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FESIBILITY STUDY
Design Ecnomics
NOVEMBER 11, 2019
WALEED AHMED SHAKIR
00275362T
Fesibility Study 1
Executive Summary
Back pain is growing exponentially among people, and people are facing problems when
they sleep. Low quality of sleep can be due to a number of environmental factors,
including temperature, light, noise, and quality of the mattress. A sleeping mat is,
therefore, a good concept to promote the idea of optimizing sleep. This report provides a
feasibility plan for the product sleeping mat. It also discusses the benefits, financial plan,
and business and delivery model. It also highlights the social impact along with the
limitations of the product.
Fesibility Study 2
Table of Contents
The Business Opportunity: …………………………………………………………………………………. 3
The Market problem: …………………………………………………………………………………………. 3
The solution to the Problem: ………………………………………………………………………………. 3
The Product:…………………………………………………………………………………………………….. 4
A. Product Description:…………………………………………………………………………………… 4
B. Product Benefits:……………………………………………………………………………………….. 5
Target Market:………………………………………………………………………………………………….. 6
Business Strategies and Models for product delivery:…………………………………………….. 7
Services: …………………………………………………………………………………………………………. 7
Financial Plan:………………………………………………………………………………………………….. 8
Competitor Analysis: …………………………………………………………………………………………. 9
Management Requirement:………………………………………………………………………………… 9
Social Impact:…………………………………………………………………………………………………. 10
Limitations:…………………………………………………………………………………………………….. 12
Conclusion: ……………………………………………………………………………………………………. 12
References:……………………………………………………………………………………………………. 13
Fesibility Study 3
The Business Opportunity:
“If you are sleeping better, gift someone else the opportunity to sleep better.”
The Market problem:
Back pain is one of the major causes of disability that prevent people from performing
their day-to-day activities. Back pain is 2nd leading cause of disease burden overall in
Australia (AIHW, 2019). From 1990 to 2015, back pain-related disability has increased by
almost 54 percent across the world (ACA, 2019). In Australia, patients suffering from back
pain accounts for 4.1 percent of the total patients’ population. In 2017, around 4 million
Australians (16 percent) were suffering from back pain, and out of these, 38 percent
mentioned that back pain interferes in doing daily tasks (AIHW, 2019). Like increasing
back pain cases, the number of homeless people is also increasing in Australia. As per
the 2016 census data, approx 116,500 Australians are homeless, and this number has
increased by 13.7 percent during the last five years (ABS, 2016). Every night many people
sleep rough in Australia; they can easily be found sleeping on the sides of the roads and
on the parks’ benches. Is there a way to solve both back problems and sleep rough
problems together? Yes, it is possible with the sleeping mat.
The solution to the Problem:
A growing problem of back pain and homelessness provides the purpose of the company.
This feasibility plan explores the possibility of the success of a sleeping mat, which is
beneficial for the people who are suffering from back pain, and on every purchase of a
sleeping mat, the company will donate one sleeping bag to a homeless person. The idea
is to develop an innovative sleeping mat that will help people in recovering from their back
pain quickly. The design of the mat and advance technology will add in fast recovery. The
Fesibility Study 4
company will motivate its customers for the purchase by informing them about the
growing homeless Problem and how their purchase will positively contribute to reducing
the Problem. This study paper provides a proper business framework to deal with
problems of back pain and homelessness efficiently. This paper describes the business
opportunities, and framework to tap that opportunity while solving two major issues faced
by our society.
The Product:
A. Product Description:
A sleeping pad is made of a foam-like substance about half a centimeter thick (about a
quarter of an inch) in its simplest form. Generally, the pad’s measurements are about the
same size as a sleeping bag and a little wider. Usually, the fabrics used are packed with
air pockets, restricting heat through the pad as air is one of the easiest and
cheapest insulators (Lubos, Gunesoglu, & Gunesoglu, 2015). Closed-cell foam is used to
make mats that can be used without inflation. Closed-cell foam pads are lighter and
longer-lasting than their air-filled counterparts because they are made of fewer materials
(Camenzind, Shen, Rossi, & Kemp, 2018). The warmth of a sleeping pad is represented
by R-value. The R-value is a calculation of how well a two-dimensional layer, along with
an insulated sheet, a screen, or a full wall or ceiling, is capable of resisting heat flow (Hill,
2019). The R-value of the product is 5, which makes it suitable for all-weather and
geographical conditions. The product sleeping mat is a multipurpose mat that can be used
for indoor activities such as gym, exercising as well as outdoor activities such as camping,
stretching, etc. It is highly effective in relieving back pain. The mat changes shape as per
the sleeping posture of the user. This is the biggest strength of the product. The Correct
Fesibility Study 5
posture for sleeping involves minimum strain on the spine. Sleeping mat ensures the
same while sleeping.
B. Product Benefits:
In a specific and unique way, the sleeping mat functions. The product is placed under the
mattress, which also provides people with a better sleeping position. The sleeping mat is
designed as per the innovative technology and excellent material. The mat helps in
treating back pain and facilitates the recovery of the patient. This operates in two
respects-ground insulation and comfort with warmth (Lubos, Gunesoglu, & Gunesoglu,
2015). Sleeping pads perform two really significant roles in the outdoors: cushioning and
insulation to get a solid night’s sleep. Although having a comfortable surface to sleep on
may seem to be the most useful function of a pad, it is often more important to be able to
keep you warm throughout the night. It is lightweight, inexpensive, and long-lasting and
provides reliable insulation. The users don’t have to think about leaks or punctures. These
are the only pads that the user can wear without fear of harm on the outside of the
sleeping bag. Also, in training and exercising, the product can double as sit pads. The
pad is made of engineered camping-heavy duty nylon that does not leak moisture, and
have a waterproof surface. This sleeping pad is resistant to tears, signs of puncture, or
dampness. It does not make any squeaky sound, and it is good to lie in the sleeping bag,
ground, or hard surface. It also decreases the maximum body pressure at one point and
increases uniform pressure distribution over different sleeping postures compared to
polyurethane sleeping pads (Soppi, Lehtiö, Saarinen, 2015). Hence as compared to other
bad materials, it better in performance and quality and less on cost.
Fesibility Study 6
Target Market (Customer Profiles and benefits):
1. Hikers and Campers: Individuals, especially females, who sleep in rough and cold
conditions while camping, may want to choose a pad with a minimum R-value of 4. Many
female-specific pads place extra insulation in the region of the center and feet, where
women lose heat more quickly. Insulation is critical for a good night’s sleep even in
summer because humans lose heat from their bodies to the floor. Most air and selfinflating pads now have a plastic insulation layer inside to combat this. A couple of pads
provide solitude and prefer to sleep in very cold environments.
2. Physiotherapy: Individuals who are suffering from back pain and bad posture are in
immediate need of sleeping pad. In physiotherapy, the doctors try to induce good posture
by various exercises as well as sleeping positions. Sleeping pads can be very useful in
providing comfort and convenience, which is needed by such consumers.
3. Millennial: Users, particularly those aged between 18 and 35, are more likely to
complement their mattresses with alternatives such as sleeping pad to receive better
sleep and rest. As more life-changing events occurring to younger people such as
stressful work-life, there is a change in thinking and perception. These attitude changes
around the purchasing of sleeping pads, as well as the comfort of the generation with
digital platforms, led the product manufacturers to target this segment.
4. Health-conscious Consumers: Considering sleep as the third pillar of health, along
with nutrition and exercise, is giving an excellent opportunity to target such consumers.
The individuals in this consumer category are not price sensitive. Hence are more willing
to pay for the health aspects.
Fesibility Study 7
5. Sleep Sufferers: Sleep sufferers are characterized by their quest to get quality sleep
at night. More than half (58%) say they are experiencing several sleeping issues. Trouble
in getting an entire 8 hours of rest can come about because of being worried as a rule
(70%) and less healthy (74%), encountering muscle as well as joint ache (67%), and
having back as well as neck torment (70%).
Business Strategies and Models for product delivery:
1. Direct to Consumer Business Model: Retailing through direct-to-consumer (DTC)
model helps the product to bypass the intermediaries and sell their products through their
shop or showrooms. By eliminating parts of the value chain, these models create cost
efficiencies.
2. Ecommerce Business Model: The physicality and logistics of the product need to
make sense by shipment and distribution in order to sell products online. The delivery
cost will be estimated at approximately $50 per ten orders. The cost will be minimized by
establishing robust distribution channels. It will lead to partnerships with different retailers
and distributors.
Services:
The sleeping pad product will serve both commercial and social needs. The company
would launch an online education and awareness course regarding the issues related to
back pain and the role of sleeping pads in improving posture and sleep quality. It will be
available both on the website and mobile app. The e-commerce delivery model and
mobile app service will be integrated for optimum results. It will also provide free gym
membership for a year to every new purchaser. The product will be launched and
Fesibility Study 8
marketed through collaboration with chemists, pharmacists, doctors, and gym owners. As
the product is highly beneficial for people with back pain issues, these media will be
appropriate for marketing and distribution.
Financial Plan:
The financial plan is based on three assumptions for this product, and the plan is
described below (Table 1):
• The annual revenue growth rate of the Mattress Store will be 15 percent per year.
• To grow the company, the owner must receive $100,000 in debt funds.
• The loan has a ten-year term with a 10 percent interest rate.
| Task | Financial Cost | Financial Requirement | Time |
| Production cost (including labor, machinery, and raw material) | $500 | Cash/Debit/ Credit | 7 Weeks |
| Sales/Marketing cost | $ 200 | Debit/ Credit | 2 Weeks |
| Promotion cost (includes the cost of a complimentary sleeping bag) | $ 100 | Debit/ Credit | 5 Weeks |
| Administrative Expenses | $50 | Debit/ Credit | Weekly |
| Delivery cost | $50 | Debit/ Credit | Based on orders |
| Taxes | $300 | Cash/Debit | Commercial Tax, Interest on Loans, EBITDA |
(Table 1: Financial Cost and requirement)
Fesibility Study 9
The product will be made cost-effective by using the concept of Economies of scale. If
the number of users increases, then the per-unit cost of the product will decrease. Also,
forwarding and backward integration in the supply chain will make the product costeffective.
Competitor Analysis:
Decathlon S.A., Recreational Equipment, Inc., Johnson Outdoors Inc., Western
Mountaineering, V.F. Corporation, ENLIGHTENED EQUIPMENT, Oase Outdoors ApS,
Feathered Friends, Katabatic Gear LLC, Jarden Corp., Patagonia International, Inc.,
Exxel Outdoors, LLC, and NEMO Equipment, Inc. are major market players listed
throughout the Sleeping Pads and Bags market value chain. The sleeping mat is unique
and different from the competitors’ product in terms of the overall health impact. The highquality material and durability make the product stand out. Also, by establishing the social
cause of preventing back pain issues will give the product a competitive advantage.
Management Requirement:
The management of the entire organization will be done as per the organizational
structure presented below (Figure 1). Senior management will own 100% of the shares.
The business is not trying any third party investment as of now. Based on the number of
sales, the organization may hire a qualifies broker to sell on the organization’s behalf.
Fesibility Study 10
(Figure 1: Organizational Structure)
Social Impact:
Some portion of the revenue generated by a sleeping pad will be donated for a social
cause. A sleeping bag will be donated for free as a complimentary gift with every single
purchase of the product and it can be tracked with mobile appilication to ensure your
donated sleepingbag is where. Also, the web-based educational courses regarding back
pain issues will be provided free of cost for the community service.
Financial Impact:
The financial impact allows the organization to adopt economies of scale for production.
Also, a robust marketing strategy will improve overall revenue and sales. By adopting a
reasonable pricing strategy, a positive financial impact is attained. The sales expected
numbers (Figure 1), along with the annual profit and loss statement (Figure 2), are
showing that the product is financially viable.
| Operations Manager |
| Administrative |
| Manager |
CEO (Leadership
Team)
| Delivery and | |
| Customer S | ervice |
Production and Sales
| Accounting |
| Marketing |
Fesibility Study 11
(Figure 1: Expected Sales)
(Source: The Finance resource, 2019)
(Figure 2: Annual Profit and Loss Statement)
(Source: The Finance resource, 2019)
Fesibility Study 12
Limitations and Challenges:
The product offers less comfort as other available alternatives. They are fairly rigid and
solid, and they appear to be voluminous. The sleeping pad concept is naïve for many
individuals. Hence, creating awareness is mandatory to bring the desired revenues to the
business. Individuals who are less informed, middle-aged, and with lower incomes will
resist the purchase. There is a high likelihood of people hesitating to put money in all of
these products (Liu, Cheng & Zhao, 2018).
Conclusion:
Quality of sleep holds an important role in the overall well-being of human lives, allowing
good sleep to promote a natural body clock and thus minimize tiredness and enhance
physical recovery (Marshall, & Turner, 2016). Sleeping pads are highly beneficial for
people who are suffering from back pain disorder and sleep-deprived. But, there is a
primary issue involved with the release of the product due to the high cost of the general
people of the product may not be able to use it so they will not be aware of the value.
Fesibility Study 13
References:
ABS. (2016). Homelessness statistics. Retrieved from homelessnessaustralia.org:
https://www.homelessnessaustralia.org.au/about/homelessness-statistics
ACA. (2019). Back Pain Facts and Statistics. Retrieved from ACA Today:
https://www.acatoday.org/Patients/Health-Wellness-Information/Back-Pain-Facts-andstatistics
AIHW. (2019). Back problems. Retrieved from aihw.gov.au:
https://www.aihw.gov.au/reports/chronic-musculoskeletal-conditions/backproblems/contents/what-are-back-problems
Camenzind, M., Shen, X., Rossi, R., & Kemp, S. (2018). Thermal Resistance of Air-Filled
Mattresses: Measurement Repeatability and the Effect of Selected Test Parameters.
Journal of Testing and Evaluation, 48(5), pp. 15-20
Hill, T. (2019). Physics for the camper: heat transfer in sleeping mats and sleeping bags.
Physics Education, 54(4), 045010.
Liu, Y., Cheng, P., & Zhao, D. (2018). New product launch actions and firm performance:
the effects of breadth, complexity, and heterogeneity. Chinese Management Studies,
12(1), 79-105.
Lubos, H. E. S., Gunesoglu, C., & Gunesoglu, S. (2015). Analysis of heat transfer in
inflatable sleeping pads. Tekstil ve Konfeksiyon, 25(4), 300-303.
Fesibility Study 14
Marshall, G. J., & Turner, A. N. (2016). The importance of sleep for athletic
performance. Strength & Conditioning Journal, 38(1), 61-67.
Soppi E., Lehtiö J., Saarinen H. (2015). An overview of polyurethane foams in higher
specification foam mattresses. Ostomy Wound Manage, 61(2), 38–46
The Finance resource (2019). Retrieved from
http://www.thefinanceresource.com/free_business_plans/free_mattress_store_business
_plan.aspx