oci

ate'

s d

egre

e

Bac

he

lor'

s d

egr

ee

Gra

du

ate

or

hig

her

pro

fess

ion

al d

egr

ee

Pre

fer

No

t to

Res

po

nd

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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?

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 (15%) 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”

Autism Speaks, 78%

Seena Magowitz

Foundation, 22%

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