URBAN LADDER - CASE STUDY

Niraj Kumar
7774003820
Niraj.kumar@iiml.org

1a) Detail out the metrics that define this range of furniture.
Range of furniture
under kids category
can be divided in 4
different sub
categories

Kids room
Browse tree

Bed

Crib bedding
Cradle

Storage &
Wardrobes

Accents
.

Dinning table &

chair set
Study table &
chair set

Wardrobes
Chest of drawers
Storage cabinets

Toddler
bedding

Writing & Logo

table

Book cases

Twin bed

Stool & Bench

Toy boxes & benches

Decor

Home linen /
Mattress
Carpets & Rugs
Wall dcor
Kids playing
Bed & Bath

Full / Double

Art & Craft table

Bins, Bags & Lockers

Cubbies

Queen / King
size

Toddler tables &

chair

Nursery storage

Lightening
Art & Craft

Contd

Detailed attributes of refinement.

Following are the metrics that can further classify the sub categories under kids furniture.
Age / Size wise Requirement of product will be different for 0 2 year baby from 3 6 year kid so I have categorized age in 3 different
age bands.
Materials Raw material used in making the product could be one of the metric.
Themes or Aesthetic kids prefer to keep products close to their heart if it matches with their preferences. E.g Disney theme based
product, animal theme, bike or car theme based, colour, etc.
Performance wise Kids are generally careless about the usage of the product so few qualities could increase the life & performance of
products. E.g. high strength materials, waterproof layer, etc.
Feature wise many cases parents want product as per specific requirements, e.g. study chair tables, bed for 2 kids, chair for baby to aid
feeding.
Price there can be a metric to classify kids product in 3 different price band. E.g. entry level product could be value for money section,
medium price range products & high range premium products.

Following are the refinement that can be used for kids furniture category.
Age
0 2 yrs
3 6 yrs
7 12 yrs

materials
Engineered
wood
Solid wood
Metal
Plastic

Colour

Themes

Disney based
Barbie doll
Bike / Car theme
Animal theme

Red
White
Black
Espresso
Wooden colour
Brown

Price

500 1000
1001 10000
10001- 20000
20001 - 50000

1b) Calculate the market potential for this range?

Life cycle usage

Assumptions

Number of children under 0 to 12 years is approx. 20% of

total population ( Total population = 120 Crore)
Considering 30% of population are Urban & 70% Rural.
75% urban could afford to have furniture for kids (Upper
class 5%, middle class 70%)
15% of rural population could afford to have furniture for
kids (landlord class or business class rom rural areas)
Calculation based on the above
assumptions
Urban population who can afford furniture for kid =
120*0.2*0.3*0.75 = 5.4 Crore kids
Rural population who can afford furniture for kid =
120*0.2*0.7*0.15 = 2.52 Crore kids
Total target kid population = 7.92 Crore = 8 Crore approx.

2 kids per home, parents will buy furniture for one kid and same
can be used for next kid.
As kid grow requirement changes, therefor parent need to buy a
bed for 0 2 yrs baby, then again when kid becomes 3 6 yrs kid
and when he becomes 7 12 yrs.
There are 3 opportunities per kid to buy bed as he grows same
goes with study tables.
Taking into account purchase life cycle
Assuming 2 kid per home, parent will use same furniture for both
kids, total potential kids = 8/2 = 4 Crore.
Life cycle of these product will be 12 years, so per year
opportunities = 4/12 Crore = 33 Lakhs kids will buy
Product price to calculate market potential taken as average price
of that segment from websites
Total market potential of kids furniture = $2436 Million

Price

Bed

Accents

Storage &
Wardrobes

Decor

Market
potential

Bed

Accents

Storage &
Wardrobes

Decor

Avg in Rs.

25000

10000

6000

7000

In Million $

1270

507

304

355

2) Identify the gaps in Urban Ladder's current range and suggest new
additions / revamps as the case may be
To identify gaps, I have benchmarked Urban Ladder against competitors across the globe.

High stock out

Size/ feature wise

product

Filters

Single page to
list all items
under Kids
category

Urban Ladder

Yes

No

No

No

No

No

Amazon

No

Yes

Yes

Yes

Yes

Yes

Snapdeal

No

No

Yes

Yes

No

Yes

Furniture.com

No

No

Yes

No

No

No

Furnituremart.com

No

No

Yes

Yes

Yes

Yes

Wayfair

No

Yes

Yes

Yes

Yes

Yes

Peperfry

No

No

Yes

Yes

Yes

Yes

Fabfurnish

No

No

Yes

Yes

No

No

Benchmark
results

High Product
variety

Refinement
under Sub
categories

contd

Insights from competitive benchmarking

No specific nod in the browse tree for Kid
As presented in 3rd slide, kids room can be classified into 4 subcategories then it can be further classified as required
Absence of filter is one of the most important gap

Urban Ladder should have filters to ease product search. In Amazon we can put filter in Bed size, features, Bed design, Price,
Finish, Materials, Theme, Offer, customers rating, dimensions & personalization. This provide ease in searching of required
product.
Absence of product sub category
In Urban Ladder there is no wardrobes option for kids, we need to add more product variety for kids. We can add many more
range of product, e.g. book cases & selves, ottomans, step stools, vanities, pictures frames, wall dcor etc.
Less number of products
There are only 8 number of beds are available to choose for kids, where as we have thousands of options for beds are listed in
competitors website.
Stock out
Stock out is same as sales opportunities lost, we need to increase product availability in listing page
Customer feedback
There is a section for customer stories but if I want to know feedback about specific product, its satisfaction rating from previous
buyers then its unavailable.

3) Identify the top 3 opportunities (in terms of market potential) in Kid friendly furniture and develop
the product range for these 3 opportunities in terms of products, price points and any other
information necessary to address this opportunity

Top 3 opportunities in terms of market

potentials (from the analysis in 4th slide)

Bed size

Bed

Twin
Full
Double
Queen / King
size

Age group

Accents

Decor

2 Years
3 6 years
7 12
years

Materials
Wood
Metal
Fabric
Plastic

Bed design
Panel
Platform
Convertible
toddler
Slat
Canopy

Baby bed

Themes

Crib bedding
Cradle
bedding
Toddler
bedding

Car / Trucks
TV
characters
Sports
Forest theme

Type

Table design

Chair design

Kids tables
& chair sets
Study
tables
Kids chair
Kids tables

Writing
table
Picnic table
Art & Craft
table
Logo table
Side table

Standard
Bench
Stool
Novelty

Kids Rugs

Baby & Kids Decor

Size
Colour
Educational
Braided
Theme based

Wall art & Stickers

Curtains
Memory board
Canopies
Other designer
stuff
Lighting

Playing stuff
Playing stuff
storage
Playhouses
Backyard play
Play tents
Games tables
Doll house

Themes
Car / Trucks
TV
characters
Sports
Forest
theme

Colour
Black
Brown
White
Birch
Espresso

Bed & bath

Blanket & Throws
Comforts
Towels & wash
cloths
Decorative pillows

Colour
Black
Brown
White
Birch
Espresso

Materials
Wood
Metal
Fabric
Plastic

Art & Craft

Kids easels
Art kits
Sculpting & clay
Stickers
Canvas panels

contd

Price points
Benchmarking looking at product assortment on
competitors website for each price band.

Top 3 opportunities in terms of market

potentials (from the analysis in 4th slide)

Assumption highest no. of product assortment in specific price

band means most voluminous or high selling zone that can be
targeted at first.

Competitive Benchmarking

Bed

Accents
Decor

Rs. 10,000 20,000 for baby & toddler

Rs. 25,000 35,000 for kid
Rs. 7,000 14,000 for Wardrobes & Chest drawers
Rs. 15,000 20,000 for study chair & tables
Rs. 500 2,000

4) Also please add one slide summarizing your findings and recommendations

My findings
We have kids segment under different browse node, e.g. Living,
Dining etc. But there is no dedicated node for kids furniture, where
customer can see all offering related to kid.
Absence of filters, there is no refinement to assist customers in
finding right product without hassles.
Product assortment are not enough to cater the requirement of all
age band.
Almost one third of product listed are sold out.
Kids like to follow certain theme, e.g. Disney theme, musical theme
etc. There are hardly any theme based product.
Reviews / customers rating for each product are missing

My recommendations
Recommendation on Kids category front, refinement etc. are given
in slide from 2 to 8, additional recommendation on products/
marketing/ logistics are mentioned below.
Generally purchase of stuff related to kids are impulse, therefore
reduce the lead time from buy to delivery at door.
Product display vehicle - generally in high value purchase
customers want to see & feel the product before placing order, we
can have vehicle that can go to customer place & display sample
products to customer
BTL activities in housing societies / School for visibility among
parents. (We can start kids engagement events at parks or at
playing school, we can organise competition as quiz at school).
Tie up with interior consultants for recommendation. (We can tie up
with home interior professionals, who can recommend UL or take
supply from UL for their interior decoration work).
We can do product bundling, when some one chooses one product
to buy, recommendation should come for bundling.