Casper Sleep Inc B Growth Strategy Case Solution

1. Background

The case is about how Casper Sleep Inc. continuously upgraded its strategy to increase its market share. It did that initially through expanding its product line, investing in R&D, by modestly advertising and by partnering up with retailers. Its first offline presence took shape in partnership with West Elm furniture stores in July 2016 and carried the same price and terms like that on their website. This partnership, however, ended in September 2017. With the intention of increasing awareness about their company, the company then came into partnership with Target both online and offline at selected stores. It also introduced two new items exclusively on Target for students.

With continuous research, Casper Sleep launched “The Wave” in August’17 at double the price. Two months later it launched the lower stretch: “The Essential”, which was targeted at students both online and offline. In early 2018, the prices of a Queen mattress for all the offerings starting from "The Essential" to "The Wave" were $600, $995 and $1995. Casper Sleep was selling 95% of their products offline which proved that customers preferred to see and feel before purchase. Therefore, it launched their first pop-up store in October 2017 and first permanent store in February 2018 where it offered a mini bedroom experience.

While it developed, increased competition entered the industry. More companies, operating both offline and online, started offering products with the exact physical profile as Casper’s, but at lower prices. The question now being, has Casper Sleep Inc. done enough work to secure their position in the ever-competitive market? Casper Sleep needs to come up with a growth strategy to help it combat competition.

2. Alternative Solutions

The possible growth strategies for Casper Sleep are as follows:

1. Casper sleep can continue with its current media on television, while expand into new geographies that include Washington, D. C., Boston, Los Angeles, Chicago, Philadelphia and San Francisco. 

2. Carry out TV advertisements on national television where a tone is used similar to the company’s website design. This advertisement can use similar taglines, which include “real couple”, “happens in its real environment”, or show an emotional appeal for the brand. 

3. The brand can come up with an animated advertisement campaign on television, which uses the cartoon characters that the subway goers in New York loved. 

4. The brand can disregard television and come up with an advertisement campaign on digital and social media.