Competitive Analysis
Overview
Nugget occupies a very specific segment of the market in furniture (mothers with children ages 1-10), and focuses on producing and selling one product. Currently, the kids playroom furniture category is predicted to rise about 18% by 2020, according to Kids Today. Sales for 2015 in the youth furniture category were $5.96 billion dollars. Nugget occupies the category of kids playroom furniture, and has both direct and indirect competitors in this area, and in this category, it is has a low share of market and share of voice, compared to more dominant brands like Pottery Barn Kids and IKEA. Direct competitors are other options within the kids playroom furniture category, and indirect competitors are seating alternative that also may appeal to the same target market. Nugget’s direct competitors are Oi Furniture, Multiplo, kids sofas, Moonchaise Lounge, Pottery Barn Kids and traditional Bean Bag chairs, and its indirect competitors are futons, hammocks, the Balls Lounger and even inflatable chairs.
Direct Product Competitors
There are many products that serve as direct competitors to Nugget. Oi Furniture is marketed as “fun, easy, and eco.” The company’s focus is to develop furniture options that are both innovative and environmentally friendly for use in a variety of living spaces, including education, office, hospitality and health sectors. It appeals to a variety of age groups, with the slogan that it can be used by anyone ages “3 to 93”. It is more on the pricier range in comparison to Nugget. In addition to Oi, Multiplo also serves as a direct competitor. Multiplo is available as a concept design through designrulz.com, and is specifically designed to be easily compatible with smaller living spaces. It converts into a bed as well, and has many more parts in comparison to the Nugget. It targets young adults who may live in apartments, or other smaller areas that would require versatility. Additionally, kids sofas are also direct competitors for Nugget, with various brands on the market including the Disney kids sodas, Guidecraft chair sets, and Zippity kids sofas.
Direct Brand Competitors
Pottery Barn Kids was created by two moms who realized just how much work went into designing great kids' bedrooms. Since then, their mission has been to bring the utmost in quality, comfort, safety and style into every family's home. They offer an exclusive range of children's furnishings, textiles, toys and accessories at potterybarnkids.com and in more than 90 stores in the US and abroad. From the nursery to the playroom, their collections make it easy to design fun, functional spaces the entire family will love.
Pottery Barn Kids offers a wide range of furniture pieces, and are a major contender for Nugget Comfort in the kids playroom furniture category. It is one of Nugget's primary contenders, as it provides a range of products that could appeal to the same target market and its variety is one of its strengths.
Indirect Product Competitors
In terms of indirect competitors, there are a variety of different options for seating that would compete with Nugget. This includes other couches, futons, the balls lounger, hammocks, and even inflatable chairs. It is also important to menion IKEA as an indirect competitor for Nugget, because it provides its own kids playroom furniture and is currently dominating the market. In terms of indirect contenders that are products, however, the Balls Lounger is more expensive than Nugget, and the Moonchaise Lounge is less. The Balls Lounger is comprised of primarily an assortment of cushions in the shape of balls, which provides for a variety of ways for manipulation to suit a consumer’s needs. Futons, in comparison, are a seating option that appeals directly to young adults, and especially college students who need the versatility of a seating option that can also be used as a bed. Hammocks are associated with summer, relaxation and outdoor seating, and require precise set-up and either poles or trees to serve as anchors. Lastly, Inflatable chairs are collapsible and particularly useful seating options when travelling.
Indirect Brand Competitors
IKEA is also an indirect competitor, though it is not a product but rather a company that sells products that would be contenders for the Nugget. Though it is more of a traditional furniture store, it still is a heavy contender for Nugget because of its widespread notoriety in the furniture category. IKEA is one of the most well recognized furniture and home stores in the world. Founded by Ingvar Kamprad, the company specializes in ready to assemble furniture. It sells all aspects of home life, with furniture, appliances, and accessories. They currently own 381 stores in 47 countries. Though they are considered the world’s largest furniture retailer, they are also known for manufacturing. Their mission is “to create a better everyday life for the many people” by providing great design, quality, and affordability. In the future, IKEA aims to strengthen their entrepreneurial spirit and move their products in a more environmentally friendly direction. In terms of their target audience, IKEA targets the widest range of consumers possible with their philosophy of democratic design. They attempt to make products that will be the most useful to the widest range of people, and this helps to explain their heavy market penetration in varying demographics.